TN mulls IT parks in Coimbatore, Hosur

Investment likely to be about Rs 80-100 crore

Tier 2 and tier 3 cities in Tamil Nadu are set to get a fresh fillip with the state government mulling an investment to the tune of Rs 80-100 crore to set up software parks in Coimbatore and Hosur.

"We are considering a 2,50,000 sq ft software park in Hosur, which will be modelled on the Tidel Park in Chennai. This will create a lighthouse effect, as it will boost investor confidence there. In Coimbatore too, a similar software facility is likely come up in the next one year," said Vivek Harinarain, secretary-IT, government of Tamil Nadu.

"The development of tier 2 and 3 cities needs a shot in the arm if Chennai wants to escape the same infrastructure virus that has debilitated Bangalore. The task, however, is quite daunting as Hosur's contribution to Tamil Nadu's overall software exports of Rs 7,643 in 2003-04 crore was zero, while Coimbatore's was a dismal Rs 45.96 crore," he said.

Electronics Corporation of Tamil Nadu (Elcot) and Confederation of Indian Industry (CII) are to conduct a joint study to plug the holes that are proving to be obstacles to Hosur's true potential. In Coimbatore, about 30 acres of land is to be reassigned to the IT department so that it can develop it into an IT park.

"The land belongs to the health department at present and is to be reassigned to the IT department. The valuation for this has been fixed and accepted by the government," said Harinarain.

Elcot has requested the government for a payback pattern, wherein it will repay the government as the land gets sold. The companies that have already requested for land to be allotted include HSBC, Wipro, TCS and KG Info Systems.

Software Technology Parks India (STPI) plans to set up a park in Hosur. The Tamil Nadu government has been requested for land to be allotted for the building by the Union ministry of IT and Communication.