Nasscom, the apex body of software developers in the country, has said it was hopeful that the government will extend the STPI scheme in the next budget.

“I have met the finance minister. We had sought extension of the Software Technology Park (STPI) scheme beyond 2009,” Nasscom President Som Mittal told PTI. Mr Mittal said the software industry in the country, although growing, was still at its nascent stage, adding that the STPI initiative of the government had helped the small and medium software and BPO companies. “These companies cannot move into the SEZs due to cost considerations,” he said

Nation’s interest

“Nasscom is of the view that the scheme should be extended for which we had requested the finance minister,” Mr Mittal added. Comparing STPI with IT SEZs, he said the latter would be located mostly in the major cities. 

Further, Mr Mittal said that Nasscom was encouraging geographical dispersion of software companies to Tier II and Tier III cities across the country.

“It is in the nation’s interest that the software companies be spread out”, he said. Even China and Phillipines were following the same model, he added.