The state government is contemplating a slash in rental rates of IT parks across the state with a view to attract more clients.

Barring Chennai, IT parks situated across the state have dismal occupancy following their high rentals and lack of social infrastructure.

Of the eight IT parks promoted by Elcot across the state, the Tiruchy IT park has got only 30 per cent of occupancy till date while the Coimbatore IT park commissioned three years ago, has only 60 per cent occupancy.

Two parks in Madurai and one in Tirunelveli are yet to find a client while Hosur, Vellore and Salem are still under construction.

Recession apart, the key reason for vacancy, say officials, is high rental rates compared to private IT parks located near-by.

While Coimbatore park commands anywhere between Rs 23 andRs 40 per square feet depending on the client and the lease area, the one in Tiruchy is offered for Rs 28 per square feet. “Private IT parks offer the same area at 15 –20 per cent discount,” they say.

Also, acute power shortage in the recent months has escalated overall operating costs of companies in IT parks.

Though 24/7 power is maintained with the help of diesel generators, this component is again passed on to companies as a part of the maintenance component.

“With this cost escalation, companies are not getting any cost advantage, the original idea that impelled them to set up units at tier-II cities,” lament officials.

To look into all these issues, a government panel including officials of Elcot, finance and IT departments, has been formed to rework the rentals of IT parks so as to attract more clients.

The panel is expected to meet next week and some downward revision of rentals may be announced by end of October.

Even private IT parks are now facing the heat with huge vacancies and hence have made a representation to the government to allow them to let out the space for non-IT clients.

Corporation waives advance for all women police station

The Chennai corporation which strictly collects a 12-month advance when renting out its properties, has decided to make an exception in the case of a women’s police station in Royapuram and waive the advance due to it.

While the city corporation passed a resolution to waive the rental advance of `5.42 lakh from the police station, it made no such concession for a fair price shop run by a co-operative society during the proceedings.

According to official sources, the usual procedure to rent out a corporation property is to first evaluate its total built area and then multiply it with the base value rent.

The property is handed over only after the advance is received. In the case of the police station the base value rent was fixed at Rs 20 per sq. ft. but the corporation decided against collecting it.

“When fair price shops can pay an advance why not police stations?” asks DMK floor leader in the city corporation council, Subash Chandra Bose, arguing that either the corporation annul such advances for all government offices or collect it from all parties that rent its properties.

“The city corporation demands a hefty deposit whenever it rents out its properties to ration shops. Why doesnt it waive them off too?” asks a sales supervisor of the Chinthamani Cooperatives Society.