Establishment of an earth station to provide a broad bandwidth will require an investment of Rs 3 crore. Now, STPIs will be required to invest Rs 1 crore each while the balance will come as a loan from the MIDC.

MIDC has undertaken development of software parks at Seepz II in north west Mumbai, Millennium Business Park at Navi Mumbai, Nashik, Nagpur, Aurangabad and Kolhapur.

MIDC's decision is important as the Karnataka government about a forthnight ago had announced a Rs 1 crore grant to STPI for a similar purpose. However, because of the difference between the grant in aid and loan an STPI will incur an immediate expenditure of Rs 2 crore in Karnataka while it will have to shell out just Rs 1 crore in Maharashtra.

MIDC chief executive officer Jayant Kawle The Financial Express, following the board meet, that these earth stations will be set up within a year. The bandwidth will vary from place to place.

Kawle said this decision will boost the growth in the information technology and help in making Maharashtra as a dotcom capital. STPI director Sunil Kulkarni while welcoming the MIDC's decision said that earth station at Millennium Business Park will have a bandwidth of 34 Mbps while it will be extendable at the Seepz -II to 80 Mbps. The bandwidth for Nashik, Nagpur, Aurangabad and Kolhapaur will be restricted to 8 Mbps.

Kulkarni said that STPI will not have any problem related to finances as of the Rs 1 crore, it will get Rs 50 lakh from the union ministry of information technology while the balance from the internal accruals. He informed that TPI, Mumbai has earned a revenue of Rs 2.75 crore till date while its revenue during the last fiscal through various STPI schemes was Rs 75 lakh.

Kulkarni said that such a bandwidth will be provided for giving internet connectivity and international point to point lease circuit. STPI charges Rs 30 lakh per annum for 64 Kbps connectivity for international point to point lease circuit and for internet connectivity it will be Rs 4 lakh per annum.