Rental Waivers to STPI Units | 18 Apr 2020
Why in News
The Ministry of Electronics and Information Technology (MeitY) has decided to provide rental waiver to small Information Technology (IT) units operating out of the Software Technology Parks of India.
- This would provide a major boost to the IT and IT-enabled services (ITeS) sector amid Covid-19 lockdown.
Key Points
- Most of the IT units are either MSMEs (Micro, Small, and Medium Enterprises) or startups.
- Benefit of the Rental Waiver:
- This initiative will provide benefit to nearly 200 IT-ITeS MSMEs, operating from the 60 STPI centres.
- This effort is also in the larger interest of around 3,000 IT-ITeS employees who are directly supported by MSME and startup units.
- Cost to the Government: The total cost of the rent waiver to these units for the four months from March 1 to June 30, 2020 is estimated to be around Rs. 5 crore.
Software Technology Parks of India
- Software Technology Parks of India was set up in 1991 as an autonomous society under the Ministry of Electronics and Information Technology (MeitY).
- STPI’s main objective has been the promotion of software exports from the country.
- The services rendered by STPI for the software exporting community have been statutory services, data communications services, incubation facilities, training and value added services.
- STPI has played a key developmental role in the promotion of software exports with a special focus on SMEs and startup units.
- STPI has been implementing the Software Technology Park (STP) scheme and the Electronics Hardware Technology Park (EHTP) scheme for the promotion of IT/ITES industry.
- STP Scheme is a unique scheme, designed to promote the software industry and growth of startups and SMEs without any locational constraints. A company can set up an STP unit anywhere in India.
- The EHTP Scheme is a 100% Export Oriented Scheme for undertaking manufacturing of electronic hardware equipment and other items in India.
- At present, more than 5,000 units are registered with STPI.
- It has 60 centres across the country including a mix of tier 1 cities like Bengaluru, Chennai, Mumbai, and Kolkata and tier 2 cities like Nagpur, Warangal, and Surat.