STP Scheme

1. What is STP Scheme ?

2. What are the services provided by STPI under STP scheme?

3. What are the charges for STP registration?

4. Who can become a STP member and how?

5. What are the obligations on units under the STP Scheme?

6. What is the advantage of becoming a STP unit?

7. What is the Investment criteria?

8. What kind of investment is allowed?

9. Can I set up the operations in my own premises?

10.If we take some location on rental basis then can we change the location
subsequently?

11.What is the minimum time frame required to become a STP?

12.How many companies are exporting under the STP scheme?

13.What are the activities covered under the STP scheme?

14.Being a STP unit, can I do domestic project?

15.Is custom bonding of the STP unit mandatory?

16.Can we enhance our approved capital goods limit?

17.Can we change our company name after STP approval?

18.Can we change our STP location after approval?

19.Does STPI help in finding software professionals or else what are agencies
who can help?

20.What happens if a unit is unable to succeed after trying for a year or so?

21.Is it mandatory to get the company registered in India?

22.Can I convert equipment already imported on loan or free of cost into the
equity of the

company at a later date if required?

23.Can we take CST reimbursement as a STP unit?

24.Entities who can set up a unit?

IPLC
25.What is IPLC?

26.What can IPLC be used for?

27.IPLC in STPI noida?

28.What is OSS?

29.Does STPI NOIDA provide OSS?

BROADBAND INTERNET ACCESS

30.What is Broadband?

31.Why move to Broadband?

32.What types of broadband technologies are available?

33.Are some Broadband alternatives better than others?

34.Is Broadband suitable for my business?

35.What are the other types of connectivity alternatives to Broadband?

36.What are the main benefits of Broadband?

37.For what type of applications is Broadband suitable?

38.What are the main ways in which I can benefit from Broadband?

39.Who are the bandwidth backbone providers?

CUSTOMER CARE

40.Is there a provision of spares in case of failure of circuits?

41.What is the average time of fault recovery?

42.What is the Fault recovery mechanism at STPI NOIDA?

43.Is there a helpline, which one can call in case of circuit failure?

QUALITY OF SERVICE

44.Is STPI Noida ISO certified?

45.What are the provisions for ease of processing of customer requests?

46.Does STPI use any mechanism to monitor the bandwidth it takes from
international carriers?

47.What is the uptime?

 48.What is the level of commitment for the services STPI provides?

ANSWERS:

1 The Software Technology Park (STP) scheme is for providing facilities to IT industry for undertaking
software development and IT enabled services for 100% exports using data communication links in
the form of physical exports including export of professional services. Individual units can also be
allowed to do business in the domestic (Indian) market up to 50% of the exports. STP units can
also undertake commercial training. STP units also regulate the IT business through licensing,
acting as a link between the customer and Government authorities and agencies. Under the
scheme, IT industries are provided certain concession in duties, levies and taxes.
2 The major attraction of STP scheme is a single point contact service to the STP unit:
• Approval as a STP unit
• Approval for enhancement of capital goods
• Issuance of green card
• Guidance for custom bonding
• Certification of imports
• Certification of exports
• Permission for excise exemption
• Permission for DTA sales
• Permission for re-export
• No objection certificate for change of name
• No objection certificate for change of location
• CST reimbursement
3 Application processing fees and three years advance annual service charges considering your
projected export turnover.
Application processing fees :Rs. 2500.00
Service charges on the basis of projected exports :
Below Rs. 50 lakhs per annum Rs. 15000.00 per annum
Rs. 50 lakhs to Rs. 3 crores per annum Rs. 50000.00 per annum
Above Rs. 3 crores per annum Rs. 100000.00 per annum
4 Following can become a STP member :
• An Indian company
• A subsidiary of foreign company
• A branch office of foreign company
In order to become a certified member unit under STP scheme, approval from the competent
authority i.e. Director, STPI is required. Following documents are required for obtaining approval:
 Export Obligation
 Application in triplicate
 Project report
 Board resolution
 Memorandum or Articles of association
 Export order / contract or MOU
 List of Directors
 Importer - Exporter code number
 Proof of STP location premises ( e.g. Leave and licence)
 Valid data communication proof (e.g. Receipt of payment, service acceptance letter)
 Bank Certificate
After approval procedure, STP unit has to sign Export Obligation Agreement under STPI and
approach the Assistant Commissioner of Customs for bonding your office area under Section 58 &
65 of Customs Act 1962.
5 The obligations on units under the STP Scheme:
• The Development/production shall be carried on in customs bonded area.
• Regular renewal of customs bonding licence.
• Commencement of operations within the gestation period.
• Intimation to STPI about the commencement of operations.
• Fulfillment of obligations as per the Foriegn Trade Policy.
• Realisation of amounts due in stipulated period.
• For external borrowings, obtain permissions from Ministry of Finance.
• Maintain separate accounts for the operations of STP unit.
• Maintain prescribed records and documents.
• Obtain Export certification.
• Submit Monthly, Quarterly and Annual reports.
• Payment of duties on debonding of STP unit.
6 STP units can avail of following advantages under STP scheme :
• Custom duty exemption
• Excise duty exemption
• Central Sales Tax reimbursement
• Corporate tax exemption on 90% export turnover as per Section 10A of Income Tax Act.
• Sales in Domestic Tariff Area (DTA) upto 50% of the FOB value of exports permissible.
7 Only projects having a minimum investment of Rs. 1 crore in plant and machinery shall be
considered for establishment as EOUs under the scheme.
8 100% foreign direct investment, NRI-repatriable, NRI-non repatriable, resident holding and
combination thereof allowed.
9 Software industry being a non-polluting industry can be set up in any location. The STP unit can be
an individual unit by itself or it can be one such unit located in an area designated as STP complex.
10 Surely the location can be changed but with prior approval from STPI.
11 Depending on the pattern of investment the following time frame is involved:
Type of investment Authority for approval Time
100% resident holding and 100%
Director, STPI One Week
FDI under automatic route of RBI

