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Tamil Nadu Industrial Policy 2021 & New Industrial Policy of Gujarat, 7 August 2020 to 7 August 2025

01/03/21 14:17

The Embassy of India, Athens would like to inform that the State Government of Tamil Nadu has announced a new, more investor-friendly, Industrial Policy 2021. Copy of the Policy is attached for your reference.

Ιt offers a host of incentives, inter alia:

Structured Package - As a path-breaking initiative, the number of “C” Districts have been expanded to cover 22 districts, which will usher investments to all regions of the State. Projects that are Mega and Ultra-Mega in “A” Districts, or Large, Mega and Ultra-Mega in “B” and “C” Districts shall be eligible for Structured Package of Incentives. The Structured Package of Incentives includes: Investment Promotion Subsidy, Standard Incentives, Training Subsidy, Electricity Tax Incentive, Land Cost Incentive, Stamp Duty Incentive, Interest Subvention, Green Industry Incentive, SGST Refund on Capital Goods, Quality Certification Incentive, Intellectual Property Creation Incentive.

Incentives for Logistics Infrastructure - 50% Concession on Stamp duty payable on lease or purchase of land/shed/buildings meant for industrial use shall be offered in parks promoted by SIPCOT in “A” & “B” Category Districts. In all “C” districts, 100% Concession on Stamp duty payable on lease or purchase of land/shed/buildings meant for industrial use shall be offered in parks promoted by SIPCOT/SIPCOT JV/ SIDCO.

Incentives for Sunrise Sector - To provide a thrust to the sunrise sectors, a special package of incentives has been proposed in this Policy. The Government of Tamil Nadu shall encourage the adoption of innovative technologies such as Industry 4.0 for focus and sunrise sectors under the Research and Technology Adoption Fund. Further, incentives shall be provided to industries in sunrise sectors and emerging segments that seek to promote advanced technologies.

Incentives for Foreign Direct Investment - The State is implementing new initiatives such as completely digitizing government-to-business (G2B) interactions through the development of a New Single Window Portal, development of Central Inspection System to monitor compliance inspection, Deemed Clearances, Comprehensive Land Portal, Construction Permit Portal, creation of Investment Facilitation Desks across countries and sectors and automatic renewal of select licenses. All enterprises with a proposed investment in ‘plant and machinery or equipment’ that exceeds Rs.50 cr., and turnover that exceeds Rs.250 cr. are eligible to make use of the current Single Window Portal. The current Single Window Portal offers 38 services/ clearances pertaining to 14 Departments.

Incentives for Industrial Parks - SIPCOT now allows allottees who have used up 50% of their allotted area, to construct Plug & Play facilities and sublease it to others . A special incentive package shall be provided to developers of private industrial parks in this Policy. Investor Facilitation Desks have been set up to provide information to entrepreneurs regarding the scope of setting up of industries in the state of Tamil Nadu, give them guidance on the procedural aspects of starting industries, incentives and facilities available and, assist them in resolving any problems they may face in setting up an industry. Desks for Taiwan and the USA have already been created. A dedicated desk and portal for Non-Resident Tamils – “Yaadhum Oorae” has been constituted to encourage and facilitate investments in Tamil Nadu by the substantial Tamil diaspora spread across the globe. The State also has joint working committee agreements with Japan, U.S.A., U.K., U.A.E., Korea, and Germany to further international cooperation for industries.

Incentives for Sub-Large Projects - Industries/developers will also be permitted to establish Sub-Stations, transmission, and distribution power networks on their own if they comply with technical specifications of TANGEDCO / TANTRANSCO. - Uninterrupted Power Supply shall be provided through a dedicated dual network. - Digital meters with AMR facility will be provided at the feeder level. - Industries / developers will be free from power cuts, peak hour load restrictions, power holidays, and other similar restrictions.

Incentives for R&D Projects High-level implementation guidelines have been provided in this Policy and detailed operational guidelines/clarifications will be issued from time to time - As one of the pioneering States in R&D, this Policy includes R&D as part of Eligible Fixed Assets. The Government of Tamil Nadu shall provide incentives to R&D Projects in the State to further the development of intellectual property and adoption of technology in industries. Stand-alone R&D projects shall be eligible for the following Incentives, in addition to the Standard Incentives, subject to the following conditions: - Must have a Minimum Investment of Rs. 50 cr. in Eligible Fixed Assets and creation of Employment for 50 persons - Clearly demarcated facilities inside or outside the industrial unit. - Must be located in Tamil Nadu - Must be Registered with the Department of Scientific and Industrial Research, Government of India (DSIR) 16.1 Land Cost Incentive for Standalone R&D Projects R&D projects shall be given an incentive of 50% of the cost of purchase or lease of land for up to 20 acre, subject to a ceiling of Rs. 50 lakh/acre. This shall be provided as a reimbursement upon commencement of the R&D.

Alsom the Embassy of India, Athens would like to inform that the State Government of Gujarat has announced a new Industrial Policy 2020 (7 August 2020 - 7 August 2025), a copy which is enclosed for ready reference. The new Policy factors in diverse inputs received from various sectors of business and hence is now qualitatively more investor-friendly., especially for MSMEs.

The highlights of the new Industrial Policy are:

  • The State’s next wave of growth will be driven by mega industrial infrastructure projects, such as the Delhi - Mumbai Industrial Corridor (DMIC), Mumbai Ahmedabad High Speed Rail, Gujarat International Financial Tech (GIFT) City, 30,000 MW Renewable Energy Target by 2022 among others.
  • To support these projects, the policy introduces Reforms in regulatory mechanisms for Ease of Doing Business and has earmarked land parcels available for industrial use across the state, which may be viewed on an online portal htps:// Additionally, the State Government will facilitate industries in getting “Government Land” on lease to industrial enterprises at 6% of market rate for long term up to 50 years.
  • In light of Covid-19, Gujarat will offer Special Relocation Incentives to industries planning to relocate their operations and/or diversify supply chains.
  • Initiatives are also being taken by the state to reposition Gujarat’s MSMEs on a global level such as Capital and Interest Subsidy, Quality Certification, etc.
  • The policy also further eases the process of utilizing rooftop Solar Power in MSMEs.  
  • Provisions are being made to accelerate and strengthen the startup ecosystem through a separate fund under GVFL for smaller ticket funding, Gujarat e-Marketplace, etc.
  • Financial services, Health services, Transport & Logistics services, Audio Visual services, Construction related engineering services and Environmental services are now eligible for special incentives for service sector MSMEs.
  • In line with the mission of Atmanirbhar Bharat, the State has identified 15 thrust sectors for industrial promotion which have been segregated in 2 categories: Core sectors and Sunrise sectors (new/upcoming). (Details in Table on Page 17).
  • Additionally, the policy introduces incentives for greater compliance with environmental standards & supports development of latest sustainable industrial infrastructure to reduce air and water pollution.
  • To promote Skill enhancement, the State Government intends to introduce industry-specific short term/ long term/ modular courses in the existing ITIs, Polytechnic and Engineering colleges with active participation of the user industry.