Thaindian News

Chennai, March 20 (IANS) In an effort at equitable economic growth across the state, the Tamil Nadu government is encouraging industrial and IT investments in areas other than Chennai and its suburbs, said Finance Minister K. Anbazhagan here Thursday. Presenting the budget for 2008-09, he announced four special economic zones (SEZ) for (a) transport engineering goods at Gangaikondan, Tirunelveli district on 255-acre; (b) automobile and auto spare parts at Cheyyar, Tiruvanamalai district on 255-acre; (c) 263-acre engineering goods at Perunthurai, Erode; and (d) leather sector in 260 acres at Ranipet.

According to him, so far 32 SEZs have been approved in Tamil Nadu and 29 of them have been notified by the central government.

“Efforts are being taken to establish multi-product SEZs at Nanguneri in Tirunelveli district, Krishnagiri, Perambalur and Ennore,” he said.

Anbazhagan also declared that the state government would pay careful attention to the livelihood security of farmers when establishing the SEZs.

He said the state would offer the same tax concessions enjoyed by industrial units investing Rs.3.5 billion ($86.6 million) in Chennai, Kanchipuram and Tiruvallur districts to those setting up industries in other places at an outlay of Rs.2.5 billion.

The government is also promoting tier II cities as the destination of IT companies.

IT parks are being set up in Coimbatore, Madurai, Trichy, Tirunelveli and Salem. Companies establishing IT parks have been allotted land and SEZ status has been obtained for them.

“A new IT park will be set up in Vellore by ELCOT (Electronic Corp of Tamil Nadu) in partnership with the private sector in the coming financial year,” Anbazhagan said.

He added that Tamil Nadu Cements Corp would double its capacity at an outlay of Rs.820 million.