Govt,developer tussle thwarts Infocity expansion

The termination notices had been issued to the CIL for “material and contumacious breaches of both the agreements” by the Infocity developers.

The GIL has even asked CIL to handover the entire Infocity project site and transfer the project assets to the former. The developers,however,have challenged this in the court of law. The matter is pending in the Gujarat High Court.

“We have mooted plans to construct 16 more IT towers in the Infocity complex and add to the existing four. We have even chalked out a marketing strategy to attract investors,both from India as well as overseas countries,to set up their shops in the Infocity. But the litigation has compelled us to put on hold these expansion plans,” said a senior CIL official.

The official told The Indian Express on Friday that the CIL has already developed about 10 lakh sq feet of the Infocity area,and it plans to develop another 50 lakh sq feet in the complex. “We hope the government will bring some amicable solution to the legal dispute at the earliest so as to facilitate the developers to go ahead with their expansion plans,” he added.

The Gandhinagar-based Infocity was established during the Keshubhai Patel regime has entered the 10th year this month.

At present,as many as 38 Indian as well as foreign IT/ITES companies are functioning from the four IT towers of the Infocity,with a workforce of about 10,000. The TCS alone provides employment to over 3,000 young IT professionals,and imparting training to another 800. This premier Tata Group firm has hired the entire IT Tower-3 in the Infocity.

Among the other IT firms are the US-based C-Metric,Australia-based Stayin Front,Maxim and Vavni from Bangalore and Cybage from Pune.

Most of these companies are engaged in outsourcing to more than 23 countries. The US C-Metric software company is engaged in the knowledge process outsourcing (KPO) business.

Apart from being home to 38 IT companies,the Infocity spread over 150 acres provides accommodation and recreational facilities,too. Also,the developers have set up three soft towers housing small to medium domestic IT/ITES firms,shopping malls,restaurants and cafeterias.