Google, Amazon to go ahead with expansion plans in Hyderabad

Internet services company Google, global e-commerce major Amazon, global banking giant HSBC and others have decided to go ahead their expansion plans, which were stuck due to political uncertainty and issues relating to land allotment in Hyderabad.

With the formation of Telangana state ending the political uncertainty and the Telangana Rashtra Samithi (TRS) government keen to create investment-friendly atmosphere, the big firms have started working out their plans.

Information Technology Minister K. Tarakarama Rao Tuesday said the problems relating to allotment of land for Google would be sorted out soon.

Google plans to set up its own campus, which will be its first outside the US.

The state government in 2007 had allotted it 20 acres land at Kokapet but this ran into legal trouble. "The matter will be sorted out soon," the minister told reporters.

Last year, the then Congress government of united Andhra Pradesh had agreed to provide alternate land at Raidurg. It was immediately not clear if Google campus will come up at the original site or the one proposed last year.

The global search engine giant employs 3,000 employees at three locations in the city and plans to double the headcount in five years.

The minister said the problem with regard to land allotted for Amazon would also be sorted out soon. The retail giant was 10.57 acres of land at Nanakramguda in 2005 by the then government but the company could not begin construction due to legal hassles over the land.

The online retail giant plans to build a 1.6 million square feet facility, which will be its biggest facility outside its corporate headquarters in the US.

Amazon currently employs 4,000 people at its campus in the leased premises and intends to add 5,000 jobs at the proposed campus, which is expected to be completed by 2018.

Rao said HSBC was also working on plans for massive expansion in Hyderabad.

India's biggest IT services firm Tata Consultancy Service (TCS) is also expanding its presence in Hyderabad by building a new facility at Adibatla. This will provide 28,000 new jobs in three to five years. TCS already employs 26,000 people at four facilities in the city.

Rao said the government planned to develop Hyderabad as the topnotch IT destination in the country. It is working to develop small IT clusters around the city.

On Information Technology Investment Region (ITIR), which the central government already sanctioned for Hyderabad, he said he would meet union Communications and Information Technology Minister Ravi Shankar Prasad on Sep 15 to get clarity.

He said the mega project was estimated to bring an investment of over Rs.2 lakh crore in 15 to 20 years. It is expected to provide 15 lakh direct and 35 lakh indirect employment.

The government is also drawing plans to take the IT growth to tier-II cities like Warangal and Karimnagar.