LACK OF AMENITIES PUTS OFF I.T. FIRMS

IT companies, including Infosys and Wipro, among others did not take up development activities in previously allotted lands and no new land allotments were made during the last five years to IT companies, pointed out the Comptroller and Auditor General (CAG).

It reiterated that the Industries Department did not ensure basic amenities before offering land parcels to IT companies. The CAG pointed out that land parcels offered by the department lacked basic amenities. Hence, firms did not come forward for setting up IT industries.

Further, the CAG commented that the industries department did not monitor the development of infrastructure by IT firms with respect to the land that was already allotted.

IT firms like Infosys and Wipro held the land allotted without development for years. The CAG commented that since the utilisation of land allotted and investment by IT firms were not ensured, the objectives of development through IT firms and employment generation could not be achieved.

Audit test-checked eight cases and found out that except by Infosys Technologies Limited, where investment made was `1,677 crores much higher than the stipulated `400 crore, none of the investments were made as proposed.

Meanwhile, TS government claimed that the ITIR project remained a non-starter because there was no communication from the Indian government regarding withdrawing the policy.