ict in india
TRANSCRIPT
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ICT Developm ent inICT Developm ent inICT Developm ent inICT Developm ent inICT Developm ent inICT Developm ent inICT Developm ent inICT Developm ent inInd iaInd iaInd iaInd iaInd iaInd iaInd iaInd ia
J A ChowdaryPresident & Managing Director, PortalPlayer Pvt. Ltd.
President of HYSEA
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ICT Development in India
India Advantage
Current ICT scenario in India What are the Strategies for sustained growth
Impact of ICT dev on Digital Divide
Case study of AP ICT implementation Summary
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ICT Development in India
India Advantage
Current ICT scenario in India What are the Strategies for sustained growth
Impact of ICT dev on Digital Divide
PortalPlayers case study Summary
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India Advantage
Large Economy
$ 450 bn GDP: 4th largest in Purchasing Power Parity Stable growth and strong macro-economic parameters
GDP Growth rate over 6% in last 5 years
Declining inflation rates-under 5%
Stable exchange rate-5 year CAGR depreciation under 6%
Current account deficit averaging 1%
External debt / GDP under 25%; short term debt manageable
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India Advantage
Stable politico legal system
Rapid approach to globalization Human resources
Large pool of intellectual capital
English as medium of education
Fast growing middle class group
Good educational infrastructure
Capital Markets
India advantage contd..
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India Advantage
Stable politico legal system
Rapid approach to globalization Human resources
Large pool of intellectual capital
English as medium of education
Fast growing middle class group
Good educational infrastructure
Capital Markets
India advantage contd..
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India Advantage
Stable politico legal system
Rapid approach to globalization Human resources
Large pool of intellectual capital
English as medium of education
Fast growing middle class group
Good educational infrastructure
Capital Markets
India advantage contd..
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Good Educational infrastructure
As of March, 2000 India had over 340,000 employed
software professionals, which is likely to reach 2.5 millionby year 2008
India produces 122,000 Engineers per year , out of which
73,000 are in ICT area
India advantage contd..
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India Advantage
Stable politico legal system
Rapid approach to globalization Human resources
Large pool of intellectual capital
English as medium of education
Fast growing middle class group
Good educational infrastructure
Capital Markets
India advantage contd..
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Market Capitalization of listed Indian
Infotech companies(in US$ Billin)
0.6 1 0.76
13.6 18.5
48
95
41
55
0
1020
3040
50
6070
80
90100
31Mar1993
31Mar1997
31Mar1997
31Mar1999
30Aug19
99
30Dec19
99
28Feb2000
30Apr2000
30Jun2000
Sharp re-rating in valuations of companies in the knowledge
sectors consistent out-performance over main indices
India advantage contd..
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India Advantage
Huge Domestic market in India
Availability of Datacom infrastructure
Time Zone advantage
Lower cost of infrastructure
Quality as the key focus for ICT development Government support
India advantage contd..
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Domestic market in India
The ICT domestic market in India has grown from $10
million in 1991 to $1.75 billion in 1999 19 States out of 26 States have announced new IT policies
E-Governance, e-Banking, e-Manufacturing, e-Commerce,
etc are the new mantras in India Major private industries participating in providing high
bandwidth optical fiber network in India
India advantage contd..
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India Advantage
Huge Domestic market in India
Availability of Datacom infrastructure Time Zone advantage
Lower cost of infrastructure
Quality as the key focus for ICT development Government support
India advantage contd..
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India Advantage
Huge Domestic market in India
Availability of Datacom infrastructure Time Zone advantage
Lower cost of infrastructure
Quality as the key focus for ICT development Government support
India advantage contd..
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India Advantage
Huge Domestic market in India
Availability of Datacom infrastructure Time Zone advantage
Lower cost of infrastructure
Quality as the key focus for ICT development Government support
India advantage contd..
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India Advantage
Huge Domestic market in India
Availability of Datacom infrastructure Time Zone advantage
Lower cost of infrastructure
Quality as the key focus for ICT development Government support
India advantage contd..
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Quality, the magic mantra
India is home to 18 out of 34 SEI CMM Level 5
companies worldwide
Out of top 300 software companies, 170 have acquired
ISO 9000 certification
India advantage contd..
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India Advantage
Huge Domestic market in India
Availability of Datacom infrastructure
Time Zone advantage
Lower cost of infrastructure
Quality as the key focus for ICT development
Government support
India advantage contd..
