Govt may extend STPI sops for 3 years from 2011: Raja

Union IT and Communications Minister A Raja today indicated that the government might extend tax benefits for Software Technology Parks of India (STPI) for three more years from 2011.

Speaking on the sidelines of a CII-organised two-day event on ICT (information, communications and technology), starting today, Raja said his ministry was waiting for the Cabinet’s approval for STPI incentives.

Under the STPI scheme, tax exemption is offered to export-oriented IT companies, which are outside the special economic zones (SEZs).

Presently, the scheme is scheduled to end in March 2010.

The minister said that the government had received 15 proposals worth Rs 1.5 lakh crore for the semiconductor industry, of which it has given in-principle clearance to eight proposals worth Rs 70,000 crore.

The in-principle approval has been given to projects that are ‘technically eligible’ under the Special Incentive Package Scheme but the actual approval would come only once the financial closure is achieved by the players. More than half of the projects that have received the initial nod are photo voltaic (PV) projects.

Some of the investors which have shown interests include Videocon Industries, Reliance Industries, Moser Baer, Titan Energy Systems, KSK Reliance Industries, Phoenix Solar India and Tata BP Solar India.

The minister added that the government would invest 20 per cent of the said investment to boost private sector investment and confidence.

Earlier in his address, he said that the IT-BPO industry grew by 12 per cent in 2008-09 to earn an aggregate revenue of $71.7 billion, while the exports of the sector grew by 16 per cent to reach $47.3 billion.

Besides, the minister said the government would allocate 3G spectrum by January Raja said the pre-bid conference for 3G spectrum was scheduled for October 12.

While for the 2G spectrum, the ministry said “we have approached Trai for a uniform licence fee for its recommendation. The regulator has sought time till November to reply.”

“We will also issue additional spectrum for 2G, provided if we get the clearance from Trai,” he added.