 "Karnataka ASTRAC for tech-cluster in Dharwad")
ASTRAC will setup the technology cluster on a private bank of land spanning 200 acres situated close to IIT Dharwad and will invest close to Rs 500 crore. The project will not house large IT services companies, but instead those looking to carry out core R&D in India.
The company is targeting medium and large enterprises in the core technology, biotechnology and pharma spaces from China, South Korea, Japan, Finland, UK, etc which so far do not have a significant presence in India.
ASTRAC also hopes that the lure of great talent from IIT Dharwad will bring companies to setup base in the city. "We want to make sure that the IIT students stay here. We will also try to make these companies work with students in Dharwad," said Kishor Musale, chairman and MD of the ASTRAC Group.
The project which is expected to take off within a year will be aided by the Karnataka government in terms of providing water, uninterrupted power, drainage and improvement of roads in the area. Further, the government could extend support to foreign companies through subsidies and even financial aid if it feels compelled to.
Musale expects the project to bring a few billion dollars to the state's kitty over the next five years in terms of revenue, despite not employing a large number of people. "Employment won't be high, but the kind of investments these companies will make in R&D will be high," he said.
Apart from keeping a strict check on the type of companies that setup shop in Dharwad, the project could see a lot of tertiary industries coming up to support these large corporates. In addition, ASTRAC is in talks to invite international schools and also other amenities.
Further, the company has also approached the Karnataka government with the proposal of making available low-interest loans for foreign companies that might want be a part of the project through Chinese lenders.
