IT entrepreneurs fault state’s incentive policies

By SNV Sudhir

Visakhapatnam, Jan 2, 2014: IT entrepreneurs are finding fault with policies of the state government and the functioning of IT department in promoting IT sector in Vizag.

Though an anchor company of an IT SEZ had provided an advance stamped receipt, the incentive promised was not released.

“Our anchor company incentive was processed and advance stamped receipt was also taken but amount was not released. They are asking for bank guarantee for Rs 10 lakh to release the same amount. And bankers are asking for a fixed deposit for the entire Rs 10 lakh to issue a bank guarantee. If we are forced to deposit money for issue of a bank guarantee, what incentive is this and how is this useful. IT department is fooling IT entrepreneurs while boasting of encouraging and promoting IT sector,” said Symbiosys Technologies CEO and Rushikonda IT Park Association (RITPA) vice-president O. Naresh Kumar.

Symbiosys Technologies was the first company to launch operations at the Madhurawada IT SEZ and is considered an anchor company. IT department announced an incentive of Rs 10 lakh for Anchor Company.

He added that the application was processed after verifying everything for many years. “So if a unit has obtained incentive on merit they should be encouraged,” Naresh said.

Further, the application of the recruitment incentive of the same company could not be uploaded since a year.

The department also announced recruitment incentive of Rs 15 lakh if the promised number of jobs is provided.

Symbiosys Technologies had fulfilled the criteria by providing 400 jobs for the 2 acre land allotted to it.

“Our recruitment incentive was not uploaded as online system was not working. This had to be uploaded by joint director promotions with help from regional IT officer over last 3 months. Finally it was accepted last month. Our reputation as inves-tor-friendly state will suffer if we delay things like this,” Naresh added.