It park rents deter MNCs

By Our Correspondent

New Delhi, Oct. 26: Even as Delhi’s first Information Technology park being constructed with the aid of the Delhi government is nearing completion at Shastri Park in East Delhi, MNCs have begun vying for space. High property rentals till now have not only made the setting up of big IT parks in the capital non-viable, but has led to their establishment in the adjoining territories.

The park, which will have six lakh square feet of full construction, will become operational by the end of the year. The project, which was started in November 2003 and is being developed by the Delhi Metro Rail Corporation, is an example of immaculate workmanship with just four civil engineers and three electrical engineers involved in construction, said Delhi IT secretary Prakash Kumar.

Though Delhi has a couple of IT parks, they are small in magnitude as the high property rents act as a disincentive for the entrepreneurs of the companies to set up their base in Delhi. Instead, the adjoining territories like Noida or Gurgaon are more financially viable for them, said Mr Kumar.

The Indian government, about six years ago, launched a scheme to encourage IT in the major cities. But for Delhi, most other cities like Hyderabad, Bangalore, Chennai made good of the scheme. In Delhi, even though land was identified in Dwarka region, the project could not take off, said the official.

Apparently depending on the success of this IT park, the government here could think in terms of multiplying the effect. Generally, the software companies or MNCs rent out even though this park has the provision of selling off the portions too. The reason is that IT work involves not much of permanent assets and if cheaper alternatives are available, the companies opt for them, as in the case of Noida or Gurgaon, said the official