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Following is from a report in Pioneer.

Chief Minister Naveen Patnaik on Friday laid the foundation-stone of the second-phase expansion of the Global Software Development Centre of TCS here at Kalinga Park Phase II.  …. The State Government, along with the Central Government, is setting up of an IT investment region in the State where IT and electronics hardware industry is an important component, he informed.

Patnaik said that to achieve the objective, industry-friendly ICT Policy-2011, IT Roadmap, Special Economic Zone (SEZ) Policy and IT Hardware Policy are being prepared to attract more IT industries to the State. The State’s IT export has crossed Rs 13,000 million during the year 2010-11 with direct employment of more than 10,000 persons.

… TCS Vice-President Projects B Sharma said that the second phase expansion is expected to be completed by March 2012, which would add 3,500 seats to the operation here. After the planned third phase, the total number of seats would be 11,000. The capital expenditure on different phases of expansion is estimated to be Rs 500 crore.

Following is an excerpt from a report in Business Standard.

The implementation of the proposed Information Technology (IT) investment region in Orissa will involve a cost of Rs 17,883 crore.

"The IT investment region would generate jobs for 0.23 million people and accommodate a population of around 0.54 million. More than 75 per cent of the investment will be made on the Public Private Partnership (PPP) mode”, an official source told Business Standard.

The state government has already submitted the final report on the proposed IT investment region prepared by IL&FS-Infrastructure Development Corporation (IL&FS-IDC) to the Government of India …

The IT investment region (ITIR) in Orissa is to be developed on an area of 40 sq km (around 10,000 acres) between Bhubaneswar and Khurda. The ITIR project is expected to be fully operational by 2020.

In the final project report on the ITIR, IL&FS-IDC had included among other things an airport, a global IT training centre, a bio-tech park and a science city spread over 350 acres. …

According to the project plan of IL&FS-IDC, 40 per cent of the area of the ITIR would be earmarked for the processing units of information technology (IT) and ITes sectors (IT enabled services) as well as electronics and hardware manufacturing units.

Following are links to earlier postings on this.

• Planning commission has given in principle approval for an ITIR in Odisha August 05th, 2010 
• Update on IT plans for Bhubaneswar July 27th, 2010
• Update on Infocity 2 in Bhubaneswar September 07th, 2009
• Proposed IT Investment region around Bhubaneswar July 28th, 2009
• Bhubaneswar ITIR of 40 sq km : IL & FS to prepare DPR July 10th, 2008

Following is an excerpt from a report in expressbuzz.

Meanwhile, the Planning Commission has given in-principle approval for setting up IT Investment Regions (ITIR), in Andhra Pradesh, Karnataka and Orissa. “We are seeking suggestions from other departments and respective state governments and over the next 3-4 months, we should be able to finalise the proposal,” Chandrashekhar said.

Pointers from the past:

• Update on IT plans for Bhubaneswar July 27th, 2010
• Update on Infocity 2 in Bhubaneswar September 07th, 2009
• Proposed IT Investment region around Bhubaneswar July 28th, 2009
• Bhubaneswar ITIR of 40 sq km : IL & FS to prepare DPR July 10th, 2008
• ITIR Policies: PIB April 13th, 2008
• Orissa shooting for another IT SEZ and an ITIR April 06th, 2008

For the last couple of years the IT industry growth in Bhubaneswar had slowed down. With the economic mood of the country back in the positive direction projects put in the backburner are now getting to the forefront. Following is an excerpt from a report in Telegraph.

… The proposed IT-SEZ will come up near the Infocity-II at Godakashipur, 15 km from the city. The project that included an integrated township would require 613 acres of land, IT minister Ramesh Chandra Majhi said.

“While the proposed IT-SEZ would be set up in an area of 320 acres of land, an integrated township would be developed in the remaining 180 acres of the total area. The rest would be kept in store to meet the future needs of the department," Majhi said.

