INDUSTRIES EPARTMENT POLICY NOTE. DEMAND No.27 INDUSTRIES P. THANGAMANI MINISTER (INDUSTRIES) Government of Tamil Nadu 2012

Transcription

1 INDUSTRIES EPARTMENT POLICY NOTE DEMAND No.27 INDUSTRIES P. THANGAMANI MINISTER (INDUSTRIES) Government of Tamil Nadu 2012

2 POLICY NOTE CONTENTS Sl. No. Headings Pages Introduction Tamil Nadu Industrial Development Corporation Limited State Industries Promotion Corporation of Tamil Nadu Limited 3. Tamil Nadu Industrial Investment Corporation Limited 4. Tamil Nadu Newsprint and Papers Limited 5. Tamil Nadu Cements Corporation Limited 6. Tamil Nadu Minerals Limited Tamil Nadu Magnesite Limited Tamil Nadu Industrial Explosives Limited Tamil Nadu Salt Corporation Limited 10. Tamil Nadu Industrial Guidance and Export Promotion Bureau 11. Department of Geology and Mining Department of Sugar (Contd ) i ii

3 PERFORMANCE DETAILS OF THE CORPORATIONS / DEPARTMENTS UNDER THE CONTROL OF INDUSTRIES DEPARTMENT CONTENTS Sl. No. Headings Pages 1. Tamil Nadu Industrial Development Corporation Limited State Industries Promotion Corporation of Tamil Nadu Limited 3. Tamil Nadu Industrial Investment Corporation Limited 4. Tamil Nadu Newsprint and Papers Limited 5. Tamil Nadu Cements Corporation Limited 6. Tamil Nadu Minerals Limited Tamil Nadu Magnesite Limited Tamil Nadu Industrial Explosives Limited Tamil Nadu Salt Corporation Limited 10. Department of Geology and Mining Department of Sugar iii

4 INDUSTRIES DEPARTMENT POLICY NOTE INTRODUCTION The Importance of the Manufacturing Sector Manufacturing industries are the prime movers of the economy of a country. Manufacturing industries not only provide people with different goods, thereby satisfying human wants and needs, they also provide employment to them. Given the fact that employees in the manufacturing industries generally earn higher wages and receive more generous benefits than employees in other sectors, manufacturing contributes much to the progress of a country. Manufacturing companies are contributing to the country's income through the taxes being paid by them. Compared to other sectors, manufacturing sector has higher productivity. The growth in productivity results in better living standards. The manufacturing sector provides important material support for national infrastructure and for national defence. Increased export of manufactured goods and import-substitution goods brings down the trade deficit of a country. The maintenance of a strong and vibrant manufacturing sector is essential to other high value-added sectors of the economy, including design, telecommunications, and finance. In short, a vibrant manufacturing industrial base leads to the prosperity of the State and the country. The Manufacturing Sector in Tamil Nadu Tamil Nadu is currently ranked the fourth largest state in terms of its economic size. In the Tamil Nadu economy, the share of the agricultural sector is 12.6%, the secondary 2

5 sector is 25.8% and the services sector is 61.6%. The share of the secondary sector comprises manufacturing, electricity, gas and construction industries. Within the secondary sector, the share of manufacturing industries is 19.5%. Tamil Nadu is, no doubt, one of the major manufacturing hubs in India and the largest in South India. Tamil Nadu produces a range of manufacturing products like automobiles & components, castings & forgings, pumps & motors, garments & textile products, leather products, chemicals & plastics, etc. Today, Tamil Nadu has a lion s share in the country s industrial output and carved for itself, a pride of place in the industrial map of India. Historically, Tamil Nadu has been one of India s most progressive states and is amongst the top three on several economic and social indicators. Tamil Nadu is ranked first among the States in terms of the number of factories and the number of industrial workers. It is ranked third in terms of investment in fixed capital, value of industrial output and the net value addition. Further, Tamil Nadu is ranked first in the country in electronic hardware manufacturing & exports. Traditionally, Tamil Nadu has a strong presence in the manufacture of engineering, automobiles & components, textiles, leather products, etc. The share of Tamil Nadu as a percentage of the national production in these industries is as follows: Automobiles & Components 30-35% Textiles 20 25% Leather products 35 40% Electronic Hardware 20 25% Software & IT Enabled Services 15% Tamil Nadu offers a number of competitive advantages to attract industries. It has a rich capital of human resource endowments capable of meeting the needs of modern industry. The State ranks primary with an annual turnout capacity of nearly 3 4

6 2,26,000 engineering graduates and an 1,71,600 trained polytechnic students offering immense scope for the establishment of knowledge based industries and services. Tamil Nadu is the most technically powerful knowledge State" in the country. Abundant availability of skilled manpower at relatively lower wage costs coupled with harmonious and peaceful industrial relations. Tamil Nadu has relatively a welldeveloped infrastructure to offer to investors. Tamil Nadu has an excellent port logistics with 4 major modern sea-ports apart from 20 minor ports. All these competitive strengths of Tamil Nadu offer distinct advantages to investors making the State, the most preferred investment destination. Enthused by the proactive approach of the State Government, a number of investors including Fortune 500 companies have proposed to establish their manufacturing base in Tamil Nadu. At present, Companies like Yamaha, Danfoss, Hitachi, Enfield, Sundaram Clayton, TI group, Amway, Saint Gobain, Sanmina-SCI, Phillips Carbon Black, Nokia, Harsha-PPG and Daimler have proposed to make large investment in the new/expansion projects in Tamil Nadu. Apart from these, many other companies are in the advanced stage of discussions with the Government to finalise their investment plans. The Government is confident of attracting over `20,000 crores in the Manufacturing sector within the next six months. When the present Government assumed office, the Government had committed to setting Tamil Nadu on a high growth trajectory and to securing to all its people the benefits of rapid economic growth. The vision of the present Government is that Tamil Nadu should be the numero uno State in the country. 5 6

