Indore IT Park mired in red tape

Bureaucratic hurdles, non-transparency in dealings and corruption have marred the privatisation process of Crystal IT Park in Indore. Even six months after awarding special economic zone status to the IT park, the MP government is yet to decide on the privatisation of the multi-storeyed building.

No software company has come forward to take a square foot of the park, even after one year of the completion of the building. The 550,000 square foot building bears a deserted look since its completion.

Reportedly, the state government is likely to face a legal battle for the building over its payment on construction. "We have submitted a proposal to the state government to seek permission to float tenders for attracting investment from IT companies," Vivek Agrawal, managing director, Indore Audyogik Kendra Vikas Nigam, told Business Standard.

Built with an investment of Rs 44 crore at prime locality of Bhanwarkuan near Indore University, even local IT companies have shown no interest in the park. Earlier, the state government had decided to rope in private players to market it.

Last year, the AKVN, nodal agency to put the IT Park onto market, had made efforts to join hands with Tata Consultancy Service (TCS), Wipro, SKIL, and Infosys. "We are looking for a private player to finish the common area of the park," Agrawal added.

An industry source who is closely monitoring the construction of the building informed that valuation of the building and a land area in the vicinity, which is nearly 23 acre, holds the key.

"It is under valued at Rs 60 crore. While the total cost of the IT park should be around Rs 150 crore. There were reports that the original design of the building of two stories at basement and eight stories above it has been altered to one (basement) plus nine thereby incurring additional expenses to the state," the source said.

With poor road, power and air-connectivity, the state offers no potential to software development. However, industry department and information technology department are more interested in lucrative business of infrastructure creation.

Recently, Shivraj Singh Chouhan, who visited Bangalore to woo investors under banner of Federation of Indian Chambers of Commerce and Industry (FICCI) came back home bare handed.

"Not even 12 people from top IT companies attended him," an industry source who was the part of delegation told Business Standard.

In name of IT park proposals, one at Bairagarh and the other at Anand Nagar locality, the state revenue department has raised land prices, giving a direct benefit to realtors.

The proposed IT park at Anand Nagar has failed to come up, while another park to be developed near Bairagarh airport, Bhopal, on 210 acre has yet to come out of drawing board.