The Ministry of Electronics and Information Technology (MeitY) announced a rental waiver for small Information Technology (IT) units working from Software Technology Parks of India (STPI). This initiative aims to provide much-needed support to the IT and IT-enabled services (ITeS) industry, particularly impacted during the Covid-19 lockdown.
Supporting MSMEs and Startups During the Pandemic
A substantial number of IT units are either Micro, Small, and Medium Enterprises (MSMEs) or startups. The rental waiver is slated to benefit around 200 of these IT-ITeS MSMEs residing within the 60 STPI centres across the nation. The initiative indirectly supports approximately 3,000 IT-ITeS employees whose livelihood is directly supported by these MSME and startup units.
Funding and Cost Implications
The government’s decision to provide rent relief for the four months from March 1 to June 30, 2020, will absorb an estimated cost of about Rs. 5 crore.
About Software Technology Parks of India (STPI)
Established in 1991, STPI operates as an autonomous society under the supervision of MeitY. Its primary objective revolves around promoting software exports from India. STPI provides various services to the software-exporting community, including statutory services, data communications services, incubating facilities, training, and other value-added services.
STPI’s role has been instrumental in encouraging software exports, primarily focusing on driving growth among SMEs and startup units. STPI oversees and implements the Software Technology Park (STP) scheme and the Electronics Hardware Technology Park (EHTP) scheme to further promote the IT/ITES industry development.
The STP and EHTP Schemes
The STP scheme, devised to foster the software industry and startup/SME growth, introduces flexibility by allowing a company to set up an STP unit anywhere in India. The EHTP Scheme is a 100% Export Oriented Scheme for carrying out manufacturing of electronic hardware equipment and other items in India.
Current Scope of STPI
Presently, STPI has more than 5,000 units registered under its purview. It operates 60 centres across the country, with a varied presence in tier 1 cities such as Bengaluru, Chennai, Mumbai, and Kolkata, and tier 2 cities like Nagpur, Warangal, and Surat.
