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Tamil Nadu Unveils New Industrial, MSME Policies To Boost Industrial Growth and Create Employment in the State; All You Need To Know About the New Policies

Chennai February 17: With an aim to boost industrial growth by attracting more investments, the state government of Tamil Nadu launched new industrial and MSME policies. The new policies are aimed at providing further impetus to the growth of industries in the state by attracting more investments and also offering sops for development in the industrially backward districts. Tamil Nadu  Chief Minister K Palaniswami launched new industrial and MSME policies on Tuesday. Under the new Industrial Policy 2021, the Tamil Nadu government targets to attract Rs ten lakh crore investments in four years and create employment opportunities for 20 lakh people by 2025 in the state.

All you need to know about the new MSME policies in Tamil Nadu:

  1. The MSME (Micro, Small & Medium Enterprises) Policy targets new investments worth Rs 2 lakh crore and job opportunities for 20 lakh people by 2025.
  2. The Chief Minister said that the MSMEs capital subsidy will be increased to Rs 1.5 crore from the present Rs 50 lakh, adding that the state has attracted a total investment of Rs 6.85 lakh crore in 10-year period.
  3. Apart from achieving an annual growth rate of 15 percent in the manufacturing sector during the policy period, the policy has set a target to increase the contribution of the manufacturing sector to 30 percent of Gross State Value Added (GSVA) by 2030.
  4. The scope of projects extends to industrial units, sunrise sectors, R & D projects, industrial park developers, warehousing and logistics, and FDI investments (relocation projects).
  5. Among the numerous benefits, the policy encourages investors to choose their structured incentive package model providing higher flexibility Apart from encouraging balanced regional industrial development, it encourages higher participation of women, differently-abled, and transgenders in the workforce, according to the policy document.
  6. Speaking on the occasion, the Chief Minister said the Industrial Policy would further reinforce Tamil Nadu as an ideal global investment destination while the MSME policy would give a further fillip to entrepreneurs in the next five years.

Adding further, Palaniswamai said that several concessions including land at 50 percent discounted price, will be provided to the entrepreneurs starting ventures in the 22 industrially backward districts, including the southern districts, Dharmapuri, Perambalur and Nagapattinam.

Meanwhile, the chief minister laid foundation stones for six industrial estates of TANSIDCO in various districts that would help generate employment to 13,300 people, besides SIPCOTs four new industrial parks on an extent of 3,977 acres at Manapparai, Manallur, Oragadam, and Dharmapuri.

As many as eight completed projects were inaugurated eight with an investment of Rs 3,377 crore and employment potential for 7,139 people, an official release said. Totally 46 projects for an investment of Rs 33,465 crore that would ensure jobs to 2,19,714 people were launched.

Also, MoUs for 28 projects entailing an investment of Rs 28,053 crore were signed, it said. These projects, including a Rs 4,684 crore project to manufacture mechanical enclosures for mobile phones by Tata Electronics project in Krishnagiri, announced earlier will create employment for 68,775 people, the release said.