1. V E N G I V E N T U R E S P R I V A T E L I M I T E D
A SNAPSHOT ON THE
PROPOSED IT CORRIDOR
AT ELURU

2. Sector Project Title
IT/ITES IT Park – Eluru
Indian IT Industry – A Snapshot
India is the world's largest sourcing destination for the information technology (IT)
industry, accounting for approximately 67 per cent of the US$ 124-130 billion market. The
industry employs about 10 million workforces. More importantly, the industry has led the
economic transformation of the country and altered the perception of India in the global
economy. India's cost competitiveness in providing IT services, which is approximately 3-4
times cheaper than the US, continues to be the mainstay of its Unique Selling Proposition
(USP) in the global sourcing market. However, India is also gaining prominence in terms of
intellectual capital with several global IT firms setting up their innovation centres in India.
The IT industry has also created significant demand in the Indian education sector,
especially for engineering and computer science. The IT-BPM sector which is currently
valued at US$ 143 billion is expected to grow at a Compound Annual Growth Rate (CAGR)
of 8.3 per cent year-on-year to US$ 143 billion for 2015-16. The sector is expected to
contribute 9.5 per cent of India’s Gross Domestic Product (GDP) and more than 45 per cent
in total services export in 2015-16.
Investments
Indian IT's core competencies and strengths have attracted significant investments from
major countries. The computer software and hardware sector in India attracted
cumulative Foreign Direct Investment (FDI) inflows worth US$ 20.42 billion between April
2000 and December 2015, according to data released by the Department of Industrial
Policy and Promotion (DIPP).
Seed and venture capital funds made investments worth US$ 3.4 billion this year, three
times the investment made last year. VC funding to the IT & ITes sector amounted to 55
per cent of total VC funding made this year.
Road Ahead
India is the topmost off-shoring destination for IT companies across the world. Having
proven its capabilities in delivering both on-shore and off-shore services to global clients,
emerging technologies now offer an entire new gamut of opportunities for top IT firms in
India. Social, Mobility, Analytics and Cloud (SMAC) are collectively expected to offer a US$ 1
trillion opportunity. Cloud represents the largest opportunity under SMAC, increasing at a
CAGR of approximately 30 per cent to around US$ 650-700 billion by 2020. The social
media is the second most lucrative segment for IT firms, offering a US$ 250 billion market
opportunity by 2020. The Indian e-commerce segment is US$ 12 billion in size and is
witnessing strong growth and thereby offers another attractive avenue for IT companies to
develop products and services to cater to the high growth consumer segment.

3. Vengi Ventures Private Limited
Company
Corporate Address
Key Promoters
VENGI VENTURES PRIVATE LIMITED (“VVpL”)
Incorporated in June 2015
23B-5-2/3, “EDARA SQUARE”, Edaravari Street, R.R.Pet, Eluru – 534
002, West Godavari District, Andhra Pradesh (India)
Sri E.V.R. Prasad, S/o. Sri Edara Venkataramaiah, aged 58 yrs. did
schooling from The Hyderabad Public School, Hyderabad and
Graduated from Badruka College of Commerce, Hyderabad. He has
over 3 decades of experience in Printing and Publishing since 1978
and successfully publishing “COMPUTER QUEST” as a Quarterly, in
English from Eluru to promote Computers and Information
Technology in the state of Andhra Pradesh.
Sri E. Venkat Rama Rao , B.Tech M.S. Bits Pilani S/o. Sri E.V.R.
Prasad
Project Description
To take advantage of the growing IT sector and its fast expansion to Tier II & III cities in
India; the location; and concentration of talented pool of budding engineers, VVpL wants to
develop globally competitive IT cluster by creating best-in-class infrastructure and assist the
major city of ELURU in becoming next IT hub of the sunrise state of Andhra Pradesh. In
accordance with this vision, this project envisages the setting up of an IT park at Eluru
Eluru city is the Head Quarters of West Godavari District in Andhra Pradesh. It is a Class I
city and was once the capital of Vengi Empire. Eluru is well connected by Road, Rail, Air and
Sea. It is on the National Highway 5 (Chennai – Kolkata), is equidistant from Hyderabad /
Visakhapatnam and is one hour away from the proposed capital city “Amaravathi”, Andhra
Pradesh. The nearest Airport is Gannavaram Airport (Vijayawada) about half an hours drive.
It is also on the main railway route on the Chennai – Kolkata line. As such it is well
connected and ideally located.
As per the recommendations of the 13th Finance Commission, the Centre proposed to
release funds to the state for developing Eluru as one of the Smart Cities in the country.
There are six engineering colleges and other institutions in Eluru providing education in
engineering, science and other professional courses.

