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Tamil Nadu government releases data center policy

The Chief Minister of Tamil Nadu, M K Stalin last week unveiled the ambitious Data Centre policy after inaugurating the 20th edition of ‘Connect 2021’ in Chennai. The Data Centre policy aims to promote Tamil Nadu as an ideal investment destination and the government would adhere to providing power, land and connectivity infrastructure for data centres, fiscal and non-fiscal incentives to Data Centre developers to boost investment, it said.

The government will provide power, land, and connectivity incentives to support new data centers, chief minister MK Stalin said. But to receive the incentives, projects must involve an investment of over ₹500 crore ($66.5 million) and meet at least 30 percent of their energy requirements with renewable energy sources.

Facilities will be able to buy power from the state-owned Tamil Nadu Generation and Distribution Corporation (Tangedco), and get 100 percent subsidy on the tax on that energy for five years.

Data centers in districts classified as A or B, companies will get 50 percent off stamp duty. In category C regions, they will get 100 percent stamp duty exemptions, and can get a 50 percent subsidy on land cost.

The Data Centre policy would specifically cover firms engaged in the business of developing and operating Data Centres — either Greenfield Data Centre or Data Centre parks, brownfield expansions of existing data centres units, among others. ”To keep pace with the evolution of technology, there would be an annual review of policy measures and definitions by the IT department”, it said. The Data Centre policy would be applicable for all Data Centres incorporated from April 1, 2021 until March 31, 2026. The operational guidelines required would be issued from time to time by information technology department. Tamil Nadu would work to create a pool of skilled manpower in the Data Centre sector which would help attract investors in Tamil Nadu.

Electronic Corporations of Tamil Nadu (ELCOT) would be the nodal agency for the administration of the Data Centre policy and it would work with ICT Academy to design and conduct courses specific for data centre operations. ”Upto 20 per cent of eligible fixed assets (EFA) would be allowed for fresh investments made in captive power plants, it said.

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