The Information Technology and Knowledge Industry Policy 2009, part of Punjab?s new industrial policy, has set up an ambitious target. It has ?devised a strategy which intends to create an IT and knowledge industry with exports worth $4.6 billion, in addition to 0.6 million direct and indirect jobs by 2018.?

The policy announced on Tuesday states that ?The strategy has been conceived with the view that the growth in the coming years will be increasingly driven by the knowledge and service-based sectors, whereas of information transactions will be a key determinant of success.?

Considering that Punjab has consistently ranked low in terms of ratings on infrastructure, policy, human resources and investor relations, the new road map for developing the IT and knowledge industry addresses major issues plaguing industrial development in Punjab.

State industry and commerce minister Manoranjan Kalia said the strategy aims to create an ecosystem for the IT and knowledge industry by providing solutions for areas where the state has ranked low.

The aim, he emphasised, is to invite infrastructure developers and large IT units to undertake projects in the state.

To accelerate the growth of the IT industry, institutions offering specialised education and training for the IT and knowledge industry such as finishing schools, entrepreneurship development cells, incubation centres, institutes of higher learning and other knowledge industries, which are part of an IT park/knowledge park, would be eligible for the benefits under this policy on par with IT units.

?The objective of the government is to put in place a package of policy measures and incentives, which will make Punjab one of the most attractive investment destinations in the IT/ knowledge industry sector,? said Kalia.

He added that the state envisages the role of the government as being primarily that of a facilitator to ensure the energies of the private sector and the civil society is effectively deployed.

In this regard, the state government has created a venture fund for the IT/knowledge industry, with a corpus of Rs 20 crore contributed by SIDBI and other state corporations. The fund has mobilised contributions to the tune of Rs 5 crore, and its management is going to be entrusted to the private partner. The state government will contribute an additional Rs 5 crore to the corpus.

The state plans to set up a development fund contributed by government agencies including PIDB and optimum utilisation of vacant government landsscheme for promotion of IT/knowledge industry.

The fund will be used to promote IT/knowledge industry for creation of infrastructure, human resource development, policy implementation and building strong investor relations.

The fund will also provide an additional assistance for advancement of SMEs.

Till now, IT growth in the state has been limited to Mohali.

The state wants to upgrade infrastructure here to attract more investment. The existing estates in Mohali were developed in 1980-81 for electronics companies.

The state has now felt the need to ensure development of world class IT campus/ complexes to fulfill the requirements of IT/knowledge industry.