TN plans road shows to boost IT investment in state

Total investment by government agency Electronic Corporation of India in these SEZs to be around Rs 532 crore

PTI | August 8, 2011



In its bid to make Tamil Nadu a global IT hub after its success in attracting automobile majors, the state government has plans to conduct road-shows across the state in coming weeks to attract more investors to Information Technology special economic zones (SEZ).

At present, eight IT-SEZs are being set up at Sholinganallur near Chennai, Coimbatore, Madurai (two SEZs), Tirunelveli, Tiruchirapalli, Salem and Hosur. Total investment by government agency Electronic Corporation of India in these SEZs would be around Rs 532 crore.

Santhosh Babu, Principal Secretary, state Information Technology department said, "We will be conducting road shows in various parts of the State. This will be to attract the companies looking to expand their presence in Tier-II cities."

Babu, earlier ELCOT Managing Director, said these kind of initiatives would attract more employment in rural areas, resulting in people not traveling to major cities for a job. Though road-shows are mainly considered for "marketing purposes", it would also help act as a platform for companies looking to expand their presence in Tier II locations,he said.

In the recent budget announcement, Tamil Nadu Finance Minister O Panneerselvam said the state has already become a global destination for IT and ITeS companies.  "Huge infrastructure was created in Tier II cities which will be put to full use by aggressively marketing available space to potential IT companies", he had said, adding government would continue to facilitate growth of IT and ITeS firms.

Sources in ELCOT said the eight SEZs, once fully operational, would provide direct and indirect employment to 7.70 lakh in the next five years, besides attracting Rs 11,800 crore investment.  The previous DMK government had reduced the total revenue requirement to Rs five crore from Rs 50 crore to attract more firms in these IT-SEZs.

Prior to this initiative, only companies which reported revenue of Rs 50 crore per annum were given preference to set up units in the IT SEZs. However, it was later modified to those companies which reported Rs five crore revenue.

IT Minister R B Udhayakumar paid his first visit to some SEZs -- Tiruchirapalli, Tirunelveli and Salem in State and inspected the ongoing works. It is understood that he had warned companies who have been allotted land to commence operations or face action. Asked about it, Santhosh Babu said the announcement had come against the backdrop of many companies having evinced interest for space in the SEZs but were yet to commence operations.

ELCOT Managing Director Atul Anand said they were "charting out" ways and means of promoting these SEZs. "Yes, yes. right now we are discussing about it. It will be released very soon," he said. An ELCOT official said in Sholinganallur SEZ alone, land had already been alloted for IT majors like Wipro (80 acres), HCL (50 acres), Satyam (50 acres), Sutherland BPO (15 acres) and Cognizant (20 acres). According to industry experts, IT exports from Tamil Nadu in 2010-11 stood at Rs 40,000 crore.

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