To boost investment in the southern districts, the Tamil Nadu government has come out with a new incentive package. Seven southern districts of the state are likely to attract investments to the tune of over Rs 34,000 crore.
M F Farooqui, principal secretary – industries department, said based on a Centre for Monitoring Indian Economy (CMIE) report, Tuticorin is likely to get Rs 14,860 crore followed by Madurai at Rs 4,300 crore and Tiruchy Rs 15,000 crore. He was speaking on the sidelines of Southern Prosperity through Enhanced Economic Development (SPEED), organised by the Confederation of Indian Industry here.
The new incentive package envisages soft loan with 0.1 interest rate to companies that invest from Rs 50 crore to Rs 100 crore. For investments between Rs 100 crore and Rs 200 crore, it will give back the value added tax (VAT) as soft loan while for over Rs 250 crore, the government will pay back the entire amount of VAT as subsidy to the company.
Farooqui said the government would soon offer a structured incentive package to companies investing here and other parts of Tamil Nadu, except Chennai, Kancheepuram and Thiruvallur, to generate large-scale employment.
R Dinesh, chairman, CII Madurai zone, and joint managing director, TV Sundaram Iyengar & Sons, said in the last 10 years the southern districts had seen three-fold growth. These districts contributed Rs 2.5 lakh crore last year to the state gross domestic product.