K'taka to revise IT policy for attracting global investment

To hold road shows in China, Taiwan, US later this year to woo investors

In an effort to regain its old glory and attract fresh investment in the information technology sector, Karnataka intends to revise the IT Policy. “We are stilly studying the current policy and revise it after discussing with the stakeholders and the industry,” S R Patil, minister for IT, BT and Science and Technology said.

The government aims to attract the global IT majors into the state and in this connection a road show will be held in China, Taiwan and United States among others, Patil told Business Standard.

He said, the government is also considering a move to offer an attractive incentive package besides land and infrastructure facilities to new investors in the state. As part of the efforts to increase the export of IT from the present Rs 1.35 lakh crore to Rs 4 lakh crore by 2020, the government has drawn up a detailed roadmap, he said.

“We have accepted the recommendations of the ICT Vision Group headed by T V Mohandas Pai, a former director of Infosys. We have decided to offer incentives to those willing to set up their campuses outside Bangalore. We have identified seven Tier-II cities to promote IT industry and start-up companies,” Patil said.

The department of IT, BT and S&T has identified Mangalore, Mysore, Hubli-Dharwad, Belgaum, and Gulbarga among others to promote the IT industry. The government has in its possession 2,000 acres in Belgaum and will acquire land in other cities, he said.

“Infosys has already shown interest in setting up campuses in Hubli and Belgaum. We have already given them 50 acres at Gamanagatti area in Hubli and we are ready to offer them another 50 acres in Belgaum to them. We are confident of attracting other companies into secondary cities. We are talking to many of them,” the minister said.

As recommended by the ICT Vision Group, the government has decided to develop incubation centres to help budding entrepreneurs at select engineering colleges across the state. The department will also revive the Rural BPO scheme to create employment in the rural areas.

He said, the Central government would very soon hand over the official consent letter to the state for setting up Information Technology Investment Region (ITIR) near Bangalore. “The final notification will be issued very soon to acquire 2,072 acres land in Devanahalli taluk for the ITIR project. We will also appoint project developers to develop the land in the second phase. The developers will acquire land on their own and the government will facilitate them,” he said.

Some of the big players like Infosys, Wipro, TCS, iGate and IBM among others have shown interest to set up their offices in the ITIR, he said, adding the project will see an investment of Rs 1.06 lakh crore once it is fully developed. The KIADB will raise Rs 1,000 crore loan to acquire land for this project.

During 2013-14, IT exports from Karnataka are set to cross Rs 1,50,000 crore, he added.