Waive rent for smaller IT firms, says G-Tech

The Group of Technology Companies (G-Tech) has written to Chief Minister Pinarayi Vijayan demanding rent waiver from July to December 2020 for smaller IT companies occupying space up to 10,000 sq ft. The government had on February 17 announced a package of relief schemes to help IT companies tide over the COVID-19-induced crisis.

Major crisis

However, a subsequent order was issued later in which some of the promises were nullified, said the G-Tech officials.

โ€œWe would like to bring to your notice that the only relief measure in the GO was the extension of rent waiver of 10,000 sq ft for companies holding space up to 25,000 sq ft for April, May, and June of 2020. This was already announced by your office, six months ago soon after the onset of the pandemic. The industry that was relieved after your announcement is left with practically no support at all, contrary to the sentiment post your industry interaction on 16th which you personally did to understand the situation which smaller companies in particular are going through,โ€ said the letter.

Speaking to The Hindu, G-TECH Secretary Binu Jacob said the smaller companies in IT parks were facing a major crisis, and some were on the verge of moving out owing to the continuous cost pressure while some have left the space to optimise their costs.

Rising rates

He said the rent had gone up progressively by 5% annually, owing to which it was now on a par with or above that for IT companies in some metro cities.

โ€œThis will send out the wrong message to the industry and likewise companies leaving will bring down the revenues of the parks,โ€ the letter said.

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