Maran backs renewal of STPI benefits

Priya Padmanabhan

BANGALORE: Dayanidhi Maran, union minister of communications and IT, today

extended his support to the IT and BPO segment's demand to extend renewal of tax

holiday given to STPI units.

The license for tax holiday is slated to end in 2009 and the IT sector

requested the government to continue the fiscal incentives within the scheme

beyond the date.

However, Maran said that while he was in favor of extension, he needed the

help of the industry so that they could work together to convince other

ministries on the decision. "It is good that you have raised the flag now

and not after 2009."

Nasscom minister Kiran Karnik told the minister that the Special Economic

Zone (SEZ) concept did not fit into the context of the IT industry.

"This policy is not viable for start-ups and SMEs. We need to extend the

benefits of the STPI and keep this moving," he said.

On Nasscom's request to the Central Government to effect changes in

education, he said that the states would need to take it up individually.

"Since education is in the concurrent list, it needs to be dealt by the

states. I request Nasscom and the industry to work along with the states to work

on this."

He also asked Nasscom to prepare a report on the existing state of education

and the kind of skills required by the industry.

Pramod Bhasin, who heads India's largest BPO, Genpact, requested Maran to

also look into the issue of high bandwidth costs and asked for globally

competitive rates. To this, Maran hinted that some government policies needed to

change and that he needed the industry's help to work together

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