Karnataka GIM_Dataquest-IDC IT Sector Report_June2010

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SPECIAL REPORT | June 2010

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Hub of India’s IT revolution, gateway to progess and opportunity

Karnataka

“The Government of Karnataka has a proactive policy of facilitating investments in the state and aiding the growth of Karnataka as the IT capital of India.”

“Karnataka and IT progress have become synonyms. With the proposed ITIR and IT Parks, investors will

be able to exploit new opportunities and growth will gain further momentum.”

Sri B.S. YeddyurappaHon’ble Chief MinisterGovt. of Karnataka

Sri Katta Subramanya NaiduHon’ble Minister for IT & BT,

Information, Housing & BWSSBGovt. of Karnataka

Dear Investors,

Karnataka has come a long way in the last three decades.

High technology industries and research institutions have

flourished in the State but the role of Information Technology

has been most significant among all. IT has not only shaped

the Bangalore city skyline and work paradigm but also resulted

in a more cosmopolitan culture. Bangalore has been like a

magnet, attracting a highly skilled work force, both from other

parts of the country as well as from abroad. I sincerely hope

that the proposed Information Technology Investment Region

(ITIR) and IT parks across the State will further enhance the

credibility and leadership role of Karnataka in attracting and

retaining investment on a large scale.

The Government of Karnataka is committed to ensuring this

growth ia sustained and has planned a number of steps to

improve the existing infrastructure. Notable amongst these

are the setting up of power projects of the order of 15,000

MW and metro and monorail systems under ‘fast track’

mechanism. Events like the Karnataka Global Investor Meet

are further proof of the State’s vision to invite and provide

quick, single window clearance to future stakeholders in the

State’s progress.

Karnataka is “One State with Many Opportunities”. Come and

be a part of this revolution.

Ashok Kumar C. Manoli, IAS

Principal Secretary to Government,

Department of IT, BT and S&T

Foreword

4 | June 2010 For more on India’s IT industry, visit www.dqindia.com| DATAQUEST | A CyberMedia Publication

SPECIAL REPORT

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SPECIAL REPORT JUNE 2010

EDITOR-IN-CHIEF: Shyam Malhotra

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SR CORRESPONDENT: Stuti Das (Delhi), Piyali Guha (Delhi), PC Suraj (Bengaluru), Shilpa Shanbhag (Mumbai), Atreyee Datta (Delhi)

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Introduction 5

Information Technology Industry 6Global Overview 6

Indian Economy and the IT Market 6

Advantage India 9

Karnataka State 10Evolution of IT Sector in Karnataka 10

Growth Drivers and Role Played by the State 10

Why Invest in Karnataka 11

Karnataka IT Sector Statistics 12

State IT Policy Initiatives 15Impact of IT on Social Fabric 15

Brief Note on Investment Process 16

Semiconductor Policy 2010 16

Incentives for the Semiconductor Sector 17

Information Technology Investment Region (ITIR) 19Salient Features of ITIR 19

Role of the State Government 19

Investment opportunities in IT/ITeS SEZs, IT Parks 19

Revolutionizing Tier II, III Cities and Rural Areas with the help of IT and BPO 21Government initiatives in Rural BPO 21

Major IT Initiatives of Karnataka State Government 22e-Governance Initiatives 22

SWAN, SDC and CSC 24

Future Initiatives 25

Key Highlights 27

Contents


KARNATAKA – Hub of India’s IT revolution,gateway to progress and opportunity 2010

The global economic outlook has

now started to appear more optimis-

tic and various leading organizations

have come up with interesting analy-

ses and possible outcomes for the

future. Apart from predicting growth

in developed economies (though still

with a cautious approach), their pre-

dictions have one factor in common,

and that is the immense opportuni-

ties that lie in the Asian continent.

India has emerged as one of the

fastest growing economies in the

world with GDP growth at 7.2% in

fiscal 2009-10 and has been ranked

as the 4th largest economy on PPP

(Purchasing Power Parity) basis.

The growth of the Indian economy is

mainly based on its domestic market

unlike other export-led nations and

the purchasing power of the popula-

tion is growing with the infusion of

global investment in key industrial

sectors, creation of new, knowledge-

based employment opportunities and

the resultant rising standards of liv-

ing. IT/ITeS has played a crucial role

in helping raise the overall standard

of living and the State of Karnataka

can rightfully claim a leading role in

ensuring the successful development

and spread of this growth-enabling

sector of the Indian economy.

The growth of the export-led seg-

ment of the Indian IT industry and

status of the US and European econ-

omies are closely interlinked (approx-

imately 60% of India’s software ex-

ports revenues come from US based

customers). During the slowdown

Indian IT and BPO services organiza-

tions helped developed economies to

significantly cut their operational cost

by working as a ‘Global Back Office’.

But there is more about the India IT

and BPO services sector than just

being an offshore destination provid-

ing cost arbitrage to Western MNCs.

The India IT sector has climbed

up the value chain by being on the

forefront of innovative software and

application development. Major

Fortune 500 companies have set

up their R&D bases on Indian soil.

Low labor cost, large availability of

skilled workforce, improvement in

infrastructure and knowledge of the

English language have placed India

in a unique position among all other

developing countries.

Karnataka state is widely recog-

nized as the ‘Silicon Valley of India’

and has one of the largest concen-

trations of IT organizations. Banga-

lore (now Bengaluru), the capital

of Karnataka is ranked as the 4th

largest technology hub in the world.

With nearly 2,100 IT companies,

the highest number of CMM Level 5

companies in India, Electronics City

at Bangalore and Mysore, IT Parks

at Mysore, Hubli and Mangalore

combined with the state’s investment

friendly IT policies make Karnataka

the preferred location for global

investors. The Information Technol-

ogy Investment Region (ITIR) and IT

Parks across the state are projected

to receive an investment of more

than US$ 20 Billion by 2030. Kar-

nataka has become a symbol of the

Indian IT growth story.

Introduction

India has emerged as

one of the fastest growing

economies in the world

with GDP growth at 7.2%

in fiscal 2009-10 and has

been ranked as the fourth

largest economy on PPP

(Purchasing Power Parity)

NOTE: For the purposes of this report 1 US$ = INR 45.


SPECIAL REPORT

Information Technology Industry

2007 2008 2009 2010 2011

Total IT spending

Sources: Economist Intelligence Unit IDC.

15

10

5

0

-5

-10

-15

IT services spending IT hardware spending Packaged software sales

Figure 1: Worldwide IT Spending Trends, 2007-2011(% growth; US$)

Greece, the long term fallout will

continue to be felt in later years.

