VISAKHAPATNAM: With several investors making a beeline to Visakhapatnam to set up IT units, the city is fast emerging as a tier-II destination.

While Satyam's IT park is in advanced stage of construction, Wipro has launched construction of its 1,000-seater facility.

The two campuses will come up at the old TB Hospital junction early next year. TCS is also expected to launch its operations soon.

With the State Government announcing its resolve in its New IT Policy to develop Vizag as an ideal destination next to Hyderabad for software and BPO units, entrepreneurs - big, medium and small - are evincing keen interest to acquire land in and around the city.

Land allotment

The State Cabinet has already cleared a proposal to allot land to investors at the rate of Rs.50 lakhs per acre in the city and Rs.10 lakhs outside the city limits.

Consequently, Satyam Computer Services Limited was allotted 50 acres at the rate of Rs.10 lakhs per acre at Thotlakonda near Rushikonda beach resort for establishing a training and software development centre.

It was charged at the rate of Rs.50 lakhs along with Wipro for allotment of land at the old TB Hospital junction. Sources say that Wipro is also negotiating with the Government for buying land at a concession near Rushikonda.

Advantages

"Due to its beautiful landscape, location of the sea and hills, availability of reasonably priced land and cheap manpower and, more importantly, the city's reputation for low crime rate are bound to make it an ideal destination for investors," Minister for Commercial Taxes Konathala Ramakrishna told The Hindu .

The city at present boasts of having 50 small and medium IT units with a projected turnover of Rs.150 crores during the current fiscal as against Rs.109 crores during 2005-06 and Rs.70 crores during the previous year. With the formation of Greater Visakha Municipal Corporation, more areas have come under the corporation limits.

Sources in the IT and Communications Department say that work on two Special Economic Zones being exclusively developed for IT units on an area of 100 acres atop Rushikonda hills overlooking the sea is progressing well.

Incubation centre

Software Technology Parks of India has okayed a proposal to set up an incubation centre at Yendada near Madhurawada for first generation entrepreneurs. Work on cyber towers proposed on an area of 11 acres opposite port Chairman's bungalow - close to RK beach - is also likely to take off once fresh notification is issued for expression of interest.

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