Telangana seeks more central funds for ITIR

Telangana Chief Minister K. Chandrasekhar Rao Saturday urged the entre to provide more than the Rs.165 crore sanctioned for creating an Information TechnologyInvestment Region (ITIR) in Hyderabad.

He made the request when Minister of Communications and Information Technology Ravi Shankar Prasad called on him here.

KCR, as the chief minister is popularly known, said that the central government's support of Rs.165 crores for the first phase of ITIR is inadequate and needs to be increased.

Responding positively, the union minister advised the state government to send a formal request to his ministry, said an official release from the chief minister's office.

ITIR is to be set up to promote investment in Information Technology (IT)/IT Enabled Services (ITES) and electronic hardware sector. The government has identified area of 202 sq.kms (49,913 acres) in and around Hyderabad.

The ITIR is expected to attract a total investment of about Rs. 2,19,440 crores of which the IT/ITES sector will account for Rs. 1,18,355 crores and the Electronic Hardware Manufacturing (EHM) sector Rs. 1,01,085 crores.

The state government has sought from the Centre Rs. 4863 crores (Rs. 942 crores for phase-I and Rs.3921 crores for phase-II) for creation of external physical infrastructure. The Centre has approved Rs. 3,275 crores (Rs. 165 crores for phase-I and Rs. 3,110 crores phase-II).

KCR told the minister that the IT companies which already have presence in Hyderabad want to expand and need facilities for education and health in ITIR.

Prasad noted that Hyderabad is a place of excellence in many ways and also appreciated the state government for its new industrial policy. IT minister K.T. Rama Rao, Chief Secretary Rajiv Sharma and others were also present.

http://www.business-standard.com/article/news-ians/telangana-seeks-more-central-funds-for-itir-114121300240_1.html

All help for setting up ITIR in TS: Union Minister

The Hindu

Mr. Prasad asked the Chief Minister to send detailed proposal on the State’s requirements in setting up ITIR.

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economy, business and finance

computing and information technology

Union Minister for Communications and IT Ravi Shankar Prasad has assured Telangana Chief Minister K. Chandrasekhar Rao that the Centre will cooperate with the State in providing infrastructure in the Information Technology and Investment Region (ITIR) project in Hyderabad.

He announced sanctioning of separate postal circle to the Telangana State and complimented the State government for its development initiatives.

In a meeting with the Chief Minister in the Secretariat on Saturday, in which Telangana IT Minister K.T. Rama Rao, Chief Secretary Rajiv Sharma and other officials were present, the Union Minister said IT companies which already have their operations in Hyderabad could set up their extension units in ITIR.

The Telangana IT Minister and officials made a power-point presentation on the development of IT sector in Hyderabad, exports and employment opportunities. The Chief Minister requested the Union Minister to increase the Central assistance to ITIR stating that Rs. 165 crore announced already was inadequate.

Responding to the request, Mr. Prasad asked the Chief Minister to send detailed proposal on the State’s requirements in setting up ITIR. He stated that Hyderabad had already gained recognition as an international IT hub and the Centre was ready to help Telangana in the development of communication and IT sectors further.

Mr. Chandrasekhar Rao explained about the new industrial policy unveiled by the State government recently and its plans to announce a new IT policy soon, both aimed at the economic growth of the State.

Further, he mentioned that the National Geographic had recently identified Hyderabad among the top tourist places in the world.

After presenting a copy of the new industrial policy to the Union Minister, Mr. Rao said the State government had already identified certain places for ITIR and the IT companies already operating from Hyderabad were planning to expand their facilities there, which needed the best infrastructure in education and health.

He explained that the State government had already sought an assistance of Rs. 4,863 crore for creation of infrastructure for ITIR, including Rs. 942 crore for phase one and Rs. 3,921 crore for phase two and the Centre had approved support to an extent of Rs. 3,275 crore -- Rs.165 crore in the first phase and Rs. 3,110 crore in the second phase.

http://www.thehindu.com/news/national/telangana/all-help-for-setting-up-itir-in-ts-union-minister/article6689358.ece

Genpact to set up 50-acre SEZ at Jawahar Nagar

Global business and technology outsourcing services major Genpact is planning to expand its presence in the state. The company is working on a plan to set up an IT/ITeS special economic zone (SEZ). The techno-campus is expected to cost about Rs 121 crore and employ about 5,000 professionals. According to a government statement, the SEZ will come up at 50-acre Huda land in Jawahar Nagar at Shameerpet. The 10-lakh sft space that would be created in the new campus would be for Genpact’s captive use. 

