Sun Microsystems Inc is to set up a software development facility in India, according to Reuters. The unit will develop operating systems management, compilers, toolkits and network management for Sun systems. The location will be settled in three month’s time from a possible five cities: Bangalore, Madras and Hyderabad in the South, or Noida and Gurgaon on the outskirts of New Dehli in the North. Sun has three other software development centers, two in the US and one in Ireland. Sun set up a wholly-owned subsidiary in India last month, where it saw sales grow 26% for the financial year ending June 30.