Wednesday, December 10, 2008

SOUTHERN DISTRICTS LOOK TO SEZS FOR DEVELOPMENT

Chennai, December 10, 2008
Economic Times (Chennai edition)

Tamil Nadu, one of the highly industrialised states, is finding it a challenge to invite investments due to lack of infrastructure. The only exceptions are the IT services companies which are ready to begin work on their facilities at the IT parks and SEZs built in different districts of the state.

Automotive companies are reluctant to set up shop in the southern districts due to insufficient infrastructure. Speaking at SPEED (southern prosperity through enhanced economic development) ‘08, organised by CII in Madurai, Ashok Leyland managing director R Seshasayee said, “It is important to provide incentives to develop social infrastructure like hospitals and schools in the southern districts.” TVS Motor CMD Venu Srinivasan said “it is possible for industries to develop integrated townships and satellite towns outside such tier-II towns. That would help them and at the same time develop infrastructure”. With FDI flow slowing down and MNCs delaying their expansion, the districts are looking to industrial giants for big-ticket investments.

They are pinning their hopes on IT parks and SEZs promoted by the government. Of the nine IT SEZs in various stages of development in Tamil Nadu, three in Madurai and Tirunelveli districts have received approval. These three SEZs occupy 750 acres and are expected to generate 1,10,000 jobs directly in the next five years. Of this, 314 acres are reserved for development, while 140 acres have been allotted to IT companies.

Construction at the two IT SEZs in Madurai started last weekend. They have been allotted to IT majors like HCL, Honeywell, Sutherland etc. Honeywell, which has had a captive centre in the Madurai Thiagarajar college campus for a long time, has 80% of its employees from the surrounding districts. Its attrition is less than 7%. There are IT SEZs notified or approved in Coimbatore, Tiruchirapalli, Salem and Hosur, apart from three SEZs in and around Chennai

0 comments: