TN CM Lays Foundation For Fintech City And Fintech Tower, Aims Rs 12,000 Cr Investment
Tamil Nadu Chief Minister M K Stalin has unveiled plans for a Fintech City and Fintech Tower, signaling the government's commitment to transforming Tamil Nadu into a global hub for financial technology companies.
With an investment target of approximately Rs 12,000 crore, these initiatives aim to attract substantial investments and generate employment opportunities for thousands of individuals.
During a recent announcement, Chief Minister Stalin revealed that the government has allocated 56 acres of land in Nandambakkam, Chennai, for the Fintech City. He expressed confidence that this strategic move would encourage substantial investments and create jobs for approximately 80,000 individuals in the fintech sector.
The Fintech City and Fintech Tower projects are part of the state government's broader efforts to establish Tamil Nadu as a prominent destination for fintech companies by 2025. \
In November 2021, the government introduced the Tamil Nadu FinTech Policy, offering attractive incentives to attract businesses in the sector. These incentives include reimbursement of 75 percent of operational expenses, 100 percent reimbursement of State Goods and Services Tax (SGST) for three years, as well as repayment of costs incurred for training and marketing.
Moreover, the government has introduced additional incentives to encourage fintech companies to establish operations in Tier-3 and Tier-2 cities. Fintechs in Tier-3 cities will receive incentives twice as lucrative as those in Tier-1 cities, while limits for setting up in Tier-2 cities will be raised to 1.5 times that of Tier-1.
The Chief Minister's special policy, combined with the development of the Fintech City and Fintech Tower, aims to create a conducive ecosystem that will attract global fintech investors. In an effort to further promote investments, Chief Minister Stalin extended an invitation to fintech companies to participate in the Global Investors Meet scheduled for January 2024.
The construction of both the Fintech City and Fintech Tower is estimated to cost around Rs 116 crore and Rs 254 crore, respectively. These infrastructural developments, coupled with the government's incentives and supportive policies, are expected to drive growth and innovation in the fintech sector, enhancing Tamil Nadu's reputation as a leading fintech hub in India.
