Chandigarh: Silicon Valley of the North?

Everything is idyllic at Chandigarh: power, bandwidth capacity, manpower
availability, and infrastructure in terms of housing, schools, and recreation.
Yet there is something that has held back the city from emerging as one of the
top IT destinations in the country. For instance, the STPI at Mohali has
registered a total of 129 companies, with most them in the SME category. Only 45
of the 129 companies are exporting currently with the rest still in the
gestation phase. STPI Mohali, which was set up in 1998, has managed to attract
only Infosys Technologies among the big software exporters. Other than that
there are two other development centers of Quark and Tata Interactive services.

Companies
who set up base in the software park are a hugely satisfied lot. Tata
Interactive Systems, Mohali, General Manager Amardeep Saluja says, "We were
tentatively exploring Mohali as the base for our next development center. But we
were surprised at the overwhelming response we received to our advertisement.
Though our requirement was only for diploma holders, we have recruited around 60
engineers. The availability of manpower is excellent in the region." This
was seconded by Jagdish K Vashishtha, Head Mohali Development Center of Infosys,
"Although our recruitment is at the national level, about 15 % of our 150
employees belong to the local population." Chandigarh boasts of many
engineering colleges in and around the city at all levels: regional, state, and
polytechnics. Company executives also speak highly about the educational,
housing, and recreational facilities available in the city. "The quality of
life in Chandigarh is much richer than in any other metro," is the common
refrain of company executives. Even at the policy level, the state has been at
the forefront. Nirmaljeet Singh Khalsi, Director cum Secretary of Department of
Information Technology, Govt. of Punjab claims, "We were the first and only
government to allow free right of way to telecom operators. As a result the
state is being wired many times over by Reliance, Bharti and HFCL."

STPI Mohali has two gateways with 45mbps and 12mbps capacity. Incidentally,
the state would also be among the first ones to announce it’s revised IT
policy and a separate policy on ITeS shortly. In fact, Chandigarh has been
placed very highly by the Gartner report as an ideal destination for ITeS. On a
scale of 7.5, Chandigarh and Mohali have scored 5.5 points. The points that
tilted the scales in favor of the region include favorable government policies,
telecom connectivity, manpower availability, power availability, and industry
development. The only drawback in the region is the air link connectivity.

There
is no international airport in the city and the air links from Delhi are not
conveniently placed. STPI Mohali Additional Director, Dr Sanjay Tyagi says,
"There is a daily flight of Indian Airlines and flights by Jet Airways
twice a week. Besides that there are two Shatabdis (train services) from Delhi
everyday. The frequencies of the Jet flights are also set to increase. I don’t
know why this has been slated as a negative point for the region."

But the report is not entirely without logic. Companies located in the region
give various reasons as to why a US company might find the location an issue.
After travelling all the way from the US, they are reluctant to let their
executives travel for another four hours or take another flight from Delhi to
Mohali. Secondly and incredulously, some American companies have even stated
that Chandigarh is near the international border and has a greater chance of
getting affected in the event of an Indo-Pak conflict.

Despite this minor drawback there is no doubt that the place has a high
potential to grow as an IT destination in the country. "The government has
recently undertaken initiatives to set up an IT Tech Park in Chandigarh and the
roadshow in the US has received a huge response", says Vivel Atray,
Director for IT, Chandigarh. Officials are optimistic that with the new Tech
Park IT activities in the region will get an added fillip.

Due to insurgency problems in the region, IT industry has had a late start,
but it scores above many destinations in terms of facilities offered. However,
in the days of high decibel, and pitched against the likes of laptop-trotting
Chandrababu Naidu, media-savvy SM Krishna and the latest aggressive campaign by
the Kerala government, the Chandigarh administration will have to pull together
its act to make itself the first among equals.

Balaka Baruah Aggarwal/CNS in
Chandigarh