THIRUVANANTHAPURAM, 3 March 2007 — Kerala is all set to make it big in software exports and infrastructure development with private participation. The sector is expected to generate at least 100,000 jobs in the next five years.
Kerala Chief Minister V.S. Achuthanandan, who launched Technopark’s new block, Thejaswini, recently, said the state had set a target of creating 200,000 jobs over the next five years.
According to the chief minister, the presence of qualified people, a good working atmosphere, advanced technological infrastructure and good climate in India’s most literate state were some of the factors prompting information technology (IT) companies to set up operations here.
Thejaswini, which will create 6,000 jobs, is claimed to be the single-largest IT block in India. With 850,000 sq. ft. built-up space spread over 12 floors, five of them underground, this is the seventh building in the Technopark, Kerala’s flagship IT industry facilitator, and the largest in the state. Thejaswini is fully sold out to major IT companies such as Infosys, Ernst & Young, SunTec, US Technology, Allianz Cornhill, Stock Holding Corporation of India and Office Tigers. With the new addition, the total built-up space at the Technopark, India’s first exclusive IT zone set up in 1990 that now employs 15,000 workers, has gone up to 3.2 million sq. ft.
“Our state is blessed with fine human resources, a good quality of life and world-class infrastructure facilities at reasonable cost. Many companies have approached me to set up business here and I am happy to welcome them all,” Achuthanandan said after opening the building.
Kerala lags far behind its southern neighbors in the IT industry which accounts for 25 percent of India’s exports and the state government hopes for a slice of the projected exports of Rs.3,000 billion in 2010. The state could not capitalize on its early move advantage and its software exports last year (2005-06) stood at a meager Rs.2.96 billion ($66 million) when India exported software worth Rs.1008.09 billion ($22.4 billion). According to the Software Technology Parks of India (STPI) figures, Karnataka’s share was Rs.376 billion ($8.3 billion), as against Tamil Nadu’s Rs.141.15 billion ($3.1 billion) and Andhra Pradesh’s Rs.125.21 billion ($2.8 billion).
The chief minister said that besides Kochi, satellite IT townships are being planned for all districts, beginning with Kozhikode. He said talks with Tecom Investments, which runs Dubai Internet City, to set up Smart City are in the final stages and Smart City is expected to add 3.3 million additional built-up spaces to the software industry.
With three international airports and excellent broadband connectivity, the state is now inviting private investors to help build adequate space to meet growing demand.
IT majors such as Infosys, Wipro and TCS are building their own campuses while the Mumbai-based Leela Group is building a campus here with 500,000 sq. ft. built-up space.
Sobha Developers is planning a 410-acre ‘hi-tech city’ near Kochi while Cochin International Airport Limited (CIAL) has announced plans to build a three-million sq. ft. IT park in the proposed airport city.
The state government has also announced a hi-tech corridor along the national highway between the capital city and Kollam with NRI investments under the newly launched Infrastructure Kerala Limited (INKEL).
The National Association of Software and Service Companies (NASSCOM) President Kiran Karnik, the guest of honor at the opening of Thejaswini, emphasized bringing about high-speed connectivity between IT destinations such as Kochi and Thiruvananthapuram. Karnik said the IT industry had generated 1.5 million direct and six million indirect jobs. The industry this year will see IT exports approaching $47 billion, which in fact will be a 10-fold increase compared to figures recorded 10 years ago.
K.R. Jyotilal, Special Secretary (IT) and Chairman, Technopark Board, said the new IT policy of the state envisaged equal development of IT infrastructure in the state by developing knowledge cities in districts along with expansion of Technopark and Infopark, Kochi, in a hub and a model. “Finishing schools will be set up to fine-tune the skills of our graduates to make them more employable by the industry,” he added.
Technopark CEO Radhakrishnan Nair said expansion of the 2nd 3rd and 4th phases is in the pipeline and it would attract many more businesses.
“The fact that Thejaswini was sold out even before its completion is testimony to the high level of interest in Technopark. Trends in the IT industry clearly show a focus on tier-2 cities where skills are available and which provide a better quality of life. It is predicted that there will be a second wave of outsourcing to India soon and cities such as Trivandrum are going to benefit the most,” he said. Technopark now houses 120 IT companies and expansion on another 600 acres to set up Techno City is under way.
Achuthanandan, who holds the IT portfolio, is keen on completing a host of ‘hi-tech city’ projects promoted by private investors, including a 410-acre project of Muscat-based builder PNC Menon’s Sobha Developers in Kochi.
Infiniti Consulting Corporation Limited has announced its intention to set up an Info Park in Kochi on 100 acres.
Land acquisition for the Technocity, which is expected to create 100,000 jobs, is being implemented on the fast-track mode and the project is set to take off this year.
An abundant talent pool in Kerala, which produces more than 20,000 engineering graduates every year is a major attraction for entrepreneurs, unlike the tier-2 cities being promoted by Tamil Nadu and Karnataka, officials here claim. The Indian IT industry is expected to hire around 300,000 professionals in this fiscal year and Bangalore alone is likely to absorb more than 80,000 of them.
