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. The highlights of the new Industrial Policy
are:
• Structured
Package - As a pathbreaking 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: • Investment Promotion Subsidy • Standard Incentives • Training
Subsidy ◉ Electricity Tax Incentive • Land Cost Incentive ◉ Stamp Duty Incentive • Interest Subvention ◉ Green Industry Incentive • SGST Refund on Capital
Goods ◉ Quality Certification Incentive ◉ Intellectual Property Creation Incentive.
• 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
Caracas
25.02.2021
