The Madurai District Tiny and Small Scale Industries Association (MADITSSIA) has urged the Tamil Nadu Government to ease the norms for allotting land in IT parks established across the State.
Welcoming the State Government's initiatives to develop IT parks in tier-II cities, the trade body said that this would reap rich dividends such as boosting the region's economy only when local entrepreneurs and industries are included in the process. However, in Madurai, several factors were hindering locals from taking part in the two IT parks, they noted.
A delegation comprising Association Vice President L. Murari, Panel Chairman of IT Aswin R. Desai and others met the Minister for Information Technology, K.A. Senkottaiyan, recently and submitted a memorandum seeking the development of IT parks at Ilanthaikulam and Vadapalanji in Madurai district.
For a company to get land allotment in the IT parks, the current norms stipulate that 50 per cent of its revenues must be from exports with total minimum revenue being Rs. 1 crore. Also, the rental of Rs. 18 per square feet with an additional Rs. 5 at the Ilanthaikulam IT Park was termed as being on the higher side.
The association also suggested that the IT Department could consider creating a separate zone inside the IT Special Economic Zone for local small and medium enterprises that were yet to meet the export revenue criteria but have plans to increase export activities.
The MADITSSIA also called for rationalisation of taxes as at present industries were subject to dual taxation – the State Government's Value Added Tax (VAT) and the Union Government's Central Excise. It also called for adequate training to officers to enable them comprehend the IT industry and accordingly implement a tax structure.