MUMBAI: With a view to rapidly ramp up operations and expand its footprint in the country, CBaySystems, has drawn up a USD 25 mn capex plan over the next two years. CBaySystems also plans to up its headcount to 10,000 from the present 5,500 and set up 10 new centres, primarily in Tier II and III locations, by 2010.
The company is a global leader in the healthcare information management and patient financial services (PFS) space with over 400 large hospitals in the US, physician practices and clinics as its clients. "We have lined up an USD 25 mn investment for India over the next two years to fuel our expansion. We also plan to raise our headcount to 10,000 by then," CBaySystems India Director and Chief Operating Officer, Dinesh Kumar, said.
The funds would be raised through internal accruals and "also through outside funding", Kumar said. CBaySystems runs its global back-end operations from India through its wholly-owned subsidiary, CBaySystems India.
Headquartered in Mumbai, the company presently has 37 centres in the country including Bangalore, Hyderabad, a small unit in Vijayawada which it plans to expand, and Nagpur. "We now plan to enter Tier II and III locations such as Hubli, Indore, Raipur, Belgaum and Coimbatore, apart from Chennai," Kumar said.
Sunday, June 29, 2008
Friday, June 27, 2008
Slack firms may lose land
DH News Service, Bangalore:
The State Government is all set to come down heavily on private firms which have failed to establish their industries even years after lands were allotted to them...
Minister for Large and Medium Industries Murugesh R Nirani, who held a meeting with officers of Karnataka Industrial Area Development Board in Bangalore on Thursday, directed the officers to serve notices to those firms which have failed to open industries despite being in possession of the land.He said many firms have purchased lands years before. But there has been no progress when it comes to setting up industries. “KIADB allotted 100 acres of land to a private firm to set up an agro food park in Bagalkot, my native district, two years ago.
But so far the firm has not done anything except fencing the land. What is the point in sanctioning land if the project does start on time and serve the purpose,” he wondered.KIADB allots land to the entrepreneurs with a lease-cum-sale agreement. As per the agreement the allottees should commence the project within two years after the allotment of land. If the allottees fail to begin the work they can appeal before the board for extension up to three months. If the allottees does not begin the work even after three months the Board will serve notice asking why the land should not be withdrawn. If the reply is not satisfactory the board will withdraw the land terminating the lease period.
The purchasers or entrepreneurs enjoy the ownership of the land only for 10 years after the allotment. There is provision for taking back the land under the KIADB Act and the same would be enforced strictly. “The objective of the department is to attract more investment and generate employment in the state. If those allotted do not begin the project then the purpose is not served. I have asked the officers to prepare a list of such companies. The government will ask them to expedite the process. Those failing to act, the government will withdraw land from them and allot the same to those who come forward to set up industry with genuine proposals,” he said.
Talks onThe Minister also held discussion with entrepreneurs who had sought approval to set up small scale industries, each incurring investment up to Rs 50 crore. Entrepreneurs who have sought approval to set up industries in Bangalore, Belgaum and few districts of North Karnataka took part in the meeting. Nirani also said that as many as 35 applications expressing interest to establish small scale industries are pending before the Udyoga Mitra. The entrepreneurs will appear before the screening committee.
By the second week of July the State High Level Clearance Committee headed by the Chief Minister will accord final approval for projects on the basis of recommendations made by the screening committee.Easy process“As an industrialist I have the first hand experience how entrepreneurs struggle to get approval for projects. The procedure is so long that one may lose interest by the time he gets approval,” he said. The government has planned to introduce revised industrial policy in the next 3 months. It will introduce easy process to get clearance and also allotment of land through KIADB. “Objective is to attract more investors and provide more jobs to locals. The government will introduce measures to achieve the goal in the policy,” he said.
The State Government is all set to come down heavily on private firms which have failed to establish their industries even years after lands were allotted to them...
Minister for Large and Medium Industries Murugesh R Nirani, who held a meeting with officers of Karnataka Industrial Area Development Board in Bangalore on Thursday, directed the officers to serve notices to those firms which have failed to open industries despite being in possession of the land.He said many firms have purchased lands years before. But there has been no progress when it comes to setting up industries. “KIADB allotted 100 acres of land to a private firm to set up an agro food park in Bagalkot, my native district, two years ago.
