The Tamil Nadu government plans to buy around 1,000 acres of land from a private SEZ developer, AMRL Hitech City Ltd, convert it to a Domestic Tariff Area (DTA), and develop it as a joint venture between AMRL and SIPCOT through the State Industries Promotion Corporation of Tamil Nadu (Sipcot). AMRL has only been able to sell 130 acres of the 2,500 acres of land it owns over the years. A senior government official mentioned that the company is willing to provide 1,000 acres of land. The conversion of Nanguneri SEZ into a multi-product joint venture between AMRL and Sipcot fits well with the state government's plan to bring industries from places like Chennai and Coimbatore to backward areas. According to the official, the company intends to develop the 1,000 acres in DTA format over the next 18 months. Industrial parks in nearby Gangaikondan, Tirunelveli district, and Bargur Thoothukudi are completely occupied. Sipcot is looking for land in underserved areas and forming joint ventures. Murasoli Maran, the former Commerce and Industry Minister, was a big supporter of the Nanguneri SEZ. The foundation stone for the project was laid in 2001 under the DMK government, and it was completed in March 2011. The state government has designated 22 industrially backward districts for development, and investors are offered incentives. Nearly 45,000 acres (mostly private land) will be acquired by the government, mostly in rural areas. While Chennai is a popular location for businesses to locate, the state government wants to encourage industrial development in other districts by providing incentives. For example, in underserved areas, the land is available at a 50% discount, which is a significant incentive. Majority of the workforce is drawn from southern districts and works in cities such as Chennai. According to the official, operational costs in districts are much lower than in Chennai or Coimbatore. Image Source