'Andhra's IT exports set to breach Rs 7,000-cr mark this fiscal'

Determined to replicate the states success in attracting IT investment to other priority sectors such as textiles manufacturing and food processing in the coming days, the state government recently constituted 'APInvest' "� a body under the Societies Act "� specifically to boost investments and speed up industrial growth in these areas.

This apart, the state government is not content with the current value of IT exports status from Andhra Pradesh, as compared to peers like Karnataka, Maharashtra or Tamil Nadu. The state government appointed C S Rao, as the IT advisor to the state government and the chief executive officer of the newly constituted APInvest.

Rao, who holds a post-graduate degree from the Indian Institute of Technology, Delhi, has also worked as the additional director at the Software Technology Parks of India at Bangalore and Hyderabad.

He had a short stint at Bangalore-based Indian software bellwether Infosys Technologies Limited, before joining as the chief executive officer at APInvest. Rao spoke to Business Standard on his plans to attract investments into the identified areas.

What are the broad areas of interest for APInvest?

APInvest is guided by the policy direction of the state government and it has identified eight sectors as key growth areas in Andhra Pradesh, namely, IT/ITeS, food processing, tourism, retail/real estate, education/health services, pharma/biotech, hitech manufacturing and textile/leather.

APInvest, which was conceptualised by the chief minister himself, will primarily help prospective investors to overcome procedural tangles and work as a single window clearance agency. We also act as a nodal agency for the promotion of industries. APInvest will work under the newly created Infrastructure department.

What are your immediate plans in this regard and which are the hot destinations for attracting investments to the state?

We will first identify potential investors and approach them with what the state can offer. We are in the process of appointing a couple of consultants to help us in this regard.

We are also looking for tie-ups with foreign associations for the necessary inputs. We have already made some headway as far as attracting new investments is concerned.

Some of the big companies, both in IT as well as other sectors, are expected to make an announcement on their future operations in the state very soon.

APInvest is planning to conduct road shows across the country and abroad over the investment potential and the availability of infrastructural and governmental support for new investments in Andhra Pradesh.

We are looking for prospective investors from the United States, Canada, Europe and the Middle East in that order. International air connectivity to Hyderabad has been fast increasing and this will help the state in attracting investments. Lufthansa will be introducing four flights a week between Hyderabad and Frankfurt from February 28, 2005.

What is the progress on attracting education related investments into Hyderabad and the state?

With the WTO coming into effect, several educational institutes across the globe, including some reputed universities like Georgia and Stanford have evinced interest in setting up their own campuses in the state.

Keeping in mind the overall quality standards of education, the state government has constituted a committee to formulate broad parameters for the same. The government will encourage good institutions to start their operations in the state. The committee is expected to give its report in a couple of months.

What about helping take the IT initiative to all parts of the state?

Besides pushing forward the initiatives such as e-governance, e-procurement, taking IT to villages in a more proactive manner, the state government has identified human resource development (HRD) as a key strategy for the all round development of the state.

At present only 1,000 schools are covered under IT education. Once the Andhra Pradesh broadband project is in place, IT education will be extended to all the one lakh schools from primary to secondary level. The state IT department has made arrangements to provide content, from first to tenth class, to all pupils free of cost through the broadband network.

The broadband network will also enable the government to set up the proposed e-panchayats (on the lines of e-Seva centres) in all the villages, which will offer both utility services and agriculture related information.

What are the state's immediate goals in the IT sector?

We are aiming to take Andhra Pradesh to third place in the country in terms of IT exports in the next three years. The state government has drawn up plans to facilitate this kind of growth.

Future prospects appear to be very bright for the state in this regard. The government is planning to set up 22 satellite townships on the proposed 160-kilometre outer ring road around Hyderabad, out of which four townships would be exclusively created for the IT industry.

We expect that IT exports from Andhra Pradesh this year will be between Rs 7,000 crore and Rs 7,500 crore as compared to Rs 5,025 crore in the previous financial year.