SOFTWARE TECHNOLOGY PARKS-At the forefront of the IT revolution
Technology Parks - Website
stpi.soft.net
Other links to Technology Parks in India
123india.com
Software Technology Parks accounts for 70% of India's fast-expanding software export market
Software exports from India crossed the $ 3-bln mark in the year just gone by, recording a staggering 84% growth over the previous year. The software industry, one of the highest foreign exchange earners, is all set to become India's single-largest exporting sector. It is estimated that by 2002, software exports would account for over 20% of India's total exports as compared to just 4.5% in 9903.
In the initial stages of the development of the software industry, lack of infrastructure and procedural hassles dissuaded entrepreneurs. Hence, the Software Technology Parks (STP) scheme was introduced with the objective of providing a one-stop shop offering all necessary clearances.
STPs act as 100% export-oriented resource centres for the member-computer software exporting units by offering general infrastructural facilities like utility, power, ready-to-use built-up space, centralised computing, besides high speed date communication facility.
STPs have played a key role in India's fast-expanding software exports accounting for 70% of the total software exports. STP's role has been of providing the necessary infrastructure to facilitate the export of software products.
The life-line of software exports is high-speed datacom connectivity to the world. For offshore software development, which is the fastest-growing software export segment, high-speed data communication links is absolutely essential. Both Videsh Sanchar Nigam(VSNL) and Software Technology Parks of India (STPI), which is an autonomous body set up by the Department of Electronics, have been providing this facility.
STPs also perform various functions like issue of import certificates, software valuation, and attestation of export declaration for member-units as a single point interface.
A STP can be set up by the central government, state government, public or private sector undertakings or jointly by any combination of these entities. A STP unit can be a stand-alone unit or one of the units located in a STP complex.
Nearly 1000 software exporting units are operating under the umbrella of STPI. A number of state government-promoted institutions, including a few private organisations, have taken initiatives in setting up information technology parks in various states including Bangalore in Karnataka, Hyderabad in Andhra Pradesh, Kerala, Maharashtra.
The Indian software industry has already attracted the attention of all major software-using nations in the world. In 9503, 104 companies in the Fortune-500 companies outsourced their software requirements from India. This number went up to over 158 companies last year.
The base of software exports is widening, with increasing penetration into new markets like South-East Asia, Japan, Australia and South America.
Importantly, there has been a significant shift in trend from onsite development to offshore development.
The software industry has created a history in the secondary market with market capitalisation of software companies ballooning and surpassing those of old-time favorites. Many investors in software companies have become millionaires. Not only have investors logged into software companies in the secondary market, but the virtually dead primary market has shown sings of revival due to a spate of software IPOs.
Considering the unique characteristics of the software industry, the Securities and Exchange Board of India (SEBI), too, has relaxed entry norms for software companies to allow them tap the primary market in an effective way. Now, software entrepreneurs can offer only 10% of their equity to the public to get their companies listed.
The Prime Minister has set a target of $ 50 bln software exports by 2008. To achieve this, the government had set up an information technology taskforce. A number of suggestions were made. These include easy availability of bank finance to the sector, treating the software industry as priority sector for lending by banks for the next five years, setting up of venture capital funds dedicated to the software industry by banks and financial institutions like ICICI and IDBI, dollar-linked stock options to employees of Indian software companies, and encouraging setting up of private STPs.
STPs, undoubtedly, will be at the forefront of making India an IT superpower.
Benefits of STP units
STP/STP units can be set up anywhere in the country.
An organisation setting up a STP complex for development and export of software through the STP scheme may import, free of duty, the requisite infrastructural equipments with no export obligation.
The centralised infrastructure created by STPs can be accessed by the educational and research community.
STP/STP units can import telematic infrastructure without any customs duty and export obligation.
STP/STP unit is a duty-free and bonded area under Sec. 65 of the Customs Act, 1962.
All the imports to STP units are duty-free
STP units are exempted from payment of income tax for a block of five years in the first eight years of its operations under Sec. 10 A and 10 B of Income-Tax Rules.
STP units are entitled to sell the computer software in domestic tariff area (DTA) upto 25% of the software exported in value terms.
The capital goods purchased from the domestic tariff area (DTA) are entitled for benefits like levy of excise duty and re-imbursement of Central Sales Tax (CST).
100% foreign equity is permissible.
Computer systems in STP units are allowed for training purposes within the premises of a STP unit.
Capital invested by foreign entrepreneurs, know-how fees, royalty, dividend, etc. can be freely repatriated after payment of income tax.
Technopark
technopark.org
Technopark has been established by the government of Kerala to provide the environment and infrastructure for ventures in software and electronics. Located in close proximity to Trivandrum International Airport, Technopark has been operational since 1994. Designed to international standards, built-up space is readily available in standard design modules of 2000 sq ft and multiples.
The Technopark campus has 7,00,000 sq ft of built-up space and 150 acres of developed land. Over 2,00,000 sq ft of built-up space is proposed to be added every year.
A dedicated satellite earth station is available to assure high-speed world-wide data and voice communication. The self-contained world of Technopark provides amenities like an international convention centre, library and information bureau, post office, shopping mall, restaurant. Other amenities like health club and swimming pool complement the park's business facilities.
There are two free zones in Technopark - Software Technology Park and Electronics Hardware Technology Park. The advantages offered are duty-free imports, 100% ownership and corporate income-tax holiday for a block of 10 years.
Moreover, the availability of trained manpower in Kerala is cutting edge. Additionally, a number of academic, research and scientific institutions, located in Trivandrum are associates of Technopark. Prominent among them are University of Kerala, Indian Space Research Organisation, Electronic Research & Development Centre and Software Training and Development Centre.
Technopark, today, has international reputation as an ideal location for information technology businesses. It is the first and most advanced information technology park in India and presently houses about 35 highly successful ventures. The number is expected to touch 100 by the turn of the century. Almost all the companies in the campus today have registered a 300% annual growth rate.
The major attraction of Technopark is the easy start up facilities with no state level clearance required for the purpose.
Hi-tec City
apisit.com
Hyderabad Infor- mation Technology Engineering Consultancy City (Hi-Tec City), promoted by L&T Infocity, is Asia's largest technology park, ideal for players in the electronics, information technology, telecommunications, engineering, finance and other related industries. Spread across 158 acres, the project is being developed at an outlay of Rs 1,500 cr.
L&T Infocity is a 89:11 joint venture between engineering and construction construction conglomerate Larsen & Toubro and Andhra Pradesh Industrial Infrastructure Corporation (APIIC).
A self-contained world with all support systems in place, Hi-Tec City provides customers the high-speed global connectivity to the world. It offers customers high-speed data links from Software Technology Parks of India (STPI) and Videsh Sanchar Nigam (VSNL). It also provides Internet facility to the customers.
Hyderabad is rapidly developing as the cyber capital of India backed by the IT-friendly state government of Andhra Pradesh. As an incentive, the government has waived stamp duty and registration charges for IT companies setting up office in Hi-Tec City.
Easy access to skilled manpower is another advantage for software companies setting their shops in Hi-Tec City. The location is in close proximity to Indian Institute of Information Technology set up by the AP government.
Hi-Tec City also has a host of other amenities like documentation centre, travel agency, retail banking, round-the-clock-security, star hotels, club house and cafeteria.
(Courtesy:Capital Markets) |