But so far the firm has not done anything except fencing the land. What is the point in sanctioning land if the project does start on time and serve the purpose,” he wondered.KIADB allots land to the entrepreneurs with a lease-cum-sale agreement. As per the agreement the allottees should commence the project within two years after the allotment of land. If the allottees fail to begin the work they can appeal before the board for extension up to three months. If the allottees does not begin the work even after three months the Board will serve notice asking why the land should not be withdrawn. If the reply is not satisfactory the board will withdraw the land terminating the lease period.
The purchasers or entrepreneurs enjoy the ownership of the land only for 10 years after the allotment. There is provision for taking back the land under the KIADB Act and the same would be enforced strictly. “The objective of the department is to attract more investment and generate employment in the state. If those allotted do not begin the project then the purpose is not served. I have asked the officers to prepare a list of such companies. The government will ask them to expedite the process. Those failing to act, the government will withdraw land from them and allot the same to those who come forward to set up industry with genuine proposals,” he said.
Talks onThe Minister also held discussion with entrepreneurs who had sought approval to set up small scale industries, each incurring investment up to Rs 50 crore. Entrepreneurs who have sought approval to set up industries in Bangalore, Belgaum and few districts of North Karnataka took part in the meeting. Nirani also said that as many as 35 applications expressing interest to establish small scale industries are pending before the Udyoga Mitra. The entrepreneurs will appear before the screening committee.
By the second week of July the State High Level Clearance Committee headed by the Chief Minister will accord final approval for projects on the basis of recommendations made by the screening committee.Easy process“As an industrialist I have the first hand experience how entrepreneurs struggle to get approval for projects. The procedure is so long that one may lose interest by the time he gets approval,” he said. The government has planned to introduce revised industrial policy in the next 3 months. It will introduce easy process to get clearance and also allotment of land through KIADB. “Objective is to attract more investors and provide more jobs to locals. The government will introduce measures to achieve the goal in the policy,” he said.
Sunday, June 22, 2008
Karnataka Govt planning industrial corridor
Hubli (PTI): The newly-elected BJP government in Karnataka plans to establish an industrial corridor along National Highways NH4 and NH218 with the objective of generating employment to people in North Karnataka region, state Minister for Large and Medium industries Murugesh Nirani has said.
Speaking to reporters, the minister, who is in-charge of Dharwad district, said that industries could tap into the raw material resources and basic facilities available along the two highways, connecting Bangalore to Belgaum and Hubli to Bijapur.
He said that iron ore was available in Bellary and instead of exporting iron ore, iron sponge plants could be set up at Bellary, Tumkur and Chitradurga districts. Similarly, steel plants could be set up to provide employment.
Similarly in Bagalkot, Gulbarga and Tumkur district, where limestone is available, cement plants could be set up.
Nirani said that in Bagalkot, Bijapur, Belgaum, Shimoga districts, centres of horticulture, foodprocessing units could be set up using the agricultural products here.
The government would appeal to industrialists to establish industries in Hubli-Dharwad, for which a high level committee would meet at Bangalore on June 27 to consider 36 pending plans and encourage them to move to North Karnataka for establishing industrial units here, he said.
Of the 45 SEZs planned, two for Belgaum and one for Hubli-Dharwad had been sanctioned, he added.
Speaking to reporters, the minister, who is in-charge of Dharwad district, said that industries could tap into the raw material resources and basic facilities available along the two highways, connecting Bangalore to Belgaum and Hubli to Bijapur.
He said that iron ore was available in Bellary and instead of exporting iron ore, iron sponge plants could be set up at Bellary, Tumkur and Chitradurga districts. Similarly, steel plants could be set up to provide employment.
Similarly in Bagalkot, Gulbarga and Tumkur district, where limestone is available, cement plants could be set up.
Nirani said that in Bagalkot, Bijapur, Belgaum, Shimoga districts, centres of horticulture, foodprocessing units could be set up using the agricultural products here.
The government would appeal to industrialists to establish industries in Hubli-Dharwad, for which a high level committee would meet at Bangalore on June 27 to consider 36 pending plans and encourage them to move to North Karnataka for establishing industrial units here, he said.
Of the 45 SEZs planned, two for Belgaum and one for Hubli-Dharwad had been sanctioned, he added.
