'We'll continue to support IT'

Sops soon for IT ventures in tier-II cities like Vizag, Vijayawada, Warangal & Tirupati

Chief minister Y S Rajasekhara Reddy has announced that the state government would soon announce special incentives for the IT companies setting up their operations in tier-II cities like Visakhapatnam, Vijayawada, Warangal and Tirupati.

In this regard, he specially commended the efforts of HSBC in setting up a BPO facility in Visakhapatnam.

Reddy made the announcement at an interactive meeting with the IT industry that was convened by the National Association of Software and Services Companies (Nasscom).

The chief minister was seeking to allay the concerns of IT industry over the continuance of the state government's support. In doing so, he went one step further than the former IT-savvy chief minister, N Chandrababu Naidu, in wooing the IT sector.

Largely perceived as pro-farmer, Rajasekhara Reddy said: "My government is aware that the IT industry is worried about continuing to receive help from the state government. We will extend all support and announce special incentive for the growth of IT and ITES in Andhra Pradesh. We assure to offer better sops and support than any other state government in India or any country abroad."

"Because we have placed thrust on pro-active government assistance for rural economy, it does not mean that we will ignore the other sectors. As the state has already made a mark for itself in the IT sector, we will continue to tap the immense potential of IT/ITES for creation of jobs and wealth," he said amidst applause.

Taking note that the software exports from Andhra Pradesh had touched Rs 5,025 crore in 2003-04, the chief minister, however, said that the government was not really happy with the achievement.

"Andhra Pradesh is at the fifth position in terms of exports. We would like the IT industry in state to make further progress and enable the state to rank second or third in the next couple of years," Rajasekhara Reddy exhorted the IT industry.

To a query from the audience on support for the hardware sector, the chief minister said that the government was aware of the little progress made by the hardware companies and sought recommendations from the Nasscom meeting to expedite the progress of the hardware sector.

The chief minister also assured that the government would strive to create better infrastructural facilities. It would also facilitate better air connectivity to both domestic and foreign destinations.

The state government would hold the fourth Gitex Hyderabad, an IT fair, on January 12-14, 2005, he announced on the occasion. Later, he was closeted with the senior officials of HSBC, Wipro, Norwest Venture Partners and Deloitte.

Earlier, Nasscom president Kiran Karnik said in his welcome address that Andhra Pradesh had become an attractive IT destination in the country.

"The outlook on the state is positive. However, the state government needs to address certain issues like infrastructure and human resources," he said.

The state government should further improve the infrastructure like state-of-the-art IT parks, roads, airports, mass-transit system and uninterrupted power supply.

It should also focus on e-governance and ensure low-cost financing for ITES-BPO units, he said.