IT sector outlay up, post offices to be upgraded

With a focus on creating infrastructure, the outlay for telecom and information technology sectors has been hiked in the FY2014 budget presented on Thursday while the outlay for telecom has gone up by 47%, the IT & electronics department’s outlay has jumped 40%. Finance Minister P. Chidambaram has also allocated Rs 532 crore for the IT modernization of post offices that are gearing up to offer core banking services.A major part of the outlay in the telecom sector has been earmarked for rural telephony and for rolling out optical-fibre networks, which are the main highlights of the new telecom policy. In addition, Rs 2,180 crore has been earmarked for setting up the defence-cable project. For the IT sector, the focus has been on creating a more robust network for cyber security given the increasing threat from hackers. There is also an increase in the outlay for a “national knowledge network” aimed at connecting top educational and research institutes across the country.Presenting the budget, the Chidambaram said: “Post offices will become part of the core banking solution and offer real time banking services. I propose to provide Rs 532 crore for the project in 2013-14”. The total project cost approved by the government is Rs 4,909 crore. Losing out to the private sector, the department of post has started deploying modern technology solution to develop core banking capability across post offices. As part of the upgrade, it has set target of March 31 to computerize all departmental post offices. DoP has appointed Ernst and Young to prepare detailed project roadmap for setting up of Post Banks and the report is expected to be in place by April. Chidambaram has also proposed setting up of technology incubators and linking them to the corporate social responsibility initiatives of a company.

Source: The Tribune