The state government on Monday made it clear that it would not forward Infosys’ application to the Centre on granting IT SEZ (special economic zone) status to the company’s proposed facility at New Town-Rajarhat. Instead, the state government is working on alternative facilities for the IT major.
Infosys had written to the West Bengal Housing Infrastructure Develo-pment Corporation, which has allotted a 50-acre plot at New Town to the company, seeking the IT SEZ status. “We will not change our policy on SEZ. We will write to Infosys this week, informing that we will not forward its application to the Centre on granting the SEZ status to its proposed facility at New Town. However, we are working out alternative facilities for the company to compensate it,” state IT minister Partha Chatterjee said.
This announcement is virtually expected to lead the company to scrap its project in the state. Infosys has already made it clear that it wants SEZ status for its proposed facility. “The Infosys will not come here. In West Bengal, Wipro’s facility at Salt Lake Sector V, Bantala IT park and Unitech’s IT Park at New Town have got the IT SEZ status. If Infosys does not get the status, then the company will not set up its facility here as the company will be at disadvantageous position compared to its business rivals,” an IT industry expert said.
According to the Union government’s policy, an IT SEZ unit gets full exemption of customs duty and excise duty. It also gets 100 per cent exemption from corporate income tax for the first five years and 50 per cent exemption from the next 10 years. The state government, however, is against any SEZ due to the non-application of labour law over there as well as the acquisition of large swathe of land in the name of such units. Highly-placed sources in the state IT department said that the government would write to Centre, urging it to give all facility to Infosys.