Features

Business in Bhubaneswar: Leading the way

15 Nov 2016 by Neha Gupta Kapoor
Bhubaneswar

Bhubaneswar, the capital of Odisha in East India, looked sleepy to me. It lacked urgency in movement that one would expect in a city, which has much going on for its economy. Signal junctions aren’t exceptionally congested, buildings are stout, neighbourhoods are sparsely populated, the nearest general store or public transport can be a good walk from home; and barren lots of land, though occupied with labour, weren’t under drastic machining activities at the time of my visit.

Yet, Bhubaneswar is one of the first planned Indian cities that opened for India’s Smart City Mission (SCM) in June 2016. This is how it works: exactly a year before June, states shortlisted cities they reckoned would be suitable for SCM. Those selected were asked to submit a proposal outlining their “bold vision, pan-city initiative and area-based development plan”. They were further assessed on feasibility of the proposal and its cost-effectiveness, estimated turnover on achieving its goals, citizen participation, strategic plan, and so on. This means, cities with practical land usage, basic infrastructure and operational practices in place, and those that don’t require much financial aide in repairing damages and adopting beneficial measures stood a better chance.

The most important parameter that has a dedicated form to itself seeks details of the city’s participation in Prime Minister Modi’s ‘Swachh Bharat Abhiyan’ (Clean India Mission). The mission draws attention to slum sanitation, a basic necessity and a primary concern in India. Bhubaneswar’s submitted form states: “As per the census 2011, the population of Bhubaneswar was 8,37,737 with a total number of households estimated at 2,01,873. Of this total number, approximately 1,61,836 households were reported to have latrine facilities within premises, accounting for nearly 80 per cent of the total number of households.”

It is an impressive number, not achieved by even the major Indian metros, simply from the lack of trying. For example, in 2014, The Indian Express carried a story on one of South Mumbai’s housing societies for low income groups, where four families share one toilet; an average family consisting of ten members. Many others in the city share their plight.

According to Deepak Mohanty, director of Voluntary Action for Rural and Social Activities (VARSA), a government-recognised voluntary organisation, “About 43 per cent of Bhubaneswar’s total housing is categorised as slums and almost each house has its own facility — 96 per cent, if I may say so myself.”

In addition to sanitation, Bhubaneswar has outlined seven “Smart City Pillars” to help make it citizen-friendly and sustainable. Some of the basics under these include citizen participation in governance, effective water, power and waste management, providing basic sanitation facilities, convenient public transport frequencies, housing development projects, smart use of land, availability of education and health care to all, and wide IT connectivity.

INFORMATION TECHNOLOGY

The Odisha government had, between 2006 and 2008, invited IT companies to open offices in its capital city when India’s real estate prospects looked bright. At the time, a Government of India report released in August 2006 stated: “The overall growth in 2006/07 is projected to be in the narrow range of 7.8 per cent to eight per cent.” Finance, insurance and real estate formed about 14.3 per cent of the country’s overall GDP then.

Grabbing the opportunity, mainly because real estate was available at throw-away prices, IT companies such as Wipro, Tata Consulting Services, Tech Mahindra, and Infosys have invested towards Bhubaneswar’s development. DLF, one of India’s bigger real estate companies, owns 54 acres of land there, titled DLF Cybercity — 60 per cent is reserved for IT/ITES office spaces and the remaining for residential, retail and recreational use. International companies such as Accenture and IBM already have large office spaces in the DLF towers.

“It is a concept of ‘Work, Live, Shop’,” Rajeev Talwar, CEO of DLF tells me. Talking about the project, he elaborates, “We have invested nearly ₹200 crore into this (DLF Cybercity) and are planning to invest another ₹1,200 crore to complete over six million square feet of development in Bhubaneswar.” He doesn’t elaborate on the second project, but says that Cybercity will generate employment for over 25,000 people once completed. “When the Smart City Project will kick off in a major way, there will be a lot of interest from IT companies to set shop in Bhubaneswar. This should spur a demand for quality office/ IT, retail and residential spaces in the city, which we are developing.”

About a 15-minute walk from DLF Cybercity, down Technology Corridor road, is Info City, a Software Technology Park of India (STPI), managed by Orissa (Odisha’s former name) Industrial Infrastructure Development Corporation. Such parks are government-owned and being invited to function from there means enjoying benefits such as exemption from paying certain taxes and duty, receiving value-adds against select services and products, getting 100 per cent government support, and so on. The STPI in Bhubaneswar qualifies companies for the following as listed on the Info City website (idco.in):

• A Capital Investment Subsidy up to ₹10 lakh

• Sales Tax exemption for five years and Sales Tax deferment for seven years

• Electricity duty exemption up to contract load of 500 KVA

In 2006, the Odisha government had allotted 26 acres of Info City, Bhubaneswar’s IT hub, to IT giant Wipro; all in a bid to improve its economy through development of STPI. Wipro began construction in 2007, and by June 2016 it had in place infrastructure for over 1,800 employees, and a manpower of more than 300 personnel. The ultimate goal is to have a facility for 28,000 personnel. Though the forecast is impressive, Wipro is lagging behind Infosys, Tata Consultancy Services (TCS) and Tech Mahindra who already have fully functional campuses in Info City, thus attracting international players into the city.

