Govt cuts rent in Coimbatore tech Park to draw more firms

COIMBATORE: ITES, Bio and Pharma companies has not been well received. In order to draw companies, the State government has reduced the rent and appointed a consultant to identify shortcomings and suggest corrective measures.

Taking into account the potential of the biotech and IT sectors, the State government announced construction of the third phase of TICEL Bio Park in 2016 at a cost of `55 crore. It was inaugurated in April 2021.

"Two lakh sqft is available in 13 floors. But so far, only 15,000 sqft (one floor) is occupied by four Biotech firms. Connectivity and rent could be the issues that deter companies from setting up shop here," an official in the administration department of the park said. The park is situated on Marudhamalai road, which is 18 km from the city.

"The park was expected to generate sizeable employment opportunities in the western region, but failed to get attention compared to the TIDEL Park. Coimbatore is becoming a hub for IT firms, and the negative aspects here in the campus have to be rectified," said K Viswanath, a city based IT consultant.

Officials from Tamil Nadu Industrial Development Corporation Limited said they conducted a market analysis to identify reasons for the poor response. Based on the findings, the government has reduced rent.  
Managing Director of TICEL Bio Park P Poongumaran said they have roped in a private consultancy to conduct a study to identify issues and suggest corrective measures. "One floor is occupied and talks are underway with some more firms. We hope the TICEL Park will get 50 % occupancy by the end of the year," he said.

Explaining the reluctance of IT and ITES firms, he said most of the IT firms are still in 'Work from Home' mode  and feel having an office set-up is unnecessary. "Once the work mode changes, more firms will approach us. Talks are underway with two leading IT firms," Poongumaran added.