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The Tamil Nadu Government will continue its focus on attracting international investments into manufacturing sector and broad-basing industrial development across the State.
Presenting the Budget for 2011-12, the Finance Minister, Mr O. Panneerselvam said the Government will strengthen the manufacturing sector and catalyse the foreign investments into automobile industry, IT and other key areas. It is discussing with industrial houses to attract over Rs 21,500 crore of investments through 22 major projects.
Investors from Korea, Japan and Thailand have evinced interest in investing in the State particularly close to the major ports. The Government will facilitate these investment through exclusive industrial estates for industries from these countries. With Chennai emerging the hub of international investments, the State Government is concentrating on improving the urban infrastructure. It will launch two special programmes – a Chennai City Development Mission which will include the suburban areas for which it has provided Rs 500 crore and an Integrated Urban Development Mission for other cities and towns with Rs 750 crore.
A separate project for the industrial development of the Southern districts is in the pipeline involving creation of a self-sustainable industrial growth corridor on the Madurai-Tuticorin Highway. A detailed project has been prepared with locations identified for creating clusters of investment regions for manufacturing, agri business, knowledge bubs and tourism. These will be implemented in the Public Private Partnership mode.
MSME
Apart from large industries the Government is also looking at accelerating growth of micro, small and medium enterprises with additional incentives. The first step will be a 3 per cent interest rebate on loans provided by the Tamil Nadu Industrial Investment Corporation.
The Minister said the Tamil Nadu Small Industries Development Corporation has identified over 2,256 acres in 25 locations to promote industrial clusters for MSME. The activities of SIDCO will be revamped with land pricing policies reviewed and procedures simplified.
Power
To address the power shortage in the State, the Government will encourage private sector and joint venture investments to augment supply. The restriction and control measures including two hour power cut in practice now will be totally lifted by August 2012. Over 3,280 MW of additional capacity will be in place by March 2012. This will add to the installed capacity of 10,237 MW. The average availability now is about 8,000 MW against a demand of 10,500-11,000 MW.
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