Financial city to be set up near Chennai

The Tamil Nadu government will take steps to set up a ‘financial city’ on the outskirts of Chennai and create infrastructure facilities for the financial megapolis, deputy chief minister M K Stalin, who also holds the industries portfolio, told the assembly on Monday. The financial city, to be set up with private participation, would look to attract banks, insurance and mutual fund companies and stock market intermediaries, he said while replying to the debate on the demands for grants for the industries department. A top official said that two sites on the city outskirts had been identified for the purpose. “An extent of 75 to 100 acres of land will be needed for creating the social infrastructure for the project. Two sites have been identified, and discussions will be held with stakeholders to find out their preference,” he added. Pointing out that Citibank and Royal Bank of Scotland had back-office operations in the city, he said facilities like schools, healthcare, housing and leisure would be provided to cater to the needs of employees in the proposed financial city. Just as Tidel Park became an icon to attract IT companies to the state, the proposed financial city would provide an ecosystem for the banking and insurance sectors to set up shop, he said. Improving the international air connectivity, upgrading the physical infrastructure, including roads and power supply, and ushering in legislative reforms, particularly labour laws, are key to the success of the proposed financial city. Already a financial ‘backoffice’ for the world Home to Royal Bank of Scotland’s BPO unit, World Bank’s backoffice & Citibank’s transaction processing unit Availability of a large talent pool at any point of time .Indian Bank, IOB, KVB, Lakshmi Vilas Bank and City Union Bank have made Chennai their main centre Good healthcare, housing and education facilities. Deputy chief minister Stalin also announced the setting up an aerospace park under the public-private partnership mode. Official sources said north Chennai, Perambalur and Hosur were possible locations for the aerospace park. The site would be finalised in the next three or four months after consultations with stakeholders. The government would create the necessary infrastructure like runways, aircraft material production and testing facilities, maintenance, repair and overhaul facilities and an aeronautical training centre, Stalin said. On the lines of the National Manufacturing Competitiveness Council, the government would set up a State Manufacturing Competitiveness Council to improve the competitiveness and production capacity of industries in the state. The council, comprising government representatives and experts from the industry as members, would submit its reports to the government, Stalin said. The government would also unveil specific policies for important sectors like sugar, leather, chemicals, vehicle spare parts and electronic hardware parts, he said.