Tamil Nadu Feature
On the growth track
Tamil Nadu’s saga of growth and prosperity continues thanks to its progressive minders who have focused largely on all round infrastructure development.
In the post-liberalisation era, Tamil Nadu has enjoyed a robust overall economic development. Its remark¬able progress can be assessed from the fact that it between 1999-00 and 2006-07 registered a noteworthy and impressive 10.69 per cent growth rate in its GDP to reach $ 58.63 billion.
Tamil Nadu also has the distinction of being one of the most industrialised states in India. Major Industries in the State are cotton, heavy commercial vehicles, auto components, railway coaches, power pumps, leather tanning industries, cement, sugar, paper, automobiles and safety matches. It is a major exporter of tanned skin and leather goods, yarn, tea, coffee, spices, engineering goods, tobacco, handicrafts and black granite. Tamil Nadu contributes to 60 per cent of the tannery industry in India. Several important industrial/IT companies of national and international repute are found in the state. It has a strong manufacturing culture, which has been instrumental in attracting investments in the manuf¬acturing sector, especially automobiles and textiles. The textile sector of the state is also very active and accounts for 14 per cent of the total manufacturing in Tamil Nadu. There are many renowned textile mills in Coimbatore.
The state is home to many large public and private sector companies. Consumer electronics firms like Nokia, Motorola, Foxcon, Flextronic and Dell, auto majors such as Hyundai Motors, Ford, Hindustan Motors, Mitsubishi, Ashok Leyland, Tafe, I.T. and biotechnology majors like Symantec, eBay, Hewlett-Packard, HCL, Wipro, TCS, Infosys, Polaris Software Lab, Cognizant Technology Solutions, Capgemini, Xansa etc are just some of the major players in the industrial scenario of the state. SEZs and industrial parks also help to boost industrialisation in Tamil Nadu. The state government has developed several industrial estates and is promoting other industrial parks like Rubber Park, Apparel Parks, Floriculture Park, TICEL Park for Biotechnology, Siruseri TI Park and Agro Export Zones amongst others. Tamil Nadu Industrial Development Corporation Ltd (TIDCO) is one of the major agencies promoting industrial growth and progress in the state.
Tamil Nadu is also highly developed as far as education and health care is concerned. The Government has set up a number of institutions in collaboration with prestigious institutions to reach world-class standards in education. First-class vocational and technical institutions are also found in the state to meet and boost the rising industrialisation in Tamil Nadu. Private firms are encouraged to participate in technical and vocational education by the state. The state government has set itself a target of raising the gross enrollment ratio in higher education from the present 11.73 per cent to 25 per cent by 2020. 99 per cent of the state’s population has access to primary education. All these factors combined have ensured high literacy rate as well as high quality of higher education.
Similarly, the state provides better and advanced healthcare facilities. Super speciality hospitals in the state ensure that proper and specialised health care is available to the inhabitants. Chennai, the capital city of Tamil Nadu is popularly known as health care capital of India. The state is also has a repute for being a medical hub in South Asia. Some of the well-known hospitals in Tamil Nadu are Apollo Hospitals, Vijaya Hospitals, the Sankara Nethralaya Eye Hospital, the Christian Medical College Hospital at Vellore and the affiliated hospitals of Ramchandra Medical College.
Tourism is also highly developed in the state. People within and outside the country are fascinated by the numerous archeological sites, monuments and architecture. The impressive Hindu temples that serve as superb examples of Dravidian architecture, hill stations, beach resorts, multi-religious pilgrimage sites and two UNESCO World Heritage Sites are major facilitators of tourism. N Suresh Rajan, Minister for Tourism claims that the inflow of tourists into Tamil Nadu has increased, thanks to the sustained efforts of the Department of Tourism. Rajan informed that tourists flow to Tamil Nadu from other States and foreign countries had increased from 20 per cent to 22 per cent. The department is also taking measure to popularise the hitherto un¬known, little known and other destina¬tions to attract more tourists to the State.
Tamil Nadu is also one of the states in India which leads in power generation. Tamil Nadu Electricity Board has a total installed capacity of 10,214 MW which includes State, Central share and independent power producers. Presently it has four major coal based thermal power stations with a total capacity of 2970 MW and four gas-based power plants with a total capacity of 516 MW. It has fully harnessed the hydro potential in the state through 37 hydro stations generating 2184 MW. Moreover it has 3 pumped storage schemes totalling 1200 MW in Kundah (500 MW), Mettur (500 MW) and Vellimalai (200 MW) to tide it over during the peak hours. It also has installations in renewable energy sources like windmill up to 4300 MW. It has also ventured into nuclear power. The Kudankulam nuclear power plant coming up in Tirunelveli is an example of that. Yet there is a power deficit in the state of around 11.9 per cent as on Feb 2009. However, it is well off as compared to many other states in the country. In the meanwhile the government has proposed several new generation projects for the next 5 years to improve and enhance the power sector in Tamil Nadu.
