Infosys pulls 100 acres infrastructure in Bangalore

Infosys, the country’s second largest IT exporter has pulled out of its anticipated software development center project and planning to set up an Information Technology Park in Indian Silicon Valley near Bangalore International Airport.

At an instance, when it is unfeasible to acquire Industrial plots in Bangalore, Infosys has taken a pace citing lack of infrastructure at the 1,000 acre park to carry out its business plans. It has also asked the Karnataka Industrial Areas Development Board (KIADB) to repay the deposit for the land it has paid.

In a regulatory filing, Infosys said that “The Company has conveyed its intention to surrender the land citing lack of infrastructure. This extreme decision has taken by Infosys as the government has failed to offer sufficient infrastructure facilities”.

“Though the government promised to build a four lane road connecting expressway, according to the proposal the company has planned to set up the development centre of 20,000 seat on the premise, there have been no signs of occurrence,” Ramadas Kamanth, Infosys executive vice president quoted in report. Infosys restated that this does not affect the performance and operations of the company.

In June 2010, Karnataka Industrial Areas Development Board allotted 40 acres of Industrial land to Infosys at Rs 1.8 crore per acre, which requested for an additional 60 acres adjacent to the plot.

The Bangalore based software firm which employs more than 1.4 Lakh people in India with annual revenue of $8 billion had decided to build its second largest development centre on 100 acres at the Devanahalli IT Park to set up a 20,000 seats. While, it has its main campus at Electronic city seats 26,000 employees.

However, the company decided not to follow its request and to exit after it noticed dismal progress on the infrastructure front.

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