Kerala IT industry seeks sops from government

February 4th, 2009 - 5:28 pm ICT by IANS  

Thiruvananthapuram, Feb 4 (IANS) Chief executives of Technopark companies here Wednesday asked the Kerala government to announce a stimulus package for the state’s IT industry, which has been hit hard by the economic slowdown. The Group of Technopark Companies (GTECH), a body representing the CEOs of the companies in Technopark, expected hope that the government would come up with some sops for the industry in the next state budget, to be presented later this month.

“We will meet Finance Minister Thomas Isaac with a complete memorandum, stating the actual condition of the industry,” GTECH CEO Binu Shankar told IANS.

The GTECH’s demands include: a six-month rent holiday, reduction of rentals to the tune of 30 percent, easing of power restrictions and clarification of the legal frameworks that companies are requested to comply with.

The Technopark companies have also requested the authorities to allow them to take up e-governance projects for the state government and quasi-government agencies.

Kerala’s IT industry now has an annual turnover of about Rs.15 billion (Rs.1,500 crore) and provides direct employment to about 60,000 people, of which nearly 30,000 are employed at various companies in the Technopark campus here and at the Infopark campus in Kochi.

GTECH officials have said the IT companies in the state cannot not achieve global competitiveness in the present situation unless the government comes up with sops.

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