CHENNAI: In a major boost to the software industry in Tamil Nadu, the state government is planning to develop IT parks on three sites of the 50-metre strip of land along the eastern side of the Outer Ring Road (ORR) in Chennai.
Sources said the Chennai Metropolitan Development Authority (CMDA) has issued enter upon permission for three sites — Malayambakkam, Mannivakkam and Vandalur — following the request of Tidel Park Limited.
The sites were allotted after conducting a land valuation for the entire ORR stretch. While 5.33 acres on the Malayambakkam stretch, valued at Rs 3 crore per acre, has been allocated for the first IT park, the second one will come up on 5.04-acre area of Mannivakkam where the land value has been fixed at Rs 5 crore per acre. The third IT park is planned at 0.5 acre-area in Vandalur where the land value is Rs 8.05 crore per acre.
Currently, the government is targeting to woo Global Capability Centres (GCCs) to set up a base in the state as they could generate high-end jobs for the youth. According to a report of Knight Frank, a global real estate consultant company which has done the land valuation along the 50-metre stretch, there are around 160 GCCs in Tamil Nadu, constituting about 10% of the national count.
CBRE South Asia Pvt Ltd, a leading real estate consulting firm, in its report ‘India’s Global Capability Centres - Charting a New Technology Era’ stated that GCCs are likely to lease office space of 62 million sqft between 2023 and 2025.
36 acres allotted for warehouses along ORR
Sectors including technology, engineering and manufacturing, and banking, financial services and insurance will lead the leasing activity. Sectors of life sciences, automobiles, and aviation are also expected to expand their GCC operations in India.
A total of 13 state departments have come out with 59 projects covering 226 acres across the stretch. Recently, a consultant has been hired to prepare a blueprint to develop a 1 km stretch on both sides of the road. Apart from preparing the detailed development plan, the main objective of the consultant is to identify and delineate suitable areas for implementing the Land Pooling Area Development Scheme (LAPDS) and to prepare an economic development plan along the corridor.
However, there has been a delay in this regard and the consultant has been removed by top officials. Meanwhile, Tamil Nadu Industrial Development Corporation has been allotted 36 acres, valued around Rs 70 to Rs 75 crore, along the stretch to set up its warehouses, sources said.
The facilities will come up at Morai (11 acres), Karungaracheri (6.9 acres), Kummanur and Angadu (4.2 acres), Periyamullaivoyal (5.06 acres), and Minjur (9.22 acres). According to a report of Coldwell Banker Richard Ellis, leasing in Chennai hit an all-time high of six million sqft while the supply stood at 6.3 million sqft.
To generate more high-end jobs for youth
The government is targeting to woo Global Capability Centres (GCCs) to set up base in the state as they could generate high-end jobs for the youth. A report stated that there are around 160 GCCs in Tamil Nadu, constituting about 10% of the national count.