Government to build IT townships

New Delhi, India, August 04, 2007 - The latest player to enter India's booming real estate sector is its government. Plans are on to develop 6-7 new IT townships called Knowledge Townships. These are to be located close to major cities and international airports with private sector participation.

They will be extensions of satellite towns like Gurgaon, to be called Gurgaon Plus, Mohali, to be called Mohali Plus, and so on. Each township would have a minimum 10-hectare built-up area to make it compliant with FDI rules relating to investment in real estate. This is primarily to attract foreign expertise. The cost incurred to set up each township may be to the tune of Rs. 500 - 650 crores. Companies buying space in these townships will be given tax breaks under the Software Technology Park (STP) or Special Economic Zone (SEZ) Schemes. SEZs offer a cumulative 15-year tax exemption period - 100% tax exemption for the first five years and two subsequent five-year exemptions of 70% and 50%. Sweet.

The first of these new townships is expected to come up by 2012 and the rest by 2015. They would also be residential and based on the walk to work concept where people will be encouraged to live close to their offices. Perhaps this is the reason manufacturing companies are not on the invitation list to set up shop.

The provision of civic facilities like water, drainage and electricity will have the involvement of the Ministry of Urban Development, while NASSCOM president Kiran Karnik has plans to include top academic institutions like IIT and IIM within these townships. The Knowledge townships will also have recreational and healthcare facilities.

The committee created to steward this concept is comprised of several members from the PMO and from various ministries - IT &Telecom, Urban development, Civil aviation, DIPP and NASSCOM.

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source: inrnews.com