TN Unveils Policy To Fuel ICT Growth

The Tamil Nadu government has unveiled an ambitious Information and Communication Technology policy, aimed at increasing its domestic market share from the present 11 percent to 25 percent by 2011 with an aim to provide an additional three million jobs.

Tamil Nadu at present enjoys a share of $5.7 bn of the total Indian ICT production market of $51 bn and aims to increase its domestic share to 25 percent with a host of initiatives to provide a big boost to the sector.

Neighbouring Karnataka, with Bangalore as the IT hub, contributed $12.5 bn in 2007.

The new Tamil Nadu policy aims to generate three million additional jobs, including an estimated total of eight lakh direct jobs out of ICT, seven lakh out of ICT services and one lakh in ICT manufacturing.

The policy also provides tax incentives for investors, as per which new IT-ITeS, as well as expansion units investing between Rs 5 crore and Rs 50 crore and employing more than 100 direct workers would be eligible for a capital subsidy of Rs 30 lakh and electricity tax exemption for two years.

This exemption would increase up to five years if new IT-ITeS companies invested Rs 200 crore and employed more than 400 direct workers, it said. (PTI)