Developers may get to buy back built-up space in STPI

Art with speakersThe department of industrial policy and promotion is considering a proposal to allow real estate developers to buyback built-up area sold in software technology parks of India (STPI) units and lease out it to other businesses.

The issue came up in the last meeting of foreign exchange promotion board (FIPB), when the board took up real estate company Information Technology Park’s request for a clarification whether it could buyback built-up space constructed by ITP itself and lease out the same to other businesses. The company has set up an information technology park under the industrial park policy.
The STPI policy entails exemption from income-tax for IT companies for a decade for setting up IT units. The tax benefits are expiring next year. There are around 6,000 IT units across the country registered under the STPI scheme.

The company has informed the board that as the STPI benefits would expire in a year, most of these units are not expanding and consolidating in SEZs and hence, these units have offered to the company to buyback the built up space sold by the company to them. The company has now sought clearance from the board whether it could buy back the built-up space and lease out to other business units.

One Comment

  1. Posted April 20, 2009 at 12:38 am | Permalink

    Hmmmmm… interesting.. but what would the board decide?

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