Karnataka - Bangalore   

More sops for IT firms ruled out

Special Correspondent

Investments in secondary cities

Bangalore: The State Government has ruled out providing extra sops to entice information technology (IT) investors in starting their operations in secondary cities, such as Mysore, Mangalore, Hubli-Dharwad, Belgaum and Gulbarga.

State Information and Biotechnology Secretary M.K. Shankaralinge Gowda told The Hindu that no State in the country offers the kind of incentives to the IT sector that Karnataka does, and the industry should expand operations to Tier 2 cities in the State where a vast talent pool and good infrastructure already exists.

When told that the neighbouring Andhra Pradesh is offering additional incentives to the IT sector for promoting secondary cities such as Visakhapatnam, Vijayawada, Tirupati and Warangal, MR. Gowda said that State does not grant concessions for Tier 2 locations.

"They are not offering any sops even for IT firms in Hyderabad. The only thing they are offering is sales tax rebate when companies hire people from Andhra Pradesh. Do you want that to happen in Karnataka? Can that happen? If that happens we will be opening another Pandora's box," he remarked.

Mr. Gowda said IT firms could take advantage of the cheap land available in the secondary cities of Karnataka for shifting operations there. "The land costs are in excess of Rs. 1 crore per acre in Bangalore, whereas it costs only about Rs. 15 lakhs in a city like Mangalore. Plus, cost of hiring is much less," he stated.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

127 persons get Rajyotsava Award
A moving tale of the `third gender'
Court directs JD (S) to hand over building to Congress
Bangalore IT.in turns out to be a lacklustre affair
Rain: BMP estimates loss at Rs. 300 cr.
People of rain-hit areas pour out their woes to Dharam Singh
Youth trampled to death by elephant at Hakki Pikki colony
Red carpet for chip-makers
Software company employee robbed
More sops for IT firms ruled out
Lake maintenance may be handed over to BDA or BMP
Mayor breaks down
All set for rock music contest
Experiment in organic farming to be extended
Second dose of swashbuckling
Four firms to set up units in Bangalore
Driver escapes with Rs. 90 lakhs bank cash
Delhi blasts: police on alert
Thimme Gowda is acting VC
Around the City
In Bangalore Today

Copyright © 2005, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu