Tier-2 towns in Tamil Nadu like Madurai, Coimbatore and Trichy were identified as the future of the IT industry. But a year after earning the tag of preferred it destinations, these cities have not started housing many players. Even with it companies bending backwards to cut costs, there are apprehensions about shifting offices to these towns. The complaint is poor infrastructure.
Tamil Nadu government has been touting the towns as the most preferred industrial destination, but there seems to a feeble will and little groundwork to actually make those towns attractive.
The proposed Tidel park in Coimbatore, which was to be operational by 2008, has been delayed due to issues between the contractors and the state government.
Sources say the Madurai SEZ, where a large plot of land was brought by the erstwhile Satyam computers, might also be delayed.
Nasscom says the economic slowdown has also stalled growth in these towns.
Som Mittal, Chairman, NASSCOM said “This is the year which was full of elections, and our focus was different. But we have given our presentation to the government and they have heard us but now I think they need to act on it.”
One can only hope that the state government will act on these presentations, and speed up the process of developing these smaller towns, making them attractive to IT companies. But till then, IT companies will have to rough it out in the big cities, where high costs continue to threaten strong bottomline growth.
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