Oracle wary of high real estate cost

Computer 'big' boy Oracle Corporation has threatened to look for cheaper real estate if the State Government does not lower floor space prices in Cyberabad.

The State Government offered Oracle office space at Rs10.5 million per acre in its high profile 150-acre Cyber Towers, but Oracle claimed Bangalore offered space at Rs3 million, Chennai and Pune at Rs1.5 million, a worried AP Industrial Infrastruc-ture Corporation officials said, revealing the IT company wanted five acres floor space.

Oracle did not quote but let the State Government decide the cost, a decision the latter has kept unresolved for eight months.

Agilant, a Hewlett Packard subsidiary, also showed interest in Cyber Towers recently but was unable to negotiate a friendly land price. In 1997, the government sold space to Wipro and Baan at Rs1,282 per square yard or about Rs5 million per acre.

The floor prices were marked up following the success of Cyber Towers and government subsidies given to companies hiring more workers, an offer not available to Oracle as it does not fall in this category.

Chief Minister Chandrababu Naidu as a result may have to decide whether Oracle may be allowed to look for greener pastures in arch rival Bangalore, hurting his own on-course plans of making Cyberabad a popular IT destination or, reduce floor space rates and face Opposition criticism as a result.