NRI IT Businesses to invest over Rs.1500 cr in Hyderabad

Sri KomatiReddy Venkat Reddy, Hon’ble Minister for IT, Communications , YS & Sports
 (is currently on tour to US) is seen in a Meeting with Small and Medium Enterprise
Consortium (SMEC) in US

Hyderabad|India|June'2010: The NRI owned Small and Medium Enterprise businesses have come forward to invest over 1500 crores in Hyderabad in 3 phases, announced SMEC (Small and Medium Enterprise Consortium) chairman Mahender Musuku. At a breakfast meeting held in USA with the CEOs of SME companies Sri Komatireddy Venkat Reddy, Minister for IT&C Govt. of A.P. has appealed to the NRI businesses to consolidate their overseas operations in Hyderabad , India and make it as their destination city for IT and ITES needs. In response to this the businesses have expressed interest in making Hyderabad as their 1st choice for operations provided the companies get equal playing field, good incentives in taxation and infrastructure support. Several proposals were discussed during the meeting including setting up an incubation center with immediate effect , followed by developing a self sustaining campus. The minister has assured full support from the Govt. of A.P.. to enable these companies to start the operations immediately.

Responding to the request of some of the companies to have immediate space available. the minister offered to lease the currently available built-up space in the Madhapur area that is owned by the department at a reasonable price pending the approval from the Govt.

SMEs have proposed to setup an incubation center in the heart of the city of Hyderabad for Administrative and front offices with an estimated employment for over 2000 employees in the next 2 years. This would be followed by the campus in the vicinity of Hyderabad where in there would be a direct employment for around 10000 employees and indirect to around 40000 employees with an investment of over 1500 cr. The campus would be built in 3 phases with the 1st phase to be completed within 2 years of the approvals, if any.

Mr. Musuku has mentioned that a similar proposal is pending with the Govt. for more than 2 years and requested the Minister to look into the matter favorably. The SMEs in USA have sustained operations in India and irrespective of the recession, had been investing in future growth plans in India . The minister has assured to take up the matter immediately with the CM Sri Rosiah and respond within 30 days.

SMEC is a small medium enterprise consortium based in US