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Government support
Setting up of STPs/EHTPs/EPZs
Setting up of IIITs
High Speed Datacom links
Tax incentives
Proactive State Government initiatives
Creation of huge domestic market
Setting up VC funds exclusively for ICT
India advantage contd..
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ICT Development in India
India Advantage
Current ICT scenario in India
What are the Strategies for sustained growth
Impact of ICT dev on Digital Divide
PortalPlayers case study
Summary
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Current ICT scenario in India
Indian IT Software and Services Industry(in US$ Billion)
2.85 3.95.7 8.75
14
87
0
10
20
30
40
50
60
70
8090
97-98 98-99 99-00 00-01 01-02 2008
Projections
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Offshore Software Development
Offshore software development using high-speed satellite
and video conferencing links provided by VSNL and
Software Technology Parks
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Destination of Indian Software Exports
North America 62%
Rest of the world 4.5%
West Asia 1.5%
South East Asia 3.5%
Europe 23.5%
Japan 3.5%
Australia & New
Zealand 1.5%
Source: NASSCOM
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Some Multinationals doing Research &
Development in India
Sun Microsystems
Microsoft
Silicon Graphics
Cisco
Oracle
Lucent
Motorola SDRC
IBM
Analog Devices
Hewlett Packard
An increasing number of tech majors and emerging
technology companies are using India as a development base
Intel
Texas Instruments Nortel
SAP
Generic Electric
Unisys LG
Alcatel
Sony
Agilent
Selectica Amber Networks
Sharp Corp.
Peak XV Networks
Sitara Networks Netplane Systems
Metrowerks
ConvergeLabs
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Seasoned IT Service Companies
Leading Indian IT service companies have served Fortune1000 companies for over a decade and matured through
technology cycles
Mainframe Client server NetworkingInternet/
e-commercee-Business/
e-Markets
Wireless/M-Commerce
1980s 1990 1990 1990 1990 2000+
Source:Deutsche Bank Research Viewpoint
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Five-Year Growth Cagrs (FY95-00) for some
leading IT companies
484864Mastek
464538NIIT
524624Wipro
858274Infosys
5-Yr PAT Cagr5-Yr EBITDA
Cagr
5-Yr Rev Cagr(%)
Source: Company Information
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List of Indian IT services companies listed on
US Exchanges
54.5130.941.4(1)Oct-00WITWipro
14.0108.825.0(0.5)Jun-00SLTSilverline
140.070.434.0(2)Mar-99INFYInfosys
CMP
(3/11/00)
Amount
raised(US$m)
Priced at
(no of ADSper share)
Listed onTicker
Source: Company Information
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Select Acquisitions by Indian IT companies
99.0Oct-00USSeraNovaSilverline
Tech
22.0Oct-00HKSky CapitalSilverline
Tech
63.7Sep-00USAlbionOrion
Company LIC
Software
Solutions
12.5Aug-00UKTISSilverline
Tech
30.0Jul-00USSan Vision
Technology
DSQ Software
Amount
(US$m)
DateCountryAcquisitionCompany
Source: Company Information
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India IT Partner of choice!
0
20000
4000060000
80000
100000
120000
140000
160000
180000
200000
10/97 - 9/98 10/98 - 9/99 10/99 - 9/00 10/00 -9/01F 10/01F - 9/02F 10/02F - 9/03F
Temporary Increase
Due to Y2K?
What next?
(No.of Visas allowed)
India is playing a key role in fulfilling IT service needs
of an increasing number of countries
Source: Industry Data
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A Strong Business Model
55 - 100Polaris270 350Scient
75 140MphasiS220 260Proxicom
65 120HCL Tech320 420Diamond
Technology
70 - 120Wipro180 - 220Braun
70 - 110Infosys200 240Sapient
Hourly on-sitebill rate (US$)
CompanyHourly bill rate(US$)
Company
Having successfully used the offshore delivery model and
realised the cost benefits, companies are gaining comfort with
shipping work offshore
Demand for skills for complex back-end enterprise
integration needs arising out of e-business should further
benefit India IT service majorsSource: Company Information, Deutsche Banc Alex Brown
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Product and Technology companies
The last two to three years have seen seeding and growth
of many technology and product-led companies in India
Ranking high on scalability and cost, India is becoming the
destination of choice for IT-enables services
A large number of product and technology initiatives in
India have been the brainchild of professionals withexperience at leading technology companies
Components and technology licensing represent an even
bigger opportunity for India companies.
