Industries Department 

POLICY NOTE - 2002-2003

DEMAND No. 26

INTRODUCTION

Taking cognizance of the prevailing competitive environment among the various States, the Government is formulating a New Industrial Policy with many innovative features to promote industrial development and create an industry-friendly environment to enable the State to achieve No.1 position in industrialisation in India. The New Policy  will concentrate on providing incentives to Industries for setting up new initiatives, promoting employment, ensuring  percolation of benefits of industrialisation to different regions of the State and in particular to under developed districts.  It aims at achieving a growth rate of 10% during the plan period of 2002-2007.  Special emphasis on development of thrust areas like Bio-technology, Information Technology, Telecommunications, Pharmaceuticals, Food Processing etc. will be one of the key features of the Policy.  Yet another notable feature  is the promotion of Agri Export Promotion Zone which would provide strong support for agricultural development in non-farm crops.  Activities of the department through its different promotion agencies will be to achieve these objectives. 

2.   A High Level Committee chaired  by the Chief Minister with representatives from various Chambers of  Industry will meet periodically to analyse the scenario prevailing and to take corrective steps and necessary policy initiatives. 

3.  One of the main failings of the State in industrialisation has been the poor percentage of conversion from announcement / proposal to implementation and culmination to fruition.  The Executive Committee under the Chairmanship of Chief Secretary will coordinate the efforts of Government and Confederation of Indian Industries (CII) and focus on specific steps needed to accelerate industrial  development,  simplification of procedures for approvals and inspections etc.           

4.  Export Promotion will be another key area that will receive the attention of the Government.  The Committee constituted under the Chairmanship of the Chief Secretary would meet periodically to assess the performance of the different  sectors of industries oriented towards exports in order to identify the bottlenecks  and find solutions  to relieve such impediments.  Drawing up of a shelf of infrastructure programmes to smoothen the flow of exports will be an important  area of operation of the Committee. Further, an NRI Cell has been  created  in the Guidance Bureau to give special attention to the prospects of attracting Tamil NRI investment into the  industry in Tamil Nadu.           

5. The Government will give focussed attention to the development of Special Economic Zones.  Already the Hi-tech Park at Nanguneri is proposed to be developed as a Special Economic Zone.  The State Government’s Policy in development of Special Economic Zone will be formalised shortly.  It would also endeavour to set up such Zones making use of the new port facilities available at Ennore as well as the concentration of units in certain commodities like Leather, Garments  etc. in Tamil Nadu. 

6.  It would be the objective of the Government to create infrastructure comparable to international standards as it exists  in the South East Asian countries so that investments from foreign countries could be easily  attracted. In order to create infrastructural facilities specially  an Infrastructure Investment Board would be constituted.  This would undertake raising of resources for such projects and provide statutory backing to promote private-sector investment in these areas. 

7.  Setting up of the Bio-tech Park, and construction of the Second Software Park will be the major projects that will be implemented by Tamilnadu Industrial Development Corporation Limited (TIDCO) in the current year.  TIDCO will join hands with Jurang Town Corporation (JTC) to take up the construction of the Second Software Park.  It  will also enter into an agreement with Genome Institute of Singapore for setting up research facility in the Bio-tech Park. M.G.R. Knowledge  City will be launched  with the commencement of work for setting up of the Research  Institutions in collaboration with Indian Institute of Technology (IIT), Madras.  Similar ventures in Bio-tech area are contemplated by TIDCO.  Implementation of Winery Project in Theni District, Marine Bio-technology Park in Kancheepuram District,  Medicinal Park near Dindigul are other initiatives that will be activised.  An MoU has been signed with APEDA to develop Agri Export Zone in  Dharmapuri District for Floriculture. 

8.  SIPCOT will step up its marketing activities in the disposal of lands in its possession in different parts of the State.  Siruseri Software Park will receive greater attention.  Development of Apparel Park and Leather Products Complex will be the new initiatives during the  year.  Taking advantage of the liberalisation introduced by Government of India in foreign investment in Housing Sector, SIPCOT will also encourage creation of Township near Siruseri as well as Knowledge Township at Sholinganallur. 

9. Steps for restructuring  of ailing Public-sector units like Southern Structurals Ltd., Tamil Nadu Cements Corporation Ltd., Tamilnadu Magnesite Ltd. and Sugar Mills will be taken early . 

10.  Tamil Nadu Newsprint and Papers Limited (TNPL) will undertake improvements to its Paper Machine-I at a cost of Rs.25 crores, upgrade its Paper Machine-II to run at a higher speed at a cost of Rs.30 crores,  increase capacity for Wood Pulp at Rs.25 crores and install cutting machine at a cost of Rs.10 crores during 2002-2003. 

11.   Tamilnadu Industrial Explosives Ltd. will implement the emulsion explosives project this year. 

12.  Thus special steps like changes in policy initiatives, simplification of procedures, effective performance of Government undertakings will enable the State to achieve No.1 position in industrialisation  in India. 

13.  The activities of the Government organisations are explained in detail in succeeding pages.