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About STPI Kolkata

Established on 5th June 1991, Software Technology Parks of India (STPI), an autonomous society under the Ministry of Electronics Information Technology (MeitY), Government of India, has since emerged as the growth driver of Indian IT/ITeS/ESDM industry. With a mandate to promote software and electronic hardware exports from the country by implementing Software Technology Park (STP) Electronic Hardware Technology Park (EHTP) Schemes, STPI pioneered the ease of doing business for policy governance in India by building a robust ecosystem to provide single window clearance services, world-class internet connectivity, state-of-the-art incubation facilities and other infrastructure services to encourage, promote and boost software exports.

STPI-Kolkata is the main center in West Bengal, having four sub-centres located at Durgapur, Siliguri, Haldia, Kharagpur. Based out in the City of Joy Kolkata, a major IT cluster in Bengal with presence of 200-plus IT/ITeS/ESDM companies, STPI-Kolkata has been the backbone for the growth of software and hardware industry in West Bengal since last two decades and has enabled Kolkata to emerge as the largest IT clusters in Eastern India.

STPI-Kolkata has earmarked the growth of software exports from the West Bengal region and generated employment and entrepreneurial opportunities by buoying the economic progress of the nation. In FY 2019-20, STPI-registered units under STPI-Kolkata contributed Rs. 7,120 core software exports.

Emergence of Software Policy

The first Computer Policy of 1984 and Software Policy of 1986 emphasized the concept of software development and export through data communication links. This policy's objective was to develop software in India using Indian expertise on sophisticated computers, which were being imported duty free. This way, one could make use of the low-cost expertise available in India and avoid the expense of time and cost in traveling abroad.

However, there was a substantial cost involved in the data communication links. As per the policy, companies were allowed to establish data communication links by their own initial investments. The ownership of the equipment and the operations of the same Gateway would remain with VSNL and VSNL would pay back to the user over a prescribed period after deducting the operational maintenance costs.

This used to be as high as Rs. 45.00 lakhs per 64 Kbps for an Indian half circuit per year.

Except Texas Instruments, no other company succeeded in establishing a similar facility. It was very expensive for smaller companies and other offshore development users to afford the high cost of the data communication.

Further, an Officer from the Dept. of Electronics, Govt. of India was posted at Texas Instruments to monitor the data using the protocol analyser before issuing necessary certification. There were many hardships that Texas Instruments had to encounter and circumvent by liaisoning with DoT, Ministry of Commerce and the Dept of Electronics, to make sure that the concept of offshore development could be made a success.

In fact, when the Govt. announced the first Software Policy in 1986, many such issues were addressed.

The Beginning of STPI-Kolkata

STPI's role began in the government's shadow and it was more of an entrepreneurial role of working directly with software companies and working like a corporate. However, this did not mean that STPI functioned like a typical government department. The role of STPI was more of a service provider that could be leveraged by software companies. Therein emerged three important factors that gave the necessary impetus to the concept. These were the newness of the business model, Internet infrastructure facilities and the government interface; all these brought a positive response from industry, especially the SME sector, which needed this support for their business to grow.

The concept of STP Scheme was evolved in 1991 and enunciated the following objectives:

• To establish and manage infrastructure resources such as Data Communication facilities, Core Computer facilities, Built-up space and other common amenities.
• To provide 'single window' statutory services such as Project approvals, import certification software valuation and certification of exports for software exporters.
• To promote development and export of software services through technology assessments, market analyses, market segmentation and marketing support.
• To train professionals and to encourage design and development in the field of software technology and software engineering.

In 1990, the STPI’s were established through three separate autonomous societies at Pune, Bengaluru and Bhubaneswar, which were later, merged in June 1991 into a single autonomous society and in quick succession STPI’s at Noida, Gandhi Nagar, Hyderabad and Thiruvananthapuram were established. All STPI’s were equipped with dedicated earth station equipment for providing Data Communication links.

