Orissa IT SMEs up ante against ICT policy

Seek inclusion of bio-informatics, 3-5% more budget allocation and creation of an IT audit system.

Small and medium enterprises (SMEs) in Orissa's information technology (IT) sector have upped their ante against the state government's draft Information, Communication, Technology (ICT) Policy, 2007. According to the SMEs, the ICT policy lacks strength.

In order to present their views on the policy, the SMEs drafted a document, which is currently being perused by the state government's IT department and its promotional bodies. The IT SMEs comprise 98 per cent of the total 139 IT companies registered at the Software Technology Parks of India (STPI), Bhubaneswar.

The state IT department last week rolled out the draft ICT Policy after a gap of almost three years to meet the requirement of different IT companies, national as well as international, of late, making a beeline to Orissa. The state government has already identified 1,074 acres of land, in and around Bhubaneswar, for IT companies.

The issues raised by the IT SMEs on the draft ICT policy include a range of subjects starting from the necessity of bio-informatics to the preparation of a roadmap for implementing the policy.

For the first time, the IT SMEs have sought exemption of the Bhubaneswar Development Authority (BDA) approval for buildings approved by the Industrial and Infrastructure Development Corporation of Orissa ( IIDCO) under the provisions of procedural relief and concession rules.

The draft policy, claims the state government, includes vision, objectives, agencies, infrastructure, technology support, human resource development, entrepreneurship development, e-governance roadmap and investment promotion in the fiscal and non-fiscal spheres encompassing direct and indirect aspects, incentives and concessions, and community building.

Besides demanding the inclusion of bio-informatics (education services), the SMEs have also urged the state to put in place an IT audit system. They also want the state to clarify the terms on the basis of which existing SMEs can avail of incentives vis-a-vis new SMEs.

"The ICT policy should also mention incentives for existing units with a good track record, define a new SME unit in terms of capital investment, wage outflow, investment on manpower and turnover," an IT SME owner said.

The IT SMEs have also demanded the government to allocate 3-5 per cent of the budget for IT projects, provide marketing subsidy instead of financial subsidy by way of organising international roadshows in upcoming markets of Africa and the Middle-East.

"This should be subsidised by the government to help participating SMEs conduct group travels to the US and Africa. The policy needs to be made more attractive for venture capitalists. The IT SMEs are planning a venture capital meet in December in Bhubaneswar," another IT SME owner said.

An important demand made by the SMEs is the need for the development of kiosks, and subsidy for using licensed software and for training people for BPO jobs.

The Orissa government has been urged to provide market development assistance ( MDA) or financial support for participating in international trade fairs. For the purpose, the government has been requested to float a venture fund.

The IT SME document has called for the revival of rent subsidy and a provision of land at concessional rates. It claims that provision of infrastructure aspects like road, street lights, hotels, shopping malls, mass transport and security, have been left out in the draft ICT policy, 2007.