The Ministry of Commerce and Industry has decided to recommend an extension of two years or more of the hybrid working model of IT-ITeS units operating in SEZs beyond the end of the year, when the extension of one year granted last year will expire, sources said. .

The hybrid model allows IT-ITeS units to allow their employees to work from any location outside the SEZ as long as the unit physically operates within the zone.

“The Ministry of Trade and Industry is ready to extend the hybrid model for more than one year, or even two to five years. A decision has been made on this,” a source following the matter told Businessline.

The approval of the Directorate General of Export Promotion (DGEP), an arm of the Central Board of Indirect Taxes and Customs, will be sought for the extension, following which the Commerce Department will submit the required notification, added The source.

Industry body Nasscom had earlier recommended shifting from the work-from-home model to a hybrid model as this would ensure that SEZ units continue to operate from SEZs and real estate developers do not lose business. At the same time, units would also have the option to allow their workers to work outside the area, which would increase overall efficiency.

While the IT-ITeS industry wants to be allowed to continue the hybrid model in perpetuity, the government is not willing to offer this flexibility without an end date.

“Covid-19 has created a situation where employees have been forced to work from home. But that is long gone and IT companies like Amazon and TCS are emphasizing the importance of working in the office. The government understands that it may still take some time before all workers can start working from their offices and is prepared to allow the hybrid model for a longer period. But there seems no need to extend it perpetually,” the source said.