Why IT companies are looking to set up facilities in Andhra Pradesh

HYDERABAD: Andhra Pradesh plans to spare information technology companies from the crippling power cuts that all others are subjected to, an unprecedented step as the Congress government attempts to shore up the state's image as an investment destination which has been tattered by political instability and a separatist agitation. The proposed move, which has to be approved by Andhra Pradesh's electricity regulator, is the first such by any state in India.

The cost of special treatment for IT companies may not be very high for the government because the sector consumes about 6% of the state's electricity. But in terms of perception, it could be a winner because Andhra Pradesh is home to companies such as Microsoft, Google, Facebook, Tata Consultancy Services, Infosys and Wipro. At 53,000 crore, Andhra Pradesh is the fourth-largest software exporter in the country, accounting