The AP Industrial Infrastructure Corporation (APIIC) has issued notices to six software companies which have failed to establish the proposed projects within the stipulated period.

Sources said the APIIC had cancelled sometime ago allotments made to four companies including Wipro at Rushikonda. Sources said 9.65 acres allotted to Wipro was cancelled for not grounding any work. The amount paid towards the land was also refunded.

For various reasons, it is said, the software companies are unable to start work on the projects at Rushikonda. Two hillocks have been set up apart for the software companies, but the infrastructural facilities are inadequate and the companies are reluctant to start operations there due to the lack of transport facilities and telecommunication facilities. Initially, the companies were told that the land would be sold to them outright, but subsequently they were converted to special economic zones. The two SEZs are plagued by a plethora of problems.

Even though the experience at Rushikonda was not very happy, the State Government proposed another IT SEZ at Gambhe eram village near the city. The IT Special Economic Zone was developed in 20.76 hectares for allotment after the Ministry of Commerce issued a notification in April 2009. Though provisional allotment letters were issued to six companies for setting up software units, none has come forward to take up work on the project.

Only a few companies such as Symbiosis have set up units at Rushikonda and fulfilled the obligation of providing employment to 100 persons for every acre of land taken from the Government.

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