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Saturday, September 19, 2009

NURTURE CORRIDOR LUCKNOW-KANPUR

LUCKNOW: In my view, it is the lingering negative perceptions that hamper the high-tech industrial activity in Uttar Pradesh today.



Despite the efforts made by UP government the state is still perceived as one suffering from complex and deterrent tax structure, too much government with fragmented approach, poor work ethics, poor infrastructure (roads, electricity, connectivity, airports), lack of venture capital and overseas investments, antiquated labour policies and laws, lack of availability of skilled IT manpower, and finally lack of technological innovation in the state.

To enable the state share a piece of IT prosperity, it is essential to minimise these negative perceptions. It may be possible to reform and improve of some fronts, but the infrastructure improvement, innovation and venture capital availability requires tremendous resources.

For that reason, rather than trying out a pork-barrel politics based approach, the Government should identify and focus on a single region at a time. I believe Lucknow-Kanpur corridor can be nurtured to incubate the IT industry by developing a zone of enterprise activity, where all these impediment are fully removed. The successful model of the zone can then be transplanted at other regions as well.

For development of technology intensive industrial corridor the five ingredients are essential. They are a) Availability of technology and technical manpower; b) Infrastructure; c) Business-friendly policies; d) Quality of life; and e) Local business opportunity.

The state of Uttar Pradesh with IIT-Kanpur, IIM-Lucknow, IIIT-Allahabad, BHU-IT, MNR Engg College, HBTI and 60 newer engineering colleges has been fast positioning itself as center of technology and technical manpower.

More established institutes like IIT-Kanpur, University of Roorkee (now IIT, Roorkee in Uttaranchal) and IIM-Lucknow have produced successive generations of computer professionals, who have spread all over the world and have been pioneers in the ICT revolution. Many of these people occupy high positions or have founded international ICT companies that shape the growth of ICT revolution.

Improving and guaranteeing a quality infrastructure requires scarce resources, but by focussing on selected regions like NOIDA the state has demonstrated ability of building centers of industrial excellence. The city of Lucknow, also the constituency of prime minister, stands at par with the best in the country as far as the infrastructure and quality of life is concerned.

The business friendly policies adopted by the state government in the information technology sector have attracted network infrastructure providers like Reliance in addition to STPI, VSNL and BSNL. Today, almost all the districts of UP have optical fiber connectivity. With the arrival of Reliance, multiple options of connectivity are going to become a reality.

The state government has been busy modifying all the labour and pollution rules to give a further boost to the ICT industry in state. The nascent ICT industry of Lucknow is already exporting Rs 10 crores in the hi-tech areas of telecommunication, systems software and business applications.

The commissioning of Software Technology Park (STPs) in Lucknow addition to the NOIDA and Kanpur is likely to offer much needed boost to these budding indigenous IT companies. If the past growth rates at NOIDA are indicators, then the Lucknow with its proximity to IIM, IET Lucknow, IIT & HBTI-Kanpur and IIIT-Allahabad possesses potential of becoming major center of software activity in the state.

Additionally, the recent emphasis of the state government on e-governance and offering the citizens an online interface with right to information, offers a huge business opportunity for the IT companies. The government has not only set deadlines for developing several of cities with online interfaces (SMART cities) but has also allocated 2 per cent of the budget for the IT activity, amounting to nearly Rs 400 crores per year.

In summary the state is in position to offer local business opportunity of Rs 400 crores, friendly policies of government, easy availability of capital for IT firms, improving infrastructure, small town quality of life with big town amenities, and proximity to best of the centers of learning and research institution.

The states ability to project the business friendly, conducive environment and channel the resources in a identified technology corridor can provide all the ingredients needed for growth of information and communications technology sector in the state.

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