7 The Government has embarked, for the first time in Tamil Nadu, to prepare a Vision Document Tamil Nadu Vision 2023 for the State as a strategic plan for achieving overall development. This Vision Document envisages Gross State Domestic Product (GSDP) at constant prices to grow at 11% or more per annum in the next 10 years - about 20% more than the expected growth rate of India s Gross Domestic Product (GDP) over the same period. This warrants manufacturing sector in the State to grow by about 14% per annum between This Government has proposed to introduce a new set of policies and reforms to accelerate the pace of industrialization. The work on formulating the following policies will be announced shortly: 1. Tamil Nadu Industrial Policy, Tamil Nadu Biotechnology Policy, Tamil Nadu Aerospace Industrial Policy, Tamil Nadu Automobiles & Auto Components industry Policy, Tamil Nadu Land Acquisition Policy for Industries, The above set of policies will facilitate rapid industrialization of the State and place Tamil Nadu in higher growth orbit. 7 8

8 TAMIL NADU INDUSTRIAL DEVELOPMENT CORPORATION LIMITED Tamil Nadu Industrial Development Corporation Limited (TIDCO) was established in 1965 as a Government of Tamil Nadu Enterprise for the development of large and medium Industries in association with Private promoters. TIDCO s authorized share capital is `125 crores of which `72 crores has been subscribed by the Government of Tamil Nadu. TIDCO has promoted several joint ventures for manufacturing products such as wrist watches, auto parts / components, iron and steel products, textiles, fertilizers, chemicals, pharmaceuticals, processed food products and leather products. It has also ventured into setting up of IT/ITES Parks, Bio- Tech Parks, Special Economic Zones (SEZ), Infrastructure Projects, Road Development Projects, Agri Export Zones and Special Investment Regions. TIDCO s portfolio of investments valued at cost is `331 crores is mostly in the form of equity investments in Joint Venture Companies and investments made in projects under implementation. TIDEL Park, TICEL Biopark, Mahindra World City, Ascendas IT Park, Titan Industries, IT Expressway, Chennai Trade Centre and Tamilnadu Petroproducts Ltd are some of the well known Industrial and Infrastructure initiatives of TIDCO. TIDCO is developing IT and ITES SEZ, Biotechnology Park- II at Taramani and a Shipyard and Minor Port Complex, A Liquified Natural Gas (LNG) Import Terminal and related gas pipeline infrastructure in Tiruvallur district, a Petroleum Refinery Project, AEZ for Cashew in Cuddalore District, IT Park at Coimbatore and Multi Product SEZ at Nanguneri. TIDCO is also planning to implement multi product SEZs at Ennore in Thiruvallur district, Perambalur and Krishnagiri district. 9 10

9 As per the directions of Government TIDCO is also taking steps for implementing, Aerospace Park, Bio Technology Core Instrumentation Facility, Expansion of Chennai Trade Center, Integrated Food Irradiation Centre and Integrated Financial Service Centre. LNG Import Terminal and Associated Pipeline infrastructure TIDCO and Indian Oil Corporation Limited are jointly implementing a 5 million tonnes per year capacity Liquefied Natural Gas (LNG) Import Terminal Project in the Ennore Port. The investment for this terminal is estimated to be `4,320 crores. Including the investment required for the pipeline infrastructure to distribute about 18 million cubic metres of natural gas per day from this terminal and for the gas based power plant, the total investment in this project is estimated at about `10,000 crores. State Government has granted a Package of Incentives for the proposed LNG Terminal project and has offered facilitation in setting up City Gas Distribution networks in Chennai and other cities and towns in Tamil Nadu and for establishing retail networks for Compressed Natural Gas (CNG) for transport sector. The Front End Engineering and Design work for this project has commenced. The construction of this terminal will start in December, 2012 and it will be completed in To expedite the implementation of this project TIDCO and Indian Oil Corporation Limited signed a Heads of Agreement on in the presence of Hon ble Chief Minister. Shipyard cum Port Complex in Kattupalli / Thiruvallur district TIDCO and Larsen and Toubro Limited have completed the Phase-I of the Shipbuilding 11 12

10 Yard and Port Complex in Kattupalli, Ponneri Taluk of Thiruvallur district. The total investment in the first phase of this project is `3,375 crores. This project will be commissioned shortly. The second phase of the project with an additional investment of about `1,300 crores will be taken up in 2013 and will be completed in Petroleum Refinery Project of Nagarjuna Oil Corporation Limited. The 6 million tonnes per annum capacity of Petroleum Refinery Project of Nagarjuna Oil Corporation Limited (NOCL) a joint venture of TIDCO and M/s. Nagarjuna Fertilizers Limited at Thiruchopuram in Cuddalore Taluk will be commissioned in the current year. The total investment in this project is estimated to be about `9,660 crores including those investments made in associate facilities. NOCL will take up its expansion project in 2014, which will be completed by By this expansion, the refining capacity of NOCL will be increased from 6 to 15 million tonnes per year. The additional investment for this expansion project is estimated at about `12,000 crores. Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) in Cuddalore & Nagapattinam districts. The revised final proposal for establishing a Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) in Cuddalore and Nagapattinam districts was sent to Department of Chemicals and Petrochemicals, Government of India on by Government of Tamil Nadu. The total investment for external linkage roads and other infrastructure augmentation and utilities projects for the PCPIR has been estimated at `13,354 crores. Over a period of 10 years, investments of about `92,160 crores will be mobilized in this PCPIR. The total employment generation 13 14

