According to Nasscom's revised estimates, software exports for 2001 is pegged at $6.5 billion. Welcoming the move, Nasscom president Dewang Mehta said that by extending the tax holiday to old as well as new software units, the finance minister has removed the class differentiation. "This will help proliferate at least 25,000 new units in the next ten years," he said.

The proposal to extend Section 10A/10B of the I-T Act to IT-enabled services could translate to additional employment of 2 million jobs over the next ten years, Nasscom said.

Finance Minister's words were music to the ears of numerous software development companies which had missed the March deadline. Most felt the start-ups have got a fair deal. Echoing the sentiments, STPI director-general SN Jindal the move will help the country reach the target of $50 billion in software exports by 2010.

One industry player points out the move is also expected to put to rest speculation about some players selling off their permits at a premium. Welcoming the restoration of level playing field for new players, IT&T chief executive officer Hemant Kohli said," for any start-up every penny counts, the move will act as a breather for the new players." SDRC country manager Naresh Reddy noted that new companies will now not require to rush to get themselves listed.