S.M. Krishna, chief minister of southern Karnataka state, of which the IT hub Bangalore is the capital, said his government would also control the haphazard growth of the information technology industry.

"We understand that infrastructure is the backbone of the industry and we are striving hard to provide the best of infrastructure in Bangalore to attract industries," he told foreign and Indian delegates at the inauguration of India's premier IT event, BangaloreIT.com.

"A sizable expanse of land has been identified for an IT-corridor for regulating the successful and scientific growth of knowledge-based industries," Krishna said.

Indian software tycoons have taken the state government to task over frequent power blackouts and the poor condition of roads.

India's third largest software exporter Wipro Limited recently said it would put its expansion plans in the city on hold until uninterrupted power was restored.

Krishna said the government had set up a Hardware Task Force to frame a "comprehensive policy for the hardware sector".

"It (the task force) will soon come out with a policy and is also moving ahead with the setting up of a Hardware Technology Park," Krishna said.

Bangalore is facing intense competition from the neighbouring states of Andhra Pradesh and Tamil Nadu who are trying to promote their respective capitals, Hyderabad and Madras, as the IT destinations.

The southern state of Kerala has also recently announced a series of concessions for global corporations to woo IT projects.

More than 1,000 foreign companies have set up shop in Bangalore due its large pool of cheap and skilled manpower.

About a dozen countries including the United States, Britain, Hong Kong, Japan and Russia are participating in the five-day showcase event.

SPACE.WIRE