AP expects Rs 16,000-cr investment in IT sector

Amit Mitra, Hyderabad
The Hindu Business Line
Despite recessionary trends, the Andhra Pradesh Government is bullish on investments in the IT& ITES sectors in the State.

The Government expects the IT-related SEZs and Software Technology Parks of India (STPI) in the State to receive about Rs 16,000 crore investments in the next five years.

It has so far received investments worth Rs 3,739 crore, with the State exporting IT products worth Rs 32,509 crore last fiscal, recording a 24.5 percent growth.

An area of 65,32,044 square metres is proposed to be built up in the State IT-related SEZs and STPI, with the built-up area being 4,47,747 sq metres. Out of this, the allotted area so far is 1,91,734 sq metres and the balance area of 2,56,013 sq metres is ready for allotment, a senior State Government official said.

Last fiscal, 69 new IT/ITES companies registered as STP units in the State. The major companies that got registered include Patni Computer, Mediatex India and Mphasis Ltd. As of now, there are about 350 new formal approvals, out of which 39 have already been notified.

Visakhapatnam is emerging as the next IT hub, with IT exports from the city being Rs 502 crore last fiscal, followed by Vijaywada and Tirupathi, which clocked Rs 62 crore and Rs 2.74 crore respectively.

An interesting feature in the exports has been the efforts by the software exporters to scout for new global markets, managing to reduce their dependence on the recession-hit US market from 61 percent in 2007-08 to 52 percent in 2008-09, at the same time increasing its share in the European market from 20 percent to 26 percent during this period.