GLOBAL INVESTORS MEET

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1 TAMIL NADU GLOBAL INVESTORS MEET 2015 I N V E S T O R S P A R A D I S E Tamil Nadu Global Investors Meet 2015 Tiruppur District Profile

2 Table of contents 1. Tiruppur Overview Economic profile Resource profile Land Utilisation Mineral base Education & Skill Development Healthcare Water Resource Logistics Industrial scenario Key Enablers Connectivity Tamil Nadu Vision Tamil Nadu industrial policy Investment opportunities in Tiruppur 10 Key connects and links 11

3 List of Figures Figure 1.1 GDDP of Tiruppur from Figure 1.2 Land utilisation in Tiruppur 2 Figure 1.3 Exports from Tiruppur 4 Figure 1.4 Type of units in Tiruppur 5 Figure 1.5 MSME units in Tiruppur 5 Figure 1.6 Map showing important national highways in Tiruppur 6 Figure 1.7 Airport and Seaports close to Tiruppur 7 List of Tables Table 1 Mineral production in Tiruppur 3 Table 2 Incentive packages for various categories of investment 9

Tiruppur 1.1. Overview Tiruppur Tiruppur district has been carved out of Coimbatore and Erode districts in the year 2008 by making it as the 32nd district of Tamil Nadu.

4 Tiruppur 1.1. Overview Tiruppur Tiruppur district has been carved out of Coimbatore and Erode districts in the year 2008 by making it as the 32nd district of Tamil Nadu. Tiruppur is located at N E / N E. Geographical area of Tiruppur district is square kilometers. The district is bounded by Coimbatore district in the west side, Erode district to the North and northeast side and Karur district in the east side and Dindigul district in the south east side. The district has a total population of 247 thousand persons. The district has a population density of 478 people per sq.km. The district has a literacy rate of and an urbanization rate of 61%. 1

5 1.2. Economic profile Figure 1.1 GDDP of Tirupur from CAGR- 11% The GDDP of the district in was 2818 USD million and has grown at a CAGR of 11%. The tertiary sector contributes the maximum to the GDDP of the district which has grown at a CAGR of 10% from It contributes about 51% to the GDDP of the district followed by the secondary sector which contributes about 39% to the GDDP. Source: Ministry of MSME, Tiruppur District , GoI 1.3. Resource profile Land Utilisation Figure 1.2 Land utilisation in Tiruppur Land Utilisation in the district The total land under the forest cover in the district is hectares which constitutes about 12% of the land. The remaining area constitutes about 88% of the total land out of which the total net sown area constitutes about hectares of land. Source: Ministry of MSME, Tiruppur District , GoI 2

6 Mineral base Table 1 Mineral production in Tiruppur Mineral Quantity Produced in '000 tonnes in Magnesite 730 Dunite 2524 Gypsum 1400 Quartz 1650 Colour Granite 5787 Source: Department of Geology and Mining Education & Skill Development Educational institutions Number of schools Primary schools 1193 Middle schools 321 High schools 127 Arts and Science Colleges 17 Technical Colleges - Source: Vision Tamil Nadu 2023, Strategic Plan for Infrastructure- Phase II, Department of School Education, Government of Tamil Nadu Healthcare Type of Hospitals Nos. Government Hospitals 8 Private Hospitals 4 Ayurvedic Hospitals 0 Primary Health Centres 64 Health Sub-Centres 242 Source: Health and Family Welfare department, Government of Tamil Nadu 3