11 expected during this period is estimated at about 7,50,000. TRIL Info-park Ltd In acres of land at Taramani, Chennai an IT-ITES SEZ complex is under construction. M/s. Tata Realty and Infrastructure Limited is the co-promoter of this joint venture of TIDCO. The first two building blocks of 6.5 lakhs sq.ft. each have been completed and fully leased out. The third block comprising 14 lakhs sq.ft. is scheduled to be completed during this year. Bio-Technology Park-II TICEL Bio-Park Limited, a joint venture of TIDCO and TIDEL has established a state-ofthe art Bio-Technology Park-I at Chennai in the year The Bio-labs are fully occupied. TICEL is constructing Bio-Technology Park-II for catering to the needs of Bio-Tech Research and Development, (BSL-2 / BSL-3) with a built up area of 6.13 lakhs sq.ft. at a cost of `150 crores. The Project is scheduled for completion shortly. I.T. Park at Coimbatore TIDEL Park Coimbatore Limited, a joint venture of TIDCO, TIDEL, ELCOT and STPI has constructed an IT Park in ELCOT-SEZ at a cost of ` crores with built up area of 17 lakhs sq.ft. sq.ft Six IT companies have commenced work in this IT Park. Free Trade Warehousing Zone in Thiruvallur District A logistic park has been proposed to be set up in Ponneri Taluk of Tiruvallur District at an estimated cost of `441 crores through Jafza, Dubai. Formal Approval has been obtained from Govt of India. The phase 1 of the project will be implemented in 135 acres at an estimated cost of `190 crores. When this project is fully commissioned, it may generate employment opportunities for 500 persons

12 Perambalur SEZ A multi product SEZ is being jointly developed by TIDCO and M/s GVK Group of Hyderabad in Perambalur District in an area of around 3000 acres of land. Ministry of Commerce & Industries, GoI has accorded formal approval for the development of SEZ. TWAD Board has carried out detailed investigation for the water supply arrangements for this project. Environmental Impact Assessment Study has been completed. Private lands of about 2,900 acres have been purchased by the Project Company. The land earmarked for the SEZ encompasses around 135 acres of Government poramboke lands. TIDCO is in the process of leasing the above lands to the project. The project activities will be taken up after receiving the SEZ notification from Government of India. Aerospace Park TIDCO is planning to establish an Integrated Aerospace Park with the objective to support the development of aerospace industry covering design, engineering, manufacturing, servicing and maintenance of aircrafts in Tamilnadu. In order to achieve the objective of this program, the following approaches are proposed. 1. It has been planned to set up a MRO facility in an area of around 50 acres adjoining the existing Chennai Airport. The land has been identified. 2. It has been proposed to develop the components manufacturing park for aerospace industry in Sriperumbudhur in an area of around 300 acres. The land is being acquired by SIPCOT. SEZ in Krishnagiri District TIDCO has proposed to implement a multi product Special Economic Zone, through 17 18

13 GMR Infrastructure Limited as a Joint Venture in Krishnagiri District. The JV partner has identified lands for this project. The lands are being procured through private negotiations. It is proposed to implement a sector specific SEZ for Engineering Sector in about 280 acres of land, at an estimated cost of `1,050 crores in Phase-1 of this project. When the project is fully completed, it is expected to generate employment for about 70,000 persons. Integrated Financial Services Centre TIDCO is taking steps to develop an Integrated Financial Services Centre near Chennai to attract both the domestic and overseas Financial Institutions to promote industrial development by providing financial services required for the industries to be set up in Tamil Nadu. STATE INDUSTRIES PROMOTION CORPORATION OF TAMIL NADU LIMITED State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) was established in the year 1971 to develop industrial growth in Tamil Nadu. The organization is involved in the formation of industrial complexes by providing basic and comprehensive infrastructure facilities for the industries to set up their units. Further, the organization was earlier vested with the task of providing financial assistance to medium and large industries by way of term loan and was discharging the agency function of the State Government to disburse various incentives to the industries throughout the State. But in the year 2000, to give main thrust to area development activities, the other functions, viz. term lending and disbursement of incentives, were transferred to TIIC. Due to the pro active policy of the Government and the positive role 19 20

14 played by SIPCOT several big industrial houses like Hyundai, Saint Gobain, Dell, Feng Tay Group, Harsha Group, Michelin Tyres, Tata Consultancy Services, Aditya Birla Group, Ashok Leyland, Videocon Group etc. have set up their units in SIPCOT Industrial Complexes/SEZs with huge employment potential. Developing and Maintaining Industrial Complexes The Corporation has so far developed 19 Industrial Complexes in 12 Districts across the State with acquisition of about 27,000 acres of land. Out of the allottable extent, it has so far allotted 19,212 acres of developed lands to 2,015 units and thereby attracted investment of about `85,000 crores, which created direct and indirect employment opportunity for about 4.70 lakh persons. Present Activities a) Oragadam Industrial Growth Centre (Expansion) The existing Oragadam Industrial Growth Centre has been expanded in an extent of about 1,150 acres. Two multinational companies viz., Renault & Nissan Automotive India Private Limited and M/s. Daimler India Commercial Vehicles Private Limited have been allotted land to an extent of about 1,000 acres for establishing mega automobile projects here with a huge investment of about `8,600 crores, creating employment opportunity for 9,000 persons. Besides this, a Vendors Park for R&N to accommodate accessories manufacturing units has also been created in an extent of 160 acres, of which acres have been allotted to 23 units. Of them, seven units have already commenced production. It is expected that when these units start functioning, it would envisage `1,170 crores of additional 21 22

15 investment and provide employment to about 5,400 persons. b) Pillaipakkam Industrial Complex Pillaipakkam Industrial Complex has been established in an extent of about 1,140 acres of land. Here, 380 acres of land has been allotted to Ashok Leyland-Nissan Consortium as per Government Orders for putting up their facility with an investment of `4,150 crores. It is expected that this would create employment opportunity to 18,000 persons. c) Theryoy Kandigai Industrial Complex A new industrial complex with 1,127 acres of Government poramboke land has been established at Thervoy Kandigai, Gummidipoondi Taluk, Thiruvallur District. In this Complex, 290 acres of land to M/s. Michelin India Tamilnadu Tyres Private Limited and 85 acres to Harsha Group have been allotted based on the MoU entered between the Government and the Companies concerned. Further, based on Government orders acres to M/s. Bekaert Industries Private Limited and acres to Tamilnadu Electricity Board have been allotted. These allotments would envisage an investment of `6,707 crores and provide employment opportunity to 4,800 persons. d) Mappedu Industrial Complex The entire extent of acres in this complex established at Mappedu, Thiruvallur District has been allotted to Chennai Port Trust for setting up an Integrated Dry Port and Multi Modal Logistics Hub with an investment of ` crores and with an employment potential to 700 persons. Ongoing Schemes At present, the Corporation is in the process of acquiring lands for setting up of the following Industrial Complexes: (i) Thoothukudi Industrial Complex Phase-II Remaining extent of 1,022 acres of land in Therkuveerapandiapurm and 23 24

16 Meelavittan villages in Ottapidaram & Thoothukudi Taluks, Thoothukudi District. (ii) Cheyyar Industrial Complex Expansion - 2,300 acres of land in Kunnavakkam and nine other villages in Cheyyar Taluk, Thiruvannamalai District. (iii) Sriperumbudur Industrial Park Expansion (Vallam-Vadagal) - 1,780 acres of land in Vallam & two other villages in Sriperumbudur Taluk, Kancheepuram District. (iv) Oragadam Industrial Growth Centre Expansion-II acres of land in Vaipur, Mathur & Perinjambakkam villages in Sriperumbudur Taluk, Kancheepuram District. (v) Madurai Industrial Park - 1,478 acres of land in Sivarakottai and two other villages in Thirumangalam Taluk, Madurai District. (vi) Tindivanam Industrial Park acres of land in Pelakuppam & two other villages in Tindivanam Taluk, Villupuram District. Industrialization of southern Districts SIPCOT is keen in developing the industrial complexes all over the state, particularly in the industrially backward southern districts, to maintain uniform industrial development. The Corporation has already set up its industrial complexes in some of the southern districts viz. Thoothukudi, Tirunelveli (Gangaikondan), Dindigul (Nilakkottai), Pudukottai and Sivagangai (Manamadurai). As pointed out above, it is now in the process of developing a new industrial complex (1,478 acres) in Thirumangalam Taluk, Madurai District. Further action is taken up for setting up of an Industrial Complex in Therkuveerapandiapurm and Meelavittan villages (remaining extent of 1,022 acres) and Ottapidaram village (1,533 acres), Ottapidaram Taluk at Tuticorin District. Creation of Land Bank In the competitive market, SIPCOT with a view to keeping adequate lands readily available with it to facilitate immediate allotment to the investors, it is in the process 25 26

17 of creating a Land Bank with acquisition of about 16,400 acres in 13 different locations covering six Districts and the Administrative Sanction proposals for acquisition of lands for the schemes are in various stages of process. Special Economic Zones (SEZ) In order to attract foreign direct investments and to promote exports, SIPCOT has actively promoted seven Sector Specific Special Economic Zones (SEZ) in its Complexes / Parks / Growth Centers as given below: Hi Tech SEZ ( acres) in Sriperumpudur Hi-Tech SEZ ( acres) in Oragadam Engineering Sector SEZ ( acres) in Perundurai Transport Engineering Sector SEZ ( acres) in Gangaikondan Footwear and Leather Product SEZ ( acres) in Irungattukottai Sector Specific SEZ for Engineering ( acres) in Ranipet Granite Industries SEZ ( acres) in Bargur Many industrial giants like DELL India Private Limited, Motorola, Sanmina, Samsung Electronics, Foxconn, etc., have established their facility in these SEZs with huge investment. So far, 1, acres of land have been allotted to 106 industrial units here through which direct and indirect employment opportunity has been created to about 1.77 lakh persons. Environmental Protection To dispose the hazardous industrial waste by suitably converting the waste, a massive scheme viz., Hazardous Waste Treatment, Storage and Disposal Facility (HWTSDF) has been implemented in an extent of acres at Export Promotion Industrial Park, Gummidipoondi by Tamilnadu Waste Management Limited. Civil Works SIPCOT has been focusing on provision of world class infrastructure in its industrial 27 28

