HEADLINES
JOBS
COM:PORT
POLICY POLICE
ARCHIVES

Bhubaneshwar STP exports to cross Rs 500m this fiscal

This would be a significant improvement from the export earnings of Rs 40 million in 1997-98.

T O D A Y

• The Good Doctor • Essar's $140 m order • Bhubaneshwar STP • Indus to invest Rs 1 b

Most of the 28 software units operating under the aegis of the STP have commenced exports and some have just begun operations.

Between April and mid-September this year, companies under the STP have exported software worth Rs 150 million. With more companies beginning to execute export orders, the target of Rs 500 million worth of exports in 1998-99 would easily be achieved, Patnaik has been quoted as saying.

According to him, the number of companies exporting software from Bhubaneswar could exceed 50 by the end of March next year. He attributes this development to the recent government guidelines that permit companies catering to the domestic market to export software and avail of the benefits available to export-oriented units operating under the STP framework.

Consequently, the number of professionals directly employed in this sector would go up to 2,500 from around 1,000 now.

Already, several software majors such as Infosys, Satyam, Krishna Infotech and others have commenced operations from Bhubaneswar. Most of the software developed here is for companies in the US, Australia, Germany, Belgium, Japan and Singapore.

To meet the increasing requirement of trained software personnel, the STP has begun imparting training facilities. In the last six months, it has trained over 200 people. It hopes to earn Rs 500,000 this year from its training operations.

Another Rs 500,000 are expected from consultancy services, especially network consultancy. Its clients include the Regional Research Laboratory, National Aluminium Company, Institute of Physics, Xavier Institute of Management and Oberoi Hotels.

However, the major chunk of the STP's earnings is accounted for by the data communication services it provides.

In the current fiscal, its revenue from data communication services is likely to exceed Rs 8 million. Its aggregate earnings in 1998-99 are expected to touch Rs 10 million, up from Rs 2 million in 1997-98 and Rs 500,00 in 1996-97.

Patnaik claims companies are attracted to Bhubaneswar because of the ready availability of trained labour and infrastructure facilities including a dedicated earth station.

Hitherto, training of manpower was restricted to AS 400 and the Internet. The focus henceforth would also be on SAP, ERP and MRP-based training. Besides, in the last 18 months, computer courses have been introduced in 18 engineering colleges across the State. Hence, the state is geared to meet the increasing requirement of trained software personnel.

Talks have been initiated with financing agencies such as the Small Industries Development Bank of India, Industrial Promotion and Investment Corporation of Orissa Limited and the Orissa State Financial Corporation to provide venture capital to software units with special emphasis on export-oriented units.

Patnaik claimed that the STP also helped companies in their marketing efforts. He suggested that Bhubaneswar should be declared an international airport, with at least two international flights a week. "Once this happens, the software sector here will receive a tremendous boost. It would also augur well for the tourism industry in the State,'' he said.

- Compiled from the Indian media

Tell us what you think