Tiny, small and medium industrial sector is set to get a fillip with the Tamil Nadu Government announcing a number of incentives and support for investments in the sector.
Space will also be allocated at competitive prices to support the sector.
Tamil Nadu Chief Minister J. Jayalalithaa today announced in the Assembly that the subsidy on plant and machinery for tiny, small and medium scale enterprises will be hiked to 25 per cent from the prevailing 15 per cent.
The Small Industries Development Corporation (SIDCO) will build a 2,000-acre land bank for allocation to tiny and SME enterprises.
Land pricing policy
SIDCO will revamp its land pricing policy to adopt a ‘no profit’ approach. It will also allocate land and factory space on a 30-year lease to the tiny and SME units. The industrial units will be given an option to buy the space at the end of the lease period.
A single window clearance committee will be formed to handle the initial paper work involved in obtaining clearances and no objection certificates to start a business.
Land development
To provide an opportunity for small units to come up close to their larger counterparts for mutual benefit, the State Industries Promotion Corporation of Tamil Nadu, the agency that sets up industrial estates for large units, will earmark 20 per cent of its industrial space for allocation to the tiny and SME sector.
It will handover the land to SIDCO at rates appropriate for the sector, which will in turn will develop the land for the tiny and SME units.
Subsidy for industrial units
To encourage industrial units to shift out of cities and urban areas, the Chief Minister said the Government will provide a 75 per cent subsidy up to a limit of Rs 15 crore to provide electrical connection, water supply, exhibition and marketing facilities and other common infrastructure to private sector if it sets up industrial estates.
The Government will also extend a subsidy of 50 per cent up to a limit of Rs 10 crore for private agencies and industrial associations that come forward to set up industrial parks.
SIDCO will take 10 per cent equity in private industrial estates if any unit or industry body sets up such facilities.
It will set up a multi-storeyed industrial complex at Thirumazhisai to the west of Chennai at a cost of Rs 20 crore. This will help address the high land cost.
The State Government will take an additional Rs 16 crore stake in SIDCO to support its initiatives to encourage the sector, she said.