IT ministry seeks extension of STPI scheme

[dhilipkumar]

IT ministry seeks extension of STPI scheme

KOLKATA: The Union IT ministry has made a pitch to the finance ministry for extension of the Software Technology Parks of India (STPI) Scheme till 2015. The ministry feels extension of the scheme has become vital in the current scenario when the industry is facing a slowdown, said Union IT secretary Jainder Singh.

The STPI scheme is due to expire on March 31, 2010. Under the scheme, IT companies located inside software technology parks are exempted from Income-Tax under Section 10A and 10B of the Income-Tax Act. The scheme was originally supposed to lapse on March 31, 2009, but was extended for one year in 2008.

"The small and medium enterprises (SME) will benefit the most, if the STPI scheme is extended for another five years. Nearly 95% of the country's IT/ITeS export revenues emanates from STPIs. Even in terms of employment generation, it is STPIs who play a vital role and account for nearly 90-95% of total employment," said Mr Singh.