IT industry leaders for tweaking IT policy to bring big players to Andhra

Policy Adjustment Needed:

1) Local IT entrepreneurs express concern over delayed incentives

2)Calls for enhanced incentives to nurture startups and innovation

3)Emphasis on improving amenities to attract more IT players to Vizag

4)Proposes new IT parks, subsidies, skill development centers to bolster AP’s IT landscape

Vijayawada: Several stakeholders in the IT and ITES sector in Andhra Pradesh feel that the policy now under implementation needs to be tweaked after consulting them to attract big ticket projects and encourage local talent and innovation culture.

While appreciating Chief Minister N Chandrababu NaIdu's decision to transform Visakhapatnam into a financial hub, they hoped that fintech and technology-based companies should be offered incentives to take the State to the next level. The startup ecosystem also needs a booster dose, Sridhar Kosaraju, MD and CEO of Nimaisoft, told Bizz Buzz.

One of the main grouses of the local IT entrepreneurs is the delay in release of incentives declared under the policy, which was introduced by the erstwhile YSRCP Government. Some of the suggestions from the stakeholders include establishing a Sri City-type new electronic cluster near Bhogapuram International Airport or Mulapeta Port under construction in Srikakulam district and developing IT hotspots across the State in places like Tirupati, Amaravati, Vijayawada, Anantapur and Rajahmundry.

During the last five years, there was nothing remarkable in the field of IT except bringing Infosys to open an office in Visakhapatnam and laying the stone for Rs 21,844-crore Adani Data Park project. The business district project at Madhurawada and the proposed IT Concept City is yet to take off. Most of the stakeholders have been insisting on improving social infrastructure to bring more players to Visakhapatnam, a cosmopolitan city, which is devoid of nightlife.

Centre in-charge for WNS KL Narayana, Kosaraju, who is the Founder and Chairman of DeepTech Naipunya Foundation and other representatives from IT Association of AP (ITAAP) recently called on IT, Electronics and HRD Minister Nara Lokesh and urged him to bring the required changes in the policy.

"His response to the delegation was quite encouraging," Kosaraju said. The Minister, who was apprised of the key concerns of the IT industry, agreed to soon attend an interactive session with the industry leaders after completing a detailed review with his department officials.

Rushikonda IT Park Association vice-president and CEO of Symbiosys Technology O Naresh Kumar said, "Hyderabad has emerged as a leading IT hub due to strong foundations laid by then Chief Minister of united AP N Chandrababu Naidu in the mid-90s. Now, AP also needs such initiatives to improve the IT landscape with major players coming forward to invest in various domains in our State.”

He asked the IT Minister to develop a new IT park in 23 acres in Hill No. 3, opposite IBM in Visakhapatnam under PPP mode and offer incentives like zero cost entry with no registration, land conversion, municipal approval and vacant land tax (VLT) charges. He wanted to allow new convention centers and HITEX city-type developments in the private sector with zero cost entry and a waiver of property taxes for three years until achieving a breakeven.

Referring to the policy followed in neighbouring Odisha, he said AP should also offer a 30 per cent capital subsidy and a 5 per cent interest subsidy on all new projects.

Millennium Tower

Naresh Kumar said the new Millennium Tower, built at Rushikonda with 3.5 lakh square feet of vacant space, should allocate 25,000 square feet each, free of cost, for rent for three years to the top 10 IT companies in India. This allocation would facilitate the immediate start of operations with 1,000 employees each.

On vacant space allocation, he requested to allot 10 lakh square feet vacant space in Hill 2 and Hill 3 to new companies. The government should come forward to offer a 50 per cent rent subsidy to bring more investors.

On the need to unveil a New IT Policy, he said the industry is in favour of implementing a new IT policy with enforceable terms, favorable approaches and offer subsidies to improve investment climate in the IT sector.

Calling for meetings with the local industry once every quarter, he suggested establishing a major player to set up a finishing school/training campus similar to the Infosys IT Mysore campus, developing a new Skill Development Centre with the help of the Central Government to teach artificial intelligence, cyber security, animation, gaming, VFX, set up a foreign language lab to attract people from all over the country to Visakhapatnam-the main IT hub of AP.