Sunday, October 11, 2009

IT investments go up in smaller cities of TN

Source : Times of India

Chennai: Not just depending on tech biggies to drive investments into tier II locations, the Tamil Nadu government is pushing ahead with its plans to allot land to second generation IT companies. In a first, 11 tech companies would get land allotment letters from deputy chief minister MK Stalin on October 22 when the ELCOT Special Economic Zone (SEZ) is inaugurated in Tiruchi.

According to sources, BPO company Sutherland has already been allocated 10 acres for setting up a development centre in Tiruchi. Besides, Zylog Systems, Vishwak Solutions, Unlimited Innovations and Take Solutions from Chennai would be allotted five acres each. Last Peak Data from Kolkata, Integra Software from Puducherry, Assyst International from Ernakulam and embedded software and services company from Bangalore – iWave Systems — would also be allocated five acres each.

Elcot is setting up nine SEZs across the state, including Tiruchi. Two are coming up in Sholinganallur near Chennai and Madurai, one each in Tirunelveli, Salem, Coimbatore, Hosur and Tiruchi. The arrival of tier-II companies in Tiruchi amidst signs of a general economic revival is seen as a harbinger of IT investments growing beyond Chennai and Coimbatore in the smaller cities across the state. The presence of skilled manpower and the availability of land are seen as contributing factors for this resurgence.

“Clearly, it is a great set-up coming up at the new SEZ. Tier I companies are expanding elsewhere in the state, but we have received good support from tier II companies. Santhosh Babu, managing director, Elcot (the state government’s technology investments facilitation arm) said. Professional workforce a big lure in tier II locations

Chennai: In a move to get more revenues from investments in tier II locations in the state, the government is planning to allot land to second generation IT firms. The presence of competent workforce and land availability are seen as the significant factors for the revitalisation of investments in tier II locations in the state.
‘‘After land allocation is done, these companies would start constructing their facilities and the only condition is that they have to start software exports in three years’ time,” Santhosh Babu, managing director, Elcot (the state government’s technology investments facilitation arm) added.

After the first round of land allocation (letters for some 60 acres would be issued), the remaining area in the Tiruchi SEZ would be about 80 acres.
Located at Navalpattu, the Tiruchi SEZ is spread across 147.61 acres, of which 123.23 acres have been set aside for SEZ activities and 24.28 acres for non-SEZ. This is probably the only tech park in a tier II town which is close to the airport. The Tiruchi international airport is less than 10 km from the SEZ and the presence of a large residential hub promoted by Tamil Nadu Housing Board (TNHB) close to the SEZ makes it all the more attractive.

“The allocation of land to tier II companies clearly shows smaller towns are growing in the state. Tiruchi as an IT destination has the right infrastructure, and investments made here by companies can be scaled up rapidly,” K Purushothaman, regional director, Tamil Nadu, NASSCOM (the software developers’ association), told The Times of India.

Once the Tiruchi SEZ gets inaugurated on October 22, Elcot hopes to push companies to Tiruchi. “Companies which were holding back investments due to economic recession are showing first signs to invest in creating infrastructure. In our view, 2010 would be a watershed year for tech investments in the state and we would be ready with infrastructure, to capture all these” Babu added.

Companies that would function at the ELCOT Special Economic Zone to be inaugurated in Tiruchi

Zylog Systems Limited I
ntegra Software Services
Last Peak Data
Health Plan Systems
Vishwak Solutions
iWave Systems
Vision Tech Solutions
Unlimited Innovations
Assyst International
Take Solutions



  1. Anyone have any idea about the background of the companies coming to Trichy IT park?

  2. Most of them look like small ones..they said CTS is going to come long back and it is not in the list here

  3. Truly, this will help only Real estate business and no serious IT growth in Trichy.

  4. I heard Wipro bought huge land nearby somewhere. If infrastructure development speeds up,the big companies will follow soon

  5. We hear so many news Wipro and other companies but everything remains rumour.Anyway Trichy infrastructure is improving and hope some big companies come here.

  6. Any reason why big companies are hesitant to come to Trichy? When big companies can come to Madurai why can't it come to Trichy? What is Trichy lacking?

  7. Lets leave ELCOT and Politics.Why IT majors not considering their own building in Trichy? What is that we are lacking?

  8. We lack nothing....sure in near future all big companies will try to build their own building....hope my beautiful city Trichy becomes a IT hub.....bye and take care all Tiruchian friends