The Cabinet Committee on Economic Affairs (CCEA) has approved the setting up of Information Technology Investment Region (ITIR) near Hyderabad at an investment of around Rs 2.19 lakh crore.
The ministries of road transport and highways, urban development and railways will initiate a detailed feasibility study of the project, an official release said on Friday.
Of the total investment, IT and Information Technology Enabled Services (ITeS) sectors will attract investments of Rs 1.18 lakh crore and the Electronic Hardware Manufacturing (EHM) sector Rs 1.01 lakh crore.
The major investment will be through public-private partnership (PPP) model.
The ITIR is expected to generate direct employment of 14.8 lakh and indirect employment of 55.9 lakh.
The Andhra Pradesh government has delineated an area of 202 sq km for the ITIR in three clusters - Cyberabad Development Area and its surroundings, Hyderabad Airport Development area and Maheshwaram in the south of Hyderabad, and Uppal and Pocharam areas in eastern Hyderabad.
The ITIR will be implemented in two phases. The phase-I will span from 2013 to 2018 and phase-II from 2018 to 2038.