Date:07/03/2006 URL: http://www.thehindubusinessline.com/2006/03/07/stories/2006030702621900.htm

Back Infosys mulls setting up operations in Kolkata

Our Bureau

Need to augment education infrastructure in Bengal taken up

Possible factors
The minimum investment that Infosys is looking at is Rs 250 crore and engagement of 5,000 people
The possibility of taking a decision `in this regard within the next one month is great'.

Kolkata , March 6

Infosys Technologies is considering setting up operations in Kolkata.

A decision in this regard would be taken by the board of directors of the company within the next one month, according to Mr T.V. Mohandas Pai, Member of the Board and Chief Financial Officer of Infosys Technologies Ltd.

Speaking to presspersons after a meeting with the West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, here on Monday, Mr Pai said the Chairman of Infosys, Mr N.R. Narayana Murthy, had assured the Chief Minister some time back that Infosys would consider setting up operations in West Bengal whenever it looked for expanding its footprint to new locations in the country.

"We wish to launch IT services in Kolkata. "The minimum investment that we are looking at is Rs 250 crore and we shall engage 5,000 people," he said.

"The "possibility of taking a decision in this regard within the next one month is great", he added.

Key issues

Mr Pai said several key issues of IT industry were discussed with Mr Bhattacharjee. Foremost among them was the need to augment the education infrastructure in West Bengal, which has about 60 engineering colleges that together have 18,000 seats on offer.

In contrast, Andhra Pradesh has 80,000 seats in its engineering colleges, Tamil Nadu 94,000, Maharashtra 80,000 and Karnataka 45,000.

Another issue that was discussed with Mr Bhattacharjee was the contentious issue of trade unions in the IT sector.

"Statements in the press about trade unions in the IT sector have created a negative impression among our global customers.

The IT industry does mission critical work and it is important to ensure 24x7 operations.

This Government is committed to the growth of the IT sector in the State and the Chief Minister has assured that the IT industry will operate on 24x7 basis with any outside interference", Mr Pai said.

According to him, should Infosys decide to set up operations in West Bengal, it would require 100 acres of land at Rajarhat, the new IT destination on the fringes of the city.

He, however, felt that land prices there were steep.

"Land prices have to be reasonable and must be looked at from the point of view of the jobs that are going to be created", he said.