AP CM to ensure that STPI is extended beyond 2009

New Delhi, July 13 (UNI) Andhra Pradesh Chief Minister Y S Rajshekhara Reddy today said that he would lobby with the central government and ensure that the STPI (Software Technology Parks of India) scheme be extended beyond 2009 to boost the growth of the IT industry.

''I will talk to the central government and ensure that the STPI scheme is extended beyond 2009. I promise to do anything to make Andhra Pradesh the most favoured investment destination in the country,'' Dr Reddy said at the breakfast meeting with CEOs of the IT and other sectors of the industry.

He was responding to suggestions by the industry leaders to ungrade the developing investment environment in the state.

The STPI scheme is a 100 per cent export oriented unit scheme for the development and export of software using data communication links or by physical media or by on site consultancy.

The scheme, tailor-made for software exports, has benefits like duty free imports of hardware and software, exemption from corporate income tax till 2010, 100 per cent foreign equity participation, exemption of excise duty for domestic purchase of capital goods, reimbursement of Central Sales Tax (CST), Domestic Tariff Area (DTA) shall be permissible up to 50 per cent of export value terms, CG goods eligible for depreciation subject to a maximum of 90 per cent, issue of Green card and certification of software export made through data communication.

While highlighting the steps taken by his government to project Andhra Pradesh as an investor friendly state, Dr Reddy stressed that industrial tarriffs in the state was one of the lowest and each year it was being reduced by 3 to 4 per cent.

''In spite of this fact we provide free power to the farmers and still record one of the highest fiscal ratings. The secret of our success is our efficiency,'' he pointed out.

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