"TN is not in favour of new IT investments": Tamil Nadu Minister

Tamil Nadu electricity minister today indicated the state is not in favour of new IT investments as the industry is in bad shape now and it is not generating employment opportunities.

Commenting on the sector, which witnessed Rs 28,000 crore export last year and currently held by the Chief Minister M Karunanidhi, at the state session on Tamil Nadu potential at the 7th edition of Pravasi Bhartiya Divas in Chennai today the minister said that the slowdown in the western countries has resulted has affected 50 per cent of the companies operating in Rajiv Gandhi Salai (Old Mahabalipuram Road) in Chennai, which is considered to be the hub for the IT industry in Tamil Nadu.


The minister had urged the Non-Resident Indians (NRIs) to invest in sectors like automobile, electronics and hardware, leather, textile, paper, cement, steel and bricks. He noted, for the next 25 years these industries will not witness any slowdown.


Stating few examples, the minister said, cement manufacturers are manufacturing cement for Rs 100 but are selling at Rs 200-220. Newsprint and paper manufacturers profit is in the tune of 40-50 per cent, steel manufacturers are buying scrap for around Rs 18,000 however their selling price is in the tune of around Rs 32,000 to Rs 35,000. The minister said "even the brick manufacturer is making profit in the state."


While trying is luck to salvage the minister's comment P W C Davidar, IT Secretary, said that the construction industry out phase the growth of IT industry. He added, the state is yet to witness any pink slip problem. Currently the industry is depend on the process oriented works, which is yet to feel the impact.