Nasscom for change in SEZ Act to help IT start-ups

Kolkata, July 14 (UNI) Nasscom, the premier body for IT software and services industry in India, today called for modification of the Special Economic Zone (SEZ) law to help develop small IT companies in the country.

The SEZ law favours big companies and builders as it calls for buying large chunks of land of at least 25 acres for setting up a unit, which is not suitable for start-up IT companies, Nasscom president Kiran Karnick said in the sidelines of a ITES-BPO conclave here.

'' We are holding talks with the government for modification of the SEZ Act since IT thrives on growth of small start-up companies,'' he said.

The Nasscom is in talks with the government for extension of the incentives to Software Technology Parks of India (STPI) for another 10 years, Karnik said.

''We will also urge the government to extend the SEZ status to STPIs,'' he said.

Karnik said Indian ITES-BPO exports have grown to USD 6.3 billion in 2005-06 and it is expected tp grow to USD 8-8.5 billion in 2006-07.

''The net employment in the ITES-BPO segment has grown by approximately 1 lakh in 2005-06, taking the total direct employment in the segment to 4,15,000,'' he added.

UNI TJP KK RN1538