Other BriefingsTamil Nadu’s Industrial Parks and SEZs under SIPCOT: A Brief for Investors
Tamil Nadu is a prominent location in India for foreign investors due to the state’s advanced infrastructure, mature industrial ecosystem, and logistics capabilities.
The state boasts of the second highest GDP in the country and has the largest number of factory units in India at 37,220.
Tamil Nadu has a highly diversified manufacturing sector, including for automobiles, aerospace, pharmaceuticals, textiles, electronics, leather products, and chemicals, among others. Prominent firms like automakers Hyundai Motor India, BMW, and Renault Nissan have set up in the state and have contributed to the growth of automotive and ancillary industries in the region. Tamil Nadu also accounts for 20 percent of electronics production in India and it is likely why Apple’s major contract manufacturers are set up here.
The ease of doing business in Tamil Nadu is another attractive consideration for foreign investors – supported by ICT-enabled governance. The state is a major foreign direct investment (FDI) destination in India for US businesses. Tamil Nadu hosts more than 300 US companies with 375 projects worth around US$11 billion in investments. Leading US companies in the state include Ford, Dell, and Caterpillar. There are sister cities agreements in place between a) Chennai and Denver and San Antonio, and b) Coimbatore and Toledo.
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).
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.
What is SIPCOT and how does it promote industrial activity in Tamil Nadu?
Established in 1971, SIPCOT is a state entity tasked with the setting up of industrial complexes in Tamil Nadu. It provides basic and comprehensive infrastructure facilities for industrial units in these areas.
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 is now in the process of setting up 11 new industrial parks, as per a Confederation of Indian Industry and KPMG report. Each new industrial park will be spread across 13,500 acres. The Tamil Nadu government hopes to generate 200,000 additional jobs through these new parks.
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. 2021-2025). 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.
Koushan Das of Dezan Shira & Associates’ Business Intelligence division explains why investors are confident of SIPCOT-endorsed projects – from SEZs to industrial parks. Das says, “SIPCOT is at the forefront of transforming the Tamil Nadu’s manufacturing ecosystem because it is well-positioned to leverage Industry 4.0 technologies to improve productivity and move up value chains. In 2022, the state-backed entity launched two innovation centers in its industrial parks, bringing together technology infrastructure, technical expertise, and product innovation resources. Such innovation centers will drive the transformation of the state into an innovation economy.”
Types of industries supported by SIPCOT
|
Type of Industries at SIPCOT Industrial Estates, Tamil Nadu |
||
|
S. No. |
SIPCOT industrial complex/industrial park/growth hub |
Types of industries |
|
1. |
Ranipet Industrial Complex |
Leather, engineering, chemical, pharmaceuticals, other industries |
|
2. |
Hosur Industrial Complex |
Electrical, electronics, automobiles, pharmaceuticals, floriculture industries |
|
3. |
Pudukottai Industrial Complex |
Polysacks, iron and steel foundry with castings, general engineering industries |
|
4. |
Manamadurai Industrial Complex |
Electrical and electronics, general engineering, plastics, textiles, zip fasteners, and graphite |
|
5. |
Gummidipoondi Industrial Complex and EPIP |
