Karnataka promises Infy a smooth walk in IT park.

The Karnataka Government has asked Infosys to reconsider its decision to pull out of the IT park and assured it that all issues will be addressed.

The Government has also asked the company to pay the remaining 80 per cent of the amount owed by it for land allotted to the project.

The software major recently announced its intention of pulling out of the IT park, which is close to the Bangalore airport, due to water and power shortages apart from poor road infrastructure.

Addressing reporters, Karnataka Chief Minister Siddaramaiah said the Government has spoken to Infosys and that all the issues cited by the company would be resolved.

'Infosys is Karnataka's baby and we will not let it go,' said SR Patil, Karnataka IT & BT Minister. Also, the matter of Infosys moving to Electronics City will be discussed, added government officials.

While on the one hand the Government has made these assurances, on the other it has asked Infosys to pay up the remaining dues, to the tune of Rs. 58.32 crore. The amount is outstanding from 2012, say senior government officials. Officials also added that the Government has already waived interest of Rs. 13.71 crore.

Till date, 60 acres have been reserved for Infosys, said Siddaramaiah. Infosys officials declined to comment.

However, some industry sources said that Infosys had not signed a lease agreement but had merely paid a token amount.

The Karnataka Government says that other IT companies have not voiced any concerns around infrastructure as Infosys has done and pointed to the target of ₹400,000 crore in IT exports by 2020 as a sign of the confidence companies have in the State.

'We are the second-largest IT cluster in the world after Silicon Valley in the US, and our intention is to be No. 1 and not compete with neighbouring States,” said Patil, commenting on talk about Infosys moving out of Bangalore to other neighbouring States.

Infosys was not happy about the fact that the Government had promised a four-lane road but instead provided a two-laner.

'About 70 per cent of the road is done and the remainder will be completed in three months. 'Treated water' and 200 MW of power will be available in a year,' said Siddaramaiah.


HBL