Hyderabad, June 4 (IANS) The Andhra Pradesh-Shenzhen joint incubation centre and smart city innovation hub will come up in the coastal city of Kakinada in Andhra Pradesh, it was announced on Saturday.
A letter of intent for setting up the incubation centre was signed here on Saturday by the state's information technology, electronics and communication department and ZTESoft, a fully owned subsidiary of the ZTE Corporation, a leading Chinese telecom provider.
AP Shenzhen joint incubation centre and smart city innovation hub will be an 85:15 venture between Innovation Society of the Andhra Pradesh government and Qianhai Authority/ZTE Soft. While the state will invest Rs 13.60 crore, ZTESoft will invest Rs 2.40 crore over a period of three years.
Andhra's Information Technology Minister Palle Raghunath Reddy said the incubation centre will generate employment for 670 people directly and 2,500 people indirectly in next three years.
He said that Kakinada, which is one of the top 20 candidate cities announced by the central for development as smart cities, is an ideal location to host the incubation centre and innovation hub.
The centre with world-class technology startup ecosystem will train 600 professionals every year and incubate 94 companies.
ZTE Soft Technology Pvt Ltd and Qianhai Authority have proposed a three-year programme working with Andhra's Innovation Society to establish the talent and support infrastructure.
The centre will also facilitate other Chinese investments in the state. As part of this effort, Andhra would open an extension office in the Qianhai innovation centre.
It will also provide support to raise Rs 1,000 crore investment Afrom the Chinese government towards developing Kakinada vizag corridor as the Shenzhen coastal corridor.
Shenzhen, one of the biggest and most successful industrial zones in the world, contributes almost 20 per cent to the Chinese economy.
Kakinada is Known for rich coastal resources and excellent institutional framework. Chief minister N. Chandrababu Naidu has expressed his intent to develop Kakinada as 'Shenzhen style' coastal economic zone.
