Hyderabad boasts of over sixty R&D institutions, the largest congregation in the country, such as Defence Research & Development Laboratory (DRDL), Central Institute of Tool Design (CITD), Indian Institute of Chemical Technology (IICT). "However, most small businesses are not aware of the potential of these institutes in helping them to upgrade technologically as well as source for technical manpower."

The centre proposes to do matchmaking, with the help of experts, in identifying the industry's technical and training needs and act as a go-between with the R&D institutes.

"With the defence sector sourcing over 70 per of their requirements from the small sector, institutes such as DRDL provide ample opportunities in vendor development," saysGanesan.

The centre would strive to build linkages between big and small enterprises. Tifac and the Andhra Pradesh government have each contributed Rs 10 lakh each towards setting up of the centre while CII has come forward with secretarial support. The centre is expected to be fully operational in couple of month's time.

In the coming months, the state proposes to hardsell itself as a destination for info-tech-related business. "Apart from software, hardware sector has great potential in the state and the government plans to organise a seminar this summer," said a IT industry player. A hardware technology park is also in the offing.