Andhra Pradesh Thursday said it would substantially reduce elecricity tariff for the information technology (IT) and IT enabled services (ITES) next year to give a boost to these sectors.

"We reduced electricity tariff by four percent this year and from April next we will substantially reduce it," Chief Minister Y.S. Rajasekhara Reddy said at a function here.

Promising full government support to the two sectors, he said adequate infrastructure would be developed in the state.

A separate infrastructure and investment department has been set up to prepare a plan.

"We plan to develop 10 airports (airstrips) and the Hyderabad international airport will be ready by 2007," Reddy said.

He was speaking after inaugurating Hongkong and Shanghai Banking Corporation's (HSBC) second group service centre for providing superior services to its customers worldwide.

The centre, the fifth in India, was inaugurated at the Hitec City, Madhapur, in the presence of John Bond, Group Chairman, HSBC Holdings plc.

Appreciating HSBC's efforts, he urged the company to also look towards other cities, especially Tirupati.

"Tirupati is not only the second largest pilgrim centre in the world after Vatican but also offers good human resource and infrastructure. You would also gain the advantage of being in the proximity of Bangalore, Chennai and Hyderabad," Reddy said.

Speaking on the occasion, Bond said international companies were moving to countries having good technology and communications where they can work effectively.

"But without human talent, technology is of little value. India, particularly Andhra Pradesh, has human talent in abundance and we are pleased to open a number of Group Service Centres in India," he said.

Bond said HSBC had 10,000 employees at its centers at Hyderabad, Visakhapatnam, Bangalore and Koltata.

"These highly qualified professionals are providing customer services to HSBC clients in US, UK, European Union, Middle East and other Asian countries," he said.

The new facility with a capacity of 3,500, would also act as a centre of excellence. It has residential training facility where bank employees from its centres worldwide will be trained on a special module developed in collaboration with the British Council.

The eight-week residential course will equip students with professional English language listening and speaking skills.

Bond also inaugurated a new building for a government-run school at Madhapur built by HSBC Group Service Centre and Larsen and Toubro.