4. Project’s Value Proposition
• Land identified for development
• Construct the infrastructure as per plan conceptualised
• Utilise, Market and lease out the property of the park
• Special policy initiatives
• Low man-power cost for construction
• Other advantages will include employment generation to several IT
professionals across the State and Country.
Eluru – Value Proportion for IT Inductry
Land Cost advantage
Operating cost advantage
• On an average, a 30% operating cost advantage over the leading IT cities
• On an average 70% of revenue is operating costs for companies working in IT /
ITeS sectors in major IT cities
• Establishing the same company in Eluru would help them bring their operating costs
down by up to 30%
Connectivity and Social Infrastructure
• Air connectivity to Mumbai, Delhi, Kolkatta, Bangalore, Hyderabad, Chennai,
& all major cities in the Country with access to International flights.
• Rail connectivity to all major cities
• Excellent Public transport facilities
• Strong educational infrastructure for K12 to doctorate
Telecom & Internet Backbone
• Presence of optical fibre lines for faster connectivity
• Presence of public & private players like BSNL, Bharti, Tata, Reliance etc.
ensure complete connectivity and service.
Policy Initiatives
Consequent on the re-organization of the State, the Government of Andhra Pradesh
revisited the existing policy Initiatives and made them more attractive to suit the current
and future requirements of the new State of Andhra Pradesh.
The current IT policy “AP IT Policy 2014-2020”, being an umbrella concept provides lucrative
incentives for setting up industries in all locations in the State. The Policy aims to enable the
Government and citizens to take advantage of the cutting-edge technologies like SMAC
currently and those that emerge in future.
The Policy lays emphasis on the development of state-of-the-art infrastructure, more
specifically, Mega IT hubs, EMCs, ITIRs, IT Layouts/Parks, and Innovation sectors, through
Public Private Partnership mode with conducive incentives and felicitations.

5. The policy, is based on key four pillars, namely, Human Capital, Infrastructure,
Incentives and above all, a system of Good Governance. The policy envisages abundant
investment opportunities for the industry, employment generation and enhancing
productivity and competitiveness.
The policy initiatives taken by the Government in these four areas are as follows:-
1. Human Capital:
• Changing Course Curriculum
• Credits for Online Courses
• Faculty Upgradation
• Establishment of Premier Institutes
• Mandatory Apprenticeship
• Skill Enhancement by MSMEs
• Recruitment Assistance
• Innovation Policy
• e-Literacy
2. Infrastructure:
• PPP for IT Infrastructure: The facilities, in the form of IT Towers, IT Parks and IT
Zones, shall be developed adopting a transparent PPP policy.
The following principles will form part of such a policy:
a. For each project, APIIC shall select a partner, who can be a developer or a
consortium of developers and the industry players, through a bidding process
involving QCBS method.
b. The responsibility of marketing the facilities created shall be with the selected
partner. The Government shall provide such promotional support as needed.
c. Appropriate relaxations will be provided from the zoning regulations and land
usage conversions, subject to environmental safeguards.
d. Relaxation to AP Building Rules would be considered, subject to the payment of
City Level Infrastructure Impact Fee and clearances from Fire Services, Airport
Authority and conformance to the National Building Code and statutory
regulations.
e. The principles of green buildings, green IT, e-Waste management, Walk-to-Work
and Cycle-to-Work shall be followed while designing the facilities.
Other Critical infrastructure:
a. Assured Power: Andhra Pradesh has recently been selected as a pilot State to
implement the scheme of 24x7 power supply. Within a span of 5 years, the
Government intends to make the State power surplus. As an interim measure,
the ICT industry would be exempt from the purview of statutory power cuts.b. S
b. Social Infrastructure: A multi-departmental mechanism would be established to
improve the social infrastructure in the cities selected to be developed as IT
Hubs