12 There are 1200 plus units registered from Noida under the STP scheme.

13 The obligations on units under the STP Scheme:

• Development of IT Software/ Electronic Hardware for Exports.
• Rendering IT enabled services for software exports.
• Execution of Onsite Consultancy projects at customer site abroad.

14 Yes, STP unit can do the domestic business subject to 50% of foreign exchange earned with prior
permission of Director of STPI.
15 Yes, custom bonding of the STP unit is mandatory.

16 Yes, Director-STPI can approve the capital goods limit.

17 Yes, change of company name is possible after STP approval. Certificate from Registrar of
Companies needs to be submitted to STPI office.
18 Yes.
19 The STPI does not have an infrastructure to formally help the upcoming STP units. However,
through consultants and advertisement in newspapers the required kind of manpower can be
found.
20 The unit can cease to become STP member at any moment of time subject to payment of customs
and excise duty on the imported and indigenous equipments and the penalty imposed by the
appropriate authority under the Foreign Trade Regulatory Act 1992 for non-fulfillment of conditions
of approval.
21 Yes, it is mandatory to get the company registered in India with the Registrar of Companies under
the Companies Act 1956.

22 There is a provision by which with the approval of RBI the capital goods already imported can be
converted into the foreign equity of company.
23 Yes, CST reimbursement can be taken as a STP unit against 'C' Form only.

24 Entities who can set up a unit are :

 Central Government Undertaking.
 State Government Undertaking.
 State Industrial Development Investment Corporation.
 Cooperative Undertaking.
 Joint Sector Undertaking Joint Sector Undertaking.
 Assisted Sector Undertaking.
 Private Sector Undertaking.
 Individual Promoter/Partnership.
 Conversion from DTA Unit to STP.
 Conversion from EoU to STP.
25 An IPLC (international private leased circuit) is a point-to-point private line used by an organization
to communicate between offices that are geographically dispersed throughout the world.
International Private Leased Circuits (IPLC) are the basic building blocks for international
communications, providing raw bandwidth for global communications networks. These point-to-
point private line services are dedicated to the customer's exclusive use providing quality reliable
digital transmission seamlessly integrating data, voice and imaging services. A wide variety of
applications are supported by IPLC including internet access, LAN-to-LAN connectivity,
telemedicine, video and teleconferencing.
26 An IPLC can be used for Internet access, business data exchange, video conferencing, and any
other form of telecommunication. IPLCs enable customers with a global reach into over 200
countries to serve their international requirements supported by an extensive range of bandwidth
options underlined by a predictable cost structure
27 STPI NOIDA has IPLC bandwidth of 45 MB.Circuits can support data rates of E3 AND Above. Our
strategic alliances with global service providers make possible OSS for order and billing as well as
end-to-end link monitoring with a strong NMC.
28 In the past, an organization had to contact each carrier in each country to order the two circuits,
which included two separate invoices. OSS consolidates the billing for both circuits into a single
invoice, handles all currency issues, and allows the organization to report all problems from either
circuit to one carrier. To simplify IPLC ordering and billing, a concept called One Stop Shopping
(OSS) was developed. OSS allows an organization to place a single order with a single carrier for
two private leased circuits for two offices in two different countries.
OSS stands for One Stop Shopping, a concept developed to facilitate the provision of the IPLCs at
the most convenient and efficient way desired by the Industrial, Commercial and Governmental
organizations throughout the world.
IPLC OSS was designed to improve the efficiency of customers’ global operations while minimizing
their costs on planning, ordering, implementation, and bill payments.
Before OSS, a Global corporation requiring to establish a private leased circuit between two of its
offices in two different countries would place an order at both ends separately, wait for the two
carriers to tell them when the circuit would be ready and pay two separate invoices from the two
carriers. Now, OSS enables the customers to save their resources for use on their own business
while leaving the implementation of their telecommunication requirements to a single point of
contact at the Telecom Operator that they know and do business with all the time. In the global
business arena, the regional or global headquarters are able to plan, order and get their global
networks implemented through a single point of contact from their own countries. Issues related to
currency conversion and value added taxes are simplified through the process of One Stop
Shopping – Single End Billing.
Features available through OSS include include:
• Single-End Ordering: allows the customer to order both halves of a circuit through a single
carrier.
• Single-End Billing: consolidates the billing for both half circuits into a single invoice.
• Single-End Fault Reporting: allows the customer to report faults resulting from either half
circuit to the Coordinating Carrier