Global growth showed 2.2% decline

in the year 2009. According to World

Bank estimates the global economy

is projected to grow by 2.7% during

2010 and is expected to see an im-

provement in 2011 with an estimated

growth of 3.2%.

Due to the slowdown, total IT

spending across the globe took a

plunge in 2008-09 and saw negative

growth for close to six quarters. The

decline in spending was lower in the

case of packaged software, which

organizations used to improve their

processes and productivity. Globally

companies will continue to outsource

their non-critical operations to third

world countries as a means of cost

reduction.

Indian Economy and the IT MarketThe Indian economy by and large

has sustained economic slowdown

and Index of Industrial Production

(IIP) increase to 16.8% in December

2009. India’s GDP is estimated to

have registered a growth of 7.2%

in 2009-10; at nominal rates the

Indian economy was valued at ap-

proximately US$ 1.367 trillion. On

the basis of purchasing power parity

(PPP), the Indian economy is already

the 4th largest in the world after the

US, China and Japan. The per capita

income is also on the rise and as a

result the average Indian’s purchas-

ing power has increased manifold in

recent years. The current per capita

Industry thought leaders, economists

and analysts have acknowledged that

'Globalization' has become possible

only because of the advancement

in Information and Communica-

tions Technologies. It has not only

changed the way business is done

but also the way we communicate

and interact with the outside world.

Today on a global basis, the IT indus-

try is providing employment (directly

or indirectly) to millions of people

and nearly all major industries de-

pend upon software applications and

tools to function in an effective and

efficient manner.

Global OverviewThe global economy is still in 'recov-

ery mode' after The Great Recession

and the recent economic develop-

ments in Turkey, Greece and Spain

have again sent shockwaves across

Europe and negatively impacted

major bourses across the world.

While the Eurozone countries have

put together a recovery package for

15

10

5

0

-5

-10

-15



Figure 2: Overall India IT Market - 2009 vs. 2014

Total – US$ 21,442 million Total – US$ 43,596 million

GDP of US$ 2,940.73 is projected to

increase to US$ 3,739.36 in 2012 as

per IMF estimates.

The IT services and ITeS (IT-ena-

bled Services) industry is largely de-

pendent on exports of software and

outsourcing services to developed

countries; this segment of the Indian

IT sector was impacted the most dur-

ing the global economic slowdown

and saw decrease in growth rates.

IT players focused on helping their

clients increase productivity, reduce

cost and retain existing customers.

The industry also focused on diver-

sifying its overseas client base to

reduce dependence on the US and

Western Europe. In India the ITeS

industry comprises mainly of services

like System Integration (SI), software

testing, application development,

network services, Business Process

Outsourcing (BPO) etc.

The total India domestic IT market

was estimated to be US$ 21442.44

million in 2009 and is projected

to touch US$ 43596.44 million by

2014. The prime objective of any IT/

application deployment in the next

2-3 years will be cost reduction and

improvement in bottom lines to bet-

ter prepare for any further financial

crisis.

As seen from Figure 2 above, in

the next 4 to 5 years organizations

will leverage their existing infra-

structure and concentrate more on

benefits of services by fully utilizing

them. Hence, technologies like Uni-

fied Communications (UC), desktop

and server virtualization would rule

in 2011 and 2012; cloud computing

will gain momentum by 2012-13.

According to the STPI (Soft-

ware Technology Parks of India),

software exports from India dur-

ing fiscal 2008-09 were valued at

US$ 46079.53 million and grew

by 15.09% as compared to fiscal

2007-08. The industry is expected to

clock similar growth regardless of the

slowdown. Growth is maintained by

nearly all segments of the IT indus-

try. For example, the data center

services market in the country (cur-

rently estimated at US$ 1.39 Billion)

is forecast to grow at a compound

annual growth rate (CAGR) of 22.7%

13%

n Services n Hardwaren Software n Others

18% 32%

37% 13%38%

29%11%

n Services n Hardwaren Software n Others

2009 2014

Source: IDC India, 2010


SPECIAL REPORT

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

2006 2007 2008 2009 2010 2011 2012 2013 2014

0

5

10

15

20

25

between 2009 and 2011, to touch

US$ 2.2 Billion by the end of 2011.

Figures like growth of 33% in total

PC shipments (including desktops

and notebooks) adding up to 2.24

million units in the January-March

2010 quarter (Source: IDC India,

2010) and ever increasing popula-

tion of Internet users (estimated at

approximately 71 million by IAMAI),

improving telecommunications

infrastructure, increasing number of

system integrators, all point towards

the fact that the India domestic IT

sector has come of age and is just

not dependent on global markets.

Initiatives like setting up of Special

Economic Zones (SEZs) for the IT

sector across various regions, favora-

ble investment policies and programs

are expected to continue to fuel the

growth of the Information Technology

sector in India.

Figure 3: India Domestic IT Market Evolution - Growth Phase 1.0 to Growth Phase 2.0

INFRASTRUCTURE BUILD-UP

INFRASTRUCTURE CONSOLIDATION

INFRASTRUCTURE LEVERAGE

Two key Areas of Opportunity

Growth Phase 1 CAGR 24.0%

Nascent

Growth Phase 2 CAGR 14.6%

Source: IDC India, 2010

US $

Mill

ion

Grwo

th %



• Indiahasavastpoolofhighlyskilledworkforce

(nearly 3 million technical and management

graduates) and technology institutes led by the

Indian Institutes of Technology (IITs) and Indian

Institutes of Management (IIMs) consistently

churn out engineering and management gradu-

ates to feed the industry demand for qualified

professionals.

• Astableanddemocraticallyelectedgovern-

ment with a ministry specially dedicated to the

progress of Information Technology. The govern-

ment’s major policy thrust areas are improving

the climate for technology innovation and knowl-

edge base.

• Indiansareknownfortheiracceptanceand

quick adoption of new technologies and the

country is one of the fastest growing market for

mobile phones and notebook PCs.

• IndiaisapreferreddestinationforoffshoreITand

back-office functions and approximately 260 of

the Fortune 500 companies are serviced from

India. In today’s competitive, globalized economy,

India has been successful in retaining its low-cost

advantage through additional ‘pluses’ such as the

quality of the skill base it offers, and the country’s

business environment. Infrastructure is improving

not only in the large metropolitan cities but also in

Tier II and Tier III cities. Bangalore, Mumbai, Delhi

National Capital Region, Hyderabad and Pune are

the main clusters for the Indian IT/ITeS industry.

