IT report may be delayed

The working group is scheduled to hold its first meeting on August 10 to chalk out a strategy for hardware segment’s growth.

Meanwhile, the co-chairman of the task force, MGK Menon, on Friday urged the government to set up an institutional mechanism to ensure implementation of its recommendations.

Speaking to the press here after delivering the keynote address on the MAIT annual day, Menon suggested that if necessary, the ambit of the Task Force should be expanded to oversee implementation aspects as well. Stressing on the need for balanced growth of the IT sector, Menon said thegovernment’s IT policy was software oriented and neglected hardware growth. Pointing out that much of the Indian software exports was low-grade and low-value, he called for boosting the quality of exports to move up the value chain so that it could become on par with international standards.

Lamenting the government’s lack of initiative, Menon added that red-tapism and government interference was hurting the development of the hardware sector and that a hard look needed to be taken at removing these.

The scope of domestic tariff area (DTA) also needed to be expanded further. The products made in the Electronic Hardware Technology Parks (EHTP) should be allowed to be sold in the domestic market, he felt.

Meanwhile, Mait has proposed the adoption of a twin strategy of an IT Plex/IT design concept based on the successful Singapore, China and Philippines models of setting up manufacturing bases to serve both domestic and export markets.

The IT Plex concept includes a hassle-free infrastructure whichhouses a fully empowered government representative to handle statutory issues and electronic self-assessment customs clearance.

The twin strategy will increase the inflow of foreign investment by at least $500 million and achieve exports worth $15 billion in addition to creating employment opportunities for over 15 lakh people by the year 2005, Mait said. Mait also announced the election of Ram N Agarwal of Wipro Peripherals as its new president and Hemant Bharat Ram, Managing director, DCM Data Systems as the vice-president for 1998-99.