When entering an OSS arrangement for IPLC service, a customer chooses a carrier to serve as the
Coordinating Carrier for the OSS Services required. The Coordinating Carrier provides a range of
services to the customer which may include providing price quotations, prospective installation
dates, order forms, contracts, monthly invoices, and fault reporting. By consolidating service
through a single carrier, customers are able to manage services for both half circuits through a
single location. This is a key benefit to customers that provide management of global
telecommunications network through a single location. OSS eliminates the need for a customer's
distant-end remote locations to be responsible for signing contracts, ordering services, and paying
bills for in-country circuits.
Into many points in the Asia Pacific region including Australia, New Zealand, Indonesia, Japan,
China, Korea, and the Philippines.
29 Yes, STPI NOIDA provides OSS
30 Broadband is generally used to describe a high-speed Internet or data connection that is charged
at a flat fee. That is as soon as you turn on your computer, you are connected to the Internet.
Broadband presents you with major opportunities to manage your business cost-effectively. Not
only can you realise the benefits derived from improved access to the Internet but you can also
achieve significant cost-savings
31 Broadband is suitable for most businesses with the following requirements:
• You have increased your time online
• You need a high-speed connection
• You require a cost-effective solution

32 There are a number of types of broadband services available:

• Cable Modem Broadband
• Satellite Broadband
• Mobile
• Fixed Wireless (radio)
• Digital TV
• Fibre
• ADSL (Asymmetric Digital Subscriber Line)
• SDSL (Symmetric Digital Subscriber Line)
Each has their own features, benefits and drawbacks.

33 • Cable broadband: Low cost

• Satellite broadband: Costs are currently higher than ADSL but available nation-wide
• ADSL: Low cost, heavily contended but not widely available nationwide (60% coverage), no
service level guarantee
• SDSL: Low cost, moderately contended, available only in key areas of major metropolitans,
service level guarantee
• Leased lines: the most reliable of broadband connections with the advantage of nation-wide
availability. A dedicated line means there is no contention with other users. Costs are higher
than other broadband
34 No two businesses are alike but broadband fits most. Suitability and appropriateness of broadband
and connectivity solutions is less to do with the industry sector in which you operate or size of
business you have. It more depends on your usage patterns, service levels and performance
required and what applications you want to run. Call our sales team on marketing@noida.stpi.in
and they will be able to assess and match you with the most appropriate solution for your
business.
35 STPI provides a full portfolio of connectivity solution:
Superior connectivity (Wider broadband):
• Leased lines

36 There are three main benefits:

• Speed: High speed access to the Internet,
• Always-on access: Always-on connection, which means that once you switch on your
computer, you are connected to the Internet. Unlike dial-up, you won’t get a ‘busy’ signal
with ADSL.
• Fixed cost: Perhaps the greatest advantage is cost. You play a flat fee (monthly or annually)
and you get unlimited Internet use. There are no additional phone charges to worry about.
37 This type of service is great if you do a lot of Web surfing, view streaming videos or email large
documents.
38 Some of the things that broadband technologies will make easier include:
• Can help control costs – communication at a predictable cost, sending large documents and
files electronically, connecting remote workers at lower costs
• Can help increase revenues – gain new customers, maintain old customers, customer
services
• Transforms business processes – collaboration, sharing between offices, knowledge sharing
39 INTELSAT, SINGTEL, THAICOM, SWISS TELECOM, TELEGLOBE, MCI WORLDCOM, SPRINT, AT&T, BT,
CONCERT, PTT TELECOM.

40 Yes, a healthy ratio of spares (1:2) is maintained at all times at all POPS and NOC

41 Less than 2hours. One of our strengths is an extremely prompt and efficient fault recovery system
that ensures fail safe operations.
42 State of the art Fault recovery management system which is soon going to be integrated with
IVRS. Hot redundancy inbuilt at all points of failure.

43 Help desk is working round the clock with highly trained and experienced technical workforce. You
can call the following numbers:
91-120-2450411 (10 Lines) or e-mail your complaint to techstaff@noida.stpi.in
We have well defined escalation levels going up to Director. We believe in putting our customer
ahead of everything else.
44 STPI noida was the first to be ISO 9001:2000 certified for all its operations. The certification was
awarded in the year 1999 and was renewed in march 2002 for another three years.
45 * Account manager/single point of contact for customer –single window clearance
* Online/Web enabled Customer support -We have automated the application processing
sytem,this has led to a faster pace of clearing applications
For any queries regarding data communication services call: 91-120-2450411 extn
401/203/345 or email us at: marketing@noida.stpi.in
46 Yes, we use MRTG.

47 The average uptime for the last one year has been 99%. STPI has a proven track record of
excellent quality and reliable services. We have 24 hours manned pop at JNU and Gurgaon.
48 STPI has a comprehensive Service Level Agreement (SLA) covering uptime, latency and
throughput. It is a note stating our commitment to meet the promised level of uptime, throughput
and latency.