Rent deferment for IT companies in Technopark and Infopark

IT sector is likely to be the worst hit in the global economic downturn which has also stifled the expansion of the IT sector, the state government has deferred the payment of 50 percent of the current year’s rent of firms operating in Government-owned IT parks to 2010-2011.

The government has issued an order regarding this on May 30 and directed the Chief Executive Officers (CEOs) of Technopark, Trivandrum and Infopark, Kochi to take necessary steps in connection with it. There are 159 companies working on rented space in Technopark while 50 firms operate in Infopark.

IT secretary Ajay Kumar told Express that for availing of this facility, companies had to enter into separate agreements with Technopark and Infopark stating that the deferred rent would be paid in the fiscal 2010-2011 itself and any delay would meet the interest rate.

The state government has taken this decision as per the demand of the firms and it will be a blessing for the companies in the present situation.“We are ready to support the companies for their successful operation in the state and will implement many schemes for the benefit of the firms. This move of the government will also help to attract many new IT companies for setting up their firms in government IT parks,’’ Ajay Kumar said.

“The deferred rent will be payable on April 1, 2010 and interest will be payable as per the prevailing terms for delayed payment. This facility will be available only for 2009-2010 as of now,’’ Ajay Kumar said. The government order also read that the companies should pay 50 percent of the gross billing to Technopark and Infopark and the tax liability should be met from the remaining 50 percent with them.

The companies are also instructed not to have any due payable to Technopark and Infopark on the date of giving option for the deferment.

The option for rent deferment should not be across the board. The benefit should be only on opt-in basis

source: expressbuzz