The cabinet committee on economic affairs today approved a proposal to create information technology investment regions (ITIRs) to attract investments. The concept of ITIRs was evolved in view of the need to boost the growth of both IT / ITeS and electronic hardware manufacturing (EHM) units in the country.

In order for these regions to become magnets for major investment and create employment and economic growth in the area, they have been conceived to provide sound infrastructure and other amenities, backed by strong investor-friendly policies. Simultaneously, these regions are expected to reduce the pressure on existing urban centers by enabling growth of new townships and dispersal of industry.

The ITIR regions could include new integrated townships, SEZs, industrial parks, etc, and generate direct and indirect employment during the construction and operational phases.

Each ITIR is expected to be a specificlly notified investment region with minimum area of 40 sq.km. planned for IT / ITeS and EHM units, with a minimum processing area of 40 per cent of their total.

The state government where such ITIRs are located would be responsible for the availability of physical infrastructure and utilities within its jurisdiction, while the centre would facilitate development of national highways, airport and rail links to the ITIRs.

To be developed on a public-private partnership basis, with state governments will select the developers / co-developers through a transparent process.