Work on setting up the high-tech IT-enabled service habitat along with aon incubation centre for facilitating new IT ventures is already underway, Mr Menon said in his pre-election budget presented to the Kerala Assembly here on Friday.

A budgetary provision of Rs 1 crore was already provided and in the coming year an additional Rs 50 lakh has been earmarked for the augmentation of these facilities. "To take up a focussed promotion strategy to highlight the state's competitive advantages, Rs 2.5 crore has been earmarked in the coming year, he added.

The government has also earmarked Rs 5 cr for the development and expansion of Technopark in the state capital. Information technology has emerged as a potent tool for economic development of the state, according to Mr Menon.

E-governance projects such as integrated service centre or Janasevanakendram that was set up at Thiruvananthapuram as pilot project for providing single window services for citizens is now being extended to all district headquarters. A project for computerising 50 offices of the registration department is also underway.An amount of Rs 5 crore has been set aside for the Indian Institute of Information Technology and Management Kerala (IITMK) which is a centre for excellence for higher IT education in the state.

Commencement of state-wide broadband network, and private participation in building modern optic-fibre telecom infrastructure in the state will give a further boost to IT in the state, the minister added.