Govt waives rental of companies in STPI till June

IT companies operating in Software Technology Parks of India (STPI) will not have to pay rent for four months starting March 1, 2020 in the wake of the coronavirus outbreak and the lockdown.

"In view of the challenges thrown by COVID19 outbreak and consequent lockdown, the Narendra Modi Government today took a major decision to provide relief from payment of rental to the small IT units operating out of the STPI," Ministry of Electronics and IT (Meity) said in a statement.

Around 266 companies operate in STPI with a total employee strength of over 4,100. Most of these units are either technology medium and small enterprises or startups.

"The Meity has decided to provide rental waiver to these units housed in STPI premises in the country from March 1, 2020 till June 30, 2020 i.e. for 4 months period as of now," the statement said.

STPI is an autonomous society under Meity and it has 60 centres across the country, it added.

The initiative to provide rental waiver to the units located in these centers will provide relief to the industry in this crisis, the statement said.

"The total cost of the rental waiver provided to these units during 4 months period from March 1, 2020 to June 30, 2020 is estimated to be around Rs 5 crore," it said.

Meity and Ministry of Communications have quickly responded to the demand of IT sector when the coronavirus infection started spreading in India.

STPI issued a note clarifying that employees of IT companies can work from home. The Department of Telecom also made suitable changes in the permits to allow IT and BPO companies to operate from home.