The first plank of its strategy to this end involves attempts to source cheap financing.

And to add value to its developmental strategy, Tacid is also putting through a well-defined marketing plan that will make it known worldwide.A top government source told The Financial Express that first the corporation has decided to use its own funds for land acquisition and other infrastructure development, rather than borrow money from the market for this purpose which will involve high cost.

Tacid has decided to defer its plans to float by December this year bonds of Rs 50-70 crore to raise funds for infrastructural projects. For now the plan is to spend funds of Rs 30 crore for which it has equity contribution from Government of India and TN government and which it has kept in public deposits as mandated at 5 per centinterest.

"If Tacid can tap these funds for developmental works and land acquisition, where is the need to go in for high-cost borrowings from outside. The whole exercise at Tacid now is to cut costs as much as possible by sourcing cheaper finances from wherever they are available. As a first step Tacid will be using the Rs 30 crore for this purpose," the source explained.

Aside from deferring the bond issue by another four or five months after December, Tacid is also trying to tap cheaper finance from various financial institutions like Hudco, IDFC, Tufidco, ILFS, etc. The corporation is currently engaged in a detailed cost-benefit analysis of tapping funds from these various bodies and intends to talk to them for raising resources.

Tacid has a budget of Rs 23 crore for the current financial year for land acquisition. The source said within the next two or three years the plan is to add at least 20,000 acres of land and use this for various infrastructure projects, industrial units, socially beneficialprojects like health centres, schools and satellite towns around industrial growth centres.

Much of these land will be acquired along the National Highway from Chennai up to Chengalpattu in areas like Varadarajapuram, etc.

Tacid will follow the "concept of sell and buy," for its land acquisition programme, ie, as soon as one area is developed with basic infrastructure facilities, Tacid will try and sell of the plots in these areas as there is much commercial interest growing around these centres, the source said. The second major direction that Tacid wants to move very fast is marketing. It is developing its own home page with a web site on the Internet within the next two months or even earlier. It is also offering an incentive by way of 5 per cent commission to State Industries Promotion Corporation of Tamil Nadu (Sipcot) and is also willing to bear any additional cost incurred by Sipcot for advertising and publicity.