IT minister for extension of STPI scheme

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Union IT and telecommunications minister Dayanidhi Maran favours extending the Software Technology Parks of India (STPI) scheme for another 10 years, but consensus eludes the matter at the Central government level.

"As far as extending the benefits of the STPI scheme is concerned, I am with you. I want the scheme to continue beyond 2009, may be for another 10 years to assist the growth of the IT industry. But I do not know whether other Central departments associated with the IT industry are in favour of the extension," Maran told the Nasscom ITES-BPO Strategy Summit 2006 here on Wednesday.

The minister pointed out that it was for the Nasscom to convince other Centre to extend the scheme. "I cannot take an independent decision on this matter. Let us work it out together. We need to build a consensus to extend the scheme. For, only the IT sector has the potential to create vast employment in the nation," he added.

The IT industry currently enjoys tax benefits within the STPI, which ends in 2009.

However, the special economic zone (SEZ) proposed for the IT industry does not address the issue and has become a cause for concern in the IT fraternity.

Earlier, Genpact president and CEO Pramod Bhasin expressed concern over the scheme ending in 2009. "What will we do after 2009? We may be forced to rework our business strategy. I hope the government renews the STPI licence for another 10 years to support the sector's growth," he added.