1. Perception and image of Punjab in general and Mohali in particular to be an important center for knowledge based high-tech industry to be developed.
2. Total requirement of land in Knowledge City, Mohali will be about 2500 acres, out of which, minimum Land Bank of 500 acres to be created for allotment to knowledge based industries. The allotment should be done at the reasonable price of Rs.30-35 lacs per acre to attract the leading anchor software development and BPO companies. It will have a nucleolus effect for the growth and development of the knowledge city.
3. To attract leading companies, the Government will have to give subsidy of about Rs.50 crore in the allotment of land (250 acres @ Rs.20 lacs per acre).
4. Maintenance of roads, street-lights, parks, sanitation services etc. in the Knowledge City is very important. It should be outsourced to private parties with SLA defined.
5. To meet the requirements of power, facilitate the setting up of 500 - 1000 MW Power Plant in Mohali by PSEB / Deptt. of Power through public private participation model.
6. To facilitate the setting up of Quality Manpower Development, Institute to meet the requirements of IT, ITES, BPO, Electronics, Communication, R&D, Pharma and other knowledge based industries in collaboration with reputed national and international universities.
7. To create a nucleus of research in the areas of Bio-tech / Pharma, the existing infrastructure in Institute of Microbial Technology & National Institute of Pharmaceutical Educational Research, etc. to be utilized for setting up of nucleus of R&D activity by the private sector companies as incubation centres.

8. To ensure that the following matters are taken care of in the knowledge city:
1. Provision & maintenance of roads.
2. Provision & maintenance of street lights
3. Provision of adequate drinking water
4. Public transport
5. Law & Order situation
6. Adequate internet bandwidth
7. Commercial & shopping area.

9. Development Mohali as a showcase of Punjab Government’s e-Governance initiatives. 
 

B. SWOT ANALYSIS FOR MOHALI: 

It is proposed to develop the entire State as Knowledge State. However, in the immediate future, Mohali City will be developed as Knowledge City. Mohali has been developed as an extension of Chandigarh and it has been fully developed on an area of about 8000 acres comprising of sectors upto Sector 76. PUDA has already taken steps for acquisition and allotment of Sector No. 77 to 80. Master Plan has been prepared extending the boundary of Mohali upto Sector No.107. The population of Mohali-Chandigarh and Panchkula region is more than 1 Million people, who commute daily from their residence to work place. The proposed Knowledge City will be located on an area of about 500 acres, within the identified I.T. Zone as per the Master Plan of Mohali. The Master Plan of Mohali – Chandigarh is enclosed as Annexure-I. 
SWOT analysis of Mohali is as under: 

1. Strengths:

Mohali along with Chandigarh region already enjoys certain strengths for development into a world class Knowledge City. These can be briefly listed as under:

• Excellent existing physical and social infrastructure of Mohali, Chandigarh and Panchkula put together
• Good work and living environment
• Good quality manpower
• Presence of excellent academic and research institutes like
• Panjab University,
• PGI,
• Punjab Engineering College,
• National Institute of Pharmaceuticals Education & Research,
• Institute of Microbial Technology and
• Central Scientific Instruments Organisation
• Other 100 colleges affiliated to Punjab Technical University, Jalandhar.
• Excellent fibre connectivity
• Presence of Software Technology Park in Mohali.
• Development of Quarkcity in Mohali and Chandigarh Technology Park in Chandigarh.
• Good rail, road and air connectivity to New Delhi
• Substantial presence of pharmaceuticals industry such as
• Ranbaxy,
• Panacea 
• Surya Medicare,
• Alpha Drugs and
• Indswift Laboratories.
• Presence of STPI, Mohali for all regulatory functions
• Growing presence of I.T. Industry including DELL, TCS, INFOSYS, WIPRO IBM Daksh and strong Expression of Interest from SATYAM, GE Capitals etc.
• Availability of Venture Capital for financing IT and Innovative projects.

b) Weakness:

The following weaknesses, however, need to be addressed:

Absence of international air connectivity

• Poor infrastructure facility at the airport
• Lack of “ready to allot land” with the Government.
• Lack of hospitality infrastructure like Five Star Hotels, International Guest Houses etc.
• Limited avenues for entertainment like multiplexes, malls, pubs, theatres etc. General perception that it is not a ‘happening’ place like Bangalore. 

