Tamil Nadu to create a FinTech city
The government of Tamil Nadu initiated the construction of a FinTech city in Chennai with the Tamil Nadu Industrial Development Corporation (Tidco) which issued a tender to select a project management consultant for the 165 crore project.
While a FinTech policy is being prepared, the state government wishes to create an ecosystem in FinTech through the project to attract domestic and foreign financial institutions and make Chennai one of the world’s leading service centers. financial.
It will be developed with the supporting infrastructure required to accommodate financial institutions such as banking services, non-banking financial services, financial BPO; regulatory institutions, financial market operations and training centers.
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The FinTech City will also complement the efforts of FinBlue, a FinTech Center of Excellence hosted at STPI, Chennai, which identifies, nurtures, finances and evolves FinTech start-ups. The state government had contributed 5.75 crore for the center.
The call for tenders indicated that Tidco had carried out the technical-economic feasibility study and planned to develop the project in three phases as a star model. The state government has allocated 112.8 acres for the project in the city.
Mahesh Ramachandran, general partner, Pontaq Venture Capital Fund, said the FinTech city could be a game-changer to position the state as a financial hub to capitalize on the strong work being done here by global companies,
In May, during an interaction with State Finance Minister Palanivel Thiaga Rajan, CII Southern Region President CK Ranganathan said Tamil Nadu has a vibrant ecosystem to attract investments in the banking and financial services sectors and urged the state government to relaunch the FinTech City project. , which is a dream of Chief Minister MK Stalin.
In his inaugural budget, Rajan announced the formation of a separate ‘FinTech cell’ in guidance – the Tamil Nadu government’s nodal agency for investment promotion and one-stop-shop facilitation – to promote and facilitate investment. in the areas of FinTech, Global Capacity Centers and Data Centers. The FinTech cell will be set up with members of Guidance and industry to help the state establish links with industry and attract investment.
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Tidco, in association with Tamil Nadu Infrastructure Fund Management Corporation Ltd, has set up a seed fund for the emerging sector with a corpus size of 500 crore. This fund will focus investments in emerging sectors, including FinTech, says the major industries policy brief for 2021-2022.
In addition, under the program for FinTech Institutions, assistance will be provided to FinTech companies that exploit the technology to meet the credit needs of entrepreneurs in the state. Maximum financial assistance under the program is 10 crore per borrower, the policy note says.