The city has witnessed a boom in real estate on the back of developing the city as a Tier II information technology (IT) destination.
Even during the elections all the political parties have committed themselves to developing the city further and realising its IT potential.
But the experience of the past decade shows that the growth has not lived up to the promises made or the projected potential.
Right now the real estate sector is going through a lean patch.
But what are the essential characterstics required for a city to grow into an IT destination and attract investments.
Youth expect that once IT grows in the city and its surroundings they don’t have to go to employment to Hyderabad or other metros.
However, it’s most important for investors to find that they can operate at a more cost-effective manner here than in the other cities, particularly in Hyderabad.
Citing the conditions in the city, keen observers of the IT scene say that first the quality of life in the city has to develop on all fronts for IT to find it congenial to come and work here.
The city has all the qualities like natural resources, human resources, a good hinterland etc. to become financial and industrial capital, says A. Govinda Rao, advisor, Visakhapatnam Information Technology Association. With the regulations further tightened the number of employees per acre has been increased from 100 to 300.
With the IT companies not being able to utilise the land, one has surrendered after being given a notice by APIIC. The Government has taken the land given to another big company and returned the money after it failed to develop the land.
Also employment is not commensurate with the floor space created by IT firms at the IT SEZ at Rushikonda.
It should present a picture of discipline and order with well-regulated traffic and investor-friendly atmosphere without having to bribe for a certificate or a building plan etc.
Anywhere it is a practice to create infrastructure like roads, connectivity, social infrastructure like schools first so that IT comes and starts functioning straightaway, says Mr. Govinda Rao. But we see a scenario where IT came first and waits for everything else to catch up.
Mr. Govinda Rao says the city and IT should grow hand in hand and improve the quality of life. But an IT incubation centre has come up at Kakinada.
In Visakhapatnam also what is needed is a plug-in facility for young IT entrepreneurs, he points out.
The BJP has promised development of smart cities and Visakhapatnam eminently suits the requirement.
VUDA also announced its plans to set up an IT incubation centre at Siripuram in the heart of the city.
One only hopes the moves will trigger the much-awaited growth.
Reality harshHowever, realty sector is going through a tough time because of the present situation.
With the government not being able to release funds and infrastructure projects being put on hold, the circulation of money has almost come to a halt.
The IT jobs created have definitely provided employment but they are not the kind that would give a spur to the realty sector, says architect Y. Narasimha Rao.
“We can’t look at them as working as a catalyst for housing,” he says. He is of the view that IT has neither resulted in any significant demand for housing nor brought about any transformation.
On the other hand, only who were able to plan and complete their ventures during the boom time exploited the situation. But the others who started their ventures expecting to reap the dividends are stuck, he points out.
Even if one is left with two plots that hit the builder hard, Mr. Narasimha Rao says. He is of the view that for the engines of economy to move money has to be pumped by the new government. That itself will take up to a year to make things move. Even if the new government initiates measures to boost IT, it will take time to have its impact, he opines.