Steel, chemicals, engineering auto ancillary, auto components, and plastics industries |
|
6. |
Thoothukudi (formerly Tuticorin) Industrial Complex |
Chemicals, marine products, salt, spices, cold storage, HDPE bags, textile industries |
|
7. |
Cuddalore Industrial Complex |
Chemicals, drug and pharmaceuticals, petrochemical, engineering industries |
|
8(i) |
Irungattukottai Industrial Complex Apparel Park Footwear Component Park |
– Automobile, auto ancillary, engineering, electronics – Readymade garments industries – Footwear and footwear component manufacturing |
|
8(ii) |
||
|
8(iii) |
||
|
9(i) |
Pillaipakkam Industrial Park R&N Supplier’s Park, Pillaipakkam |
– Automobile, auto ancillary, engineering, electronics industries |
|
9(ii) |
||
|
10. |
Sriperumbudur Industrial Park |
Float glass, electronics, automobiles |
|
11. |
Siruseri IT Park |
Computer software, hardware, electronics, IT products, and IT-enabled services |
|
12. |
Nilakottai Industrial Complex |
Agro-based industries, bio-tech medicinal plants, food and fruit processing, and general industries |
|
13. |
Bargur Industrial Complex |
Engineering, chemical, food processing, granite, horticulture industries |
|
14. |
Perundurai Industrial Growth Center |
Textile/hosiery processing units, dyeing units, foundry, leather, engineering, chemical |
|
15. |
Gangaikondan Industrial Growth Center |
Textiles, light engineering, granite polishing, and mineral-based industries |
|
16. |
Oragadam Industrial Growth Center |
Automobile, electronics, and tires |
|
17. |
Cheyyar Industrial Complex |
Light engineering, automotive, footwear, plastics |
|
18. |
Mappadu Industrial Park |
Dry port |
|
19. |
Thervoykandigai Industrial Park |
Tire, automobile, and electronics |
|
20(i) |
Vallam-Vadagal Industrial Park Aerospace Park Vallam-Vadagal |
– Electronics, automobile components – Aerospace component manufacturing |
|
20(ii) |
||
Special economic zones in Tamil Nadu set up by SIPCOT
|
SIPCOT Special Economic Zones |
||
|
S. No. |
Name of the SEZ |
Type of industries |
|
1. |
Hi-Tech SEZ, Sriperumbudur |
Electronics industries |
|
2. |
Hi-Tech SEZ, Oragadam |
Electronic hardware industrial units |
|
3. |
Granite SEZ, Bargur |
Granite industries |
|
4. |
Engineering SEZ, Perundurai |
Engineering industries |
|
5. |
Engineering SEZ, Ranipet |
Engineering industries |
|
6. |
Transport Engineering SEZ, Gangaikondan |
Transport engineering goods, including manufacturing of tire and tubes for all purposes |
Industry categories at SIPCOT industrial parks
|
SIPCOT Industrial Parks: Levels of Environmental Clearance |
|
|
Industrial park |
Industry category |
|
SIPCOT Industrial Park, Thervoy Kandigai |
‘A’ category |
|
SIPCOT Industrial Park, Pillaipakkam |
B1 & B2 category |
|
SIPCOT Industrial Park, Vallam-Vadagal |
B1 & B2 category |
|
Aerospace Park, SIPCOT Industrial Park, Vallam-Vadagal |
B1 & B2 category |
|
Vaipur-Mathur |
B1 & B2 category |
Notes: As per the National Environmental Policy:
- Category A projects require prior environmental clearance from the central government.
- Category B projects require prior environmental clearance from the state/union territory government.
- Category B1 projects require an Environmental Impact Assessment report.
- Category B2 projects will not require an Environmental Impact Assessment report.
Land allotment
According to SIPCOT, the prescribed time limit for land allotment at one of its industrial estates is 60 days; however, the maximum time taken can go up to 244 days and the average time taken is 48 days.
After filling the form on the Tamil Nadu Single Window Portal, a list of supporting documents must be uploaded along with the payment of fees.
