Two years on, Shimoga Information Technology Park awaits entrepreneurs
So far, only six companies have set up units here
More than half of the workspace in the Information Technology (IT) Park developed by the State government’s Karnataka State Electronics Development Corporation Ltd. (Keonics) at Machenahalli Industrial Estate near Shimoga remains unallotted.
Barring Crossdomain Solutions, a business process outsourcing (BPO) company, no major firms have evinced interest to set up units here. Of the 80,000 square feet workspace in the four-storeyed structure, nearly 40,000 sq ft has been allotted to six firms, of which five belong to local entrepreneurs.
At present, around 300 persons are employed with these companies.
The construction work of the IT Park commenced in 2010 and was completed by 2012 at the cost of Rs. 14.59 crore.
The park has uninterrupted power supply, high-speed Internet connectivity, fire alarm, business incubator space, water, parking slot, and round-the-clock security. About Rs. 5 a sq ft had been fixed as monthly rent.
Low occupancy
But, poor connectivity and global economic recession has been cited as reasons for low occupancy.
H. Mahendrappa, president of the Shimoga District Chamber of Commerce and Industry (SDCCI), told The Hindu that air connectivity was necessary to attract major IT companies. Work on construction of the airport in Sogane near Shimoga city that commenced in 2008 should be completed in an expedited manner, he said.
As cost incurred towards land and labour is less in tier-II and tier-III cities compared to metropolitan centres, IT and BPO firms can enhance profit by establishing units here. By the time the IT Park was commissioned in Shimoga, the companies put their expansion plans on hold owing to global economic downturn. “As recovery from recession has begun, I hope major firms come forward to set up units,” Mr. Mahendrappa said.
T.R. Ashwathnarayan, an entrepreneur, said it was necessary to reduce the rent for small players. Keonics should adopt a flexible stand over the issue, he said.
H.R. Jayadev, director, Keonics, said local youths who complete engineering and are keen on becoming entrepreneurs can make use of the workspace to execute projects. Keonics would seek the support of engineering colleges in this regard, he said.
With its rich pool of human resource, there is tremendous growth opportunity for knowledge-based industries in Shimoga.
In addition to workspace, entrepreneurs will avail themselves of hassle-free clearances and permissions from authorities concerned. Keonics, in association with SDCCI, plans to convene an investors meet to lure IT companies to Shimoga, he said.
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