IT firms make empty promises

BY J.R.PRASAD
Hyderabad, Jan. 20: IT companies are yet to provide jobs to thousands of people in exchange for land allotted to them by the state government.
The government had allotted 2,000 acres to 62 IT companies between 2004 and 2008 on the promise that they would generate jobs for 3 lakh software professionals.
Every company should have constructed its buildings within 18 months from the day of allotment of land and provide agreed employment within three years, according to the memorandum of understanding reached between the government and the firms.
Only Microsoft has kept its word by setting up its office on the allotted land in Manikonda village and creating employment for 1,500 professionals.
The government had allotted 5.5 acres in 2005 and 7.05 acres in 2006 to MS.
Around 25 companies have not even laid foundation stones and 28 companies are still constructing their offices.
None of the 11 IT companies which were allotted land in Kokapet village in Ranga Reddy district have made any headway. Intelligroup Asia Pvt. Ltd (4 acres, 3,000 jobs), Patni Computer Systems Ltd. (24.4 acres, 9,900 jobs), Cognizant Technologies Solutions Pvt. Ltd (9.05 acres, 3,663 jobs) are still constructing their offices though all of them got their land in January 2006. The rest of the firms have done nothing including IT majors like Google and Genpact.
Google got 20 acres land to create 4,000 jobs in May 2007 and Genpact was allotted 50 acres of land to create 5,000 jobs in June 2007.
Twenty IT companies were allotted land in Hyderabad. But only L&T Infocity kept its word. It employed 3,576 people instead of 3,171 as it had promised.
Computer Associates (30.5 acres), Kanbay Software (15 acres), Sierra Atlantic Software (7.2 acres), Honeywell (10 acres) have completed the first phase of their projects. But eight companies including Wipro Technologies, Brahmani Infratech Private Ltd, Indu Techzone Private Ltd and Stargaze Properties Pvt. Ltd have not done anything substantial. They are only in the process of constructing their offices. Wipro was alloted 101.03 acres in October 2005 with an obligation to employ 10,000 people. Brahmani Infratech Private Ltd, Indu Techzone Private Ltd and Stargaze Properties Pvt. Ltd were given 250 acres each on their promise that they would hire 45,000 professionals each.
The situation is the same in Visakhapatnam and Warangal where 27 IT companies were allotted land. Asked about this, the minister for information technology and communications, Mr R. Damodar Reddy, said, “Some firms have sought more time to complete their projects in the wake of global meltdown.” He added that violators of rules will be dealt with firmly.