GTECH welcomes and appreciates the move of the Government for the deferrement of 50% of rent to the financial year 2010-11. However, considering the impact of the recession on the Knowledge Industry in Kerala, the move may not be of substantive help to the affected companies, as they would still have to provide for this rent, though this would help in cash flow management.
It is also not clear how this deferred rent would be recovered from the year 2010-11. A 12-installment recover would lead to a severe burden in the financial year 2010 – 2011. On the other hand, a 50 % rent waiver for the period of the recession would have brought the much-needed relief to the IT Industry. In addition, a waiver of the additional electricity charges for the 25% excess consumption over the previous year would also significantly benefited the IT Industry.
It is also not clear how this deferred rent would be recovered from the year 2010-11. A 12-installment recover would lead to a severe burden in the financial year 2010 – 2011. On the other hand, a 50 % rent waiver for the period of the recession would have brought the much-needed relief to the IT Industry. In addition, a waiver of the additional electricity charges for the 25% excess consumption over the previous year would also significantly benefited the IT Industry.
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