The Hindu Business Line : Orissa set to revamp policy on ICT

The Orissa Government is expected to come out with a revamped policy for the information & communications technology (ICT) sector in the early part of the next fiscal.

The State Government has already engaged Infrastructure Leasing & Financial Services (IL&FS) to prepare a comparative study of the best practices that are adopted and the incentives and concessions that are offered to the sector in States such as West Bengal, Kerala, Punjab, Rajasthan and Puducherry. A draft report in this regard is stated to be ready.

According to informed sources in Orissa's IT Department, a revamped policy is expected to be announced in early 2007-08 after the final report is received from IL&FS. "We may add some new concessions and drop some old ones," the sources said. The State's existing ICT policy was announced in 2004.

According to the sources, Orissa is emerging as a preferred regional hub of IT companies. Major players in the IT software spectrum such as Infosys, Satyam and TCS have already set up operations there even as other players such as Wipro are expected to commence operations by early 2007.

ITES major Genpact has firmed up plans to extend its footprint to Bhubaneswar. A total of 130 companies are registered in the two Software Technology Parks of India (STPI) located in Bhubaneswar and Rourkela. A third STPI will soon be set up in Berhampur in southern Orissa. The Centre has accorded its approval for four Special Economic Zones for the IT sector in the State.

Software exports from the State is expected to go up from Rs 500 crore in 2005-06 to Rs 2,500 crore by 2011-12. In the current fiscal, the State's earnings from software exports are expected to be Rs 600 crore. However, the IT sector in the State will register a higher rate of growth from the next fiscal when existing players ramp up their operations and new players commence operations . The number of people engaged in the IT & ITES sector in Orissa is expected to register a four-fold rise from the present level of around 12,000, sources said.