Monday, September 22, 2008

KERALA WOOS IT MAJORS THROUGH ROADSHOWS

D Govardan, Chennai, September 22, 2008
Financial Chronicle Business Standard The Hindu Business Line

Even as West Bengal struggles to overcome the Singur affair, Kerala, where again the red flag flutters high, is gearing up to woo the IT majors from across the country to set up their operations in the state.

It is betting high on the low cost of operations and cost of living as its USP. An array of visually stunning tourist locales to help to beat stress completes the marketing package of the state. "There is no politics, when it comes to development," said a beaming N Radhakrishnan Nair, CEO, Technopark, promoted by the Kerala government to develop IT Parks across the state.

"In fact, the Technopark at Thiruvananthapuram was conceptualised by a Communist chief minister, while the construction began under a Congress chief minister and now the expansion is being carried out once again when the Communists are ruling the state," he observed.

Nair was in Chennai to participate in a roadshow to attract IT investments to Kerala. The roadshow was conducted in association with Nasscom Southern Region and Technopark is planning similar roadshows in other major metros like Mumbai and Delhi, besides Bangalore.

According to him, the operational costs for companies are lower by 35 percent in Kerala, where the lease rental and real estate costs are lower by 45 percent, when compared to other states.

Water tax and power costs are also the lowest in the country. "Due to the low cost of living, the salary structure is also the lowest," Nair added.

With higher level of literature and an evenly spread urban facilities, Kerala is on its way in creating IT parks in most major cities in the state. Besides Technopark in Thiruvananthapuram and Infopark at Kochi, it is keen to promote IT parks in Kollam, Alappuzha, Thrissur, Kasargod and Kannur. "Around 50 acres of land is being set aside or being acquired in each one of these Tier – II cities to develop IT Parks," he said.

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