• TheGovernmentofIndiahasintroducedspecial

investment and tax incentives for companies

setting up facilities for export of Software, IT

Services, Electronics, Telecommunications,

Power, Oil & Gas and those carrying out research

and development (R&D) activities in the biotech-

nology and pharmaceutical sectors. Setting up of

SEZs and schemes providing incentives to Export

Oriented Units (EOUs) are a part of this overall

policy thrust.

• Indiahasaburgeoningmiddleclasspopulation

of approximately 350 million with a growing pur-

chasing power. This offers a unique opportunity

for investors to tap into the domestic market for

products and services manufactured/rendered

out of their India operations.

• IndiaishometoalargenumberofR&Dlaborato-

ries set up by major Fortune 500 companies and

has a well defined Intellectual Property Rights

(IPR) legal regime.

Advantage India


SPECIAL REPORT

Karnataka StateKarnataka has emerged as the

knowledge and technology capital

of the country, and evolved from a

basically agricultural economy into

an industrial one in the last three

decades. It has a strong industrial

base comprising IT services and ITeS

(including software development, and

Knowledge and Business Process

Outsourcing), Textiles (largest Indian

producer of raw silk and silk fabrics),

defence research and aeronautics

units, biotechnology, nanotechnol-

ogy and semiconductor research and

design, automotive and infrastructure

with total estimated investment ex-

ceeding US$ 34787.77 million. Prior

to the growth of the IT industry, the

state already had presence of major

Government R&D and manufactur-

ing sector organizations. The Gross

State Domestic Product (GSDP) grew

by about 5.5% in real terms during

2008-09 with 5.8% growth recorded

by the industry and 9.2% in the serv-

ices sector (Source: OFIC). Today,

the state is home to more than 2100

IT companies, 743 MNCs, and over

600,000 IT professionals.

Evolution of Information Tech-nology Industry in Karnataka• Intheearly1970s,Americancom-

panies were exploring cheaper ways

to develop software, mainly com-

prising technical programming. In

1968, the Tata industrial conglomer-

ate formed a software services unit

Tata Consultancy Services (TCS) to

explore the opportunity. Bangalore

was chosen because of low real es-

tate cost and a salubrious climate.

• WiprostartedtomanufactureIn-

dia’s first homegrown PC. Economic

liberalization during the 1990s saw

good growth in the Telecom sector

that provided a staging ground for

the future IT revolution in the coun-

try.

• In1995,TCSdeterminedthatits

CasePac tool developed for IBM

could be used to scan software for

Y2K problems. This boosted in-

dustry confidence and lead to Y2K

contracts piling up on the doorsteps

of Indian information technology

firms in 1999.

• In2003,withtheemergenceofIT

services conglomerates such as

Wipro and Infosys, India became

a prime destination for offshore

outsourcing as foreign companies

sought to reduce their costs.

• Post2003Indianfirmsclimbed

up the value chain by proving their

skills in software development and

R&D. MNCs started to increase

the size and complexity of their

workforce in the country and the In-

formation Technology sector started

witnessing a high growth phase.

• AftertheElectronicsCityinBanga-

lore, Government of Karnataka and

STPI set up new technology parks

at Mangalore, Hubli and Manipal,

bringing the IT revolution to other

regions of the state.

Growth Drivers and Role Played by the StateKarnataka has pioneered many initia-

tives related to technology advancement

Post 2003 Indian

firms climbed up the

value chain by proving

their skills in software

development and R&D.

MNCs started to increase

the size and complexity

of their workforce in

the country and the

Information Technology

sector started witnessing

a high growth phase



and regulations regarding facilitation of

industries. A few notable initiatives are

listed here:

• In 1991, the state introduced the

Millennium IT Policy for promotion

of the IT industry and now in 2010

has become the first state in India

to bring out a separate Semicon-

ductor Policy to propel growth of

the sector.

• To promote technical education, the

Indian Institute of Information Tech-

nology (IIIT) was set up in Banga-

lore in xxxx. This is apart from 103

R&D centers, 19 universities, 153

engineering colleges, 33 medical

colleges, 39 dental colleges, and

1,003 Industrial Training Institutes

(ITIs) that provide a constant sup-

ply of skilled and quality human

resources.

• In 1992, Bangalore was the first city

in India to set up a satellite earth

station to provide high speed data

communication services to facilitate

software exports. Setting up of

Electronics City and STPI Bangalore

were other major landmarks in the

growth of the IT sector in the state.

• Many international companies have

set up their first R&D units outside

their home country in Bangalore.

Major R&D centers are run by

Texas Instruments, Motorola, SAP,

Microsoft, Intel, Philips, Cisco, Ora-

cle, AMD, IBM, Google and Yahoo

among numerous others.

• In August 2000, Technology In-

cubation Center, a first of its kind

initiative was set up in Bangalore

to promote the growth of the IT

sector with the help of STPI. This

centre currently supports budding

entrepreneurs realize their dreams

by supporting them financially as

well by providing office space and

hardware testing facilities. The

model has been replicated at other

STPI centers.

• TheproposedInformation Technol-

ogy Investment Region (ITIR) near

Bangalore airport is being devel-

oped to bring in investment into the

IT/ITeS sector pegged at an ambi-

tious US$ 20 Billion. This proposed

mega IT township will provide all

essential amenities and state of the

art facilities at one place to create

a self-contained business friendly

ecosystem that rivals the best in the

world.

• Thestateisafrontrunnerine-

Governance initiatives and common

citizens are already benefitting

from schemes like Bhoomi (land

ownership records computerization)

and Khajane (computerization of

Municipal Corporation and State

Government Treasury offices).

Why Invest in Karnataka• TheSTPIschemeisnowspread

over 51 centers across the country

and every state government coordi-

nates with the STPI for the estab-

lishment of a suitable ecosystem to

support the development of the IT

services and ITeS industry. In the

case of Karnataka this coordina-

tion is done at the highest levels

of government and the results

are there for all to see. Improved

government and industry coordina-

tion has resulted in Karnataka being

the highest software exporting state

of India continuously for the past

many years. The state government

has been a leader in the effort

In 1992, Bangalore

was the first city

in India to set up a

satellite earth station

to provide high speed

data communication

services to facilitate

software exports.


SPECIAL REPORT

to foster the development of an

investor-friendly ecosystem, unique

in the country.

• ManyR&Dcenters(electronics,

manufacturing and other major

industries) existed in the state prior

to the onset of the IT revolution,

providing Karnataka a strong tech-

nical base and head start over other

states/regions. It also provided the

state the first-mover advantage that

resulted in a natural progression

from electronics to IT and then to

high end technology R&D in later

years.