Tamil Nadu is in the forefront with regards to infrastructure development. It was one of the pioneering states to use PPP to create and augment infrastructure sector. Several premier PPP projects in the country such as Coimbatore Byepass, Tirupur Water Supply project and the ECR project were implemented in Tamil Nadu. There are several mega projects in progress as well which would raise and improve the existing infrastructure to international standards. These include promoting a financial city near Chennai, a mega integrated aerospace park, an entertain¬ment cum communication technology park, constituting a state manufacturing competitive council, coming out with sector specific policies for traditional industries and building affordable houses for industrial workers.
The state has excellent internal and external connectivity through roads, railways, ports and airports. It has an extensive road network which connects its urban centers, agricultural market-places and rural areas. The state has a total road length of 167,000 km. It has 24 national highways in the state covering a total distance of 2,002 km. The state also serves as a terminus for the Golden Quadrilateral project. Several other road projects are also in progress in and around the state. In the last three years, Tamil Nadu government spent over Rs 8,200 crore on road development, under plan and non-plan schemes. 8,827 km of roads have been widened at a cost of Rs 2,757 crore and 37.153 km length of roads have been strengthened\renewed at a cost of Rs 4,946 crore, 723 bridge works have been completed at a cost of Rs 511 crore.
The railway network in the state is also quite adequate and extensive. Chennai is the headquarters of Southern Railway in the country. The total railway track length of Tamil Nadu amounts to 5,952 km and there are 532 railway stations in the state. It is connected to most of the major cities in India. Chennai also possesses a good suburban railway network. Railway Minister Mamata Banerjee recently announced that Chennai Central would be developed as a world-class station with international facilities. A metro rail network is also coming up in the capital city of Tamil Nadu.
Port infrastructure is also given a lot of importance. Chennai, Ennore and Tuticorin are the three major ports in the state. Rameshwaram, Nagapattinam, Cuddalore are some of the minor ports in Tamil Nadu. The ports have all the container handling facilities and are directly linked with East Asia and Europe. There are improvements projects ongoing at these projects. The Ennore port is set to have a new terminal and a SEZ is also coming up near the port. The contentious Sethusamudram Shipping Canal Project Is expected to further boost the growth of the state through the conversion of the Tuticorin port into a transshipment hub. Likewise the aviation sector of the state is also booming. It has three international airports at Chennai, Coimbatore and Tiruchirapally with flights going to far-flung corners of the world. The domestic airports at Madurai and Tuticorin connect the state to all the corners of the country.
Urban infrastructure is also given due importance in the state. Government institutions like Tamil Nadu Water Investment Company (TWIC), Tamil Nadu Road Development Company (TNRDC), Tamil Nadu Urban Devel¬opment Fund (TNUDF), Tamil Nadu Housing Board etc assist in facilitating progress and development across different sectors in the state.
The telecom infrastructure is also excellent in the state. The state has made a remarkable progress in this segment. It is much ahead of other states as far as rural connectivity is concerned. All the major telecom players like Bharti Airtel, VSNL, Reliance, Vodafone etc have marked their presence in the state. The IT sector is also quite booming in the state. Over 1400 IT companies are operating from the state. Chennai is next to only Bangalore as far as software exports are concerned. It is one of the initial states in India to come up with its IT policy. It is one of the first states to formulate a comprehensive policy for laying high bandwidth optic fibre cables throughout the state. IT Minister Poongothai Aladi Aruna has urged IT companies to move to Tier-II cities in Tamil Nadu such as Tiruchi, Madurai and Tirunelveli at the recently held NASSCOMM Sum¬mit. She also opined that not being conversant with English should not be a constraint for IT companies recruiting rural students. “With a high literacy rate in down south, the State has the best work ethics and a talented workforce with the required technical skills in the field of information technology,’’ she claims. Tamil Nadu is home to some of the largest IT parks in the country. The TIDEL Park and the IT Corridor are some of the endeavours to boost these sectors.
Thus, Tamil Nadu is a state on a march to development and growth with the help of factors like good infrastructure of roads, a favourable inve¬stment climate, plenty of skilled manpower and low cost of business. Moreover the state is constantly upgrading its infrastructure to meet the industrial growth. Conducive policy measures have also paved a path towards furthering foreign investment in the state. Deputy Chief Minister MK Stalin moved a bill in the Assembly recently to offer a single point clearance for new industries by reducing procedural req¬uirements in a bid to enhance the state’s investor-friendly environment. Stalin also informed that in order to fortify the competitiveness of local industries a state manufacturing competitive council will be formed with senior officials and experts from industries. It will from time to time present its report to the Government. Introducing the Tamil Nadu Business Facilitation Act, 2009, he said that the bill was aimed at promoting industrial development and facilitating new investments by simplifying the regulatory framework. Tamil Nadu was also one of the first to formulate policies for the ITES and biotech industries.
