Koushan Das of Dezan Shira & Associates’ Business Intelligence division explains why investors are confident of SIPCOT-endorsed projects – from SEZs to industrial parks. This package covers stamp duty concessions on logistics infrastructure, incentives for sunrise sectors, such as electric vehicles and battery manufacturing, technical textiles, renewable energy components manufacturing, biotechnology, pharmaceuticals, etc., ease of clearances for foreign enterprises that meet a certain investment threshold, etc. SIPCOT also acts as a nodal agency of the Tamil Nadu government for the approval and disbursement of the Structured Package of Incentives to large industrial units (Tamil Nadu Industrial Policy. The Tamil Nadu government hopes to generate 200,000 additional jobs through these new parks. Each new industrial park will be spread across 13,500 acres. It is now in the process of setting up 11 new industrial parks, as per a Confederation of Indian Industry and KPMG report. So far, SIPCOT has developed 24 industrial complexes in 15 districts and six sector-specific special economic zones (SEZs) spread over 35,043 acres. It provides basic and comprehensive infrastructure facilities for industrial units in these areas. What is SIPCOT and how does it promote industrial activity in Tamil Nadu?Įstablished in 1971, SIPCOT is a state entity tasked with the setting up of industrial complexes in Tamil Nadu. In this article, we spotlight the industrial complexes, parks, and growth centers managed by SIPCOT – covering their locations, type of industrial activity hosted, and land allotment. Moreover, several state-owned entities jointly work to develop industrial infrastructure in Tamil Nadu, including the Tamil Nadu Industrial Development Corporation Ltd (TIDCO), State Industries Promotion Corporation of Tamil Nadu (SIPCOT), Tamil Nadu Industrial Investment Corporation Limited (TIIC), and Tamil Nadu Small Industries Development Corporation Limited (TANSIDCO). There are sister cities agreements in place between a) Chennai and Denver and San Antonio, and b) Coimbatore and Toledo. Leading US companies in the state include Ford, Dell, and Caterpillar. Tamil Nadu hosts more than 300 US companies with 375 projects worth around US$11 billion in investments. The state is a major foreign direct investment (FDI) destination in India for US businesses. The ease of doing business in Tamil Nadu is another attractive consideration for foreign investors – supported by ICT-enabled governance.
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