7 Water Resource The major rivers flowing through the district are Noyyal and Amaravathi. The Amaravati river is the main source of irrigation in the district. Amaravathi Dam is located at Amaravathinagar. Tirumurthy dam is also situated in the district. Both Amaravathi dam and Thirumurthy dam are the prime source of irrigation in the district. Apart from these the district is well irrigated with tanks and tube wells. It has around 1497 tanks and tube wells Logistics The district also has an Inland Container Depot (ICD) in a total area of 9290sp.mt. It connects the industrial areas of Tirupur, Coimbatore, Karur and Erode. The ICD has handled 893 TEU s between April 2013 and September Industrial scenario Tiruppur has gained universal recognition as the leading source of Hosiery, Knitted Garments, Casual Wear and Sportswear. Tiruppur is known as the Knitting City of India. It houses more than 6000 Textile units which predominantly consist of Knitting and Garments. Tiruppur currently undertakes exports of over USD 1.5 Billion (90% of India s Knitwear Exports) European countries are the major importers of Tiruppur Textile Products (majorly Knitted variety). Global Companies sourcing from Tirupur Nike Adidas Gap Tommy Hilfiger Katzenberg Van hausen Fila Arrow Wal Mart Sears Mothers care H&M Figure 1.3 Exports from Tiruppur In order to strengthen and promote the Textile Industry, a number of initiatives have been undertaken by TEA (Tiruppur Exporters Association) by setting up industry specific infrastructure: Tiruppur Exports Knitwear Industrial Complex Inland Container Depot TEAKTEX : Garments Processing & Production Complex NIFT-TEA Knitwear Fashion Institute Nethaji Apparel park TEA-St John Logistics 4

8 Figure 1.4 Type of units in Tiruppur TEA-E-Readiness Center : Jointly with Microsoft India Knit fair Tiruppur also has a large number of MSMEs in the field of textiles and apparels. A total of 15 million USD has been invested in the textile sector in Tiruppur. Source: tirupur.nic.in MSME units in Tiruppur Figure 1.5 MSME units in Tiruppur Source: Ministry of MSME, Tiruppur District , GoI 5

1.5. Key Enablers 1.5.1. Connectivity 1.5.1.1. Road connectivity in Tiruppur Figure 1.

9 1.5. Key Enablers Connectivity Road connectivity in Tiruppur Figure 1.6 Map showing important national highways in Tiruppur Highways NH-47 NH-67 NH-209 Connectivity Connects Tiruppur to Erode Connects Tiruppur to Nagapattinam Connects Tiruppur to Coimbatore 6

1.5.1.2. Airport and Seaport connectivity Figure 1.

10 Airport and Seaport connectivity Figure 1.7 Airport and Seaports close to Tiruppur Tiruppur Distance from Tiruppur to Coimbatore international airport is 42 Km Distance from Tiruppur to Tuticorin port is 326 Km Closest airport and Seaport Coimbatore international airport Tuticorin port Distance 42 Km 326 Km 7

11 Railway connectivity The city is connected through rail by the Tiruppur railway station. The station belongs to the Salem railway division. It falls on the Chennai- Palakkad Broad Gauge line It is a major transit point of the Southern Railway Zone and one of the top revenue earners of the Salem division in the Southern Railways Tamil Nadu Vision 2023 The vision for Tamil Nadu for 2023 is to become India s most prosperous and progressive state with no poverty, and where its people enjoy all the basic services of a modern society and live in harmonious engagement with the environment and with the rest of the world. Vision 2023 Tamil Nadu ( Vision 2023 ) sets the plan for infrastructure development for the state to reach the desired outcomes by The three outcomes of Vision 2023 are: The per capita income of Tamil Nadu s residents will reach USD 10,000 per annum (at 2010 prices) the present median income of Upper Middle Income countries - by 2023 Tamil Nadu will attain a high standard of social development, with the Human Development Index of the state matching those of developed countries by 2023, and Tamil Nadu would provide to its residents, high quality infrastructure all over the state comparable with the best in the world Key facets of Vision 2023 include Tamil Nadu s enhanced economic dynamism, best in class human development indicators, well developed infrastructure that provides universal access to basic services, an investment climate that compares with the best in Asia, and the evolution into India s foremost knowledge and innovation hub Tamil Nadu industrial policy 2014 Tamil Nadu introduced Industrial Polices in 1992, 2003 and The latest industrial policy, announced in 2014, is aligned to the objectives laid out in Vision Several incentives and subsidies have been announced as a part of this industrial policy, as listed in subsequent sections Capital subsidy and electricity tax exemption Irrespective of the location of the project, new or expansion manufacturing units will be given a back-ended capital subsidy and electricity tax exemption on power purchased from the Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO). 8