Thus, competent policies, a good workforce, availability of natural resour¬ces etc have contributed to the creation of a very constructive and conducive bu¬siness environment. A Guidance Bureau constituted by the Government of Tamil Nadu in 1992 has also been instrumental in attracting major investment proposals to the state. Economic growth, empl¬oyment, per capita income etc are also high in this state all thanks to the steady inflow of investments in various sectors of the state. The Government has introduced a slew of measures to sustain the investment momentum and retain Tamil Nadu’s well-established position as a premier investment destination in the country. The state is thus taking giant strides towards overall development and progress.
Tamil Nadu has emerged as a leading state in our country in important industries such as manufacturing of automobiles and electronic goods. Global majors in heavy vehicles production and in automobile parts have come forward to establish industries in Tamil Nadu. In the same manner, leading companies like Dell Computers, Motorola, Samsung and Nokia-Siemens networks have established industries for production of electronic goods. To spur industrial development across Tamil Nadu we are providing structured package of assistance that is being extended to investments above Rs.250 crore. Because of the efforts of the Tamil Nadu government to increase employment opportunities during the past three years, entrepreneurs have come forward to establish 29 new industries with an investment of Rs.37,595 crore. There is employment potential of about two lakh persons. Of these new investments, eight industries have already commenced production. In addition to encouraging entrepreneurs to start industries, the government is continuing to improve basic infrastructure facilities required for the development of these industries.
Prof. K. Anbazhagan, Minister for Finance, Government of Tamil Nadu
Tamil Nadu infrastructure
• Modern ports (with container handling facilities) and airports with direct links to Europe and East asia.
• Tamil Nadu has 3 major Ports: Chennai Ennore and Tuticorin with twin port advantage at Chennai and Ennore apart from 14 minor Ports.
• 270 passenger flight and 28 cargo flights per week at Chennai Airport
• A total road network of 150,000 km.
• The only power surplus state in India.
• World-class health care facilities-Chennai is the health care capital of India
• Availability of World-class bandwidth connectivity and telecom infrastructure for high speed large volume data transfer.
• Well developed network of industrial parks offering plug and play infrastructural facilities.
• Fastest growing retail market in India
Tamil Nadu has been very proactive in terms of initiatives for the development of the infrastructure sector. A recent case in point is the move to set up a Finance City on the outskirts of Chennai and to create an infrastructure for that. The financial city, proposed to be set up under private participation, will be a magnet for banks, insurance and mutual fund companies and stock market intermediaries. As an apex industry body, we will everything to support this move from the government and ensure that it the project will happen. It is on the basis of such initiatives that the state can move further on the growth path and make it a leader in terms of attracting investments. Of course the key to the state becoming increasingly successful lies in the improvement of international air connectivity, upgradation of physical infrastructure like roads and power supply. It is also incumbent on the introduction of legislative reforms, particularly in respect of labour laws.
C K Ranganathan, Chairman, CII Tamil Nadu State Council & Chairman & Managing Director, CavinKare Pvt Ltd
Focus on agriculture
The primary sector of the state consisting of agriculture and other allied activities has witnessed high level of growth in the recent decades thus contributing a major part to the state’s economy. In 2007-08, Tamil Nadu had a total cultivated area of 56.10 million hectare.100.35 lakh million tonne was the annual food grains production in the state for the year 2007-08. The Tamil Nadu government has plans to set up four terminal markets in Chennai, Coimbatore and Madurai districts with an investment of Rs 40 crore. When implemented, the markets are expected to reduce the post harvest losses of the farmers. In order to boost agro processing, the state government has sanctioned around 27 projects to the tune of Rs 125 crore. Irrigation activities are also on a rise in the state. The state has benefited through significant irrigation schemes and modernisation of existing Periyar Vaigai System, Palar Basin System and Parambikulam-Aliyar System besides the minor system in Vellar, Pennayar, Araniyar Amaravathi, Chithar basins.
Tamil Nadu: Vital Stats
Chief Minister: Dr Muthuvel Karunanidhi
Area: 130058 sq km.
Population: 62405679 (as per 2001 census)
Urban Population: 44 per cent (as per 2001 census)
Density of Population: 511/sq km (1,323/sq mi)
Literacy Rate: 73.5 per cent
Economic Activity: Manufacturing - 34 per cent; Services - 45 per cent; Agriculture - 21 per cent
State Priority Areas: Electronics; software; auto components; pharmaceuticals; leather; biotech, financial services, tourism.
Investment Strengths: Business-savvy state government; respo¬nsive local administration; good railways, ports and telecom network; adequate road connectivity; availability of low cost labour through out the state.
Major Industries: Textiles, leather tanning industries, cement, paper, power pumps, automobiles and automotive equipments, heavy commercial vehicles and safety matches.