• Thestatehasreputededucational

colleges and research centers like

the Indian Institute of Science

(IISc), Indian Institute of Manage-

ment (IIM), Indian Institute of Infor-

mation Technology (IIIT), Hindustan

Aeronautics Limited (HAL) and the

Defence Research and Develop-

ment Organization (DRDO) among

others. Karnataka acts as a magnet

that attracts highly qualified profes-

sionals not only form other states

but also a good number of expatri-

ate workers and managers. This

makes Bangalore a truly cosmopoli-

tan city to live and work in.

• Karnatakahasasalubriousclimate

and most MNCs prefer the state as

a destination over other states. After

pioneering MNCs like Texas Instru-

ments, Motorola, and Honeywell

started their operations in the state,

it soon became a regular feature

to see a new MNC start operations

every month on Karnataka soil.

• Thereareapproximately140semi-

conductor companies across India,

mainly in Bangalore, Hyderabad

and Pune. Nearly 70 to 80 % of

them have a base in Bangalore.

• Thestategovernmenthasworked

closely with STPI to improve

infrastructure in terms of network

connectivity, data centers, multiple

fiber gateways and an incubation

facility for budding entrepreneurs

(Technology Incubation Center).

The collaboration has gone beyond

Bangalore and facilities at Mysore,

Mangalore, Hubli and Manipal are

now enabling other regions of the

state to flourish and be a part of the

progress in the Information Tech-

nology sector apart from creating

employment opportunities in these

regions.

• Karnataka was the first state in the

country to come up with the idea of

rural BPOs. The scheme will have a

long term impact in terms of build-

ing a knowledge work culture in the

state and various incentives have

been rolled out such as provision

for training of the local people and

preference to women entrepre-

neurs.

• Thestategovernmentplansto

set up Information Technology

Investment Region (ITIR), which

will include housing, educational

institutes, healthcare facilities all in

close proximity.

• Bangalore has the highest concen-

tration of IT companies in the world

after Silicon Valley and 2,084 IT

services/ITeS companies operate

from the state.

Karnataka IT Sector StatisticsKarnataka is the frontrunner in soft-

ware exports since the early days of

the IT industry in India. Other states

like Andhra Pradesh, Tamil Nadu,



Maharashtra, Delhi National Capital

region are also fast emerging on

the scene and showing good growth

rates.

Karnataka contribution to software

exports from India was approximately

34% of US$ 46079.53 million total

India exports during year 2008-09.

According to estimates, exports from

Karnataka for the year 2009-10 are

approximately US$ 18,000 million.

Karnataka will be able to maintain an

estimated healthy growth of 15z%

(STPI statistics).

As companies look beyond out-

sourcing opportunities and graduate

to software application development,

business analytics, Knowledge Proc-

ess Outsourcing (KPO) and other

growth areas, exports from these seg-

ments are expected to increase in the

coming years. Notable IT and ITeS/

BPO companies in the state include

Infosys, Wipro, Tata Consultancy

Services, IBM, Microsoft, TechMahi-

ndra, Accenture, Hewlett-Packard,

Figure 4: Software Exports from various States (US$ Million)

Source: STPI

Source: STPI

Cognizant Technology Solutions, HCL

Technologies, Genpact, SAP Labs

India, Google, Yahoo etc.

As companies are looking beyond

the outsourcing opportunities and

looking for software application

development, business analytics,

Knowledge Process Outsourcing

(KPO) and other growth areas, the

exports from these segments are

expected to increase in the coming

0 5,000 10,000 15,000 20,000

Andhra P radesh

Delhi

Haryana

K arnataka

Maharashtra

T amilnadu

Uttar P radesh

n 2006-07 n 2007-08 n 2008-09

n 2009-10 E

Figure 5: Segment wise Software Exports from Karnataka State FY2008-09

Total – US$ 15,639 million

28%49%

3%

20%

n ITeS/BPO n Othersn Technology Software n Enterprise Applications


SPECIAL REPORT

Figure 6: Hardware Exports from Karnataka State (US$ million)

Source: Government of Karnataka and STPI

years. Notable IT, ITeS/BPO compa-

nies are Infosys, Wipro, Tata Con-

sultancy Services, IBM, Microsoft,

TechMahindra, Accenture, Hewlett-

Packard, Cognizant Technology Solu-

tions, HCL Technologies, Genpact,

SAP Labs India, Google, Yahoo etc.

The numbers of Electronic Hardware

units in the state currently have risen to

76 from 27 units in 2001-02. The ex-

ports from these units is also on the rise

but expected to see a slight decline in

growth in 2009-10 due to decrease in

global demand on account of the eco-

nomic slowdown. The state government

is planning to set up Electronic Hardware

Manufacturing Hubs (EHMHs) and units

set up under this scheme would be eli-

gible for benefits as per Karnataka State

Industrial Policy 2009-14.

Bangalore is the hub of IT and BPO/

ITeS companies in Karnataka with ap-

proximately 90% of all companies having

a base in the capital city. The state has

witnessed a phenomenal increase in the

presence of IT companies from 782 in

the year 1999-2000 to a total of 2,084

units currently. BPO/ITeS companies

have also risen from mere 28 in year

2001-02 to currently 270.

0

100

200

300

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500

600

700

800

900

1000

78

178

305369

405

551 562

775825

949 E

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

n 2001-02 n 2002-03 n 2003-04 n 2004-05 n 2005-06 n 2006-07 n 2007-08 n 2008-09

Source: STPI

Figure 7: Growth of IT and BPO/ITeS Companies in Karnataka

0

500

1000

1500

2000

25002500

2000

1500

1000

500

0

1038

28IT Companies BPO/ITeS Companies

69

113

138

185

225248

270

1154

1322

1520

1721

1883

19992084



Karnataka IT Policy 1997 was the

first of its kind in the country and

was launched to provide the required

impetus to the budding Informa-

tion Technology sector. At that time,

the meaning of the term IT was still

blurred in the minds of most peo-

ple. The state government saw an

opportunity in the newly globalized

Indian economy and because of the

presence of existing R&D and manu-

facturing units witnessed the estab-

lishment of MNCs on Karnataka soil.

