IT entrepreneurs in the city have decided to up the ante for a slew of incentives to help them overcome the losses suffered due to the COVID-19 pandemic.
With lockdown ruining their cash flow and the severe jolt suffered by the multinationals based in the US and Europe putting a question mark over outsourcing orders, the IT units hope that both the Centre and State would come to their rescue.
Visakhapatnam is often termed as the IT capital of Andhra Pradesh, with an annual turnover of ₹2,000 crore. It is home to big units such as HSBC, Wipro, Tech Mahindra, Conduent, WNS, Fluentgrid, Patra India, IBM and Concentrix.
The entrepreneurs, while seeking incentives to bounce back, albeit slowly, also want that those eligible should be given sops under the MSME segment.
Pending amount
“The State government has also earlier committed to release pending incentives worth ₹40 crore. This being towards incentive for employment and starting operations as per schedule, should be released immediately. In addition, the ₹904.89-crore worth incentives being given to the MSMEs should also be extended to the IT units eligible under the category,” Rushikonda IT Park Association vice-president O. Naresh Kumar said.
Consequent upon its decision, the State government issued GO RT. No. 104 dated May 19, 2020, by the Industries and Commerce Department to release ₹904.89 crore promised to the MSMEs sometime ago.
Mr. Naresh Kumar said the procedure for getting incentives under the order such as applying through the portal for getting wavier of fixed/demand charges for power for three months should be relaxed.
Another entrepreneur said the MSME entrepreneurs should be given soft loans to expand their activities so as to increase job opportunities for the locals.
