Cabinet nod for separate IT firm

The Kerala government has sought to decentralise the booming information technology industry by setting up a separate company to develop infrastructure for IT companies across the state.

The state cabinet that met here yesterday has given the go-ahead for establishing the company with private participation. The government will have 51 per cent stake in the company called IT Infrastructure Kerala (ITIK), Chief Minister V.S Achuthanandan told reporters after the cabinet meeting.

He said that a sum of Rs500 million will be set apart for the new venture in the coming financial year. The move is on the basis of the government’s IT policy, envisaging development of small towns with basic infrastructure for the IT industry in a hub-and-spoke model.

The government has identified 12 such towns. Work has already started for setting up IT parks in Palghat, Calicut, Aleppey and Quilon in addition to massive expansion of infrastructure in Trivandrum and Cochin, which have already emerged as major IT hubs.

While the government has joined hands with Dubai Technology and Media Free Zone Authority (TECOM) to set up a Smart City in Cochin, a Technocity is being built in Trivandrum as part of the Technopark to attract more IT companies into the state.

The IT industry now employs over 30,000 professionals. The government expects to create another 170,000 new jobs through the expansion of infrastructure at Cochin and Trivandrum. The number of IT jobs in the state could go up to one million with the development of infrastructure in small towns, according to experts.

The cabinet has also given approval for signing the agreement with the Pathi Bell for resuming the suspended road development works as part of the World Bank-aided Kerala State Transport Project.

The chief minister said that the government had succeeded in bringing down the arbitration claim made by the Malaysian company from Rs960 million to Rs35 million.

He said that the government would sign a fresh contract with the company and commence the work.

source:khaleejtimes