Later Electronics City and STPI Ban-

galore paved the way for steady IT/

ITeS sector growth in the state. STPI

worked in close co-operation with

the Government of Karnataka and

developed the requisite infrastructure

like data centers, bandwidth and net-

working facilities. Since then, Karna-

taka’s share of total software exports

from India has been consistently

in the range of 35 to 40%. Various

incentives offered under the State

IT Policy include exemption of entry

tax on capital goods and power tariff

concessions; all other State Industrial

Policy incentives are also applicable

to IT and BPO/ITeS firms.

The State IT Policy was envisaged

with a broader vision - that all state

government departments should

come under the umbrella of IT and

start IT initiatives to ease the daily life

of the citizens. With this in mind the

state education department provided

computers to schools, the state

revenue department came up with

schemes such as Bhoomi, Khajane,

Banglaoreone, PoliceIT and others.

State IT Policy InitiativesImpact of IT on Social Fabric Policies are instruments of the state

to spread growth and ensure the

reach of economic benefits to the

common people with the help of IT

as a tool. As mentioned in the state’s

Millennium IT Policy, the main thrust

was on women empowerment and

poverty eradication. The hypothesis

was that if IT brings new opportuni-

ties to the people of Karnataka, the

standard of living of the state’s popu-

lation would automatically improve.

Also, it would bring huge investments

from MNCs that the state could use

to improve infrastructure facilities. If

we see the status of this hypothesis,

Bangalore has become one of the top

IT hub of not only India but of the

world and is referred to as the ‘Sili-

con City of India’ or the ‘IT capital of

India’. With the influx of talent from

all over India, the city’s landscape

has evolved into a truly cosmopoli-

tan hub of economic, commercial,

academic and cultural activities. In

Karnataka, the IT industry provides

direct employment to nearly 600,000

people, raising their living of stand-

ard and hundreds of thousands more

are dependent indirectly on the sec-

tor. IT penetration is increasing into

various facets of common life of the

state’s citizens and has now become

the norm of the day. For fulfilling fu-

ture demand and encouraging broad

based development and employment

opportunities, the state government

has provided computers to most

village schools (both primary and

secondary), preparing the base for

The Karnataka

Government is drawing

up a new ICT Policy,

combining telecom

with IT to give a fillip

to infrastructure

development across the

state.


SPECIAL REPORT

future generations of IT professionals

to fill the gap in demand and supply

of quality human resources for the IT

industry.

Brief Note on Investment Process• KarnatakaUdhyogMitra(KUM)

is the single point contact for all

project clearances and acts as a

nodal agency. The investor has

to provide details like the total in-

vestment proposed, total planned

employment generation, means

of finance, electricity and water

requirements, pollution issues etc.

• Oncethesedetailsareready,the

investor has to obtain necessary

clearance from the concerned

departments.

• Ifthelandrequiredisbelow50

acres, then the state government

has a single window clearance

committee, which meets almost

once every month. If the land

requirement is more than 50

acres, the investor has to go to a

high level clearance committee;

the meetings for this high level

committee are normally held once

every three months.

• Copiesoftheinvestor’sapplica-

tion are sent to different state gov-

ernment departments and all con-

cerned departments are invited to

these meetings. On the meeting

day, respective department rep-

resentatives attend the meeting

and present their opinion of the

project. Approval is granted on

the spot if all the requirements are

met. In case any issue is raised,

the state government informs the

investor to take appropriate steps

to clear the formalities.

• Alltheseactivitiesarenormally

completed in 15 to 30 days;

depending on the project scale,

investment, employment genera-

tion capacity of the project the

time taken could vary.

Semiconductor Policy 2010India in recent years has witnessed

growth in the semiconductor sector.

The industry includes VLSI Design,

Embedded Software and Design

of Hardware Boards. Embedded

Software contributes approximately

81% of the semiconductor market

revenues. While the global market

size is estimated at US$ 194.8 Bil-

lion, according to industry estimates,

annual revenues of the Indian semi-

conductor and embedded design

services industry are estimated at

US$ 6.56 Billion in 2009. The India

market size is projected to touch US$

7.50 Billion in year 2010. Currently

over 200 companies are operating

in this specialized area including

major players like Texas Instruments,

Intel, AMD, National Semiconduc-

tor, Philips, Freescale Semiconduc-

tor etc. Nearly 80 of these firms are

based out of Bangalore.

Industries like Telecommunica-

tions, Consumer Electronics, IT and

office automation are providing the

growth impetus and require raw/

finished semiconductor material for

proper functionality of end products.

The domestic growth drivers for the

semiconductor sector are mobile

handsets, desktop PCs and notebook

PCs, GSM base stations, TV set top

boxes and energy meters.

Bangalore is the home to approxi-

Out of 200 semiconductor

companies in India, nearly

80 of these are based out

of Bangalore, Karnataka.

Bangalore is the home to

approximately 70% of the

country’s chip designers

and contributes

approximately 80% of

the sector’s revenues in

design.



mately 70% of the country’s chip

designers and contributes approxi-

mately 80% of the sector’s revenues

in design. To further promote invest-

ment in the areas of semiconductor

design, high tech manufacturing and

to focus on increased use of solar

energy, the state government has

come up with its own Semiconductor

Policy 2010.

Industries like Telecommunica-

tions, Consumer Electronics, IT and

office automation are providing the

growth impetus and require raw/

finished semiconductor material for

proper functionality of end products.

The domestic growth drivers for the

semiconductor sector are mobile

handsets, desktop PCs and notebook

PCs, GSM base stations, TV set top

boxes and energy meters.

Bangalore is the home to approxi-

mately 70% of the country’s chip

designers and contributes approxi-

mately 80% of the sector’s revenues

in design. To further promote invest-

ment in the areas of semiconductor

design, high tech manufacturing and

to focus on increased use of solar

energy, the state government has

come up with its own Semiconductor

Policy 2010.

Figure 8: Revenue Share for VLSI, Board Design and Embedded Software

Incentives for the Semicon-ductor Sector• TheKarnatakaInformation

Technology Venture Capital Fund

(KITVEN Fund) was set up to

provide financial assistance to IT

companies. To benefit semicon-

ductor startup companies, the

state government would provide

additional amount of US$ 5.55

million, towards 26% contribu-

tion to the KITVEN IT Fund to

help raise further funds from

the market to assist start up

semi-conductor units engaged in

design and embedded software.

Many fresh graduates from the

state’s engineering colleges opt

for VLSI and embedded design

specializations to take up a career

in the field and some have shown

interest in venturing into entre-

preneurship. KITVEN is one such

initiative to help entrepreneurs

partially meet their capital invest-

ment needs.

