JOIN USNo SEZ status for Infosys Kolkata
The West Bengal government and Infosys have decided to go for a mediation regarding their stalled project to set up a facility in Rajarhat, Kolkata, said a top minister from West Bengal.
“We have made it clear that we have a moral issue with SEZ, owing to the massive land acquisitions related to it and since they already have 50 acres , we have decided to go for an option which benefits us both,” West Bengal Information Technology Minister Partha Chatterjee told Deccan Herald over phone.
Since the problem with Infosys in going ahead with the project is the absence of Special Economic Zone status and the attendant tax benefits; and, the problem of the government is the absence of state SEZ policies, the minister said that the meeting discussed how mediation would be beneficial to both parties.
In a statement sent on Thursday, Infosys said, “We had a meeting with the IT Minister of West Bengal, Partha Chatterjee today; and discussed the issues around the proposed Infosys Development Center in Kolkata. We have agreed to work together towards finding a solution.”
The minister, however, ruled out any SEZ status to the company and said that further details will only be available after he speaks to Chief Minister Mamata Banerjee.
“Infosys has said that they have full confidence in the chief minister,” Chatterjee added.
Banerjee had earlier said that the government would not change its policy on SEZ for any company and had asked Centre’s consideration for Software Technology Park (STPI) scheme. IT companies, under STPI ambit enjoyed 100 per cent tax holiday till March 31, 2011 after which it expired. However, under SEZ rules, companies are entitled to 15-year benefits.
They get 100 per cent tax holiday for first five years; 50 per cent in the second five years and 40 per cent in the third five years. Moreover, labour laws are not valid in an SEZ which enables companies to go for flexible work hours.
“We have also discussed applying for a special provisioning to the Union government in this case,” explained Chatterjee. Infosys, which employees close to 1.5 lakh people globally had announced that it plans to invest Rs 1,000 crore in Kolkata and employ around 20,000 techies.