Karnataka: IT infrastructure may get a boost

Each time a new chief minister takes over in Karnataka, the focus shifts to the information technology sector. This time too the IT sector is watching developments very closely.

How the new Chief Minister B S Yeddyurappa will treat the sector is the million dollar question in the state capital, Bangalore.

One thing is clear and that no chief minister can ignore the IT sector. Chief ministers may say that more emphasis must be given to the farming sector, but the truth of the matter is that IT sector cannot be ignored. The growth of Bangalore and many smaller cities in the state is directly linked to the fortunes of the IT industry.

Many in the industry feel Yeddyurappa will be balanced while dealing with both the farming sector and the IT sector. He will learn from the mistakes made by the Congress government led by S M Krishna where the entire focus was on the IT sector and the farming sector was ignored. It was voted out. Yeddyurappa will be aware of the backlash if too much concentration is given to just one sector.

Nagaraj B Naik, an expert on political matters, says Yeddyurappa will give some sops to the IT sector. It was at Yeddyurappa's initiative (he was also finance minister under H D Kumaraswamy) that value added tax on software licenses was reduced to 4 per cent from 12 per cent.

Yeddyurappa is also aware that the IT industry is not only looking for tax sops. One of the major complaints has been the lack of infrastructure. Keeping this in mind, Yeddyurappa may earmark additional funds apart from the Rs 800 crore already allocated for the improvement of infrastructure. Yeddyurappa is aware that several IT firms had had threatened to leave Bangalore over the infrastructure issue.

However for Yeddyurappa, a man who has risen from the farming community, the IT sector will be second on the priority list. He dreams of leading the state towards becoming Ram Rajya. Yeddyurappa is well aware that his vote bank lies in the farming sector and he cannot ignore that. Moreover, his coalition partner the Janata Dal-Secular would be breathing down his neck.

JD-S supremo, H D Deve Gowda's thoughts on the IT sector being unnecessarily pampered is no secret. Yeddyurappa while trying to strike a balance between both the IT and farming sector will have to tread carefully.

However looking at Yeddyurappa's performance as both deputy chief minister and finance minister under H D Kumaraswamy, it is clear that the tilt would be more towards the farming sector. For the IT sector, there is unlikely to be major sops announced neither will large tracts of land given away. What it can expect is better infrastructure.