Visakhapatnam

Policy on Designated TechnologyParks comes under review

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Sequel to complaints on payment of huge amount for unused space

With complaints pouring in on payment of hefty amount for unused space in buildings taken on rent for allotment to startups and IT companies, the State government has launched an exercise to review the policy on Designated Technology Park (DTP).

Official sources told The Hindu that the DTP policy launched for 2017-20 by the previous TDP government was being placed before experts to bring about changes or come out with an alternative policy whichever is found to be a better option.

Touted as the first of its kind, the DTP policy was mooted to find out a viable solution to overcome office space crunch for IT companies by offering 50 to 70% rental guarantee for built-up office spaces for a period of 18 to 36 months leading to the charge that it helped promotion of real estate.

IT companies, who took space under the policy, were offered 50% reimbursement of space. Incidentally, in Visakhapatnam, a few buildings of IT companies at Rushikonda IT Special Economic Zone, new building of Tech Mahindra, VMRDA shopping complex at Seethammadhara and a mall on VIP road were taken on lease by the IT Department.

However, delay in occupation of space by allottees after issuance of allotment order, led to payment of huge amount by the government towards rent causing a burden on the exchequer. “This has to be reviewed while having a re-look at the policy. In fact, my suggestion is that to overcome the readymade space constraint, the government should facilitate construction of huge IT parks like Raheja Mindspace in Hyderabad with a built-up area of three to five lakh in Visakhapatnam to encourage MSMEs as well as big players to create jobs to locals,” Rushikonda IT Park Association vice-president O. Naresh Kumar has said.

Plea for revival

He says the IT tower at Visakhapatnam Special Economic Zone, Duvvada, sanctioned by the Ministry of Commerce for a data recovery centre with the sanctioned amount of ₹40 crore which subsequently lapsed and tower to house domain-specific innovation firms by VMRDA and Software Technology Parks of India at Siripuram should be revived.

Mr. Naresh Kumar has said there is no dearth of funds for both projects if the State pursued with the Centre to revive them for which allotment of land and viability studies have been completed.

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Printable version | Dec 11, 2019 5:54:39 PM | https://www.thehindu.com/news/cities/Visakhapatnam/policy-on-designated-technology-parks-comes-under-review/article28764066.ece

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