Tidel Park: Space sale to be over by July-end

By Our Staff Reporter

CHENNAI, JUNE 28. Even as it is set to go on stream on July 4, the Tamil Nadu Government's showpiece on the software front - the Tidel Park - has sold nearly 7.2 lakh sq. ft of space to 29 companies and is holding advanced parleys with another ten for the balance space. The deals are expected to be sewn up by July- end.

Addressing presspersons here today, Mr. R. Gopalan, Chairman and Managing Director, Tamil Nadu Industrial Development Corporation (TIDCO) which is promoting the project in tandem with Elcot (Electronics Corporation of Tamil Nadu) that out of the term loan of Rs. 174 crores allocated for the project, only Rs. 66 crores had been availed thus far.

Since marketing efforts had seen early inflow of investor funds, Tidel might not be using a major chunk of the loan, he pointed out. This along with effective financial management, he claimed, had resulted in a saving of about Rs. 10 crores in interest during the construction stage.

Mr. Gopalan expressed optimism that the company would be in a position to repay its debts within four years, a far cry from the originally envisaged eight years.

The Tidel park will be inaugurated by the Prime Minister and the Chief Minister of Tamil Nadu. The project involves a capital outlay of Rs. 338 crores. It is financed by equity shares, preference shares, term loans and debentures.

The project will have a debt equity ratio of 2.6 : 1 (share capital of Rs. 94 crores and debt component of Rs. 244 crores). About 26 per cent of the total equity capital comes from Tidco and Elcot and the balance 74 per cent from public sector banks, institutions and EPC contractors.

Mr. Gopalan said the State Government had given extensive support to the project by providing guarantee for loans.

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Section  : Business
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