NIIT Tech joins SEZ bandwagon
Software company NIIT Technologies has also joined the private Special Economic Zone bandwagon to tackle a future scenario where the current tax-free scheme comes to an end.
By PTI |
NEW DELHI: Software company NIIT Technologies has also joined the private Special Economic Zone bandwagon to tackle a future scenario where the current tax-free scheme comes to an end.
"SEZ is an option. We are looking at creating SEZ in our Greater Noida campus, which will support our own requirements", NIIT Tech CEO Arvind Thakur said here after announcing the company's annual results.
"The SEZ concept is evolving. We have provisioned an SEZ in our Greater Noida campus and are doing the preliminary ground work before applying for SEZ permission to the Government. We have acquired land and we will start construction only after getting a clear picture on our SEZ application status from the Government. We plan to approach the Government soon for approval", NIIT Technologies Chairman Rajendra S Pawar said.
Thakur said for 2006-07, the company plans to invest Rs 100 crore in the first phase, out of which majority would go towards the the G Noida campus to hire 3500 professionals over a period of 18 months. But the company before spending that will have get SEZ nod from the Government. The total capacity of this campus is 10,000 when fully built over three phases.
An SEZ is governed by a special set of rules to facilitate foreign direct investment for export-oriented production. SEZs are free trade zones and customs authorities do not supervise them.
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These zones are typically marked by minimum bureaucracy, best infrastructure, generous tax holidays, unlimited duty free imports of raw, intermediate and final goods as well as capital goods. Basically, governments look to SEZs to overcome difficulties in bureaucracy and fiscal measures. Tata Consultancy Services, Infosys and Essar have already been granted in-principle approval by the government this month for setting up Special Economic Zones.
The in-principle approval has also been granted by the Government for a 486-hectare free trade warehousing zone of SemIndia, a consortium of companies which plans a silicon chip manufacturing facility near Hyderabad.
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