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  Tamil Nadu
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Tamil Nadu
Please click here to view the draft National PPP Policy and to give comments and suggestions.

Tamil Nadu

 

Policy

 

Industrial Policy 2003

The state policy aims to create an investment friendly climate by ensuring harmonious labour relations consolidating the industrial base and developing manufacturing capabilities. To strengthen the infrastructure and boost different sectors, the government of Tamil Nadu drafted its state policy in the year 2003 with focus on:

  • Achieving a growth rate of 8 percent
  • Formulating new strategies to boost FDI and to enhance the manufacturing capacity
  • Strengthening the existing industrial base and consolidating gains in the competitive domestic and export markets
  • Developing infrastructure by establishing strategic public-private partnerships

The New Industrial Policy 2007 aims to develop quality infrastructure including social infrastructure like skill development centres, business centres, housing, restaurants, financial services, schools and hospitals. As per the provisions of the new policy, to bring about equitable regional development, proposals for SEZs in industrially backward areas shall be given priority.

Infrastructure Policy

As per the policy guidelines, the state government envisaged to make Tamil Nadu an attractive destination for the investors by developing its infrastructure. For achieving that, the policy encouraged the participation of private players in the infrastructural development. As per the provisions laid down under the policy, the government established an 'Infrastructure Fund' has been set up in order to facilitate public-private partnerships in this sector. The fund has been endowed with an initial corpus of US$ 4.1 million and will finance a number of infrastructure development initiatives. Reaching out by facilitating business Tamil Nadu has been able to attract a significant portion of the total FDI inflow in the country.

The state government has taken up many initiatives to ease the process of investment and make it easy for the outside investors to enter into the state. Some of the measures include:

  • Custom made packages for investment in fixed assets
  • Capital subsidies and exemption in Electricity Tax to companies investing in fixed assets.
  • Exemption from entry and sales tax on imports of manufacturing units
  • Greater Subsidy for newly established industrial units located in government industrial parks
  • Grant of incentives for registration of patents through one-time reimbursement

The Government of Tamil Nadu has established single window system to accord all pre-project clearances at the state level. The investor is merely required to file an application to a ‘guidance’ unit that subsequently secures state approvals from various agencies. The government has set up the State Level Investment Promotion Board (SIPB) to monitor and speed up the progress of all the mega projects involving investment of US$ 20.5 million. Also, Project Approvals Authority (PAA) has been set up to oversee the projects with investment less than US$ 20.5 million

e-Governance

A 'Special Working Group' (SWG) on e-Governance, under Tamil Nadu Information Technology Council (TNITC) has been set up to streamline government functioning. Transparency is to be sought by linking government databases to public domains. A legislation has been introduced to make inter-interoperability between governments mandatory.

SEZ Policy 2003

The government has laid down guidelines regarding the Special Economic Zones (SEZs) in its policy as per which the state envisages to provide legislative support to the SEZs. It also aims to ensure that the supply of power and water to these SEZs is adequate and also that single window clearance system is implemented with respect to all the SEZ units.

IT Policy

Tamil Nadu has shown remarkable progress in the IT sector. In 2005-06, there were 1,437 units registered with the Software Technology Parks of India (STPI). A year later, 162 new companies were registered. Several top IT companies have set up their units in Tamil Nadu from where they are carrying out their operations. The state also has large IT campuses. The state government has formulated its IT policy in which it aims to:

  • To set up an e-Governance Training Academy to provide training to the officers and staff of all Government Departments
  • To establish IT parks in Coimbatore, Madurai, Trichy, Salem and Tirunelveli
  • To establish a National Centre of Excellence called “Indian Institute of Information Technology, Design and Manufacturing”

Industrial Policy 2003

The state policy aims to create an investment friendly climate by ensuring harmonious labour relations consolidating the industrial base and developing manufacturing capabilities. To strengthen the infrastructure and boost different sectors, the government of Tamil Nadu drafted its state policy in the year 2003 with focus on:

ITES Policy

The main guidelines as specified in the ITES Policy of the state are:

  • To encourage investments by foreign players in the ITES sector in Tamil Nadu
  • To build the capability of Human Resources specific to ITES sector
  • To create world class infrastructure for IT and ITES
  • To provide a framework for protection of intellectual property and data
  • To create more jobs in the ITES sector
  • To provide a conducive environment for the sector by reducing the ambiguities in regulations and increasing opportunities

Biotech Policy

There is great market opportunity for biotech products in Tamil Nadu. The state has a forest cover spreading over 22,500 sq km. The state also has one of the largest coastlines, which again presents opportunities for Marine Biotechnology. The government of Tamil Nadu has formulated certain guidelines in its biotechnology policy as per which it envisages to:

ITES Policy

The main guidelines as specified in the ITES Policy of the state are:

  • To create Biotechnology Enterprise Zones (Bio-Valleys)
  • To build human resources in the biotech sector
  • To create technology fund for biotechnology sector
  • To establish Tamil Nadu Biotechnology Board
  • To regulate facilitation for establishing a Biotech entity for commencing research activity;

Textiles Policy 2006-07

The state government has formulated textile policy to boost its textile sector and to bring about greater quality to meet the global standards. The policy aims to give thrust to exports and encourage textile clusters. As per the policy, the state is laying emphasis on:

  • To enhance the quantity and quality of textiles and meet the needs of both domestic as well as overseas market, taking into consideration the industry’s potential for employment
  • To identify markets, products for each market, inputs required, technology, human and financial resources required to meet the growth in the industry.

Tourism Policy

The tourism department of Tamil Nadu has come out with its tourism policy with the aim to retain the tourists for a longer period, attract new tourists and to make systematic effort to upgrade the infrastructural facilities.

The key guidelines outlined in the policy are:

  • To participate in International Travel Marts to attract tourists
  • To promote rural tourism
  • To select certain tourism destinations and improve their infrastructure
  • To develop Eco-Tourism circuit
  • To establish sculptors park for sculptors and artisans in Mamallapuram.
  • To introduce “Hop on - Hop off” tours in Chennai
 

Content Source: www.ibef.org

 
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