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Venture Capital in India
Indbazaar.com, Melstar, Ziptelephone,
Geometric
75IndAsia Fund
Mindtree, Kshema Tech, DSR solutions,
Ivega Corp, Aarzoo.com
Bank of America,
Sivan
Global Technology
ventures
Sasken, Cyber India online, Rediff.com,
Network solutions, Eastern software,
Amoeba, Bharati
100+IntelIntel Asia
Rediff.com, Infotech EnterprisesGE capitalGE Capital
Sasken, Convergent Software, PolarisCitibankCitibank Venture
Transworks, egurucool.com,
productorion.com, iVega Corp,
Cheecoo.com, Bazee.com
65Microsoft,
Rothschild
Chrysalis Capital
BPL Telecom, Alumnus software, Aquila
tech, iCode, NetKraft, Opus
Commonwealth
development
CDC Advisors
Placements.com, itnation.com, EducompDatamatics, Convergent s/w
250Carlyle
DSQ Software, Sivan securitiesBank of AmericaBankAm Pvt.
Equity
BFL Software, Cybernet Software,
Texworld.com
Barings Pvt Eq.Baring India
Key InvestmentsSize (US$m)AssociationVC
Source: Company Information, Industry Data
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Enabling One Million jobs by 2008
81020.31,100,00041,000Total
2506.1300,00012,600Content development
650.7100,0001,400Database services
601.0100,0002,800Call centres
1103.0160,0006,100Medical Transcription /
Insurance claims processing
1352.7180,0004,100Remote maintenance andsupport
1906.8260,00014,000Data entry/conversion/back
office operations/revenue
accounting
Size (Rs. Bn)2008
Size (Rs bn)1999
Employed2008
Employed1999
IT enabled services
Source:NASSCOM
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Systems implementation captures bulk of
solutions spend
0
25
50
75
100
Mainframe Client/Server Internet Wireless
SW licensing Solutions (implementation/integration)
Source:Deutsche Bank Research Estimates
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Expanding Demand/supply mismatch for IT
professionals
9.1939857784722Cumulative
shortage
827262Increase in Gap
10.04,9074,4604,0543,685Supply (000)
10.65,4994,9704,4924,061Demand (000)
Cagr (%)2002200120001999Demand (000)
Industry estimates of unfilled IT workforce positions in the US in 1999 vary
from 700,000 to 850,000 and is expected to increase to close to 1m by 2003.
This would represent about 15% of the total IT workforce in the US in 2003.
Source: IDC, Deutsche Bank Research Estimates
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ICT Development in India
India Advantage
Current ICT scenario in India What are the Strategies for sustained growth
Impact of ICT dev on Digital Divide
PortalPlayers case study Summary
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Strategies for sustained ICT growth in India
Improving the quality of Education
Increasing the number of Universities and colleges Industry Academic linkages
Providing High bandwidth Data-com Network
Tax incentives for R&D Setting-up dedicated VC funds for ICT dev
Promotion of IP development
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ICT Development in India
India Advantage
Current ICT scenario in India What are the Strategies for sustained growth
Impact of ICT dev on Digital Divide
PortalPlayers case study
Summary
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Impact of ICT Development on
Digital Divide
Increasing gap between Information Haves & Have-nots
Huge disparity in compensation with respect to non ICT
industry
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Strategies taken for bridging the
Digital Divide
Linking the Rural India with Urban India
Distance Education
Implementation of E-Governance projects
Drive for Local /Regional Language support
Promotion of IT enabled services industry in the
rural India
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ICT Development in India
India Advantage
Current ICT scenario in India
What are the Strategies for sustained growth
Impact of ICT dev on Digital Divide
Case study of AP ICT implementation
Summary
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Case study of AP ICT implementation
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The Vision
Andhra Pradesh will leverage IT
to attain a position of
leadership and excellence in the Information Age
and to transform itself into aKnowledge Society
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Objectives of APs IT Policy
Quality of Life
GoodGovernance
Economic Development
Investments in IT
ExportsEmployment
Education
HealthcareRural Development
Anytime, anywhereCitizen Services
High Internal
Efficiencies
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The Strategies
Getting enablers in place Decision making bodies, institutions, policies, IT Architecture
Defining thrust areas
Catalyzing creation of infrastructure
