The State government on Monday announced a slew of relief measures including rent waivers to prop up IT/ITES companies which have been hit hard by the pandemic and the lockdown.
The government order (GO), applicable to companies operating out of buildings owned by government IT parks, came in response to the demand for a stimulus package made by GTech, the organisation of IT companies in the State.
Rent
Rent for the months of April, May and June has been waived for all companies who have taken up to 10,000 sq ft of IT space on rental. For incubation centres operating in the IT parks, rent is waived for the three months irrespective of the area occupied.
IT/ITES companies which occupy more than 10,000 sq feet have been offered a moratorium on rent payment for the months of April, May and June. The rent for the three months can be paid by July, August and September without penalty or surcharge.
Rent waiver for the three months is also applicable to all non-IT shops and establishments such as restaurants functioning in government-owned buildings within the government IT parks.
The government has also put on hold the annual rent escalation of five per cent on space in government IT parks during 2020-21, while the surcharge on rental has been waived for six months (April-September 2020).
As a special scheme, IT/ITES companies that start operation on or before March 31, 2021 in any of the government IT parks will enjoy a rent waiver during the first three months of operation.
The government has also announced that the electricity charge for the months of April, May and June will be re-assessed as the premises of many of the companies have remained shut during the lockdown.
Unhappy
Meanwhile, IT companies are unhappy that the relief measures are not applicable to private buildings within the government IT parks. They also express dismay over the decision to limit the rent waiver to companies occupying upto 10,000 sq ft.
