IndiaFilings / Learn / State Governments / Tamil Nadu Industrial Policy
Tamil Nadu Industrial Policy - Objectives & Incentive - IndiaFilings

Tamil Nadu Industrial Policy

The Tamil Nadu has always been at the forefront of economic growth in the country. The Government has made impressive strides in the field of automobiles, engineering, textiles, leather, Information Technology, electric hardware and hi-technology industries over the years. Therefore, to maintain its position as a progressive State, the Government has formulated Tamil Nadu Industrial Policy, which aims at providing the necessary infrastructure to ensure sustained industrialisation in Tamil Nadu. In this article, we look at the Tamil Nadu Industrial Policy in detail. Also, read about Punjab Industrial and Business Development Policy

Objectives

The following are the primary objectives of the Tamil Nadu Industrial Policy:
  • To obtain an annual average growth rate of 14% in the Tamil Nadu manufacturing sector.
  • To achieve sustainable industrial development and create gainful employment opportunities in the state of Tamil Nadu.
  • To enhance the growth of high technology industries including aerospace, nanotechnology etc.,
  • To achieve rapid industrialization of the Southern districts of Tamil Nadu.
  • To build world-class infrastructure for the industry.
  • To make Tamil Nadu the innovation hub, on the strength of world-class institutions in various fields.

Focus Sectors

The following are the sectors that will be supported under the Tamil Nadu Industrial Policy.
  • Automobile and Auto components sector
  • Renewable Energy Equipment manufacturing Industries
  • Biotechnology and Pharmaceuticals Sector and
  • Aerospace Industry

Ineligible Sectors

The following are the list of industries ineligible for incentives under this policy.
  • Sugar mills
  • Edible oil industries
  • Rice, wheat and flour mills 
  •  Mineral water and aerated soft drinks 
  •  Alcoholic beverages
  •  Fertiliser and animal feed manufacture 
  •  Mining and beneficiation 
  • Steel re-rolling, steel fabrication, stainless steel utensils 
  • Tobacco processing, cigarette or Beedi manufacture
  • Timber or wood processing
  • Servicing or repair facilities 
  • Services sector 
  • Cement Industry 
  • Power Generation Projects
  •  Any other industries as specified by Government

Implementing Agency

Under this policy, State Industries Promotion Corporation of Tamil Nadu (SIPCOT) and Tamil Nadu Investment Corporation (TIIC) which act as the nodal agencies for the various incentives listed out in this policy.

Incentive Offered

The assistance provided under the Tamil Nadu Industrial Policy are listed below:

Labour Sector Incentive

Under Labour sector incentive, flexibility in labour laws will be adopted for the welfare of labour. The flexibility in employment working conditions which includes working hours for women, 24x7 services (3 shifts), employment of women employees in the night shifts and flexibility in hiring contract labour will be allowed. Subsidy for Patent Registration/Quality Certification The cost for filing a patent application will be reimbursed to the industrial units with the limit of Rs. 1 lakh per patent registration or any other national or international certification. Subsidy for Training The Government will provide subsidy for training in the form of incentive to improve the skills and generate employment opportunities. Incentives for Manufacturing Sectors The manufacturing units mentioned above are eligible for incentives under this policy. The districts of the state are categorised as given below:
  • Category A - Chennai, Kancheepuram and Tiruvallur (3 districts) 
  • Category B - Other than A & C (20 districts) 
  • Category C - Madurai, Theni, Dindigul, Sivagangai, Ramanathapuram, Virudhunagar, Tirunelveli, Thoothukudi and Kanniyakumari (9 Southern districts)
Subsidy for Mega Project Super Mega Project-A means manufacturing project, new or expansion, Placed in A & B category districts with the below-following investment ranges and creating the employment:
Category Investment Range (Rs. in crore)
A B
Mega Projects Rs. 500 to 1500 crores if creating employment of 300 in 3 years Rs. 350- 1000 crores if creating employment of 200 in 3 years
Subsidy for Super Mega Project-A Super Mega Project-A means manufacturing project, new or expansion, placed in A & B category districts with the below following investment ranges and creating the employment:
Category Investment Range (Rs. in crore)
A B
Super Mega A Rs.1500 to 3000 crores if creating employment of 400 in 5 years. Rs. 1000 to 2000 crores if creating employment of 300 in 5 years.
Subsidy for Super Mega Project-B Super Mega Project-B means manufacturing project, new or expansion, placed in A & B category districts with the below following investment ranges and creating the employment:
Category Investment Range (Rs. in crore)
A B
Super Mega B Rs. 3000 to 5000 crores if creating employment of 600 in 6 years. Rs. 2000 to 4000 crores if creating employment of 500 in 6 years.
Ultra Mega Project Ultra Mega Project means manufacturing project, new or expansion, placed in A & B category districts with the below-following investment ranges and creating the employment:
Category Investment Range (Rs. in crore)
A B
Ultra Mega Rs. 5000 crores if creating employment of 700 in 7 years. Rs. 4000 crores if creating employment of 600 in 7 years.

