The Hindu Business Line : Cisco Systems to invest $1 b in India

THE US-based communications networking major Cisco Systems Inc today announced an investment of over $1 billion in India. The investment, to be spread over three years, is the largest to be made by the company outside US.

Announcing investment plans, Mr John Chambers, President and CEO, Cisco Systems Inc, said, "Through the wisdom of its government leaders and the entrepreneurship of its private sector, India has risen to become a major force in the global economy.

"Cisco believes that the Internet, and related technologies, will be a key enabler for India to achieve its goal of becoming a developed nation. Cisco in India is truly a global success story."

Cisco plans to ramp up its workforce in India to over 4,000 employees from its existing strength of 1,400.

The three-year investment plan includes $750 million for research and development, $150 million towards providing leasing and financial solutions to Cisco's partners, $150 million in venture capital to invest in Indian start up companies and another $100 million in customer support operations.

Cisco will also set up a Next Generation Network lab for Bharat Sanchar Nigam Ltd in Chennai for $10 million. This will be the first such lab in the Asia Pacific region.

Of the total investment, Cisco has earmarked $750 million for R&D activities. The company has also entered into an agreement with the Government to support India's national e-governance plan.

Commenting on the initiatives, Mr Dayanidhi Maran, Minister for Communication and IT said, "Our association with Cisco Systems complements the Government's unique focus and vision for creating a broadband infrastructure and a network backbone enabling the government to connect with its citizens. We are confident that Cisco System's networking technologies will have a positive impact on the productivity, efficiency and the GDP of the country."

To support the e-governance plan, Cisco will establish the State Wide Area Network (SWAN) Advanced Technology Program. Under the program, Cisco will provide networking equipment for establishing a SWAN Advanced Technology Centre of Excellence in the various State Government headquarters in India.

These centres will serve as concept labs, which will enable the demonstration of technologies Internet Protocol communications, wireless and security.

Cisco will also support the Government initiative to establish `Common Service Centres' (CSC) by providing networking equipment necessary to build networking infrastructure for up to 100 villages.

These villages can then serve as models for the entire CSC initiative.

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