Roads: 167,000 km (24 NH: 4483 km, 187 SH: 9256 km)
Railways: Track length: 5,952 km
Airports: Chennai International Airport is the major international airport in Tamil Nadu. Other international airports in the state are Coimbatore International Airport and Tiruchirapalli International Airport. Madurai Airport and Tuticorin Airport are domestic airports.
Ports: Tamil Nadu has three major ports at Chennai, Ennore and Tuticorin. It has an intermediate port at Nagapattinam. The state also has minor ports at Rameswaram, Kanyakumari, Cuddalore, Colachel, Karaikal, Pamban and Valinokkan.
Telecom majors in the state: BSNL, Tata Indicom, Hutch, Idea, Maxtel, Reliance Infocom, Bharti Airtel, Nokia, Motorola, Flextronics
Financial Institutions: Vijaya Bank, Allahabad Bank, United Bank of India, UTI, The South Indian Bank, Syndicate Bank, Indian Bank, Tamil Nadu Mercantile Bank Ltd, Indian Overseas Bank.
IT/BPO: Symantec, Fidelity National Information Services, eBay, Hewlett-Packard, Computer Sciences Corporation, Virtusa, HCL, Wipro, TCS, Temenos, Satyam, Infosys, Polaris Software Lab, Cognizant Technology Solutions, Acme Technology Pvt Ltd, Covansys, Capgemini, Ford Information Technology, Xansa, Changepond, Verizon, iSoft, insoft, iNautix, MphasiS(Electronic Data Systems), Bally etc.
IT Parks: TIDEL Park, Siruseri IT Park, Mahindra Industrial Park etc
Advantage Tamil Nadu
Tamil Nadu government announced its first industrial policy in 1992 which provided a broad framework for change in its approach towards industrialisation . In the wake of the Policy enunciated in 1992, Tamil Nadu emerged as one of the most important investment destinations by attracting a large number of projects. Tamil Nadu government amended the industrial policy first in the year 2003 and later in the year 2007. The new industrial policy 2007 focused on stimulating further industrial development, attracting investment, facilitating new manufacturing capacity and enabling global manufacturing competence and competitiveness of local industry.
The other policy initiatives of the state include:
• Information Technology Enabled Services (ITES) Policy
• TN SEZ policy 2003
• Captive Power Plants Policy 2006 – 2007
• Contract Farming Policy
• Bio Technology Policy
• Textiles Policy 2006 – 2007
• Environment Policy
• Floriculture Policy
Tamil Nadu is one of the well developed states in terms of industrial development. In the post liberalisation era, the state has emerged as one of the front-runners by attracting a large number of domestic and foreign investments due to the following:
• It is currently ranked by studies within the first three places in the country in terms of the following: Industrial output, Value addition, Number of factories, Total work force employed in factories, Foreign Direct Investments
• Stable political climate and investor friendly government.
• FDI magazine of Financial Times rated Tamil Nadu as the “Asian region of the future 2005-2006” with maximum FDI potential.
• Effective Single window mechanism for investments exceeding $5.41892 million. A single common application form has been introduced to replace multiple forms. The state government has designated a single agency to facilitate and escort all such investments.
• Abundant availability of skilled manpower. Annual turn out of engineering graduates in Tamil Nadu is 79,000, the largest in India. Besides, the State produces 58,500 diploma holders from polytechnics.
Key Industrial Players
Tamil Nadu is one of the most industrialised states in India. Several major manufacturing and engineering companies have their base in Tamil Nadu. Check out some of the major industrial players in the state.
Ashok Leyland, set up in the year 1948 is the flagship of the Hinduja Group and is involved in the production of Leyland commercial vehicles such as trucks and buses, as well as emergency and military vehicles. It is India’s largest exporter of medium and heavy-duty trucks. The company’s main plant is located at Ennore, near Chennai. The other manufacturing facility in Tamil Nadu is based at Hosur. It is the first in India’s automobile history to win the ISO 9002 certification. It recently completed all the legal formalities for forming a JV with US-based leading equipment maker, John Deere & Co.
Bharat Heavy Electricals Ltd (BHEL)
Set up in late 1950s, Bharat Heavy Electricals Ltd (BHEL) is one of the largest engineering and manufacturing enterprise in India. Its core areas of functioning are
to produce and distribute electronic, electrical, mechanical and nuclear power equipment. BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian economy namely power generation and transmission, industry, transportation, telecommunication, renewable energy etc. BHEL’s one of the leading manufacturing facilities is based in Tiruchirappalli (also known as Trichy/Tiruchi) Complex, Tamil Nadu. The company has an ambitious plan for the future that will see it growing into a company with a turnover of Rs 91,000 crore in a decade’s time.
