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No infrastructure woes, AP promises industry

Our Bureau

Bangalore , Oct. 27

THE Andhra Pradesh Government is ensuring infrastructure will not cause concern to IT companies planning to set up centres in the State. "We are planning ahead. An exclusive department has been set up to take care of infrastructure facilities," said Dr C.S. Rao, IT Advisor to the AP Government, while speaking to newspersons at BangaloreIT.in.

At Hyderabad, 1,200 acres near the new international airport have been allotted to develop software product specific zones, and 200 acres for hardware zones. The AP Government has sought the services of Mr B.V. Naidu, Director of Software Technology Parks of India (STPI), Bangalore. Network infrastructure is also being given due attention. The State has begun the AP Broadband Network initiative to bring broadband to the rural masses. Dr Rao said that it would cover mandals, panchayats and reach villages as a 2MB connection.

The State is promoting Tier II cities such as Vishakapatnam, Vijayawada, Tirupati and Warangal. TCS, Satyam, HSBC and Wipro are setting up establishments in Visakhapatnam, and 14 more ICT firms have been allotted 59 acres of land. Sharp is setting up a software development centre at Tirupati, along with Rising Soft and Tele DNA. Two non-resident Indians (NRIs) are also setting up offices at their hometown Warangal.

The Government is also offering a subsidy to the first five IT/ITES companies employing more than 250 employees in IT or 500 employees in Tier II cities. Also, recruitment assistance worth Rs 15 lakh will be offered.

Ms K. Ratna Prabha, IT Secretary to AP Government, said, "They will be given a 25 per cent rebate on power tariff for first three years of operations and exemption from statutory power cuts." Restructuring of syllabus and orientation courses for lecturers in consultation with the IT industry will be carried out, Ms Ratna Prabha said.

The State aims to achieve Rs 69,000 crore by 2009, in IT exports, and seeks to create employment for three lakh employees directly. At present, exports are growing at 40 per cent and turnover is around Rs 4,000 crore.

"We are not trying to compete with Karnataka. We know our share of the exports and are positive about it," added Dr Rao.

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