INDUSTRIAL POLICY OF

TAMILNADU GOVERNMENT2014

The State of Tamil Nadu has always been in the forefront of economic growth
in the country. The State has made impressive strides over the years to carve out a niche for itself
in the fields of engineering, automobiles, textiles, leather, Information Technology, electronic
hardware and hi-technology industries and the Gross State Domestic Product (GSDP) stood at
Rs.4,51,313 crore at constant prices in 2012-131. The industrial GSDP of Tamil Nadu grew at an
impressive rate of 9.60% from the year 2005-06 to 2012-13 at constant prices.

Among the Indian States, Tamil Nadu is now ranked:

First in the number of factories

First in the number of workers employed in the factories sector
Third in Gross Industrial Output and
Third in Net Value Addition
1.6 More than 3000 foreign JVs and 100% foreign subsidiaries

Tamil Nadu is to-date the only State to attract seven automobile giants-Ford,Hyundai,Mitsubishi,
Daimler, Nissan, Renault and BMW. As on date, Chennai, the capital of Tamil Nadu and the
Detroit of South Asia, has an installed capacity to produce 13,80,000 cars and about 3,50,000
commercial vehicles each year.

Tamil Nadu offers an abundance of relevant skills, robust IT infrastructure and easily available
real estate. Chennai is the choice of international finance majors as well - Stanchart, World Bank,
Citibank and ABN-AMRO Bank have set up their back office operations in the city. BPOs and
off-shore operations have also preferred to operate from Chennai. With more than 1,780 IT / IT
Enabled Services (ITES) companies, over 3,75,000 professionals and annual IT exports of
Rs.50,000 crore, Chennai, with its IT Bay Area, towers over other major cities as an IT and ITES
powerhouse2.

The installed capacity of conventional energy sources in Tamil Nadu is 11,415 MW. Tamil Nadu
is the undisputed Leader in wind power generation with an installed capacity of 7,145 MW. The
renewable energy capacity of the Tamil Nadu is 30% of the total installed renewable energy
capacity in the country. The State has recently unveiled the Solar Policy proposing to add 3000
MW solar power by 2015.
The State also complements its skilled manpower with salubrious working conditions, a peaceful
industrial climate, committed workforce and extremely competitive wage rates that offer
substantial cost savings. In short, when it comes to human resources, Tamil Nadu is the Number
1 in skilled manpower availability.

OBJECTIVES OF POLICY:

To position Tamil Nadu as the most preferred State for manufacturing, with a reputation
for efficiency and competitiveness and to attract incremental investments of over 10%
every year in Manufacturing
To enhance Tamil Nadus position in high technology industries including
aerospace, nano technology etc.,
To achieve rapid industrialisation of the Southern districts of Tamil Nadu
To achieve inclusive and sustainable industrial development in Tamil Nadu. To
create gainful employment opportunities for an additional 2.0 million
persons before 2016.
To double exports from Tamil Nadu by 2016.

STRATEGY:

To invest not less than US $ 30 billion, through private and public sectors,
in infrastructure development
To increase the power generation capacity adequately to meet the future demand by
commissioning Mega and Ultra Mega Power Projects
To establish a land bank of at least 53,000 acres throughout the State
To augment industrial water supply
To augment capacities for handling and safe disposal of industrial effluents and solid
wastes
To establish Corridors of Excellence
To improve Port connectivity; to upgrade the minor ports at Nagapattinam, Colachel,
Cuddalore and Manappadu as major ports and to upgrade other ports as Intermediate
ports
To augment social infrastructure like housing, health care, technical
education/skill development, etc. to support the manufacturing sector.
 INDUSTRIAL POLICY -2014:

POWER:
POWER SUPPLY TO INDUSTRIES
Inclusion of Investment made in captive power plants
VAT refund on Capital Goods for establishing captive power plants

WATER:
Promotion of desalination plants and waste water treatment and recycling
Road/Rail Network :
Widening of State Highways:
Industrial Corridors of Excellence
Promotion of Truck Terminals
Minor Port Development on PPP mode
Port connectivity
Multi-level car parking facility
LNG Terminal and Gas Grid
Heavy Engineering Hub:
New Industrial Parks:
Bio-Park
Provision of Power Sub-station
Industry-Institution Collaboration:
Technology Incubation centres
Subsidy for Quality certification / Patent registration
Promotion of R & D etc
 INDUSTRIAL POLICY OF
TAMILNADU GOVERNMENT2015

Tamil Nadu has emerged as the Second largest economy among Indian States in
2013-14 with a Gross State Domestic Product (GSDP) of Rs.4,80,618 crore at constant prices
2004-05 according to the datebook published in December 2014 by Union Planning
Commission. During 2013-14, Tamil Nadu has registered a growth rate of 7.29% much higher
than the All India Growth rate of 4.74%.

According to the recently published Annual Survey of Industries (ASI) for 2012-13 by Central
Statistical Organization (CSO),
Government of India, Tamil Nadu is ranked:
First among Indian states with the highest number of factories with
36,869 factories
First in terms of the number of workers employed with 16,02,447
workers
First in terms of the total number of persons employed (19,65,020)
Third in terms of Invested capital Rs. 2,92,260.06 crore

According to the ASSOCHAM report title States Emergence: A Comparative Analysis of

Growth and Development published in February 2015, Tamil Nadu was adjudged as the best
performing State in terms of eight out of nine development parameters like economy,
industrial development, combined infrastructure, power, roads, health, Income & Inequality and
Overall Development.

