Local IT organisation bid to put Vijayawada on IT map

30.5 acres acquired near Gannavaram to attract Telugu NRIs to set up units

About 10 US-based software companies belonging to Telugu non-resident Indians are all set to open shop in Vijayawada, thanks to the efforts of the Krishnaveni Information Technology Association (KITA), an organisation formed by local IT firms.

As a follow-up to the recent state government's decision to develop Vijayawada as an IT hub, the Krishna district collector has acquired 30.5 acres of land near Gannavaram, 20 km away from the city, to attract NRI industrialists to set up units there.

Seeing favourable winds blowing here, Y Rambabu, CEO of BPO Systems Inc, California, has announced plans to open a centre in Vijayawada while Bangalore-based Extranet Solutions has already opened a branch in the city. The construction work on office building of yet another BPO, based in Chennai, is going apace.

"Telugu NRI IT industrialists have expressed their willingness to buy up to five acres of land at Gannavaram,"KITA convener D Ramakrishna told Business Standard.

He said KITA was committed to putting Vijayawada on the world IT map and would extend every possible help to new companies begin work in Vijayawada. "The body has been organising an advertisement campaign in the US inviting NRIs, particularly those from Andhra Pradesh, to open their offices in Vijayawada, and avail themselves of the ideal business environment prevailing here."

He said, "KITA has also launched a website (kita-vjw.org), outlining the benefits in starting IT business in Vijayawada. It has been spearheading a campaign at national and international IT seminars to showcase the benefits of tier II cities like Vijayawada for IT business."

Ramakrishna, however, expressed the apprehension that small IT companies might hesitate to open units in the distant Gannavaram area in view of escalating cost of setting up offices. Firms generally prefer to locate their offices within a city or, at the most, on the outskirts.

He, therefore, appealed to chief minister Y S Rajasekhara Reddy to acquire land within the city limits and sell it to small firms at market rates. He also sought posting of an IAS officer for speeding up measures to set up an IT park at Gannavaram.

"Vijayawada, with good basic infrastructure, is a peaceful and quiet city, free from congestion and pollution. Centrally located with easy access to rail, road and air transportation, this commercial and educational hub in South India allows a hassle-free commuting due to shorter distances to travel within," he said.

He said that abundant availability of IT professionals, reasonable salary demands, low attrition rate were some of the favourable features making Vijayawada a choice destination for IT firms. Besides, good hotels and restaurants, abundant housing space, shopping, entertainment facilities, all at reasonable cost, make the city an ideal location for new units.