The Hindu Business Line : Karnataka to clear infrastructure bottlenecks to aid IT growth

(From right) The Karnataka Chief Minister, Mr Dharam Singh; the Wipro Chairman, Mr Azim Premji; the Deputy Chief Minister, Mr S. Siddaramaiah, and the Chief Executive Officer, Infosys, Mr Nandan Nilekani, at a meet to discuss Bangalore's infrastructural issues on Tuesday. — G.R.N. Somashekar

Bangalore , Aug. 10

THE Karnataka Chief Minister, Mr Dharam Singh, assured the IT industry chieftains on Tuesday that his Government was committed to promote the growth of the sector in the State.

Mr Singh, who met the IT leaders including the Wipro Chairman, Mr Azim Premji, and the Infosys CEO, Mr Nandan Nilekani, said that the sector was not being ignored by the Government and promised to clear the infrastructure bottlenecks.

"We had a free and frank talk with the industry leaders on basic infrastructure, roads, flyovers and other issues. My Government is committed to do anything to promote the development of the IT sector in Bangalore city," Mr Singh told reporters after the meeting. The coalition government, Mr Singh said, had committed itself to be pro-poor and pro-farmer, but it would not hinder the progress in urban centres.

Mr Singh had sought to meet the industry leaders after IT companies had complained of poor infrastructure limiting their growth opportunities in the city. Wipro had even gone to the extent of declaring that the company would stop its expansion in Bangalore and look at other cities.

"The discussions were fruitful," said Mr Azim Premji. The Karnataka Deputy Chief Minister, Mr Siddaramiah, is expected to hold talks with Mr Premji on the increase in sales tax on IT products as proposed in the recent state budget. Karnataka had hiked sales tax on IT products from 5 to 12 per cent.

Mr Nandan Nilekani, who is also the Chairman of the Bangalore Agenda Task Force (BATF), a public private forum for improving infrastructure in the city, said, "In the last five to six months, there has been a perception and a measured slowdown in completion of projects and you see that in the (unfinished) flyovers."

"Bangalore contributes about 36 per cent of India's software exports, if we have to sustain the market share, much will depend on the infrastructure," Mr Nilekani said even while dismissing that there was any flight of capital from the city due to infrastructure problems.

Mr Nilekani said that the IT industry has suggested to the government to double the professional tax levied in the state. This will lead to an additional mop up of Rs 60 crore - Rs 70 crore, which then could be ploughed back into the city, he added.

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