Maharashtra State IT Policy Should Encourage Small Hardware Sections

-Dipak Mortale

The Maharashtra government has requested suggestions from across the sectors before drafting the new IT policy.

For development of IT hardware units, the state Government has to provide capital subsidy for the technology transfer. Today, IT hardware industry is depending totally on technology from other countries. If the state promotes IT hardware (SSI) Industry, considerable foreign exchange can be saved and the employment generation will also be quite high.

I request the government that small scale System integrators / IT units must be exempted from work contract tax. All IT products must be exempted from local body tax (LBT), because tax structure is one of the key challenges for the small business owners in IT. This is already exempted in Solapur Mahanagar Palika.

Property TAX, Electricity Tariff must be as per residential rates and encourage investments in the underdeveloped region along with TAX-free zones must be declared. Already 50% VAT refund is available in package Scheme of Incentives for such regions.

The government should think about giving preferences to the IT clusters under Maharashtra State Industrial Cluster development Program (MSI CDP). Incubation Centers should be set up by all DIC’s at District level with association with Local IT Associations. An Empowered Committee should be constituted at the state-level to monitor the implementation of this Policy, and develop procedures where only MAIT & NASSCOM get representation in this committee. For Effective monitoring and implementation of the IT policy, it is very important to involve some state level as well as Regional and district IT Associations.

We expect Small Scale IT Hardware and System Integrators units should be allowed to be set up in any zone (including residential and no-developed zones). They should also be provided exemption from payments of security deposit and earnest money deposit as per MSME act of central government. At least 30% of the state government’s purchase must be reserved for Small Scale IT units in the state. This should be applicable for the Central Government companies in the state too.

Encouraging mobile applications in all department for effective and fastest communication will always help effective e-tendering rather than rate contract systems for purchase of IT products.
E-Waste management must be encouraged by providing special incentives to e-waste management IT units with district-level IT cell or committee should be formed to monitor the implementation of IT policy.

(The author is the president of Nanded IT association. The views expressed in this article are those of the author and do not represent the views of Channel Times or any of the websites managed or operated by Trivone Digital Services)