The State Government of Tamil Nadu has announced a new Industrial Policy 2021. The new Policy factors in various inputs received from the investor community and hence is now qualitatively more investor-friendly.
2. It offers a host of incentives, inter alia:
Structured Package - As a path breaking initiative, the number of “C” Districts have been expanded to cover 22 districts, which will usher investments to all regions of the State. Projects that are Mega and Ultra-Mega in “A” Districts, or Large, Mega and Ultra-Mega in “B” and “C” Districts shall be eligible for Structured Package of Incentives. The Structured Package of Incentives includes:
Incentives for Logistics Infrastructure -50% Concession on Stamp duty payable on lease or purchase of land/shed/buildings meant for industrial use shall be offered in parks promoted by SIPCOT in “A” & “B” Category Districts. In all “C” districts, 100% Concession on Stamp duty payable on lease or purchase of land/shed/buildings meant for industrial use shall be offered in parks promoted by SIPCOT/SIPCOT JV/ SIDCO.
Incentives for Sunrise Sector - To provide a thrust to the sunrise sectors, a special package of incentives has been proposed in this Policy. The Government of Tamil Nadu shall encourage the adoption of innovative technologies such as Industry 4.0 for focus and sunrise sectors under the Research and Technology Adoption Fund. Further, incentives shall be provided to industries in sunrise sectors and emerging segments that seek to promote advanced technologies.
Incentives for Foreign Direct Investment - The State is implementing new initiatives such as completely digitizing government-to-business (G2B) interactions through the development of a New Single Window Portal, development of Central Inspection System to monitor compliance inspection, Deemed Clearances, Comprehensive Land Portal, Construction Permit Portal, creation of Investment Facilitation Desks across countries and sectors and automatic renewal of select licenses. All enterprises with a proposed investment in ‘plant and machinery or equipment’ that exceeds Rs.50 cr., and turnover that exceeds Rs.250 cr. are eligible to make use of the current Single Window Portal. The current Single Window Portal offers 38 services/ clearances pertaining to 14 Departments.
Incentives for Industrial Parks - SIPCOT now allows allottees who have used up 50% of their allotted area, to construct Plug & Play facilities and sublease it to others . A special incentive package shall be provided to developers of private industrial parks in this Policy. Investor Facilitation Desks have been set up to provide information to entrepreneurs regarding the scope of setting up of industries in the state of Tamil Nadu, give them guidance on the procedural aspects of starting industries, incentives and facilities available and, assist them in resolving any problems they may face in setting up an industry. Desks for Taiwan and the USA have already been created. A dedicated desk and portal for Non-Resident Tamils – “Yaadhum Oorae” has been constituted to encourage and facilitate investments in Tamil Nadu by the substantial Tamil diaspora spread across the globe. The State also has joint working committee agreements with Japan, U.S.A., U.K., U.A.E., Korea, and Germany to further international cooperation for industries.
Incentives for Sub-Large Projects - Industries/developers will also be permitted to establish Sub-Stations, transmission, and distribution power networks on their own if they comply with technical specifications of TANGEDCO / TANTRANSCO. - Uninterrupted Power Supply shall be provided through a dedicated dual network. - Digital meters with AMR facility will be provided at the feeder level. - Industries / developers will be free from power cuts, peak hour load restrictions, power holidays, and other similar restrictions.
Incentives for R&D Projects High-level implementation guidelines have been provided in this Policy and detailed operational guidelines/clarifications will be issued from time to time - As one of the pioneering States in R&D, this Policy includes R&D as part of Eligible Fixed Assets. The Government of Tamil Nadu shall provide incentives to R&D Projects in the State to further the development of intellectual property and adoption of technology in industries. Stand-alone R&D projects shall be eligible for the following Incentives, in addition to the Standard Incentives, subject to the following conditions: - Must have a Minimum Investment of Rs. 50 cr. in Eligible Fixed Assets and creation of Employment for 50 persons - Clearly demarcated facilities inside or outside the industrial unit. - Must be located in Tamil Nadu - Must be Registered with the Department of Scientific and Industrial Research, Government of India (DSIR) 16.1 Land Cost Incentive for Standalone R&D Projects R&D projects shall be given an incentive of 50% of the cost of purchase or lease of land for up to 20 acre, subject to a ceiling of Rs. 50 lakh/acre. This shall be provided as a reimbursement upon commencement of the R&D.
Apart from this there are several other incentives :
- SGST Refund on Capital Goods
- Capital Subsidy
- Electricity Tax Incentive
- Stamp Duty Incentive
- R&D Training Incentive
- Land Cost Subsidy
- Transport Subsidy
- Investment Promotion Subsidy