Orissa IT firms seek more floor space in Infocity

Small and medium enterprises in the information technology (ITSMEs) sector in Orissa are approaching the government to increase the floor area ratio (FAR) of buildings in Infocity, the IT hub of the state.

The demand is in line with the existing FARs for IT buildings in West Bengal, Andhra Pradesh, Tamil Nadu and Maharashtra.

The SMEs are also demanding an increase in the rent subsidy period from the present 1 year to 3 years and a hike in interest subsidy from the current 5 per cent on loans up to Rs 1 crore for 5 years.

Sources in the state Confederation of Information Technology (CITE) said both the issues would figure prominently in the eight-point demand charter to be shortly placed before the state government.

The FAR in and around the Infocity, currently, is 1.75, which the ITSMEs feel will intensify land scarcity problems as vertical expansion will be stalled at such rates. Vertical expansion allowed for buildings within and around the Infocity is approximately 27 metres.

This is ideal for a nine-storey building. The CITE feels that with land becoming scarce in the area, FAR needs to be increased for higher vertical expansion. FAR in West Bengal and Andhra Pradesh is 2.5 each, while it is 4 each in Chennai and Maharashtra.

Bhubaneswar, currently, has 135 IT companies registered with the Software Technology Parks of India (STPI). Of these, the big software firms include TCS, Infosys and Satyam. Lately, other big IT firms such as Wipro, MindTree and BPO giant Genpact are planning to move to the city.

The IT majors contribute almost 85-90 per cent to the state's total software exports, which are currently around Rs 723 crore. ITSMEs, however, form the bulk of the number of companies registered with the STPI.

The other demands listed in the CITE charter include provisions for better connectivity, steady and augmented power supply from CESU, building better transport facilities in and around the Infocity, proper maintenance of law and order by setting up a police outpost, speedy implementation of the overhauled ICT policy for the state, involving the CITE in ICT policy and encouraging the setting up of a private software technology park similar to Andhra Pradesh and West Bengal.

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GROUND REALITY

SMEs are demanding an increase in the rent subsidy period from the present 1 year to 3 years

The units are seeking a hike in interest subsidy from the current 5 per cent on loans up to Rs 1 crore for 5 years

The Confederation of Information Technology (CITE) would present an eight-point demand charter to the state government

The CITE feels that with land becoming scarce in the area, floor area ratio needs to be increased for higher vertical expansion

FAR in West Bengal and Andhra Pradesh is 2.5 each, while it is 4 each in Chennai and Maharashtra