The objective of the industrial policy is to achieve an annual growth rate of 15% in the manufacturing sector and attract investments worth ₹10 lakh crore and create employment opportunities for 20 lakh people by 2025
Tamil Nadu Chief Minister Edappadi K. Palaniswami on Tuesday unveiled the State’s new industrial policy 2021 the and MSME (micro, small and medium enterprises) policy, 2021
The objective of the industrial policy is to achieve an annual growth rate of 15% in the manufacturing sector and attract investments worth ₹10 lakh crore and create employment opportunities for 20 lakh people by 2025. The industrial policy also hopes to increase the contribution of the manufacturing sector to 30% of the State’s economy by 2030.
The MSME policy has set a target to attract new investments worth ₹2 lakh crore in the sector by 2025 and also create additional employment opportunities for 20 lakh persons.
Speaking at the event, Mr. Palaniswami said the new policies are aimed at giving a boost to new sectors like food processing and the industrial policy is designed to give more incentives to those creating job opportunities for transgender persons and persons with disabilities.
The industrial policy also offers land at 50% of its cost and other incentives for those setting up industries in 22 identified districts including the Southern districts and industrially-backward districts such as Dharmapuri and Perambalur among others, he said.
Mr. Palaniswami also said the MSMEs are currently given a capital subsidy of 25% or a maximum of up to ₹50 lakh, and this would be increased three-fold to ₹1.5 crore and the government would allocate ₹1,000 crore for further strengthening the role of The Tamilnadu Industrial Investment Corporation Ltd.
A total of 28 MOUs were signed on the occasion, with a cumulative investment of ₹28,053 crore with a potential for creating 68,775 jobs. These investments are across various sectors, including electric vehicles, wind energy, auto components, city gas and textiles amongst others.
Some of the major investments include a ₹7,948 crore investment by Elest Pvt Ltd for the manufacture of electric buses and electric trucks and batteries, which has potential to create 8,081 jobs and Tata Electronic’s ₹4,684 crore project in Krishnagiri to make mechanical enclosures for mobile phones with the potential of creating 18,250 jobs. Grasim Industries, part of Aditya Birla Group has signed an MoU for investing ₹750 crore for manufacturing paints.
The Chief Minister also inaugurated 8 completed projects at an investment of ₹3,377 crore and employment potential for 7,139 persons.He also laid the foundation stone for 10 new industrial parks and estates.
In total, 46 projects with an investment of ₹33,465 crore providing employment opportunities for 2,19,714 persons were launched, according to an official release.