From STPI to SEZ
Naturally, the IT industry is not comfortable with seeing the STPI scheme go. It was slated for expiry in 2009, but the industry managed to wangle two extensions for it. The Government has provided an alternative in the form of Special Economic Zones. However, the SEZ option and the 15-year tax holiday it brings with is of little use to established IT firms that had already benefited from the 10-year tax holiday under the STPI scheme.
STPI Vs. IT SEZ
By 31st March 2009, 8455 IT units were operating out of STPI facilities, out of which 7214 units were actually exporting. As of now, a total of 51 STPI centers and sub-centers are operational across country. Out of these, 44 are located in Tier I and II cities. With the Government is fairly firm in its intentions of enforcing the final phasing-out of STPI by March 31, 2011, most of these will necessarily be consider a move in SEZs. Obviously, this will give a huge impetus to IT SEZs in India – and to the commercial property sector as a whole.
- Sahel Pramendra
The author is the Managing Director – Transaction Management Services, Jones Lang LaSalle India