c) Opportunities: 

• The opportunities that this region presents are to accelerate the pace of investment in the Knowledge Centres like Business Technology, BPO, KPO, Pharmaceutical Research and Centres of Excellence in different technology disciplines.
• The region also has a strong demand for good quality housing backed by adequate purchasing power, which provides tremendous growth opportunities. Saturation of established centres like Bangalore, Hyderabad and Chennai presents a major opportunity.
• Chandigarh IT Park is coming up in Kishangarh with a clear allotable area of 123 acre whereas the additional 130 acres is under acquisition. Chandigarh is offering larger sites at Rs. 70 lacs per acre whereas for smaller sits of 1.50 acre plot is being offered at Rs. 100 lacs per acre. However the land for the Anchor Partner, Infosys, has been given by UT administration at about Rs. 30 lacs per acre to create the critical mass. 
• Similarly Haryana Government is also acquiring about 300 land near sector 23, 24 and 32 in Panchkula for making a similar park, but it is only at a conceptual stage. To attract industry in Punjab we may have to offer more competitive prices than that of Chandigarh as well as Panchkula.
• This area under the IT and services industry has a potential to create about 3 lac jobs at the rate of about one lac direct and indirect jobs every year.
4.  Threats:

• Competition from other States like Karanataka, Andhra and Tamil Nadu.
• Competition from other countries like Phillipines, China, Malaysia and Singapore.

• The existing infrastructure in terms of roads, electricity, water supply etc. may not be able to cope with the growth of investment in the area.

• The availability of qualified manpower may quickly become a constrain as more investment comes in.

C. KNOWLEDGE CITY REQUIREMENTS:

A Knowledge City must meet the following important requirements:

1. Promoting Investments in Knowledge Sector in general and ICT based Industry and Services in particular for accelerating the economic growth of Punjab.
2. Create direct and indirect gainful employment for the educated and other youth in all professions. Also promote self-employment for the youth by designing appropriate initiatives. Promote vocation ICT initiatives in schools and other institutions.
3. Facilitate NRI Investments towards development of the ICT sector within the State.
4. Promote overall quality human resource development for leapfrogging in the Knowledge economy.
5. Create an ICT enabled friendly business environment through suitable Policy, Legal, Regulatory and Institutional Framework.
6. Provide safeguards for system security, disaster recovery and privacy protection in all the Government and Business transactions.
7. Promote sustainable business model in e-Governance and other ICT initiatives through Public-Private Partnership and other revenue models.
8. To promote adoption of ICT and other new technologies in growth of industry and business to increase competitive advantage, reduce costs and boost overall economy.

The main requirements on the basis of which IT Policy of the State Government shall be based are enclosed at Annexure - II.

Given below is the indicative list of Knowledge based industry :

• Information Technology Services
• Software Development
• BPO / KPO
• IT Enabled Services
• Electronics and Communication
• Biotech
• Bio-Pharma
• Medical Research and Agro Research
• Design & Engineering
• IIIT and other knowledge institutions
• Multimedia & Animation

These industries ensure large-scale employment opportunities, require relatively small fixed capital investment and also result in export earnings. Knowledge/ IT and services industry has potential to grow steadily for the next 10 years at a Cumulative Average Growth Rate of more than 25% per year as per NASSCOM and various reports available.

Leveraging the advantage of mass employment generation by IT, ITES & BPO industry, allotment of one acre of land has the potential to create jobs for about 1000 persons with average salary of not less than Rs.10,000/- p.m. This will further bring indirect employment to about 2000 persons. The State Government is likely to earn revenues aggregating to Rs.1.92 crore on account of VAT and share of Income Tax. On an average, an investment of Rs. 5 crores on one acre of land will bring revenues of Rs. 36 crores p.a. by the software and knowledge based industry. Profit margins of about 25-30 % are available on this turnover and the state will further gain due to payment of Income tax by the companies on their profits. The detailed calculations are enclosed at Annexure-III. 

D. RECOMMENDATIONS: 

The following are the main requirements of the Knowledge City, Mohali.: (a) LAND AVAILABILITY

Total requirement of land for Knowledge City in Mohali will be about 1500 acres to be arranged as under:

i) Government acquisition = 500 acres

ii) Private Industry through initiatives = 1000 acres 

The Chief Minister has announced an amount of Rs.200 crore to be spent on the upgradation of infrastructure in & around Mohali for the Industry in general and I.T. Industry in particular. This amount may be utilized for the development of Knowledge City, Mohali. 

