Round About

STPI, Bhubaneswar: A Small but Responsive Centre

by VARINDIA 2010-04-01

With a couple of years left for the expiry of STPI Scheme in India, sweat has already started dripping down the forehead of the industry pundits as to how to sustain India’s software and services programme. Apparently, the answer appears to be SEZ till the Government of India, Department of Trade and Commerce, comes up some other solution. The point is that it takes a little time to adapt to the new environment and the transition also takes toll of the existing pace of work if the scheme is scrapped completely. It is to be remembered that most of the STPs are doing an excellent job. And, 90 per cent of the software exports happen from STP units and the rest from SEZs and other units.

Some time back, VARIndia had an interaction with Manas Panda, Additional Director, STPI, Bhubaneswar, to have his viewpoint as to how STPI, Bhubaneswar is faring. This Centre actually gained momentum very late, but the growth is one of the fastest across the centres in India.STPI, Bhubaneswar was set up along with other two centres – one in Bangalore and another in Pune in 1990, but when Bangalore and Pune assumed high growth expanding their units across the cities, Bhubaneswar remained a laggard. But as the industry progressed and there was too much of pressure on the infrastructure and resources of those cities, industry biggies started relocating to the Bhubaneswar and the City of Temples welcomed everyone. It first started with Infosys and then TCS, Satyam and MindTree, and these IT giants were followed by a very large number of SMEs. Today, under Bhubaneswar–STPI, there are nearly 103 software and ITeS units flourishing, whose export turnover has touched Rs.732 crore in 2006-07, which is about 58 per cent higher than the previous year. STPI–Bhubaneswar’s internal revenue generation for the year 2006-07 was close-to Rs.300 crore.

Panda says, “Since its inception, STPI–Bhubneswar has come a long way and achieved major milestones in the IT sector of the state. It is a matter of pride that the initiatives of STPI have contributed significantly to the growth of the IT sector of the State as the dream of making Bhubaneswar an IT city is gradually becoming a reality."

“STPI is constantly working with an objective of promoting software exports by undertaking various statutory and promotional activities and managing infrastructure facilities. Apart from our promotional role, we offer various statutory services for STP scheme, data communication facility, Incubation facility for SMEs, Project Management & Consultancy (PMC) and training in the niche areas for manpower development. STPI, Bhubaneswar manages and looks after the implementation of the STP Scheme in the State of Orissa,” he adds.

Today, in this computerised world when vendors position their own product with a different value proposition, STPI–Bhubaneswar tries it to be different by giving more emphasis on promoting SMEs. It being a small centre with a handful number of units under it, the officials are more responsive. Therefore, it becomes easy and quick for them to solve any issue or bottleneck. The Centre also works closely with the State Government for offering various State incentives like land at a low cost and other facilities to STP units.

“Besides, STPI, Bhubaneswar offers various services like project approvals, import approval, bonding, export valuation and certification for the member STP units registered under STPI, Bhubaneswar. It established its own International Gateways integrated with both Satellite and International fiber for providing data communication services,” maintains Panda.

He adds, “We also offer incubating space and other general amenities especially for the Small and Medium Entrepreneurs (SMEs). It is well equipped with all the basic amenities like utility power, backup and captive power, telephone, security, training aid, common reception and library which eliminate the capital investments by SMEs in facility creation. Apart from the above, we offer Project Management & Consultancy (PMC) in networking and training in the niche areas as part of our Manpower Development Programme for IT industry.”

Overall, Bhubaneswar–STPI has been successful in creating a conducive and friendly environment by providing handholding and escorting facility to the entrepreneurs to make them flourish.

However, there are certain challenges which STPI–Bhubaneswar deals with effectively. Panda says, “At a place like Bhubaneswar, the segment of SMEs is fairly large. They need more Incubation Space for start-ups. We are working with the State Government and other agencies to create and make provision for more and more Incubation Space. Apart from that, competition from big players in data communications front and price slash are other challenges which are taken care of by enhancing our service support.”

The result of all these personalised supervision is that this Centre of STPI at Bhubaneswar is making a high growth of 58 per cent compared to the overall growth of STPI, which hovers around 35–36 per cent. And, the Centre has set a goal of achieving software exports of Rs.1,000 crore and operation of STPI Centre at Berhampur in 2008.