Infosys comes down heavily on SEZ policy

Infosys today came down heavily on the 'special economic zone' (SEZ) concept of the Government of India. According to the company, it is against small companies and this can stifle innovation.

Speaking on the issue during Infosys' Q1 results, Mohandas Pai, director-HR of Infosys said: "It is not at all conducive and the process for approval is tedious. It takes around 9-12 months for a company to get the necessary clearances. The SEZ policies are against small companies and the government should work towards helping them. That is where innovation happens."

Infosys has grown into a $2 billion firm starting small and "though Infosys is big today, it has a heart for small companies," Pai said.

An STPI-like body with SEZ benefits which will continue to support IT companies in India is needed. "The STPI is one of the best initiatives that the Indian government had taken and that should be adopted in the SEZ regime. The SEZ policies in its present form favours a real-estate developer," Pai said.

There has been no further development on the 845 acres of land which has been the centre of controversy in Bangalore. "We have received a letter from the state committee that it has been approved but there is no headway in land acquisition. We are trying and let's see how it develops," Pai noted. The Bangalore real estate market is presently overheated and they will wait a little for it to cool down before making further land acquisitions.