Industry welcomes IT proposals

Among other things, the task force has also recommended setting up of a Rs 700 crore fund to tackle the Y2K problem in the government, 100 per cent depreciation on all information technology (IT) products in two years, issuance of sweat equity to employees, blanket approval for Indian IT companies to acquire foreign companies out of exports, and allowing cable operators toprovide Internet through their network without additional licences.

The task force has proposed a three-pronged initiative for the sector — accelerating of the setting up of IT infrastructure, creation of a policy ambience for increasing software exports to $50 billion by 2008 and extensive use of IT in all sections of the society. The report, that has 108 recommendations, was submitted to the Prime Minister on Saturday.

As regards the recommendation for 100 per cent depreciation on all IT products within two years, the chamber said this would give a critical push as the rate of obsolescence is pretty high in this sector.

Setting up of venture capital funds with a corpus of at least Rs 50 crore each for idea-rich IT entrepreneurs will provide thrust to the IT industry and give impetus to its development, the release said.