Representatives of the IT and ITES Industry Association of AP (ITsAP) called on information technology and communications minister Ponnala Lakshmaiah here on Thursday and submitted a tenpoint action programme to accelerate the growth of the information technology and IT-enabled services sector in the state. Association president V Rajanna led the delegation.
After going through the industry body’s recommendations, the minister said the state government would consider all of them positively.
“The recommendations presented by the industry will act as guiding principles in promoting IT in the state,” he said, adding that increasing the air connectivity to Europe and North America by direct flights would be pursued with the Union ministers concerned.
While appreciating the initiatives taken by the state government in attracting new investments, IT industry representatives said state was richly endowed with great professional talent, world-class infrastructure and a congenial business eco-system to make it a national leader in IT sector.
Recommendations
* Special incentives: Special incentives in the form of rebates and tariff concessions be offered to the industry along with package deal both software and hardware infrastructure to attract new investments.
* Quick clearances: The state government has to come out with a fast-track and direct singlewindow clearance system, including for land allotment, to attract fresh investments.
All stakeholders like APIIC, HMDA and other departments should be co-opted in this endeavour.
* Tier-2 cities: Investment in tier-2 cities has not yet happened the way it was envisaged.
A dedicated official of secretary rank should be nominated to come up with creative proposals to make tier-2 cities attractive investment destinations.
* E-infrastructure: The pioneering effort in e-governance needs to be further leveraged using digital platforms and bring the latest technology to scale up e-infrastructure.
* Physical infrastructure: The Outer Ring Road, along with MMTS and Metro Rail, could pave the way for decongestion of the city. But special-purpose business zones like banking and health care with integrated townships having adequate security features are needed.
* Support to start -ups: The state has potential for start-up companies in product, animation, digital environment and BPO segments. Rural BPOs should be considered in a big way. This will prevent flight of talent from Andhra Pradesh to other destinations. Necessary incentives, including tax concessions and support, need to be provided from the IT promotion budgets.
* Global fights: Hyderabad has a world-class international airport but it is not utilised to the full extent.
The industry feels that all major airlines should operate from Andhra Pradesh to major business centres in Europe, Far East and the USA which will go a long way in attracting global investors.
* Growth of SEZs: The existing constraints of 20 per cent on deployment of manpower from ongoing business to the SEZs need be reviewed to increase the employment potential and fresh capital investment in IT SEZs by major IT organisations.
* Popularising ITIR: The government should take urgent steps to get approval for the Information Technology Investment Region (ITIR) being planned around Hyderabad and make it a major zone for fresh investments.
* Talent development: The state government should improve the quality of the engineers including faculty development to improve the employability ratio of the students passing out of engineering colleges. Such efforts should also be extended to tier-2 and tier-3 locations.