A host of incentives and subsidies including tax exemptions are being offered to investors coming to Tamil Nadu with the intention of starting a factory cum business.
For setting up new plant or expansion of an existing facility (irrespective of its location), a back-ended capital subsidy and tax exemption on power purchased from Tangedco are offered. Besides, a 50% concession on stamp duty on lease or sale of land for industrial purposes will be given for projects at industrial parks promoted by Sipcot.
Some industries like leather and chemicals which set up effluent treatment plants (ETFs) and hazardous waste treatment, storage and disposal facilities (HWTSDFs) will b eligible for environment protection subsidy of $50,000 or 25% of the cost of setting up of these plants, whichever is less.
Both standard and structured incentive packages are usually applicable to mega projects in the state.Key policy objectives
Top officials will hand hold investors willing to do business in the state and help them clear procedures like filling forms, getting permissions and no-objection certificates et al., without hassles for a trouble-free experience while starting their venture.
A common application need to be filled (also in online format) by investors with the Documentation and Clearance Centre (DCC) in Guidance Bureau. One can track the status of their application form through online and will enable the bureau to share information with other departments and get all clearances from them without delay.
Further, the Guidance Bureau will liaise with other agencies for speedy clearances and brief the potential investors on their status of their pending application. It may be noted that a Business Facilitation Act was passed to empower the single window clearance process.
Tamil Nadu is the second largest economy after Maharashtra and ranks sixth in terms of population.
The state has the largest number of factories in the country. But despite so and having employed the most workers in India, the state is ranked fourth in terms of net value-added in the factory sector.
In order to boost productivity, the government must address issues plaguing the industrial sector - frequent power cuts, labour unrest, rising input cost and finally, the difficulty in finding a ready market for their products.
Not to be left out of the competition in wooing investors, Tamil Nadu has convened a Global Investors Meet (GIM) on 9-10 September, 2015 with a one-pointed agenda of attracting foreign capital in setting up their enterprise across verticals for creating employment and driving economic growth.