The government and Genpact on Friday entered into an agreement for setting up of the campus. “Over the past few years, Genpact contributed significantly to the IT development in the state and we are happy to extend this association further. We hope that Genpact will act as a catalyst for other IT companies to invest in the state,” IT minister R Damodar Reddy said in a statement. 

Genpact provides business services and technology solutions for various global majors including General Electric Inc. Genpact also offers finance and transaction processing services for companies around the world in dfferent industry segments including banking, financial services, insurance, manufacturing and transportation. The comapny has an annual turnover of about Rs 2,700 crore with an employee base of over 30,000. The company’s operations in the state contribute over Rs 679 crore for 2006. 

In Hyderabad, Genpact has a 26-acre campus at Uppal with a constructed area of 5 lakhs sq ft and employs over 8,000 professionals. Genpact has so far invested Rs 276 crore in creating these facilities. 

http://www.exclventures.com/newslink-126.asp

SAIL studying feasibility of setting up steel plant in Telangana

NEW DELHI: State-run steel producer SAIL is preparing a feasibility report for setting up an integrated plant inTelangana.

"SAIL was asked to examine the feasibility of establishing integrated steel plant in Khammam district (of Telangana) and submit the feasibility report within the appointed date. Accordingly, a feasibility report is being prepared by SAIL," Minister of State for Steel and Mines Vishnu Deo Sai said in a written reply to the Lok Sabha.

He further said that as per the 13th schedule of the Andhra Pradesh Reorganisation Act, 2014, SAIL is to examine the feasibility of setting up the integrated steel plant within six months from the appointed day, that is, June 2, 2014.

Replying to another question on the steps being taken by the government to set up industries based on the steel, he said, "Steel is a deregulated sector and the decisions...are taken by the project proponents, keeping in view the market dynamics and techno-economic viability of projects."

He further said that three million tonnes per annum (MTPA) steel plant at Nagarnar, Chhattisgarh, is being constructed by NMDC. "The project is at construction stage," he said.

By the next fiscal, SAIL's Rs 70,000 crore modernisation and expansion programme would be over raising its capacity to 24 MTPA. Post-2016, it will embark on another expansion programme for raising capacity further to 50 MTPA by 2025 with around Rs 1.5 lakh crore outlay.

http://articles.economictimes.indiatimes.com/2014-12-01/news/56614439_1_steel-plant-nagarnar-feasibility

Why some AP industrialists in Hyderabad are looking east

Less than a month since the official division of Andhra Pradesh, many firms established in Hyderabad and in other districts of Telangana state are looking east. Owned by those from the coastal Andhra and Rayalaseema regions, their reasons to move out of Telangana however, vary. While some want to be part of the development process of the residuary Andhra Pradesh, others are smelling a good business opportunity if the new state offers generous tax incentives. Some others feel they will be short of opportunities in a Telangana state that will like to give preference to its own entrepreneurs.

Sanjay Devulapalli and Sai Ramesh started Malloc Solutions, an IT company, in Hyderabad in 2007. Sanjay is from Telangana while Ramesh is from coastal Andhra. Now with the borders redrawn, the partners have decided to branch out as well. The decision was also motivated by Ramesh's desire to work out of Visakhapatnam, his hometown. So Malloc Solutions will now set up a unit in the city of destiny in addition to its operations in Hyderabad.

"We have been thinking about in the last three months since the elections happened. For me, it was a business decision. If the state of Andhra Pradesh is going to give some exemptions and encourage business, especially since we are into e-governance, we see an opportunity," says Sanjay Devulapalli. "For me, it was most definitely an emotional decision to go back to Vizag," says Sai Ramesh.

The reasons are different for Lakshmi Prasad, prinicipal consultant with Soham IT services. He feels he is being treated as a second-class entrepreneur in Telangana state.

"Yes, we are also going for business reasons but there is an underlying emotional reason as well. I have studied in Nizamabad in Telangana and have been here since 1983. Yet I feel that the manner in which the state is divided, there is now a glass ceiling. The emotional factor is impacting our business. Even the clients are backing out and looking at us as Andhra companies and have second thoughts about doing business with us," says Prasad.

A few entrepreneurs especially in the manufacturing sector, who did not want to be named, said a few Telangana clients are withdrawing orders, indirectly pushing those with Seemandhra roots out. What is worrying them also is the demand of the Telangana Joint action committee that is placing restrictions on the kind of labour they employ. Prof M Kodandaram, Chairman of the TJAC says, "About 70 to 75 per cent of the jobs pertaining to skilled and semi-skilled category should be reserved for local people. This includes operators and people below that."

But not everyone is convinced that shifting to Andhra Pradesh at the moment is a good idea. IT honcho Raghu Sakuru says none of the cities in Andhra Pradesh compare in terms of infrastructure with Hyderabad and therefore, it makes little sense to move out of an established IT centre.