• TheOrchidTechSpaceInte-

grated Incubation Center at STPI

Bangalore, with the support of the

state government is designed to

create opportunities for entrepre-

neurs. With this up to 10 startups

Source: Industry

13%

6%

81%

n Embedded Software n VLSI Designn Board Design


SPECIAL REPORT

can use the facilities like high-end

desktop PCs, servers, data center

and an international gateway with-

out worrying about the capital ex-

penditure. The government is now

planning to augment this facility

to add a characterization lab with

all the latest equipment needed

for hi-end design work. The main

feature of this facility is its unique

Public Private Partnership (PPP)

business model between govern-

ment and industry. Currently

approximately 8 to 10 startups are

working out of the Orchid Tech

Lab.

• Assembly,testing,markingand

packing process (ATMP) and

setting up a chip manufacturing

unit demands high investment

normally in the range of US$ 100

to US$ 500 million. To encourage

setting up of ATMPs, the state

government announced incentives

by lowering the threshold invest-

ment for ATMPs. For ecosystem

units with investment above US$

8.88 million and up to US$ 22.22

million the incentives would be

based on employment generation

potential and on a case-to-case

basis.

• Tofacilitatedevelopmentofthe

semiconductor ecosystem and to

encourage innovation and R&D in

Chip Design and Product Develop-

ment, the state government plans

to set up the ‘Karnataka Fund for

Semi Conductor Excellence’ of

US$ 2.22 million. This will cover

up to 50% R&D expenses of pri-

vate companies, subject to a limit

of US$ 22,222 per unit.

• Tomeetthedomainspecific

human resource needs of the sec-

tor, the state government would

establish a specialized school

under IIIT at a cost of US$ 2.22

million and strengthen the existing

Research Labs in the institute at

a cost of US$ 1.11 million, with a

25% contribution from the indus-

try.

• Variousfiscalincentiveswillbe

offered to MSME, Large and Mega

projects ranging from Investment

Promotion Subsidy, Exemption

from Stamp Duty & Entry Tax,

concession in Registration Charg-

es, Special Incentives for Export

Oriented Enterprises, interest free

loan on VAT and special incen-

tives for setting up units in low

Human Development Index (HDI)

districts. For more information,

investors are encouraged to refer

to the State Semiconductor Policy

2010 and Karnataka Industrial

Policy 2009-2014.



To cater to the growing demand from

industry and to provide all basic

necessities in one place, the Govern-

ment of India in partnership with the

Government of Karnataka has come

up with the idea of Information Tech-

nology Investment Region (ITIR).

These region will be demarcated

areas with excellent infrastructure

(including work space, educational

institutes, health facilities etc) and

will provide an investor friendly

ecosystem.

Salient features of ITIR• Theregionwouldcomeupnear

Bangalore International Airport

(BIAL) with employment potential

of approximately 255,000 directly

and over 857,000 indirectly. The

targeted investment is pegged at

US$ 20 Billion by 2030.

• Theregion’smainfocuswillbe

on IT services BPO/ITeS and EHM

(Electronics Hardware Manu-

facturing) units. ITIR will have a

minimum area of approximately

40 square kilometers. This may

include Industrial Parks, Free

Trade and Warehousing Zones,

SEZs and Export Oriented Units

(EOUs).

• Internalinfrastructureforthiswill

be built and managed by a devel-

oper or a group of co-developers.

Role of the State Government• TheStateGovernmentwillplay

Information Technology Investment Region (ITIR)

a lead role in setting up this ITIR

and identify a suitable site (prefer-

ably non-agricultural land). The

Government will also conduct a

techno-economic pre-feasibility

survey for the project. The project

will be developed in two phases

and a separate urban local body

may be constituted to govern the

area if found necessary at a later

stage.

• Thestategovernmentwillensure

adequate power, water supply,

sewerage and effluent treatment,

besides maintaining state roads,

environmental issues pertaining to

the region and the social infra-

structure. The state government

may also notify additional incen-

tives or benefits.

Investment opportunities in IT/ ITeS SEZs, IT Parks

Karnataka has in principle ap-

proved 38 SEZs and currently 47 IT

Source: STPI

Figure 9: Growth of Software Exports from Karnataka IT/ITeS SEZ units (US$ million)

0

200

400

600

800

1000

12001200

1000

800

600

400

200

0

289

1012

2007-08 2008-2009


SPECIAL REPORT

units are housed in 14 operational

IT/ITeS SEZs. The area allotted to

these is approximately 1.292 million

sq. mtrs. with a total built up space

of more than 1.884 million sq. mtrs.

The operational IT/ITeS SEZs provide

direct employment to over 34,000

and indirect employment to nearly

14,000 people.

Software exports from Karnataka

SEZ units saw an unprecedented

growth of nearly 250% during year

2008-09. Available estimated figures

up to December 2009 are approxi-

mately US$ 777.77 million. One of the

main developer companies located in

the SEZs is Wipro Limited with three

operational units in Dodda Kannena

Halli SEZ and two units in Electronics

City Bangalore SEZ. Infosys Limited

and ITPL also have one operational

unit each in their Mangalore and Ban-

galore SEZs, respectively.

The STPI have also set up IT Parks

in Mysore, Mangalore, Hubli and Ma-

nipal similar to the one in Bangalore,

equipped with all modern amenities

and IT infrastructure. These IT parks

witnessed positive trends and saw

increased participation from industry

majors like Infosys and Wipro among

others. For example Mysore SEZ soft-

ware export revenues were estimated

at US$ 168.88 million in 2008-09

and it is emerging as an alternative

destination for the Services and Tour-

ism sectors. 49 firms are registered

with the STPI in Mysore. Mangalore

saw software export revenues of US$

151.33 million in 2008-09 and is fast

emerging as a hub for logistics, manu-

facturing and services, with 24 firms

currently registered with Mangalore

STPI. It also has the added advantage

of an international airport and seaport.

Hubli is also becoming the choice of IT

and ITeS firms with 13 firms regis-

tered with the STPI unit in the city and

revenues estimated at US$ 0.2 million

for 2008-09.



India has proved itself as a global BPO/

ITeS hub and has been ranked highest

in terms of both Human Resource

availability and Quality. Bangalore has

been a hub of the BPO sector from the

very initial stage during early 2000s.

Due to the global slowdown the sector

saw single digit growth for the first time

in 2008-09. According to NASSCOM

(National Association of Software

and Services Companies) figures, the

Indian BPO sector is estimated to have

touched US$ 12.4 Billion in 2009-10,

a growth of 6% over the previous fis-

cal. With increasing competition from

other developing countries, Indian

firms have now focused on process

automation, opting FOR industry best

practices and by offering domain spe-

cialization services in addition to their

low cost advantage.

