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Kolkata your new IT Destination Government of West Bengal No part of it may be circulated, quoted, or reproduced for distribution outside the client organization.

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Presentation on theme: "Kolkata your new IT Destination Government of West Bengal No part of it may be circulated, quoted, or reproduced for distribution outside the client organization."— Presentation transcript:

1 Kolkata your new IT Destination Government of West Bengal No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Government of West Bengal. This material was used by Government of West Bengal during an oral presentation; it is not a complete record of the discussion.

2 1 CONTENTS West Bengal – Facts An offer you cannot refuse West Bengal – Facts

3 2 WEST BENGAL – THE REALITY Reality Economy 4 th fastest growing state in the country (ahead of Maharashtra and A.P) in the post-reform years 4 nd highest inflow of investments in recent years Fastest growing STP with 175 companies employing 15,000 IT professionals TCS, Cognizant, Wipro, IBM, CA, NIIT, AIG have centres IT Industry Lowest cost of operations - Cheapest power, lowest attrition, lowest cost of living Attractive fiscal incentives Cost 3 rd best place to live in - survey by Outlook Money Best-in-class clubs, recreation centres, museums Social set-up Not a single reported case of labour trouble in IT Proactive stance of Government to work disruption Labour Most political stable state Investor friendly Government Government

4 3 THE STATES IT SECTOR HAS SEEN EXCELLENT GROWTH Source:STPI; STP Kolkata Kolkata is the fastest growing STP of the country Percent; Growth rates of STPs in Kolkata Chennai Maharastra Hyderabad Bangalore All India

5 4 KOLKATA IS AN IMPORTANT CENTRE FOR MANY COMPANIES Source:Webel; Company Interviews 4 th largest centre in the country 2,100 IT professionals Planned to be 2 nd largest centre after Bangalore 1,500 professionals employed today and will increase to 4,000 by 2004 IBM 2 nd largest centre after Chennai Investing in new facility in Kolkata JV between The Chatterjee group (TCG) & United Airlines Strength to double by 2004 Centre for 2500 IT professionals to be commissioned by January 2004 Spectraminds 4 th centre is being set-up in Kolkata

6 5 THERE HAVE BEEN NO LABOUR PROBLEMS EVER AMONG IT PROFESSIONALS HR experience here has not been different from our other locations (We) have experienced no labour-related problems in the Kolkata centre United has had no problems at all in Kolkata We have had no labour disputes in ITC Infotech IT enabled services has been provided Public Utility status

7 6 CONTENTS West Bengal – Facts An offer you cannot refuse

8 7 WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS Talent Cost of operations Infrastructure Policy Investor support

9 8 Cost of operations Infra- structure Policy Investor support Talent Best education institutes Large pool of English speaking graduates Good domain knowledge WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS

10 9 COMPANIES CAN TAP A HUGE POOL OF QUALITY TALENT IN WEST BENGAL… Source:India Today, Manpower profile of India; Team analysis Huge annual intake of under-graduate students –Over 545,000 enrol for graduate courses (including about 120,000 in commerce & 330,000 in arts/ education) in 3 yrs –Annual intake in engineering colleges is ~ 13,000 Some of the finest educational institutions in India –52 engineering colleges, 400 other colleges, 12 universities –Two colleges (Presidency and St. Xaviers) ranked among the Top-10 degree colleges Good English language skills –About 30,000 pass out every year from English medium schools (Kolkata has largest number of ICSE schools) –Companies perceive graduates to have neutral accents –Hinterland of North-East provides access to quality talent IIM Calcutta Presidency College IIT Kharagpur

11 10 DOMAIN KNOWLEDGE EXISTS IS MANY AREAS Source: Manpower profile of India ~1,20,000 students enrol (across 3 years) for commerce Countrys largest life insurer, LIC, runs largest operations One of the leading non-life insurer, NIC, headquartered in WB 15 foreign/private banks operational; HQs of 3 large banks Banking, Finance Insurance Dedicated software units for airlines and shipping business One of the largest port complexes (Kolkata and Haldia) Acts as a transportation hub for 11 Indian states Travel & Logistics Over 2000 people enrol for French and 1100 enrol for German every year Foreign Languages Nearby city of Jamshedpur houses Indias premier HR management education institute One of the largest sources of actuaries in India Human Resource