But the Chandrababu Naidu government is already gloating over the early gains, in terms of a spike in firms queuing up to register themselves in Andhra Pradesh. "Naidu has international image and is a brand. Industry has confidence on him about permission and law and order. That is why businessmen are more attracted towards Andhra Pradesh," says C M Ramesh, TDP MP. Jitender Reddy, leader of the TRS parliamentary party pooh-poohs the claim saying Telangana is a new brand while Andhra Pradesh is an established brand. "These are teething problems in Telangana. It is a hare and tortoise story. They will do things in a hurry. We will do it slow and steady,'' says Reddy.

But just as Rome was not built in one day, Andhra Pradesh will face a long gestation period. Not just infrastructure, even quality manpower faces a question mark in Naidu land and that will prompt many from the state, working in Hyderabad, to stay back despite the problems. But the early flight of entrepreneurship, even if it is a trickle, is not something that will help Telangana's brand equity.

Read more at: http://indiatoday.intoday.in/story/why-some-ap-industrialists-in-hyderabad-are-looking-east/1/369049.html

Telangana government to spend Rs 30,000 crore on roads, skyways in Hyderabad

HYDERABAD: The Telangana government today said it would spend Rs 25,000-30,000 crore in a phased manner towards development of road and construction of skyways in Hyderabad, in a bid to give facelift to the capital city. 

"For the development of roads, a three-pronged strategy- improvement of roads, new city development and the Hyderabad Metropolitan Development Authority area development, is necessary," a statement quoted Chief Minister K Chandrasekhar Rao as saying. 

Read more at:
http://economictimes.indiatimes.com/news/politics-and-nation/telangana-government-to-spend-rs-30000-crore-on-roads-skyways-in-hyderabad/articleshow/45161932.cms

Inorbit to invest Rs 1400 crore on 8 malls

Moving away from the urban lifestyle centre format, Inorbit was looking at developing open malls in the value retail format as well. Of the eight malls in progress, two would be in the value retailing format and would be at Pocharam near Hyderabad and at Baroda.

This new Inorbit brand would be called "The Village', said Kishore Bhatija, chief executive officer of Inorbit. The Hyderabad mall would open by March 2009.

In keeping with the name, these would be located away from city centres and would offer brands at affordable prices or at discounted rates.

Shoppers' Stop, another Raheja group company, was an unlikely anchor tenant for 'The Village' as it catered to the more upwardly mobile city population, Bhatija admitted.

He said getting land at a suitable price was a challenge for mall developers and these away-from-city malls could provide a cost advantage in that way.

Inorbit currently had a mall at Malad in Mumbai with retail built-up space of around 600,000 square feet. It would add another 4 million square feet of retail space by 2010 at Pune, Hyderabad, Bangalore and Mumbai. Its mall at Vashi, Navi Mumbai, was expected to open by October.

http://www.business-standard.com/article/companies/inorbit-to-invest-rs-1400-crore-on-8-malls-108071601044_1.html

All eyes on the east now

There is a concerted effort to direct construction and infrastructure development towards the eastern corridor of Hyderabad

In the decade or more since the IT sector arrived in Hyderabad in a big way, real estate development has been focused mostly in the western parts of the city. It metamorphosed the landscape in these parts and in expanding circles encompassed more and more locations.

From a sleepy little hamlet, Madhapur changed into the most-sought-after address and hugely impacted real estate activity in the city. It stretched to Gachibowli, Nallagandla and Tellapur on one side and brought into its fold of development Hafeezpet, Kukatpally and Miyapur on the other side.

Along with IT came residential and commercial growth and property prices scaled to levels unimagined in pre-IT days. And the middle class particualrly, despite yearning for a slice of property in this corridor, clearly feel left out given the high price tags.

Is it time to look beyond the western parts and turn the gaze towards the eastern parts of the city? Could the much awaited Metro Rail project usher in this change and result in a real estate boom here?

During the inauguration of the AP Real Estate Developers’ Association (APREDA) property show in Hyderabad last week, the Minister for Municipal Administration & Urban Development, Maheedhar Reddy set the tone for this with his remarks.

“The growth is only towards Gachibowli and the western parts, some say. But the eastern side of the city too is going to be developed soon with the Metro Rail,” he said. Buttressing his argument, the minister pointed out that real estate prices are already going up in places such as Uppal.

A conference ‘Real Estate: Accelerating The Growth Story’ which was part of the property show took the point further with the Hyderabad Metro Rail (HMR) Managing Director, N.V.S. Reddy, citing a trend world over on cities reorienting themselves to the mass transit system. “Along the growth corridors of the mass transit system, property prices behave differently,” he quipped.

