RAJASTHAN
An ideal InfoTech destination

 

1.      Indian IT Industry*

 

The Indian IT sector has proved to be the country’s fastest growing segment, even in troubled times-in the globally challenging economic environment of 2001-2003. The software and services industry, a major component of India’s IT sector, showed significant momentum, higher than that of other industries in the country. India continued to be a compelling investment destination, as leading companies either set up shop here or beefed up their existing infrastructure. Outsourcing of IT requirements by leading global companies to Indian majors also picked up pace during 2003-04, in line with worldwide trends.

The following are the core areas of IT :

 

      IT software and services exports

      IT-enabled services

      The domestic IT market

      Telecom infrastructure

      Venture capital

 

i)       IT software and services market

 

IT software and services market in India continued to be driven by exports, which exhibited robust growth during the 2006-07 period. The global IT industry is slated to become a US$ 700 billion industry by the year 2009. The Indian Software Industry zoomed, from a mere US $ 1.5 million in 1989-90 to a whopping US $ 39.6 billion in 2006-07. The Indian Software Exports Industry continues to show a progressive growth rate. The industry exported software and services worth US$ 31.4 billion  in 2006-07. The software industry in India expects to reach a level of US$ 70 billion by the year 2008. The Indian software and services market continued to build momentum, as an economic upturn began sweeping the global geographies.

 

ii)     IT Enabled services (ITES)/BPO

 

The Indian ITES-BPO industry was a key driver of the overall Indian IT software and services sector during 2006-07, recording revenues of US$ 8.4 billion in that period. According to recent studies by the National Association of Software and Services Companies (NASSCOM), the Indian ITES-BPO industry grew at about 35 percent during 2006-07.

Compared to other competing ITES nations such as Ireland, the Philippines and China, India drew the bulk of the global ITES/BPO business on account of its unmatched price/performance/quality proposition. The ITES/BPO industry took root in most of India’s leading cities. Some of the leading hubs of these services were NCR, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Ahmedabad, Pune etc. Some of the key players in this market (including captive and third party ITES/BPO vendors) were AMX, Converges India Services, GE Capital, Standard Chartered, Dell, Healthscribe India, EXL Services, Daksh eServices (IBM), Wipro Spectramind, 24/7 Customer, V-customer etc.

 

The Indian ITES/BPO engine continued to surge forward on account of the following reasons:

 

                  India’s vast pool of English speaking and skilled manpower, which rates high on qualification, capabilities, quality of work and work ethics

                  India’s telecom and physical infrastructure, which is approaching parity with other developed countries

                  The strong quality orientation of Indian ITES players

                  The strong cost/value proposition associated with outsourcing non-core processes to India. Customers are stated to realize cost savings of the order of 40-60 percent by moving some processes to Indian shores

                  India’s unique geographical location enables 24x7 service offering and reduction in turn around time due to time zone difference.

                  The presence of a regulatory environment that’s conducive to the growth of the ITES market

 

Some of the key ITES services lines include:

 

ü      Back office operations

ü      Call Centres

ü      Content Development/Animation

ü      Geographic Information System Services

ü      Medical Transcription

ü      Web site services

ü      Data Processing

ü      Back office operations

ü      Call Centres

ü      Content Development/Animation

ü      Geographic Information System Services

ü      Medical Transcription

ü      Web site services

ü      Data Processing

 

2. Information Technology in Rajasthan 

 

Rajasthan has attracted an investment over Rs. 1000 crores in IT and Electronics sector in over 60 projects. RIICO has extended financial assistance of over Rs. 50 crs to the sector. The turnover of this sector is over Rs. 1500 crores with export of over Rs. 203 crores.  It is projected that by 2008, the export from the State in IT and Electronics sector would be over Rs. 500 crs. The major industries are Infosys BPO, Genpact, Electrolux, Ericsson, Samcor, Instrumentation, Rajasthan Electronics & Instruments (REIL), Genus overseas, Allied Electronic, Compucom, Cistems software, Lipi Data, Aksh Optifibre etc.   

 

State Government accords very high priority to the development of Information Technology in the State. Rajasthan Government and RIICO has identified Information Technology (IT) and ITeS as a thrust sector and is providing several incentives for proliferation of IT & ITeS industries in the State.

 

State Govt. has taken many initiatives to implement IT and e-Governance in the State such as IT policy, expansion of Lokmitra and Janmitra, development of State wide area network, development of web sites of departments,  computerisation of activities of departments, most of district collect orate connected with Secretariat through video conference facility, IT education in schools and colleges etc.

