The Tamil Nadu chief minister M Karunanidhi today unveiled the state's New Industrial Policy 2007, which apart from announcing new incentives to take investments away from Chennai to other districts of the state, also aims at doubling exports to reach $30 billion by 2011.The policy outlines a Vision 2011 programme, under which the state will aim at creating an additional two million jobs by 2011, by when the contribution of the manufacturing sector to the GSDP (gross state domestic product) is expected to go up to 27% from the present 21% and the total exports of the state are expected to reach Rs 140,000 crore from Rs 66,856 crore ($14.5 billion) in 2005-06.As per the new policy, the package of incentives, which are offered to the new manufacturing units, will be extended to the expansion projects by the existing companies in the state, a move aimed at supporting the local industry.New manufacturing units, both from new players and existing companies, to be set up in any other district other than Chennai, Thiruvallur and Kanchipuram on investments exceeding Rs 250 crore over a period of three years will be eligible for a structured package of incentives to be decided on a case-to-case basis, with due weightage to investment, job generation and attracting further investments from vendors and ancillaries. In the case of Chennai, Thiruvallur and Kanchipuram, the minimum investment limit will be Rs 350 crore.Existing industrial units in existence for over 10 years in the state will be given suitable extra benefits for expansion projects over and above normal package of incentives, subject to investment amount.In the case of electronic hardware units, the minimum investment limit will be Rs 150 crore within a period of three years for setting up the projects in other districts while the investment limit will be Rs 250 crore for projects in Chennai, Thiruvallur and Kanchipuram districts.New or expansion manufacturing projects with investments of over Rs 1,500 crore will be trated as super mega-projects and eligible for incentives over and above the normal incentive package. It is to noted that Tamil Nadu government had announced an ultra-mega integrated automobile projects policy for automotive projects investing Rs 4000 crore or more, a few months ago.The policy also envisages raising the state to a position of pre-eminence innovation and high technology by offering subsidies. It also lay emphasis on improving the competitiveness and efficiency of SMEs and agro-based industries for increasing value addition and giving better income for farmers.The other new initiatives announced include among others, development of industrial corridors of excellence, Nanotechnology industrial park, grass-root level and cluster-based skill development programmes and incentives for industrial infrastructure projects.
