Maran wants tax sops for STPI units to continue

CHENNAI: Union minister for communications & IT Dayanidhi Maran is firm in his view that tax benefits to software technology park (STPI) units should continue, even beyond the March ’09 deadline. His ministry is preparing a Cabinet note seeking to retain the benefits to STPI units, post-SEZ scenario.

Mr Maran pointed out that the STPI is for SMEs. “I don’t want them to suffer as there has not been a single default by them. STPI is a huge success story,” he said.

“Large companies like Infosys and Wipro can acquire 10m sq ft and apply for SEZ status. I don’t want the smaller units to be affected in the process,” Mr Maran said.

He also said the government will soon come out with a new semi-conductor policy to give a fillip to this emerging industry. A Cabinet note will be prepared in a month’s time. Focusing on Chennai, Mr Maran said the city has emerged as the preferred destination, with the new government giving the right signals. “Tamil Nadu is all set to attract lot of MNCs and the showcasing of Tier II cities is picking up momentum,” he said.

“We have to learn from the Bangalore example, as infrastructure cannot be altered overnight. It is for no reason that Motorola, Flextronics and Dell are coming to Chennai. The Chennai plant operations have proved cheaper than its plant in China for Nokia,” Mr Maran said.

Further, the state is keen to spruce up infrastructure to spread the business evenly across the state. Monthly review meetings have been planned, even as the Chennai Metropolitan Development Authority is preparing a master plan for traffic management.

The state government has also decided to insist that one-fifth of the land allotted for IT units, should be set aside for housing projects. While the local administration minister has announced a slew of flyovers in the city, the IT Corridor will be ready by May ’07, Mr Maran said.