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Helping get the act together

Vishwanath Kulkarni

THE Software Technology Parks of India (STPI) is a society set up by the Ministry of Information Technology, Government of India, in 1991 with an objective to promote and facilitate software exports from the country.

STPI acts as a front-end on behalf of Government of India and provides among other things services such as dedicated datacom and incubation. It also acts as a best interface between the industry and the Government.

STPI Bangalore (STPI-B) has a total of some 928 companies in Karnataka under its ambit. STPI-B which started with a registration by 13 companies in 1991-92 had some 165 approved during 2000-01, with the highest registrations of 497 coming in 1999-2000, d uring the height of technology boom.

STPI-B quite appropriately is the biggest STPI in the country, contributing to over 50 per cent of the overall software exports. With investments of more than a billion US dollars and a legacy of software industry spread over two decades, Bangalore is th e true leader in this arena.

Karnataka continues to lead in the IT industry, with overall software exports from the state touching Rs 7,475 crore in 2000-01, up from Rs 4,321 crore in 1999-00. It crossed the target of Rs 6,400 crore and achieved a growth rate of 73 per cent.

According to B.V. Naidu, Director, STPI-B, ``We never expected such a high growth rate and such high exports. This only goes to prove that Bangalore continues to lead in IT and beckon investment, as is evident with 165 companies registering in 2000-01. O f this 34 per cent are foreign equity companies working on high-end areas.''

The Electronics Hardware Technology Park (EHTP) companies have also grown with an overall export of Rs 357 crore in 2000-01 as against Rs 196 crore in 1999-00, amounting to 82 per cent growth rate. Exports from EHTP have risen steadily since its inceptio n in 1995-96 from Rs 25.34 crores. STPI-B has targetted software exports to the tune of Rs 11,000 crore in 2001-02 and Rs 17,000 crore in 2002-03.

STPI supports new companies by providing incubation infrastructure with all facilities namely internet, telephony, fax, back-up power, etc. STPI-B network connects some 175 IT buildings to its own gateway in the Electronics City through microwave, making it the largest radio-based datacom network in the country.

An Integrated Network Operations Centre (NOC) powered by Intranet-based processes adhering to ISO 9001 quality management system is operational 24 hours a day, 7 days a week. It controls and manages the SoftNET service to ensure highest availability.

Data Communication services under the name of SoftNEt provides:

* SoftPOINT - International Private Leased Line Service

* SoftLINK - High Speed Internet Access

* Captive Networks - Tailor-made services involving facility management along with SoftPOINT or SoftLINK>

STPI's scheme is a 100 per cent export oriented unit scheme for the development and export of the software using data communication links. STPI acts as a front-end on behalf of the government of India to take care of all the statutory needs such as proje ct approval, import approval, bonding, export certification etc.

The scheme tailor-made for software exports has benefits such as

* Duty free imports of hardware and software

* Exemption from income tax till 2010

* 100 per cent foreign equity participation

* Exemption of excise duty for domestic purchase of capital goods

* Reimbursement of CST

* Domestic Tariff Area shall be permissible up to 50 per cent of export value terms.

To avail STPI scheme benefits the simplified minimum export obligation is $0.25 million or five times of CIF value of imported capital goods whichever is higher.

The statutory services are supported on robust Intranet platforms to ensure instantaneous responses to customer requirements. The service delivery is bound with definitive timelines and toned with understanding of the best practices in the industry.

With a twin endeavour of keeping cost of operations low and in the view of developing multiple centers for software exports, many towns an cities have been identified as `Software Hamlets' and are being developed at a fast pace to encourage software deve lopment and exports. Karnataka boasts of four such software hamlets Mysore, Manipal, Mangalore and Hubli.

Pic.: The state-of-the-art infrastructure facilities provided by STPL at the Electronics City.

Picture by G.R.N. Somasekhar

(A broadsheet feature on electronics city, Bangalore)