Infra hurdles freeze progress of Punjab's IT sector

The Mohali information technology (IT) park near here has become the cynosure of the sector in the state since the Chandigarh airport was upgraded to be an international one. However, the delay in construction, among other issues, has affected the plans of IT companies which were allocated land and given the possession letters last year.

The comparison between Chandigarh and Mohali becomes inevitable as both kick-started the creation of an IT landscape simultaneously about 10 years ago. Software exports from Chandigarh are pegged at Rs 2,314 crore and Mohali at a modest Rs 253.14 crore.

Infosys, anchor company at Chandigarh Technology Park, would remain the anchor at the 400-acre Mohali IT Park as well. Infosys plans to invest Rs 1,000 crore over 50 acres and generate 25,000 jobs for software professionals.

 

Punjab government officials said 30 companies were allocated land in the Mohali park. These included Infosys and HDFC Bank. The latter will consolidate its IT operations for north India at the Mohali facility. A tentative investment of Rs 1,800 crore would be mobilised by these companies.

Small companies operating out of rented premises complain the project cost has been escalating every passing day. Harshvir Singh, director of Drish Infotech, a software exporter, said he was provided the possession letter in February 2014. Plots have not been demarcated and basic civic amenities not laid out. "I have been sent reminders by Greater Mohali Area Development Authority to take possession. As I cannot identify the plot, I am unable to take possession. We have been given half an acre and many small companies of our size with limited means want to shift at the earliest."

Punjab IT sector's journey has not been smooth. Many players have gone back on their commitments after making big promises. The consolidation of operations of Dell at Hyderabad by closing its Mohali office had made a significant dent on software exports from Punjab.

Officials said they were trying to set up infrastructure at the Mohali IT Park in three months. A lot of 10 acres has been reserved for developing a shopping mall, which would be leased out later. The project plans to generate 35,000 jobs for software professionals.