Tuesday, August 15, 2006
Land Alloted By AP Govt To Infosys At Shamshabad Hits A Snag
Infosys's plans of setting up its largest campus in Hyderabad have hit a snag because a part of the land given to it by the government had already been allotted to another company by a predecessor regime.
On March 27, 2006, it was promised 550 acres to set up a campus in Hyderabad.The Andhra Pradesh Chief Minister Y S Rajasekhara Reddy promised Infosys Chairman Narayana Murthy.
Infosys is planning to build a multi-function facility , at a cost of Rs 1,250 crore, on a 550-acre site near Shamshabad. The sprawling facility was meant to dwarf the company's headquarters in Bangalore and give a huge boost to Hyderabad's effort to step out of that city's shadow as a destination for IT investment . Seeing this as a great branding opportunity for the city, the government rushed to allot 550 acres of land near Shamshabad to Infosys last year.
Once initial euphoria of the deal cooled, Infosys discovered that about 100 acres of the land promised to it falls in a 450-acre sprawl that had been already been signed over to sports management firm IMG Bharata. According to a government order issued on Feb. 9, 2004, IMG Bharata was allotted about 450 acres near Shamshabad for developing sports and leisure facilities. Officials say the glitch was not discovered until they were preparing documentation for the transfer of the land to Infosys. They are now worried because the deal with IMG Bharata looks destined to go international courts of arbitration.
Now the state government plans to bring in an ordinance to cancel the deal with IMG Bharata and hand over the land to Infosys. If IMG Bharatha contests the move, it could mean a long court battle for Infosys but Infosys would rather look elsewhere, beyond the promised land in Hyderabad.
Infosys would apparently prefer to scrap the deal if it does not get the promised land but the government is optimistic. "I can assure you that they will come back to Hyderabad," said YS Rajasekhara Reddy,Chief Minister of Andhra Pradesh.
Infosys is being patient for now. "We are aware of the issues involved. The state government has to hand over the land to us by the monthend or early next month. We are sure that the government will come through with its promise," Infosys human resources development director T V Mohandas Pai told.
On March 27, 2006, it was promised 550 acres to set up a campus in Hyderabad.The Andhra Pradesh Chief Minister Y S Rajasekhara Reddy promised Infosys Chairman Narayana Murthy.
Infosys is planning to build a multi-function facility , at a cost of Rs 1,250 crore, on a 550-acre site near Shamshabad. The sprawling facility was meant to dwarf the company's headquarters in Bangalore and give a huge boost to Hyderabad's effort to step out of that city's shadow as a destination for IT investment . Seeing this as a great branding opportunity for the city, the government rushed to allot 550 acres of land near Shamshabad to Infosys last year.
Once initial euphoria of the deal cooled, Infosys discovered that about 100 acres of the land promised to it falls in a 450-acre sprawl that had been already been signed over to sports management firm IMG Bharata. According to a government order issued on Feb. 9, 2004, IMG Bharata was allotted about 450 acres near Shamshabad for developing sports and leisure facilities. Officials say the glitch was not discovered until they were preparing documentation for the transfer of the land to Infosys. They are now worried because the deal with IMG Bharata looks destined to go international courts of arbitration.
Now the state government plans to bring in an ordinance to cancel the deal with IMG Bharata and hand over the land to Infosys. If IMG Bharatha contests the move, it could mean a long court battle for Infosys but Infosys would rather look elsewhere, beyond the promised land in Hyderabad.
Infosys would apparently prefer to scrap the deal if it does not get the promised land but the government is optimistic. "I can assure you that they will come back to Hyderabad," said YS Rajasekhara Reddy,Chief Minister of Andhra Pradesh.
Infosys is being patient for now. "We are aware of the issues involved. The state government has to hand over the land to us by the monthend or early next month. We are sure that the government will come through with its promise," Infosys human resources development director T V Mohandas Pai told.
# posted by mashup @ 1:18 AM 