12 Table 2 Incentive packages for various categories of investment Investment in fixed assets/eligible fixed Direct Employment Capital Subsidy Electricity tax exemption assets (USD Million) (No.) (USD) (no. of years) from CoP Years Years Years Years Years Years 500 and above Years Stamp duty concession Source: TN Industrial Policy % Exemption from Stamp duty on lease or sale of land meant for industrial use shall be offered for projects located in Industrial parks promoted by SIPCOT. Stamp duty will be calculated based on actual land or building value paid by manufacturing units to industrial parks Environmental protection infrastructure subsidy Dedicated Effluent Treatment Plants (ETP) and / or Hazardous Waste Treatment Storage and Disposal Facility (HWTSDF) set up by individual manufacturing units would be eligible for an Environment Protection Infrastructure subsidy of USD 50,000 or 25% of capital cost of setting up such ETP/ HWTSDF, whichever is less Structured incentive package for mega projects Apart from standard package of incentives, the State Government has also facilitated a structured incentive package for mega projects, as per the following categories: 1. Mega project Investment range between USD 60 million to 170 million 2. Super Mega Investment range between USD 170 million and 800 million 3. Ultra mega Investment above USD 800 million 9

13 Incentive packages for each category of mega projects are as listed below: Mega project Net output VAT+CST paid to be given as Investment promotion subsidy/soft loan for 10 years from the date of commercial production (ceiling of 80% of investment made in EFA within the investment period) Super Mega: Net output VAT+CST paid to be given as Investment promotion subsidy/soft loan for years from the date of commercial production (ceiling of % of investment made in EFA within the investment period) Ultra mega: Net output VAT+CST paid to be given as Investment promotion subsidy/soft loan for 16 years from the date of commercial production (ceiling of 100% of investment made in EFA within the investment period) An additional 10% output VAT+CST paid will be given as Investment Promotion subsidy/soft loan to the investors if they double the committed employment levels within the investment period, which is capped to the investment made in the EFA during the Investment period Investment opportunities in Tiruppur Textiles Home Textiles Handloom & Handloom Products Cotton Yarn and Fibre Yarn Silk and silk Products Technical Textiles Clothtech Buildtech Meditech Protech Agrotech Packtech Sportech Non woven Raffia and Coir Products Apparel Manufacturing Cotton Readymade garments Knitted garments Processing & finishing 10

14 Key connects and links Key websites of Government of Tamil Nadu Portal to Government of Tamil Nadu Tamil Nadu Industrial Development Corporation (TIDCO) Energy department Tamil Nadu Infrastructure Development Board Tamil Nadu Energy Development Agency Micro, Small and Medium Enterprises Department Agricultural marketing Handloom export promotion in Tamil Nadu Transport Department About industrial parks Madras Export Processing Zone About Software & ITES Guide to investing in Tamil Nadu, policies, Tamil Nadu Vision 2023, step by step approach to establishing a company Tamil Nadu Global Investors Meet Key Websites of Government of India FDI policies Foreign Trade policies Electronics industry & IT opportunities Foreign Investment promotion Board Environmental Laws Renewable energy opportunities Power projects opportunities Food and Agro Processing opportunities Department of Heavy industries Infrastructure 11

15 Additional Chief Secretary to Government of Tamil Nadu Industries Department Phone: Fax: Nodal Agency Tamil Nadu Industrial Guidance and Export Promotion Bureau 19-A, Rukmini Lakshmipathy Road, Egmore, Chennai Phone: Fax : directorguidance@gmail.com Visit us at TAMIL NADU GLOBAL INVESTORS MEET 2015 I N V E S T O R S P A R A D I S E

Tiruvannamalai Overview

Tiruvannamalai Overview Tiruvannamalai 1.1. Overview Tiruvannamalai lies in the northern part of Tamil Nadu, and 200 Km from the state capital Chennai. The district lies between 78 o 20 ' and 79 o 50 ' of the eastern longitudes