18 complexes in order to attract more and more investments to the State. During the year , the works towards the maintenance of roads, water supply, street lights, sewerage system, buildings, etc. in various Industrial Complexes / Parks were taken up. For the usage of the industries located in Bargur and Thervoy Kandigai Industrial Complexes and the villagers living around as well, formation of new roads connecting the complexes with the State Highways is under progress through Highways Department as deposit work at a scheme cost of `34.00 crores in total. In order to provide the infrastructure facilities at international standard and at the same time to provide them within the scheduled time, for the first time in the history of SIPCOT, work order have been issued for comprehensive development of all the infrastructure works, such as, roads, drains, street lights, water supply system, amenity building etc. in Thervoy Kandigai and Pillaipakkam Industrial Parks (at an estimated cost of `49.90 and `23.50 crores respectively). Special Infrastructure Development Scheme SIPCOT is also involved in developing certain special infrastructure schemes, apart from developing industrial complexes / parks. (i) Apparel Park, Irungattukottai SIPCOT has established Apparel Park in an extent of acres of land in Irungattukottai industrial park and the entire extent has been allotted to 37 units. Besides basic infrastructure, special infrastructure facilities viz. dormitory for working women, crèche, dispensary, design and training centre, canteen etc., are created in a total extent of 41,000 sq.ft. (ii) Footwear Component Park, Irungattukottai SIPCOT has promoted Footwear Component Park in an extent of acres of 29 30

19 land in Irungattukottai Industrial Park. So far land has been allotted to 13 units through which about 750 persons would get employment. (iii) Footwear and Leather Products SEZ, Irungattukottai Footwear Design & Development Institute, which is functioning under the aegis of the Ministry of Commerce & Industry, Government of India, has been allotted 15 acres of land at free of cost in the non processing area for the establishment of an educational institution at a cost of ` crores. (iv) Industrial Corridor of Excellence SIPCOT is facilitating the creation of Industrial Corridors of Excellence (ICE) along the National Highways and preparing the study of Corridor Development Plan for each Region separately. (i) (a) Chennai Sriperumbudur Ranipet (Phase-I) : Revised Final Plan is in progress. As many as 26 potential sites have been identified to be developed into Industrial sites and four sites close to Arakkonam, Cheyyar and Ranipet have been short listed on priority suitable for development of Engineering, Electronics, IT, Logistics, Heavy metals, Agro processing, Agri based bio fuels, Leather and Health Care Products, etc. (b) Ranipet Hosur (Phase-II): Revised Interim Report is awaited from the Consultant. (ii) (a) Madurai Thoothukudi (b) Coimbatore Salem Revised Final Plan is in progress. Suitable locations have been identified in the draft Final Report for a Manufacturing Business Investment Region, Agri Business Investment Region, Knowledge Hubs and Special Tourism Investment Zone

20 (v) Skill Development Centers As announced by the Government, SIPCOT endeavours to provide employment to at least one person each from the families, who have given land of one acre and above for its Industrial Complexes in the Industries located in the complexes developed by it. Further, to upgrade the skill of the youth, SIPCOT has been taking action to create three Skill Development Centre at Gangaikondan Industrial Growth Centre, Tirunelveli District, at Thervoy Kandigai Industrial Complex, Thiruvallur District and at Oragadam Industrial Growth Centre, Kancheepuram District. The youth trained in these Skill Development Centers would be recommended for employment depending on their skill. (vi) Social Infrastructure Schemes / Corporate Social Responsibility Activities While acquiring lands, SIPCOT has also been caring for the welfare of the local persons living in and around the acquisition site implementing various social infrastructure schemes / facilities in those areas, such as, provision of houses to the displaced families, sanitation facility to village hamlets, construction of new school buildings / renovation of the existing schools, establishment of health center, fodder cultivation scheme, sports development activities, water facilities etc. At present, such facilities are being provided in the industrial complexes at Oragadam (Expansion) and Thervoy Kandigai. (vii) Construction of Dormitories SIPCOT has been taking action to construct two dormitories with all amenities one at Sriperumbudur and the other at Tiruppur. Each dormitory would accommodate 1,000 workers both women and men

21 (viii) Comprehensive Plan for the Development of Sriperumbudur Area SIPCOT is in the process of preparing through the Consultant a Comprehensive Plan to upgrade the basic and social infrastructure and to provide modern housing facility for the employees and the general public residing in and around Sriperumpudur. respect of 56 companies providing Structured Package of Assistance. SIPCOT has so far released `1, crores. Nodal Agency Functions SIPCOT also acts as a Nodal Agency of Government of Tamil Nadu in the sanction / disbursement of Structured Package of Assistance to large industrial units. Various incentives viz., Soft Loan on the VAT paid to Govt., Investment Promotion Subsidy (refund of VAT paid to Govt.), Capital Subsidy, ETP/Critical Infrastructure Subsidy, Electricity Tax refund and Training Subsidy are considered based on the Government Orders. SIPCOT has received Government Orders in 35 36

22 TAMILNADU INDUSTRIAL INVESTMENT CORPORATION LIMITED Activities Prior to India s Independence, Tamilnadu had no major investments in the Industrial Sector except a few Textile and Engineering Enterprises in and around Madras, Coimbatore and Madurai. In order to augment Tamilnadu s industrial development it was decided in 1948 to establish a State Level Financial Institution and consequently, the Tamil Nadu Industrial Investment Corporation Limited (TIIC) was incorporated on TIIC started functioning from It is the first State Financial Corporation to be established in the country. The main objective of the Institution is to provide financial assistance on long and medium term basis for the purpose of creating fixed assets by way of land, building and machinery for starting new industrial units as well as for modernisation and expansion of the existing industrial units. TIIC initially carried on lending activities with its own share capital. Since , it has been raising bonds guaranteed by the State Government and availing refinance facilities from Industrial Development Bank of India (IDBI) and subsequently through Small Industries Development Bank of India (SIDBI) for its lending operations. Presently, the main source for lending operations is the refinance by SIDBI and loans raised from Commercial Banks. TIIC has been functioning to continuously encourage industrial development in the State. Most of the successful industrial enterprises operating in 37 38

