CHENNAI: The Tamil Nadu government on Thursday announced a new Information Technology policy, a policy which it described as "an outline for online revolution".

Unveiling the policy at Connect 2002, an infotech expo organised in conjunction with the CII, Chief Minister J Jayalalithaa said the policy seeks to establish Tamil Nadu as the destination of choice for IT investments, to upgrade the quality of life of the citizens of the state through e-governance and IT applications in government, to empower people in the rural areas as to bridge the digital divide and to promote Tamil in IT.

She said that last year, despite a global downturn in the IT industry, Tamil Nadu recorded a phenomenal growth of 68 per cent in software, when exports accelerated from Rs 3,116 crore to Rs 5,223 crore.

The aim of her government, she said, was to make the state the BPO capital of the world. "From several studies I understand the worldwide BPO market is estimated at around $127 billion and is expected to grow to around $234 billion by 2005," she added.

The broad contents of the policy are:

An industry set up anywhere in Tamil Nadu having an investment of Rs 50 crore to Rs 100 crore becomes eligible for a capital subsidy of Rs 25 lakh. For investments between Rs 100 to 200 crore the eligibility of subsidy is Rs 50 lakh. Any investment in excess of Rs 200 crore would qualify for Rs 100 lakh subsidy.

The policy states that there would be a relaxation of FSI to the extent of 100 per cent for designated IT parks. Also a 50 per cent exemption of stamp duty and registration fee will be given at the time of purchase of land/building for IT industries.

IT companies in the state would be permitted to self-certify that they are maintaining the statutory forms and registers.

The policy states that the 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.

A separate policy is on the anvil to attract hardware investments to the state. Also, the government has made available the draft of the ITES policy through its website for public comments.

CM said, "In this ancient and great land of Tamil Nadu, I intend using IT and ITES as my guided missiles for ushering in a new era of rapid development and prosperity in TN". She added that, "the investor-friendly policies of my government have transformed the red tape into a red carpet to welcome."