Following widespread criticism over assigning government land at low cost to IT sector, the Andhra Pradesh government is mulling to stop fresh allotments to the software companies.
In fact, since mid-2007 the government was going slow on land allotments to corporate bodies, but in the case of IT companies, it had put on hold all the applications, a senior official involved in the process told FE. ?The government has done enough encouragement to IT sector offering government land at low cost and also invested in developing world-class infrastructure. It is time for the government to concentrate on other sectors especially manufacturing,? officials pointed out.
Sources said that over 10 applications are pending with the government seeking land, which may not be cleared at the present circumstance. The government wants to encourage the IT companies to buy private land. According to industry officials, even APIIC, the nodal agency for land, also resisting to give land to IT companies, especially small and medium, since it also is developing IT SEZs and industrial parks.
?To whom we have to sell the space in IT SEZs and industrial parks, if they seek land from government,? an official pointed out. About 41 IT SEZs are coming up in Hyderabad and Ranga Reddy districts, which can accommodate over 5 lakh IT professionals, they added. Though the government had tried to attract IT companies to set up units in tier II and tier III cities, by offering land at subsidised rates, the companies are not willing to move to those cities as the manpower issues have cropped up. Industry sources say that it would be difficult to attract right kind of professionals in the semi-urban towns. Hence, the demand for lan1d has increased in Hyderabad and Ranga Reddy districts, they say.