12 11 Cost of operations Infra- structure Policy Investor support Talent Lowest cost of living Lowest attrition rates One of the lowest power costs Attractive government incentives WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS

13 12 KOLKATA HAS LOWEST COSTS COMPARED TO OTHERS *Estimates provided by a leading HR agency with Nationwide footprint **Urban non-manual workers, June 2003 (CMIE) Source:Manpower profile of India; Interviews with HR Consultants; CMIE One of the lowest CMIE consumer price indices** among metros Kolkata Bangalore Hyderabad Delhi Mumbai suburbs … as evident in lower salaries* for fresh graduates Mumbai Kolkata Rs 000 p.a. (range) Bangalore Chennai Hyderabad Delhi

14 13 WEST BENGAL HAS LOWEST ATTRITION LEVELS Source:Interviews with IT companies, HR Consultants Low attrition rate is a characteristic of the culture here Attrition rate of ITeS companies in metros Delhi Kolkata Per cent Mumbai Bangalore Chennai Hyderabad Kolkata's strength is low attrition rate, which is embedded in the culture - people won't leave jobs for a Rs 500 p.m. increment NASSCOM 10 Kiran Karnik, President Lakshmi Naranyanan, COO 15 30

15 14 WEST BENGAL OFFERS THE MOST COMPETITIVE ELECTRICITY PRICES Source:C B Richard Ellis Comparison of basic tariffs in major IT destinations Rs / Unit Gurgaon Chennai Chandigarh Hyderabad Bangalore Kolkata Mumbai/ Pune NASSCOM & Gartner have ranked the state No. 1 in power availability & quality West Bengal is a surplus power state and net exporter of power

16 15 Rs 2.1 CRORE ONE TIME INCENTIVES Assumptions Project Fixed Capital investment of at least Rs.10 crore Value of material brought into WB from other states during set-up is ~Rs.15 crore (consumption tax 4-12% in WB) Description Financial impact of fixed capital investment (ceiling Rs.150 lakh) Rs. 150 lakhFCI subsidy Exemption from stamp duty and registration fee for purchase/ acquisition of land/buildings 6% of value of land/property transfer Stamp duty/ registration fee exemption Exemption from payment of consumption tax on material brought into state for initial construction Rs. 60 lakhConsumption (Entry) tax exemption Subsidised land (around Salt Lake) for 1st few large ITeS anchor investors Land at 20-30% of market price Land subsidy Total (excluding land subsidy)>Rs. 210 lakh

17 16 RECURRING INCENTIVES OF ~ Rs 1.5 CRORE 50% of ESI and EPF contribution for every employee Rs. 45 lakhEmployment generation subsidy Total annual operating cost subsidy~Rs. 152 lakh Subsidy on interest payments (50% of interest liability) – ceiling Rs. 100 lakh p.a. Rs. 100 lakhInterest payment subsidy Electricity duty waived for 1st 5 yearsRs. 7 lakhElectricity duty waiver No other state has a declared annual employment or interest subsidy Description Financial impact Assumptions 1200-person ITeS centre with average ESI and EPF contributions of Rs.600 per person p.m Electricity consumption is about 150 units per employee per month

18 17 Cost of operations Infra- structure Policy Investor support Talent Reliable telecom connectivity Walk-in physical infrastructure Best-in-class local transport Excellent social infrastructure International accessibility WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS

19 18 KOLKATA OFFERS INTERNATIONAL CONNECTIVITY THROUGH BOTH SATELLITE AND CABLE Kolkata Chennai Mumbai Kochi 580 Mbps 3 earth stations (VSNL and STPI) – one of the best in the country VSNL uses BSNL OFC leased line 92 Mbps (29 E-1s, One 34 Mbps line) and provides SLA Submarine cable

20 19 AVAILABILITY OF CABLE-BASED CONNECTIVITY WILL SEE A HUGE INCREASE SOON Kolkata Chennai Mumbai Kochi More bandwidth and redundancy from BSNL 580 Mbps 3 earth stations (VSNL and STPI) – one of the best in the country ILD services from Bharti via Singtel landng station in Chennai (by Nov 2003) Submarine cable Alternative national long distance loop from Reliance (by Dec 2003)