Thursday, June 19, 2008
State Clears Land for 45 SEZs, Including Mangalore
Source: http://nageeta.blogspot.com/2008/06/state-clears-land-for-45-sezs-including.html
Bangalore, Jun 14: The state government formally approved more than 2,400 hectres of land for setting up 45 special economic zones (SEZs) in Karnataka expected to bring in total investment of over Rs 24,000 crore.The approved SEZs include 33 IT/ITeS companies with investment worth over Rs 18,000 crore. On Friday, major and medium industries minister Murgesh R Nirani said the approved SEZs could generate 10 lakh jobs in the next few years.
Nirani, who owns two cement units and a sugar factory in Bagalkot district, said: “As an industrialist, I am aware of investors’ problems. This government wants to create an investor-friendly climate in the state.’’Investment to the tune of Rs 3,384 crore and earmarking 112 hectres exclusively for airport-based SEZ has been formally approved. Sector-specific product SEZs contribute Rs 1,824 crore and hardware and BT SEZs Rs 633 crore and Rs 750 crore respectively.
The Centre, which gives in-principle approvals for all SEZs in the country, has given its nod to only 8 SEZs in Karnataka having total investments of Rs 20,220 crore, including Rs 400 crore from the IT/ITeS sectors.Nirani said the government, without going in for acquisition of fertile land, will seek the consent of the farmers before developing a SEZ. “Of the developed land, about 20% will be given to farmers, besides employment to one member from the family,’’ he said.Proposed seven exclusive industrial zonesSteel zone — Bellary, Koppal, Raichur districtCement zone — Bagalkot, Bijapur, Gulbarga, BijapurFood processing zone — Shimoga, Mysore, Bijapur, Bagalkot, Kolar, Bangalore RuralIT/ BT zone — Mangalore, Mysore, Hubli-Dharwad, BelgaumAutomobile zone — Dharwad and BangaloreReadymade garment zone — Bangalore, Bellary and MysorePetroleum, chemicals and petrochemicals complex — Mangalore and UdupiIn-principle nod for NandagudiMajor and medium industries minister Murgesh R Nirani said that the government has given in principle approval for the Nandagudi SEZ, but its promoters have to acquire land.Keeping regional interests in mind and also to focus on the rapid development of backward areas, Nirani said the government proposed setting up of seven exclusive industrial zones to promote industries in steel, cement, food processing, IT/BT, petrochemicals, automobile and readymade garments.
Chennai-Bangalore-Mumbai corridorNirani said the Centre has taken up a feasibility study on the multi-crore Chennai-Bangalore-Mumbai (CBM) industrial corridor. The proposed CBM corridor, on the lines of Chennai-Bangalore corridor, will establish connectivity from Bangalore to Belgaum covering 11 districts and 20 towns. “To make Karnataka a leading industrialized state and to enhance the level of investments, we propose to develop industries along 100-150 kms on both sides of the corridor,’’ Nirani said.
In a meeting convened by department of industries policy and promotion (DIPP) in the Union ministry of commerce and industries involving Karnataka, Tamil Nadu and Andhra Pradesh governments for consultation on Chennai-Bangalore corridor proposal a few months ago, the Centre gave positive signals for the state’s move to connect and extend the Chennai-Bangalore industrial corridor till Mumbai.
This could pave the way for conducting a feasibility report onCBM corridor.New industrial policyIn a move to boost industrial development, the industries minister proposes to modify the existing industrial policy. “The government wants to bring in more investment to the state through unveiling a new industrial policy in the next three months,’’ Nirani said. He said modifications would be carried out to the existing policy of 2006-11. Industrial policies of Maharastra, Andhra Pradesh, Gujarat, Tamil Nadu and Rajasthan would be studied before framing the new policy, Nirani added.
Bangalore, Jun 14: The state government formally approved more than 2,400 hectres of land for setting up 45 special economic zones (SEZs) in Karnataka expected to bring in total investment of over Rs 24,000 crore.The approved SEZs include 33 IT/ITeS companies with investment worth over Rs 18,000 crore. On Friday, major and medium industries minister Murgesh R Nirani said the approved SEZs could generate 10 lakh jobs in the next few years.
