New IT hotspots in the making

New IT hotspots in the making
Some old industrial areas in the city are now turning into IT hubs as many industries located here find this option more profitable.
The TImes of India


The dearth of office spaces for IT, ITES, and BPOs in Bangalore is growing by leaps and bounds. Close on the heels of some of Mumbai's industrial areas giving way to residential projects, Bangalore is all set to follow suit, except for the fact that industries here will pave way for office spaces. Digest this: Bangalore has to create another eight million sqft of office space to meet the current demand with over seven million sqft already absorbed in first six months of 2005. The eroding space for IT establishments has prompted industrial landholders to explore options for optimal utilisation of their properties. The fall out: traditional industries, both large scale as well small scale, including, steel, gas etc, are getting converted to tech parks and integrated projects. To top it all, now, even the state government is jumping onto the bandwagon to cash in on the demand.

The driving force behind these changes is the IT wave on which the city is riding for more than half a decade now. The industrial areas situated in the periphery of the city have now have become prime locations, all thanks to urbanisation and migration. Some of the key industrial areas including Hoodi Industrial Area, Peenya Industrial Area, and Old Madras Road are new IT hotspots in the making.

The trend snowballed with many industries taking the cue and entering this market as they found it difficult to revive their industries due to various reasons. Hectic lobbying and discussions are on, and everyday a deal is finalised. And this is just the tip of the iceberg. A lot will come to light at the end of the third quarter feel experts in the realty market. Small scale industries' lands measuring not less than five acres and more than five acres to around 40 acres of large scale industries' lands are up for development. They are quantified on a per sqft basis and nothing is less than Rs 600 per sqft going up to around Rs 1,600 per sqft.

State’s tech park
The new development has now caught the imagination of the State Government too. The Rajajinagar Industrial Area that was set up in the 1970s has now very few prosperous industries and many displaying lock-out boards. While measures to revamp the sick units have gone in vain, the State is taking steps to cash in on land holdings. A new IT/BT park is coming up fast in this industrial area. It is the new project of the Karnataka State Industrial Investment and Development Corporation (KSIIDC). Conceived in accordance with international standards is this new IT/BT Park in the Rajajinagar Industrial Area, off West of Chord Road.

Speaking on the KSIIDC's new venture, R N Chauhan, Deputy Director, KSIIDC, said, "strategically located in the well developed Rajajinagar Industrial Area, the IT/BT Park will have all the modern amenities best-suited for companies that operate on multi-point systems. The park will have a total built up area of 2.4 lakh sqft with around one lakh sqft dedicated for utility services, and the rest for office space. It is estimated to cost Rs 40 crores". He claims that, "with many office spaces situated in the peripheral areas of the city that result in losing out much time in travel, this option can avoid travel hassles. The other advantage is that the rent here is Rs 30 per sqft, which is much below the market prices. The minimum area for allocation to private firms is 5,000 sqft while there is no outer limit".