kolkata your new it destination
DESCRIPTION
Kolkata your new IT Destination. Government of West Bengal. - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/1.jpg)
Kolkata your new IT Destination
Government of West Bengal
No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Government of West Bengal. This material was used by Government of West Bengal during an oral presentation; it is not a complete record of the discussion.
![Page 2: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/2.jpg)
2
CONTENTS
•West Bengal – Facts
•An offer you cannot refuse
•West Bengal – Facts
![Page 3: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/3.jpg)
3
WEST BENGAL – THE REALITY
Reality
Economy • 4th fastest growing state in the country (ahead of Maharashtra and A.P) in the post-reform years
• 4nd highest inflow of investments in recent years
• Fastest growing STP with 175 companies employing 15,000 IT professionals
• TCS, Cognizant, Wipro, IBM, CA, NIIT, AIG have centres
IT Industry
• Lowest cost of operations - Cheapest power, lowest attrition, lowest cost of living
• Attractive fiscal incentives
Cost
• 3rd best place to live in - survey by Outlook Money• Best-in-class clubs, recreation centres, museums
Social set-up
• Not a single reported case of labour trouble in IT• Proactive stance of Government to work disruption
Labour
• Most political stable state • Investor friendly Government
Government
![Page 4: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/4.jpg)
4
THE STATE’S IT SECTOR HAS SEEN EXCELLENT GROWTH
Source: STPI; STP Kolkata
Kolkata is the fastest growing STP of the country
Percent; Growth rates of STPs in 2001-2003
119
46
45
36
29
36
Kolkata
Chennai
Maharastra
Hyderabad
Bangalore
All India
![Page 5: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/5.jpg)
5
KOLKATA IS AN IMPORTANT CENTRE FOR MANY COMPANIES
Source: Webel; Company Interviews
• 4th largest centre in the country• 2,100 IT professionals
• Planned to be 2nd largest centre after Bangalore• 1,500 professionals employed today and will
increase to 4,000 by 2004
IBM
• 2nd largest centre after Chennai• Investing in new facility in Kolkata
• JV between The Chatterjee group (TCG) & United Airlines
• Strength to double by 2004
• Centre for 2500 IT professionals to be commissioned by January 2004
• Spectramind’s 4th centre is being set-up in Kolkata
![Page 6: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/6.jpg)
6
THERE HAVE BEEN NO LABOUR PROBLEMS EVER AMONG IT PROFESSIONALS
HR experience here has not been different
from our other locations
(We) have experienced no labour-related problems in
the Kolkata centre
United has had no problems at all in
Kolkata
We have had no labour disputes in ITC Infotech
IT enabled services has been
provided ‘Public Utility’ status
![Page 7: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/7.jpg)
7
CONTENTS
•West Bengal – Facts
•An offer you cannot refuse •An offer you cannot refuse
![Page 8: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/8.jpg)
8
WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS
TalentCost of
operations
Infrastructure
Policy
Investor support
![Page 9: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/9.jpg)
9
Cost of operations
Infra-structure
Policy
Investor support
Talent
•Best education institutes
•Large pool of English speaking graduates
•Good domain knowledge
WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS
![Page 10: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/10.jpg)
10
COMPANIES CAN TAP A HUGE POOL OF QUALITY TALENT IN WEST BENGAL…
Source: India Today, Manpower profile of India; Team analysis
• Huge annual intake of under-graduate students
– Over 545,000 enrol for graduate courses (including about 120,000 in commerce & 330,000 in arts/ education) in 3 yrs
– Annual intake in engineering colleges is ~ 13,000
• Some of the finest educational institutions in India
– 52 engineering colleges, 400 other colleges, 12 universities
– Two colleges (Presidency and St. Xaviers) ranked among the
Top-10 degree colleges• Good English language skills
– About 30,000 pass out every year from English medium schools (Kolkata has largest number of ICSE schools)
– Companies perceive graduates to have neutral accents
– Hinterland of North-East provides access to quality talent
IIM Calcutta
Presidency College
IIT Kharagpur
![Page 11: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/11.jpg)
11
DOMAIN KNOWLEDGE EXISTS IS MANY AREAS
Source: Manpower profile of India
• ~1,20,000 students enrol (across 3 years) for commerce • Country’s largest life insurer, LIC, runs largest operations • One of the leading non-life insurer, NIC, headquartered in WB• 15 foreign/private banks operational; HQs of 3 large banks
Banking, Finance Insurance
• Dedicated software units for airlines and shipping business
• One of the largest port complexes (Kolkata and Haldia)
• Acts as a transportation hub for 11 Indian states
Travel & Logistics
• Over 2000 people enrol for French and 1100 enrol for German every year
Foreign Languages
• Nearby city of Jamshedpur houses India’s premier HR management education institute
