Buddha loses again: his IT dept scraps Wipro,Infosys projects

T V Mohandas Pai,member of the Infosys Board who was looking after the proposed investment in West Bengal,told The Indian Express over phone from London that the project in the state was “not on hold,it may be over.”

Asked if he was going to discuss the announcement with the state government,Mohandas Pai said: “What is there to talk? Chances are that we may have to go back from this project… What is happening in West Bengal is really sad… What has happened is bad for the IT industry. It is bad for young people. Shelving the project means there will be less jobs in Kolkata. It is sad for students,many parents will be sad to hear the decision.”

Last Friday,Bhattacharjee,concerned over the possible exit of Wipro and Infosys from the proposed IT township in Rajarhat,summoned Das and told him to work out a Plan B. The two companies,Bhattacharjee told his colleague,would have to be retained at any cost for maintaining Bengal’s prospects in the IT sector.

The announcement today only points to intense differences within the CPM leadership following the Lok Sabha polls. On Saturday,Bhattacharjee skipped a meeting of the politburo in Delhi. This was the third of four post-election meetings of the party’s highest policy-making body that Bhattacharjee chose not to attend. Even at a crucial two-day Central Committee meeting recently,the CM had marked token presence on the first day and returned to Kolkata by evening.

The IT department’s decision is expected to impact investments to the tune of Rs 15,000 crore by 2010 in the state and the potential for 2,50,000 IT and ITeS professionals. The state was hoping to achieve an STPI export target of Rs 10,700 crore by 2010 — from Rs 3,600 crore in 2005-06.

It was learnt that Debesh Das,whose department was under fire for entering into land deals with private parties,consulted party bosses,took the stand that he should have the right to defend his position and was allowed to take the course of action he did.

Housing Minister Goutam Deb had raised questions about the land acquisition process in the Vedic Village controversy,involving serious allegations of forcible land grab for the IT park. Land and Land Reforms Minister Abdur Rezzak Mollah tried to distance himself from controversy,pointing fingers at others including the previous Jyoti Basu government.

The IT department said one of the directors of the Akash Nirman Ptv Ltd,also the owner of the Vedic Village Spa and Resort,had been arrested and so the department decided against the project. It could not stick to its assurance of providing land to Wipro and Infosys,the department stated.