VISAKHAPATNAM: Despite many odds, the IT industry in Visakhapatnam is booming and is expected to touch Rs1,100 crore turnover in the present fiscal.Though the government has announced many sops for the IT industry, in reality, not much is done in terms of infrastructure facilities.Several big companies are still not stepping into Visakhapatnam. Though there is a huge potential to boost IT business in Visakhapatnam, both district administration and state government are not making any serious effort in that direction.There are about 15 IT companies with around 8,500 employees operating in Visakhapatnam and another 25 companies are set to start business here.IT companies here fall under three categories: Those operating from the two IT Special Economic Zones at Madhurawada and Gambheeram; the export oriented units (EOU) at Visakhapatnam Special Economic Zone and local companies.Right now there are eight companies at Madhurawada and another 15 are at different stages of starting their operations. The state government invited the IT companies to set up shop in Visakhapatnam and assured them of all necessary infrastructure. However, still there is no captive power plant, water supply, bandwidth or even proper roads and street lighting at the IT SEZ.The government is only showing the land on the hills at Madhurawada and Gambheeram and asking the IT companies to set their units here.“In view of the recent political developments and financial uncertainties, a good number of IT companies are looking to Visakhapatnam. But the government should provide basic amenities like bank branches, roads, water, bandwidth etc to boost the IT industry here,” said O Naresh Kumar, chief executive officer of Symbayosis Technologies.The IT industry in the state achieved Rs 36,000 crore business turnover during the 2010-11 fiscal, of which Hyderabad accounts for a major share of Rs 35,000 crore. Visakhapatnam was next with Rs 900 crore and in the current fiscal we will touch Rs 1,100 crore, Naresh Kumar said.IT professionals are expected to shift to Visakhapatnam in big numbers from Hyderabad, Chennai and Bangalore for different reasons in the next two years, provided big companies start their operations here quickly.Mahindra Satyam, after several setbacks, is on track. The company announced recently that their present office is full with 1,200 employment and started a second building on the same premises. Recently, the company urged the Union Minister of State for HRD Purandeswari and Chief Minister N Kiran Kumar Reddy to provide 50 acres to set up a world class training and development centre here.Meanwhile, IT giant Wipro, though the whole construction work is complete on its seven-acre prime land in the heart of the city, is yet to begin operations.There are 35 good engineering colleges in the region and a big number of unemployed youth from West Godavari to Srikakulam districts hoping to find employment in Visakhapatnam.IT units enjoyed 15 years income tax exemption--100 percent during the first five years since inception, 50 percent in the next five years and a decreasing percentage during the subsequent fives. However, the Union Finance Ministry cancelled tax exemption to the IT industry recently. Also, 10 percent TDS and another 10 percent service tax is being collected from the foreign companies that set up units in the country. Industry leaders say such decisions are detrimental to the growth of the IT sector
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