The Government should approve “Notified IT Area” (NITA), which will comprise of IT Sectors and Institutional Sectors. The following components should be developed:

1. Acquisition of land of about 500 acres – About half of this land will be allotted as it is to major companies requiring 10 acres or more and the other half developed into plots of 500 sq. mtrs. to 5 acres.

II. To create critical mass for catalyzing an IT hub, the State may need to offer about 250 acres of land at subsidized rates to anchor IT industries whose presence in Mohali will build up its image. Against the prevailing market land price of about Rs.60 lacs per acre, the IT anchor companies may not be willing to pay more than Rs.30-35 lacs per acre for moving into Mohali, thus, effectively resulting in a subsidy of around Rs.20-25 lacs per acre against a job creation guarantee.  This would involve a subsidy to the tune of Rs. about 50 crores.

III. As a long term measure, additional about 1000 acres land could be bought by knowledge companies or the developers of Knowledge Parks through private negotiations with suitable incentives in the form of reduction of taxes or duties, etc. in the planning areas in sector 74-A and pockets B & C of the Mohali master plan prepared by the Department of Housing and Urban Development.

However, some basic infrastructure like approach road and main sewer would have to be provided by PUDA as the common facilities for the industry to directly buy and develop rest of the area. This may involve an expenditure of about Rs.10 to 15 lacs per acre requiring a capital expenditure to the tune of about Rs.100 crores which can be recovered by way of development charges, or subsidized by the Government.

IV. A major portion of the institutional areas in sector 81 & 84 may also be offered to the IT industry at the prevailing allotment price by the PUDA for setting up  institutions related to Knowledge Industry.

Action: Industries Deptt. / PUDA / PSIEC

Time Frame:  12 months

(b) RELIABLE AND ROBUST POWER

1. Uninterrupted clean power supply is the life line for the knowledge segment. For this purpose, PSEB, will have to arrange additional power at the rate of 0.5 Megawatts per acre of Knowledge/ IT industry. No peak load restrictions or power cuts should apply.
2. PSEB can also think in terms of bringing a dedicated power plant for the entire area in collaboration with a private partner on PPP model. 
3. Thus, the total requirement of power would be around 500 Megawatt in next 3 years time frame.
4. This could rise to 1000 MW if the enhancement in other infrastructure is also taken into account.

Private Sector may also be invited to set up the independent power plants of 500-1000 MW capacity.

 Action:  PSEB / Power Deptt.

(c) CONNECTIVITY:

1. Road connectivity:

To provide approach road to the notified IT areas.

1. Development of Banur - Kharar road. It is the function of State Government.
2. Internal roads in NITA. These can be done after EDC is taken.
3. Create more linkages between SAS Nagar & Chandigarh.
4. Strengthening and widening of Kharar-Banur road.
5. Strengthening and widening of road connecting Mohali-Kharar road to sectors dividing 72-75, 67-80, 66B-82 up to 82A
6. New construction of 4-lane road connecting sector 82 to Zirakpur-Banur road and then continuing upto Zirakpur Ambala road (about 10 kms).
7. New construction of 4-lane road as a bypass from sector 39-Chandigarh to take the traffic beyond Kharar on the Kurali road, this would be required to bypass the Mohali and Kharar traffic and also lessen the congestion for the local residents of Mohali and Kharar.
8. Construction of all major roads and round-abouts from sector 81-107 would require to be made by PUDA.
9. All roads should have a storm water sewer, Fibre optic cable for data & Voice communication, preferably underground power cables, water pipelines with water hydrants at appropriate places, street lights in the inhabited areas and help-line phone booths.

 Action:  PUDA / PSIEC 

2. Public Transportation 

The employees of the IT/ITES and BPO Industries normally work around the clock. Therefore, it is important to provide transportation so that they may also be able to attend the office in night shift.

It is also pertinent to mention that more than 50% of the BPO industry employees comprise of female employees. The Knowledge City should provide reliable means of transport from various sectors of Chandigarh and Mohali to Knowledge City. There should be free movement of Taxis and Public Transport Vehicles between Mohali – Chandigarh – Panchkula. 