6. 3. Incentives:
Incentives applicable to all categories of IT Industry
A) Non Fiscal Incentives
a) ICT industry would be exempt from the purview of the AP Pollution Control Act,
except in respect of power generation sets.
b) IT industry would be exempt from inspections under the following Acts and the
Rules framed there under, barring inspections arising out of specific complaints.
The IT units are permitted to file self-certifications, in the prescribed formats.
• The Factories Act 1948
• The Maternity Benefit Act 1961
• The AP Shops & Establishments Act 1988
• The Contract Labour (Regulations & Abolition) Act 1970
• The Payment of Wages Act, 1936
• The Minimum Wages Act 1948
• The Employment Exchanges (Compulsory Notification of Vacancies) Act 1959
c) General permission shall be available for 3-shift operations with women working
in the night for IT/ITES Units/ Companies, subject to the IT units taking the
prescribed precautions in respect of safety and security of employees.
d) IT/ITES Units/ Companies and non-hazardous hardware manufacturing industry
are declared as essential service under AP Essential Services Maintenance Act.
e) An empowered ‘Consultative Committee for the IT Industry’ would be formed
with the representatives of industry and the other stakeholders. The CCITI would
administer the incentives in a speedy, time-bound and transparent manner.
f) Land Allotment: Allotment of Government land or land held by APIIC for
industrial development, to the IT units shall be governed by the following
principles.
• The land allocation for IT Industry will be as per GO Ms. No:571, Revenue
(Assgn.I) Department, dated:14/09/2012.
• The land allotment would be based on the business proposal and the
investment capacity of the company/investor.
• A rebate on the cost of the land will be provided @ Rs. 60,000 per employee
to the Mega IT Projects (defined below) and Rs. 40,000 per employee for
other IT projects, subject to maximum of 80% of the land cost as determined
by the allotment agency. Prescribed guaranties would be taken from the
sponsors of the project for the rebate.
• Units for which land is allotted on a rebated cost, shall ensure that the
facility to be created shall be adequate to provide space for 500 IT
professionals on every acre of land.
• Only the IT units with IT employee strength of a 100 will be eligible to be
considered for allotment of land.

7. • CCITI is empowered to consider the eligibility of the applicant based on their
track record, business proposal in terms of employment to be created, office
space to be built, investment to be made and viability of the project
proposal.
• The Conditions of allotment, extent of land to be allotted, employment to be
created, office space to be built, investments to be made and timelines shall
be incorporated in the MOU/ agreement to be signed with the applicant-
company.
• Sub-leasing of the space created for IT employment, under a scheme of
incentives would be permitted in the IT Layouts/IT Towers to synergise
collaborations and enhance IT employment, subject to the condition that
such sub-leasing shall be only in favour of only any other IT company.
B) Fiscal Incentives
a) IT industry shall be eligible for 100% reimbursement of the Stamp Duty, Transfer
Duty and Registration Fee paid on sale/ lease deeds on the first transaction and
50% thereof on the second transaction.
b) IT Units classified as MSME shall be eligible for 25% subsidy on power bills for a
period of 3 years from the date of commencement of commercial operations or
Rs. 30 lac whichever is earlier.
c) IT Units established by SC/ST & Women Entrepreneurs shall be eligible for 50%
subsidy on power bills for a period of 5 years from the date of commencement
of commercial operations or Rs. 50 lakhs whichever is earlier.
d) New IT/ITES units, after coming into commercial operations will be entitled for
100% exemption on Electricity duty for a period of 5 years.
e) The cost of filing patents will be reimbursed to the companies having their
headquarters in Andhra Pradesh, subject to a limit of Rs. 5 lakh (0.5 mil) per
domestic patent awarded and Rs. 10 lakh (1 Mil) per international patent
awarded.
f) IT Units shall be eligible for reimbursement of 20% of expenditure incurred for
obtaining quality certifications for CMM level 2 upwards, subject to a limit of Rs.
5 lakh (0.5 mil). Similar reimbursement will be made to BS 7799 for security and
also for ITES Companies for achieving COPC and eSCM certification. The IT/ITES
units/ companies can claim this incentive only once. In addition, this incentive
may be extended to other certifications based on the recommendations of the
CCITI.
g) Government will support IT Exporters Associations, ITsAP, NASSCOM, ELIAP,
STPI, IEG, or any such organisation (as decided by CCITI) for conducting surveys
and/or research on trends in technology, market intelligence or on other work
useful to the IT Industry.
h) Government shall promote and encourage participation in various national and
international events by the industry and by leading a Government-industry
business delegation to the identified Exhibitions and Conferences. Government
would also undertake various promotional events and roadshows at various
locations from time to time.

