At a seminar on `UP IT Vision', organised by the PHD Chamber of Commerce and Industry (PHDCCI) in Delhi, state minister of IT, Electronics and National Integration Raja Mahendra Aridaman Singh said that they have set a target of Rs 1 lakh crores turnover by 2007-8 for IT products. An appropriate action plan for IT along with the new policy will be announced soon.

Several projects have been identified in the draft policy where entrepreneurs can come and invest. R N Trivedi, principle secretary (IT & Electronics), Government of UP, says that a lot ofopportunities exists in the execution of Smart City projects for Noida, Lucknow, Kanpur, Agra, Allahabad, Varanasi, Gorakhpur, Meerut, Bareilly, Nainital, Faizabad, Ghaziabad, Aligarh, Dehradun and Jhansi. "Opportunity is just waiting to be tapped."

Private participation has also been invited for setting up software technology parks. The places identified are Noida, where the project cost in the first stage is Rs 13 crore with the government equity up to 11 per cent; Lucknow and Agra, where project cost is Rs 5 crore with government equity up to 26 per cent; Varanasi, where project cost is Rs 5 crore with government equity up to 50 per cent; Dehradun, where project cost is Rs 3 crore with government equity up to 50 per cent.

According to Saurabh Srivastava, MD, IIS Infotech Limited, who has been running a software exporting unit in Noida for the past nine years, the decision to computerise various government departments and undertakings and providing Internet connectivity and servers will provide a lot ofbusiness to IT professionals. "The government's focus on improving IT literacy will create a market for computer companies."

Besides, there are a number of other opportunities for investment like setting up a chain of information kiosks, designing and developing Wide Area Network (WAN) for Uttar Pradesh on BOT or mutually agreed terms, setting up facilities for e-commerce/EFT/EDC at appropriate exporting centres and commercial hubs like Agra, Kanpur, Varanasi and Moradabad, setting up rural telephony project to cover the one lakh villages of UP over five years and setting up hardware and component units.

There are also plans to develop electronic toy industry, security, auto and instrumentation electronics using the technical strength of IIT Kanpur and ER&DC, Noida.

Says Trivedi, "We believe that our tax rates will be more attractive than other states which will encourage investments from outside."Nalin Kohli, vice-president, Electronics and Software Export Promotion Council (ESC) and president,Association of Small and Medium Electronics Industry, pointed out to the minister that laws regulating the IT industry in the state should be reviewed as they lead to unnecessary complications. "Certain laws like the pollution law do not apply to the industry, so they should be done away with. We want simplified legal regime for IT units."Kohli said that since IT entrepreneurs are not hard-bred business people and get demoralised when accosted needlessly by inspectors.

Kohli also said that Uttar Pradesh had very few engineering colleges and there was a need to increase the numbers as trained professionals are a pre-requisite for higher end software manufacture.

"If the Uttar Pradesh government can persuade IIT, Delhi, to set up a second campus in Noida with a focus on IT, it will boost IT business in the state."The government too has given recognition to the need for promoting IT in education sector while framing the draft policy. The state government has set a target of having one crore computerliterates in the state in 10 years. This will be achieved by making computer education compulsory from class VI, creating at least one computer education centre in intermediate/degree college at block level in five years and opening institutes for training teachers in computer education at divisional level.According to Trivedi, government's initiative in promoting IT education will provide several business opportunities for entrepreneurs. The private sector can invest in setting up distance learning programmes for increasing computer literacy.

Initiative is also invited in training higher level personnel individually or in association with IITs at Allahabad and Kanpur and developing and executing higher-end computer education programmes in collaboration with universities and engineering colleges.

The policy states that efforts will be made to strengthen the financial infrastructure. Venture capital fund will be created with the help of the state government, financial institutions and private promoters.SFIs will provide funds in line with recommendations of Government of India IT Task Force.

A special package will be formulated for IT industry at reduced interest/seed capital rates. Moreover, sales tax concessions and relief on sale and purchase of computer hardware and software will also be given.Trivedi added that steps were being taken to simplify the administrative infrastructure in the state. An IT Advisory Board is under constitution which will have representatives from industry and academies from India and abroad.

Moreover, a Directorate of IT and Electronics is also being created for IT developmental activities and to provide single table clearance. "Out aim is to facilitate smooth flow of investment and operations."

Inviting prospective entrepreneurs to come up with suggestions regarding additional facilities they require, Trivedi said, "We are open to all kinds of suggestions. Uttar Pradesh is a land of unexplored possibilities and unlimited potential and we want to make it a Number Onestate in information technology." u