 

 

3.      State IT & ITeS Policy-2007

   

    
4. Special land package to IT industries in IT Parks/designated IT zones

 

Now the land allotment for setting up of various IT industries as defined below/ Institutes will be made at the rate of development charges prevailing in the area. The following entitled land rebate by way of reimbursement shall be allowed after stipulated minimum fixed investment is actually made on the allotted plot within the period stipulated for investment in the package.

 

1. Very Prestigious Investment - in IT Software, ITES and IT Hardware - For the industry which is set up on the allotted plot by any company with a minimum fixed investment of Rs. 10 crores or by a fortune 500 company, within a period of 3 years, entitled land rebate shall be @ 60% of the plot allotment rate.

 

2. Prestigious Investment - in IT Software, ITES and IT Hardware - For the industry which is set up on the allotted plot with a minimum fixed investment of Rs. 1 crore within a period of 3 years, entitled land rebate shall be @ 50% of the allotment rate for the plot upto maximum of 5 acres area.

 

3. General Investment - in IT Software, ITES and IT Hardware - For the industry which is set up on the allotted plot with a minimum fixed investment of about Rs. 10 lacs per 500 sqm. land and Rs. 2 lac for every subsequent 100 sqm. within a period of 3 years, entitled land rebate shall be @ 25% of the allotment rate for the plot upto maximum of 2000 sqm. area.

 

4. Advanced IT Institutes- For the institute which is set up on the allotted plot with a minimum fixed investment of Rs. 5 crores within a period of 3 years, entitled land rebate shall be @ 25% of the allotment rate for the plot upto maximum of 5 acres area.

 

    Advanced IT Institutes would mean institutes offering exclusive IT courses atleast of the level of MCA /BE / M.Tech (IT) /MBA (IT) /MSC (IT) or of a recognized equivalent.

 

5. General Computer Training Institutes- No rebate in the allotment rate shall be allowed. However, RIICO may consider land allotment upto maximum of 2000 sqm. on prevailing rate provided unit makes fixed investment of about Rs. 5 lacs per 500 sqm. land within 3 years period.

 

Notes-

a)   Production activities will need to be started within three years from the date of possession or from the date of lease deed execution, whichever is earlier.

b)   The minimum fixed investment should be made within 3 years from the date of possession or from the date of lease deed execution, whichever is earlier.

c)   An undertaking / certificate shall also be submitted by IT unit every year for the use of land for the purpose the land is allotted.

d)   Fixed investment shall mean investment in land, building, computers, printers, scanners, plotters, licensed software’s, EPABX, networking equipment, UPS, DG-Sets, CVT"s, AC, LAN Cable and other equipment and furniture.

e)   In case of failure to observe the terms and conditions regarding investment and time schedule mentioned in the package, the concessional amount shall be recovered from allottee with interest from the date on which concession amount has been reimbursed.

f)     In each case the decision of RIICO shall be final as to what qualifies as IT Industry/ Institute for the purpose of above said incentive.

g)   For reimbursement of the concessional amount, the plot allottee would be required to inform RIICO office by a registered AD letter sent prior to the scheduled date regarding the building construction. After verification by the Unit Head, the Cheque or rejection letter, as the case may be, will be sent by RIICO within 30 days by registered AD letter.

 

 

Definitions of IT Industry

 

a)  IT Software /ITES Industry:-

This would mean development and production of computer software and IT Enabled Services (ITES) such as Call Centres, Medical Transcriptions, BPOs, Content development, E-commerce and other similar activities.

 

b)  IT Hardware Industry:-

IT hardware industry would mean production and assembling of computers, peripherals, Computer Monitors, Printers, Scanners, Modems, Hubs, Switches, Routers, Networking equipment's, UPS, Earth Station, V-SAT, Digital Switching Systems, Mobile phones, CDMA equipment, Electronic Exchanges, EPABX, Wireless equipment's, Optical Fiber Cables, battery use in mobile/CDMA instruments, ATM machines, LAN Cable (CAT-5 etc.), electronic touch screen.

 

5.  Concessions & facilities available under ‘STP’ scheme to Software Development Units

 

Duty Free Imports

No import license is required. Import Certificates are issued on request by Director – STP of concerned territory for Duty Free Imports of Capital Goods, Raw Material and Components.

