The Hindu : Kerala News : Hopes high on IT company

Online edition of India's National Newspaper
Wednesday, Dec 12, 2007
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Kerala

Kerala

Hopes high on IT company

P. Venugopal

To tap resources with expatriate Keralites

Government to hold majority stakes
Rs.10 lakh allocated for preliminary work

THIRUVANANTHAPURAM: The Information Technology (IT) infrastructure company being floated in the State as per Tuesday’s Cabinet decision is envisaged along the lines of the one set up earlier for building the international airport at Nedumbassery in Ernakulam, which has over the past few years turned out to be a great commercial success.

A top official told The Hindu that, in the present case, the government intends to retain majority stakes (51 per cent) and offer the rest to private investors. The airport company (Cochin International Airport Limited) too had started off that way, but the UDF government subsequently surrendered majority hold in the company, though the control still vests with the government.

Since the mooting of the idea to launch an IT infrastructure company in the budget speech earlier this year, the government has been flooded with offers of investment, especially from expatriate Keralites, because of the excellent commercial potential they see in it, the official said.

This is an excellent way to tap the resources with the expatriate Keralites for the development of their State. The IT industry in India now sees Kerala as a major emerging destination, the official said.

By the beginning of the coming financial year, the government will finish all the preliminary work connected with the launch of the company. For the preliminary work, the Cabinet on Tuesday decided to allot Rs.10 lakh. There will be an initial allocation of at least Rs.50 crore in the next budget for the company, the official said.

The Technocity project in Thiruvananthapuram, Infopark expansion in Kochi, and new IT parks at Alappuzha, Palakkad, Kozhikode and Kollam are some of the programmes that will first figure in the list of priorities for the new company. Land has already been identified for the proposed parks at Alappuzha, Palakkad and Kozhikode.

The government believes that there are at least a dozen towns in the State ideal for IT parks.

The government expects the IT industry to generate around 1 lakh more jobs in the State in the next couple of years. The estimates are even bigger among the industry leaders. The new company alone will not be able to handle the emerging infrastructure needs, but the government sees it also as a checks-and-balance mechanism to guard against developments that may go against the overall welfare of the industry and also society.

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