23 [ the State have been assisted by TIIC some time or other. TIIC has played an important role in the development of industries like sugar, cement, textile and textile machinery, paper and aluminium in the State. TIIC has also had its share in promotion of industries like Hosiery in Tirupur, Foundries in Coimbatore, Sericulture and Sago in Salem and Dharmapuri, Offset Printing and Match Units in Sivakasi. About 90% of the assistance extended by TIIC goes to the Micro, Small & Medium Enterprise (MSME) sector, especially to small scale industries. TIIC has also been giving support to the first generation entrepreneurs. The Share Capital of TIIC as on is ` crores. The details are as follows: (` in crores) Government of Tamil Nadu % Small Industrial Development Bank of India % (SIDBI) Government of Pondicherry % Insurance Companies, Banks including Co-operative Banks % Total % TIIC is operating a number of schemes to fulfill the needs / requirements of the entrepreneurs. Some of the important schemes operated by TIIC are: General Term Loan Wind Power Projects Micro Small Enterprises Fund Scheme Bill Finance Scheme for TNEB/ TWAD/TNPL Vendors 39 40

24 Working Capital Term Loan for Modern Rice Mill units/for Manufacturing units/for certain Service Sector units Grow an Entrepreneur Scheme (GES) Grow an Entrepreneur Scheme As a part of its commitment to social obligation, TIIC has introduced the Grow an Entrepreneur Scheme to help the first generation entrepreneurs from economically dis-advantaged backgrounds who are unable to offer requisite collateral security. Under this scheme, the promoter has to bring in 10% as capital and the balance 90% will be provided as loan by TIIC. Under the scheme a maximum loan of `5.00 lakhs is extended without collateral security. TIIC has so far assisted 2,976 beneficiaries and sanctioned `5,492 lakhs under this scheme which is being operated successfully. TIIC is also functioning as the operating agency for various State/ Central Government incentives. TIIC has disbursed `3.97 crores to the beneficiaries as subsidy from MSME Department, Government of India under Credit Linked Capital Subsidy Scheme (CLCS) scheme. The Corporation has also disbursed `8.90 crores as State Capital subsidy towards General Machinery and `0.76 crore as subsidy towards purchase of Generators. TIIC has so far assisted 1,11,803 units with a cumulative sanction of `9, crores upto The loan outstanding of the Corporation as on stands at `1, crores. TIIC has earned a net profit for the ninth consecutive year. For the year , the net profit was `40.00 crores (Provisional). The Corporation has started acting as a Corporate Insurance Agent from the end of Financial Year Through insurance 41 42

25 business, the Corporation has earned an income of `14.80 lakhs during the financial year TIIC is also providing training to interested entrepreneurs by conducting Entrepreneur Development Programmes. Besides during the year , TIIC has contributed `1 crore to Entrepreneurship Development Institute (EDI) of Government of Tamil Nadu to support the development of entrepreneurs in the State. Though Commercial Banks are also offering financial assistance to industries, TIIC continues to be the preferred financial institution for first generation entrepreneurs, people from rural backgrounds and others with little social support. Achievement of the Corporation in important areas of operations viz. sanction, disbursement and recovery Area of operation Sanction (including Bill Finance Scheme) Disbursement Recovery (` in crores) (Provisional) Action Plan for financial assistance for the years and Year (` in crores) Sanction Disbursement Recovery , ,

26 TAMIL NADU NEWSPRINT AND PAPERS LIMITED Tamil Nadu Newsprint and Papers Limited (TNPL) was promoted by the Government of Tamil Nadu in the year The factory is located at Pugalur in Karur District. TNPL grew from a manufacturing capacity of 90,000 tons per annum (tpa) of Newsprint & Printing & Writing Papers in 1984 to 4,00,000 tpa in Accordingly the pulp production capacity has been increased gradually from 250 tonnes per day to 880 tons per day. Mission To emerge as the market leader in the manufacture of world class eco-friendly papers, adopting innovative technologies for sustainable development Production and Capacity Utilization during the year The total production was 3,50,970 metric tonnes with 88% capacity utilization. Turnover and Profit during the year The expected turnover will be about `1, crores and the profit before tax will be about ` crores. Significant initiatives taken during Setting up a 600 tpd Cement Plant in its premises to convert waste materials viz. lime sludge and fly ash generated in the process of manufacture of paper, into high grade cement at a capital outlay of `80 crores. The project will be completed in May Installation of a 300 tpd De-inking pulp plant at a capital outlay of `174 crores to meet the shortfall in pulp production. De-inked pulp will be produced from waste paper. The project will be completed by September Revamping of steam and power generation system at a capital outlay of `135 crores. Installation of a new boiler and a turbo generator by replacing some of the old and less efficient equipments to augment the power generation capacity from MW to MW

27 The project will be completed by September TNPL ventured into farm forestry and captive plantation schemes for the first time in So far, 28 districts consisting of 15,018 farmers have been covered under the scheme. The Company has raised Farm Forestry and Captive plantation in 82,025 acres of land upto TNPL has targeted to reach 1,00,000 acres by March, Major initiatives scheduled for Setting up a Tissue Paper plant with a capacity of 100 tpd at a capital outlay of `200 crores to achieve further growth with a new product. Consultants for the project have been appointed. The project will be taken up for execution in September 2012 and completed in March Reclamation of polluted soil along the Noyyal river bed, through bioremediation technology by raising pulp wood trees under captive plantation scheme. As planned in , TNPL has completed planting of pulp wood tree saplings in 1,000 acres at an expenditure of `1.12 crores. Total expenses for reclamation of 1000 acres for six years from will be `5.52 crores. TNPL will implement the scheme in an additional area of 3000 acres during at an expenditure of `16.56 crores to be incurred over a period of six years from [ Community Welfare Programme TNPL has framed its Community Welfare Policies. TNPL spends approximately 3% of the net profit after tax for Corporate Social Responslibiity activities under major heads such as Education, Drinking Water, Health facilities, Infrastructure, Environmental Development, Culture and Heritage

