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Tamilnadu
PromotingClusterdevelopment
ClusterInfrastructureDevelopment
Quality of infrastructure in industrial clusters in
TamilNaduwouldbe upgraded through a
Cluster development action plan in collaboration with the
industry. Departments of
Municipal Administration, Rural Development, Local bodies,
Highways, TNEB, Town &
CountryPlanning,Industries&Commercewouldbeinvolvedinthisexercise.
FundsundervariousschemesofGovernmentofIndiasuchasIIUS,TCIDS,etc.,wouldbefully
dovetailedtomeetthesespecialneeds.
Sectorlevelstrategies:Manufacturing Automotiveindustry
In order to attract large investments in the automobile
manufacturing sector, the State
Governmenthasalreadyannouncedanultramegaintegrated automobile
projects policy.
ThispolicyisapplicabletoautomobileprojectsinvestingRs4000croresormoreineligiblefixed
assets.
A Special Economic Zone for autocomponents will be set up near
Chennai in about 300
acres.Facilitiesfortraininginhightechnologyinautocomponentswouldalsobesetupinthis
SEZ.
Polytechnics and ITIs around Chennai, Hosur and Coimbatore
wouldbe oriented for
automotivesector.
EngineeringIndustry
Tofurtherstrengthenexports,anEngineeringGoodsSpecialEconomicZoneinabout250acres
forpumps,motorsandfoundrywouldbepromotednearCoimbatoreasaPPPprojectwiththe
localindustrybySIPCOT.
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Semiconductor,ElectronicHardware&Nanotechnologyindustry
A Centre of excellence in chip and electronic hardware design
willbe promoted in Anna
UniversityincollaborationwiththeelectronicindustryandGovernment.
A NanoTechnology Research Centre isbeing set up in Bharathiar
University and willbe
supportedbyStateGovernmentforpromotingResearchandDevelopment.
AgroupofPolytechnicsandIndustrialTrainingInstitutes(ITIs)aroundChennaiwouldbe
converted into special skill development centres for electronic
hardware manufacturing in
collaborationwithindustry.
LeatherIndustry
AfootwearSEZ,withdesigncentreandtrainingfacilities, isbeingsetup
inSriperumbudur by
SIPCOTin150acresofland.Inaddition,aLeatherProductsSEZwouldbesetupintheChennai
RanipetcorridorbySIPCOT.
A high technology environmentfriendly Leather Processing
Complexof international
standardswouldbesetupatasuitablelocation.
Textilessector
Though Tamil Nadu is preeminent in spinning and knitwear, there
is need to promote
integrated textileunits
inprocessing,weavingandgarmenting.Hence,StateGovernmentwill
announceaPolicyforIntegratedTextileUnitsshortly.
Chemicals,PetrochemicalsandFertiliserindustry
StepswouldbetakentomakeNaturalGasavailablefromKrishnaGodavaribasinandalsofrom
theCochinLNGterminalthroughTIDCOandotherprivategassuppliers.
Restrictions inuseofmethanolasa feedstock inchemical
industrieshavebeenhampering its
regularandwideruse. Necessary deregulation to enable chemical
industries to freely use
methanolwouldbeconsidered.
Petrochemical Projects Investment Region (PCPIR) at Ennore or
Cuddalore willbe set up
usingPCPIRpolicyrecentlyannouncedbyGovernmentofIndia.
CementIndustry
Governmentwouldtakeallstepstoenableeffectiveuseofflyashbythecementindustryfrom
allsources,includingTNEB.
Clinker
grinding
units
would
be
encouraged
in
the
State.
Explorationofnewlimestoneresourceswouldbegivenspecialthrust.
DrugsandPharmaceuticalsindustry
AspecializeddrugsandpharmaceuticalsdusterwouldbedevelopedaspartoftheNanguneriSEZ.
Thiswouldofferstateoftheartenvironmentprotectionfacilities.
APharmaSEZwouldbesetupontheeastcoastwithhitechenvironmentalcontrolsystemsto
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enablezeropollution.
