Investors shy away from IT Park

Investors shy away from IT Park

TIMES NEWS NETWORK - M L Kapur

21 Nov, 2006 2256hrs IST

HUBLI: The government's initiatives to take information technology (IT) to Tier-II cities may well seem halfhearted if one goes by the fate of the state-of-the-art IT Park here. There are virtually no takers for more than 2 lakh sqft of space ready for occupation.

The Hubli IT Park, developed at a cost of Rs 45 crore, is managed by Keonics on behalf of the Software Technology Parks of India and attempts to sell the idea to potential IT/ITeS investors have come to naught. Sources attribute this to lack of imaginative marketing strategy. While inaugurating the IT Investors' Meet here on May 20, chief minister H D Kumaraswamy had announced a conditional offer to attract new investors. The package envisaged competitive rates comparable with neighbouring states.

The offer was valid for a period of six moths, which lapsed earlier this week without attracting a single new investor. Neilsoft, a Pune-based engineering software solutions firm, had set up base here a day before the investors' meet.

Sources said what worked against attracting potential start-up ventures was the condition that concession would be given to firms which take a minimum of 10,000 sqft of space. Not many new ventures need that kind of space.

Keonics deputy manager H Devanand said that many firms, including the BPO arm of ICICI, made inquiries about the facilities available here, but no deal has been struck so far since the package was announced.

Meanwhile, certain other investors like Bangalore based Sankalp Semiconductors, who need limited space to expand to this Tier-II city, have set up their development centre on the BVB Engineering College campus.

It is learnt that both Neilsoft and Sankalp Semiconductors are satisfied with their decision to set up base in Hubli. Both companies have plans to expand their capacities here in the near future.

According to sources, the state government is learnt to have put its final seal of approval on HDMC's proposal to allot 25 acres of its land in Rayapur to five IT/ITeS companies. Another 25 acres is also on offer to some other IT companies in the queue.