Karnataka is on course to achieve IT exports of Rs 90,000 crore in the current fiscal, Chief Minister B S Yeddyurappa said here while announcing an investment promotion subsidy to give a push to semiconductor industry.

Addressing 'Bangalore IT.Biz', an annual, state-sponsored technology event, he said the state registered IT exports worth Rs 38,000 crore in the first six months of the current fiscal.

"We are confident of reaching Rs 90,000 crore IT exports (for the entire 2010-11)," Yeddyurappa said.

In 2009-10, the state had recorded IT exports worth Rs 74,929 crore.

Yeddyurappa said with a view to attract semiconductor businesses to tier II and III cities in the state, the government has taken an in-principle decision to extend an investment promotion subsidy to semiconductor units in Mysore, Mangalore and Hubli-Dharwad. "Orders in this regard will soon be issued," he said.

He said the government is considering the inclusion of telecom in the proposed IT new policy being formulated, as mobile telephony is bound to be the next growth engine for the rural economy.

He said the proposed IT Investment Region (ITIR) project at Devanahally, on the outskirts of Bangalore, is expected to create four million jobs and attract investment worth Rs 1 lakh crore.

The ITIR will be an integrated township catering to the IT and ITeS sectors, as well as electronic hardware manufacturing industry.

Karnataka IT Minister Katta Subramanya Naidu said the acquisition of 2,000 acres of land for the ITIR has begun and the process of securing the remaining 8,000 acres would start soon. "It's the biggest IT project undertaken anywhere in the country," Naidu said.

Naidu also revealed that Karnataka and Israel are set to sign an MoU in the area of semiconductors.

Naidu said the MoU is aimed at sharing of technology and cooperation on R&D between the two countries.