COIMBATORE: After a long wait, the new building of ELCOT’s IT Park at Vilankurichi in Coimbatore is finally ready.
After inspecting the six-storey building on Thursday, state IT minister PTR Palanivel Thiaga Rajan said chief minister M K Stalin would inaugurate the IT Park in two weeks.
The construction of the building began in 2020 and was supposed to be completed more than a year ago. However, multiple factors delayed the completion. More than 3,000 people are expected to be employed by IT companies once the building is thrown open for occupancy.
IT experts say there was a huge demand for IT space in Coimbatore. A qualified workforce, lower attrition, and lesser pay than metros like Chennai and Bengaluru make Coimbatore attractive to IT majors.
“There is a huge demand of about six to seven lakh sq ft more in Coimbatore,” Thiaga Rajan said.
Thiaga Rajan said that a few companies wanted to hand over the entire building to them.
“But we wanted to provide opportunities to small and medium IT firms and startup companies. So, I have asked the IT department’s additional chief secretary and Elcot managing director to frame guidelines for allocation of space to large as well as smaller IT companies,” he said.
He said at least four to five companies would be occupying the new IT Park.
“We are planning to reserve around 15,000 sq ft for co-working space,” the minister said.
In addition to the ELCOT IT Park, half a dozen private tech parks are also in various stages of completion in Coimbatore, setting the tone for Coimbatore’s major IT leap.
Dr Rajaram Venkataraman, president of Software Process Improvement Network (SPIN), Chennai, said some of the large IT companies in the country have established or expanded their operations in Coimbatore since the pandemic.
A significant number of IT employees hailing from Coimbatore who want to remain in their hometown was cited as a reason by the companies to establish or expand their operations here, he added. Major companies have expanded their offices in the city to reduce the cost and increase flexibility.
“The city has a Bengaluru-like climate with 40% lower cost, both operational and real estate, making it an attractive choice. The industrial climate and state govt push for bringing IT sector are also helping,” he said. The trends will accelerate more in the future, he added.
Madan A Sendhil, chairman of Rathinam Group, which is building an IT Park, said many international players are looking for IT space in Coimbatore. “After the pandemic, there is a surge in IT players entering Coimbatore,” he said.
He said the land cost had spiked in Coimbatore in the last few years. But numerous colleges, producing a skilled workforce make the city attractive, he said. Once the Coimbatore airport expansion is completed, there would be a further surge in demand, he said.
Suresh Sambandam, founder and CEO of SaaS firm Kissflow said it was also vital to create a vibrant social life to attract more investments. “We need to build physical and social infrastructure to attract technology companies. We should also think about creating a vibrant social life. Unless we fix the entertainment quotient for Tamil Nadu, we cannot fetch investments,” he said.