Nirani, who owns two cement units and a sugar factory in Bagalkot district, said: “As an industrialist, I am aware of investors’ problems. This government wants to create an investor-friendly climate in the state.’’Investment to the tune of Rs 3,384 crore and earmarking 112 hectres exclusively for airport-based SEZ has been formally approved. Sector-specific product SEZs contribute Rs 1,824 crore and hardware and BT SEZs Rs 633 crore and Rs 750 crore respectively.
The Centre, which gives in-principle approvals for all SEZs in the country, has given its nod to only 8 SEZs in Karnataka having total investments of Rs 20,220 crore, including Rs 400 crore from the IT/ITeS sectors.Nirani said the government, without going in for acquisition of fertile land, will seek the consent of the farmers before developing a SEZ. “Of the developed land, about 20% will be given to farmers, besides employment to one member from the family,’’ he said.Proposed seven exclusive industrial zonesSteel zone — Bellary, Koppal, Raichur districtCement zone — Bagalkot, Bijapur, Gulbarga, BijapurFood processing zone — Shimoga, Mysore, Bijapur, Bagalkot, Kolar, Bangalore RuralIT/ BT zone — Mangalore, Mysore, Hubli-Dharwad, BelgaumAutomobile zone — Dharwad and BangaloreReadymade garment zone — Bangalore, Bellary and MysorePetroleum, chemicals and petrochemicals complex — Mangalore and UdupiIn-principle nod for NandagudiMajor and medium industries minister Murgesh R Nirani said that the government has given in principle approval for the Nandagudi SEZ, but its promoters have to acquire land.Keeping regional interests in mind and also to focus on the rapid development of backward areas, Nirani said the government proposed setting up of seven exclusive industrial zones to promote industries in steel, cement, food processing, IT/BT, petrochemicals, automobile and readymade garments.
Chennai-Bangalore-Mumbai corridorNirani said the Centre has taken up a feasibility study on the multi-crore Chennai-Bangalore-Mumbai (CBM) industrial corridor. The proposed CBM corridor, on the lines of Chennai-Bangalore corridor, will establish connectivity from Bangalore to Belgaum covering 11 districts and 20 towns. “To make Karnataka a leading industrialized state and to enhance the level of investments, we propose to develop industries along 100-150 kms on both sides of the corridor,’’ Nirani said.
In a meeting convened by department of industries policy and promotion (DIPP) in the Union ministry of commerce and industries involving Karnataka, Tamil Nadu and Andhra Pradesh governments for consultation on Chennai-Bangalore corridor proposal a few months ago, the Centre gave positive signals for the state’s move to connect and extend the Chennai-Bangalore industrial corridor till Mumbai.
This could pave the way for conducting a feasibility report onCBM corridor.New industrial policyIn a move to boost industrial development, the industries minister proposes to modify the existing industrial policy. “The government wants to bring in more investment to the state through unveiling a new industrial policy in the next three months,’’ Nirani said. He said modifications would be carried out to the existing policy of 2006-11. Industrial policies of Maharastra, Andhra Pradesh, Gujarat, Tamil Nadu and Rajasthan would be studied before framing the new policy, Nirani added.
Monday, June 16, 2008
India to build 43 new IT cities in 10 yrs
NEW DELHI: The IT industry's footprint looks set to expand beyond its existing homes.
Faced with a challenge from upstarts threatening to erode India's low-cost appeal, the government is planning to build 43 new information technology cities across the country to retain its top dog status in the business and to be in a position to tap the huge surge in demand for IT-enabled services over the next 10 years.
The move comes at a time when the rising infrastructure and employee costs in big cities is threatening to blunt India's crucial cost advantage.
While India has held on to its pre-eminent position, its IT and BPO companies are losing their global cost advantage with the emergence of countries like Vietnam and the Philippines, which offer similar services at cheaper rates and are threatening India's status as the world's back office.
As the allure of BPO jobs goes down and attrition rates go up, companies are increasingly finding it difficult to recruit quality employees in the big cities. Also of concern is infrastructure constraints in Bangalore, Gurgaon and elsewhere.
The plan to build brand new towns is designed to address some of these issues. It is felt that these new towns will provide a steady supply of workers besides being specifically geared towards the needs of the IT and BPO sectors.
The proposal, suggested by a high-level group on service sector, has been cleared by the Planning Commission. "The modalities for the ambitious plan will be finalized very soon," a source said.
