The creation of dollar accounts is being mooted by Tidco for hi-tech precision and non-polluting industries like computer hardware, software, precision tools and components and pharmaceutical units are earmarked for and expected to operate from the park.

According to a source, Tidco will have to approach the Centre to enable such a dollar facility to operate in the park which has an 100 per cent export oriented unit (EOU) status which very recently got clearance to operate as an EPZ (export processing zone).

But the idea will be to enable industrial units located in the park to source offshore funds in dollars at a cheaper rate of interest by allowing a foreign bank to meet working capital needs of these units. For example, a unit opeating from the park can have an account with a foreign bank in New York and can route its payments in dollars to its raw material supplier company through the bank.

The holding company now being called Tamil Nadu Tech City Ltd can facilitate the creation of such dollar accounts. Even third parties, say, in Japan, which raise bills for payments against supplies made to the park company can also get paid through this dollar account.

The concept is totally new for the country and although it has distinct advantages as working capital flight from the country can get closed by a dollar account, Tidco may not find it easy to win approval for this concept, as the Reserve Bank of India has no policy in the matter of allowing EPZ companies to source dollar funds through a dollar account.

Meanwhile, Tidco has appointed Cushman Wakefield and Earnst Young as consultants to look into the operational side of the park and prepare a feasibility report on the kind of industries which can be located in Nanguneri.

Tidco is having a 11 per cent stake in the Rs 300-crore equity of the project, which has an estimated capital outlay of Rs 800 crore for infrastructure facilities and land. The balance of the equity portion (89 per cent) is held by the Infac Group, Los Angeles (comprising Broadacre of Chicago and Breakthrough Solutions of Dallas) and Axes Technologies, Dallas. Total investment in the park is expected to be in excess of Rs 12,000 crore.

The feasibility report on the project is expected to be ready by the beginning of April. The report will also explore the feasibility of establishing a four-lane 40 km long highway linking Tuticorin port and Nanguneri park in Tirunelveli district and the National Highway which would considerably ease traffic congestion in Tirunelveli city. Tidco has recently completed, it is said, land acquisition of 2000 acres of land at Nanguneri for the proposed Hi-Tech park project.