IT sector likely to suffer revenue loss of Rs.4,500 cr.

Web Desk

The IT sector in Kerala will suffer loss of Rs.4,500 crore in the first three quarters of 2020-2021, according to estimates.

The Planning Board estimated that more than 26,000 direct and 80,000 indirect jobs will be lost. Even as the government helps in the recovery of IT enterprises, the job security of employees also needs to be looked at. The job loss situation should be avoided without over burdening various companies.
Accordingly, the government intends to take some measures to help these enterprises. Rent of up to 10,000 sq. ft of all companies with a total floor area of ​​25,000 sq.ft. will be waived for three months. The company can opt for this benefit in any three months in 2020-21. The government is also considering waiving annual increase in rent. It this is approved, there will be no increase in rent for 2021-22.

Various departments were instructed to immediately pay off any outstanding bills for IT projects completed by any company. The government will also negotiate with banks to provide additional credit to the troubled companies without working capital. 88 per cent of companies in the state’s IT parks have MSME registration.

As per the central government’s announcement, these MSME registered companies will be able to avail 20 per cent more of the existing loan without charge. Interest rates remain the same. The government will hold talks with banks for the maximum benefit of these companies.

Special consideration will be given for IT companies based in Kerala in granting projects in IT-based services required by various government departments after reviewing the policy document. with a view to give special considering for IT companies in Kerala.
All employees must comply with all COVID conditions stipulated by the government when they return to work according to the lockdown exemption. Maximum number of people should be allowed to remain in work-from-home mode.

Industrialists and industry experts see that Kerala has great potential in the areas of healthcare, education, IT and manufacturing. Kerala has already started the process of utilising it. The children of Kerala should have access to high quality education in the area of ​​education. It should also be able attract those in foreign lands. The Chief Minister said that the government is planning to restructure the higher education sector with this objective.