According to the plan, each IT city will be set up in an area of more than 500 hectare. The cities will altogether generate employment for around 3.5 million people by 2018.
The proposal is to create self-contained satellite townships with commercial space for renting and a commensurate increase in residential accommodation, education, healthcare, retail and recreational facilities.
"Improvement in infrastructure is very important to ensure the continued competitiveness of IT and BPO industries," an official said while explaining the rationale behind the move. At present, the major volume of IT-enabled services is concentrated in seven cities — Bangalore, Chennai, Mumbai, Hyderabad, Kolkata, Gurgaon and Noida. Government estimates point out that 95% of the IT and BPO service industry is in these cities, with around 36% of services concentrated in Bangalore alone. According to officials, the IT and BPO business in the country is likely to grow by 2.5 times in the next 10 years.
The growth cannot be absorbed in major cities. As infrastructure in major cities is already under tremendous strain, the IT sector has started migrating to smaller cities. However, the volume of business in the IT sector likely to come to India is huge which even tier II & III towns are unlikely to handle, considering poor infrastructure.
Under the ambitious proposal, the government plans to shift 40% of the business to the upcoming 43 cities by 2018. The new towns will be properly planned and laid out and endowed with modern infrastructure and good connectivity to the big cities and airports. These townships will have residential and work areas with all essential services - water supply, power, civic amenities, health, education, transport and entertainment - to meet the civic and commercial needs of the workforce.
The Centre has sought the support of state governments in facilitating creation of these new towns. The proposal suggests that the towns will be developed by private players and state governments will ensure trunk services like electricity, water supply, sewage and drainage.
Faced with a challenge from upstarts threatening to erode India's low-cost appeal, the government is planning to build 43 new information technology cities across the country to retain its top dog status in the business and to be in a position to tap the huge surge in demand for IT-enabled services over the next 10 years.
The move comes at a time when the rising infrastructure and employee costs in big cities is threatening to blunt India's crucial cost advantage.
While India has held on to its pre-eminent position, its IT and BPO companies are losing their global cost advantage with the emergence of countries like Vietnam and the Philippines, which offer similar services at cheaper rates and are threatening India's status as the world's back office.
As the allure of BPO jobs goes down and attrition rates go up, companies are increasingly finding it difficult to recruit quality employees in the big cities. Also of concern is infrastructure constraints in Bangalore, Gurgaon and elsewhere.
The plan to build brand new towns is designed to address some of these issues. It is felt that these new towns will provide a steady supply of workers besides being specifically geared towards the needs of the IT and BPO sectors.
The proposal, suggested by a high-level group on service sector, has been cleared by the Planning Commission. "The modalities for the ambitious plan will be finalized very soon," a source said.
According to the plan, each IT city will be set up in an area of more than 500 hectare. The cities will altogether generate employment for around 3.5 million people by 2018.
The proposal is to create self-contained satellite townships with commercial space for renting and a commensurate increase in residential accommodation, education, healthcare, retail and recreational facilities.
"Improvement in infrastructure is very important to ensure the continued competitiveness of IT and BPO industries," an official said while explaining the rationale behind the move. At present, the major volume of IT-enabled services is concentrated in seven cities — Bangalore, Chennai, Mumbai, Hyderabad, Kolkata, Gurgaon and Noida. Government estimates point out that 95% of the IT and BPO service industry is in these cities, with around 36% of services concentrated in Bangalore alone. According to officials, the IT and BPO business in the country is likely to grow by 2.5 times in the next 10 years.
The growth cannot be absorbed in major cities. As infrastructure in major cities is already under tremendous strain, the IT sector has started migrating to smaller cities. However, the volume of business in the IT sector likely to come to India is huge which even tier II & III towns are unlikely to handle, considering poor infrastructure.
Under the ambitious proposal, the government plans to shift 40% of the business to the upcoming 43 cities by 2018. The new towns will be properly planned and laid out and endowed with modern infrastructure and good connectivity to the big cities and airports. These townships will have residential and work areas with all essential services - water supply, power, civic amenities, health, education, transport and entertainment - to meet the civic and commercial needs of the workforce.
The Centre has sought the support of state governments in facilitating creation of these new towns. The proposal suggests that the towns will be developed by private players and state governments will ensure trunk services like electricity, water supply, sewage and drainage.
Subscribe to:
Posts (Atom)