Dell paid Rs 40 lakh per month as rent | chandigarh | Hindustan Times
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Dell paid Rs 40 lakh per month as rent

chandigarh Updated: May 31, 2014 09:27 IST
Hillary Victor
Hillary Victor
Hindustan Times
SAS Nagar

Two days after US-based information technology (IT) giant, Dell, announced its closure in SAS Nagar, it has come to light that it was paying a monthly rent of Rs 40 lakh for 1,80,000 square feet area in SAS Nagar to Shapoorji Pallonji group, a Mumbai-based business conglomerate in real estate, which owns the building.

According to sources, the company would have to pay five times the amount for the same space if they shift to other campuses in Bangalore, Hyderabad and Gurgaon.

Meanwhile, local entrepreneurs claim that the reason for their exit was not because of the company’s global rightsizing exercise, but because SAS Nagar did not have the required infrastructure to invite or retain big IT companies in the city.

Speaking to Hindustan Times, on the condition of anonymity, a senior officer of the IT department, Punjab, said, “Punjab government lacked in providing a conducive ecosystem for the growth and sustenance of IT industry.

State government also failed to implement their notified policy. Though it got a positive response from Progressive Punjab summit, the real challenge lies in how to retain the companies which will come up at IT Park.”

Taking a dig at Punjab Infotech, Sanjeev Vashisht, managing director (MD) of Lambodra Infotech, SAS Nagar, said, “Punjab infotech, which is a nodal agency to promote IT and IT- enabled services in Punjab, is running sick from the past six years.

Resultantly, the IT industry has suffered badly.” In order to meet their expenses, they are retrospectively changing allotment policy by imposing hefty charges against the spirit of industrial policy, which is sending a negative signal to IT industry, he said, further adding, “As far as exit of Dell is concerned, it is not because they are suffering globally, but because SAS Nagar lacks infrastructure to retain big IT companies in the city.”

When contacted, Manjeet Singh Rai, chairman of Punjab Infotech, said, “The exit of Dell from Punjab is a major setback to the IT sector and I will soon hold a meeting with the officers concerned in this regard.”