The erstwhile Department of Electronics, Govt. of India with the support of World Bank had carried out a study on the opportunities presented by the Global IT Industry. This study identified the factors that are very essential for the growth of the Software Industry and also compared the potential of the countries competing in the Global Market. Some of the factors which needed improvement were clearly identified from the study and STPI focused in improving those factors.

International Communication is one such factor which needed much attention and India was factored -2 as against +8 factored to Ireland. This is one of the primary reasons why STPI took up the responsibility of providing the International Data Communication facilities exclusively for the Software Export Industry.

The success of STPI was not limited to the capital cities alone with STPI spreading it's wings to secondary cities like Durgapur, Siliguri, Kharagpur and Haldia in West Bengal and has, at the last count, spread to as many as 21 cities in a short span of 2 years.

The Growth Booster

The Role of STPI in the growth of the IT industry has been tremendous, especially in the case of start-up SMEs.

STP Scheme

The STP scheme is a 100 percent export-oriented scheme for the development and export of computer software, including export of professional services using communication links or physical-media.
This scheme is unique in its nature as it focuses on one product/sector, i.e., computer software. The scheme integrates the government concept of 100 percent Export Oriented Units (EOUs) and Export Processing Zones (EPZs) and the concept of Science Parks/Technology Parks, as operating elsewhere in the world.

"The unique feature of the STP scheme is the provisioning of single-point contact services for member units, enabling them to conduct exports operations at a pace commensurate with international practices"

Scheme Benefits & Highlights

• Approvals are given under single window clearance scheme.
• A company can set up STP unit anywhere in India.
• Jurisdictional STPI authorities’ clear projects costing less than Rs.100 million with Indian Investment.
• 100% Foreign Equity is permitted.
• All the imports of Hardware & Software in the STP units are completely duty free, import of second-hand capital goods also permitted.
• Re-Export of capital goods is also permitted.
• Simplified Minimum Export Performance norms i.e., "Positive Net Foreign Exchange Earnings"
• Use of computer system for commercial training purposes is permissible subject to the condition that no computer terminals are installed outside the STP premises.
• The sales in the Domestic Tariff Area (DTA) shall be permissible up to 50% of the export in value terms.
• STP units are exempted from payment of corporate income tax up to 2011.
• The capital goods purchased from the Domestic Tariff Area (DTA) are entitled for benefits like exemption of excise Duty & reimbursement of Central Sales Tax (CST).
• Capital invested by Foreign Entrepreneurs, Know-How Fees, Royalty, Dividend etc., can be freely repatriated after payment of Income Taxes due on them, if any.
• The items like computers and computers peripherals can be donated to recognized non-commercial educational institutions, registered charitable hospitals, public libraries, public funded research and development establishments, organizations of Govt. of India, or Govt. of a State or Union Territory without payment of any duties after two years of their import.
• 100% Depreciation on Capital Goods over a period of five years.

EHTP Scheme

Units undertaking to export their entire production of goods and services may be set up under the Electronic Hardware Technology Park (EHTP) Scheme. Such units may be engaged in manufacture and services.

Commensurate with the policy to give a special thrust to export of electronic hardware, such units would be encouraged to be set up under the aforementioned export-oriented scheme.

Scheme Benefits and Highlights

• EHTP unit may import free of duty all types of goods, including capital goods as defined in the EXIM Policy, required by it for manufacture, services, production and processing or in connection therewith.
• The units shall also be permitted to import goods, including capital goods, free of cost or on loan from clients required for the approved activity.
• EHTP units may procure goods required by them for manufacture, services, production and processing or in connection therewith, duty free, from bonded warehouses in the DTA set up under the Exim Policy.
• Positive Net Foreign Exchange Earnings against Export Earnings to be achieved over a period of five years.

With STPI presence, orderly implementation of STP Scheme and the Govt. initiatives, in general, the offshore software exports from the country during 1991-92, which was mere 20-35% has grown to more than 70% during 2009-10.

