Karnataka to build tier II cities
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NDTV Profit.com
NDTV Correspondent
Tuesday, May 2, 2006 (Bangalore):
Karnataka CM HD Kumaraswamy has said that his government is not in a position to sanction any more land to industries due to a shortage of land and that IT companies should be encouraged to move out of Bangalore to places like Mysore.
Land prices in the city have gone up by more than three times, especially in the IT-corridor of Whitefield where prices have gone up from Rs 1,000 to Rs 3,500 per sq foot in the last two years.
"I am not ignoring the IT sector. People who work in small-scale industries are facing a lot of problems. In that light I discussed some issues requesting them to go for second-rate cities," said Kumaraswamy.
Industry experts however say that this could be a good move but only if the government is keen on developing Tier II cities like Mysore, Dharwad, Hubli.
Recently approved projects like the Bangalore-Mysore Infrastructure Corridor show the government's keenness to tackle only Bangalore's infrastructure woes.
"Clearly I think this is a good move if IT companies take up their expansion plans in the Tier II cities. The cost is approximately 30 per cent lower than in Tier I cities. So it clearly would also get them to be far more profitable," said Prashant Singhal, Director, EnY.
First complaints of bad infrastructure and then government apathy leading to projects like SemIndia going to Hyderabad, if the government is keen on attracting and more importantly retaining the investment into the state, it has to ensure that IT companies don't end up being the latest political pawn in the hands of a government looking for popular appeal.