LifeSciencesIndustry
Takingintoaccountthefastgrowingimportanceofspecificsubsectorssuchasbiopharma,bio
services,biomanufacturingandbioagricultureinthebiotechnologysector,anupdated
LifeSciencesPolicywillbeannounced.
AstatelevelLifeSciencesInnovationFundwillbecreatedbyTIDCO.Necessaryguidelinesinthis
regardwillbeissuedseparately. Funds from other sources such as
TechnologyDevelopment
Board of Ministry of Science and Technology, Department of
Biotechnology, Ministry of
Agriculture, etc., of Government of India, funding from
Multilateral institutions and other
sourceswouldalsobeleveraged.
A tenyearprogramme to harness the potential of education
institutions in the State of Tamil
Nadu to generate high quality life sciences students will be
developed duly involving
academia,industryandavailableinternationalexpertise.
Agroandagroprocessingindustry
Support for agro industry would focus on increasing returns to
farmers, while
maximising value addition of agro products. The goal is to raise
share of processed
foods in the food market from 1% to 10% andvalue addition levels
from 7% to 30%.
Support for this sectorwill compriseofpromotionofagroprocessing,
agro infrastructure
development such as cold chains in the PPP mode covering
agriculture, meat, fisheries,
poultry, etc., while also enabling improvement of quality of
processed foods to world
standards. This initiative will promote investments in
production of quality planting
materialorbreeds,processingofcereals,pulses, fruits, vegetables,
milk, meat and fish,
etc., as well as quality packaging technology.
Thefollowingwillbe thekeystrategies
involvedinpromotingagroprocessingindustry:
Directorate of Agricultural Marketing and AgriBusiness will be
the nodal agency foragroprocessing industries
inTamilNaduandserveasa singlewindowclearanceagency for
agroprocessing industry in the State, including statutory
clearances and provision of
necessary incentives.An Export PromotionCeZZwillbe createdwithin
theDirectorate to
guideandprovideassistancetoexporters.
Incentiveswillbeprovided for creationofagroprocessing
infrastructure suchas terminalmarkets, specialised commodity
markets, transport, cold chain, warehousing, abattoirs,
R&Dunitsandfoodparks.
Agroprocessing clusterswillbepromoted in industrialparksand
special economiczoneskeeping inviewvalueadditionofmeatand seafood
(Ramanathapuram),Poultryproducts
(Namakkal), Turmeric (Erode), Sago (Salem), Bananas (Trichy),
Mangoes (Krishnagiri),
Cashew (Panruti), Palm Products, Medicinal plants and seafood
(Thoothukudi), Milk
products, Grapes (Theni), etc. A comprehensive infrastructure
development plan willbe
drawnupandimplementedover5yearstoprovideroadandairconnectivitytomarketing
centres,agrofoodparksandAgriExportZones.
Special Agro Economic Zones willbe promoted for value added
activities like food
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processing,agrobasedindustries,dairyproducts,etc.,togeneratelargescaleemployment
forsemiskilledandunskilledpersons.
As a follow up of notification of the Wine (Manufacture) Rules
in 2006, a Winemanufacturing policy will be announced to enable
development of grape cultivation and
wineryindustryintheState.
Qualitypowerwillbeprovidedtoagroprocessors.
Cultivationofhighvaluecropsthroughscientificandhightechnologycultivationwillbein
givenspecialthrust.Forsuchcultivation,exemptionfromLandReformsActwillbegranted
oncasetocasebasisforsettingupmegaorchardsof50Hectareandabove.
Contract farming by agro processors will be encouraged to give
better return to thefarmers.
Flowerprocessingandfloricultureunitswillbeencouraged.
Agri
Biotechnology
and
Agri
Nanotechnology
will
be
promoted
for
enhancing
productivity,qualityandvalueaddition.
Manufacture of microirrigation systems, green house components,
shadenets, farmmachineryandotheragroequipmentwillbe
incentivisedandFDI in thesesectorswillbe
encouraged.
Productionofqualityandpredigreeplantingmaterials,seedsandbreedingmaterialswillberecognisedasaagroprocessingindustryandprovidedincentivesunderthispolicy.
Better post harvest management, quality assurance and
certification systems will bepromoted
to
enable
better
shelf
life
and
value
of
agro
products.