Caterpillar India Pvt Ltd (CIPL)
Caterpillar India is a wholly owned subsidiary of Caterpillar Inc, headquartered at Illinois, USA. It came into being after the after the acquisition of the Earthmoving Equipment Division of Hindustan Motors in 2001. It produces a range of earthmoving products including dumpers, front-end loaders, backhoe loaders, crawler tractors and hydraulic excavators. It also manufactures constr¬uction and mining equipment, diesel and natural gas engines as well as industrial gas turbines. One of its manufacturing units is located at Melnallathur, Thiruvallur dist¬rict. Caterpillar India is one of the major players in the equipment sector of India.
Chennai Petroleum Corporation Ltd (CPCL)
Chennai Petroleum Corporation Limited (CPCL) was formerly known as Madras Refineries Limited (MRL) and was formed as a joint venture in 1965 between the Government of India (GOI), AMOCO and National Iranian Oil Company (NIOC). It is engaged in the production of lubricants, fuel products, and additives. The main products of the company are LPG, motor spirit, superior kerosene, aviation turbine fuel, high-speed diesel, naphtha, bitumen, lube base stocks, paraffin wax, fuel oil, hexane and petrochemical feedstocks. It has two refineries, at Manali and Cauvery Basin. CPCL is one of the largest and most integrated refineries based in South India.
Ford Motor Company India
Ford Motor Company India was established in 1995 at Maraimalai Nagar, near Chennai in Tamil Nadu. The plant has the ability to produce around 100,000 vehicles per year. Ford Ikon is one of the most exported cars from India in the mid-size car segment. The company also has plans to export its vehicles from the Chennai plant to various destinations across the world. It is one of the leading players in the Indian automotive industry.
Hyundai Motor India Ltd
Hyundai Motor India Ltd (HMIL) is a subsidiary of Hyundai Motor Company, South Korea. It was established at Irrunattukottia, near Chennai, in 1997. It is the second largest car manufacturer and the largest passenger car exporter from India. Santro, Getz Prime, i10, Premium hatchback i20, Accent, Verna, Sonata Embera and Tucson are some of the popular offering from the company. The Hyundai plant in Chennai presently is the largest manufacturing facility of Hyundai Motor Company outside Korea. HMIL completed ten years of operations in India in 2008. It is one of the major players in the automotive segment of India.
Madras Cements is the flagship venture of the Ramco Group. It has two manufacturing facilities in Tamil Nadu, at RR Nagar and Alathiyur. The company is the fifth largest cement producer in the country. Ramco Supergrade, by Madras Cements is one of the most popular cement brands in South India. It also produces ready mix concrete and dry mortar products. In addition, the company also operates one of the largest wind farms in the country.
Lakshmi Machine Works (LMW)
Lakshmi Machine Works is a major textile machinery manufacturer in India. It produces a complete range of spinning machinery. Established in 1962, it caters to almost 60 per cent of the domestic market. It is also one of the leading exporters of textile machinery in India. Based in Coimbatore, Tamil Nadu, the company is an acknowledged leader in manufacturing customised products.
Mitsubishi Motors, a Japanese firm, operates in collaboration with Hindustan Motors in India. It has a state-of-the-art manufacturing unit having set up at Tiruvallur near Chennai established at a cost of $ 71 million. Its main areas of fun¬ctioning are the body (weld) shop, paint shop, assembly shop and quality line.
Neyveli Lignite Corporation (NLC)
Established in 1956, Neyveli Lignite Corporation Limited (NLC) is a mining company in India. It is a public-sector enterprise engaged in manufacturing of lignite, urea and the generation of power in Neyveli, Tamil Nadu. It owns three of the largest opencast mechanised lignite mines in India and produces 24 million tonne of lignite per annum. It has three pithead thermal power-generating stations and an installed capacity of 2490 MW of power. The company serves as a major source of energy for state electricity boards in the southern states.
Saint-Gobain Glass India
Saint-Gobain Glass India Ltd (SGGI) is a subsidiary of Saint-Gobain France. It is engaged in the manufacture of architectural and automotive glass in India. It started operations in 2000 at the World Glass Complex at Sriperumbudur, a temple town, 46 km from Chennai. The company is the second largest producer of laminated and toughened glass.
Established in 1938, the Amalgamations Group is a light engineering conglomerate in India consisting of 43 companies. It is mainly engaged in the production of diesel engines, agricultural tractors, auto components, batteries, cutting tools and paints. Its subsidiaries like TAFE, Higginbothams Pvt Ltd, India Pistons Ltd and Amco Batteries Ltd operate from Tamil Nadu.
Established in 1911, the TVS Group is India’s leading conglomerate in India. Consisting of more than 29 companies, it operates in diverse areas such as automotive component manufacturing, automotive dealerships and electronics. TVS Motors, Brakes India, Lucas TVS Ltd, Sundram Fasteners and Wheels India are some of the subsidiaries of the TVS Group that operates from Chennai.
