Only 8 out of 30 firms allotted land at Rushikonda are operational

The State government is mulling action against IT firms, including some big players, for their failure to either launch their projects in the city or comply with employment and other conditions.

Based on the status report submitted by the local office of the Andhra Pradesh Industrial Infrastructure Corporation (APIIC), district Collector Lav Agarwal recently made his recommendation to the Government for action against “non-performing” units.

One of the major players, which bought seven acres, had promised in May 2009 to invest Rs.200 crore on a 6,000-seater campus within six months. Similarly, several entrepreneurs took possession of the land on Hill No. 2 and 3 at the IT Special Economic Zone, Rushikonda, but failed to take up any construction work except fencing and putting up name plates with 24x7 security guards.

Enquiries by The Hindu revealed that only eight units among 30 firms that were allotted land at Rushikonda were operational. “We don't have anything to comment on this issue as ours is a performing unit,” pointed out O. Naresh Kumar, CEO of Symbiosys Technologies.

A non-starter

IT SEZ at Gambheeram has remained a non-starter. One of the allottees somehow managed to get a piece of land at Rushikonda and got his proposed unit relocated. Now, it seems everyone wants to try their luck at Rushikonda, showing least interest to invest at Gambheeram though the APIIC pins high hopes on the future potential of the Gambheeram SEZ. As per the employment norm for old investors, they are supposed to create 100 jobs per acre. Those who were allotted land two to three years ago are being asked to generate 500 jobs per acre.

An official said Satyam Mahindra (earlier known as Satyam) was given seven years to create 1,200 jobs. It has still two years to go to meet the deadline. TCS and Infosys have not shown any interest to launch their operations in the city.

Visakhapatnam, which is being developed as an ideal destination for IT and IT-enabled services as a tier-II city, had a turnover of around Rs.700 crore during the last financial year.


  • Several entrepreneurs fail to take up any construction work at IT SEZ at Rushikonda
  • An allottee manages to relocate his proposed unit from Gambheeram to Rushikonda