IT firms look to tier-II cities in Telangana

Several companies have already started operations and more such firms are approaching the State government.

By Author  |  Published: 5th Feb 2017  12:01 amUpdated: 5th Feb 2017  12:02 am
Tier-II Cities
Representational Image

Hyderabad: Thanks to the Telangana government’s Rural Technology Centre Policy of providing major incentives to IT firms willing to come forward to set up their units in tier-II cities and towns, some companies are showing interest on this front.

In its IT policy, the State government wanted to encourage the setting up of IT firms in tier-II cities of the State as the capital city had already become a software and hardware hub with huge investments. Taking the call from the State IT department several companies have already started their operations and more such companies are approaching the State government for setting up operations.

For instance, Telekha Networking Technologies has already started functioning in Huzurabad of Karimnagar district with an investment of Rs 10 lakh, the company also recruited nearly 20 staff from Karimnagar district and is giving hope to native talent. Eclat Info Tech also started its operations in Karimnagar town recently.

Proposals to govt
Similarly, a few other companies below Rs 40 lakh investment in IT firms have submitted proposals to the State government for setting up new units in Mahabubnagar, Peddapally, Bhongir, Warangal, Jangaon, Medak and Nizamabad districts.

“It is a welcome move, local talent can be utilized at its doorstep and migration prevented to capital city, and the government’s proposal will boost IT sector as well as development of tier-II cities,” said IIIT-Hyderabad faculty Ramesh Lognathan.

Huge incentives
Under the TGRTCP, the government was giving subsidies like 25 per cent reimbursement on internet charges for the three years, rental subsidy of 25 per cent per square feet, recruitment assistance at the rate of Rs 20,000 per employee for a minimum yearly recruitment of 50 new IT professionals from the colleges and training subsidy of Rs 2,500 a month per person.

Skill centres
State government’s skill development centres are giving a boost for the expansion of IT sector in rural areas. Through the skill development centres the Panchayat Raj Department is imparting training to youth in computers and English language.

Now the State government has decided to tie up these skill development centres to the newly established IT firms to provide employment.

After successful result of T-Hub at Hyderabad and Warangal cities now the IT department is mulling extending the T-Hubs to the type-II cities. During the first phase a T-Hub has already come up at Warangal and entrepreneurs were setting up their units in it. Now the government is planning to extend it to other parts of the State, said IT Department officials.