CM denies sop to Infosys
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Once bitten twice shy, the state government has den-ied sops to IT giant Infosys. Chief Minister N. Kiran Kumar Reddy rejected the request of Infosys twice to grant exemption from paying development fee for the expansion project at its maiden campus in city in the financial district.
Sources told this newspaper that the development fee works out to be around Rs5 crore. The ongoing CBI probe against state incentives to IT and industrial projects is said to have had impact on the government in taking decision against Infosys.
Infosys apparently came out with its expansion proposal in the vacant 50 acres in the financial district after the state’s move to take back unused land from industries and IT firms.
The APIIC which runs the Industrial Local Authority recommended to the government to exempt Infosys from paying the fee.
“The CM initially left it to the municipal administration department to decide on sops as per rules position,” sources said adding that the file was re-circulated for a second time.
Infosys is said to have argued that it was eligible for exemption from development fee as per the original MoU it entered with the state government during the previous TD regime.
The APIIC also backed Infosys, which already avai-led exemption for the first phase in the same campus.
The MAUD, however, insisted on payment of the fee. Sources said MAUD principal secretary B. Sambob opined that the previous sops were to encourage IT industry in the initial days of opening the state to global markets.
Based on the recommendation, the CM negated the proposal.
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