Kochi: The Kerala government plans to extend the rent concession that was given to companies in IT parks during the COVID lockdown.
The IT department has recommended a three-month rental rebate for the first 10,000 square feet for companies that have taken up an area of up to 25,000 square feet. The rent for the remaining 15,000 square feet will remain unchanged.
Companies with more than 800 employees will also get the benefit. But big companies that have taken over 25,000 square feet will get no concession.
The government had earlier, during the COVID lockdown, waived three months’ rent for small companies that have taken up an area of up to 10,000 square feet.
Due to the concession, the rent that the government got from the IT parks has come down by Rs 28 crore per month.
A spokesperson for the IT department said the relaxation was being offered in view of the cash flow problems being faced by the companies as the economic crisis caused by COVID continues and also due to techies working from home.
For companies that plan to make new investments in the IT parks, the concession given on the first three months’ rent will continue.
IT companies queuing up
Despite the six months lockdown caused by COVID, there doesn’t seem to be any slowdown in the IT sector in the state. There are 51 companies waiting to get space at Infopark and three times as many companies waiting for offices in Technopark.
Also, every day, there are enquiries by new companies.
The government plans to provide space for leading companies in the building being built at Technocity with an area of 2 lakh sq ft whose construction will be completed by December.
There is space in the Jyothirmaya building at Infopark and in Lulu's new building for new companies.
A company called Mixogo has taken an additional 10,000 square feet and is furnishing the space.
Inspired, a Nasdaq-listed American company that has taken a 17,000 sq ft facility for 150 people, started its operations during the lockdown.
