The Tamil Nadu government on Friday released the Industrial Policy 2014, which is aimed at strengthening the state as a manufacturing hub, and attracting incremental investments of over 10 per cent every year in the sector.
The policy, which is focused on infrastructure, skill and industrial development in the southern parts, is also looking at doubling exports by 2016 and creating employment opportunities for another two million before the year.
"This policy has innovative features with a focus on creating a business-friendly environment with world class infrastructure and a boost to the employment and skill levels obtaining in the state," said chief minister J Jayalalithaa while releasing the policy.
The state, which as on date has an installed capacity to produce 13,80,000 cars and about 3,50,000 commercial vehicles every year from Chennai, would enhance its position in high technology industries, including aerospace and nano technology.
The government would also give a special thrust to automobile and automobile components, renewable energy equipment manufacturing industries, aerospace industry and biotechnology and pharmaceutical as priority sectors, it said.
In the IT sector, the exports from the state stood at Rs 1,80,179 crore during 2012-13 and the government has set a target to double it by 2016. It would set up an exclusive Integrated Financial Service Centre, which would house leading national and international financial intermediaries, including banks, insurance companies, mutual funds, consultants and brokerages, to support the manufacturing sector.
The policy also has an objective to raise the investment in infrastructure from the existing 4-5 per cent of the GSDP to 10 per cent by 2015 and to 11.5 per cent from 2019 as envisaged in the Vision 2023 document.
The total investment envisaged in the 33 MoUs signed so far by the state government in its present tenure is Rs 31,706 crore with an employment potential for over 1,62,667 persons, said Jayalalithaa.
A high-power infrastructure monitoring committee would be formed under the chairmanship of chief secretary to approve industrial parks and related infrastructure, act as a single window committee and accord in-principle composite approval to all public private partnership (PPP) projects, which are not covered by the Tamil Nadu Industrial Development Board, and to address all policy issues relating to infrastructure projects.
The government would implement and commission the PCPIR in Cuddalore and Nagapattinam districts before 2015 after getting necessary approval from the Government of India, it said.
It has also detailed various incentives, classifying the districts into three - Class A including Chennai, Tiruvallur and Kancheepuram, Class B that includes 20 districts, and Class C which includes nine southern districts of Madurai, Theni, Dindigul, Sivangangai, Ramanathapuram, Virudhunagar, Tirunelveli, Thoothukudi and Kanyakumari. These southern states have a special incentive package under the policy.
The incentives for Class A and B include extra benefits for expansion projects from units, which are there for over 10 years, electricity tax exemption, stamp duty concession, environmental protection infrastructure subsidy and incentivising additional employment generation.
The TN Automobile and Auto Components Policy, 2014, which is the first of its kind in the state, is aiming to generate 500,000 jobs and make Chennai one of the world's top five auto sectors.
