Investors are pinning high hopes on emergence of Visakhapatnam as the IT capital of Andhra Pradesh. Though Visakhapatnam is the second largest city after Hyderabad in undivided AP, not much progress was achieved to boost IT business from the port city over the years. Ironically, the IT turnover from Telangana State (mainly Hyderabad and Cyberabad) is estimated at Rs. 64,000 crore whereas the current IT business in the entire State is pegged around Rs.1800 crore.
Visakhapatnam clocked a turnover of Rs.1,450 crore during 2013-14 with a growth rate of 15 to 20 per cent. “Despite several players in the field, we could not do much for want of patronage. With the promise of special category status to A.P. which is accompanied by several incentives and a special package post bifurcation, we are confident of becoming a favourite rendezvous for investors,” says Vizag IT Association president Deepak S. Madala.
To drive anchor companies to the area, Chief Minister N. Chandrababu Naidu should replicate his success in making Hyderabad an IT hub here, he says. The government, accordingly, announced its decision to allot land to IT majors that will, in turn, act as anchor clients for attracting smaller players to give fillip to a bustling IT corridor.
Major playersThe city at present has 70 IT firms providing direct employment to 20,000 and indirectly to around 40,000. Major players present in the city’s IT establishment include Wipro, Tech Mahindra (formerly Satyam), IBM (which acquired Kennexa Technologies) and HSBC. Earlier, big companies like TCS and Infosys evinced keenness in setting up shop in Visakhapatnam, but deferred their plans as the city lacked infrastructure that could propel growth of the sector.
The city has two IT Special Economic Zones viz. at Rushikonda in an extent of 175 acres and Gambheeram on the city outskirts in an area of 51.31 acres. The government is in the process of allotting 10 acres at Madhurawada to Tech Mahindra for its expansion. APIIC is constructing an incubation centre at Rushikonda at a cost of Rs.25 crore.
Land has become a big hindrance for allowing new units. Several locals are demanding a signature tower on the lines of Cyber Towers in Hyderabad to enhance the brand value of Visakhapatnam. Symbiosys Technologies CEO Naresh Kumar says 1,750 acres at Kapulauppada, which was taken over by APIIC after its allotment to a Delhi-based company for developing Knowledge City, should be earmarked for developing another Silicon Valley.
“We need three-pronged approach: outright allotment to individual entrepreneurs, bringing in big companies by offering concessions and development of facilities on the lines of Raheja Mindspace and Ascendas IT Park. IT employees should also be convinced to shift to Visakhapatnam by showcasing its beauty,” he states.
