The proposal for 43 new IT cities has been suggested by a high-level group on service sector, has been cleared by the Planning Commission. "The modalities for the ambitious plan will be finalised very soon," sources said. Each of the cities will come up on more than 500 hectares and they will generate employment for around 3.5 million people by 2018. The proposal is to create self-contained satellite townships with commercial space for renting and a commensurate increase in residential accommodation, education, healthcare, retail and recreational facilities.

"Improvement in infrastructure is very important to ensure the continued competitiveness of IT and BPO industries," an official said while explaining the rationale behind the move.According to officials, the IT and BPO business in the country is likely to grow by 2.5 times in the next 10 years, which cannot be absorbed in major cities. As infrastructure in major cities is already under tremendous strain, the IT sector has started migrating to smaller cities.

However, the volume of business in the IT sector likely to come to India is huge which even Tier II & III towns are unlikely to cater, considering poor infrastructure.Under the ambitious proposal, the government plans to shift 40% of the business to the upcoming 43 cities by 2018.

The new towns will be properly planned and laid out and endowed with modern infrastructure and good connectivity to the big cities and airports.


Source: TNN