28 TAMIL NADU CEMENTS CORPORATION LIMITED Tamil Nadu is the first state in India which established the Cement Plants under the Public Sector Undertaking. Alangulam Cement Plant was started in 1969 as the first Public Sector cement Plant. Tamil Nadu is the 3 rd largest producer of Cement in the country, next to Andhra and Rajastan, with an annual installed capacity of million tons. Tamil Nadu Cements Corporation Limited (TANCEM) is operating two cement plants, one at Alangualm with a capacity of 2 lakh tons per annum and the other at Ariyalur with a capacity of 5 lakh tons per annum. The Asbestos Cement Sheet Plant with a capacity is 28,800 MTs per annum at Alangulam and the Stoneware Pipe Unit with a capacity of 5,400 MTs per annum at Vridhachalam are the other plants of TANCEM. TANCEM is producing and selling cement and allied products. The annual turnover of TANCEM is `325 crores. TANCEM has been using limestone from various mines on behalf of the Government of Tamil Nadu for the manufacture and supply of cement, primarily to meet the requirement of various Government departments, particularly, Rural Development and Panchayat Raj Department, Tamil Nadu Electricity Board, etc., at concessional price. TANCEM also provides sustainable employment opportunities in backward districts like Virudhunagar and Ariyalur. Apart from this, TANCEM also plays a vital role in the procurement of cement from private manufacturers for the Rural Development and Panchayat Raj Department and ensuring prompt supply of Cement to various Blocks of District Rural Development 49 50

29 Agency for the implementation of rural development schemes. Steps taken by the Government to contain cement prices Government of Tamil Nadu has taken action to contain the increase in the price of cement and to ensure more cement available at a reasonable price to the poor and middle income people. Supply of Cement One lakh Metric Tonnes of cement per month is being procured from private cement manufacturers and sold to the public through the Tamil Nadu Civil Supplies Corporation at a rate not exceeding `200/- per bag. Increasing Cement Production It has been decided to increase the capacity of TANCEM s Plants to ensure more availability of cement to the Government at a reasonable price. In this regard: a. TANCEM has taken steps to convert wet process into dry process in the Alangulam Cement Plant and to increase the capacity of the Plant from the existing 2 lakh tonnes per annum to 4 lakh tonnes per annum at a cost of `165 crores. b. TANCEM has also decided to increase the capacity of Ariyalur Cement Plant from the existing 5 lakh tonnes per annum to 15 lakh tonnes per annum at a cost of `350 crores. Procurement of Cement from private manufacturers for Rural Development and Panchayat Raj Departments The cement requirement of Rural Development and Panchayat Raj Department for the year is around 14 lakh tonnes. TANCEM has been supplying around 4 lakh tonnes to that department at a price of ` per bag. To meet the remaining quantity, TANCEM procures cement from private manufacturers at `210/- per bag and supplies the same to the Rural Development 51 52

30 and Panchayat Raj Department. TANCEM has been permitted by the Government to sell the cement produced in Alangulam Cement Plant in the open market. Procurement of Cement to the contractors of Public Works and Highways Departments, Housing Board, Slum Clearance Board, Tamil Nadu Water Supply and Drainage Board, etc. by coordination with the private cement manufacturers The Private cement manufacturers are supplying cement to the contractors of Public Works and Highways Departments, Housing Board, Slum Clearance Board, Tamil Nadu Water Supply and Drainage Board, etc. at a reduced rate of `245/- per bag as fixed in the schedule of rates of PWD. Sales in the open market In order to contain the cement price, TANCEM is selling cement to public through Stockists at an affordable price. Financial Position TANCEM earned a net profit of `56 lakhs during Energy Conservation One Belt Bucket Elevator at a cost of `1.50 crores has been installed in Ariyalur Cement Plant as an energy saving measure Proposed Measures in Energy Fuel Conservation Two additional Belt Bucket Elevator systems will be installed in Ariyalur Cement Plant during at a cost of `2 crores in place of the power intensive pneumatic conveying systems. Waste heat recovery system will be installed in Ariyalur Cement Plant at a cost of about `25 lakhs to utilize the waste heat released from the clinker cooler. Environmental Management Two numbers of Clinker Cooler Electro Static Precipitators will be installed in Ariyalur Cement Plant at a cost of `6.5 crores to arrest the fugitive emission from the clinker cooler

31 TAMIL NADU MINERALS LIMITED TAMIN, a Government of Tamil Nadu undertaking was established in April, The main objective of the organization is to exploit, process and market granite raw blocks, granite products, major minerals and mineral based products. TAMIN is excavating Black, White, Paradiso and Multi Colour Granites, major minerals like Limestone, Graphite, Silica Sand, Vermiculite, Quartz and Feldspar in a scientific manner. TAMIN has been granted 150 leases for Black, Multi colour granites and Major Minerals. Modernisation of the industrial units of TAMIN i) TAMIN Granites, Manali The existing machineries are obsolete. Hence, it is not possible to produce bigger size building slabs which is in demand now-a-days. Hence, TAMIN has proposed to modernize the existing plant at an estimated cost of `12 crores for which techno economic feasibility report has been prepared which is under consideration of the Government. ii) Capacity enhancement of Sivaganga Graphite Factory Based on the present market demand, TAMIN has proposed to increase the production capacity of the Graphite Factory at Sivaganga. For modernizing the graphite factory at Sivaganga, TAMIN has initiated action to prepare a Detailed Project Report (DPR) with technical assistance from M/s. Institute of Metals and Minerals Technology (IMMT), Bhubaneshwar. Senior Scientists from M/s. IMMT visited the Sivaganga factory and assessed the potential for improvement. Based on the local and export demand TAMIN, has proposed to add an additional processing unit in the same place

