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28th January 2002

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Front Page > News Analysis > Full Story

Chandigarh tries again to catch the IT bus

Two years ago, Chandigarh joined the bandwagon of Indian cities aiming to becoming IT meccas. Those dreams ended in shambles, thanks to government apathy. But the new administration has new plans up its sleeve and is going all out in a do-or-die effort, says Vineet Joshi

J F R JACOB says his single-point agenda is to create wealth for Chandigarh and its citizens

Once the dream venture of French architect Le Corbusier who designed the city in the year 1952, Chandigarh the first planned city of independent India is today a dream venture for the 78-year old Governor of Punjab and city administrator of Chandigarh, Lt Gen J F R Jacob and his team of enthusiastic officials who call themselves a ‘corporate body’ within a government all because they envision Chandigarh as the next IT destination in India.

The countdown for this has begun and this means a virtual overhaul of many things in the city. The single-point objective is to transform the city on all fronts, be it power, transport, roads, water, education, housing or recreation, so as to become the darling of IT companies and attract the best of talent.

The master plan is divided into a five-point agenda:

  • Oiling associated infrastructure like transport, roads, power, housing, health, and recreation.
  • Laying a high capacity broadband network criss-crossing the entire state.
  • Setting up an IT park and providing land, office space, necessary infrastructure and tax concessions in a single window clearance format.
  • Transforming all government functioning and operations through e-governance completely obliterating red-tapism from the system.
  • Sprucing up the education system of the region to churn out qualified IT professionals, and marketing Chandigarh in India and abroad to attract the best in the industry.

The budget for all this? Whatever it takes to transform Chandigarh into a hi-tech city with the desired civic, education and recreation amenities. “We are not competing with other cities like Bangalore, Hyderabad, etc. We are moving with the single-point agenda of generating wealth for the city and its people. And the first step for reaching this goal is to improve infrastructure, the education system and provide good quality of life to people residing in the city,” says Gen. Jacob. In fact, he puts the entire exercise of “upgradation and overhauling” the city as a very “simple act” often made complex by unnecessary rules and regulations and political pressure.

It’s not that Chandigarh hasn’t tried to tap the IT opportunity. Two years ago, in the year 1999, the city tried riding the IT wave but apparently lost its way somewhere in the middle of 2000 due to the slowdown in the economy, bureaucratic hassles, slack marketing and implementation of policies. Today it is standing at the threshold of yet another attempt to relive the dream. But the approach, this time, is what officials call foolproof proactive and all-encompassing.

As a first step the state has come out with an IT policy and an IT Task Force. The policy specifies clear-cut norms for approvals, sanctions, registrations, investments, etc. As per the policy, all proposals and investments related to IT will go through a single window clearance and can avail of the benefits of income tax concessions and waiver from other levies. The government has also announced several fiscal and monetary incentives to make IT investments easy and attractive. The special task force will enable speedy transfer and occupancy.

The state administration has also cleared the setting up of an IT Park spread across 104 acres of land near Kishan Ganj, Chandigarh. “Situated around 4 kms from the Punjab & Haryana Secretariat and 2 kms from the golf course, the IT Park is located at the heart of the city and yet away from the hustle-bustle of town. Initially we plan to promote Chandigarh as a prime destination in North India and then market the city on all-India basis,” says Karan A Singh, finance secretary, Chandigarh Administration.

The government has already invited applications from major IT companies like Wipro, Satyam, TCS, Infosys and General Electric, and has got in excess of 25 responses. It is understood that Infosys has already applied for an expression of interest and is in the final stages of buying the land in the IT Park. “We are in the process of scrutinising applications based on our parameters and will take a couple of months to allocate the land. Our focus is to give the land to IT companies in hard core software development, and IT enabled companies,” informs Vivek Atray, director-IT, Chandigarh Administration.

The government has also invited all the major infrastructure companies for wiring up the entire city. Under the first phase, HFCL, Spectranet and Power Grid have already laid 80 km of OFC across the city. Two other companies Bharti and Reliance, have started laying OFC in the second phase of infrastructure development.

The administration has already computerised all the major departments like police, excise and sale, licensing, income tax, etc. Soon the departments will start functioning online and have citizen-government interfaces. It is understood that by the end of 2002, all government departments will be computerised.

But what about the problem of sourcing high-end quality IT professionals which seems to be the problem staring right at the face of Chandigarh administration at the moment. The short term plan, which will fulfill immediate requirements, will encompass upgrading all polytechnics in the state to provide high-end courses; start engineering degree courses in polytechnics after revamping infrastructure and faculty; introducing additional IT courses, and also increasing the seats of existing IT courses in Punjab University; and getting deemed university status under the World Bank Scheme for Punjab Engineering College (PEC). The long-term plan includes setting up of an Indian Institute of Information Technology (IIIT) and also approaching private training institutes for setting up education infrastructure of international standards one such example is the Canadian Institute of Computer Science and Technology (CICST) set up by Georgian University, Canada, set up in Mohali, near Chandigarh.

“Simply opening up the economy, providing adequate space to IT companies and proactive policies are no longer enough. We need to develop attractive configurations of locational advantages for investors. Here what is required is to provide all civic, cultural and social amenities to professionals. Our aim is to provide quality of life so as to attract and retain human resources,” says Jacob.

But, not everyone believes that the city can undergo such a sudden transformation. The timing may act as a major blockade for progress. Chandigarh is experimenting with the “IT city” concept at a time when most IT companies are passing through a lean patch and shying away from any new investments. “IT companies do not simply come in and invest. Chandigarh failed to capitalise on the IT boom that happened two years back because of bureaucratic hassles and policy problems. Today, the task ahead for Chandigarh administration is something like running against the wind. Even if the transformation happens it will take a lot of time and consistent efforts. Any break in effort will jeopardise the whole effort,” says Bal V Sehgal, executive director, Quark Media House (India), the Indian development arm of Quark, the global publishing software major, and one of the biggest software operations running in Chandigarh today.

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