Information Technology Investment Region to come up near Hyderabad

The Cabinet Committee on Economic Affairs has approved setting up of Information Technology Investment Region (ITIR) near Hyderabad subject to fulfilling certain conditions. The Ministry of Road Transport & Highways, Ministry of Urban Development and Ministry of Railways will be initiating detailed feasibility study/action.

The total investment for the ITIR will be about Rs.2.19 lakh crore of which the IT/ITES (Information Technology / Information Technology Enabled Services) Sector is to attract investments of Rs.1.18 lakh crore and the Electronic Hardware Manufacturing (EHM) sector of Rs.1.01 lakh crore. The major investment will be from Public-Private Partnerships. Government of India has also proposed upgradation of three radial roads and extension of the Metro Rail from Falaknuma to Shamshabad International airport at total cost of Rs 3,275 crore.

The ITIR is expected to generate direct employment of 14.8 lakh and indirect employment of 55.9 lakh.

The Government of Andhra Pradesh has delineated an area of 202 sq. kms. for the proposed ITIR in three clusters/ agglomerations viz., (i) Cyberabad Development Area and its surroundings (ii) Hyderabad Airport Development area and Maheshwaram in the south of Hyderabad (iii) Uppal and Pocharam areas in eastern Hyderabad. The ITIR will be implemented in two phases. The Phase I will from 2013 to 2018 and Phase II will be from 2018 to 2038.

The ITIR is expected to develop into a key industrial region IT, ITES and Electronic Hardware manufacturing sectors. Special consideration will be given to accommodate Small and Medium Enterprises (SMEs) in the proposed ITIR.

Background : 

The CCEA had approved a Policy Resolution to set up Information Technology investment Regions (ITIRs) in different States/UTs in the country, to promote investment in IT/ITES and Electronic Manufacturing sector. The ITIR policy visualizes that the State Government would play the lead role in setting up of the ITIRs. The infrastructure would be created/upgraded through Public-Private Partnerships to the extent possible.

As per the policy, Central Government will provide the necessary viability gap funding for external physical infrastructure through existing schemes. The Department of Electronics and Information Technology (DeitY) is the nodal Department of the Government of India to process proposals relating to setting up of ITIRs. Based on the said Policy Resolution, the DeitY had written to all the State Governments to submit proposals for setting up ITIRs under the said policy. The present approval relates to the proposal received from Government of Andhra Pradesh for setting up of an ITIR near Hyderabad.