To be fair, Infosys and Tech Mahindra have been the only major players in Bhubaneswar amongst small manufacturing units and retail outlets in the ‘90s. They were the first investors apart from the education sector after Bhubaneswar adopted economic liberalisation in 1991. This means, they’ve had a head start of eight years at the least.

Tech Mahindra has two campuses in Bhubaneswar, and is looking to invest in a third. It inaugurated its second IT block for 611 employees in 2014. A total of ₹55 crore was invested into this building in Info City from where it serves its Fortune 100 clients. The first one opened in 1997 on the outskirts in Infovalley, and has 500 workstations. Now the company is working on increasing its manpower to 5,000 and has revealed its plans to invest another ₹500 crore in Odisha over the next seven years.

Earlier still, in 2005, not even ten years in the city, and Infosys had revealed plans to invest in Bhubaneswar on a colossal scale. Infosys co-founder Narayan Murthy had announced: “Tier-II cities like Bhubaneswar will be the growth engines for the IT Industry in India. Infosys has taken a lead in this direction by investing more than ₹135 crore in its Bhubaneswar Development Centre (of which Info City is a part). We contribute approximately 80 per cent of software exports from the state (Odisha), making Infosys the largest exporter from the Bhubaneswar STPI. Realising the potential that the city has to offer, we plan to increase our headcount to over 4,500 over the next few years with an added investment of ₹100 crore.”

Today, Infosys Technologies in Info City has over 5,000 professionals from the IT and ITES sectors. The self-sufficient campus has food courts, lawns for racket games, a cricket ground, a jogging track. and dormitories to relax. It is opening a second campus shortly.

“Bhubaneswar has been acknowledged as the first Smart City of the country under the government’s ‘Smart City’ model list,” Talwar begins with the obvious when listing reasons for Bhubaneswar’s attractiveness to India’s key players. “This is the biggest sign of Bhubaneswar’s evolution into becoming a model city. Yes, it is still emerging on the world map as an IT/commercial destination, but Bhubaneswar has all the necessary infrastructure and cheap real estate, which is expandable and can be planned as required.”

In fact, Bhubaneswar has been one of the first planned cities in the history of India (along with Jamshedpur and Chandigarh) when German architect Otto Königsberger gave it a modern facelift in 1946. The refurbishment has since worked as a booster for its economic growth through investments as residential, commercial and industrial zones have been clearly demarcated, thus avoiding any unforeseen conflicts in this matter.

Under the Smart City Project, 985 acres near the railway station in the city centre is marked for redevelopment and retrofitting, which includes the above mentioned IT Parks. Bhubaneswar will receive government funds to support this development over the next five years.

HUMAN RESOURCES

As for manpower, Talwar doesn’t think families living in the neighbouring states would be unwilling to relocate to the city, including those from Kolkata. “Low cost of living is a major attraction no doubt,” he adds while drawing focus on its noteworthy pool of academic institutes. “Bhubaneswar is rich in resources and has quality manpower. It has numerous reputed educational institutions who churn out good graduates.”

All India Institute of Medical Sciences (AIIMS), Indian Institute of Science Education and Research (IISER), National Institute of Technology (NIT), and Indian Institute of Technology (IIT) in Odisha have been bestowed the ‘Institute of National Importance’ title by the Indian Ministry of Human Resources Development. Of these, AIIMS and IIT are in main Bhubaneswar city. Apart from these, KIIT University, Biju Patnaik University of Technology, Xavier Institute Bhubaneswar and Siksha O Anusandhan University are some others who are recognised for quality education in academic circles nationwide.

LIFESTYLE

While getting candidates is easy, there is much the city needs to invest in to improve the quality of life by building recreational centres. About a decade ago, when IT companies began launching in Bhubaneswar, builders deemed malls a good investment. Many came and many exited, leaving just one worth visiting — Bhavani. Don’t expect known national labels, as the occupants are in-house brands. There is a big Lifestyle shop too, but its stock is outdated compared to what’s available in the metros. The spending power of the city is still weak.