32 iii) Capacity enhancements of Indian Standard Sand and Vermiculite units at Ennore & Ambathur units TAMIN has proposed to increase the production capacity of Indian Standard Sand Unit and Vermiculite exfoliation Plant so as to cater to the market demand. M/s. ITCOT was requested to study and report on the capacity enhancements of ISS Unit, Ennore and Vermiculite unit at Ambathur. Manufactured Sand In order to supplement and to control depletion of natural river sand resources, it is proposed to set up an Industrial Sand Unit in four different parts of the state under public private partnership to manufacture sand and supply for the construction industry in the state. Cubes and Kerb Stones It is proposed to produce Cubes and Kerb Stone from the Granite waste available from the quarries. TAMIL NADU MAGNESITE LIMITED Tamil Nadu Magnesite Limited (TANMAG), a Government of Tamil Nadu undertaking, an ISO (Quality Management System) and ISO (Environment Management System) certified company, was inaugurated on Earlier, M/s. Salem Magnesite Private Limited was operating this Magnesite Mines in the Chalk Hills area of Salem and the Mining lease granted to Salem Magnesite Private Limited was terminated on The Mines operated by the Salem Magnesite Private Limited was taken over by the Tamil Nadu Magnesite Limited on to operate the above Mines as Arasu Magnesite Mines. Magnesite (Magnesium Carbonate MgCO3) Mineral is a precious ore available in limited places in India and 70% of ore reserve 57 58

33 is available in Tamil Nadu particularly in Salem District. It is an essential raw material for manufacturing refractory (heat resistance) material used in Steel and Chemical Industries. Now mining operation is being carried out in hectares. Plan of Action for the year and The production and sales targets for the year & are as follows: (Quantity in MT) Particulars Production Sales Production Sales The raw magnesite produced in mines is used for producing Dead Burnt Magnesite (DBM) at Rotary Kiln Division (RKD) and Lightly Calcined Magnesite at Shaft Kiln Division (SKD) of TANMAG. Raw Magnesite Dead Burmt Magnesite Lightly Calcined Magnesite 1,13,000 1,13,000 1,13,000 1,13,000 30,000 30,000 30,000 30,000 17,000 17,000 17,000 17,000 The total Production capacity of RKD is 30,000 MT per annum. The total production capacity of SKD is 17,000 MT per annum. For the year , the Company is expected to earn a profit before tax of `15.00 crores (Unaudited) and for the year , it is targeted to earn a profit before tax of `16.00 crores

34 Achievements Tamil Nadu Magnesite Limited is consistently earning profit for the past 8 years. During the year , the Company sold MT of Magnesite and achieved highest turn over of `91.86 crores and earned a recorded profit before tax of `15.00 crores. The Company has attained ZERO STOCK position as on which is considered as historical achievement of TANMAG. TAMIL NADU INDUSTRIAL EXPLOSIVES LIMITED The Tamil Nadu Industrial Explosives Limited (TEL) was incorporated in 1983 and was manufacturing of quality explosives used for mining and related activities. Over the years it has built up a very good reputation in the market for maintaining very high quality. It has also received various safety awards. The Company supplies its products to Organised sector Companies like ONGC, Singerani Collieries, Hutti Gold Mines, NLC, Hindustan Copper Limited, Visagapattinam Steel Plant, Rajasthan Minerals, TANCEM, TANMAG, and private traders. Its products are also being exported to African, Latin American, Europe, Australia and East Asian Countries. The Company has obtained ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:1999 certifications for maintaining quality, safety and pollution-free environment

35 The Government of India has completely banned the manufacture, possession and sale of Nitro Glycerine (NG) Explosives with effect from , which contributed more than 70% of its turnover. This has adversely affected the performance of TEL and TEL started incurring losses from Since this ban, TEL has diversified into newer products such as Emulsion Explosives, which are well established now. Utilising the unused NG plant, a new plant for manufacture of Mono Methyl Amine Nitrate (MMAN) has been erected. This is the second such plant in the country giving TEL a big competitive advantage in getting orders from ONGC. Action plan for current year and For the years , the Company has proposed a turnover of `76 crores by utilizing 100% capacity of all the plants. TAMIL NADU SALT CORPORATION LIMITED Tamil Nadu Salt Corporation Limited was established in 1974 and from its inception manufactures Industrial Grade Salt. This Corporation was allotted with an area of 5,524 acres of lands on long term lease basis from Government of Tamil Nadu in the coastal villages from Mariyur Valinokkam in Kadaladi Taluk of Ramanathapuram District. From the year 1991 this Corporation has expanded its activity into production of Iodised Salt and Double Fortified Salt (DFS). As on date, the Corporation has developed 3210 acres of leased lands and producing 1,60,000 tonnes to 1,70,000 tonnes of salt every year. TNSC is providing direct employment to 1,500 labourers and further 150 persons on the related activities. This Corporation has obtained ISO 9001:2008 certification for producing and 63 64