IT park fails to attract investors
TIMES NEWS NETWORK
20 Aug, 2006 0024hrs IST
HUBLI: The conditional package announced by chief minister H D Kumaraswamy while addressing the IT investors' meet here in May has failed to attract any new investor to the Hubli IT Park.
Even one company from Pune that set up base here on the eve of the meet is not happy with the services provided by Keonics.
The Hubli IT Park, developed at a cost of Rs 45 crore, has been lying unoccupied for five years as Karnataka Electronics Development Corporation (Keonics) rates were not competitive enough to attract investors.
The park has nearly 25,000 sq ft of ready for occupation space. Keonics claims it has broad band connectivity and full power back up. It was normally offering space at the rate of Rs 18 to 20 per sq feet. The package announced by CM offered it at Rs 10 per sq feet provided the investors took up a minimum of 10,000 sq feet. The offer was valid for six months.
Already three months have elapsed since the investors meet, but Keonics has failed to clinch any deals. Industry sources say that the condition of minimum 10,000 sq feet space has become a major stumbling block. Many of the start-up ventures planing to move to Tier II cities like Hubli require much less space.
Only one Bangalore based ITeS company—First American— has made concrete inquiries with Keonics. Their teams has visited the facility twice during the past one month but there is no deal as yet. A Birla Group BPO has also evinced interest, but they are still exploring other options as well.
Sources said that Neilsoft, the engineering software major from Pune which is setting up a development centre in the park, are sore with the services provided by Keonics, which has posted only an assistant manager there as caretaker. He has to take clearance from his bosses in Bangalore for even minor maintenance problems like repair of a lift or fixing an AC duct.
As many as 19 contenders are, however, queuing up for a piece of land in the IT area earmarked by Hubli Dharwad Municipal Corporation at Rayapur.
All of then cannot be accommodated there. If Keonics relaxes the minimum 10,000 feet condition, some them would be interested in negotiations.
2 comments:
Interesting
It’s really very sad to know this… Hubli being the commerical hub cannot attract investors. To assess the real facts about the infrastrue at Hubli, the bare minimum requirement for any city “The Roads” are not in good shape. I have been keeping a watch on the road progress for couple of years now, the only thing that has increased is DUST.
I think now it high time, if we compare other states, such as TN, the IT/ITES companies have open their shops in smaller cities (Samller than Hubli).
Looks like you have kept a close wathc on the Hubli –Dharwar, could you plesae let me know your views/suggentions on how the suffering of twins can be treated.
Look forward to your views.
Regards,
Santosh
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