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(Bangalore Getting Bangalored !!)
"Bangalored", a word invented in the United States to describe those whose jobs
were lost because their work was outsourced to low-cost India, could well apply
to the city, whose rivals are wooing investors as it chokes on its own growth.
An infrastructure crunch threatens Bangalore's prospects and those problems were
compounded in October when an influential politician raised doubts about government
support for industry in the form of cheap land and subsidies.
Although firms like Intel and Motorola have put Bangalore on the world tech map,
a host of rival Indian cities are lining up their own incentives such as cheaper
land and subsidies.
Coinciding with the flagship city's troubles, Karnataka's BangaloreIT.in conference
kicked off last week with "Beyond Bangalore" as one of its themes.
The aim -- to position Bangalore as a gateway to other states and cities.
Things had looked up for Bangalore earlier this year when construction started in
July for a $313 million international airport due for completion in 2008.
Stiff competition
Pune, Mumbai and Delhi's satellite town of Gurgaon are already established centres
for the IT industry. Realty consultant Jones Lang LaSalle said last week even other
"Tier III" cities were now emerging as lower cost rivals.
Genpact, a leading back-office firm spun off by General Electric Co, and Progeon,
a subsidiary of Nasdaq-listed Infosys, are already in Jaipur.
Even small towns like the textile centre of Coimbatore is attracting big companies
like Cognizant Technology. Wipro has already branched out to communist-ruled Kolkata
and bought huge chunks of land near Delhi.
Rajasthan growth friendly IT Policy
As an affirmation of the State Government's commitment, following policy initiatives
are to be taken:
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The Sales Tax on leasing of computers and its accessories shall be fixed not above
the Uniform Floor Rate announced by the State Government.
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Commercial buildings which are fully dedicated to Software / IT industry will be
exempted from Land & Building Tax on a case to case basis by the Empowered Committee
on investment chaired by the Chief Secretary. If the use of building changes, this
exemption would automatically get revoked.
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Software units have already been permitted to be set up in urban areas. To further
liberalize this aspect, Software units will be permitted to be set up in residential
plots without change in land use.
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RSEB shall endeavor to ensure uninterrupted supply of power. There will be no requirement
of taking permission from RSEB regarding installation of DG sets of any capacity
for captive use up to 50% of the industry's demand.
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Promotional campaigns and visits targeting investments into IT industry from countries
like Singapore, USA, Japan, UK, Sweden, etc., will be undertaken with support from
embassies, Government of India and industry/trade development organizations in these
countries.
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