“Life in Bhubaneswar is simple if you compare it to that in Mumbai or Delhi,” says Lubhani Jain, retina fellow at LV Prasad Eye Institute, who has moved from Mumbai to the city for her specialisation in ophthalmology. “But once you meet the locals, you’ll feel welcomed as they’re refreshingly friendly. I’ve lived in Chennai too (also known for medical institutes), but it’s different here.”

Jain goes on to say that if you can look beyond the lack of stand-alone restaurants and cafes for an outing, Bhubaneswar is a pretty city with wide roads, greenery and beautiful attractions on the outskirts. “When you have a social circle, even a simple movie outing is good enough. Come to think of it, I’ve been able to watch all the Bollywood and Hollywood movies I’ve been looking forward to at Inox (a multiplex).”

There is an unhurried attitude of the people there, but they are also very welcoming to visitors at the same time. When asked if she would go back to the city, if not just for work, Jain replies, “Probably not. But I wouldn’t go as far as saying that I dislike it. Let’s just say it’s good while you’re there, but it’s a better life in the metros.”

AIRPORT

Bhubaneswar hasn’t been the most accessible city in India, up until recently. Air India, GoAir, IndiGo and Vistara operate domestic flights from the city’s Biju Patnaik International Airport (BPIA), with direct flights to Mumbai, Delhi and Kolkata. Of them, IndiGo has the widest reach, flying directly to more cities nationwide, and has further expansion plans.

As for international flights, BPIA doesn’t have direct international flights flying out of there. It does, however, have immigration and Customs counters to carry out the necessary paperwork for Air India passengers who have connecting international flights from New Delhi.

Foreseeing the growth that Bhubaneswar as a city is being set up for, Airports Authority of India (AAI) has given permission to Bhubaneswar’s Biju Patnaik International Airport (BPIA) to operate round the clock; until September 1, it was functional only from 6:30am to 10:30pm.

GETTING AROUND

Rickshaws don’t run by a meter. If you’re not a local, it would mean paying two to three times more. Hailing an Ola or an Uber is a safer option and they’re easily available.

Sun Temple, Bhubaneswar

GETAWAYS

Konark is just 65km from Bhubaneswar, on the coast of the Bay of Bengal. The major attraction is the 13th century Sun Temple that is also a World Heritage Site. Though most of the structure is in ruins, carvings on its exterior are well preserved. Hire a guide to know about its lengthy history, and that of Indian gods. You can also enjoy a picturesque sunset from its many steps that offer panoramic views of its manicured gardens.

Puri lies 60km south of Bhubaneswar and is pretty much a holy town with several temples populating it. The most revered of them all is Jagannath Temple, built in the 12th century as it is one of the four prime Hindu pilgrim sites that rank high in importance as per Hindu mythology. Non-Hindus are not permitted entry into the temple. Inside, it is crowded enough to raise safety concerns if not careful (read trampling). It’s an easy miss if you’re not highly religious for the priests can resort to force if you don’t move fast after glimpsing the idol inside. Instead, visit the other temples that are quieter.

Gopalpur is much like the Goa of the east. It doesn’t have much to boast of, except for its beach and an ancient fishing village. Visit the seashore in the afternoon to watch fishermen offload their catch into carts ready for the market. Needless to say, the seafood served in this part of the world is delectable to the last letter. A three-hour drive from Bhubaneswar, water sports and small resorts in the vicinity are other attractions to pull you away from the city for a quick weekend getaway or day trip.

EAT

The only options for a good meal in Bhubaneswar that I know of, is limited to these hotels:

Mayfair Lagoon is a beautiful hotel spread over acres of land, and one of the most highly recommended properties in Bhubaneswar. Nakli Dhaba has a North Indian menu, Kanika specialises in Oriya delicacies, Lemon Grass is an oriental restaurant, Mamma Mia is a cafe and bakery, Tea Pot is the 24-hour restaurant, and Super Snax for a casual bite are dining options. Bars on the property are Baron & Baroness and The Cellar. mayfairhotels.com

Swosti Premium is known for its banqueting facilities. There are four dining options. Panorama is a buffet restaurant that serves Punjabi, Bengali, Mughlai, European and a multi-cuisine mix on different days of the week. It’s best to check the menu with the hotel. Chandan has a broad selection of Indian dishes, and on Sundays you may enjoy the Ghazal Evening. Confucius is the Chinese restaurant and Rob Roy is the bar on the property that prides itself on its cocktails. swostipremium.com

Trident from the Oberoi Group of Hotels, serves international cuisine at The Restaurant that has a vegetarian and seafood menu to choose from. Chandni is more local in its flavours, and The Bar, usually quiet, has a good selection of alcohol. tridenthotels.com

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