MoU signed with US firm on hi-tech projects

By Our Staff Reporter

HYDERABAD, MARCH 22. The State Government and the US-based Techfarm Ventures L.P, have signed an MoU aimed at development of hi-technology industry in the emerging areas of ``reconfigurable silicon, networking and optical technologies''.

The MoU was signed by Mr.Gordon Campbell, founder of Techfarm, an incubator, and Mr.J.Satyanarayana, Secretary, Information Technology, Government of Andhra pradesh, in the presence of the Chief Minister, Mr.N.Chandrababu Naidu, and Mr.J.A.Chowdary, President of the Hyderabad Software Exporters Association (HYSEA) at the Secretariat here on Thursday.

Techfarm Ventures (TFV) is a partnership created by Techfarm to identify and invest in promising, young technology companies. This is the second MoU the company has signed with a State, the earlier one being with Karnataka. It also signed an MoU with UTI.

The new relationship is expected to bring 20 to 30 subsidiaries of portfolio companies of Techfarm Ventures, L.P, to Hyderabad over the next two years. This in turn is expected to lead to an inflow of Foreign Direct Investment of $100 million. This will be in addition to the local companies that will be set up with the assistance of Techfarm India Fund.

Addressing a press conference after the signing of the MoU, Mr.Chandrababu Naidu said ``This is only the beginning''. The Government, he said, was working out a package of benefits (incentives) to encourage Venture Capital funding, and how to collaborate with them. He would also like banks in India to promote venture capital in a big way, he said.

After four to five years of focus on IT, everyone was now recognising Hyderabad as an important centre for IT operations. He said over 5,000 hectares had been notified as Cyberabad, which includes knowledge-related institutions like the IIIT, Central University, besides the HI-TEC City.

In addition, the State Government was planning ``Cyberparks'' in the districts for concentrating on IT Enabled Services (ITES). The Government was concentrating on education, infrastructure and use of IT for e-governance, and believed that IT could be used as a strategic tool to leapfrog development.

Mr.Gordon Campbell, who founded Techfarm in 1993, said Techfarm Venture (TFV) selected only those start-up companies that offered the highest potential for significant and early success. It not only provided such emerging companies with capital investment, but also the benefit of years of proven business. By working in partnership with TFV, these start-ups can avoid pitfalls that frequently derail promising companies. The focus of TFV in India will be on reconfigurable chips. The first such chip is expected to be in the market by July, and production by first half of next year, he felt.

He reiterated that ``Reconfigurable'' technology will be emerging strongly in the next five years globally.The company was very excited at the opportunity of working with the Andhra Pradesh Government, and its experience with a City based company `Portalplayer' was `incredibly good'. He expected 20 to 30 subsidiary companies to be set up in Hyderabad by their portfolio companies, adding that ``Hyderabad has the potential to be another Silicon Valley''.

Mr.J.A.Chowdary said this was the beginning of a new wave in Hyderabad, which would see the emergence of quality hi-tech companies that could develop and own Intellectual Property Rights. Mr.Satyanarayana said the State Government would enable setting up of critical infrastructure and help TFV assisted companies to set up design and development centres in Hyderabad.

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