If we are willing to setup an industry or expand a company, the selection of a suitable area is very important. Last year we had a discussion comparing Pune and Hyderabad. There was a question.. In-spite of having many advantages like it being close to the Financial Capital of India - Mumbai, it being a city which has got full support from the state government, it being the 'Detroit' of India (Automobile capital) etc.. why Pune has always been the third choice for IT companies after Bangalore and Hyderabad. Why are many companies concerned about setting up very big branches in Pune, Vizag and many cities of North India?
The reason is Pune, Vizag, Chennai and various parts of North India are not 100% safe as per the India Meteorological Department.
This department has divided India into various zones based on the probability of getting earthquakes. It is believed that, India is driving into The Asian Continent by a distance of 47 milli meter every year. This is the main reason behind such high frequency and intensity of earthquakes India will be susceptible to in the coming years . Almost 54% of the Indian mainland is vulnerable to earthquakes. India is divided India into various seismic zones (Zone 1, 2, 3, 4 and 5). According to this, Zone 5 expects the highest level of seismicity whereas Zone 2 is associated with the lowest level of seismicity.
This zoning information is very important for any organization and individual since it enables a better form of disaster preparedness. However, we cannot predict the political issues that may arise and get prepared to face the disasters that will be caused by them even if we choose the best place.
The reason is Pune, Vizag, Chennai and various parts of North India are not 100% safe as per the India Meteorological Department.
This department has divided India into various zones based on the probability of getting earthquakes. It is believed that, India is driving into The Asian Continent by a distance of 47 milli meter every year. This is the main reason behind such high frequency and intensity of earthquakes India will be susceptible to in the coming years . Almost 54% of the Indian mainland is vulnerable to earthquakes. India is divided India into various seismic zones (Zone 1, 2, 3, 4 and 5). According to this, Zone 5 expects the highest level of seismicity whereas Zone 2 is associated with the lowest level of seismicity.
Zone 5:
All the North-Eastern States, Himalayas, Northern Gujarat, Rann of Katch, Srinagar come under this Zone. This is highly prone to earthquakes. This zone is called the Highest Damage Risk ZoneZone 4:
Delhi, Patna, Bihar, Jammu, Parts of Saurashtra in Gujarat, Mumbai (few parts) fall under this Zone. This zone is called the High Damage Risk Zone.Zone 3:
This zone is classified as Moderate Damage Risk Zone. Pune and surrounding areas, Vizag, Western Ghats, Eastern Ghats, Bhopal, Lucknow, Andaman and Nicbar Islands, etc come under this zone.Zone 2:
This zone is classified as the Low Damage Risk Zone. Parts of Orissa, Tamil Nadu, many parts of central India come under this category.Zone 1:
This zone has very less risk.. in fact negligible risk. Hyderabad, Bangalore, Raipur, Jaipur come under this zone. However, the new classification has removed the concept of Zone 1 since these are not earthquake prone regions.This zoning information is very important for any organization and individual since it enables a better form of disaster preparedness. However, we cannot predict the political issues that may arise and get prepared to face the disasters that will be caused by them even if we choose the best place.

nice one!!! I am Sowmya Reddy's friend.
ReplyDeleteAgreed the geographic conditions of a location are taken into consideration while establishing a firm. However,I beg to differ if you classify it as 'Main' reason. According to me,the important factors that help to set-up a company are Tax holidays offered by the government, accessibility to international airport & availability of skilled/unskilled manpower.
ReplyDeleteTwo tiers cities like Pune and Vizag boasts of major manufacturing establishment but are late birds to the IT ventures. The Special Economic Zones(SEZ) is attracting investment(unless, someone like Mamata Banerjee opposes it:-p)
A nice piece of information..!! Good going..!!!
ReplyDeleteHello Friend (Real World - Sowmya's friend)... Thanks a lot for your time...
ReplyDeleteHello Rahul..
You are correct..
Investors are facing problems these days.. Telangana Agitation in AP,
Naxalism in the East,
Mamatha in WB,
MNS in Maharastra,
Ever unstable government in Karnataka and the list goes on... We cannot stop them for sure...
Will try to get nice points on these things in coming days...Thanks :)
Hello Mahesh,
Thank you for your time.. :)
good one :)
ReplyDeleteconveys sensible info
--Aravinda
Hello Aravinda..
ReplyDeleteThank you :)
Atleast after reading the comments , i realized that no where in India, Indians are safe ... No-where in India, Investors feel 100% assured and safe enough to invest ...
ReplyDeleteThanks for the facts Badri and Rahul
superb!!!
ReplyDeleteHello Rama,
ReplyDeleteThank You for your time...
You are correct... no where in India investors are safe :)
Hello Srichakra,
Thanks :)