As per the proposed plan, schools, colleges, hospitals, hotels and amusement parks would be developed. …

… the proposed SEZ would provide jobs to more than one lakh IT professionals. Another four lakh people would gain suitable employment opportunities in the project, which was scheduled to start its operation during 2011-2012 financial year.

“The Orissa Computer Application Centre (OCAC) will set up a seven-storied incubation tower. All small and medium scale entrepreneurs, engaged in the IT business, would be provided space at the centre at an affordable price. The centre would come near Acharya Bihar,’’ he said.

Construction of the incubation centre has already started.

So far, two IT parks are operational in the city. The government has already signed MoUs with DLF and Raheja groups to set up two more parks in the city. The fifth park will be set up by the government’s Industrial Development Corporation (IDCO).

Raheja group is planning to set up the IT park with an investment of Rs 1,000 crore in an area of 100 acres. The group has opted for a site near the Infocity of Bhubaneswar.

Real estate giant DLF is setting up another park with an investment of Rs 1,000 crore. The foundation stone has already been laid for the DLF Infopark, which would come up in phases on 25 acres of land and is expected to generate about 40,000 direct and indirect employment.

The minister claimed that the IT firms operating from the state had exported software worth Rs 1,198 crore during 2009-10 as against Rs 1,171 crore in 2008-2009.

Officials from the IT department said it was one of the few cities in the country that boasts of the presence of the big four of Indian software exports. While Infosys and Satyam have been in the city for quite some time, TCS has already recruited about 500 people after starting its operation in 2007.

Wipro, too, has started building its campus.

Nearly 12,000 people are directly engaged in the various IT industries.

… Moreover, along with the SEZ and IT parks, the state government is also planning to set up an Information Technology Investment Region (ITIR) in the capital city. It would come up near Jatni, about 25 km from here. If things go right, it can attract an investment of Rs 15,000 crore, official sources said.

This is all good. The government should start steering away some of the IT firms to Berhampur, Rourkela, Balasore, and Sambalpur.

Following are some excerpts from a report in Business Standard.

… The Infocity-II region is being developed by the Orissa government on over 600 acres of land at Janla between Bhubaneswar and Khurda. Infosys is set to be the anchor tenant of the region. Infosys has committed an investment of Rs 300 crore in the first phase of the project which is scheduled to be operational within 14 months of commencement of construction work.

Infosys has a headcount of around 3,500 at its existing city centre spread over 45 acres and would add 3,000 more people in the first phase of its expansion project. The second campus would have a pool of 5,000 employees in all.

“Infosys has sought 100 acres of land for their second campus in the city. In the first phase, we will allot 50 acres of land to the IT firm in the Infociy-II area”, Pradipta K Mohapatra, the state IT secretary told Business Standard. He hinted that the total investment of Infosys for its second campus may exceed Rs 500 crore. …

The state government has assured to provide water and uninterrupted power supply to Infosys for its second campus in the city. In 2008-09, Orissa recorded software exports worth Rs 1168 crore and Infosys had the lion’s share, accounting for more than 70 per cent of exports.

As per the estimates of the state IT department, the Infocity-II project would be fully operational by the end of 2012. The state government has already sanctioned Rs 150 crore for developing external infrastructure for the project like approach road, electricity and water.

The Infocity-II project would attract many IT firms and it would have a total manpower pool of 1,20,000, Mohaptra said.

The project is set to attract investments worth Rs 4,000 crore from IT ad ITes (IT enabled services) companies.

It would generate direct and indirect employment for about four lakh people in the information technology (IT) and ITes sectors. Presently, more than 18,000 professionals were engaged in the IT sector in the state while the ITes sector had a workforce of over 15,000.

The operationalization of Infocity II would also be a big boon for BIT (Bhubaneswar Institute of Technology) which is adjacent to that.

Following is an excerpt from a report in Business Standard.

The Orissa IT department has got its act together to expedite the Infocity-II project to be developed over 500 acres of land at Janla on the outskirts of the city. …

the state government is gearing up to keep the infrastructure of Infocity-II ready to welcome any IT firm keen to set up its shop in the city.

