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Over 20 small IT firms get nod to invest in Punjab

The Business Standard:  March 26, 2014

More than 20 small and medium enterprises (SMEs) in the information technology sector have recently received land allotment letters from the Punjab government for setting up their units with an investment of Rs 500 crore. Earlier, these companies had signed memorandums of understanding (MoUs) with the state government during the Investor Summit in December last year.

The companies that received allotment letters include Emerson Electric Company (India) Pvt Ltd. (which will invest Rs 51.73 crore); Knack BPO Pvt. Ltd (Rs 56.25 crore); Netsmartz Infotech India Pvt Ltd., Chandigarh (Rs 51.54 crore); Bebo Technologies Pvt Ltd (Rs 32.7 crore); Maxval Technologies Pvt Ltd. Belapur Station Complex, Mumbai (Rs 27 crore); Allengers Medical Systems Ltd. (Rs 25 crore); SE-Biz Infotech Ltd. (Rs 21 crore); Dr ITM Limited (Rs 20.61 crore); Xeam Ventures Pvt Ltd (Rs 16.74 crore); Aequor Information Technology Pvt Ltd (Rs 15.75 crore); Offshore A-One Technology Pvt Ltd. (Rs 12.85 crore); Kiran Foreign Trade Pvt Ltd (Rs 11 crore); and Cyber Futuristics India Pvt Ltd, UP (Rs 9.2 crore).

To ensure speedy implementation of these projects, land has been allotted to each company on lease for three years, and if any company fails to invest within the stipulated time, the MoU will be cancelled by the state government.

Handing over land allotment letters to the SMEs recently, Deputy Chief Minister Sukhbir Singh Badal said, "It is a just a beginning and in the next three years Mohali would be the first planned IT destination of the country, which would further give a big push to economic activities in the state."

In addition to these SMEs, software giant Infosys has laid the foundation stone for its campus spread over 50 acres and committed an investment of Rs 425 crore in the first phase to create a built-up area of 650,000 square feet to seat 5,000 software professionals within 24 months.

Further, the setting up of two Software Technology Parks of India (STPI) centres as well as state-of-the-art incubation facilities at Mohali and Amritsar are expected to play a pivotal role in promoting the IT culture in the state. The recently announced industrial policy also offers incentives to IT SMEs.

According to entrepreneurs, the handing over of allotment letters to SMEs and the new STPI centres will go a long way in encouraging new IT/ITES entrepreneurs to set up shop and start operations in the region.

The incubation facilities in the STPI centres will provide entrepreneurs with facilities such as ready to use plug-and-play facilities - including a data centre and a network operations centre - and a readymade business environment. The two centres are expected to be ready in the next two years.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

x IBEF : India Brand Equity Foundation