Realtors to develop 20mn sqft office space for IT firms in Hyd

Over 20 million square-feet of office space to accommodate IT and software companies will be built by private IT park developers in the next three years in Hyderabad.
This marks a new phase in the development of the IT sector in Andhra Pradesh where private players are all set to develop these facilities on their own without the support of government in terms of land allocation or subsidy. In fact, about 4 million square-feet of office space meant for IT operations is already under construction in the city.
Over 10 private IT park developers, including DLF, Lanco Infratec, Divyashree, Rahejas, Dakshin Info, and Pioneer IT Park have received necessary approvals from the IT&C department to construct facilities in Hyderabad.
The government normally extends incentives like reimbursement of registration fee and power at subsidised rates to the companies, which locate their operations in IT parks.
“This shows the growing demand from IT companies to either locate or expand their operations in Hyderabad, which is a welcome sign for the future of the IT sector in the state,” K Ratna Prabha, secretary, IT&C department, told Business Standard here on Monday.
Since the construction of L&T Infocity in 1999 as a joint venture with the state-owned Industrial Infrastructure Corporation (APIIC), the government has been providing land at concessional rates to IT companies and infrastructure developers in an effort to attract more and more investments and jobs into the IT sector.
Realising the vast IT potential in Hyderabad, private developers have now started building infrastructure parallel to the government’s efforts. Bangalore, India’s silicon valley, too witnessed private players jumping on to the IT infrastructure bandwagon. Now, Hyderabad was catching up with Bangalore, Ratna Prabha observed.
Private players may get a huge chunk of the pie by going into the IT infrastructure development as the land with APIIC is fast exhausting after allocating to several companies including software giants Infosys, TCS and Wipro.
Even in the 130-acre IT SEZ, proposed to be developed by the state government, there is no room as the allotment to small and medium companies has been made.
Another IT park proposed on 1,300-acres near the upcoming international airport is unlikely to leave any space for more IT firms as Infosys alone may get a huge chunk of it.
The IT secretary said the government was scouting for more land around Hyderabad to locate more firms. Thus, the growing demand for infrastructure facilities and land in the state capital leaves the field open for private developers.