Infosys pulls out of software development centre near Bengaluru International airport

Software giant Infosys [BSE 0.82 %] has pulled out of its proposed software development centre at an information technology park near the Bengaluru international airport.
At a time when it is next to impossible to get industrial plots in Bengaluru, Infosys has taken the extreme step citing lack of infrastructure at the 1,000-acre park to pursue its business plans. The company has also asked the Karnataka Industrial Areas Development Board (KIADB) to refund the deposit for land it has paid.

The Bengaluru-headquartered company with annual revenue of $8 billion from software exports employs about 1.4 lakh people in India. It had plans to build its second-largest development centre on 100 acres at the Devanahalli IT Park. While the main campus at Bengaluru’s Electronic City has 26,000 seats, the company had decided to set up a 20,000-seat facility at the new campus, according to its original proposal to the government.

In June 2010, KIADB allotted 40 acres to Infosys at Rs 1.8 crore per acre, and the company then asked for an additional 60 acres adjacent to this plot. The company, however, decided not to pursue its request after it noticed dismal progress on the infrastructure front. It has been fighting for its twin demands of a four-lane road between the airport expressway and the IT park and drinking water facilities at the sprawling park.

Infosys executive vice-president Ramadas Kamath confirmed that the company has surrendered the land and is pursuing a refund of the advance paid for the land. “Our investment proposal was approved by the high-level committee headed by the chief minister, and we had said clearly that we could go ahead with the project only if roads and drinking water are provided.

Though the government promised to do that on a priority, there have been no signs of that happening even after a wait of four long years,” he told ET.

Additional chief secretary (commerce & industry) K Ratna Prabha said she was aware of the development, and the government would not let any company exit projects, but would address their grievances.

“I have told the commissioner of industry to have a meeting with the company at the earliest, and resolve the issues. We don’t intend to refund money, but instead talk with investors,” said Prabha, who also chairs KIADB.

IT Minister SR Patil said the government would not let down Infosys, and do its best to meet the demands.

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