Staff Reporter

Only big IT companies, listed among Fortune 500, get all the concessions

  • Land auctions hit growth of medium-sized IT firms
  • Medium-sized segment mostly left to fend for itself
  • Contribution of smaller firms cannot be ignored
  • Small units could be allotted space in IT parks

    HYDERABAD: The Government may have been pro-active in providing all facilities to attract IT majors to city but medium and small-sized IT companies are feeling the pinch following the escalation of land prices.

    The recent land auctions have adversely affected the growth plans of medium-sized IT companies. While the big IT companies listed among Fortune 500 get all the concessions right from allotment of land, waiver of tax for their units in special economic zone and host of other concessions, the medium sized segment is mostly left to fend for itself.


    An NRI who wants to expand operations of the subsidiary IT unit for a major offshore contract says, "We are here to function and not to speculate. We wish the Government allots land to small and medium sized IT companies at a fixed cost. The contribution of smaller companies to the State economy cannot be ignored," he argues.

    For instance, an IT major like Wipro, Infosys may employ thousands of people but half a dozen medium units too can generate employment opportunities on par with a big company in a shorter duration, the NRI, dealing with off-shore credit card processing facility that requires highly sanitised environment says.

    The potential of SMEs to generate similar spin off benefits cannot be underestimated.

    `No provision'

    HUDA has proposed Special Economic Zone in Kokapet to allot land to Fortune 500 companies at concessional rate.

    But it says IT policy has no provision to provide plots to small companies.

    Such small units could be allotted built up space in IT parks under `plug and play' concept.

    "All facilities will be provided in these IT parks where smaller companies could straight away start functioning," said HUDA Vice-Chairman Jayesh Ranjan.

    But the NRI who approached the Government says there are certain security sensitive issues in projects like credit card processing where reputed global parent companies insist on certain facilities.

    The authorities will have to keep such special requirements too in view, he points out.