Red tape stalls IT growth in Kakinada

Bureaucratic procedures happen to be a major hurdle for the development of information technology in Kakinada, the city that stood second in the State on the revenue front. Though its potential is much higher in Kakinada, there is equal scope for Rajahmundry for achieving faster growth in IT, provided the government curtails bureaucratic procedures and announces a start-up friendly package that suits a Tier-II city.

“In addition to registered firms, we have 56 unregistered firms that are in IT business in Kakinada. Minor changes to the government’s IT policy will definitely boost the industry here, as Kakinada is the most suitable place for IT among the three Smart Cities in the State,” says K. Krishna Reddy, CEO of Krifty Software Technologies and secretary of the Godavari IT Association (GITA). Meanwhile, allocation of land is major issue, as government norms are not suitable for small cities. “To attract companies, the policy needs to be made flexible. Linking workforce size with allocation of land is preventing several companies from ap plying for sites in the IT SEZ in Kakinada,” he adds.

Anand PAG Systems Limited, a US-based IT firm, has been seeking a site for the last 10 months in the IT SEZ. “Officials are asking us to ensure that we have 100 employees. Without starting operations, how can we bring such a huge workforce? Once we start operations, we can provide over 1,500 jobs in the next three years,” says Y. Nageswara Rao, director of the company.

He adds that district-level officials are aware of the issues at the ground level, but the higher-ups in the Secretariat cite norms. “In fact, officials force us to have second thoughts on our operations here,” Mr. Rao says.

Meanwhile, Mr. Krishna Reddy underscores the need for a brand ambassador for IT at the State level. “During his previous tenure, Mr. Chandrababu Naidu did branding and attracted companies. That kind of initiative is missing now. Though TCS is working for the Tirumala Tirupati Devasthanams, the billing is held in Hyderabad and Bangalore. This is how the State is missing a giant IT player,” he explains.

The Software Technology Parks of India (STPI) has achieved 100 per cent occupation at its facility . “Of the 12 start-ups, 10 started operations this year. There is a demand for similar facility in Rajahmundry,” says STPI Joint Director B. Suresh.