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Land bank for industrial parks

— Photo: V. Ganesan

NEW INDUSTRIAL POLICY: Chief Minister M. Karunanidhi having a look at the document at the Secretariat in Chennai on Monday.

CHENNAI: The Tamil Nadu government will develop a land bank of 10,000 acres with quality infrastructure over the next five years to provide space for industrial parks, according to the new industrial policy released by Chief Minister M. Karunanidhi on Monday.

“The land bank will be mostly developed on dry and barren lands. Prime agricultural lands will be avoided,” the policy said. The government will also take steps to amend laws to enable automatic conversion of drylands from agricultural to industrial use.

Private industrial parks must directly purchase land, which should be barren, non-irrigated and dry, as far as possible. Proposals with more than 10 per cent wet land or double crop land will be rejected, according to the new criteria for an approved industrial park. Parks should be located at least 50 km away from the Chennai city limits and should not include more than 5 per cent of government land.

At least 10 per cent of the area in industrial parks developed by SIPCOT and TIDCO will be set apart for social infrastructure, such as skill development centres, financial services, housing, schools and hospitals. Another 20 per cent of allottable area will be reserved for small and medium entrepreneurs.

Special economic zones and industrial parks promoted by SIPCOT, TIDCO or private developers will all be given equal incentives and facilities. Parks located 50 km away from the city limits will be granted a back-ended Industrial Park Infrastructure Grant of Rs. 2 crore or 25 per cent of the investment in eligible fixed assets, whichever is lower. Such parks must attract at least 20 new manufacturing units with a minimum direct employment of 2,000 persons.

A back-ended state capital subsidy and tax exemption on power bought from the TNEB or from captive sources will be sanctioned for all manufacturing units, including raw-material based manufacturers. New manufacturing facilities and expansion projects located in Chennai, Tiruvallur and Kancheepuram, investing Rs. 350 crore over three years can avail themselves of a structured package of incentives, while the minimum investment for those outside those districts will be Rs. 250 crore. The minimum investment levels will be reduced by Rs. 100 crore in the case of electronic hardware units. Units which invest more than Rs. 1500 crore or which have been in the State for over ten years will receive extra benefits. In a press release, the government also promised extra concessions for firms which gave priority to local workers and followed its reservation policy.

Industrial corridors of excellence will be developed, first in the Chennai-Manali-Ennore and the Chengalpattu-Sriperumbudur-Ranipet corridors, and later in the Madurai-Tuticorin and Coimbatore-Salem corridors.

Developers investing Rs. 300 crore over three years in specific industrial infrastructure projects, including desalination plants, rail, road, port and water recycling infrastructure for SEZs and industrial parks, can avail themselves of a Rs. 2 crore subsidy.

All incentives for manufacturing industries under the new policy will also be applicable to agro-industries and agri-machinery and micro-irrigation equipment manufacturers. Special Agro Economic Zones will be promoted. A wine manufacturing policy will be announced soon and mega orchards of 50 hectares and above exempted from the Land Reforms Act for the cultivation of high value crops.

With the growing importance of the biotechnology sector, the government will announce an updated Life Sciences Policy and TIDCO will create a Life Sciences Innovation Fund. SIPCOT will develop a 2,000-acre Nanotechnology Park. To encourage clean and efficient energy technology, a Tamil Nadu Technology and Efficiency Upgradation Initiative will be launched through a TIIC-administered fund, which will offer soft loans to SMEs.

A number of skill development initiatives will be launched, including cluster-based, grass-root level and collaborative industry-institute schemes. The government is considering a Business Facilitation Act to formally empower and regulate single window clearance committees.

Through the new policy, the government aims to create 2 million additional jobs by 2011.

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