Karnataka government’s ambitious proposal to develop an Information Technology Investment Region (ITIR) near Bangalore international airport is all set to become a reality. With the high-powered committee to screen the proposal at the Central government giving its approval for the state’s proposal, the state government is readying to float global tenders to select key project developers, a top government official said.
“The high-powered committee in the Centre has cleared our proposal ahead of Andhra Pradesh and Tamil Nadu, which had also mooted similar ITIR proposals. We are happy to that Karnataka will be the first state to get Central government approval to develop ITIR. Our proposal is likely to go before the Central cabinet for final approval very soon,” M N Vidyashankar, principal secretary, department of commerce and industries told Business Standard. He said the state government has appointed international consultancy firm, Deloitte to prepare the request for proposal (RFP) documents and would soon float tenders to appoint project developers. It has already prepared the detailed project report.
“A large number of real estate developers have shown interest to develop the ITIR and we would select the main developer very soon,” he said.
More than two years ago, the Karnataka government had proposed to develop ITIR to promote investment and augment exports and generate employment. To facilitate the setting up of ITIR, the state legislative assembly passed a bill in this regard, in July 2010. The proposed ITIR will be developed under the Karnataka Information Technology Investment Regions Act, 2010.
The ITIR will be a self-sustainable integrated investment region housing IT, ITeS and hardware parks, supported by residential townships, a mini airport, high-speed railway network, shopping malls, hospitals and educational institutions among others.
The ITIR is being developed in two phases spread over 10,212 acres, about 44 kms from Bangalore city and 14 kms from Bangalore international airport at Devanahalli. It is expected to attract an investment of over Rs 2 lakh crore. The state government would involve private sector for developing the infrastructure.
Over 55 software and hardware companies including leading names like Infosys, TCS and Wipro have already shown interest to establish their presence at the ITIR.
The ITIR will be spread over 2,200 acres in the first phase. The state government has already issued preliminary notification to acquire 2,080 acres near Devanahalli. A management board will govern the ITIR and the apex body on all matters related to the project would be the State Empowered Committee under the chairmanship of the chief minister. The government of India had published a policy resolution for setting up information technology investment regions on May 28, 2008 to promote investment in the IT, ITES, electronic hardware manufacturing units, which have proven to be significant economic growth engines.
Apart from Karnataka, other states like Andhra Pradesh, Tamil Nadu and Orissa have also proposed to come out with an ITIR and have approached the Centre for approval.
The ITIR, once fully developed, is expected to provide employment to three million persons, both direct and indirect. The companies setting up shop in ITIR will enjoy similar kind of tax concessions that they are presently enjoying at IT SEZs.
The ITIR would be an integrated township with modern amenities like the roads, railway connection, metro rail and mini airport to facilitate faster approach to the location for investors.