Leveraging private sector initiative
Accelerating emergence of a knowledge hub
Generating the right social environment
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Thrust Areas
Citizen services
Infrastructure for IT IT education
IT-enabled services
IT-enabled education
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Catalyzing Infrastructure Creation
Cyberabad a knowledge city Hi-Tech Space
HITEC City Phase I 550,000 sft
HITEC City Phase II 870,000 sft
120 acres of plotted area for Hitech cos
IT Parks Vizag, Vijayawada, Warangal & Tirupati
3 million sft of IT Parks in pvt sector in next 3 yrs
International Airport at award stage
International Convention Centre
Hardware park
Planned over 5000 acres near International airport World-class la out bein re ared
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Bandwidth a determinant of competitiveness
Optical fibre backbone
20,000 route kms of BSNL Promoting competition from private sector
Policy of free right of way
Reliance , Bharti OFC projects in progress Landing point for sub-marine OFC at
Vizag
Connectivity to Singapore West Coast of USA Satellite communications
INSAT 3B
MEASAT
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Traditional Government Citizen Interface
Citizens
Government
Department
InformationSystem
Government
Department
InformationSystem
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Government Citizen Interface in the future
Citizens
Government
Department
Information
System
Government
Department
Information
System
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Infrastructure for e-Governance APSWAN ( AP State Wide Area Network)
Connects Hyderabad to 25 cities & towns in AP
Provides connectivity for data, voice and video Video-conferencing enables close monitoring
Implemented with private sector funding - BOO model
AP Secretariat Campus Area Network 2000 nodes
Citizens database with 76.7 million records Land records database with 12 million records
Datawarehouse (on PARAM super-computer)
AP Development Monitoring System on GIS IT Architecture, Security Policy & Public Key Infrastructure
Extensive training infrastructure CIOs programme, Project related training, computer literacy
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Major E-Governance Projects in AP
Convenient Citizen Services
MPHS .. IT services at the grassroots (1125)
CARD .. Registration of deeds in 1 hour (214)
TWINS .. Redefining citizen services (1+18)
FAST.. RTA services through IT (3+34)
(AP Portal) Convergence of services, forms, info.
Improved Internal Efficiency
Treasuries Computerized accounting (330)
APDMS.. Geographical info. for development planning
C2K.. IT at pivotal level of Collectorates
(SKIMS).. Knowledge-led governance
MPHS P j
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MPHS Project(Multi-Purpose Household Survey Project)
Uses MPHS citizens database & land database
Implemented in 1125 mandals
Application packages implemented so far:
Issue of certificates Land records certificates
Land records management
Petition Monitoring Payroll
6. Review
CARD
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CARD(Computer-aided Administration of Registration Department)
An end-to-end IT solution for registration of deeds
Transparency in valuation of properties Customized document management system
Documents are scanned & archived to CD
Project running for 24 months at 214 sites
Over 15,00,000 documents registered under CARD Registration in 1 hour
All other services Encumbrance Certificates, Valuation of property
to estimate stamp duty, etc. in 15 minutes
Inhouse implementation - Facilities management throughprivate sector HCL and ECIL
TWINS
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TWINSRedefining Service
Pilot project in Banjara Hills operational sinceDecember 1999
19 citizen services offered across the same counter
Open from 9 am to 8 pm
Electronic queuing system
Fully air-conditioned
3-tier architecture
Replication in 18 addl. locations by May 2001 onBOO basis
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Services available now
Utility Bill / Tax Payments Water, Electricity, Property Tax
Licenses Learners License, Driving License
Registration of new vehicles Change of address / owner of vehicle
Trade license
Certificates
Birth, Death certificates Encumbrance Certificates
Valuation Certificates
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Services planned Telephone bills
Filing of applications for passports
Booking of bus, train tickets
Reservation of services at TTD
Filing of various forms, applications
Private (B2C) services Insurance & financial services
Education & healthcare
Share transactions Cellular phone bill payments..