Apart from these players, several other companies like Rane TRW, Caltex, World Bank, Polaris, Mitsubishi Motors, Visteon, EI DuPont India, Madura Coats Ltd, Matsushita Electric, Muruguppa Group, Premier Instruments & Controls Ltd etc also have set up their bases and operations in Tamil Nadu. Together they all contribute to the growth and development of the industrial sector of the state.
Major Partners in progress
Tamil Nadu is one of the most industrialised states in India. Several government organisations have partnered in making it so and furthering the state’s growth and development. Some of them are
TAMIL NADU INDUSTRIAL DEVELOPMENT CORPORATION (TIDCO)
Incorporated in the year 1965, Tamil Nadu Industrial Development Corporation Ltd (TIDCO) is a Government of Tamil Nadu Enterprise. It was established for the purpose of identifying and promoting the establishment of large and medium scale industries within Tamil Nadu in alliance with the private sector. It is also responsible for the formulation of policies that promote development of industry and for the establishment of Industrial Estates. It also helps promoters to explore opportunities, evaluate projects, obtain statutory clearances, acquire land, source technology, secure financial tie-ups and position utilities sources like power, water, etc. thus, TIDCO facilitates investment in large industrial and infrastructure projects in Tamil Nadu. The upcoming projects by TIDCO are
• Nanguneri - SEZ
• Ennore - SEZ
• Hosur - SEZ
• Perambalur - SEZ
• Rakindo - SEZ
• India-Singapore - SEZ
• IT & ITES SEZ – TIDEL-II
• IT & ITES SEZ – TIDEL-III
• TIDEL Park Coimbatore
• Iron Ore Project
• Winery Project
• Marine Biotechnology Park
• Vishnu Fabrics
• Bio-Pharmaceuticals SEZ
• Cashew at Cuddalore AEZ
STATE INDUSTRIES PROMOTION CORPORATION OF TAMIL NADU (SIPCOT)
Established in the year 1972, State Industries Promotion Corporation of Tamil Nadu (SIPCOT) Limited is a fully government owned institution. It acts as a catalyst in development of small, medium and large scale industries in Tamil Nadu. SIPCOT is involved with identifying, developing, maintaining industrial areas in backward and most backward talukas of the State with potential for growth and development. Establish, develop, maintain and manage industrial complexes, parks and growth centres at various places across the State of Tamil Nadu; provide escort services to medium and large scale industries etc are some of the other services offered by SIPCOT. One of the major SIPCOT Industrial Estate Park is located near Perundurai in Erode. It has also established industrial complexes in Tuticorin, Cuddalore and Siruseri amongst others.
Some major projects of SIPCOT include
• Industrial corridor of excellence in Chennai - Sriperumbudur - Ranipet - Hosur region; Salem - Coimbatore region; Madurai - Tuticorin region
• SEZs in Perundurai, Siruseri, Tuticorin, Cuddalore etc
• Nilakkottai Food Park Ltd, Nilakkottai.
• Water Argumentation project
• Apparel Park , Irungattukottai
• Textile Processing Park, Cuddalore
• Railway siding project avadi to Sriperumpudur
• Madurai Industrial Park
• Coimbatore Industrial Park.
TAMIL NADU ROAD DEVELOPMENT COMPANY (TNRDC)
Incorporated in May 1998, Tamil Nadu Road Development Company Ltd (TNRDC) is a 50:50 joint initiative of Tamil Nadu Industrial Development Corporation Ltd (TIDCO) and Infrastr¬ucture Leasing and Financial Services Ltd (IL&FS). TNRDC was set up with the directive of developing road sector initiatives. It acts as a catalyst for private sector resources and investments under Public-Private Partnership (PPP) frame¬work. TNRDC’s activities span the entire range from project conceptualisation to implementation to operations and main¬tenance. As its first venture, TNRDC took up the improvement and maintenance of the East Coast Road connecting Chennai and Pondicherry via Mahabalipuram, at a cost of Rs 60 crore. TNRDC has been actively assisting the State Government in developing Chief Minister’s Highways Development Program. Some of the projects by TNDRC include the East Cost Road project, the IT Corridor etc some of its other endeavours are
• Improving road connectivity between Chennai and Ennore Ports by impr¬oving the Ennore Expressway. TNRDC is also involved with the resettlement and rehabilitation of over 1500 project affected families as part of this project.
• Taking up the development, impro¬vement and maintenance of select National Highways stretches in Tamil Nadu on ECR format. Initially, TNRDC would develop, improve and maintain the Salem - Ulundurpet Roads and Dindigul - Palani stretch on a commercial format.
• It has also proposed the improvement and maintenance of Thoppur - Mettur - Bhavani State Highways, on ECR framework.
