Bengal Housing, Nanjing Hitech Zone in pact

Bengal Peerless Housing Development Corporation Ltd (BPHDCL) has signed an agreement with the Nanjing Hitech Zone (NHZ) whereby Indian information technology companies can set up shop in NHZ free of cost and will be exempted from rent and taxes for two years.

Through this agreement, BPHDCL also expects to attract Chinese foreign direct investment to the tune of $32 million by way of developing the Nanjing Bengal Peerless Hitech Zone (NBPHZ) in Rajarhat.

Bengal Peerless has been allotted 2.20 lakh square feet of built-up space in NHZ to set up the Bengal Peerless Nanjing Hitech Zone (BPNHZ). BPHDCL will be developing a centre of excellence in this zone, besides providing space for Indian companies to set up shop.

According to KS Bagchi, managing director of Bengal Peerless, the zone in Nanjing would ideally have around 20 small and medium IT companies.

Bengal Peerless will be developing the infrastructure for the centre in Kolkata on a 50-50 cost sharing basis. NHZ has agreed to invest $18 million and Chinese multi-base company Sunwoh has sent a letter of intent to pay another $20 million for setting up the complex in Kolkata.

The hitech zone in Kolkata will be spread over an area of 12 acres with 600,000 square feet of built-up area. Bengal Peerless would invest in the development of 300,000 square feet. The land has not been assigned for the project yet.

Construction is expected to begin by March 2007 with space orientation provided by NHZ. The companies would be selected by a committee that would be set up with the assistance of the information technology minister of West Bengal, Debesh Das.

"We will have to look at developing basic infrastructure like healthcare facility, hotel and service apartments for roughly 470 Chinese employees who will work at the NBPHZ in Kolkata. However, we will have to take the consent of the ministry of housing and infrastructure before we can proceed with such a venture," said Bagchi.

The companies would be selected by a committee that would be set up with the assistance of the information technology minister of West Bengal, Debesh Das.

Das is also expected to assist Bengal Peerless in tying up with Jadavpur University and Indian Institute of Technology at Kharagpur to provide training for personnel to be deployed at the centre of excellence at the BPNHZ in Nanjing.

"The Chinese are not strong when it comes to software development. They, therefore, are inviting Indian software companies to operate from China to develop the software industry there. The centre of excellence in Nanjing will be used as a training centre for Chinese personnel in software development," said Bagchi.

English-language based business process outsourcing companies of China operating in the fields of biotechnology, nanotechnology and hardware are expected to start operating from Kolkata. Cheaper labour here and ready availability of English-speaking personnel have driven the Chinese investors to come to this decision, Bagchi said.

The agreement was signed on September 3, 2006, and would be valid for 11 years.

While the Chinese partners of the project has set up a committee to monitor project progress here, Bengal Peerless has decided to set revenue targets for the Indian companies operating out of the BPNHZ in Nanjing.