The Hyderabad Metropolitan Development Authority (HMDA) Commissioner, Neerabh Kumar Prasad too was vocal in his support of the premise. The HMDA in tandem with the HMR is working ‘intensely’ on the concept of transit-oriented development (TOD) for the 63 Metro stations, he said.

A certain radius around these stations is proposed to be notified with a scheme for high-rise development. Special investments too will be offered for those participating in this growth and it includes the facility of directly connecting properties with Metro stations in the form of skywalks.

Overall, for the city, Prasad raised the possibilities of development along another major infrastructure project, the Outer Ring Road. He suggested land pooling on sectors of the growth corridor with HMDA providing the infrastructure, and roads and projects coming up possibly on the PPP mode.

Government officials also elaborated on various other initiatives taken up in the city that could propel the growth further. On the city not really picking up in manufacturing sector development, Prasad said that despite efforts made in the direction, the sector had not picked up.

“But we have defence and aerospace industries besides IT. Hyderabad is developing even if perhaps differently from other cities such as Pune or Chennai,” he remarked.

However, real estate in the city was not really catering to the majority of the population that is looking for affordable housing. This is where the real demand is, where price tags do not cross the Rs. 20 lakh mark, he said.

http://www.thehindu.com/todays-paper/tp-features/tp-propertyplus/all-eyes-on-the-east-now/article4103972.ece

Hyderabad-Warangal corridor to spur growth

The announcement of the Hyderabad-Warangal industrial corridor has sent real estate players scrambling to develop office and residential projects in the eastern side of the city.

Uppal, Pocharam and other areas in the east are already part of the IT revolution, with leading names like Infosys and Genpact, among others, having campuses in the area.

With a stretch of the metro rail project — which will have one of its depots at Nagole near Uppal — nearing completion, there will be demand for residential projects in the vicinity, according to property developers.

According to C Shekar Reddy, national president of the confederation for real estate developers and associations of India (Credai), there are several projects in full swing or in the planning stage towards Pocharam and beyond. The industrial corridor, a two-hour drive from Hyderabad, will increase the demand for housing, he said.

"The focus should be on getting big IT companies," he says. "They should start operations even with 150-200 people in the initial phases. The ITIR project also spans this region. The outer ring road is already operational. Then there is a plan for a regional ring road with a radius of about 70 km. With these plans, the eastern part of Hyderabad is poised for a leap.”

According to DSL Infrastructure and Space Developers managing director Manoj Kumar Agarwal, the company has begun work on DSL Abacus, an IT office and mall space project. This would cover about 8 lakh sq ft, of which 5 lakh sq ft would be devoted to offices and 3 lakh sq ft covered by the mall.

“Uppal and adjoining areas will be key markets in a few years. There is a lot of manpower available in these areas. At the same time, there are not many leisure and recreational spots for the IT crowd at this point of time. We want to fill this gap,” he said, adding that the project would be completed in about two years.

The company has already tied up with PVR Cinemas for the mall and has signed three IT clients too, he said adding that the rentals for Grade A IT office space in Uppal and surroundings would be about 50 per cent less compared to similar properties in the west side of the city, namely Hitec City, which has IT office clusters now.

Rentals in Uppal are around Rs 28-30 per sq ft compared to Rs 50-55 prevalent in key micro markets of Hyderabad, he said.

Agarwal said the area will see a planned development as Hyderabad metropolitan development authority had plans to develop about 500 acres into a residential township in the eastern side of the city. Also, a new city masterplan was in the making, he said.

Uppal already houses NSL Arena, an IT SEZ with about 7 lakh sq ft area. The first phase of the project is complete and the plan is to take up the second phase in early 2015. Two more phases will follow later.

HSR Ventures managing director D Srinivas Reddy is planning residential projects at Adibhatla, Hastinapuram and Uppal. The first two could be apartment projects and the last would feature independent houses.

“These projects are still in the planning stage. But eastern part of the city is high on our agenda. This part of the city will attract a lot of IT and related companies to set up operations. There are people who are now traveling to western part of the city for work. The metro rail project will be a lifeline,” he said. The company has recently built a high- rise project Amrut Akash near LB Nagar.

Another player, SatyaVani Green Homes, is launching its 15-acre Ushodayam Green Homes project at Annojiguda on the Warangal highway. On completion, it would have 1,800 units and could cater to the needs of Infosys, Genpact, Mindspace and other organisations setting up operations in the eastern part of Hyderabad.

http://www.mydigitalfc.com/news/hyderabad-warangal-corridor-spur-growth-809