 Action: Deptt. of Transport

3. Internet / e-Connectivity:

A number of private telecom operators like Reliance, HFCL, Hutch Telecom, Tata Indicom, Spice, Airtel have already invested a large amount in the telecom infrastructure in the State, besides significant infrastructure available with BSNL and VSNL. State has already approved Right of Way Policy to facilitate the operators to lay infrastructure. The following areas needs special attention in the Knowledge City:

1. Setting up of NIXI exchange.
2. OFC along all roads in NITA. The cost for this activity shall be borne by all the operators.
3. Telephone Exchange
4. OFC Exchange
5. Internet Bandwidth

 Action: Punjab Infotech / Industries Deptt./

 / Deptt. of I.T. 

(d) Human Resources Development

1. It may also be interesting to note that about 50,000 professionals seats are available every year for professional courses in the area in this northern hub including 30,000 engineers, 15,000 technicians and 5,000 MBAs. Out of these about 15,000 engineers pass out from Punjab. Thus we still have scope for enhancing the existing Technical Education network in the state with special emphasis to the quality.
2. In addition more than one lac English speaking graduates/ 10+2 pass out every year from the states of Punjab & Haryana and UT of Chandigarh. Out of these about 60,000 are from Punjab. This number is increasing every year and, therefore, the manpower for knowledge/ IT and Services/ BPO industry is available in this area at least for meeting the present requirement of Industry.
3. Establishment of National Institute of Information Technology to ensure the Knowledge based industries; they will be able to get the required quality staff. The Insitute will be established with the collaboration of Government of India (Ministry of HRD), State Government and Private Sector.

iv. To meet the human resources requirements of BPO Sector, Government Colleges’ infrastructure can be utilized for manpower development for soft skills, domain expertise. The private sector BPO companies shall arrange the curriculum and the staff for HRD. Chandigarh Administration is already conducting a Course C.Toss i.e. Test of Soft Skills for the BPO industry. The initiatives of Punjab Government will result in the development of manpower for BPO industry in association with the Industry.

 Teaching of English language for jobs in the BPO segment is also necessary. The Department of Higher Education needs to immediately take up language education in more than 250 colleges (Both Government and private) on a public private partnership model by creating a society and running these job oriented specialized courses on self sustaining basis without a financial burden on the Government. 

4. Similar exercise needs to be taken up at the school level. Vocationalization of school education is required to be taken on a large scale whereby IT related professional job-oriented courses are administered specially in class 11^th and 12^th in these schools.

Human resource is the backbone of I.T. Industry. The Government must ensure regular availability of the required human resources for training in the following areas:

1. BPO Industry through IT Societies
2. KPO which is a domain expertise
3. IT through existing ICT Society in School Education.
4. Computer Science & Engg.
5. Vocationalization of School Education. There may be new schemes to be funded through NRI’s, Industrial Houses, Government of India, etc.
6. Other Allied services. 

 Action: Deptt. of Higher Education / Pb. Infotech

(e) Development of Commercial, Hospitality and Entertainment Facilities:

1. The development of Sector 62 in Mohali should be speeded and all procedural hurdles removed to ensure that it emerges as a major center for commercial, cultural and ensure activity.
2. The policy on development of Leisure / Entertainment Parks in the periphery controlled area should be finalized expeditiously.

(f) E-Governance Initiatives for facilitation of Industry and its manpower

Mohali should be developed as a show case for the e-Governance initiatives of the Punjab Government by allotting special funds, if necessary.

(g) Bio-Tech / Pharma Industry Initiatives:

The Government of India has established NIPER as research center over an area of about 200 acres in Mohali. Another R&D Centre IMTECH is located in Chandigarh. Ranbaxy Lab. Is having its pharmaceutical R&D Centre and is expanding its activities in the areas of research in collaboration with USA based companies. R&D in pharma is an activity where value addition is quite substantial and also multiplier factor of job creation is large. 

To create a nucleus of research in the areas of Bio-tech / Pharma. The existing infrastructure in IMTECH / NIPER etc. can be explore for setting up of nucleus of R&D activity by the private sector companies as incubation centres.

(h) Upgradation of Chandigarh Airport

The Government should actively pursue the upgradation of facilities and connectivity at the Chandigarh Airport with the Union Government.