Elcot to go ahead with Tier II SEZ

Despite the slowdown in the IT sector, the Electronics Corporation of Tamil Nadu (Elcot) would go-ahead with the development of special economic zones (SEZs) planned at seven Tier II cities across the state, said Elcot managing director Santhosh Babu.

The corporation feels this is the right time to develop SEZs since companies would look at cost-effective places and eventually turn up in Tier II cities.

Speaking to Business Standard, Santhosh Babu said the proposed SEZs in Madurai, Tiruchirapalli, Tirunelveli, Salem and Hosur would be developed and owned by Elcot. It would be rented or leased to software companies. The corporation is planning to invest Rs 15 crore in each IT park to create a 50,000 sft facility of its own.

Six companies have shown interest in setting up facilities in Gangaikondan at Tirunelveli while nine companies have applied for the Tiruchy SEZ. These proposals have been forwarded to the state government for approval.

In Tirunelveli, the government has allotted 10 acre to Sutherland Global Services Ltd. It has reserved 50 acre for US Technologies, 25 acre for Syntel International, five acre for Global Software Solutions Ltd, two acre for ntelob Technologies and one acre each for AES Technologies(I) and Maruthi Computers, according to Elcot’s website.

The total available land at Tirunelveli is 500 acre and costs around Rs 15 lakh an acre. The cost of land in Tier II cities is 60 per cent cheaper than Tier I cities, Babu said.

The SEZs in Salem and Hosur are awaiting land price approval from the Project Investment Committee. Three companies have shown interest in Salem and Hosur, which enjoy close proximity to Bangalore. “Common infrastructure work such as internal roads, storm water drains and chain fencing will be completed by the end of this year,” he added.

The government has started floating tenders for the civil as well as common infrastructure work for the Elcot buildings in the five cities.