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‘Semi-conductor policy’ attracting investments: Raja

Special Correspondent

“Extension of sunset clause will be taken up with Prime Minister”

— Photo: R. Ragu

A. Raja, Union Minister for Communication & IT, and State Higher Education Minister K. Ponmudy at the Connect 2008 inaugural session in Chennai on Friday.

CHENNAI: Union Minister for Communications and Information Technology A. Raja on Friday said he would take up with the Union Government the demand for further extension of the “sunset clause” providing tax concessions to software technology parks.

Addressing the inaugural ceremony of “CONNECT 2008,” the premier ICT event co-hosted by the Confederation of Indian Industry, Tamil Nadu Government and Union Ministry of Communications and IT, Mr. Raja said he would take up with the Prime Minister and the Finance Minister the demand from industry for continuing the tax sops, which are due to end next year.

The concessions regime under the Software Technology Parks of India (STPI) scheme had already been extended once and he would propose a further extension by one year, he said.

The STPI scheme, with its unique features of single window clearance, tax benefits and business incubators, provided favourable environment for SME start-ups.

The STPI also facilitated equitable development through uniform dispersal of units in Tier II and III cities, he said.

The Centre’s ‘semi-conductor policy’ has already triggered an inflow of over Rs.one lakh crore of foreign investments into the country, he said. The theme of the conference was “Global Competitiveness and Equitable Growth-Driven by Innovation.”

Outlining various initiatives of the IT department, Mr. Raja pointed out that the Indian IT/ITeS industry had netted a 33 per cent increase in revenue over the previous year — from US $ 48 billion to US $ 64 billion. Exports of software and services recorded an increase of 28.3 per cent from US $ 31 billion during the same period, Mr. Raja said.

Higher Education Minister K. Ponmudy called for closer linkages between industry and higher education institutions. He pointed out that Tamil Nadu alone produced over a lakh engineers out of the national output of about 7 lakh engineers every year.

Chief Minister M. Karunanidhi, in his message, expressed confidence that Tamil Nadu would top the ICT sector ahead of the 2011 target of garnering 25 per cent of ICT production share and generating 8 lakh jobs.

One new software unit is being set up in the State every two days, Mr. Karunanidhi said. The number of software units had grown to 1,148 in 2007-08, with 183 of them floated in the last year alone.

Software exports

Software exports from the State had grown to Rs. 28 crore this year, accounting for 16 per cent of India’s aggregate output while the IT industry had generated 77,000 jobs in the last one year alone, taking the aggregate recruits in this sector to three lakh, he said.

John Douglass, former president and CEO, Aerospace Industries Association said the US Federal aviation authorities are likely to engage their counterparts in India to collaborate on the in the massive re-engineering being undertaken at obsolete air traffic systems in airports across the U.S.

India had the potential to be the prime supplier of engineering workforce to the U.S. aerospace industry, which was beset by an ageing workforce, Mr. Douglass said.

K. K. Aggarwal, president, Computer Society of India, said any benefit extended to the IT industry would be passed on to society, tangibly or not.

Subu D. Subramanian, chairman, ‘Connect 2008’, Manikam Ramaswami, chairman, CII, Tamil Nadu and B.V.R. Reddy, chairman, CII (southern region) also spoke.

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