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Tamil Nadu IT Policy 2002 provides that Relaxation of Floor Space Index (FSI) to the extent of 100% will be given in designated IT Parks. Such requests need to be addressed to the concerned Regional Development Authorities. Government has designated ELCOT (vide G.O. Ms. No. 13 Information Technology & Digital Services Department dt. 16.8.2002) as the Certifying Authority for the purpose of Development of IT Parks and for availing exemption from FSI and other norms from CMDA. Development Control Rules relating to setting up Information Technology & Digital Services Parks is as per G.O. Ms. No. 180 Housing and Urban Development (UDI) Department dated 25.5.1998.

To avail additional FSI relaxation towards IT Buildings promoter needs to submit the application as below:

A letter addressed to the Managing Director, ELCOT, 692, Anna Salai, Chennai-600 035 on the proposed IT Building including details as below:

  • A declaration that the proposed building will be equipped with the following:
  • Feeder Grid supply with adequate back up capacity will be provided.
  • Necessary provision for Housing Remote Switching unit of a Communication Provider with redundancy with the Bandwidth not be less than 2 Mbps will be provided in the proposed building.
  • The IT Building would have a satellite/ microwave back up data connectivity. The Plot area on which such IT building is located must be a minimum of 2000 square meters.
  • The companies occupying the IT building should be IT companies as defined in IT Policy 2002 of Tamil Nadu. ( a link to IT Policy 2002). 80% of the built up area should be occupied by IT/ITES units. For this purpose a registration with STPI/EOU/appropriate license with Communication Provider will be adequate.
  • As above, quarterly declaration towards occupancy for IT/ITES purposes should be reported as per the Annexure-A of G.O. Ms. No. 15 Information Technology & Digital Services Department dated 21.7.2004.
  • An undertaking in not less than Rs. 100/- stamp paper on utilization of entire space for IT/ITES companies to be executed by the Applicant. In case of companies, copy of board resolution, Memorandum and Articles of Association, to be furnished. (Specimen Copy of Undertaking is in Annexure-1)
  • A check list as per format to be filled up by the applicant (Annexure-2)

The checklist contains the following items :

  • Name and Address of the Applicant.
  • Location of the proposed building
  • Land area & built-up area.
  • Feeder grid supply with adequate back up.
  • Proposed Data communication facilities
  • Undertaking, sale deed, building plan other relevant records details.

Please ensue that all the items in the Checklist are filled up and submitted along with supporting documents.

  • The building will be inspected by ELCOT authorities after completion of the construction to verify compliance with various undertakings/declarations submitted herein to obtain this NOC.
  • In case of any serious queries, applicants can contact the Managing Director in person or mail him at or contact over phone on any working day during working hours.

ELCOT Check List (Click here)

Tamil Nadu ICT Policy 2018

Parameter Tamil Nadu ICT Policy (2018)
Electricity Tax Exemption Back ended capital subsidy and electricity tax exemption on power purchased from the Tamil Nadu Generation and Distribution Corporation Ltd. (TANGEDCO) or generated and consumed from captive sources
Stamp Duty and Registration Fee 50% reimbursement of stamp duty and registration fee will be given on transaction of land/building for IT/ ITeS in C districts for first transaction of a particular land/building for the purposes of development of IT/ ITeS industrial unit(s)
Capital Subsidy 50% additional capital subsidy over and above the eligible limit for new or expansion IT / ITES industries located in ELCOT promoted SEZs / IT parks in tier I locations, 10% in tier II, 25% in Tier III locations
Special Incentive for MSME Sector
  • Free of cost Skill Development
  • Subsidy of 10% on lease rentals
  • Facilitate tie up with reputed Business Analyst Firms
  • Support linkages of smaller IT/ITeS companies with bigger firms
Structural Package Fiscal Incentive Subsidy on Investment and expansion of projects; IT/ITeS industries in existence in Tamil Nadu for over 10 years will be given suitable extra benefits for expansion projects over and above the normal structured package of incentives, subject to investing the minimum level of investment
Administrative Incentive Exemption from selected chapters of Tamil Nadu Shops and Establishments Act and Tamil Nadu Industrial Establishment
Quality Certificate Financial Assistance Reimbursement of 50% of the costs towards certification
Patent Filing Fiscal Incentive Reimbursement of 50% of the statutory fees for filing of patents
Market Development Assistance Promote IT sector by specialized exhibitions, stalls and seminars in state sponsored events and encourage marketing


Tamil Nadu Data Center Policy 2021

Tamil Nadu is a leading hub for data centres and is poised to become the data centre capital of the country. Hence Tamil Nadu has recently released a Data Center Policy on 26.11.2021 to acts as a destination of choice for investors in the Data Centre market. The policy has been implemented with the vision to develop Tamil Nadu as the numero uno destination for Data Centres by catering to all the specific requirements of Data Centres and providing them with an attractive business environment.

Parameter TN state data centre
Electricity Tariff Data Centre units/parks can purchase power from TANGEDCO at prevailing industrial tariff rates (INR 6.35/ unit) as per the governing TNERC regulations
Electricity Tax Waiver Data Centre facility/Data Centre park shall be eligible for 100% subsidy of Electricity Tax on power purchased from TANGEDCO or generated and consumed from captive sources for 5 years from the date of commencement of commercial operation
Dual Power from Grid Data Centre units or parks with a sanctioned load of 50 MW or more shall be provided with dual power
Cross subsidy Charges 60% of the conventional cross-subsidy charge for Wind Energy and 70% of the conventional charge for Solar Energy respectively, for third-party open access consumers
Additional Feeder An additional feeder shall be provided to developer if the sanctioned load of the Data Centre unit /Data Centre park is more than 100 MW as a Deposit Contribution Work
Augmentation of Power TANGEDCO on best effort basis will augment the supply of power to Data Centres/parks (in MVA) from 11 kV, 33kV, 110 kV and 220 kV substations by 50%
Land Cost Subsidy C Districts - Data Centres /parks can avail a 50% subsidy on land cost from ELCOT/SIPCOT/SIDCO. On private lands procured for Data Centre/parks
Stamp Duty Subsidy
  • A&B Districts - 50% stamp duty exemption will be given for purchase/lease of land obtained from ELCOT / SIDCO/ SIPCOT. For private lands, stamp duty concession will be given as 50% back ended subsidy for up to 10 acres on fulfilment of investment & employment conditions
  • C Districts - 100% stamp duty exemption will be given for purchase/ lease of land obtained from ELCOT / SIDCO/ SIPCOT. For private lands, stamp duty concession will be given as 100% back ended subsidy (disbursed after full investment of Rs.500 crore is achieved) for up to 10 acres for Data Centre units/parks
Structured Package of Assistance For projects of strategic importance, a structured package of assistance would be customised for investments greater
Training Incentive Training subsidy of up to Rs.10,000/- per person trained per month (for up to 6 months) per Data Centre unit shall be provided, capped at Rs.1 Crore per Data Centre
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