Lokesh: Investors leaving AP linked to previous govt asking for shares in IT firms

Amaravati: Leaders in the previous government demanding shares in Information Technology (IT) companies have resulted in investors leaving the State, claimed IT minister Nara Lokesh on Thursday.

Replying to the questions raised in the AP Assembly by the members Vamsi Krishna, Srinivas, Ganta Srinivasa Rao, Vishnukumar Raju and Eswara Rao, the minister for Education, IT and Electronics said that chief minister N Chandrababu Naidu worked for his goal of ‘one capital and decentralisation of development’ during his previous term as AP CM.

“As part of his goal, he made every effort for the progress of the IT sector in Visakhapatnam,” Lokesh told the Assembly.

‘Previous government demanding shares in IT companies hurt State’

Lokesh said that it is really gratifying that Telugus form 20 per cent of total employees in IT across the globe.

He said that at least 150 companies were set up in the State between 2014 and 2019 providing jobs to 50,000 youths. “We have even entered into an agreement then with industrialist Adani to establish a data centre in the State and organised a conclave in Vizag with several IT giants,” Lokesh said.

At a time when the IT industry was at the peak of its progress, there was a sudden halt due to the policies adopted by the previous government, he said. Perhaps for the first time in the history of the country, the government had demanded shares in IT companies following which units like NICSI and STBI have left the State due to which the youth lost employment opportunities, Lokesh said.

‘TCS agreed to set up Vizag campus’

“In the past five months, I had discussions with representatives of various IT companies which resulted in the Tata Consultancy Services (TCS) setting up its unit in Visakhapatnam. The company also agreed to set up a campus in Vizag. I also made a request to Infosys to set up another campus. We are now in search of necessary land for them and I am confident that within six months the project will take off,” Lokesh declared.

Maintaining that the State Government is functioning with a target of providing five lakh jobs in five years in the IT sector, Nara Lokesh felt the need to create the ecosystem necessary for the IT companies. Recalling that he has held discussions with owners of various data centres during his recent visit to the United States, the IT minister said that since the previous government did not focus on setting up data centres they moved to neighbouring States like Karnataka and Telangana besides Mumbai.

Targeting $100 billion investments to the State

At least $300 billion will be invested in this sector per annum, Lokesh said and stated that of this his target is to attract at least $100 billion to the State. The data centre owners had raised several issues during discussions like data security and taxation, he said, adding that now talks are on to resolve these issues.

Biggest convention centre in Vizag

Lokesh informed the House that the Bhogapuram Airport works are moving at a fast pace and the biggest convention centre in the country which is part of the social ecosystem is going to be established in Visakhapatnam very soon. He also felt the need for more and more hotels along with such companies.

Expressing confidence that the discussions he held with the top 100 IT companies in the country will be fruitful, Lokesh said that these companies also will be invited to Vizag. He also stressed the need for a new policy for setting up global delivery centres of Fortune 500 companies which is likely to be adopted next month.

Rs 500 crores released to pay dues to companies

Lokesh admitted that payment of incentives to certain companies is due and announced that Rs 500 crores has been released recently for the purpose.

Maintaining that now the focus is on ‘Speed of Doing Business’, Lokesh said that the issue of granting permissions to the IT companies is being closely monitored. Reliance BioEnergy company has come forward to establish its unit with a 700-unit capacity, Lokesh said and expressed his readiness to discuss with any company if the members bring any such proposals.

At least two data companies are going to set up their units in Visakhapatnam in a couple of months, Nara Lokesh said and stated that efforts are on to get NICSI to Vizag. The IT minister felt that if a national-level data policy is adopted data companies will certainly come to the State with massive investments.