Tamil Nadu government on Tuesday introduced a new industrial policy 2021 to accomplish an annual development price of 15% in the manufacturing sector though attracting investments worth Rs 10 lakh crore and generating employment possibilities for 20 lakh individuals by 2025.
Aimed at escalating the contribution of the manufacturing sector to 30% of the state’s economy by 2023, the new policy set to consolidate Tamil Nadu’s position as a top international manufacturing hub by means of inclusive and regionally balanced development. The two new policies come at a time when the ball is about to set rolling for electing a new government by May second week. Tamil Nadu government has also released a new MSME policy.
The state is the second-biggest contributor to the national economy accounting for 8.4% of India’s GDP and has witnessed constant development more than the years with the GSDP expanding at a true CAGR of 8% considering the fact that 2014 when the final policy was released.
The new policy incorporates current developments such as relocation of FDI in the aftermath of Covid-19, development of new sunrise sectors, and regional and national developments. Tamil Nadu reiterates its commitment to the improvement of new industries, creation of jobs, improvement in labour excellent, fostering innovation, and making certain inclusive and balanced development, according to the policy document.
The policy gives a structured package of incentives for firms seeking to invest more than Rs 500 crore in the state. Tamil Nadu permits a larger level of customisability vis-à-vis other states with investors in a position to pick out from 4 distinct subsidy models – SGST reimbursement, fixed capital subsidy, versatile capital subsidy and turnover subsidy. SGST reimbursement model permits for firms manufacturing finish-use solutions to avail for one hundred% reimbursement of gross SGST payable in the state more than 15 years, it stated.
For other firms, whose sales may possibly not be restricted to the state, the policy presents up to 40% of the EFA in the kind of fixed capital subsidy or versatile capital subsidy or turnover subsidy more than a corresponding period respectively. This policy gives a larger set of incentives for firms wishing to invest in Sunrise sectors.
The firms will be supplied with a bigger instruction subsidy, R&D reimbursements, patents and certification fees, amongst other individuals. To attract firms wishing to relocate and realign their provide chains, a larger set of incentives are supplied, such as a transportation subsidy of Rs 10 crore.
Further, the policy also gives straightforward access to credit for investors. Investors can pick out if they want to companion with TIDCO as an equity companion for ultra-mega projects to decrease danger, avail the Industrial ecosystem fund to finance final mile connectivity infrastructure, avail R&D Technology Fund for R&D activities in sunrise sectors, avail the venture capital fund for new ventures in Sunrise sectors, avail term loans from TIIC up to Rs 40 crore.
The state government is also creating a new single-window portal which will provide more than 180 services. The state is also implementing a organizing technique which gives industrial units set up in government agency promoted or partnered industrial parks, on the web organizing permission and constructing approval without the need of inspections.