Tamil Nadu unveils new ICT Policy with focus on start-ups, Green IT

State govt is setting up ELCOSEZ, an IT and ITeS Special Economic Zone in Chennai, Coimbatore, Madurai, Tiruchy, Salem, Tirunelveli and Hosur to attract investments

The Tamil Nadu Government has announced a new Information Communication Technology Policy, 2018.

Chief Minister K Palaniswamy said that this policy will address the aspirations of investors, especially IT and ITeS companies, MSMEs and start-ups by way of provision of standard administrative incentives, discal incentives, capital subsidies, tax exemptions, and special incentives, among other things.

It also has provisions for incubating start-ups and creating Research Parks. Awards for promoting Green IT industry and single-window facility for early clearance from concerned agencies form part of this policy.

The value of information technology (IT) and IT-enabled services (ITeS) exports from Tamil Nadu, southern India’s third-largest exporter in the segment in recent times, grew 8.55 per cent in 2017-18 over a year earlier to Rs 1,111.79 billion. This is a significant pick-up, given that the state, facing a decline since 2014-15, had reported a modest three per cent IT-ITeS export growth rate last year.

Industry leaders from Tamil Nadu said the state’s exports in the segment had been growing at a higher rate than the national average, which was a good sign for industries in the state. The IT industry’s average growth rate for India, according to industry body Nasscom, is around seven per cent.

According to the latest policy note for the information technology department, the state government has said that the exports from Tamil Nadu have grown to Rs 1,111.79 billion (estimated), up 8.5 per cent from Rs 1,024.15 billion in 2016-17, when they had grown 3.3 per cent from Rs 990.95 billion the previous year.

The estimated investment in IT and ITeS grew to an estimated Rs 399.81 billion during 2017-18, from Rs 367.04 billion the previous year. In 2015-16, investments had been to the tune of Rs 299.98 billion, according to the government.

Among southern and south-western states of India, Karnataka was the top exporter of IT products and services (worth Rs 2,025.94 billion in 2016-17), while Maharashtra was the second (Rs 1,215 billion) and Telangana fourth (Rs 851.76 billion).

The Tamil Nadu government is setting up ELCOSEZ, an IT and ITeS Special Economic Zone in Chennai, Coimbatore, Madurai, Tiruchy, Salem, Tirunelveli and Hosur to act as the destinations of choice for attracting investments in the segment within the state.

Land has been allocated to various companies, including Wipro, HCL, Ford Motors, Cognizant Technologies Solutions, Sutherland Global Services Ltd under these SEZs and these companies are operating with thousands of employees working from these facilities.