information technology companies

After getting the nod for information technology and IT-enabled companies at the Special Economic Zone (SEZ), Gujarat Financial Tech-City is all set to ready its first building in three months. The GIFT Company Ltd (GIFTCL) and Infrastructure Leasing & Financial Services Limited (IL&FS), official partners in the Gujarat Financial Tech-City project, will be constructing 1 lakh to 1.5 lakh sq feet space at the cost of Rs 30 crore. This is likely to generate over 1,500 jobs in four months of it becoming functional, Gujarat Financial Tech-City sources said. GIFT has identified an area of 886 acres, of which 673 acres has already been acquired. Gujarat Financial Tech-City SEZ will be spread over 261 acres. The estimated cost of entire Gujarat Financial Tech-City project is Rs 70,000 crore. GIFT will initially target information technology and IT-enabled companies along with Business Process Outsourcing and Knowledge Process Outsourcing units in Gujarat and Mumbai, as most of these companies’ contract with Software Technology Parks of India (STPI), a government of India initiative to help IT companies get tax waiver, is over.

Companies who are into export of products or services have an advantage shifting to GIFT’s SEZ, the sources said. There are 30,000 companies in Mumbai and about 3,000 in Gujarat that had registered under STPI. Gujarat Financial Tech-City Director Mr.RamakantJha said, “Many companies have approached us to know the SEZ’s status. One of the major reasons is STPI not extending the tax benefits. We thought of offering temporary facility on Gujarat Financial Tech-City - SEZ campus to these companies who can begin work immediately.” Mr.RamakantJha said the companies will be given ready facility and when the regular building comes up in two years they will be shifted there. Under the proposed Direct Tax Code, the SEZ benefits will be available only to those units who begins operations before March 31, 2014, he said. Mr.PranitBanthia, CEO of Hi-Tech Outsourcing, told Mirror, “For big companies who are into export, Gujarat Financial Tech-City - SEZ is surely a blessing. However, for small companies distance may prove to be problem.” Mr.PranitBanthia said that unless facilities like Metro or BRTS are extended till Gujarat Financial Tech-City premises, small information technology and Business process outsourcing companies will find it difficult to operate.