The Hindu Business Line : Janapriya Engineers plans low-cost office space for IT, ITES firms

Hyderabad, April 16 With the dollar getting depreciated by the day, it could get tougher for IT and ITES companies to pay the higher rentals as they used to when everything was fine.

With the industry still having to wait for one more Budget to know whether the tax sops would continue or not, a city-based real-estate developer, Janapriya Engineers Syndicate, is planning to develop low-cost accommodation for these companies.

The company, which has been focussing on developing low-cost residential space, has set its eyes on developing a multi-storeyed complex at Attapur and Kapra in Hyderabad. The company has a land bank of 27 acres and 36 acres respectively at these places.

“It is imperative for IT firms and BPOs to reduce expenditure as the dollar value depreciates. They cannot go on paying higher rentals for space,” Mr K. Ravinder Reddy, Chairman and Managing Director of Janapriya, told Business Line.

The company would seek SEZ status for the venture in order to make it a more attractive option for the companies, in case they did not get the renewal of tax sops next year. The company has already built a 3-lakh sq feet Fortune-9 facility in Somajiguda and has leased it out to IT companies.

Still hopeful

Meanwhile, Dr Anil Jampala, President of Hyderabad Software Exporters’ Association, felt that the industry was still hopeful of getting a renewal for the tax sops next year.

Admitting that the companies were experiencing pressure on toplines and bottomlines following the dollar downturn, he, however, felt that multinational companies would rather stick to the existing facilities where they were comfortably placed.

He also hoped that the proposed SEZ for small and medium companies by the Government would help the companies in that bracket.

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