• One of the largest sources of actuaries in India
Human Resource
![Page 12: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/12.jpg)
12
Cost of operations
Infra-structure
Policy
Investor support
Talent
•Lowest cost of living
•Lowest attrition rates
•One of the lowest power costs
•Attractive government incentives
WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS
![Page 13: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/13.jpg)
13
KOLKATA HAS LOWEST COSTS COMPARED TO OTHERS
*Estimates provided by a leading HR agency with Nationwide footprint**Urban non-manual workers , June 2003 (CMIE)Source:Manpower profile of India; Interviews with HR Consultants; CMIE
One of the lowest CMIE consumer price indices** among metros
438
443
418
413
378Kolkata
Bangalore
Hyderabad
Delhi
Mumbai suburbs
… as evident in lower salaries* for fresh graduates
110
90
84
70
84
66
Mumbai
Kolkata
Rs ‘000 p.a. (range)
Bangalore
Chennai
Hyderabad
Delhi
140
110
108
100
96
84
![Page 14: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/14.jpg)
14
WEST BENGAL HAS LOWEST ATTRITION LEVELS
Source: Interviews with IT companies, HR Consultants
Low attrition rate is a characteristic of the
culture here
Attrition rate of ITeS companies in metros
25
25
25
15
Delhi
Kolkata
Per cent
Mumbai
Bangalore
Chennai
Hyderabad
40
40
40
30
15
Kolkata's strength is low attrition rate, which is
embedded in the culture - people won't leave jobs
for a Rs 500 p.m. increment
NASSCOMNASSCOM
10
Kiran Karnik, President
Lakshmi Naranyanan, COO
15 30
![Page 15: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/15.jpg)
15
WEST BENGAL OFFERS THE MOST COMPETITIVE ELECTRICITY PRICES
Source:C B Richard Ellis
Comparison of basic tariffs in major IT destinationsRs / Unit
3.2
4.7
4.3
3.7
3.6
3.3
3.2
Gurgaon
Chennai
Chandigarh
Hyderabad
Bangalore
Kolkata
Mumbai/ Pune
NASSCOM & Gartner have
ranked the state No. 1 in power availability &
quality
NASSCOM & Gartner have
ranked the state No. 1 in power availability &
quality
West Bengal is a surplus power state and net
exporter of power
West Bengal is a surplus power state and net
exporter of power
![Page 16: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/16.jpg)
16
Rs 2.1 CRORE ONE TIME INCENTIVES
Assumptions
• Project Fixed Capital investment of at least Rs.10 crore
• Value of material brought into WB from other states during set-up is ~Rs.15 crore (consumption tax 4-12% in WB)
Description Financial impact
• Subsidy @15% of fixed capital investment (ceiling Rs.150 lakh)
Rs. 150 lakhFCI subsidy
• Exemption from stamp duty and registration fee for purchase/ acquisition of land/buildings
6% of value of land/property
transfer
Stamp duty/ registration fee exemption
• Exemption from payment of consumption tax on material brought into state for initial construction
Rs. 60 lakhConsumption (Entry) tax exemption
• Subsidised land (around Salt Lake) for 1st few large ITeS anchor investors
Land at 20-30% of market price
Land subsidy
Total (excluding land subsidy) >Rs. 210 lakh
![Page 17: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/17.jpg)
17
RECURRING INCENTIVES OF ~ Rs 1.5 CRORE
• 50% of ESI and EPF contribution for every employee
Rs. 45 lakhEmployment generation subsidy
Total annual operating cost subsidy ~Rs. 152 lakh
• Subsidy on interest payments (50% of interest liability) – ceiling Rs. 100 lakh p.a.
Rs. 100 lakhInterest payment
subsidy • Electricity duty waived for 1st 5 years Rs. 7 lakhElectricity duty
waiver
No other state has a declared annual employment
or interest subsidy
Description Financial impact
Assumptions
• 1200-person ITeS centre with average ESI and EPF contributions of Rs.600 per person p.m
• Electricity consumption is about 150 units per employee per month
![Page 18: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/18.jpg)
18
Cost of operations
Infra-structure
Policy
Investor support
Talent •Reliable telecom connectivity
• ‘Walk-in’ physical infrastructure
•Best-in-class local transport
•Excellent social infrastructure
•International accessibility
WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS
![Page 19: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/19.jpg)
19
KOLKATA OFFERS INTERNATIONAL CONNECTIVITY THROUGH BOTH SATELLITE AND CABLE
Kolkata
Chennai
Mumbai
Kochi
580 Mbps3 earth stations (VSNL and STPI) – one of the best in the country
VSNL uses BSNLOFC leased line 92 Mbps (29 E-1s, One 34 Mbps line) and provides SLA
Submarine cable
Submarine cable
![Page 20: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/20.jpg)
20
AVAILABILITY OF CABLE-BASED CONNECTIVITY WILL SEE A HUGE INCREASE SOON
Kolkata
Chennai
Mumbai
Kochi
More bandwidth and redundancy from BSNL
580 Mbps3 earth stations (VSNL and STPI) – one of the best in the country
ILD services from Bharti via Singtel landng station in Chennai (by Nov 2003)
Submarine cable
Submarine cable
Alternative national long distance loop from Reliance (by Dec 2003)
![Page 21: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/21.jpg)
21
SALT LAKE IT HUB IS WORLD CLASS
Source: Webel
• India’s first fully integrated Electronics Complex in Salt lake City, Kolkata
