The Hindu : Karnataka News : Dharam Singh promises top priority to IT

Online edition of India's National Newspaper
Wednesday, Aug 11, 2004

Karnataka

Karnataka

Dharam Singh promises top priority to IT

By Our Special Correspondent

BANGALORE, AUG. 10. The Karnataka Government today said it was committed to the growth of information technology (IT) and biotechnology and would do its best to fulfil the needs of these sectors.

The Chief Minister, N. Dharam Singh; the Deputy Chief Minister, Siddaramaiah; the Minister for Water Resources, Mallikarjun Kharge; the Minister for Industries and Infrastructure Development, P.G.R. Sindhia; and the Minister for Public Works, H.D. Revanna, gave this assurance at a closed-door meeting with captains of the IT industry.

Sources in the Government and the IT sector told The Hindu that the differences between them arose as the industry felt that it was not being consulted on the development of infrastructure in Bangalore and also because of the increase in sales tax on computer hardware and software announced in the recent budget.

There were reports that the Government's stance pertaining to the IT sector would lead to a flight of IT units to neighbouring States, although it could happen only over a period of time as the sector had taken root in Bangalore. Mr. Siddaramaiah had repeatedly said that the industry would not move out of the city, and the Government would prevent such a migration.

Misgivings cleared

With the Chief Minister having an interaction with the heads of some important IT firms, the misgivings, if any, seem to have been cleared. The IT industry had suggested doubling the profession tax to Rs. 400, and utilising the additional revenue of Rs. 75 crores for the development of infrastructure in the city.

Azim Premji, WIPRO chairman, will have a one-to-one meeting with Mr. Siddaramaiah on Wednesday to seek a reduction in the sales tax. Although there was no commitment from the Government in this regard, the Deputy Chief Minister said, "I will hear him out and thereafter, take a decision in consultation with the Chief Minister and the Cabinet."

No timeframe

Mr. Dharam Singh said the IT sector wanted development of infrastructure in Bangalore, particularly roads and flyovers apart from better housing. "We will discuss the subject in the Cabinet and come out with an action plan. There is, however, no timeframe to effect the improvements and it is known to all that the Government has to bring about the improvements within the available resources. Infrastructure development is capital intensive but we are committed to its upgrading," he said.

The Chief Minister said the meeting today was quite fruitful and well attended and such review meetings would be held again. The State Government had set apart Rs. 100 crores for road improvement and the works would now be speeded up. The IT sector wanted the speeding up of the work on flyovers and the Government would issue directions to the agencies concerned in this regard.

The Government had also assured that the BATF would continue to function and the commitments made at its previous meeting in January would be kept.

Nandan M. Nilekani, chief executive officer and managing director of Infosys Technologies, said: "We had an open discussion on matters pertaining to infrastructure development and the Chief Minister and the senior Ministers gave us a patient hearing. We are also keen on decongesting Bangalore and towards this end, Infosys has set up units in Mangalore and Mysore. With the development of infrastructure, we shall contemplate expanding to other areas."

Mr. Premji, Mr. Nilekani, and some members of the Bangalore Agenda Task Force (BATF), who are also connected with the IT sector, were among those who attended the meeting on behalf of the industry.

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