Kerala embarks on a $5 Billion IT journey

Global meltdown and an IT slowdown do not seem to deter Kerala. The ‘God’s own country’ is moving ahead with its $45 billion investment over the next 5-7 years to create IT infrastructure and connected townships through a ‘hub & spoke’ model. Comfortable occupancy levels at its existing IT park facilities and expected growth prospects of the country’s economy in the medium — to long-term seem to be the driving forces behind the aggressive posture.
“We are not one of those states, where IT built-up space is lying unutilised and vacancy of built-up space in less than 15 per cent, which is a healthy occupancy ratio. Also, the best time to do infrastructure expansion is during slowdown, where costs are down and bandwidth is available,” Siddhartha Bhattacharya, CEO, Techno Park, Thiruvananthapuram and Info Park Kochi said.
“Our plan is to get the infrastructure done in phases, so as to be in a ready mode, as and when there is a rebound (of economy), which is bound to come. Further, there is a general bullishness on the economic growth prospects in the medium to long term,” Bhattacharya pointed out.
The state, which developed large IT park facilities at Thiruvananthapuram and Kochi has adopted an ‘hub & spoke’ model to spread the IT development to more parts of the state. Techno Park Thiruvananthapuram is developing an additional IT facility over 42 acres at Kollam, about 50 km from the state capital and this facility, inaugurated on Tuesday, will act as the spoke.
In addition, plans are afoot to develop three facilities at Koratty, Cherthala and Ambalapuzha, all near Kochi as the spokes for Info Park Kochi. A third hub is being promoted at Calicut, which will be eventually connected to its spokes – Kasargod and Kannur.
“We have drawn up a $4-5 billion investment plan for creating these IT facilities and related townships over the next 5-7 years. These facilities will accommodate 3-3.5 lakh IT professionals as and when the opportunity arises,” Bhattacharya said. An estimated 55,000 IT professionals are employed by 300-odd software companies in Kerala.
According to him, there are several advantages that Kerala has over other states. A lower operational cost of 30-35 per cent, an higher level of quality of life and a general urbanised state are some of the attractive features, besides being one of the most attractive tourist destination.