Standard Incentives

The industries which fall under the categories A & B districts will be eligible for the following standard incentives: Reimbursement of Capital Investment The manufacturing units located within the SIPCOT industrial parks will be provided with an additional capital subsidy of 50% of the total cost of the project. Stamp Duty Concession The subsidy of 50% of the stamp duty and transfer duty will be remitted by the government on the purchase of building or land by the A and B category districts for industrial use. The subsidy of 100% will be reimbursed in case of ultra mega projects. Subsidy for Power Supply The uninterrupted power supply will be given to the projects belonging to the category C if Government Order or MoU covers them.

Special Package of Incentive

To encourage new investments in the existing or new SIPCOT Industrial Parks in Southern Districts, Government has recently declared a special package of incentives covering allotment of lands in SIPCOT Industrial Parks at a subsidised rate, stamp duty concessions, additional capital subsidy, special fiscal incentives.

Other Incentives

SIPCOT will acquire and allocate lands for starting new industries in Southern Districts when lands in SIPCOT parks are not available. To avail, this incentive the minimum area required by the investing company should be at least 25 acres, and the range of investment should be more than Rs.50 crores.  Note: The land requirement with more than 10% of wetlands will not be allowed.
KARTHIGA A
Updated on: February 4th, 2025

Popular Post

Download ePAN Card – Get ePan from NSDL & UTIITSL
80 Small Business Ideas

Starting a small business can be a transformative venture, offering the exciting opportunity...

Nadakacheri – Income Caste Certificate Download Online in Karnataka
TDS Rate Chart for Financial Year 2025-2026 (Assessment Year 2026-2027)

Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...

Divorce Rules in India: Everything You Need to Know
How To Download GST Registration Certificate Online?

Goods & Services Tax Certificate is issued to people who are registered under GST...

PAN Card Cancellation Online
Find Complete Details of GST Registration Procedure

GST registration applies to all individuals and entities supplying goods or services in India. GST...

Check Your PF Claim Status Online Using PF Tracking ID
Gift Tax in India: Applicability, Exemptions and Rules

Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...

Check Your PF Claim Status Online Using PF Tracking ID
Old Regime vs New Regime 2025: Which Tax Regime is Better for You?

The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...

Check Your PF Claim Status Online Using PF Tracking ID
What is the minimum turnover for GST?

The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...

Check Your PF Claim Status Online Using PF Tracking ID
How can I check if a trademark is registered?

A trademark search is simply checking if another person or organization does not already own the...

Check Your PF Claim Status Online Using PF Tracking ID
Section 194H of the Income Tax Act: TDS on Commission & Brokerage

Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...

Check Your PF Claim Status Online Using PF Tracking ID
Section 80G Deduction - Income Tax Act

Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...

Check Your PF Claim Status Online Using PF Tracking ID
Crypto Tax in India: Taxation On Cryptocurrency

The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...

Check Your PF Claim Status Online Using PF Tracking ID
Internal Audit Applicability Under Companies Act, 2013

Internal audit applicability is a critical concept for companies in India, impacting various...

Check Your PF Claim Status Online Using PF Tracking ID
Difference between Private and Public Company

In the business world, two main types of companies exist: private company and public company...

Check Your PF Claim Status Online Using PF Tracking ID
New GST Rules for Rent

Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...

Check Your PF Claim Status Online Using PF Tracking ID
GSTR-1 and GSTR-3B Due Date Extension - New Due Dates For January 2025

The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...

Check Your PF Claim Status Online Using PF Tracking ID
Different Depreciation Rates under Companies & Income Tax Act

Depreciation is a key concept in finance and accounting. It helps us manage how the value of...

Check Your PF Claim Status Online Using PF Tracking ID
Form 10IA - Section 80DD Deduction

Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...

Check Your PF Claim Status Online Using PF Tracking ID
GST on Used Cars: New 18% Tax Rate Explained

The Goods and Services Tax (GST) system in India has been a significant reform in the country's...

Check Your PF Claim Status Online Using PF Tracking ID
MSME Registration - Udyam Registration

India's Gross Domestic Product (GDP) benefits significantly from the substantial...

Check Your PF Claim Status Online Using PF Tracking ID
Section 43B(h) - New MSME 45 Days Payment Rule

The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...

Check Your PF Claim Status Online Using PF Tracking ID
Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024

The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...