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Infosys may back out of Pune project

Software industry sources say the company is exploring an alternative site, as the Maharashtra government is unable to provide it with the required amount of land.

T O D A Y

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Infosys had earlier announced its plans to set up a new software development centre in Pune at an estimated cost of Rs 500 million.

The centre is part of the company's strategy to branch out of Bangalore.

Sources say the company has already approached the state government with its proposal, but has only received a lukewarm response.

While Maharashtra has expressed inability to provide the land, it is offering some other concessions like tax benefits, the sources added. "We don't want sops like tax concessions, as we anyway earn a bulk of our revenue through exports.

"All we want is some support from the state government by way of land, which they are finding difficult to provide," said a senior Infosys source.

Infosys has drawn up ambitious plans to go global, for which it will go in for a $75-million American depository receipts issue this year, and seek listing at either the New York Stock Exchange or NASDAQ.

A major part of the issue's proceeds will be used to create physical and technological infrastructure in India and abroad. While about $35-45 million will be used to develop domestic infrastructure, about $10 million will be deployed for creating facilities abroad.

- Compiled from the Indian media

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