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Plea to include computer institutes in IT industry

NACT has submitted its recommendations on computer education and training to Y K Sharma, deputy director-general of National Infomatics Centre.

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Sharma is also member-secretary of the government's working group on IT, human resource development.

The recommendations called for exemption of institutes from income tax on par with other educational institutions.

NACT has also recommended conferring deemed export status on earnings received by the training institutes from foreign students.

The working group, constituted by the IT task force, participated in a discussion with NACT and other industry representatives on December 12.

The government is yet to include computer-training centres within the scope of IT services, thus denying them exemptions. Nationalised banks too do not fund these institutes.

"Once we get industry status, it will become easier for the computer-training institutes to avail of financial benefits granted to this sector. The key attainment of IT objectives lies in building a large human resource base of qualified professionals," says NACT President Suresh Bharwani.

With a profit margin of 10-20 per cent per year and a rapidly growing number of software, the institutes find it difficult every time they have to upgrade.

Operational costs are around Rs 4-5 million per year. The government has set a target of one computer for every 50 individuals by 2008.

- Compiled from the Indian media

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