It’s been five years now and only 7 out of the 17 projects for which Memoranda of Understanding (MoUs) were signed by the Information and Technology Department during the first edition of the Global Investors Meet (GIM) 2015 have commenced operations.
Data collated from the Electronics Corporation of Tamil Nadu Limited (ELCOT) through RTI shows that 5 projects are still in the under-construction stage and various stages of implementation. A firm called W.S.Industries India Limited had signed a deal with the government for constructing an IT park involving investments of ₹1,517 crore but there are no details about that MoU now.
Four projects from GIM 2015 that were inked with Hewlett Packard India Private Limited, Intel Technology India Private Limited, Sutherland Global Services Limited and ASV Constructions Private Limited have been dropped. But ASV Constructions had signed another deal with the government during the second edition of GIM that happened in 2019.
In terms of investments only 62.99% has come in. Against a signed commitment of ₹10, 950 crore as on date, the MoUs were signed in the IT sector managed to bring in ₹6,898 crore, providing employment to 72,373 people. In 2015, during the GIM event,the government had said that more than two lakh people would be inducted into the sector over a period of three years.
Data collated on deals that were signed during the second edition of GIM that happened in 2019 shows that two projects – Bayline Infocity Limited (formerly ETA Technopark Ltd.) and Tranzo Digital Services – have commenced operations, five are under construction, two firms have purchased land while another firm is still in the process of identifying land. Another firm Netlink InfoComm Sdn Bhd is in the process of commencing activity. Investments to the tune of ₹2,056.5 crore have come in till date as against the commitment of ₹11,974 crore through the 11 deals.
“With COVID -19 some of these deals might now take more time to translate into reality. With people working from home the demand for IT space has shrunk – so investments will be done cautiously,” said a source from one of the firms that had struck a deal to invest in this sector.