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Industrial Policy Of Tamil Nadu |
Tamil Nadu
Prior to the initiation of economic reforms the regulatory maze of licensing and controls inhibited the growth potential of States. The New Industrial Policy announced by the Government of Tamil Nadu in 1992 provided the broad policy framework for change. Many developments have occurred over the decade, with the economy going through the pangs of improving cost competitiveness and some core sectors rising to meet the challenges. In the wake of the Policy enunciated in 1992, Tamil Nadu emerged as one of the most important investment destinations by attracting a large number of projects. Globalization with unequal pricing of resources, which drives growth, and the skewed distribution of the factors of production among countries have brought in their wake both general and specific unanticipated shear effects. Recession became a feature of global economy in the late nineties and innovative management practices, particularly in the sourcing of manpower, materials and finance to cut costs are being taken recourse to. Under these circumstances, it is important that the State accords due weightage to the basic strengths that are part of natural endowments, or have been built over time in the shape of human resource availability and skills, and lays infrastructure foundations of various forms. In summary, the role of the State has to necessarily transform into one that facilitates industry to increase its skills, optimize its resources and raise its competitive power in a balanced deregulated environment. Tamil Nadu is the third largest economy in India with a State Domestic product of Rs.1,53,000 crores (Rs.1530 billion) at current prices (2002-03).
Incentives:
- Investment subsidy of 20% of fixed assets (up to Rs 2,000,000) for units in most backward areas
- Investment subsidy of 20% (up to Rs 2,000,000) of fixed assets for new electronics and leather units
- Capital subsidy of 10% of fixed assets for medium-scale units in thrust-sector industries
- Capital subsidy of 20% of fixed assets for small-scale units in thrust-sector industries
- Subsidies of between Rs 2,500,000 and Rs 1 crore for projects with investment up to Rs 50 crore
- Power subsidy of up to 40% for units located outside the Chennai metropolitan areas
- 15% reimbursement (up to Rs 500,000) of the cost of generators installed for captive use
- An additional subsidy of 5% (up to Rs 500,000) for new units with more than 30% women employees
General infrastructure
Salient general infrastructure features are:
Transportation: Tamil Nadu has three major ports at Chennai, Tuticorin and Ennore. Chennai Port container terminal has now attained a turnaround time of less than a day. Tamil Nadu has a high road density network with over 1.50 lakh Km of surfaced roads and a rail network of about 4180 Km. It has three international airports with good connectivity to USA, Europe, Middle East and South East Asia.
Power: Tamil Nadu has about 8250 MW of installed generating capacity to supply quality power at competitive tariff rates.
Telecommunications (Including Information Technology): Tamil Nadu has excellent communication facilities with a 100% digital exchange network in telecommunications; internet connectivity of 4.0 lakh connections, a bandwidth of 8.4 terra bits per second (tbps) increasing to 13 tbps - one of the largest in the world.
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