AHMEDABAD, AUG 5: In an offbeat alliance of sorts, the Confederation of Indian Industry (CII), the Gujarat Task Force on Information Technology (IT) and the Andhra Pradesh Government functionaries have in principle decided to forge a business partnership in the IT, combining the business acumen of Gujarat and the professional expertise of AP.In 1999-2000, Gujarat stood fourth in software exports (Rs 32 crore), way behind Karnataka (Rs 4,800 crore) and TN (Rs 1,914 crore) and AP (Rs 1,052 crore) out of the country's total exports worth Rs 17,200 crore to have at least an 8 per cent slice in India's projected $ 50 billion software export basket by 2008.With 6 per cent of the country's population, Gujarat has 11 per cent of the GDP, 30 per cent of the stock market capitalisation, entrepreneurial skill and a well-laid out brick'n'mortar infrastructure, backed by a vast and affluent Non-Resident Gujaratis (NRGs).On the other hand, 25 per cent of IT professionals are from Andhra. No fresh taxes have been levied in the State for quite some time thinking that `money with the people is better than that with the government'. Incentives have been given to IT-related industries in the form of rebate on land at Rs 20,000 per job created, self-certification under certain acts, special packages for mega projects, exemption from sales taxes, stamp duty relief for IT-infra development companies, free Right of Way (RoW) and 25 per cent concession in power.One of the major findings of CII-Gujarat IT Task Force, according to its leader Madhukumar Mehta, is that the AP model was more relevant for Gujarat to emulate as both the States entered into IT blitzkrieg around the same time. Unlike Karnataka and TN, the AP model is government-driven. The AP model could be replicated by other states too which have been left behind in the race for IT industry.CII-Gujarat director Sunil R Parekh, who also accompanied the Task Force, pointed out that since IT global players had already set up their bases in the three South States, they might not open another base in other states in the country soon. In such a situation, Gujarat would have to anchor new IT global players persuading them to set up their offices here.Parekh listed US-based Providian Financial president Shailesh Mehta's recent visit here in connection with setting up the India country office in Ahmedabad-Gandhinagar and the proposed visits of The Indusvalley Enterprise (TiE) president Kanwal Rekhi and Nortel Networks' Anil Khalod as some of the programmes on the agenda.
