Calcutta, Feb. 13: The Bengal government is trying to persuade Infosys to accept "lasting benefits" that "will match sops provided by other states" and drop the demand for special economic zone status to its Rajarhat project.
"We can guarantee them lasting benefits. If they let us know the benefits other states are providing them already, we will match them.… But they should not press for the status of a special economic zone," industries minister Partha Chatterjee told The Telegraph tonight.
Chatterjee was replying to a question on a formal communication from the IT giant seeking help to secure the special status for the Rajarhat project.
In a letter that reached the Hidco headquarters yesterday, Infosys told the state government that it had already applied for SEZ status from the Centre but it also needed the state's support to secure the label.
Industries minister Chatterjee met Mamata Banerjee today to discuss the Infosys appeal. His comments hours after the meeting suggest Mamata has not budged from her known aversion to SEZs, which she sees as a means to grab land and bypass labour laws that protect the rights of employees.
"We cannot let any software company treat its professionals like labourers. We can't allow (a) hire-and-fire (policy)," Chatterjee said tonight. "But we will consider relaxing the FAR (floor area ratio) norms for their building if they want."
FAR is the ratio of the total floor area of a building to the size of the plot.
On a visit to Calcutta two days ago, Infosys chairman emeritus N.R. Narayana Murthy had said: "We are waiting for the state (Bengal) government to fulfil certain conditions."
"If Infosys centres in other states are getting more benefits and the company's competitors are getting more benefits, then...," Narayana Murthy added but did not complete the sentence.
But Chatterjee said tonight: "The benefits of SEZ status will not last forever but we can guarantee them lasting benefits."
Although not too many companies are making fresh investments because of the downturn, those seeking SEZ status have a compulsion to speed up matters.
SEZs that begin operations after the Union finance ministry's proposed direct tax code comes into effect will not enjoy the tax benefits they now do. The timeline proposed in the direct tax code has set a deadline of March 2014 by when SEZs have to become operational to enjoy the existing benefits.
In an SEZ now, a company gets considerable tax benefits, if over 75 per cent of its products or services are for export. Since most of Infosys's clients are based abroad, it should not have a problem on that front.
A company can directly seek SEZ status from the Centre, but Delhi is unlikely to clear the proposal without the state's approval. That is why Infosys had sought the state's help in the letter to Hidco, the state agency developing Rajarhat where the software company has bought 50 acres for Rs 75 crore.
Minister Chatterjee said the government had already done a lot to pave the way for Bengal's first Infosys project. "We gave them a discount on the land price. We overcame protests and built a road to their plot. We have promised them all infrastructure support. Now, it is up to them to invest," Chatterjee said.
2 comments