 

Excise relief

Excise exemption is available on Capital Goods bought from Domestic Market, on request from concerned STP.

 

Corporate Income Tax Holiday

Income Tax Holiday is available for STP Units up to 31/3/2009.

Foreign Equity

Foreign Equity upto 100% is allowed in STP Scheme.

 

DTA Sales

The sales in domestic tariff area are allowed upto 50% of the exports, in value terms made by the STP unit.

 

Single Window facility

Import License, Export Certification, One Window Clearances, Custom Bonding etc. are cleared under are window.

 

6.      A few important projects operating in IT and Electronics in Rajasthan are as follows:-

 

è    Genpact

è    Infosys BPO

è    Patni Computer System Ltd., (project being setup)

è    Ericsson Telecommunication Ltd.

è    Electrolux Kelvinator

è    Metacube

è    Compucom Software

è    Natural Software

è    BIPS

è    Data Infosys

è    VGL Software

è    Lipi Data System Ltd.

è    Allied Electronics & Magnetics Ltd.

è    Aksh India Ltd.

è    Natural Technologies

è    True Worth

è    Back Office IT Solutions

è    Pratham Software

è    Instrumentation Ltd.

è    Cyber Futuristics (I) Pvt. Ltd.

 

7.       Infrastructure for the Development of Information Technology

 

I.  IT Infrastructure at Jaipur

 

a)         High Speed Data Communication

 

The high-speed data communication facility is available through following  sources i.e.

 

1.      STPI Earth Station

2.      VSNL International Gateway

3.      BSNL

4.      Bharati

5.      Reliance

 

The telephone communication are available through BSNL as well as though private service providers. Mobile services are being provided by Airtel, Hutch, BSNL, Reliance, Idea,TATA  etc.

 

b)         Dedicated IT Park in a Developed Industrial Area

 

The IT Park is situated in an existing Export Promotion Industrial Park at Jaipur.

 

1.      This park is on National Highway No. 12, located at about 5 Kms.  from Airport and 12 Kms. from the city centre.

 

2.      The park has got developed plots ranging 500 Sq.mtr to 2000 Sq.mtr.

 

 

3.      The IT Park has got multistoried complexes, where space is available on license (rent). The building has got high speed data communication; telecom facility, security etc. The built-up modules are available in multiple of 1000 Sq. Ft. These are available on rent at the rate of *Rs. 12.00 per sq. ft. per month.

 

4.      Ample quantity of water and adequate Power is available for industries in the area.

 

5.      Good transport facility connecting the park to the city is available.

 

6.      Rajasthan Housing Board has developed a large Housing Colony at a distance of about 2 Kms. from the IT Park. The houses in the area are easily available on rent as well as on outright purchase.

 

7.      Some large industrial units already in operation in the area include Mico Bosh, Genus Overseas, SBL limited, Autopal etc.

 

8.      There exist a conducive working environment in the Industrial Area.

 

No vacant plot in IT Park, Sitapura, Jaipur

 

c.    Skilled Manpower

 

            The following Institutes of National repute are offering graduate & post             graduate courses in IT

 

i.                    Malviya National Institute of Technology, Jaipur

ii.                  LNM Institute of Information Technology, Jaipur

iii.                University of Rajasthan

iv.                AMITY

v.                  ICFAI

vi.                Cistems

vii.              Compucom

viii.            Other Private Engineering Colleges (20 nos.)

ix.                Other IT Institutes

 

            d.       Advantages of Jaipur

 

Jaipur is an ideal location for setting up a Software Development Centre as :

 

1.      High Speed Data Communication (HSDC) facilities through satellite earth station exists in Jaipur

2.      Skilled manpower easily available.

3.      An IT Park is operational in Export Promotion Industrial Park (EPIP).

4.      STPI, Govt. of India office is located for single window services under "STP" Scheme & data com facility.

5.      New IT policy is in place.

6.      Running cost in terms of wages payable to Professionals is moderate in comparison to other cities.

7.      Jaipur is well connected with all Metropolitan Cities by Air, Rail and Road.

8.      An International Airport.

 

e.         Social Infrastructure in Jaipur

 

 

 

·        Presently connected with direct flight to Bombay, Delhi, Calcutta, Ahmedabad, etc. International flights to Dubai, Sharjah, Muskat also operating from Jaipur.

