Infrastructure

This automotive and manufacturing hub is going through a sea change. It is

undergoing a Silicon City makeover, playing host to a number of IT services

majors, promising start-ups and MNCs who are increasingly finding it an

excellent place to set up research and development operations and development

facilities. Experts point out that it is not just the cost advantage that is

attracting companies to the city but the quality of work as well. Whence comes

this buzz? Here's how.

Room for Growth Unlike other cities, especially Bangalore, where space

is becoming an issue, Pune is still a long way from facing space constraints.

The Maharashtra Industrial Development Corporation (MIDC) has built four IT

Parks in Pune: the Pune Infotech Park (now the Rajiv Gandhi Infotech Park),

Hinjewadi, Phase I, Pune Infotech Park, Phase II, Talawade Software Park and the

Kharadi Knowledge Park. Space in the first and second phases of the Hinjewadi

Park, 150 hectares and 130 hectares big, respectively, has been sold out. Work

is currently in progress for developing the third phase that will include

another 148 hectares. Other properties like Cybercity Magarpatta, a 4,000,000 sq

ft software technology park touted as the biggest private STPI development in

India, boast of companies like Avaya, Aviva, Amdocs, EXL, EDS and Sybase.

Further, initiatives by the local Mahratta Chamber of Commerce, Industries and

Agriculture (MCCIA), along with the MIDC to line up an additional 1,000 acres of

land in a span of eight months to accommodate new entrants will ensure the

availability of ample space for all future needs.

Skilled

Human Resources The core requirement for the IT and BPO industries —

manpower, are also in abundant supply in Pune. Comments Nitin Deshpande,

managing director and CEO, BMC Software India, "My Indian team at his

company is far ahead of the US team and that is a great compliment to the

skilled talent pool in the city. So much so that new development work is being

increasingly entrusted to the Indian team. The engineers here are easily on par

with the rest in the country." Given the Boston of East image certainly

helps Pune in attracting students from across the country. The city today boasts

of 37 engineering colleges and an equal number of management institutes. But

others like Vivek Rastogi of eGain feel that while freshers are readily

available because of the colleges, it is difficult to attract the right middle

or senior management talent. Very few senior people from outside are willing to

relocate, and so there is a higher attrition rate. But efforts are on to change

this. For instance, PP Chhabria, chairman of the Finolex group and Hope

Foundation has helped I2IT to take shape on 10 acres at the Hinjewadi Infotech

Park. This is among the first institutes in India to offer high-end and advanced

courses in IT.

Power Even as city industrialists crib about the power situation, many

agree that it has improved over the past year. The recent monsoon has seen very

few power failures -a big plus for the industry.

Another recent effort by the Confederation of the Indian Industry (CII) on

the power scenario highlighted the fact that the solution to Pune's power

problems lay in joint ventures between the power distribution companies and the

Maharashtra State Electricity Board (MSEB). Tata Power has presented informal

proposals for setting up a 51:49 joint venture with MSEB in Pune, Navi Mumbai

and Thane. Firoz Vandrevala, managing director, Tata Power, says that the

company would make available 100 MW of surplus power to meet the power shortfall

in Pune.

The Electricity Board's distribution network is expected to the

strengthened in the next eight months to prevent major power breakdowns. Tenders

for improvement under the Rs 132 crore accelerated Power Development and Reforms

Project (APDRP) have been finalized and sent to the MSEB headquarters for

approval.

Civic Initiatives The Pune Municipal Corporation (PMC) has been

encouraging the IT industry in Pune. The recent PMC budget offers handsome

concessions in property tax to IT units. FSI rules have also been relaxed for

the IT industry, with the PMC allowing IT businesses in residential premises.

Infrastructure The city roads have been through their worst monsoon

yet. Ajay Agarwal, managing director, Seacom Solutions calls Pune an 'Osho

city' rather than an IT city, while LC Singh believes that the city planners

have no system or vision. "They are totally messing up the city, and

accountability seems to be missing," he says.

The city planners on the other hand say that steps are being taken to improve

the situation. The state government has entrusted the MSRDC with the

implementation of the Rs 260 crore "Integrated Road Development Project in

Pune Metropolitan Region," a project that includes activities like road

improvement, construction of railway over-bridges, etc.

Lack of political leadership is also a problem. Some, like LC Singh, founder

and CEO, Nihilent Technologies, believe that Pune has happened despite the

government. Agrees Arun Nathani of Cybage Software, "What we need is the

proper marketing of Pune across India, and considering government apathy, the

industry needs to execute this task." Pune has a lot going for it, but

while many factors have contributed to making it a happening city, its

infrastructure needs a drastic overhaul if Pune wants to maintain its lead and

not go the Bangalore way, in the negative sense this phrase has now come to

imply, in the near future.

Nanda Kasabe/CyberMedia News Service