The government is working out a new scheme to provide fresh incentives to information technology (IT) companies following demands from the industry.
The decision comes after the income tax benefits to new IT companies set up under the Software Technology Parks of India (STPI) ended in 2011.
Speaking to reporters on Monday, Minister of State (Communications, Information Technology and Shipping) Milind Deora said the finance ministry was working this out.
"IT companies coming under the STPI will be eligible for this new incentive," he said.
STPI was set up in 1992. All IT companies established under it were given income tax benefits. After the scheme ended 2011, many IT companies from Kerala have been requesting for its extension.
"The central government will be considerate to the IT industry and for that, respective state governments will also have to play their parts by providing land to STPIs," added Deora.
Kerala IT exports recently crossed Rs 5,000 crore.
Deora pointed out he will be unable to do anything when companies from outside Kerala employ thousands in the state but the income they generate through Kerala operations is accounted for from the states the firms are headquartered in.
"Yes, I agree it is not fair for such type of accounting, but then we have no say in that. The best what can be done is such companies should make it public that they employ so many people outside their headquarters," the minister said.
STPI office in Thiruvananthapuram has now put up a demand for providing land for expanding operations in Kochi.