Hyderabad ITIR to attract investments to the tune of 2.19 L Cr
The approval for the establishment of an Information Technology Investment Region (ITIR) in an area spread over 202 sq km, in and around Hyderabad, was given by the Government of India. Various facilities are being planned within the ITIR, that includes Special Economic Zones (SEZ), Industrial Parks, Free Trade Zones (FTZ), Warehousing Zones, Export-Oriented Units (EOU), growth centres as well as existing settlements along with a consortium of other specialised services. The proposed ITIR will be developed to be a self-contained integrated knowledge cluster which would lay emphasis on the establishment, growth and development of units in the IT, ITeS and electronic sectors.
During the first 25 years of the project implementation period, the proposed ITIR is set to attract investments to the tune of Rs. 2.19 crore. The completion of the first phase of the proposed project is expected by 2018. According to the Information and Public Relations minister of Andhra Pradesh, this move by the central government is likely to bring in funds of approximately Rs. 5,000 crore that can be utilised to improve the basic infrastructure in the areas that fall within the purview of the proposed ITIR. Besides, it can also be employed to attract new investments.
Areas identified for the project:
As per a state government release regarding the areas under which the proposed ITIR is set to be developed, some of the areas identified for the purpose include pockets of area that come under the existing IT campuses developed under the Cyberabad Development Authority, land parcels in Gachibowli and Madhapur, and also extends to areas in the vicinity of the Hyderabad International airport as well as to various areas towards to the west of the city, that include land pockets in areas like Mamidipalli, Adibtala, Raviryala, Uppal, Maheshwaram and Pocharam.
Monetary benefits from the project:
The proposed project is set to throw up some excellent benefits that include direct revenues that could extend to upto Rs. 3.11 lakh crore, IT exports growth that could amount to approximately Rs. 2.35 lakh crore, providing employment opportunities for upto 1.5 million people, and tax revenue increase to the state that could be in the range of over Rs.30,000 crore.
IT sector given prominence:
Hyderabad has excellent infrastructural facilities required for the development of IT companies, which has resulted in more than 1,200 IT companies setting base in Hyderabad. Most of the Indian and global IT majors like Microsoft, TCS, Google, Infosys etc have established their campuses in the city. As a result, the state’s contribution to the national IT exports is in the region of about 12.4% as estimated in 2011-12, which amounts to approximately Rs. 40,646 crore, as per the information obtained from government sources. Moreover, according to information obtained from the data belonging to Software Technology Parks of India, IT companies across Andhra Pradesh occupied about 60 million sq ft of office space in 2012.
Impact on Realty sector:
Areas like Gachibowli, Madhapur, Uppal, and Pocharam in which the proposed ITIR is set to be developed have already a land appreciation rate of between 5-10% annually, which is set to appreciate further as the work on this project gains momentum. Since developable land in these areas is scare, prices for residential properties will come at a premium, more so, with the coming up of the ITIR. In the case of other areas like Mamidipalli, Adibtala, Raviryala and Maheshwaram, which come under the purview of the proposed ITIR, where developable area is easily available, there is considerable potential for developers to tap into these markets at an opportune time so that they can bite into a larger piece of the pie.