• Spread across 150 acres of green, pollution-free land near the airport
• Over 175 IT companies with 15,000 professionals
• Excellent infrastructure like roads, ATMs, food joints
![Page 22: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/22.jpg)
22
LAND EARMARKED TO MEET 2010 IT VISION
• Proposed IT park (up to 40 acres) at Nonadanga
3
• 2-3 acre plots @ ~Rs 40 lakh per acre
• Existing IT hub in Salt Lake (Sector V)
2
• 100 acres available at Rajarhat – New Town (3 km from Salt Lake) for IT and ITeS units
1
2
3
1
![Page 23: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/23.jpg)
23
KOLKATA OFFERS BEST-IN-CLASS LOCAL TRANSPORT OPTIONS
• Only State with fully functional underground train network
–Plans to connect Salt Lake Area by 2004
• Multiple modes of local transport exist like underground trains, buses, taxis, trams, circular railway
• State has strengthen road network further
–Gariahat Flyover, largest urban flyover (2.5 Km) commissioned in record time of 368 days
• New road to Airport from Salt Lake (IT hub)
–To be commissioned by Nov 2003
–Will decrease commute time from airport to 20 mins from IT hub
![Page 24: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/24.jpg)
24
KOLKATA OFFERS EXCELLENT SOCIAL INFRASTRUCTURE
![Page 25: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/25.jpg)
25
KOLKATA IS WELL CONNECTED TO MAJOR INTERNATIONAL DESTINATIONS
Origin Destination
x (y.z)
x flights a week (flight time y hrs z min)
London
Kolkata
Singapore
Bangkok
2 (10.40)
10 (2.25)
Mumbai
Delhi
5 (4.05)
~50 (2.00)
~50 (2.20)
City Via Add.Time*
Weekly Freq.
LondonAms’damFrankfurtParisZurichNew YorkChicagoSFO
Del/BomDel/BomDel/BomDel/BomDel/BomBombayBombaySingapore
9.308.508.108.558.20
18.4019.3016.40
>251314
>1514143
>20
Europe / USA
City Via Add.Time*
Weekly Freq.
Tokyo
HKG
Sydney
SingaporeBangkokSingaporeBangkokSingaporeBangkok
6.405.453.452.457.108.45
>20>15>30>25>20>20
Asia / Australia
* Excludes flying time from Kolkata to transit destination
Source: Amadeus
Amsterdam
1 (12.25)
![Page 26: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/26.jpg)
26
Cost of operations
Infra-structure
Policy
Investor support
Talent
•Strong policy measures
•Strong e-governance and IT literacy initiatives
WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS
![Page 27: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/27.jpg)
27
THE STATE GOVERNMENT HAS ADDRESSED POLICY ISSUES RELATED TO IT OPERATIONS
•Permission for women to work at night and permission to run three shifts irrespective of national holidays
•Allow self-certification for specific enactments such as Allow self-certification for specific enactments such as National Holidays Act, Contract Labour Act, etc.National Holidays Act, Contract Labour Act, etc.
•Relaxations in building and zoning laws (e.g., ability to construct centre in residential areas)
•Provide IT units establishment status under Shops and Provide IT units establishment status under Shops and Establishments ActEstablishments Act
•Public Utility ServicePublic Utility Service status to the IT industry status to the IT industry
![Page 28: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/28.jpg)
28
E-GOVERNANCE INITIATIVES ARE BOOSTING IT AWARENESS
• West Bengal State-wide WAN (WBSWAN)
–2 Mbps OFC network for data, voice and image communication
–Connecting Kolkata to all district headquarters
–To extend to 341 blocks and 3660 panchayats very soon
• Application Service Provider (ASP) model to provide public interface to government information
• Geographical Information Systems for Municipalities
• Computerisation of government departments (including land records)
• Aggressive IT literacy program (schools/colleges) in partnership with companies like Microsoft, IBM, HCL, NIIT, Wipro and Tata Infotech
![Page 29: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/29.jpg)
29
Cost of operations
Infra-structure
Policy
Investor support
Talent
•Responsive, single window
•At set-up and during ongoing operations
WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS
![Page 30: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/30.jpg)
30
Key requirements of investor
WEBEL - SINGLE WINDOW SUPPORT CENTRE
Rental space availability
• Helps the company in obtaining space on rent/lease in buildings owned by Webel and private entrepreneurs
Land procurement
• Keeps tab on land availability. Allocates as and when available
Telecom infrastructure • Interacts with BSNL to help procure last-mile connectivity
Power connections • Interacts with WBSEB to get power connections
Building approval
• Forwards building plans after preliminary check to local Municipality to expedite clearances
STPI registration • Authorised to give STPI registration on behalf of STPI
![Page 31: Kolkata your new IT Destination](https://reader034.vdocuments.site/reader034/viewer/2022051401/56814316550346895daf6bfd/html5/thumbnails/31.jpg)
31
Buddhadeb BhattacharjeeChief Minister, West Bengal
“The Government will do what it
takes to get you to the state”
WEST BENGAL WILL DO WHAT IT TAKES TO ATTRACT YOU