Nagpur: Catching up with IT

Nagpur is the largest city in central India. The countrys
geographical center (Zero Mile) passes through the city. Thus, every distance in
India is measured with Nagpur as the starting point. In fact, for quite
sometime, there have been talks of making Nagpur the second capital of India due
to its strategic location. Certainly, the infrastructure is worthy of a capital
city.

Infrastructure Strength

According to a recent study conducted by UK-based estate consultants Knight
Frank, among a host of other cities, Nagpur is ranked number one in terms of
physical infrastructure, at par with Chandigarh and ahead of cities like
Visakhapatnam, Jaipur, Kochi, Goa, and others. This is quite a vindication for a
city that has largely been untouched by rapid economic developments made
elsewhere in the country.

The city is also well connected, both by road and railways, to
different parts of the country. In fact, Nagpur is the transit point for all the
trains that connect the country. The city is also connected by air to all the
major airports, and now also boasts of international flights connecting the city
globally. And with the launch of the multi-modal international hub airport at
Nagpur (MIHAN) in 2002-03, the city has truly become an important transit
location.

Zero Mile: Indias geographical center passes through here

An Industrial Hub

Spread over an area of 250 sq km, Nagpur was one of the first cities in
India that embraced industrialization. Way back in 1877, the Tata Group started
the countrys first textile mill, the Central India Spinning and Weaving
Company, in Nagpur. Since then the city has been a center of commerce in the
Vidarbha region. A large number of industries are located in Butibori industial
area that lies in the vicinity of Nagpur. Similarly, there are many companies
like Mahindra & Mahindra, NECO, Bajaj Auto, Vicco Laboratories, which are
present in the Hingna industial estate.

IT companies are also waking up to the potential offered by
Nagpur in terms of good infrastructure, an abundant and cheap labor pool, and
the SEZs. Already a number of companies have taken up space in Nagpur, like
Satyam Computer Services. L&T is setting up an Infocity.

"Much of the IT business in Nagpur is driven by these
companies. There are a few that are based in Nagpur and, hence, local players
are benefited. Till a few years back, not many hardware vendors had a presence
in Nagpur but that has changed dramatically. Today, every companyfrom IBM to
HCLhas a representative in the city. Even Microsoft has come here and grown
by over 900%," says Vinod Verma, CEO, Key Computers.

One of the major buyers in the region is the IAF, which spends
close to Rs 3 crore annually on IT.

The MIHAN Effect

Every one in Nagpur seems to be talking of just one thing, MIHAN. Not
surprisingly, after decades of neglect, Nagpur has finally got a project that it
deserves and that too the biggest infrastructure project in India.

Taking a chapter right out of China, the government of India is
beefing up Nagpur as a major hub. So, around the airport, over 2,000 hectares of
land has been earmarked for the MIHAN project. The government agencies are
ensuring that this project is of global quality, thus, the construction is high
grade and so are all other amenities. Little wonder then that major companies
like Satyam Infotech, GE, DLF, Shapoorji Pallonji, L&T Infotech, Patni
Computers and Microsoft have taken up large parcels of land in the SEZ within
the project. And that is not all: TCS has also announced setting up of a
5,000-seater facility in Nagpur. Even MNCs like IBM and Dell have taken up space
in Nagpur.

"MIHAN is going to completely change the face of the city.
It has been the biggest thing to have happened and all the players within the
city as well as outside are keenly awaiting its completion," says Malathi
Swaminath, managing director, Zeta Softech.

It will cost around Rs 3,500 per sq ft. "MIHAN makes a lot
of sense for IT companies that want to set up shop in Nagpur in a big way. Not
only is it cost-effective, but as the colleges and residential areas are in
close proximity, there will not be a shortage of manpower to companies working
out of it," says Rakesh Agarwal, CEO, Mayur Computers.

A Scientific Hub

Over the years, largely due to the presence of innumerable engineering
government companies, Nagpur has emerged as a scientific and engineering hub.
The city is home to a number of national-level scientific and governmental
establishments like the National Environmental Engineering and Research
Institute, the Central Institute of Cotton Research, the National Research
Center for Citrus, the National Bureau of Soil Survey and Land Use Planning, the
Jawaharlal Nehru National Aluminium Research and Development Centre, the Indian
Bureau of Mines, India's Intellectual Property Training Institute, the National
Academy of Direct Taxes, the Chief Controller of Explosives of the Petroleum and
Explosives Safety Organization, and the South Central Zone Cultural Centre, in
addition to a regional office of the Indian Meteorological Department.

"Nagpurs biggest strength is its educational institutes.
With around eighteen engineering colleges in and around the city, there is a
steady flow of workforce. The big problem was that till now there was not much
opportunity for these people. But that is changing, and as benefits from MIHAN
and other projects percolate, Nagpur will see a reverse brain drain," says
Chandrahas Chaudhari, technical head, Business Services, ADCC.

"Nagpur has all the makings of an IT hub but, sadly, it has
not been the case. According to me, the city is very well suited for high-end
R&D and has the best engineering graduates that you can find anywhere in the
country. The only problem is that it gets very hot in the summers," says AK
Maji, director (Acting), NBSS-LUP.

For far too long Nagpur has been a victim of political
machinations. The region (Vidharbha) has wanted to separate itself from
Maharashtra, which does not want to let go because of its immense natural wealth
(remember Chota-Nagpur mining belt). The city has dragged along almost
valiantly, been relegated to secondary status within the state.

But all that seems to be changing now and those huge cranes near
the airport are laboring toward a new morrow. Nagpurs time seems to have come
to reclaim its rightful position under the sun.