Human resource development in the agribusiness sector will be
given priority to
bytrainingofextensionstaff,farmersandprocessors.
Appropriate weather forecasting mechanism including automatic
weather stations wherenecessary will be set up to reduce
unpredictability in agricultural production. Further,
Government will test pilot a variety of insurance schemes to
cover the risk of primary
producers.
Incentives
All incentives available for manufacturing industries under the
Industrial Policy would
be applicable to agroindustries and manufacturing of
agrimachinery and micro
irrigation equipment.Effortswillalso be taken to fully utilize
the benefits available
under theschemesofGovernmentof Indiaaswellasenableagrounits
toaccesssuchGol
funding support. All concessions under the State Policy wouldbe
available in addition
to the concessions offered by Government of India in the
agroprocessing sector,
subject toboth Govt, of India and Govt, of Tamil Nadu subsidies
not exceeding50%of
projectcost.
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Standalone SME cold storages for agro processing will be
provided power tariffsubsidy of 30%, 20% and 10% in the first,
second and third year of commercial
operation.
100% exemption from payment of Electricity Tax would be provided
for all new
agroprocessingunitsforaperiodof5yearsfromthedateofcommercialproduction.
SMEs involved in Agro and Food Processing will be provided
support for
gettingHACCPandotherinternationalsafetyrelatedcertificationforexportpurposesofat
50% of
the cost incurred for obtaining quality certification mark from
a certifying agency
recognisedbyStateGovernment/CentralGovernment,subjecttoceilingof
Rs.5.00lacs.
Vehiclestransportingperishableswillbelabelled greentransport
andwillbegiven speedyclearancesatcheckposts.
Primary producers who commit to install microirrigation systems
will be givenpriority in provision of free electricity connections.
Overriding priority for free
electricity connection will be given to small and marginal
farmers if they join
togethertoformaclusterof20hectaresandaboveandundertaketojointlysetup,
ownandmanage
thecommonirrigationsystemsusingmicroirrigationtechnology.
Governmentwillgive50%subsidyonplantingmaterialforjatrophaandotherbio
fuel crops
and extend the subsidy available to agroprocessing industry to
biofuel and biodiesel
extraction plants. Further, jatropha seed will be exempted from
purchasetaxandjatropha
oilwillbeexemptedfromVATforaperiodof10years
fromthedateofcommercialproduction.
SugarIndustry
StateGovernmenthasissuedguidelinesforestablishmentofIntegratedSugarComplexesconsistingofsugarmills,cogenerationplantsanddistilleriesinallfutureprojects.
Existing
sugarmillswillbeencouragedtoputupsuchfacilitiesintheircomplexes.
Establishmentofethanolunitsinsugarmillswouldbeencouraged.
Biofuelindustry
Government of India have launched Ethanol blended petrol (EBP)
scheme. Oil
Companieswouldbeencouragedtoeffectivelyimplementthisscheme,leadingtobetterreturns
forfarmersandprofitabliryofsugarmills.StateGovernmentwillalsoencourageuseofethanol
asfuelandincreaseofblendingratioofethanoltopetrol.
Suitable support and encouragement would be extended to
investors willing to set up
ethanol units through sugarcane and grainbased routes.
Thiswouldenablebetterreturnsfor
drylandfarmerswhocultivatesago,millets,etc.
ServiceSectorStrategies Service
SectorOpportunities
The largest employment,after theagriculture sector,
isgeneratedby services sector, like real
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estate and construction services, financial services, IT enabled
services, Business Process
Outsourcing (BPO), Engineering Process Outsourcing (EPO),
Aircraft Maintenance,
Repair and Overhaul (MRO) services, Digital and Media services,
etc. Though services
sector is directly related to growth in manufacturing sector, it
is still necessary to
identify bottlenecks in each subsector and accelerate the pace
of investmentsand
employmentgeneration.
ConstructionIndustry
A feebased single window clearance mechanism would be put in
place, like
GUIDANCE bureau, for all major construction projects covering
clearances required from
severalGovernmentdepartments.An egovernancepackagewouldbe
evolved for this single
windowclearancemechanismforconstructionindustry.
