New Policy Allows Private Firms To Develop Industrial Estates In TN | SupportBiz

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New Policy Allows Private Firms To Develop Industrial Estates In TN

 
A consortium of 20 or more companies in the MSME sector can apply and receive government support to develop a new industrial estate or shift from existing industrial estates which are facing space constraints.

Chennai, January 21: Marking a paradigm shift from the traditional method of government agencies developing industrial parks and offering space to industry, the Tamil Nadu Government has drawn a new policy to allow private companies to develop industrial estates in the state.

According to the new policy, a consortium of 20 or more companies in the MSME sector can apply and receive government support to develop a new industrial estate or shift from existing industrial estates which are facing space constraints, Business Standard reports. A top government official has confirmed to the publication that the MSME sector has shown great interest in the opportunity and there are already proposals for four such facilities.

“If the industry consortium wants to set up new estates, 50 per cent of the cost, up to a ceiling of Rs 10 crore, will be provided by the state government. If a group of firms wants to shift from an existing industrial estate to a new one, especially from locations in the city to the outskirts, 75 per cent of the cost, up to a ceiling of Rs 15 crore, will be provided by the government," K Dhanavel, secretary in the state's MSME department, was quoted as saying in the report.

Private companies have already pitched to set up two such estates in Coimbatore and one each in Madurai and Namakkal.

In addition, the State Government has also decided to allot the 20 per cent of the disposable free land available with the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) to the Tamil Nadu Small Industries Development Corporation Limited (TANSIDCO).