Nearly a decade has passed since Infosys initially sought land for a second campus in Bangalore in 2001, and despite receiving approval for land acquisition in 2006, the company may ultimately abandon plans for another campus in the state of Karnataka. Hindered by bureaucratic delays, Infosys’ first modern campus in Bangalore might be its final venture within the state. The proposed second campus on Sarjapur Road faces potential abandonment due to prolonged government approvals and unfulfilled promises, coupled with the requirement for Infosys to develop its own support infrastructure, resulting in a 10 percent increase in costs.
Expressing frustration after years of anticipation for the state to address the issues, Infosys is contemplating shelving its Sarjapur campus proposal in Bangalore. Ramadas Kamath, Senior Vice President and Head of Infrastructure at Infosys, highlighted concerns about inadequate road connectivity and water supply, issues the government pledged to address but has shown no positive signs of progress. In an interview with CNBC-TV18, Kamath stated, “We are waiting and watching.”
Infosys initially planned to invest close to Rs 1,000 crore in the first phase of its Sarjapur campus on 60 acres. However, unwilling to endure further delays, Infosys is exploring the expansion of its operations outside Karnataka. Similarly, sources at Wipro, another major IT player in India, revealed their willingness to invest close to Rs 500 crore in phase 1, encompassing 34.43 acres (or 1.5 million sq ft), but they too await government clearances.
The government’s sluggish approach has prompted IT majors like Infosys and Wipro to consider other states for expansion. West Bengal, with its lower prices and more abundant land availability compared to Gujarat, has become an attractive option. Last month, the West Bengal government approved Infosys’ plans for a second campus in Rajarhat, and Wipro is also eyeing expansion in the same region. With both companies looking at opportunities in Tamil Nadu and Andhra Pradesh, the delayed response from the Karnataka government may provide other states with the chance to seize these lucrative opportunities.
