Hyderabad|India|April'2010: Chief Minister reviewed the activities
of Information Technology & Communications Department and appreciated the
efforts made to promote IT/ITES in AP.
Smt. K.Ratna Prabha, IAS, Prl.Secretary, IT&C, made a presentation on
growth of IT in the State. IT Sector has recorded exponential growth rate
in the State. While in 1999 there were 194 IT companies, by 2009, the same
grew to 1206 companies recording an increase of 6.5 times.
The employment in 1999 was 12,000 and this increased to 2,51,786, that is
an increase of 20 times by 2009. The export turnover in 1999 was Rs.284
crores which has reached to Rs.32,509 crores in 2009, recording an
increase of 110 times. Further, IT sector contributes to 49% of total
exports from all the sectors in the State. The share of State of AP in
contribution to National revenues is 15% and the state stood at 4th
position in performance of IT sector in the Country.
Smt. K.Ratna Prabha further informed the Hon’ble Chief Minister about the
following future growth plans to be adopted by the IT&C Department in
promotion of IT in the State:
(i) To achieve an export turn over of Rs.70,000 crores by 2015
(ii) To create new direct IT employment of 1,25,000 by 2015
(iii) To develop the approved IT SEZs so that in the next five years, 100
millions sq.ft of state of the start office space of international
standards is in place and an IT employment of more than 10 lakh is
generated.
(iv) To attract new IT MNCs that do not have presence in India & Hyderabad
(v) To attract IT MNCs/IT majors that have presence in India but not in
Hyderabad.
(vi) Motivate the IT majors present in Hyderabad to - (a) grow in size &
operations (b) move to Tier II locations – Warangal, Vijayawada, Vizag,
Kakinada and Tirupati, etc.
(vii) To promote new verticals like Electronic Hardware Animation &
Gaming, Engineering Services, through attractive package of incentives.
(viii) To encourage Start up/SMEs through special felicitations and
setting up of Incubation Centres
The Chief Minister while expressing the satisfaction over the growth of IT
sector in the State, instructed that, concerted efforts shall be put in
place by the IT&C Department to reach the 3rd position in IT performance
in the country.
With regard to the performance of the JKC, while Chief Minister that there
are about 853 JKCs in the State, all efforts shall be made to expand the
JKC scheme and more JKC centres shall be opened covering all areas to the
nook & corner of the State to benefit the educated youth of downtrodden,
socially and economically disadvantaged sections of the society
The Chief Minister instructed that IT shall be penetrated to other
locations in the State and all necessary infrastructure and
incentivization shall be shall be provided to the IT companies to expand
and locate their operations in the other cities and towns of the State
such as Warangal, Vijayawada, Tirupati, Visakhapatnam, etc.
CM also directed that the construction of campuses by the IT companies to
whom lands have been allotted shall be closely monitored for expeditious
completion and creation of additional employment.
The Chief Minister Dr. K Rosaiah agreed to give more
priority to the IT sector in the State. While appreciating the performance
of the IT sector, he wanted the Tier-II locations to be developed as fast
as possible in the State. He held a review meeting on IT sector with
minister and officials at Secretariat.
The Chief Minister was explained that as of now, the share of IT exports
from Andhra Pradesh occupies 15% of the total national IT exports.(8.63%
in 2004). IT/ITES Industry in the State contributes 0.57% share of the
national GDP (as against the national GDP share of 3.83%), IT sector
contributes to about 49% of total exports from all sectors in the State.
AP ranked 4th position in IT performance in the Country next to Karnataka,
Maharashtra and Tamil Nadu. While Industrial exports in the State were
Rs.33,676 crs. against IT exports of Rs.32,500 crores.
Visakhapatnam is now emerging as the next IT Hub in the State. The growth
rate in 2008-09 is 35% against the national average of 20.65%. Companies
like HSBC, Mahindra Satyam, Kenexa, IBM Daksh are now operating from Vizag.
The IT sector aims to achieve an export turnover of Rs.70,000 crores by
2015, to create new direct employment of 1,25,000 by 2015, to attract new
IT MNCs that do not have presence in India & Hyderabad and to attract IT
MNCs/IT majors that have presence in India but not in Hyderabad by
conducting Road shows, networking meetings, etc.
The department also aims to motivate the IT majors present in Hyderabad to
grow in size & operations and move to Tier--II locations – Warangal,
Vijayawada, Vizag, Kakinada and Tirupati, etc. It also aims to promote new
verticals like Electronic Hardware Animation & Gaming, Engineering
Services through attractive package of incentives. The department also
aims to encourage Start up/SMEs through special felicitations and setting
up of Incubation Centres to attract investments in the IT SEZs.
The department is seeking to provide incentives such as stamp duty
reimbursement, power subsidy, Exhibition Subsidy, Quality Certification,
Recruitment Assistance, and provision of infrastructure to the doorstep
for IT promotion. The department also wants to provide a special and
negotiable package of incentives for promotion of Tier-II locations like
land at concessional rates, Stamp duty reimbursement (one time), anchor
company subsidy or/and recruitment assistance, training assistance, power
subsidy (25% for 3 years).
The Chief Minister also agreed to inaugurate an Incubation Centre -
SOLITAIRE at Madhapur and to lay Foundation stone for Kokapet IT SEZ. He
will also inaugurate TSI and Honeywell facilities at Hyderabad; Mahati,
Infotech, eCentric, IIC Systems and Miracle at Vizag. He will also lay
foundation stones for development of IT SEZs at Warangal, Gambheeram in
Vizag and Tirupati Incubation Centre and IT SEZ.
IT Minister Komatireddy Venkat Reddy, Principal Secretary, IT&C, Ratna
Prabha and other officials attended the meeting.
-April'
2010
