Karnataka expects IT exports from the state to touch Rs 1 lakh crore in the current financial year, a key official of the state government said today.

Karnataka recorded IT exports of about Rs 85,000 crore during the 2010-11 financial year.

"IT in the state is growing at about 22 per cent and we hope to touch Rs 100,000 crore of IT exports during the current fiscal," State IT Department Principal Secretary M N Vidyashankar told PTI here.

IT companies, including MNCs, that have set up shop in Karnataka find the talent to be of global standards, he noted.

Research and development activities have increased tremendously, he said, adding that a greater number of companies are expanding their operations and hiring young talent in the state.

"The IT industry in Karnataka has provided direct employment to about eight lakh persons, which is expected to touch nine lakh by 2012," Vidyashankar said.

He said the government is taking the necessary steps for initiating the tender process for selection of a Master Developer for the proposed Information Technology Investment Region (ITIR) project in the state.

The ITIR, an integrated IT city covering a geographical area of about 40 sq km, is proposed to be developed in the vicinity of the Bangalore International Airport, near Devanahalli. The state government would take up the project in two phases, he said.

"In the first phase, about 2,000 acres of land would be acquired. The project would be developed on a PPP mode. The ITIR project is expected to attract investment of over Rs 1 lakh crore, with potential employment of about three million," Vidyashankar said.

He also said the government has submitted a proposal to the Centre for establishing an Indian Institute of Information Technology at Dharwad, in North Karnataka, under the PPP mode through a partnership between the government of India, state government and industry.

Officials said the state government had already allotted 50 acres for the proposed campus.