According to the Department of industrial Policy and Promotion (DIPP), Ministry of Commerce
and Industry, Government of India, the cumulative investment attracted by Tamil Nadu through
Industrial Entrepreneurs Memorandum (IEM) during the period May 2011 to June 2015 was
Rs.1,33,753 crore.

Tamil Nadu is set to emerge as the most industrialized State of India. With the objective of
catapulting the State to the higher growth trajectory, the State Government is organizing the
Global Investors Meet (GIM)-2015 on 9th and
10th of September 2015 at Chennai Trade Centre, Chennai. The State Government is
targeting to attract atleast Rs.1.00 lakh crore investment in Infrastructure, Manufacturing and
Services.
 INDUSTRIAL POLICY -2015:

STATE INDUSTRIES PROMOTION CORPORATION OF TAMIL NADU

LIMITED.
Establishment of Industrial Complexes/Parks/Growth Centres
Proposed New Industrial Complexes / Parks
Industrial Development in Southern Districts
Special Package of Incentives
Special Economic Zones
MoU Units
Infrastructure works in Industrial Complexes
Industrial Corridor of Excellence
Apparel Park at Irungattukottai
Footwear Component Park at Irungattukottai
Skill Development Centres
Construction of Dormitory
Environmental Protection
Greenery in Industrial Parks
Improvement of Ground Water
Industrial Infrastructure Consolidated Fund
Financial Performance
Nodal Agency Function
TRIL INFOPARK LIMITED
Aerospace Park
LNG Import Terminal
Plastic Industries Park
TICEL Bio Park III, Coimbatore
MEDI PARK Project
New Entrepreneur cum Enterprise Development Scheme (NEEDS)
Entrepreneurs Development Scheme
Wind Power Projects
Ariyalur Cement Unit
Welfare Measures extended to Employees
Manpower study and recruitment
Launching of Amma Salt in the open market
Production of Industrial Grade Salt
ETC
 INDUSTRIAL POLICY OF
TAMILNADU GOVERNMENT2016

According to the Global Economic Prospects published by the World Bank

in June2016, global economy continues to be sluggish with recessionary conditions. According
to this report, the world Real GDP growth in 2015 wasM 2.4% and it is expected to remain
sluggish in 2016 also with the Real GDP growth rate staying at 2.4%. The World Bank has
further predicted that the world Real GDP growth rate will improve to 2.8% in 2017.

According to World Bank, among the big economies, India has registered the highest growth rate
of 7.6% in 2015 followed by China with 6.9%. In 2016, Indias growth rate is expected to be
7.6%. Tamil Nadu, the second
largest economy among Indian States, remains as one of best performing States achieving a
growth rate of 8.79% during 2015-16.

Tamil Nadu is ranked first among Indian states in terms of exporting and operational SEZs.
During the year 2015-16, exports from SEZs in Tamil Nadu was Rs.82,717 crore. Tamil Nadu is
ranked first among Indian states in terms of quantum of exports from Special Economic Zones.

In addition to the investments attracted during TNGIM 2015, Tamil Nadu Investment Promotion
and Guidance Bureau, under the aegis of industries department, has facilitated 56 Non- MoU
projects through single window facilitation with an investment commitment of
Rs.11,282.52crore during the period from April 2011 to July 2016.

According to DIPP, at the end of April 2011,Tamil Nadu was ranked fourth amongst all states in
terms of actual FDI inflow which was Rs.33,024 crore. Whereas, by the end of March 2016, FDI
inflow has increased to Rs.1,18,547 crore, improving the ranking of the State to third. Thus,
during the period from April 2011 to March 2016, Tamil Nadu attracted Rs.85,523 crore in the
form of FDI (actual inflows). In terms of incremental FDI inflow, Tamil Nadu achieved an
unprecedented growth rate of 193.45% for the period between May 2011 to March 2016.
(Source: http://dipp.nic.in)
 INDUSTRIAL POLICY -2016:

Formation of New Industrial Complexes

Industrial Corridor Excellence
Madurai-Thoothukudi Industrial Corridor
Formation of 10MGD Tertiary Treated Reverse Osmosis (TTRO) Plant in
Sriperumbudur
Aerospace Park at Sriperumbudur
Integrated Textile Processing Park at Manakudi
Construction of Dormitory
LNG Import Terminal Project in Thiruvallur District
TRIL Infopark Limited at Taramani
TICEL Bio Park-III Project in Coimbatore
Polymer Industries Park Project in Tiruvallur District
Petroleum, Chemicals and Petrochemicals Investment Region
(PCPIR) in Cuddalore and Nagapattinam Districts
Aerospace Advanced Computing and Design Engineering Centre Project in
Kancheepuram District
Heavy Engineering Components Hub Project in Thiruvallur District
National Investment and Manufacturing Zone Project in Ramanathapuram District
Chennai Bengaluru Industrial Corridor (CBIC) Ponneri Industrial Node Development
Project
Biotechnology Venture Capital Fund
Financial Performance of TIDCO
Installation of Video Surveillance System
Green Development under Afforestation scheme
Implementation of 7th wage Board 12/3 settlement
Alangulam Limestone reserves reassessment
Production of Fortified Salts
Universal Salt Iodisation programme
Development of new salt works
Labour Welfare Activities
TAMIL NADU INDUSTRIAL GUIDANCE AND EXPORT PROMOTION BUREAU
Rotary Kiln Division (RKD)
Shaft Kiln Division (SKD)
 SUBMITED BY
S.DHANABAGYAM.
I MCOM