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Financial Daily from THE HINDU group of publications Friday, August 10, 2001 |
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A haven for the tech-savvy
Vishwanath Kulkarni
THERE is perhaps one must-see place that all visiting foreign dignitaries and CEOs to Bangalore, nay India, have on their whistle-stop agendas. Virtually everyone from Prime Minister, A.B. Vajpayee, his Japanese and Singapore counterparts, to Intel's Cra
ig Barrett, Star's Rupert Murdoch and GE's Jack Welch has made a beeline to Electronics City. For this is where infotech giants -- the pride of Bangalore -- such as Infosys, Wipro, and Siemens are housed.
If Bangalore has emerged as the country's technology capital, the credit for it should go to Electronics City -- the country's premier electronics and software industrial hub.
About a decade and half ago, the Karnataka Government through its nodal agency the Karnataka State Electronics Development Corporation (Keonics) foresaw electronics as the cutting-edge technology industry of future and began planning for the necessary in
frastructure to boost electronics in the State. As a result, Electronics City, the country's first ever totally dedicated electronics and software industrial enclave, came into being.
Spread over an area of 330 acres, Electronics City is about 30 minutes drive away from the heart of Bangalore city, on the National Highway 7 that leads to the industrial town of Hosur in Tamil Nadu. The built up area is restricted to some 20 per cent of
the site, with the rest being covered by greenery.
Phase I of Electronics City has some 111 units operational, including multinationals, public sector undertakings, small and medium enterprises and training institutes, and these have moved in here over the last 15 years.
Popularly known as the Silicon Valley of India, the Electronics City has multinational presence in 3M, BP, Solar, Fanuc, MOOG, Motorola and Siemens. There are also the home-grown industrial giants such as Birla, Dalmia, Infosys, Tata, Wipro besides publi
c sector units such as Indian Telephone Industries Ltd and Bharat Heavy Electricals Ltd. Electronics City also houses a number of small time electronic hardware and component manufacturers. It also houses a multistoried industrial complex of the Karnatak
a State Small Industries Development Corporation.
Today the Electronics City provides employment to nearly 18,000 people. According to estimates, the units here post an annual turnover of over Rs 2,500 crores and exports from this hub are to the tune of over Rs 1,500 crores.
The Software Technology Parks of India, set up here by the Ministry of Information Technology, has contributed to the growth of the Electronics City by promoting the software units. The STP provides
* State-of-the-art Internet gateway for high speed data communications (64 kbps to 2 mbps).
* Incubation centre for immediate start up for ready software entrepreneurs.
* Ready-made industrial flats for fledgling software companies in its complex.
Till mid-1997, the state-owned Keonics was looking after the maintenance of Electronics City. In October 1997, in a unique and novel experiment, the maintenance and upkeep of the enclave was handed over to the Electronics City Industries Association (ELC
IA) having representatives from units there for effective local governance and management. Today, the Association not only looks after the day-to-day housekeeping and maintenance, but also water supply, security, infrastructure-maintenance and beautifica
tion of the estate.
ELCIA has now embarked on projects to support this development like the revamping the total infrastructure at a cost of Rs 8 crore and promoting an International Standard Residential Township -- IT Township. This is planned over 500 acres, as a self-cont
ained, eco-friendly, gated residential community applying the latest of technology and tapping all renewal energy options with state-of-the-art infrastructure and facilities. The township project was cleared by the government at the Global Investors Meet
held last year.
Widening Horizons.
As companies began to expand operations, the centre of the city were both crowded and a lot more expensive. Offices began to move to the Electronics City, though even that is full now.
Following the success of the Electronics City, the government of Karnataka is now planning to develop 300 more acres with built area expected to cross 2.7 million square feet, the Electronics City Phase II. Employment potential is expected to rise to mor
e than 30,000 and the estimated turnover is expected to exceed Rs 4,000 crores. Exports have been projected at Rs 2,400 crores. Several companies including Digital India, Velankani Information Systems have already set up their units in the Phase II of el
ectronics City.
Notwithstanding the slowdown, IT companies are still coming in Bangalore in droves. According to State IT Secretary, Vivek Kulkarni, last year Bangalore received one new company with 100 percent foreign equity every week.
The Karnataka government has announced its intention to create an IT corridor connecting Electronics City to the International Technology Park Ltd in Whitefield. The proposed IT corridor, when converted into reality is expected to provide a big boost to
the further development of the software and electronics industry in the State.
Pic.: The Electronics City provides employment opportunities to over 18,000 people. This picture shows the assembly line of MRO-Tek.
Picture by G.R.N. Somasekhar
(A broadsheet feature on electronics city, Bangalore)
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