ApilotConstructionClusterParkwillbeestablishedwithspaceforlargeindustriesaswellas
SMEsintheconstructionrelatedindustriesandservices.
Mass training of unskilled and semiskilled workers for
construction industry willbetaken up in collaboration with
Construction Industry Development Council (CIDC)
throughITIsandPolytechnics.
OtherServices
State Government will promote aircraft Maintenance, Repair and
Overhaul (MRO) services
inTamilNaduaspartofChennaiairportexpansionandmodernisation.
TheprintingclusteratSivakasiwillbesupportedwithnecessaryinfrastructure,including
a
centerofexcellenceinR&Dandtraininginassociationwithindustry.
ExportPromotion Exportgoals
InTamil
Nadu,
exports
in
2005
2006
was
Rs
66,856
cr
(USD
14.5
billion).
This
Industrial
PolicyaimsatdoublingexportstoreachUS$30billionin2011leadingto
additionalemploymentfor
10lakhspersonsby2011.
ExportFacilitation
State Level Export Promotion Committee (SLEPC) functioning under
Chairmanship of Chief
SecretarywithmembershipofFIEO,Exportcouncils,
leadingexportassociations andofficials
providesfacilitationandsupportforexports.
IndustriesCommissioner&Directorof
IndustriesandCommercewillbedesignatedas State
Exports Commissioned to coordinate with various departments of
State and CentralGovernment in connection with exports, facilitate
exports and work towards procedural
simplificationofexportdocumentationformalities.
The existingExportGuidanceCell in eachDistrict
IndustriesCentrewillbeupgraded into a
District Export Promotion Cell in collaboration with FIEO. This
arrangement would facilitate
accelerateddisposalofvariousclearancesrequiredbyexporters.
A Comprehensive Trade Information Portal with network
connectivity to all District
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Industries Centres would be set up by Directorate of Industries
& Commerce in
collaborationwithFIEO.
IndustrialClusterExportPromotionCommittee
wouldbeestablishedforeachmajor export
clusterintheStateunderChairmanshipofaStateLevelOfficertoaddressvarious
administrative, procedural or infrastructure issues faced by
exporters, settle local
problemsandforwardlargerpolicyandmacroissuestoSLEPCfordecisions.
100%EOUswillbedeclaredaspublicutilityunderIndustrialDisputesAct.
Government of Tamil Nadu will request Government of India to
increase funding to
exportingStatesunderASIDEkeepinginmindincreaseinnumberofSpecialEconomic
Zones
andEOUsintheStateandpressureoninfrastructure.
Labourreforms
Overlappingofshiftswillbepermittedautomaticallywithoutneedforanyapprovalifitisless
than30minutes.Necessaryexemptionwouldbegivenundersection58(2)oftheFactoriesAct,
subject
to
conditions.
EnvironmentProtection
Environmentalclearances
AnEgovemancepackagewouldbeimplementedbyTNPCBforspeedyprocessingofenvironment
clearances.
TNPCB will grant clearance for reefcategory industries on
compliance of relevant norms
within60days.Consentfororangeand greencategorieswillbegivenin15
daysfromdateof
application.Anonlineapplicationand clearancemechanismwillbe
developed forgreenand
orangecategories.
Clusterbasedfacilities
Dyeing,leathertanningandindustriesthatpollutewouldbeencouragedtolocateonly
within
approvedclusterswithcommonenvironmentmanagementfacilities.
Hazardouswastemanagement
HazardousWasteTreatment,StorageandDisposalFacility(HWTSDF)willbesetupat
Gummidipoondi,Oragadam,Perundurai,Cuddalore,KarurandTiruppur.
Carboncreditsystem
TNPCB and TIIC will encourage industries from Tamil Nadu to
benefit from Joint
Implementation, Clean Development Mechanism andEmissions Trading
mechanisms
through active dissemination and facilitation.
Conclusion
GovernmentofTamilNaduwill takenecessary steps toachieve
themission set forth in this
policy, especially in ensuring that share of the manufacturing
sector rises to over 30%of
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GSDPby2015,asseenindevelopedcountries.
