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Non-Tech : ICICI Ltd - (Nyse: IC) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (391)	3/15/2000 9:54:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 494

ICICI Info plans to set up export-oriented unit Anurag Joshi Mumbai, March 15: ICICI Infotech is launching its export-oriented unit (EOU) at Vashi in Navi Mumbai by next week to avail of tax benefits granted to units set up in software technology parks (STPs). Units set up in STPs on or after March 31, 2000, will not be eligible for the same tax benefits provided to those that are set up before the cut-off date. The wholly-owned infotech subsidiary of ICICI has acquired 80,000 sq ft at the Vashi Infotech Park for setting up the EOU. Another term-lending institution IDBI's infotech subsidiary IDBI Intech also plans to set up its infotech unit in the Belapur STP in Navi Mumbai before the cut-off date for similar reasons. "The focus will be on exports and overseas markets. The company has till date exported infotech related services amounting to Rs five crore," ICICI Infotech managing director V Srinivasan said. ICICI is likely to extend Rs 25 crore through term loans to its wholly-owned infotech subsidiary to fund its expansion plans. The term-lending institution has already extended Rs 10 crore to its subsidiary. The company has a paid-up capital of Rs 5 crore. "The company will soon set up offices in the US, Europe, Middle East and Australia to make a presence in the overseas markets," Srinivasan said, adding: "The plan to enter overseas markets will be either through a joint venture with a local player in that country or as a wholly owned subsidiary".The long-term strategy, according to Srinivasan, will be to develop back offices and call centres. The company has designed a call centre for the ICICI group and customised the centre to offer a "single point of contact" to provide customers with a uniform interface. According to the ICICI Infotech chief, ICICI's call centre acts as a consolidation point for all sales and service and promotes cross selling. INSIGHT Details are hazy There is a mad scramble to buy space in STPs to avail tax benefits under Section 10 A. It is, however, not clear that given the nature of transmission of IT products, how can it be proved that the work done in such STPs has not been transmitted from outside. It is also not clear as to how does an assessee prove that operations have commenced on or before March 31, 2000. The provision in the Finance Bill smacks of the work of lobbies and seems to be intended for the benefit of those who have unoccupied property in STP/HTP/FTZs. -- Urmik Chhaya -The Indian Express Publications Ltd (03/16/00)