8. 4. Governance of IT Policy:
a) A highly empowered ‘Single Window Clearance Unit’ will be created and
operationalized for granting approvals & clearances for setting up New IT Units
and for expansion of the existing IT units in the State. It would be supported by
state-of-the-art centralized help desk on 24x7 basis duly leveraging the e-Biz
portal set up by GoI. The objective of this window would be to reduce time to
set up business and reduce cost of doing business.
b) The following procedural reform would be undertaken with an aim to provide
approvals to the industry/ investors within 4 weeks.
• Integrated Application for all permissions
• Escort Officer to be assigned the responsibility for getting approvals
• Escalation at various levels and regular monitoring
c) An empowered Mission would be established to give a fillip to the development
of the sector and take faster and agile decisions. The mission would be headed
by a Technocrat and would have 3 Experts in Electronics & IT, 2 Academics and
an expert in Marketing & Promotion.
d) All IT Industrial Areas/IT Lay Outs/Zones/Corridors, including Electronic
Manufacturing Clusters (EMCs) and ITIR delineated processing areas of APIIC in
the State shall be accorded the status of Industrial Authority Local Area (IALA)
immediately so that the execution and maintenance of IT Industrial areas shall
be effectively planned, executed and implemented by APIIC in the interest of
promotion of Information Technology Sector. All statutory clearances to IT
Parks / IT Campuses constructed by IT Infrastructure Companies / builders /
developers and IT/ITES Industry/Companies/Units for own use on lands allotted
by APIIC in their Industrial Local Area Authority, would be given by APIIC.
Project Specification
VVpL is conceptualising and planning the project and is in the process of appointing the
Technical Cosnultants.
Project location: The promoters have already identified about 15 acres of land for the
development of IT park on Vijayawada-Gundugolanu section of NH-5 about 50 kms from
Vijayawada and 3 kms from Eluru.
Proposed facilities / capacities
• IT park with workspace of 50,000 sq. ft
• Another 2 lac sq. ft of construction can be done
• Cyber estate for IT companies (along with support infrastructure of uninterrupted
power, fibre optic backbone & internet connectivity)
• Information corridor for start-ups
• Common support infrastructure – Business centre, convention hall, library
• Social infrastructure – Convenience stores, medical centres, Bank & ATMs,
travel & courier centre
• Recreational infrastructure – Gym, recreation hall, food court etc.

9. Business model
• VVpL will build the park.
• The entire investment will be funded through equity. For this purpose, VVpL is
scouting for interested equity partner/s. The ientire investment is brought in by the
equity partner.
• VVpL to lease out working, common and other infrastructure to IT companies and
other concerned operators
• VVpL to earn lease rent, maintenance charges and amenity charges from the
property leased out
• Major cost is the cost to develop world class infrastructure and its subsequent
upkeep and maintenance
Investment and expected returns:
Investment
Land (15 Acres of Land) INR 350 Million
Construction Cost
(50,000 sft as per plan)
INR 225 Million
Expected Returns
Lease Rentals per annum
(INR 40 per sft per month)
INR 24 Million
EBIDTA INR 18 Million
*Every 2 years there will be jump of rental income by 20%.
Detailed project report is under preparation and will be forwarded once interest is
evinced.
Project Contact
Mr. E.V.R. Prasad
23B-5-2/3, “EDARA SQUARE”,
Edaravari Street, R.R.Pet, Eluru – 534 002,
West Godavari District,
Andhra Pradesh (India)
Mobile # +91 8812 230098; +91 8008405443