Thursday , August 24 2017

Andhra Pradesh sees major dip in its IT exports

IT associated exports have seen a marginal development in comparison to the neighboring state of Telangana and other main IT hubs.

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VISHAKAPATNAM: Chief Minister Nara Chandrababu Naidu likes to talk about Andhra Pradesh as Sunrise State. But 3 years after division, the sun has, however, to rise for the state’s Information Technology (IT) zone. Through this period, the sector has endured in the shadows, without main investments or the entrance of new companies. IT-related exports have merely witnessed a minimal improvement in assessment to the neighboring state of Telangana and other main IT hubs. Cardinal motives for the inaction of the IT sector are the State Government’s failure to gismo its IT policy, and the lack of good infrastructure and ecologies.

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When amalgamated AP undertook bifurcation, the IT-related exports from the remaining state of Andhra Pradesh amounted to Rs 1,500 crore, although those from Telangana amounted to Rs 60,000 crore. Currently, IT exports from the state are around Rs 2,000 crore, whereas those from Telangana have increased to Rs 1 lakh crore. Of the Rs 2,000 crore, around 80 percent is underwritten by Visakhapatnam’s, which is measured to be the IT hub of the state. The respite comes from Kakinada and Tirupati.

Above the past three years, only 10 to 15 small components have been set up, and no new companies have come into the state. O. Naresh Kumar, the VP of the of IT Park Association of Rushikonda, said, “The foremost reason for this is that the state’s IT policy is striking on paper, but its application leaves much to be anticipated. We barely receive the inducements promised in the policy.  Other details are the absence of ready-made office places and appropriate ecosystems.”

IT companies say that they have not expected the incentives assured to them. This embraces subsidies for power, rent, and bandwidth intake, recruitment support and stamps duty repayment. Mr. Naresh Kumar jagged out that firms were forced to pay a rather high total of Rs 1.25 lakh for an internet bandwidth of 100 Mbps. One more software exporter said that five persons had engaged the post of IT Secretary over the last three years, as a consequence of which there had been discrepancies in the execution of policies.

The cost of control is also high-priced to the growth of the IT sector. On the surface, the power tariff for the segment is Rs 6.5 per unit, but after factoring in the concealed charges the final tariff works out to around Rs 9.5 per unit.  “This is one of the maximum in the country,” Mr. Naresh Kumar said. Exporters feel that the smallest the State Government can do is to set up an office of the IT Department in Vizag. Presently, the Department is grounded in Vijayawada, from where there are barely any IT-related exports.

 

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