Covid -19 : Financial support from State Governments sought

Terms of use

Terms of Use

The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.

All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.

Disclaimer

The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.

For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.

New

See all

No notification found.

Covid -19 : Financial support from State Governments sought

Jayakumar Selvaraj

@Jayakumar

April 28, 2020

Public Policy

811

NASSCOM has made representation to the State Government of Madhya Pradesh and Kerela, seeking financial support to the IT -ITeS companies in the State. The content of the representation is reproduced below.

In the wake of the ongoing Covid-19 crisis, the Indian IT-ITeS industry faces an unprecedented challenge in terms of business continuity and visibility. With countries resorting to lock-down measures and restricting the movement of people in an effort to contain the spread of the novel coronavirus, business across the globe are facing unforeseen levels of disruption. This has led to blurring of business visibility and has allowed pessimism to set in.

Clients of the Indian IT-ITeS industry, world over, have been severely impacted by the pandemic, and the cascading effect of this disruption on the Indian IT-ITeS industry is inescapable. IT-ITeS companies are already facing delays in payments due from their customers, and this trend is only expected to worsen in the near future, as companies conserve cash to tide through the crisis. In fact, existing contracts are being cancelled by mid-sized clients, who are typically served by the smaller IT firms, lending to the apprehension that new contracts will be difficult to come through in the near future. Given that the Indian IT-ITeS industry generally maintains about 30% workforce in excess of its requirement, in anticipation of new projects, the disruption caused by the present crisis has significantly impacted the industry’s ability to support employees and meet its other essential expenses for the next 6 months.

Therefore, State Government should consider the following relief, to help address the cash flow constraints faced by the companies in the near term and tide over the crisis.

All departments and State owned PSUs shall be directed to release all pending and future payments/invoice receivables raised by IT-ITeS firms, within 15 working days.

Rent waiver: IT firms in the State are housed in both government and privately-owned buildings. Therefore,
1. Rent for companies that are housed in Government owned IT parks, shall be waived off, for the period April to June 2020.
2. To support firms housed in private buildings, a rent subsidy to cover 50% of the rental expense, shall be provided for the period April to June 2020. The benefit that a company can receive shall be capped at Rs. 2 lakhs per month. Companies with annual turnover of less than 50 crores, which do not avail benefit under (a) shall be made eligible to avail this, on a reimbursement model.

Maintenance charge of the Govt owned IT facilities shall be reduced by 50% for the period April to June 2020.

Property tax for FY 21, shall be waived off, on the condition that the benefit be passed on to the tenant.

All commercial electricity bills shall be subsidized by 50% for the next 6 months. No disconnection be made for the next 6 months on account of delay in payments.

Wage subsidy to cover 50% of the salary cost of employees with an annual income of less than 5 lakhs per annum, shall be provided for a maximum of 100 employees per company. This benefit shall be made available on a reimbursement basis, on the condition that no layoffs of existing employees would be done in FY 21.

The Government of Kerela has already announced rent waiver to IT companies who have taken up less than 10000 sq.ft in govt owned buildings, for period April to June 2020. A 3 month moratarium has been offered to other companies. The order can be found here – https://www.nasscom.in/sites/default/files/corona-files/20200427_Kerala_GO%20Rt%20No51%202020-ITD-%20Resurgent%20measures%20for%20IT%20parks%20in%20Covid%20times.pdf

Rent waiver to IT-ITeS

Disclaimer

That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.

Jayakumar Selvaraj

Jayakumar

Call for Inputs: SEBI's consul...

Swapnil