Date:17/10/2008 URL: http://www.thehindu.com/2008/10/17/stories/2008101759720800.htm

Tamil Nadu

State to offer incentives to job-intensive industries

Special Correspondent

Nokia Siemens Network manufacturing facility inaugurated

CHENNAI: Tamil Nadu will unveil a policy to provide a special package of incentives to employment-intensive industries without putting any condition on investment, Chief Minister M. Karunanidhi announced on Thursday.

The government was encouraging investments in employment-intensive industries. “To fulfil this goal, we are bringing out a policy to provide a special package of incentives to employment-intensive industries without putting any condition on the investment. I hope that this initiative will lead to creation of more jobs for our youth,” he said, inaugurating a manufacturing facility for Nokia Siemens Networks (NSN) near here. Mr. Karunanidhi said the government was taking the industrialisation process to other parts of the State, especially the southern parts.

Apart from Chennai region and the Coimbatore-Erode belt, the new investment proposals showed that Cuddalore, Tiruchi and Tirunelveli-Tuticorin were emerging as new growth centres, which would have ripple effects in the surrounding districts. Thus, the whole State would benefit from the fruits of industrialisation, he said.

The government had entered into 21 MoUs since May 2006 for setting up new projects. The total investment in those projects would be Rs.31,300 crore and these were expected to provide jobs to about 1.93 lakh persons.

Just over a year and two months after land for setting up a Rs.300-crore manufacturing facility for Nokia Siemens Networks was handed over by SIPCOT in July 2007, and barely three months after the company signed a Memorandum of Understanding with the State government, the Chief Minister inaugurated the facility on Thursday.

“I am never satisfied with mere signing of MoUs,” Mr. Karunanidhi said at the function at the plant site in Oragadam. “Often, I enquire with the Industries Secretary about the progress of these projects. I feel happy only when he says that the project is ready for inauguration. I am happy today because Nokia Siemens is ready to start its production within a short period and will provide employment to nearly 500 persons. I hope that the management of Nokia-Siemens will give priority to the local people in employment.”

NSN CEO Simon Beresford Wylie said with the proximity to the local market, the company hoped to improve its responsiveness.

Union Minister for Communications and Information Technology A. Raja said technology SEZs had demanded extension of the sunset clause for one more year.

The issue would be taken up with the Prime Minister and the Union Finance Minister, he said.