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IT for SMART Governance
IT for high quality citizen services CARD, MPHS, TWINS, FAST, AP Portal
IT for high internal efficiencies SKIMS, APDMS, C2K, Treasuries, CMIS
IT for better enforcement of law
COMPACT, Police, Excise, Courts IT for human resource development
MSIT, Ku Band
Computer Literacy in Schools
PHC project
IT for Promotion Industries, IT, Welfare, Agricultural Extension
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The 6-C model for e-Governance
Content Competencies
Connectivity
Cyber-laws
Citizen interface
Capital
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Human Resource Development
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Human Resources Development in AP 104 engineering colleges
24,135 seats 7500 in IT
Another 61 colleges to be established
158 MCA colleges > 5,000 seats
99 MBA colleges 4,280 seats
414 BCA colleges
16,520 seats 103 Polytechnics
17,100 seats
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Institutions of Excellence Indian Institute of Information Technology
Centre of Excellence in IT Education & Research
Joint endeavour of IT industry and Government IBM, Oracle,PSI-Net, Satyam & Motorola Schools
MSIT Program Consortium of Universities including Carnegie Mellon
University
Indian School of Business Wharton & Kellogg Schools
Centre for Good Governance DFID
Kennedy School of Government
E i K l d C id
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Emerging Knowledge Corridor
Indian Institute of Information Technology
Indian School of Business
University of Hyderabad Dr. B R Ambedkar Open University & KU Band
Earth Stn.
Army Institute of Information Technology MCR Institute of HRD & Centre for Good
Governance
CMCs National R&D Centre RBIs Institute for Development & Research in
Banking Technology (IDRBT)
Emerging Knowledge Corridor
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Emerging Knowledge Corridor
HiTec City
Proposed HySEA technology park
Infosys campus
Wipro campus
Engineering Staff College of India Environment Protection, Training & ResearchInstitute (EPTRI)
Jawaharlal Nehru Institute of DevelopmentBankin
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IT Promotion
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Incentives Policy
Software industry exempted from zoning regulations
Self certification under 7 Acts
Rebate on Cost of land @ Rs 20,000 per job created
Exemption from Pollution Control Act 70 % rebate on stamp duty & registration charges
Software exempted from Sales Tax
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Incentives Policy(contd)
Investment subsidy of 20 % (cap Rs 2 mil)
Software exempted from Sales Tax
Special packages for Mega projects(> US$ 24
mil)
Policy Frameworks in the offing
Special Hardware Policy Public Private Partnership in e-Governance
A World of Opportunity
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A World of Opportunity
Software Development Centres
Creation of IT infrastructure
Data Centres
Implementation of E-Governance projects On BOO & BOOT basis
Call Centres
Back Office
Community Internet Infrastructure
Hardware Manufacturing Facilities
Catalyzing Essential Infrastructure
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Hitec city for IT companies
Biotechnology park
Hardware park
International airport International convention centre
IT parks in regional hubs
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Power
! Highest PLF in the country 92%! Power sector reforms taken up
Electricity Regulatory Commission
Separation of generation fromtransmission/distribution
Privatisation of distribution
! Adding 3000 MW over the next
three years
Roads
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Roads
! 10,300 kilometres of highdensity traffic corridors
identified for improvement! Significant improvements
over last five years
8500 kms of new roads 1250 kms improved
US $ 0.78 billion spent
US $ 1.05 billion to be spentover the next four years
Airports
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Airports
!
Hyderabad! Existing runway extension
! New international airport at
Shamshabad
! Improved airports in! Visakhapatnam
! Vijayawada
! Tirupati
! Puttaparthi
Connecting People
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g p
22,000 route kms of fibre optic laid by
BSNL
High speed digital backbone being setup by Reliance
Data speeds in the terabit range
7500 kiosks across the state
Ku band Satellite network for
Distance education in schools & colleges
Telemedicine Self-help groups
e-governance
Networking the State
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g
Phase IFibre optic
Phase IINetworking
The Future: Internet basedcitizen services
Villagesand TownsVillages and
Towns
Mandals1125
Mandals1125
Divisions
78
Divisions
78
Districts23
State levelState level
Hyderabad, Secunderabadand Cyberabad
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ISB
IIIT
Univ of HydCMC R&D
Hitec CityJNIDB
Wipro campus Infosys campus
HySEATech Park
Financial DistrictNAC
Sports Village
Golf course &International
Convention Centre
EPTRI
NIFTShilparamam
GreenBusiness
Centre
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Any Questions?Any Questions?