 

 

·        Broad gauge connection with all major cities like Calcutta, Bangalore, Mumbai, Chennai, Delhi, Hyderabad, Bhopal, Guhawati, Indore etc.

 

 

·        Four lane highway (NH8) connecting Delhi.

 

·        Super star deluxe five star category hotels

10 Nos.

·        Four star hotel and other star category hotels

25 Nos.

·        Club of National repute

5 Nos.

·        Golf Course

2 Nos.

·        Polo club

1 No.

·        Restaurant and choicest cushion, with Beer Bar etc.

25 Nos.

·        Conference halls and facilities of exhibition

8 Nos.

·        Housing complex and shopping plazas by private builders as well as Rajasthan Housing Board.                                                  

Sufficient Nos.

·        Excellent Education Facilities (DPS, Neerja Modi, Birla School, St. Antslem, MGD, Vidhya Ashram, SMS, Sofia and other good schools)

 

 

·        Reputed Convent/Public schools

40 Nos.

·        Amusement Parks

12 Nos.

·        Excellent telecommunication facilities with ISDN, internet, Mobile and E-Mail already operational.

 

 

·        Good Medical facilities (Medical Colleges & specialised Hospital's are operational)

 

 

II. IT park at Kota

 

An IT Park in an area about 7 acres has been set up at Indraprastha Industrial Area, Kota. Developed plots are available for IT units. Developed infrastructure facilities such as power, telecom, roads, drainages etc. are available in the IT Park.

 

The Internet can be availed from BSNL or private ISPs. Telecom infrastructure in terms of basic, mobile and value added services are available.

 

Broad gauge connection with all major cities like, Bangalore, Mumbai, Chennai, Delhi, Hyderabad, Ahmedabad, Bhopal, Indore etc.

 

Educational institutes such as University, Engineering colleges, Medical college, Poly technique college, Computer training institutes are located in the city to cater to the need of skilled manpower.

 

No vacant plot in IT Park, Kota

 

 III. IT park at Jodhpur

 

     RIICO cyber park in an area about 5.5 acres is being setup at Heavy Industrial area, Jodhpur.

 

RIICO in association with Software Technology Parks of India, (STPI) has set up an Earth Station with incubation facility at RIICO Cyber Park, heavy industrial area, Jodhpur for high speed data com facility to IT companies and other exporters.

 

An IT Park in an area about 30 acres is also being setup at Boranada, Jodhpur for medium & large IT industries and Institutes.

 

Broad gauge connection with all major cities like, Delhi, Ahmedabad, Jaipur, Bangalore, etc.

 

Educational institutes such as Engineering college, Poly-technique college, Computer training institutes are located in the city to cater to the need of skilled manpower.

 

IV. IT park at Udaipur

 

     To meet the growing demand of IT industry, RIICO has planned a new Information Technology (IT) Park in an area of about 10 acres at Udaipur. The IT Park is located at a prime location in MIA-Extension, Industrial Area, Udaipur.

 

The total number of plots in IT Park is 38 only. The park has got developed plots ranging 500 Sq.mtr to 2000 Sq.mtr.

 

Developed infrastructure facilities such as power, telecom, roads, drainages etc. are being provided in the IT Park.

 

The Internet and leased circuit can be availed from BSNL or private ISPs. Telecom infrastructure in terms of basic, mobile and value added services are available.

 

Educational institutes such as University, Engineering colleges, Medical college, Poly technique college, Computer training institutes are located in the city to cater to the need of skilled manpower.

 

Air, Rail & Road connection with all major cities in the country.

 

 

 

8.      Concessions to IT units in designated IT Parks- At a glance

 

i)                    Land rebate upto 60% depending upon type & size of investment

ii)                   50% Exemption of Stamp Duty on registration of land

iii)                 50% Exemption from electricity duty for 7 years

iv)                 Simplified Labour Laws. (women are allowed to work in night shift, self certification under various State enactment's etc.)

v)                  Electric Power on priority.

vi)                 Customised package for Investment beyond Rs.10 crores.

vii)               Venture Capital (on merits) by RVCF.

 

 

For details, please contact:

 

AK Gupta, General Manager/

Dinesh Pahadia, Dy. General Manager

RIICO Limited, Udyog Bhawan,

Tilak Marg, Jaipur -302005.

Tel. No.:  0141- 2227751/5113201,  Fax No.: 0141-5104804,

Email: akgupta@riico.co.in  OR  dpahadia@riico.co.in OR riico@riico.co.in