Towards this objective, the state IT department has now planned to go for a four-lane approach road connecting the Infocity-II project with the National Highway.

“We are committed to provide external infrastructure like roads, water and electricity for the Infocity-II project. The state IT department has engaged a consultant which is undertaking a survey work on the proposed four-lane approach road and the private land that needs to be acquired for the purpose”, …

Earlier, the state government had sanctioned Rs 150 crore for developing external infrastructure for the project like approach road, electricity and water.

While land acquisition for the Infocity-II project is already over, the construction of the boundary wall is underway. The state government is on the look out for anchor tenants for the project.

As per the estimates of the Orissa IT department, the Infocity-II project is expected to be fully operational by the end of 2012 and the project is set to attract investments worth Rs 4,000 crore from IT ad ITes (IT enabled services) companies.

The proposed Infocity-II project will generate direct and indirect employment for about four lakh people in the information technology (IT) and ITes sectors.

Presently, more than 18,000 professionals are engaged in the IT sector in the state while the ITes sector had a workforce of over 15,000.

The Infocity-II project would be a part of the proposed IT investment region in the state. The IT investment region (ITIR) in Orissa was to be developed on an area of 40 sq km (around 10,000 acres) between Bhubaneswar and Khurda.

The ITIR project in the state is expected to be fully operational by 2020.

Following is an excerpt from a report in Business Standard.

… IL&FS-IDC had earlier submitted its draft report to the state government in February this year. However, the project had to be reworked by IL&FS-IDC in the wake of the Centre’s proposal to develop an airport in the same area.

Sources close to the development said, the plan to develop the airport has been okayed by the state government and the proposed airport would be a part of the IT investment region.

The airport will come up on an area of about 2,300 acres close to the site of the Indian Institute of Technology (IIT), Orissa which is being set up over 835 acres of land at Jatni, about 20 km from the city.

… The IT investment region (ITIR) in Orissa will occupy an area of 40 sq km (around 10,000 acres) between Bhubaneswar and Khurda.

This ITIR project is expected to be fully operational by 2020.In the final project report, IL&FS-IDC had included among other things an airport, a global IT training centre, a bio-tech park and a science city spread over 350 acres.

The Infocity-II project being set up by the state government on over 600 acres of land at Janla on the outskirts of the city would also be a part of the IT investment region.

The ITIR would be developed in two phases out of which 20 per cent of the investment is committed for the first phase while the balance 80 per cent of the investment will come in the second phase.

The entire cost of the project is yet to be ascertained. While the Centre will provide external infrastructure for the project in the form of roads, the onus is on the state government to acquire land for the project.

According to the project plan of IL&FS-IDC, 40 per cent of the area of the ITIR would be earmarked for the processing units of information technology (IT) and ITes sectors (IT enabled services) as well as electronics and hardware manufacturing units.

The remaining 60 per cent of the area would be devoted to the non-processing facilities like research and development centre, technological institutes of national and international repute.

This apart there would be a central business district, an integrated township comprising social infrastructure facilities like schools, hospitals and shopping malls and external infrastructure like roads.

Following is an excerpt from a news report in Financial Express.

The Centre has selected Bhubaneswar as one of the 40 ITIRs planned in the country. It will provide financial assistance for development of infrastructures required for the ITIRs.

The state IT secretary, PK Mahapatra, said the Centre has aksed the state government to prepare the DPR so that fund could be provided for developing the infrastructures of the ITIR.

The detailed project report (DPR) for the Bhubaneswar ITIR will be prepared by IL&FS Infrastructures Ltd in collaboration with the state-owned Industrial Infrastructure Development Corp (IDCO).

The Centre plans to set up the ITIRs in line of the Petroleum, Chemicals & Petrochemicals Investment Region (PCPIRs) in the country to attract investment into the IT sector.

Mahapatra said the government has decided to put in place a new Information & Communication Tehcnologies Policy (ICT) in the state. The last ICT Policy was announced in 2004. The new policy will be formulated after studying the ICT polices of IT-advanced states like Karnataka and Andhra Pradesh, he said.

