Briefing the cabinet decision, information and public relations minister Shabbir Ali said that the IT department will have to repay Rs 2.2 crore to the jails department as compensation. The government is serious in developing the tier II towns - Warangal, Visakhapatnam, Kakinada, Vijayawada, Guntur, Nellore and Tirupati - as IT hubs of the state. The land will be utilized by the IT department to develop IT parks, IT SEZ parks to attract NRIs who have evinced interest in seting up their off-shore units in that area.
The proposed IT towers will be self-contained modern township consisting of: space to small and medium enterprises and home grown IT companies, an incubation centre to cater to the first generation technocrat entrepreneurs, restaurant/food courts, shopping malls and entertainment places.
Besides, the government has allocated two acres to the Software Technology Parks of India (STPI), and a further Rs 1 crore was sanctioned to fund the construction of an incubation centre.