"Globally the demand for software industry is witnessing an upward surge. So the government of Tamil Nadu is keen to seize the opportunity. We do not want to miss the bus.

In that sense there is urgency and the state government is going ahead with plans to build a second Tidel Park soon," confirmed TN industry secretary Shaktikanta Das speaking to eFE.

Das said the state government was exploring various options including that of developing infrastructure in two smaller, manageable stages so that the projects can be completed faster.

The decision on structuring the project will be made within two months, he said and added that government was not averse to exploring the possibility of floating a joint venture or getting the project built on a BOOT (build, own, operate, transfer) basis with private sector funding.

The JLL report was commissioned by Jurong Town Corporation International of Singapore to study the IT related infrastructure requirements of southern states.

JTC has already declared its intention to become a major player in India as builders of infrastructure facilities including master planning and design and construction of dedicated IT parks.

It has recently obtained FIPB clearance to set up a 100 per cent subsidiary in Chennai to pursue its goals.It has also submitted a proposal to the TN Government to develop IT related infrastructure.

The JLL study on IT infrastructure requirements has indicated that Tamil Nadu has scope for setting up two more Tidel Park projects i.e. an additional eight to 10 million sq ft of space for IT firms in the next five years.

Even assuming that software industry may not sustain such steep growth projected by JLL study, analysts feel that Chennai's requirements will merit another 4 million sq ft of dedicated IT park space for software firms in five years.

Further the government of Tamil Nadu intends to go in for additional one million sq ft of space in its efforts to develop a second Tidel Park in Chennai.

If such a large space is to be provided for IT companies, construction work must start before the end of the year. Building such huge facilities usually take anywhere up to 18 to 24 months, it is said.

Hence the TN government's desire to move fast and get the facilities ready before end of year 2001 or early 2002. Authorities are aware new IT investments into TN will come only when the state can provide superior infrastructure facilities and vigorously market them.