21 20 SALT LAKE IT HUB IS WORLD CLASS Source: Webel Indias first fully integrated Electronics Complex in Salt lake City, Kolkata Spread across 150 acres of green, pollution-free land near the airport Over 175 IT companies with 15,000 professionals Excellent infrastructure like roads, ATMs, food joints

22 21 LAND EARMARKED TO MEET 2010 IT VISION Proposed IT park (up to 40 acres) at Nonadanga acre ~Rs 40 lakh per acre Existing IT hub in Salt Lake (Sector V) acres available at Rajarhat – New Town (3 km from Salt Lake) for IT and ITeS units

23 22 KOLKATA OFFERS BEST-IN-CLASS LOCAL TRANSPORT OPTIONS Only State with fully functional underground train network –Plans to connect Salt Lake Area by 2004 Multiple modes of local transport exist like underground trains, buses, taxis, trams, circular railway State has strengthen road network further –Gariahat Flyover, largest urban flyover (2.5 Km) commissioned in record time of 368 days New road to Airport from Salt Lake (IT hub) –To be commissioned by Nov 2003 –Will decrease commute time from airport to 20 mins from IT hub

24 23 KOLKATA OFFERS EXCELLENT SOCIAL INFRASTRUCTURE

25 24 KOLKATA IS WELL CONNECTED TO MAJOR INTERNATIONAL DESTINATIONS OriginDestination x (y.z) x flights a week (flight time y hrs z min) London Kolkata Singapore Bangkok 2 (10.40) 10 (2.25) Mumbai Delhi 5 (4.05) ~50 (2.00) ~50 (2.20) City Via Add. Time* Weekly Freq. London Amsdam Frankfurt Paris Zurich New York Chicago SFO Del/Bom Bombay Singapore > > >20 Europe / USA City Via Add. Time* Weekly Freq. Tokyo HKG Sydney Singapore Bangkok Singapore Bangkok Singapore Bangkok >20 >15 >30 >25 >20 Asia / Australia * Excludes flying time from Kolkata to transit destination Source: Amadeus Amsterdam 1 (12.25)

26 25 Cost of operations Infra- structure Policy Investor support Talent Strong policy measures Strong e-governance and IT literacy initiatives WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS

27 26 THE STATE GOVERNMENT HAS ADDRESSED POLICY ISSUES RELATED TO IT OPERATIONS Permission for women to work at night and permission to run three shifts irrespective of national holidays Allow self-certification for specific enactments such as National Holidays Act, Contract Labour Act, etc. Allow self-certification for specific enactments such as National Holidays Act, Contract Labour Act, etc. Relaxations in building and zoning laws (e.g., ability to construct centre in residential areas) Provide IT units establishment status under Shops and Establishments Act Provide IT units establishment status under Shops and Establishments Act Public Utility Service status to the IT industry Public Utility Service status to the IT industry

28 27 E-GOVERNANCE INITIATIVES ARE BOOSTING IT AWARENESS West Bengal State-wide WAN (WBSWAN) –2 Mbps OFC network for data, voice and image communication –Connecting Kolkata to all district headquarters –To extend to 341 blocks and 3660 panchayats very soon Application Service Provider (ASP) model to provide public interface to government information Geographical Information Systems for Municipalities Computerisation of government departments (including land records) Aggressive IT literacy program (schools/colleges) in partnership with companies like Microsoft, IBM, HCL, NIIT, Wipro and Tata Infotech

29 28 Cost of operations Infra- structure Policy Investor support Talent Responsive, single window At set-up and during ongoing operations WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS

30 29 Key requirements of investor WEBEL - SINGLE WINDOW SUPPORT CENTRE Rental space availability Helps the company in obtaining space on rent/lease in buildings owned by Webel and private entrepreneurs Land procurement Keeps tab on land availability. Allocates as and when available Telecom infrastructure Interacts with BSNL to help procure last-mile connectivity Power connections Interacts with WBSEB to get power connections Building approval Forwards building plans after preliminary check to local Municipality to expedite clearances STPI registration Authorised to give STPI registration on behalf of STPI

31 30 Buddhadeb Bhattacharjee Chief Minister, West Bengal The Government will do what it takes to get you to the state WEST BENGAL WILL DO WHAT IT TAKES TO ATTRACT YOU


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