In fact, countries like Mauritius, Sri Lanka, Nepal, Algeria, Indonesia, etc. are taking the help of STPI to set up similar technology parks with the same concept.

STPI Centres: The Harbinger of Dispersal of IT/ITeS Industry into Tier-II/III Cities

The evolution of industrial clusters is considered to increase the efficiency of companies making them competitive both nationally and internationally. The presence of these clusters working together in India especially concentrated around Bangalore, Noida, Mumbai, Chennai, Hyderabad and Pune, testifies that a technological revolution had taken place, somewhat identical to global technology clusters like Silicon Valley, Boston, Dallas, Ireland, Sweden and Tokyo. Although STPI centres have pan-India presence with 62 locations of which 54 centres are in Tier – II/III cities, its major focus has been around these prominent cluster regions only.

STPI made its presence felt by the implementation of STP/EHTP schemes and other Govt. initiatives, resulting in the remarkable growth of offshore software exports from the country. With few million dollars exports in 1991-92, STPI has completely transformed the software exports narratives in the world. During 2018-19, the $177 billion Indian IT industry proudly exports $136 billion and STPI units particularly contribute around $60 billion.

Quality Objective

• To provide statutory and other promotional services to the exporters by implementing Software Technology Parks (STP)/ Electronics and Hardware Technology Parks (EHTP) Schemes and other such schemes which may be formulated and entrusted by the Government from time to time.
• To promote micro, small and medium entrepreneurs by creating conducive environment for entrepreneurship in the field of IT/ITES.
• To provide data communication services including value added services to IT / IT enabled Services (ITES) related industries.
• To promote the development and export of software and software services including Information Technology (IT) enabled services/ Bio-IT.
• To fulfill the customer requirements by providing comprehensive quality in its services by ensuring continuous availability of its IT Services and continually work towards improving the performance of its Services.

SoftLink – Internet Leased Line:STPI-Kharagpur offers high-speed Premium Internet Leased Line Service at competitive rates. This service is being offered to fulfill the needs of the IT industry dedicated Internet access with security, quality and reliability. 

Being a Category 'A’ Internet Service Provider (ISP), STPI is peering with Tier-1 Service Providers and Offers Carrier Neutral Service.

Service and Benefits:

• Network Redundancy at all levels (ie., last mile, router, switch and connectivity to Internet gateway on transmission level).
• Robust Network with Multi-homed Gateway.
• Traffic monitoring with comprehensive Network Management System (NMS).
• 24*7*365 technical support, handled by well-qualified technical team.
• Online bandwidth statistics to monitor the usage and enable customer to forecast future requirements.
• Service Level Agreement (SLA) uptime of more than 99.5%.
• Bandwidth on Demand (BoD) service for the existing Internet Leased Line Service customers.

Last Mile Connectivity (Local Loop):At STPI-Kharagpur we provide last mile connectivity to our customers on radio as well on  fiber & copper .

Infrastructure at STPI Kolkata:

STPI Kolkata has state-of-the-art Incubation Facility to encourage Small and Medium scale Enterprises (SMEs) to promote and motivate entrepreneurs in the field of IT/ITES in this region. STPI-Kolkata houses the first of its kind 'Incubation Center' designed for startup companies furnished infrastructure.

Facilities available at STPI-Kolkata Incubation Centre

• Plug-n-Play seats available
• 24 hour high speed leased line connectivity
• Switched Local Area Network
• Fully air-conditioned rooms
• Telephone facility.
• Fax, printer, photocopier facility
• Fully air-conditioned
• Independent UPS of adequate capacity
• Meeting & Conference room of 6-seater capacity
• 24 hours security
• 24 hour CCTV surveillance
• E-mail / Web Hosting service, on request
• Co-location of server at network operation center, on request
• VAS service on request
• Mentorship to startups if required.

Present Office:

Future upcoming STPI Kolkata office and Incubation Center at Kolkata: