Elnet Tech to increase IT park space

Elnet Technologies will further increase its IT park space from the present 2.05 lakh sq ft to about 4.50 lakh sq ft by mid-2006.

It has transferred the business development rights of 2.44 lakh sq ft facility that is yet to be developed to a wholly owned subsidiary company-Elnet Software City- for a consideration of Rs 16.9 crore.

"We have taken an in-principle decision to exploit the extra floor space index that is available. A detailed business plan will be drawn up in the next 15 days to a month's time, based on a market survey that we are doing. There is a huge demand and supply gap for high quality space," said a company source.

He refused to divulge further details of the project including the cost, design and market available saying that these will be made available once the internal study is complete.

Also, he pointed out that the decision to build to suit one large customer or several small and medium businesses had not been taken.

Elnet Technologies is a joint venture between Electronics Corporation of Tamil Nadu, which holds the majority stake with 89 per cent with New Era Investments holding the rest of the equity.

Elnet built its first IT park in 1994 of 1.4 lakh sq ft space on 3.34 acres in Taramani on the outskirts of Chennai at a cost of Rs 13 crore. This facility was further augmented recently by 65,000 sq ft, all of which has been taken by Calsoft and Sify.

Elnet has also promoted a BPO park at Perungudi, through another subsidiary called ETL Infrastructure Services in which it holds a 26 per cent stake.

The decision to set up the wholly owned subsidiary was approved by the members at the annual general meeting (AGM) of the company held on May 7, 2005.