Covid-19: Big relief for MSMEs in IT/ITeS as govt waives off rent for units based in tech parks – The Financial Express

Technology for MSMEs: The government has decided to provide relief to IT/ITeS MSMEs and startups based in Software Technology Parks of India (STPI) amid Covid-19 crisis and lockdown. The Ministry of Electronics and Information Technology (MeitY) on Thursday said it will waive off payment of rentals for small IT units housed in STPI premises for a four-month period as of now between March 1, 2020, and June 30, 2020. SPTI, operating under Meity has 60 centres in India. “This will provide relief to “nearly 200 IT/ ITeS MSMEs, operating from these 60 STPI centers,” the ministry said in a statement. The total cost involved in waiving of these rentals by the government is likely to be around Rs 5 crore. The move is “also in the larger interest of around 3,000 IT/ ITeS employees who are directly supported by these units,” the ministry added.

MSMEs and small enterprises across sectors in India have been impacted due to the Coronavirus crisis as the government enforced lockdown last month. This lead to the shutting down of factories and other establishments during the period even as workforce dwindled due to the challenge in commuting to workplaces. Also, a large number of employees moved back to their hometowns to survive.

Meanwhile, MSME Minister Nitin Gadkari has urged small businesses to take consider the current crisis as an opportunity instead of a challenge. The minister on Wednesday has also urged the industry to attract investment as “some countries are looking to move away from their investments from China, and India can be one of the best options for them,” he had told representatives from industry association FICCI on Tuesday in a webinar.

Gadkari had last month raised concern over the government bodies delaying MSMEs payments for goods bought by as much as three-four months. “MSMEs are on the verge of collapse. Passing a legislation is easy…. There are 20,000-22,000 cases. As per my estimates, big industrialists, state government, central government undertakings owe Rs 5.5 lakh crore to Rs 6 lakh crore to small industries,” PTI had cited Gadkari as saying in the Rajya Sabha.

via Covid-19: Big relief for MSMEs in IT/ITeS as govt waives off rent for units based in tech parks – The Financial Express