Fintech, IT and Industrial Cities Coming-up in Tamil Nadu

Tamil Nadu Finance Minister P T Palanivel Thiagarajan (PTR) announced during the Budget session that a fintech city will come up in Chennai, which will be developed in two phases at Nandambakkam and Kavanur. The first phase will be developed at Nandambakkam at an esti

BY Realty Plus
Published - Tuesday, 17 Aug, 2021

Fintech, IT and Industrial Cities Coming-up in Tamil Nadu

Tamil Nadu Finance Minister P T Palanivel Thiagarajan (PTR) announced during the Budget session that a fintech city will come up in Chennai, which will be developed in two phases at Nandambakkam and Kavanur. The first phase will be developed at Nandambakkam at an estimated cost of Rs 165 crore. Further, a separate Fintech Cell will be formed to facilitate the establishment of Fintech companies in the state. “The establishment of Tidel Park in Chennai in 2000 by Muthamizharignar Kalaignar fuelled the growth of the OMR (Old Mahabalipuram Road) IT corridor. Tidel Parks will now be established in tier II and tier III towns across Tamil Nadu, and in the first stage at Thoothukudi, Vellore, Tiruppur and at Thiruchitrambalam in Villupuram district,” it was further announced. Tidel Park was set up in Chennai in the year 2000 for the growth of Information Technology in the state. It was established as a joint venture between Tamil Nadu Industrial Development and Investment Corporation Ltd (TIDCO), and Electronics Corporation of Tamil Nadu (ELCOT). It houses more than 40 companies, including TCS, Infosys, Verizon, Satyam, Sify, Cognizant, HCL Tech, Accenture, Cisco, and EY, among others. New SIPCOT (State Industries Promotion Corporation of Tamil Nadu) parks will also be created in industrially backward districts such as Thiruvannamalai, Dharmapuri, Tirunelveli, Virudhunagar, Sivagangai, Villupuram, Namakkal, Theni and Nagapattinam, PTR announced in the budget. A committee chaired by Dr N Sundaradevan, IAS (Retd), has been established to study the financial, infrastructural and other issues faced by MSMEs (Micro, Small and Medium Enterprises) in Tamil Nadu and suggest measures to enable them to thrive. The government said it will launch a state level Credit Guarantee Scheme to enable more MSMEs, particularly micro enterprises to access credit. A digital data driven credit rating system for MSMEs will be established to enable financial institutions and new age fintech companies to lend more to MSMEs based on their business potential. Further, TAICO Bank will be repurposed to enable lending to MSMEs. The state government said, "It will handhold MSMEs, which want to raise equity capital from stock exchanges, and the cost of listing up to Rs 30 lakh will be borne by the government. The government will also launch an innovative scheme where MSMEs and their creditors will be facilitated to reach an agreement on restructuring their liabilities."