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Rediff.com  » Business » This is what Infosys has invested in Karnataka

This is what Infosys has invested in Karnataka

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October 21, 2005 19:53 IST

Infosys Technologies Limited on Friday hit back at former prime minister H D Deve Gowda -- who had said that Infosys Chairman N R Narayana Murthy had not contributed anything to bring the Bangalore International Airport to fruition -- presenting data on its investments in Karnataka.

A miffed Narayana Murthy had on Thursday resigned as the Bangalore International Airport Ltd chairman after shooting off a letter to Karnataka Chief Minister Dharam Singh expressing his displeasure over Deve Gowda's comments and his decision to step down.

Rebutting Deve Gowda's comments on the lack of contribution by Infosys to the state, Infosys has listed out the investments it has made and the number of jobs it has created in Karnataka.

Here is a point-by-point statement from Infosys.

Deve Gowda's comment: ". . . indiscriminate allotment of land through KIADB in the name of development of IT Industry. Some of the IT companies including Infosys Technologies have already taken substantial land in the name of IT development in different cities of our state. What exactly in the employment generated against the extent of land allotted is a matter to be examined carefully. Infosys has acquired land measuring 78 acres in Bangalore, 350 acres in Mysore. . ."

Infosys clarification:

Details of Infosys development centres in Karnataka

Cities in Karnataka

Investment in Rs cr

(As of Sep 30, 2005)

Total area

(Acres)

Built up area

(Million sq.ft)

Revenue in Rs cr

(Last 12 months)

Seats

(As of Sep 30, 2005)

Bangalore

1031

79.76*

2.41

3,535

14,465

Mysore

617

315.60**

2.52

279

2,934

Mangalore

96

2.75

0.20

512

1,400

*Fully utilised; 8.97 acres bought in the open market; 18.26 acres allotted by KEONICS; 52.53 allotted by KIADB; by consent acquisition with the landowners.
** Partially utilised; 5 million square feet to be constructed, land allotted acquired at market rates.

Facts

  • Total investment in Karnataka amounts to Rs 1,744 crore (Rs 17.44 billion).
  • KIADB terms allow a FAR of 1.5 and land cover of 30%. We have built our campuses within these norms.
  • Out of the total of 46,000 employees, 22,000 jobs have been created in Karnataka alone.
  • Infosys software exports from Karnataka amount to 14% of the total IT exports of Karnataka.
  • Infosys has generated employment for over 2,500 workers (housekeeping, landscaping, etc.) from around the campuses in Karnataka and many more jobs have been created through support industries.
  • Infosys' Bangalore campus is the largest software export unit from any single location in India.
  • Bangalore also houses the largest number of employees.

Data on Mysore

  • In Mysore, Infosys has been allotted 315.60 acres of land. In the first phase, Infosys has built a world-class Global Education Centre and Infosys Leadership Institute (ILI) covering an area of 218 acres. The education centre, one of the largest in the world, is a fully residential complex and trains technology professionals. It has the capacity to train 4,500 people at any time. ILI grooms future leaders of Infosys.
  • Infosys has dedicated 8 acres from the total allotment for a green belt.
  • Development work on 40 acres of land will start shortly.
  • Infosys has proposed a SEZ in 50 acres, which will be developed in the third phase.

Deve Gowda's comment: ". . . Infosys has been allotted 311 acres in Mangalore."

Infosys clarification:

Data on Mangalore

  • The Government of Karnataka recently acquired 550 acres of property for an IT SEZ in Mangalore. Infosys has been allotted 311 acres of land.
  • Out of the 311 acres of allotted land only 50% is usable because of the undulating topography.
  • The usable land will be utilised fully with an investment of Rs 300 crore (Rs 3 billion), to create 6,000 seats in the first phase.
  • The land has been acquired at market rates, with no concessions.

Deve Gowda's comment: ". . . Infosys has recently applied for about 845 acres land in Ittangooru, V Kallahali, Yamare, Sarjapura, etc."

Infosys clarification:

Facts

  • Infosys had made an application to a high-level government committee for land in the year 2000. No land was granted to us. We have made subsequent applications which have been approved on three different occasions.
  • Infosys has requested KIADB to acquire the land after securing zoning requirements from the government and complying with the law. The land is being acquired on a consent basis and after paying the market price to the landowners. No special concession have been sought from the government.
  • The land has been sought as two different plots. On one plot of land, a software development center will be set up, which will generate employment for 25,000 people.
  • The second plot of land is being sought, a short distance away, to provide residential facilities for our employees and to set up essential amenities like a school and a hospital. This will provide Infoscions with a better quality of life and avoid long commutes.
  • Both the plots will be fully utilised for the purpose of the company as per the government requirements, with a proposed investment of Rs 1,500 crore (Rs 15 billion), in the first phase.
  • All these proposals have been vetted by various departments of the Government of Karnataka and have been reviewed and approved by high-level committees headed by various chief ministers of Karnataka.

Deve Gowda's comment: ". . . Wipro, Intel, Accenture, IBM, HP, Honewell etc, which have not been given any land, but are functioning mostly in rented buildings. . ."

Infosys clarification:

  • In Electronics City alone, two of the companies listed have large campuses.
  • Another company has a large campus on the Outer Ring Road.
  • Rented premises, built by real estate developers, also require land and work space and can only be constructed according to the available FAR. Surely, our leaders do not recommend that we go to real estate developers only and not build campuses ourselves.
rediff Business Desk
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