Orissa to set up software parks for small IT firms

Hopes to increase IT exports to Rs 1,000 crore by 2009.

With a view to provide incubation and infrastructure facilities to new and young entrepreneurs in the micro, small and medium enterprise (MSME) sector, the state-owned Orissa Industrial Infrastructure Development Corporation (IDCO) plans to set up an MSME software park.

The proposed hub will function in a multi-story vertical tower, which is one amongst a number of high-tech buildings planned to be built in and around Bhubaneswar by IDCO in the near future.

"Yes, we are planning a number of high rise buildings in the city to provide ready-made office space with all the modern facilities to the industries coming to the state. One such tower will be dedicated to MSMEs in the IT sector," Vishal Dev, managing director, IDCO, told Business Standard.

The setting up of an MSME software park is currently at a conceptual level and IDCO is in the process of preparing the detailed project report (DPR) for the project.

The corporation may either construct the park itself or it may rope-in a private developer as partner. Three probable locations have been identified for the project and no final decision has been made. IDCO, in all, has plans to build three such towers in different locations in the city.

One of the buildings will come up at Mancheswar, where a 29-acre patch of land has been earmarked. The other two towers will be located adjacent to the Fortune Towers, an existing high-tech office complex and the Orissa Computer Application Centre (OCAC) respectively.

This blueprint to set up an MSME software park in Bhubaneswar follows a plea to this effect by OCAC in the State Level Export Promotion Committee (ELPC) meeting on Assistance to States for Infrastructure Development for Exports (ASIDE) scheme recently.

The meeting, chaired by the Orissa chief secretary, Ajit Kumar Tripathy, accepted the proposal and entrusted IDCO to undertake the project for which Rs 2 crore will be provided from the ASIDE fund after IDCO submits a detailed project report (DPR).

The committee felt it imperative to set up an MSME software park to broaden the export base of the state. While the state's IT exports are pegged at around Rs 800 crore, about 90 per cent of it is contributed by the big IT companies like Satyam, Infosys, and TCS who have their development centres in the city.

It was felt that the share of the small and medium IT enterprises can be instrumental in raising exports if they are provided with the incubation facility. Basically, the MSME software park will cater to the requirement of the new and young IT professionals willing to walk in and start their business instantly.

Besides, with the available built up office space in Infocity, Fortune Towers and Tower-2000 almost exhausted, the corporation has initiated steps to meet the future requirement of the small companies. As of now, IDCO is providing land to various companies for construction of their own campuses.

However, this is not a sound business proposition for the micro and small units, who require ready-made, built up office space with connectivity to start their business.

Dev said, the proposed towers including the MSME software park, will boast of world-class built-up space, connectivity and social infrastructure like townships, hospitals and schools. However, the total investment is yet to be decided.

"Bhubaneswar Development Authority (BDA) is in the process of revising its Floor Area Ratio (FAR) norms. Once the FAR is revised, we will be able to make the exact estimates," he said.

He added that apart from the built-up space, the small companies can also take land on outright purchase basis in Infocity-II near Janla. An Info-park being developed by DLF adjacent to Infocity can also meet their space requirement.

"The info park with 1 million square feet of built-up space developed by DLF is expected to be commissioned by January 2008.

It may be noted, that there are more than 300 small and medium enterprises (SMEs) in the state in the IT sector with more than 12,000 software professional engaged in them.

Infocity, considered as the biggest IT park in eastern India, is spread over an area of 350 acres, currently housing big IT companies like Infosys, Wipro, TCS, Mind Tree.

Similarly, Fortune Towers, with a built up space of 0.35 million square feet, is equipped with high speed connections. Besides, IDCO Towers, which is strategically located in the heart of the city, houses a number of IT and IteS companies.