Andhra Pradesh state IT Minister Palle Raghunatha Reddy told the media that the state government is planning to request the Centre to de-notify the special economic IT Zone in Gannavaram for taking possession of Medha IT Towers located there. The state government want to shift number of its offices into it from Hyderabad soon as it has a carpet area nearly 1.7 lakh sq. feet and is having all necessary infrastructure. The three member committee constituted by the government found that 5000 employees can easily and comfortably work in the Medha IT Towers, which was actually built for IT Companies by previous government. It proximity with Vijayawada city is also another advantage.

However, currently around 250 employees of three IT Companies are still working in Medha IT Towers. Hence, the state government has to provide them alternative before de-notifying the zone. State government is asking them to move to Visakhapatnam which is ear marked as IT hub. But, if the companies move out from the special economic IT zone, they will lose the tax and other subsides.

So, the state government has to compensate that loss also. APIIC officials are reportedly negotiating with those three companies. Once, they are prepared to move out, then the state government can ask the Union Commerce Ministry to de-notify the special economic IT zone in Gannavaram and take possession of Medha IT Towers.