Government Initiatives in Rural BPO

The Government of Karnataka now

has plans to bring IT revolution to Tier

II and Tier III cities like Hubli, Mysore,

Manipal and Shimoga to benefit local

communities. The state government

has also come up with the novel idea

of starting BPO revolution in rural

regions. The strategy has a long term

view of planning for infrastructure and

skill development in these areas and

to increase employment by roping in

local entrepreneurs. As a backdrop to

this initiative the state government set

up computer training centers in 224

Revolutionizing Tier II, Tier III Cities and Rural Areas with the help of IT and BPO

locations across the state during 1999-

2000 and provided computer training

to nearly 100,000 youths at subsidized

training and infrastructure cost. With

this basic training, these youth can

hone their skills in a particular opera-

tion and will be ready to join main-

stream activities with little investment.

• Forthisthestategovernmentwill

provide US$ 88,889 to entrepre-

neurs (preference to women).

At first, US$ 44,444 per unit will

be given for setting up the infra-

structure like computer, internet,

furniture requirements, telephones

etc; then for training a workforce

of nearly 100 employees a sum of

US$ 22,222 will be given. Another

US$ 22,222 divided into equal US$

11,111 per annum will cover rental

and other operational costs based

on their real costs.

• Forbenefittingfromthisscheme,

entrepreneurs have to run the

unit for a minimum of 2 years in

any rural area with population less

than 100,000, with 100 employees

trained and employed. The scheme

has already 16 units running.

• Thestategovernmenthascleared

another 26 proposals from 134

applications for rural BPOs. Most

of their work involves PDF conver-

sion, raising donations, form filling

etc. It is a pure business model

where they can bring business from

any customer except government

departments.

The Government

of Karnataka now

has plans to bring IT

revolution to Tier II and

Tier III cities like Hubli,

Mysore, Manipal and

Shimoga to benefit

local communities. The

strategy has a long term

view of planning for

infrastructure and skill

development in these

areas and to increase

employment by roping

in local entrepreneurs.


SPECIAL REPORT

Major IT Initiatives of Karnataka State Government

Information Technology has

changed the scene in villages and

rural areas in the state. Projects like

Bhoomi, BangaloreOne, Khajane,

Saarige and many more have simpli-

fied the process of application for

various government services in a

transparent and effective manner.

The total expenditure on e-Govern-

ance projects for the year 2009-10

was around US$ 88.88 million. This

is expected to touch US$ 133.33

million for the year 2010-11.

e-Governance Initiatives As a part of the vision from the state’s

Millennium IT Policy, the Government

of Karnataka is committed to improve

the standard of living of all people

and increase women’s participation in

decision making processes, espe-

cially those related to their income

and overall economic, physical and

social emancipation. For achiev-

ing this, the e-Governance and IT

and BT departments of the state are

involved in several rural development

projects. Karnataka won the annual

National Award for e-Governance in

January 2010 that is presented by the

Department of Administrative Reforms

& Public Grievances of the Govern-

ment of India. ‘Anytime, anywhere’

is now becoming old and the state

government is now planning ‘anytime,

anywhere, any device’ services. The

major projects run by the state gov-

ernment are:



• Bhoomi (land records compu-

terization): The project aims to

establish clear ownership of land

titles, recording succession of

ownership, recording agricultural

crop details and helping farmers

obtain loans from banks in a fast-

er and transparent manner. The

complexity of the project can be

judged just by noticing that it now

covers all 6.7 million rural land

holders with more than 20 million

records of rights, tenancy and

certification (RTC); the system is

operational in all 177 talukas in

Karnataka.

• BangaloreOne (urban citizen serv-

ices): This is an online govern-

ment service interface covering

services like payment of utility

bills like electricity, telephone

and water, payment of stamp and

registration duty, application for

passports, train and flight book-

ings in coordination with con-

cerned departments and authori-

ties. The BangaloreOne system

received 10.6 lakh logs in a

February 2010 resulting in trans-

actions worth US$ 577.77 million.

BangaloreOne has 60 centers and

the state government plans to in-

crease these to 100 (the number

for the same type of service for

any other state capital is approx

34). BangaloreOne covers 43

transactional facilities covering

both G2C and G2B processes and

covers 748 sq. km. of land area.

The state has the highest number

of footprints from citizens for

availing services under initiatives

similar to BangaloreOne. Shimo-

gaOne, MysoreOne, TumkurOne

and GulbargaOne have already

been operationalised bringing the

total number of cities under this

initiative to nine.

• TheGovernmentofKarnatakahas

implemented Human Resource


SPECIAL REPORT

Management System (HRMS) and

approximately 620,000 govern-

ment employees use the same.

The project was launched in

January 2007 with a total invest-

ment of US$ 0.97 million. In

future, the state is also planning

to extend this service platform to

Municipal Boards and Municipal

Corporations.

• TheGovernmentofKarnataka

e-Government System (EPROC)

platform has received wide appre-

ciation and the state is providing

services to Government of India

PSUs, for example, HAL uses the

EPROC to meet their e-procure-

ment needs. The World Bank

has also shown interest in this

platform for its operations in the

country. The project was started

with a total investment of US$

2.10 million and 40 state govern-

ment departments currently use

this service.

• Othersnotablee-Governance

initiatives of the state government

are - Mukhya Vahini -To develop

a database on Karnataka for

developing a sophisticated deci-

sion support system for decision

makers. Khajane (Treasury) - To

computerize treasuries all over

Karnataka state, using which the

government can check the avail-

ability of funds at any moment

in real time and act accordingly.

With the help of ‘Agricultural Price

Information’ system the prices

of commodities are easily avail-

able to farmers all over the state.

Computerization of Municipal

Corporations to simplify payment

of property tax, issuance of birth

and death certificates and griev-

ance redressal is already under

place. Saarige concentrated on

computerization of all the trans-

port offices in Bangalore. Other

notable projects include Reshme

- to introduce online transactions

in the silk market, and Police IT to

enhance Police Intelligence.

SWAN, SDC and CSCTo connect all offices and villages

through voice and video network, the

Government of Karnataka is building

a State Wide Area Network (SWAN),

State Data Center (SDC) and Com-

mon Service Centers (CSCs) across

the state.

