HDMC allots land for IT firms TCS, Quest

HDMC allots land for IT firms TCS, Quest
Deccan Herald.com

From Shyam Sundar Vattam DH News Service

Hubli: As the first step towards development of Information Technology industry in this region, Hubli-Dharwad Municipal Corporation (HDMC) has allotted 25 acres each to Mumbai-based TCS Company and Bangalore-based Quest Company at Rayapur on Hubli-Dharwad Road.

According to highly placed sources, a decision to this effect was taken at a meeting held in Hubli on Wednesday. Senior HDMC officials including HDMC Commissioner P Manivannan participated in it. An advisory committee comprising Mr Madan B Desai, industrialist; Mr S I Munavalli, president, Karnataka Chamber of Commerce and Industry; Dr Ashok S Shettar, principal, BVB College of Engineering and Technology; the general manager of District Industries Centre; Mr Devanand from KEONICS and Mr Melmalagi, deputy general manager, BSNL, was formed at the meeting. The committee will process applications seeking land allotment.

Fallout of IT meet

After IT Investors’ Meet in Hubli on May 20, both TCS and Quest had shown interest in setting up their units at Rayapur on Hubli-Dharwad road. The HDMC owns 55 acres at Rayapur, out of which 50 acres has been allotted to these two companies at a cost of Rs 8 lakh per acre. This price is very less compared to Rs 10.60 lakh per acre - the price fixed by Karnataka Industrial Area Development Board in that area. Both companies have agreed to HDMC’s price. The HDMC has put a condition that the companies must set up IT units in the allotted land, within two years.

The purpose of allotting such a big tract of land is to create IT jobs for graduates of twin cities.

The sources pointed out that allotment letters were forwarded to the state government, which would take necessary action in this regard. As per the KMC Act, government permission was required for leasing land for more than five years or outright sale of land owned by local bodies. In all probability, the state government would approve the proposal at the earliest. “This will definitely go a long way in attracting major IT companies to north Karnataka in general and Hubli-Dharwad in particular,” said sources.

Meanwhile, the district administration is in constant touch with all IT companies that participated in Hubli IT Investors’ Meet and is convincing them to set up their units in this region. Low land cost and state-of-the-art facilities would be added advantages for the administration to convince these companies.