The chief minister, Naveen Patnaik, on Thursday reviewed the development taking place in the IT sector in the state at a high level meeting. The Infocity-II will come up at Jalna in the outskirt of Bhubaneswar over an area of 500 acres. A sum of Rs 150 crore will be spent for developing the new IT facility.

The government, meanwhile, has asked the IIT Kharagpur, which is preparing the master plan for the greater Bhubaneswar city, to ease the traffic for the Infocity-I. At the meeting it was told that the Software Technology Park (STPI) at Berhampur is going to be functional from the first week of September, 2008. Orissa has two STPIs at Bhubaneswar and Rourkela. Another STIP is coming up at Balasore.

Following is some additional information on this from a report in Telegraph.

In April 2008, the cabinet committee on economic affairs had cleared a policy to set up ITIRs over a minimum area of 40sqkm each. The Centre last month confirmed the identification of Bhubaneswar as one of the sites for the proposed ITIRs, he said.

The ITIRs have been conceptualised as magnets for investment creating employment opportunities and growth in the area. They are expected to reduce the pressure on existing urban centres by enabling growth of new townships and dispersal of industry. The regions would be a combination of IT, ITES and electronics hardware manufacturing units, public utilities, residential area, social infrastructure and administrative services.

Every state government is supposed to ensure provision of physical infrastructure such as power, water, road, transportation, sewerage and effluent treatment facilities, the Centre is supposed to facilitate development of national highways, airport and railway links for ITIRs.

Following is from http://pib.nic.in/release/release.asp?relid=37077.

The Cabinet Committee on Economic Affairs today gave its approval to the proposal to create Information Technology Investment Regions (ITIRs). These ITIRs would be endowed with excellent infrastructure and supported through investor-friendly policies. ITIRs were conceptualized keeping in view the need to boost the growth of both IT/ITES and Electronic Hardware Manufacturing (EHM) Units.

These regions would become major magnets for investment creating employment opportunities and economic growth in the area. Simultaneously, it will reduce the pressure on existing urban centers by enabling growth of new townships and dispersal of industry.

The regions would be a combination of IT/ITES and Electronics Hardware Manufacturing Units; Public uitilities, residential area, social infrastructure and administrative services. Such regions could include new integrated townships, SEZs, industrial parks etc. In the ITIR, there would be a clear delineation between the IT/ITES areas and Electronic Hardware Manufacturing areas. The ITIRs would generate direct and indirect employment during the construction and operational phases.

Each ITIR is expected to be a specificlly notified investment region with minimum area of 40 sq.kms. planned for IT/ITES and EHM Units. The minimum processing area will be 40% of the total area of the ITIR. The ITIRs will be developed in a phased manner.

The State Government would ensure that all physical infrastructure and utilities within its jurisdiction (power, water, roads, transportation, sewerage and effluent treatment facilities) are provided. The Central Government will facilitate development of National Highways, Airport and Rail links to the ITIRs.

The Public-Private Partnership (PPP) route is advocated for the development of ITIRs. State Government will select the developers/co-developers through a transparent process.

Following is an excerpt from a report in Pioneer.

Another SEZ (Special Economic Zone) is coming up in the State in the IT sector. Currently, the State has four SEZs in this sector.

It would be set up in 25 acres of land in Bhubaneswar on a Public -Private Partnership (PPP) mode. Electronic and Computer Software Export Promotion Council (ECS) and Larsen and Turbo (L&T) would provide the necessary support for establishment of the SEZ. Government will provide the land for this purpose. IT Minister Surjya Naryan Patro said … 1074 acres of land has earmarked for the development of IT services.

Till date Orissa has applied for 14 SEZs, of which 3 have been cleared, six given in principle clearance and five have received formal clearance from the Centre.

Meanwhile, the State Government has urged the Centre to sanction an Information Technology Investment Region (ITIR) to boost growth of IT and IT enabled services. The ITIR is being planned in the State will house space for hardware manufacturing units other than having provisions for new integrated townships, special economic zone and industrial parks.