The Hindu : Tamil Nadu News : Industry hoping for renewed thrust on IT corridor

Online edition of India's National Newspaper
Wednesday, May 31, 2006

Tamil Nadu

Tamil Nadu

Industry hoping for renewed thrust on IT corridor

V. Jayanth

Suggests creation of development authority to provide all services Suggests creation of development authority to provide all services

NEARING COMPLETION: The first phase of the IT corridor is getting ready at Taramani. — File photo

CHENNAI: The IT and ITES sectors are looking forward to a new thrust, from the Central and State Governments, on the promotion of the IT corridor along Old Mahabalipuram Road.

The recent statement by Union Information Technology and Communications Minister Dayanidhi Maran, suggesting the extension of the corridor beyond Siriseri, up to Mahabalipuram itself, has raised hopes in these units. There is also the expectation that more IT and BPO firms will consider setting up facilities in and around the city, if this proposal gets a concrete shape soon.

Focussed development

Sources in the IT sector say that with Chief Minister M. Karunanidhi holding both the Industries and IT portfolios and his nephew Mr. Maran looking after IT at the Centre, a much more focussed and concerted development of the IT and ITES sectors can be expected in Tamil Nadu.

Welcoming the suggestion to extend the IT corridor, as it was envisaged earlier, up to Mahabalipuram in one go, the sources say the best way to take the project forward will be to set up an IT Corridor Development Authority that can provide all services under one roof and take all the responsibilities for the proposal.

"Instead of letting the Chennai Metropolitan Development Authority or a task force or separate agencies to deal with various aspects of the project, a unified authority can make things simpler and easier for both the Government and the industry," explains a spokesman of the Confederation of Indian Industry.

He says hundreds of individuals and small development groups have bought small parcels of land along the corridor and up to Mahabalipuram. It will not be viable to let development of either IT units or housing or other services take place in bits and starts. "The best option is for an authority to take hold of the entire stretch, buy up all the land along the corridor and plan its entire development. Within the corridor, we need a bit of zoning, so that housing and recreational facilities can be kept away from the office space and commercial complexes. The authority can then allot land through a transparent bidding process for development of all these facilities. Only then can there be hope for some planned development. Land prices are already soaring in the area," the spokesman says.

Siriseri project

controversy

IT sources are also wary of the controversy surrounding the Siriseri housing development project, involving a Singapore firm. The court case and subsequent developments have thrown cold water on similar proposals in the pipeline.

For that reason, a unified authority, with representation from the Government, the industry and utility agencies, has the potential to remove the misgivings and ensure a transparent decision-making process for the development of the corridor. Now that the Special Purpose Vehicle set up by the State Government and its Road Development Corporation to lay the IT Corridor Expressway has made concrete progress in the first phase of its work, it can be entrusted with the task of acquiring and completing the entire stretch up to Mahabalipuram, the sources argue.

This need not wait for other developments. For these and a host of other burning issues concerning industry and trade, the chambers of commerce and the industry sector are hoping that the Chief Minister will soon find the time to initiate a continuing dialogue with them.

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