STP Scheme

In the emerging global economy, Information Technology is the largest, fastest growing and most profitable industry across the globe. Identifying IT as the future for India and its vast potential, the Government announced a software policy in the year 1986 making “Software, Exports, Development & Training” as a major thrust area for which the Government formulated the STP Scheme covering aspects like simplifications and rationalisation of procedures. The Government of India established and registered STPI as an Autonomous Society under the Department of Electronics (Now Ministry of Information Technology) on 5th June 1991 with an objective to implement the STP Scheme, set-up and manage infrastructural facilities and provide other services including professional training.

The Software Technology Park Scheme (under The Ministry of Communication and Information Technology, Govt. of India) is a 100% Export Oriented Scheme for undertaking Software Development/IT enabled services for Export using Data Communication links or in the form of physical exports including export of professional services for rendering consultancy services and development of software.

A Software Technology Park may be set up by the Central Government, State Government, Public or Private Sector undertakings or any combination thereof. An STP may be an individual unit by itself or it may be one of such units located in an area designated as STP Complex by the Ministry of Communication and Information Technology.

Benefits of STP Scheme

  • Income Tax Holiday as per section 10A of the IT Act
  • 100% Customs duty exemption on imports
  • Equipment can also be imported on loan or lease basis
  • All relevant equipment/goods including second hand equipment can be imported (except prohibited items)
  • 100% excise duty exemption on indigenous procurement
  • Central Sales Tax reimbursement on indigenous purchases
  • Green card enabling priority treatment for Government clearances / other services
  • 100% foreign equity investment in the companies permissible under the 'Automatic Route' of RBI