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Our Bureau

Chennai, Sept. 26 The Tamil Nadu Government will adopt a new industrial policy, which would be formally announced soon, and allocate land for IT and ITES companies in tier-II cities. These were among the decisions taken at the meeting of the Cabinet on Wednesday, according to an official press release.

The Tamil Nadu Cabinet decided to implement the new industrial policy, which has been under the consideration of the Government. The Chief Minister, Mr M. Karunanidhi, is expected to release the policy in less than a week.

To encourage investments in IT and ITES in smaller cities, the Government has decided that it would allocate land in the tier-II cities to IT and ITES companies through the Electronics Corporation of Tamil Nadu (Elcot).

Companies such as HCL Technologies, Honeywell International India Services, Tessolve Services, SGT India, Satyam Computer Services, Sutherland Global Services, Cognizant Technology Solutions, and Zenith Software will be allocated land to set up facilities in Madurai, Tiruchi, Salem and Tirunelveli.

Land would also be allotted on a 90-year lease in the Elcot-promoted IT SEZ at Sholinganallur, Kanchipuram. Companies such as Sify Ltd, Sutherland Global Services, Cognizant Technology Solutions, and Scope International will be allotted land through the tender system, the release said.

According to officials, companies with an established presence in Chennai are expanding to tier-II cities. This helps generate jobs across the State and benefit the companies as they can take advantage of the lower costs involved in smaller cities.

Tessolve, a solution provider for semiconductor chip manufacturers, for instance, is setting up a manufacturing facility near Chennai. It is likely to set up a second facility for software in one of the tier-II cities.

The Tamil Nadu Government had announced in the budget that it would announce a new industrial policy to attract investments and generate jobs. The State Government had last announced an industrial policy in 2003 and followed it up with guidelines for sanction of a structured assistance package for investments exceeding Rs 300 crore in 2005.

In February 2007, it also formulated a new category, super mega projects, for sanctioning incentives to investments exceeding Rs 1,500 crore in fixed assets within a five-year period.

The new policy is expected to build on these and in addition address issues relating to speeding up and expediting clearance procedures for new projects.

More Stories on : Industrial Policy | Infrastructure | Tamil Nadu

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