Tamil Nadu, one of the leading industrial states in India, is not only well linked by all means of transport but the international airport at Chennai connects the state with rest of the world. Good infrastructure facilities, excellent broadband connectivity, a stable and friendly government, highly skilled and affordable manpower, and cordial industrial relations make the state an important destination for IT investment. The global banks, financial institutions and MNCs like Xansa, Ford, iNautix Technologies, Alcatel, CA, EDS, and Verizon Data Services, who have set up operations here stand testimony to this.

Hottest software destination
Tamil Nadu crossed a milestone in software exports by achieving Rs 5,223 crore in exports during 2001-02, registering a whopping growth of 67.8 per cent from Rs 3,116 crore. This gargantuan growth in an otherwise stagnant market has placed Tamil Nadu amongst the leading states in India in IT. Application software, consulting activity and systems software accounts for the major share, with 89.65 percent of the total software exports, while the ITES sector contributed 6.5 percent.

The export revenue from offshore projects is higher (Rs 3,300 crore) than the income from onsite works (Rs 1,717 crore). Also, hardware exports are at Rs 482 crore. There are 558 software export companies in the state, apart from six companies in Pondicherry. The STP units alone made exports to the tune of Rs 4,646.62 crore, while firms at the Madras Export Processing Zone (MEPZ) accounted for Rs 206.55 crore.

Favoured ICT investment destination
Tamil Nadu is the favoured ICT investment destination, especially for leading international IT companies, multi-national banks, etc. Testimony to this is the establishment of the accounts back office of the World Bank in Chennai.

Six agencies have already been permitted on a non-exclusive basis to create high bandwidth optic fibre cable networks that will cover every single district in the State. These are M/s BPL Broadband, DishnetDSL, Bharti Telesonic, Macronet (subsequently renamed as Reliance Infocomm), Estel Communications and Bharti Telenet. Tamil Nadu has the highest rural telephone connectivity in the country with nearly 86 percent of all its villages in Tamil Nadu covered.

Software Technology Parks of India, Chennai has been given financial assistance in the form of interest free loans and grants to set up international data links at Madurai, Tiruchirappalli, Tirunelveli and at NSIC/Guindy /Chennai. This is in addition to the STPI and VSNL facilities already available in Coimbatore. The facilities at NSIC/Chennai, Madurai, Tiruchirappalli and Tirunelveli are now operational.

A pilot project called Sustainable Access in Rural India (SARI) is being implemented in Madurai for providing both telephone and Internet access through Wireless in Local Loop (WLL) technology developed by the Telecom and Network Group at IIT Madras. This project is sponsored by MIT Media Lab, Centre for International Development, Harvard University and IIT Madras and is supported by the Government of Tamil Nadu.

A similar project has been launched by IIT Madras in association with EID Parry group of companies in 271 villages in Nellikuppam in Cuddalore District. Tidel Park, a one million square feet IT park, has already achieved full occupancy. A 1000 acre IT park has been developed by the State Industries Promotion Corporation of Tamil Nadu 20 km south of Chennai, for allotment of land to IT Companies, who wish to build their own campuses. The 1700 acre Mahindra Industrial Park, a joint venture of TIDCO, IL&FS and Mahindras, is also being developed to meet the need of both IT and logistics industries.

The Tamil Nadu Infotech Fund, jointly promoted by the TIDCO, IL&FS Venture and SIDBI, has funded several innovative projects. DishnetDSL and Bharti Aquanet (a Bharti Telesonic-SingTel joint venture), have initiated steps to lay submarine optic fibre cables from Singapore to Chennai with a total capacity in excess of 11 terabits per second. The Bharti i2i submarine cable is expected to begin its commercial operation shortly.