Export Import Management Chapter - Software Technology Parks

Software Technology Parks STPI

With an objective to implement STP scheme, set up and manage infrastructure facilities and provide other services like technology assessment and professional training, Software Technology Parks of India (STPI) was established and registered as an autonomous society under the Societies Registration Act 1860, under the Department of Electronics and Information Technology, Ministry of Communications and Information Technology, Government of India on 5 June 1991. 

STPI mainly acts as a catalyst for software exporters and provides statutory and regulatory services to the IT/ITES units through STP and EHTP scheme to promote the software exports from the country. It provides physical infrastructure, including dedicated high speed connectivity to technology parks, freedom for 100% foreign equity investment and tax incentives. 

STPI also provides physical hosting for the National Internet Exchange of India. By offering general infrastructural facilities like ready to use built-up space with centralized computing facility and High Speed Data Communication (HSDC), STPI acts as a resource centre for the member software-exporting units. The STP units have gained advantage from STPI's proactive single window clearance facility and nationwide presence to achieve more than 90% of the segment's total turnover in the country, which is considered a major contribution to the national goal of being top IT exporter in the world. 

Importance of STPs STPs mandate is to promote export of IT software services in the country by providing: • Infrastructure support (data communication and incubation) • Single window clearance facility for software exports • Fiscal benefits • Interface between government and industries

Services offered 1. STP scheme: For the development and export of computer software including export of professional services using communication links or physical media, Software Technology Park (STP) scheme is introduced which is a 100% Export Oriented Unit (EOU) scheme. STPI acts as front end on behalf of Government of India to implement the STP scheme in the designated region.

Highlights of the Scheme: 

• The capital goods purchased from Domestic Tariff Area (DTA) are entitled to benefits like exemption of excise duty & reimbursement of Central Sales Tax (CST)

. • Approvals are given under single window clearance scheme.

 • 100 % foreign equity is permitted.

 • All the imports of software & hardware in the scheme are completely duty free.

 • Simplified minimum export performance norms i.e., positive net foreign exchange earnings.

 • Sales in the Domestic Tariff Area (DTA) are permissible upto 50% of the export in value terms.

 • STP units can be set up anywhere in India.

The exports made by this scheme have grown considerably over the years and has been widely successful. The estimated total exports by STP units in 2011-12 were Rs. 226712 crores and as on 31st

STPI. 2. EHTP Scheme: Electronics and Hardware Technology Park scheme is a 100% Export Oriented scheme for development and export of electronics hardware. The scheme has played a key role by increasing exports over the years and thus contributing in the growth of electronics industry of the country. 

3. HSDC services: It is the backbone of IT Industry. 

STPI is a licensed international communication service provider and is category A Internet Service Provider (ISP) in the country. 

4. Incubation services: STPI provides high tech incubation facilities to enable the start up units in commencing operation immediately on inception. This ready to use facility consists of all modern computing infrastructure and common services where companies can setup units with hardly any capital investment. Incubation facilities have the following features:

 • Prime location with good ambiance • Fully furnished office space

 • Broadband-based internet access

 • Conference training facility 

• Fully air-conditioned 

• 24×7 power backup

• Latest computer workstations (optional) 

• Full business center support 

5. Project Management Consultancy: STPI takes up various PMC services, which include network consultancy, infrastructure development, policy formation, feasibility studies, complete network solution, and data centre. 

6. IT Managed Services/Co-location Services: In order to store critical server equipment in a purpose built facility along with other client servers, co-location services are used. This allows the provision of a reliable networking and power and security services. If required client can access its machines by going to the facility at any time. 

Software Technological Parks in India The headquarters being situated in New Delhi, India has STPs situated in the following places in India: Trivandrum, Trichy, Mangalore, Kolkata, Dehradun, Jaipur, Bangalore, Hyderabad, Rourkela, Kanpur, Bhubaneswar, Guwahati, Hubli, Mysore, Chennai, Madurai, Mumbai, Lucknow, Noida and Gandhinagar, etc.