TAMIL NADU HOUSING BOARD (TNHB)
Tamil Nadu Housing Board (TNHB) is a unit of Government of Tamil Nadu under the Ministry of Housing & Urban Development. Established in the year 1961, TNHB was formed to cope with the increasing demand in the housing sector across the state. It is also the principal town planning and city and suburb development arm of the Tamil Nadu Government. Self sustaining townships like Anna Nagar, Besant Nagar, KK Nagar, Ashok Nagar and Shastri Nagar in Tamil Nadu are some of the offerings from TNHB. It provides shelter to the people under Economically Weaker Section (EWS), Lower Income Group (LIG), Middle Income Group (MIG) and Higher Income Group (HIG), at costs affordable by people of these Groups.
Some of the projects by TNHB are
• S.A.F. Games Village
• Baracca Road
• Ambattur Phase - I & II
• Ambattur Phase - III
• Sholinganallur Phase - III Land Bank Area
TAMIL NADU WATER INVESTMENT COMPANY LIMITED (TWIC)
Tamil Nadu Water Investment Company Limited (TWIC) is a Joint Venture company promoted by IL&FS and Government of Tamil Nadu. It is involved with several path breaking initiatives in development of water/waste water projects. These initiatives include desalination projects, industrial effluent and domestic sewerage treatment and recovery projects and urban water and sewerage projects.
Some of the major projects by TWIC are
• Tirupur Water Supply and Sewerage Project
• Tirupur Common Effluent Treatment Project
• Ambur Tannery Effluent Treatment Project
• Industrial Infrastructure Upgradation Scheme for Tirupur
• Sewage to Industrial Grade Water Project
TAMIL NADU INDUSTRIAL INVES-TMENT CORPORATION LTD (TIIC)
Incorporated in 1949 as a Banking Company, Tamil Nadu Industrial Investment Corporation (TIIC) is a premier financial institution in Tamil Nadu. It was formed to foster Industrial Development of Tamil Nadu. It provides financial assistance to tiny/ small/medium scale industrial units, professionals and transport vehicle operators for starting of new industrial units as well as for expansion, modernisation and diversification of existing industrial units. TIIC offers long and medium term financial assistance in the forms of term loans, term loan and working capital assistance under the single window scheme, lease financing for machinery/equipments, factoring (i.e. bill discounting) and short term loans.
TAMIL NADU URBAN DEVELOPMENT FUND (TNUDF)
Formed by conversion of Municipal Urban Development Fund (MUDF), Tamil Nadu Urban Development Fund (TNUDF) is a trust fund involved the development of urban infrastructure in the state of Tamil Nadu. TNUDF is the first public-private partnership providing long term debt for civic infrastructure on a non-guarantee mode. An Asset Management Company, Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) is the fund manager of TNUDF. Fund urban infrastructure projects which improve the living standards of the urban population; facilitate private sector participation in infrastructure through joint venture and public-private partnerships; operate a complementary window, the Grant Fund, to assist in addressing the problems of the urban poor etc are some of the major objectives of this fund. Tamilnadu Urban Development program (TNUDP) III, Tamil Nadu Urban Infrastructure Project (TNUIP) are some of the major endeavours in the state that the TNUDF is involved with.
TNUDF has been a part of several major projects implemented in the state of Tamil Nadu. Some of them are
• Karur Toll Bridge
• Madurai Byepass
• Alandur Sewerage project
• Storm Water Drain in Valasaravakkam
Some of the major projects in the state of Tamil Nadu are:
NEW TIRUPUR WATER SUPPLY PROJECT
One of the most well known PPP transactions, the new Tirupur Water Supply project was conceived way back in the year 1993 by the Government of Tamil Nadu and the Tirupur Exporter’s Association (TEA). IL&FS was roped in by TEA and Government of Tamil Nadu 1994 to develop the project on a public-private partnership model. Nearly nine years of developments efforts went into the finalisation of a structure, which was seen by investors as a bankable proposition. The project commenced operations in April 2004 and overcame the first major hurdle by achieving financial closure to later start operations in 2006. Thus, it became the first successful PPP project supplying 110 million litres to the local communities and industrial units per day. It has paved the path ahead for similar other projects.
EAST COAST ROAD (ECR) PROJECT
East Coast Road (ECR) is an important road corridor in Tamil Nadu. It connects Chennai with Cuddalore via Pondicherry. The road was formed in 1998 by interlinking and enhancing several small village roads. ECR started developing problems within two years of its formation as it started showing signs of distress. Dangerous curves and other geometric deficiencies, MoEF restrictions on land acquisition, tree cutting, road width etc aggravated the situation. Therefore, TNRDC took up the improvement and operations and maintenance of the road on a long term basis of 31 years. The project involved the improvement of 113.2 km of ECR from Kudimiyandithoppu near Chennai to Koonimedu on the outskirts of Pondicherry. The improvement work was completed on December 7, 2001. Tolling commenced on March 24, 2002.
KARUR TOLL BRIDGE
Karur toll bridge project is the TNUIFSL facilitated first BOT toll bridge, contracted by an ULB in India at an estimated cost of Rs 160 million. The users of the bridge are freight traffic with the capacity to pay. The bridge substantially reduces vehicle operation costs (VOC) and time.
