5 STPIs to be privatized

PUNE: In a move to generate more funds and increase IT penetration in remote

areas, five profit-making STPIs are being privatized. They are Pune, Chennai,

Noida, Hyderabad and Bangalore.

Lakshminarayanan, joint secretary, ministry of Information Technology (MIT)

informed the press about the privatization while speaking on `An IT Overview

Vision for India' at the three-day Ice2001TechSummit@Pune.

The aim of the exercise is to generate more funds to establish new STPIs in

areas where IT penetration is not high. Lakshminarayan said that a proposal has

been placed before the Cabinet and the process is likely to start by the

year-end. He expects the sale of the STPIs to private parties would generate Rs

500 crore.

"A new company will be formed where assets of these STPIs will be

transferred and auction bids will be invited. Following this, the process of

disinvestment will begin," he said.

Sikkim, Guwahati and Lucknow have been identified for new STPIs.

Commenting on the progress of Media Lab Asia, he said that a Malaysian

government delegation is expected to visit India to discuss the possibilities of

investing and conducting research in areas of interest.

Media Lab Asia is proposed to be a network of national as well as overseas

projects, people and laboratories dedicated in bringing the benefits of the most

advanced information technologies to the people. It is anticipated to be an

ambitious Rs 5000 crore, 10-year plan for meeting the ground challenges in

learning, health and enterprise.

Lakshminarayan said that they are looking for funds from interested countries

for conducting research in relevant areas of interest. A similar delegation is

expected from South Korea next month.

Lakshminarayan dismissed any potential threat from China in the IT sector.

However, after visits from around 40 Chinese delegations, MIT is now adopting a

cautious approach, he said. "They come here, see and replicate," he

added explaining the reason why they are no longer encouraging such delegations

to visit India. He also spoke about the possible merger of the IT ministry and

the ministry of Information and Broadcasting. "The file is now with the

Prime Minister," he said. The merger would see a lot of changes since a

single ministry and a bureaucracy would handle things thereafter.