1. From the Managing Director, ELCOT Letter No. GMD/471/ TNDOCF /2003 dated 8.12.2003.

2. From the Managing Director, ELCOT Letter No. GMD/471/ TNDOCF /2003 dated 24.2.2004

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ORDER

The foremost objective in the IT Policy of the Government of Tamil Nadu 2002, is to establish Tamil Nadu as a Destination of Choice for IT investments. In pursuance of the above objective, the policy further states that the Government will encourage and take effective steps for participation in National and International events. Tamil Nadu has emerged as a preferred destination for IT and ITES investments and in order to attract foreign investments, Government of Tamil Nadu has participated in various International and National IT Exhibitions.

2. In the IT Policy 2002 under the Promotional Initiatives it is stated as follows:

"Government will take effective steps to create a brand equity for Tamil Nadu and encourage participation in International / National events to position Tamil Nadu as the Destination of Choice. Government will manage a Destination of Choice Fund (DOCF) for these initiatives in association with Corporates and Professional bodies"

3. As a part of the Tamil Nadu Government Destination of Choice initiatives in attracting Multinational companies in the IT sector to explore overseas BPO/ITES operations and developmental investments in Chennai, the Managing Director, ELCOT, in letters first and second read above has sent proposal for sanction of a seed capital of Rs.2.00 crores towards DOC Fund and for constitution of the Destination of Choice Fund Committee including Government and Private Sector / Educational institutions. ELCOT has proposed to get sufficient contribution from IT companies as well as IT MS builders for the purpose.

4. The objectives of the Destination of Choice Fund (DOCF) would be as follows:

I. To draw up Action Plan to promote and establish Tamil Nadu as a Destination of Choice in consultation with leading media / advertising consultants / companies

II. To identify and take delegations on a public-private participation to select global destinations as part of the DOC initiatives.

III. To promote Destination of Choice initiatives within the country in important locations.

IV. To invite, host and show case Chennai to top Fortune 500 IT companies for the purpose of IT investments.

V. To develop dynamic IT/ELCOT logo.

VI. Publication of periodic IT specific newsletters posted to 500 identified leading IT CEO/COOs.

VII. To work with the specific ITPR industries to promote Chennai and secondary cities.

VIII. To explore new and emerging IT markets from the point of view of potential investment from Chennai and secondary cities.

5. The Government have carefully examined the proposal of MD, ELCOT and have decided to create a DOC Fund of Rs. 2.00 crores on the basis of 50:50 contribution by the Government and the Private Sector. For the purpose Government has decided to set apart Rs.1.00 crore as seed capital for DOC Fund from the Budget Estimate 2005-06 and that ELCOT will mobilize 50% contribution from IT/ITES companies and ITMS builders.

6. The Government accordingly sanction for the creation of DOC Fund of Rs.2.00 crores and accord sanction for a sum of Rs.25,00,000/ (Rupees twenty five lakhs only) being initial state Government’s contribution for the creation of DOC Fund in ELCOT and direct the MD, ELCOT to mobilize Rs. 1.00 crore from IT/ITES companies and IT MS builders being their share of 50% contribution. Further release of state Government could be made after receipt in cash of the IT/ITES/ITMS contribution of Rs.25.00 lakhs. The orders regarding the constitution and functioning of the DOCF committee and their role in sanctioning expenditure after clearance from the Government will be issued separately.

7. The Section Officer (Bills) Industries Department is requested to draw and disburse the amount sanctioned in paragraph 6 above to the Managing Director, ELCOT by means of a cheque with acknowledgement.

8. The expenditure sanctioned in paragraph 6 above shall be debited to the following head of account:

"2852 - Industries- 07 – Telecommunication and Electronic Industries – 800– Other Expenditure – Schemes in the Tenth Five year Plan - II State Plan – JC Grants to Electronics Corporation of Tamil Nadu Limited towards promotion of Information Technology - 09-Grants in aid – 01 Grants for current expenditure (DPC 2852-07-800-JC 0911)".

9. The Managing Director, ELCOT is requested to send utilization certificate after utilizing the fund for the purpose for which it is sanctioned along with vouchers to Government in due course.

10. This order issues with the concurrence of the Finance Industries Department vide its U.O.No. 53/DS(AV)/05-1 dated 29.4.2005.

(BY ORDER OF THE GOVERNOR)