SEWERAGE TREATMENT PLANT, ALANDUR
The Alandur Sewerage Project (ASP) is a major public-private partnership project in the urban sanitation sector of the country. The lack of a proper under¬ground drainage and sewerage system caused the designing of the ASP project. The key elements of the project are construction of a network of sewer pipelines and manholes, an underground drainage scheme of 120 km; construction of a pumping house and installation of pumping machinery; and construction of a sewage treatment plant with a capacity of 24 million litre per day (MLD). The Alandur municipality developed the project with assistance from the Tamil Nadu Urban Development Fund (TNUDF) and the Government of Tamil Nadu. The project is already operational and in 2005 connected, in its first phase of the project, nearly 8,350 of the 23,000 households that paid for the services.
SETHUSAMUDRAM SHIP CHANNEL PROJECT
Sethusamudram Ship Channel Project is an endeavour to connect the Palk Bay and the Gulf of Mannar between India and Sri Lanka to create a shipping channel. It would pass through the shallow sea also known as Setu Samudram, and through the island chain of Adam’s Bridge, also known as Ram Sethu. The project is expected to provide a constant navigable sea route around the Indian Peninsula. It recently received approval of the Indian government. Apart form a navigable sea route close to the port, the project is also supposed to offer other benefits such as boost to the economic and industrial development in the state, enhance Tuticorin port and help it to become a nodal port, increase maritime security of the state etc. However, the project is facing several arguments against it on religious, environmental and economical grounds.
CHENNAI METRO RAIL PROJECT
The Chennai Metro is a mass-transit rail system for the capital city of Tamil Nadu. It is being executed by a Special purpose vehicle, the Chennai Metro Rail Limited (CMRL). The Phase I of the project comprising two corridors is under construction. The first section of the project to commence operations will be on Line 1 between Teynampet and Airport. This stretch is expected to begin operations from 2011. The entire project is slated for completion by the financial year 2014-2015. The project is estimated to cost around 14,600 crore (approxim¬ately $ 3.5 billion) for the two corridors totalling 50.1 km. The central gove¬rnment will partly finance the project, while the state government would pitch in its share. The JBIC is also expected to fund the project.
The Coimbatore bypass was the first road project in the country to be developed on a BOT model. L&T Transportation Infrastructure Limited (LTTIL) was the sole bidder to respond with a conditional bid to a tender floated by the Ministry of Surface Transport, Government of India (MOST). LTTIL’s bid wanted the project scope to include addition of the Athupalam Bridge in the city and a road overbridge (ROB) on NH 209 (Coimbatore-Dindigul), in order to improve the financial viability of the bridge. Work on the project commenced in December 1997 and the Athupalam Bridge was completed first and commissioned in December 1998. The Coimbatore bypass provides significant lessons for development of road on PPP, several of which are incorporated in NHDP road projects implemented on a PPP model.
ENNORE PORT PROJECT
The Ennore Port Limited (EPL) has planned a total investment of Rs 2,700 crore in the Eleventh Five Year Plan on various new projects under the National Maritime Development Programme (NMDP). This includes the private investment to the tune of Rs 1,300 crore on a world class container terminal of one km long continuous quay capable of accommodating three mainline vessels of 8,000 TEUs. A world class SEZ is also coming up near the port to benefit from the proximity of the port. It is for engineering, information technology, auto components, garments and leather products. It would have container freight station facilities and free trade warehousing zone.
KUDANKULAM NUCLEAR POWER PLANT
Kudankulam Nuclear Power Plant is a nuclear power station currently under construction in Kudankulam in the Tirunelveli, Tamil Nadu. The Rs 13,000 crore projects is the first of its kind in India. The construction began on March 31, 2002 and several Russian institutions are involved in the work of designing the nuclear power plant. Russia will supply all the major equipment for the project. The NPC has awarded four contracts in the form of packages for the construction of the project. Essential infrastructure for the project, such as warehouses, roads, lighting, office buildings, meteorological tower, concrete testing station, domestic water supply and sewerage system, and guardhouses, have been built.
IT Corridor is an important road connecting Chennai with Mahabalipuram in Tamil Nadu for a length of 45 km. The road was previously known as Old Mahabalipuram Road (OMR). It begins from Madhya Kailash Temple Junction in south-east Chennai and end on the East Coast Road near Mahabalipuram. The TIDEL Park as well as several other prominent government institutions are located on the IT corridor. The IT Corridor Project aims at improving the Corridor to a world-class facility. A SPV called IT Expressway Ltd (ITEL) has been established to implement the project. The IT Corridor Project is being implemented in two phases – Phase-I between Madhya Kailash Temple Junction and Siruseri and Phase-II between Siruseri and Mahabalipuram.
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