Thursday, December 21, 2006

Govt okays HDMC land for IT firms

Govt okays HDMC land for IT firms
M L Kapur - TIMES NEWS NETWORK

20 Dec, 2006 2333hrs IST

HUBLI: At long last, there is a ray of hope for small and medium IT/ITeS players planning to set up shop in Hubli. The state government has given the green signal for allotment of 50 acres of Hubli-Dharwad Municipal Corporation's land at Rayapur to the industry.

The proposal for allotment of land between Hubli and Dharwad was sent by HDMC to the state government for approval some time in July, but the inordinate delay of five months in taking a decision has led to withdrawal by big players like TCS and Quest.

Revenue and district in-charge minister Jagdish Shettar told The Times of India on Wednesday that the urban development and finance departments had raised basic objections to the HDMC's proposal saying that the land cannot be allotted to IT/ITeS at subsidised rates.

They pointed out that as per rules, if the corporation land has to be alienated, it is only through open action and not by allotment.

Or else, only the government can waive this condition and clear the proposal as a special case. Shettar said: "The chief minister cleared the file last week. The cabinet will ratify the government's decision at its next meeting. It is only a formality. The entire land will be allotted to IT/ITeS companies recommended by a committee constituted for the purpose by the HDMC."

The HDMC had sent the proposal in pursuance of the council's resolution adopted in the wake of the Hubli IT Investors' Meet held here in May. Later, the proposed Karnataka Law University, expected to become functional from the next academic session, also staked claim for the same land.

Initially, HDMC's IT land allotment committee had recommended 25 acres of land each to Tata Consultancy Services (TCS) and Quest.

But TCS declined the offer saying its requirement was 50 acres, and that too in an IT-specific SEZ. Quest also backed out after waiting for five months. HDMC later recommended the land declined by TCS to some other IT/ITeS firms.

The better-known among them are Bangalore-based electronics software design company Sankalp Semiconductors, and NS Infotech, a BPO start-up operating from Hubli.

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