SWAN was initiated in December

2009 with a total estimated cost of

US$ 9.60 million. The state SWAN

is first in the country to be on Multi

Protocol Label Switching (MPLS),

virtually bringing down the network

downtime to zero. Till April 2010,

it had reportedly connected 3,000

offices (compared to any other SWAN

in the country, which normally covers

up to 300 offices); the SWAN is soon

expected to cover all regions in the

state. 176 Government Business

Centers have also been started to

assist in the IT needs of offices at

taluka headquarter level. The SDC

will act as central data repository,

which can be accessed not only

through the Internet but also through

IP phones. Latest technological ad-

vancements like servers, storage and

networking devices are being set up

with Central Government assistance

of US$ 12.22 million. The total budg-

et for the project is US$ 2.20 million.

In case of CSCs, 79% of the Gram

Panchayats are connected through

wired broadband connections.

The state SWAN is first

in the country to be on

Multi Protocol Label

Switching (MPLS),

virtually bringing down

the network downtime

to zero



Karnataka State Government has

various plans for overall development

of the IT and BPO/ITeS sector and to

deal with the problems which could

restrict the growth of the industry.

The state is not only looking at the IT

sector but plans for the semiconduc-

tor sector and the animation sector

are also on the anvil.

• TheGovernmentofKarnataka

after implementing the Millen-

nium IT Policy is now mulling

over the possibility of adding the

Telecom sector into future policy

initiatives. Hence, the future

policy may be named Information

and Communications Technology

(ICT) Policy. In this direction the

state government has already held

two or three rounds of discus-

sions with industry representa-

tives and policy experts. This may

include issues related to labour

department like women working

late nights (currently allowed in

BPOs but not in IT companies).

Karnataka may be one of the first

states in the country, which has

combined IT and Telecom sector

together into a single policy initia-

tive.

• Fortheanimationsector,the

Government of Karnataka plans to

formulate the ‘Animation, Gam-

ing and Special Effects Policy’.

The animation sector has seen

a steady growth in recent years

with MNCs like DreamWorks and

Technicolor having set up their

facilities in Bangalore. However,

availability of quality human

Future Initiativesresources is still a concern area

that needs to be addressed. Other

problems with the sector are that

parents and the young generation

still do not consider animation as

a full time career. For increasing

awareness the ‘Karnataka Anima-

tion, Visual Effects and Gaming

Summit’ was organized during

March 2010 by the Karnataka An-

imation Industry Association and

was partly organized and funded

by the state government. Rural ar-

eas like Channapatna (famous for

its hand painted wooden dolls),

Srirangapatna and other regions

between Mysore and Bangalore

have an excellent base of human

resource in painting, sketching

and wall painting because of their

inherited artistic skills. To nurture

them and make them aware of

the opportunities in the animation

sector, the state government plans


SPECIAL REPORT

to set up a ‘Finishing School’.

Plans for an Animation City or

Animation Park on the lines of IT

Parks are also on the anvil, which

could provide a common resource

pool for all companies to minimize

the huge cost involved in software

and rendering activities.

• Karnatakahasidentifiedthe

future prospects of nano technol-

ogy. In India, nano technology

is already being used in textiles,

chemicals and cosmetics. Reli-

ance Industries is the biggest user

of nanotechnology in India. While

the state has wherewithal in terms

of technological R&D, it has not

been able to convert the same

into a successful commercial

model. Government of Karna-

taka organized ‘Bangalore Nano’

event in 2007, 2008 and the next

edition is planned for December

2010 to increase the awareness

about the applications of nano

technology. The state has also

formed a Vision Group comprising

of industry and academic experts.

In addition, 14 acres of land near

the Banaglore-Tumkur highway

have been sanctioned for setting

up the Indian Institute of Nano

Science and Technology and the

project is already in implementa-

tion phase.

• Toincreasebusinesswithnon-

English speaking countries, the

Government of Karnataka has

signed Memorandum of Under-

standing (MOUs) for collaboration

with state and city nodal agen-

cies such as Bavaria (Germany);

San Francisco and now Georgia

(both USA) have shown interest in

transfer of technology. Last year

Mexico was the BangaloreIT event

partner. The state government in-

directly facilitates such countries/

states to enter into partnership

with large Indian industrial houses

to benefit from each other’s tech-

nological expertise.

• Todealwiththeproblemofland

allocation for growth of industry the

Karnataka Industrial Areas Develop-

ment Board (KIADB) has created a

land bank in various regions of the

state. Currently they have 35,000

to 40,000 acres of land and plan to

increase this to 100,000 acres in

different parts of the state.

• Toaugmentpowersupplythe

government is establishing ap-

proximately 11,000 MW of power

projects based on Coal, Gas and

Combined Cycle Power Plants

in Kudgi, Yeramarus, Gulbarga

and Ghataprabha, Belgaum,

Gadag, Harapanahalli and Bidadi.

Karnataka also plans to reduce its

carbon footprint by adding about

4,000 MW capacity in the next 5

years through renewable energy

sources. Hence, power generation

by biomass and wind turbine is

being explored.



M The Karnataka Government is drawing up a new ICT Policy,

combining telecom with IT to give a fillip to infrastructure

development across the state.

M The Semiconductor Policy, Animation, gaming and Special

Effects Policy and plans to set up a Hardware and Animation

City are on the anvil to propel growth in these emerging sectors.

M Information Technology Investment Regions (ITIR) and IT parks

across the state projected to invite an investment of more than

US$ 20 billion by 2030.

M Tier II and Tier III cities hold the future for the development of

the IT services and ITeS sector due to the availability of skilled

manpower and infrastructure facilities at comparatively lower

costs.

M To augment power supply, the Government of Karnataka is

establishing approximately 11,000 MW of power projects and

plans to reduce the state’s carbon footprint by adding about

4,000 MW in the next 5 years through renewable energy

sources.

M ‘Anytime, anywhere’ is now becoming an old concept, the state

government now plans to introduce ‘anytime, anywhere, any

device’ services for Karnataka citizens.

Key Highlights


SPECIAL REPORT

For Information and assistance, please contact

Principal Secretary to the Government

Department of Information Technology, Biotechnology and Science & Technology

Government of Karnataka

6th Floor, 5th Stage, M.S. Building, Bangalore - 560 001, Karnataka, India.

•Ph:+91-80-22280562/22265943•E-mail:[email protected]

Managing Director

Karnataka Biotechnology & Information Technology Services

# 9, 2nd Floor, UNI Building, Thimmaiah Road, Vasant Nagar

Bangalore - 560 052, Karnataka, India.

•Ph:+91-80-22207006/22370309•Fax:+918041327510

•E-mail:[email protected]

Visit : www.bangaloreitbt.in

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