New industrial policy woos investments in southern districts

Chennai:

In a bid to woo investments in the southern districts, Tamil Nadu government has come out with a special package for nine districts under its new industrial policy.

The policy document states that the package for the nine southern districts – Thoothkudi, Theni, Tirunelveli, Madurai, Virudhnagar, Dindigul, Sivaganga, Ramanathapuram and Kanyakumari – would be higher than the package available for other districts.

Investments worth Rs 500 to Rs 1500 crore is needed to avail of incentives under mega project in Chennai, Tiruvallur and Kancheepuram districts and Rs 350 crore to Rs 1,000 crore for remaining 20 districts.  But to get a mega project status and avail incentives in the southern district, the investor has to invest above Rs 200 crore.

Interestingly, the government is also providing a back-ended capital subsidy and electricity tax exemption for investments in the southern districts besides 50 per cent stamp duty concession for projects located other than industrial parks promoted by SIPCOT. In the case of ultra mega projects and the projects located in SIPCOT Industrial Parks this will be 100 per cent.

Interestingly, the state government is offering structured package of incentives for investment in southern districts by classifying projects into mega (Rs 200 to Rs 500 crore), super mega A (Rs 500 to Rs 1500 crore), super mega B (above Rs 1500 to rs 300 crore and generating employment of 350 in six years) and ultra mega (above Rs 3000 and creating employment of 500 in seven years).

These include net output value added tax and central sales tax paid will be given as investment promotion subsidy or soft loan for 10 years, 12 years, 14 years and 16 years as per the classifications from the date of commercial production. Investments below Rs 200 crore are also eligible for receiving Valu added tax (VAT) .

The government is also planning to allot lands for starting new industries in southern districts where lands in SIPCOT parks are not available. The policy document states that under this initiative, the minimum area required by the investing company shall be atleast 25 acres and the investment shall not be more than Rs 50 crore.

“The lands required by the company shall be barren, non-irrigated and dry land to the extent possible. Land requirement with more than 10 per cent of wet lands will not be entertained,” the document stated.

The state will also provide uninterrupted power supply to projects set up in southern districts if they are covered under memorandum of understanding besides special package of incentives to the new investments from the existing or prospective entrepreneurs in existing or new SIPCOT industrial parks