Industries minister Nirupam Sen inaugurated an office in the Bantala IT hub on Tuesday, hailing its potential to create jobs and generate income even as the stench of chemicals from the adjoining leather complex hung heavy in the air.

The office of Cognizant Technology Solutions has come up in a 130-acre special economic zone, carved out of a 1,200-acre leather complex in Bantala. The IT park has failed to take off because of infrastructure problems.

Aware of the problems being faced by the companies that have bought space in the SEZ, the minister on Tuesday announced that Rs 107 crore would be spent to tackle the odour.

“A company called Ramco Environment has been identified to renovate the existing common effluent system and construct and maintain two additional systems and a solid waste management facility,” said Sen.

“The government has not been able to provide the infrastructure needed by the IT industry to function in a leather complex,” he added, admitting that he was not convinced that a tech hub could co-exist with tanneries.

“The investors here have faced lot of problems. Even the Cognizant authorities complained that their employees were reluctant to come here because of environment and infrastructure concerns.”

The minister claimed the construction of additional common effluent systems would solve the problems but few were convinced about that.

“The four existing common effluent systems are adequate but are not operating to capacity. The project needs stricter norms and supervision by the environment and industries department, which has turned a blind eye to the norm-flout here,” said an engineer at the leather complex.

Seventeen IT companies, including Cognizant Technology Services, Tata Consultancy Services and Tech Mahindra, had acquired land in the complex, which is being touted as an IT hub by the state government since 2006.

Cognizant president and managing director R. Chandrasekaran had expressed disappointment over the operational challenges at Bantala.

Environment minister Jairam Ramesh had deplored the coexistence of an IT hub with a leather complex during a visit to Calcutta.

The odour is just one problem the companies face. “The condition of Basanti Highway, the only link to the tech hub from the city, is pathetic. The single-lane state highway has been encroached upon. The only transport options are the Sunderbans-bound buses. Security on the highway is a major concern,” said an official of a company that has acquired land in the hub.