|
S. No. |
Supporting documents |
|
1. |
Brief Project Report |
|
2. |
Certificate of Incorporation (in case of a Company) |
|
3. |
Firm Registration Certificate (in case of a Partnership Firm) |
|
4. |
Partnership deed (in case of a Partnership Firm) |
|
5. |
Memorandum of Association (in case of a Company) |
|
6. |
Articles of Association (in case of a Company) |
|
7. |
List of directors (with shareholding Pattern) duly certified by a Chartered Accountant (CA) (in case of a Company)/ partners (with shareholding Pattern) up to individual level duly certified by a Chartered Accountant (CA) (in case of a Partnership Firm) |
|
8. |
Latest audited annual report / balance sheet & profit & loss account (in case of Existing Concerns / Firms / Companies) |
|
9. |
GST Registration Certificate |
|
10. |
Rough Building Layout duly certified by a Civil Engineer |
|
11. |
CTE/ CTO letter from TNPCB (applicable to existing firms involved in manufacturing) |
|
12. |
Proof of term loan sanction / Financial Assistance |
|
13. |
In case of FDI, copy of approval from the Reserve Bank of India (RBI) |
The processing fee is INR 10,000 (US$122.51) plus GST – it is non-refundable. The initial deposit is INR 10,000 per acre and is refundable in case the land is not allotted. (US$1=INR 81.63.)
Incentives attached to land allotment
On March 16, 2021, SIPCOT released a circular stating its concessional / incentives-based land allotment policy mostly aligned with the Tamil Nadu Industrial Policy 2021. SIPCOT grants 10 percent of land cost as incentive for projects located in ‘A’ and ‘B’ districts and 50 percent of land cost as incentive for category ‘C’ districts.
SIPCOT Industrial Parks in Category A districts
|
Name of industrial park/SEZ |
District
|
|
– Irungattukottai Industrial Complex – Apparel Park – Footwear Component Park |
Kancheepuram district |
|
– Sriperumbudur Hi-Tech SEZ – Sriperumbudur Industrial Park |
Kancheepuram district |
|
– Oragadam Phase 1 (including SEZ and R&N Park) |
Kancheepuram district |
|
– Oragadam Phase 2 (Vaipur-Mathur Scheme) |
Kancheepuram district |
|
– Pillaipakkam |
Kancheepuram district |
|
– Siruseri |
Chengalpet district |
|
– Gummidipoondi Phases 1, 2, and EPIP |
Tiruvallur district |
|
– Thervoykandigal |
Tiruvallur district |
|
– Mappedu |
Tiruvallur district |
SIPCOT Industrial Parks in Category B districts
|
Name of park/SEZ/DTA |
District |
|
Ranipet Phases 1,2, and 3 (Domestic Tariff Area and SEZ) |
Ranipet district |
|
Hosur Phases 1 and 2 / Expn. 1 and Expn. 2 |
Krishnagiri district |
|
Perundurai Phases 1, 2, and SEZ |
Erode district |
|
Manaparai |
Tiruchirapalli district |
|
Bargur DTA and SEZ |
Krishnagiri district |
SIPCOT Industrial Parks in Category C districts
|
Name of park/DTA/SEZ |
District |
|
Cheyyar Phase 1 and 2 |
Thiruvannamalai district |
|
Cuddalore Phase 1 and 2 |
Cuddalore district |
|
Thindivanam |
Villupuram district |
|
Thoothukudi Phase 1 |
Thoothukudi district |
|
Pudukottai |
Pudukottai district |
|
Manamadurai |
Sivagangai district |
|
Nilakottai |
Dindigal district |
|
Gangaikondan DTA and SEZ |
Tirunelveli district |
Land cost subsidy under specialized policies
In case the land costs as incentives are disbursed under specialized policies, such as the Tamil Nadu Aerospace and Defence Policy, 2019, the Tamil Nadu E-Vehicle Policy, etc., SIPCOT will approach the government for reimbursing these funds. For example, 20 percent land cost subsidy is extended for allotments made at Aerospace Park, Vallam Vadagal (Kancheepuram district).
Land cost subsidy for standalone R&D projects
Land costs are also incentivized for standalone R&D projects registered with the Department of Scientific and Industrial Research (DSIR) as directed by the Tamil Nadu Industrial Policy 2021.
Classification of districts under the Tamil Nadu Industrial Policy 2021
- Category A: Chengalpattu, Chennai, Kancheepuram, and Tiruvallur.
- Category B: Coimbatore, Erode, Karur, Krishnagiri, Namakkal, The Nilgiris, Ranipet, Salem, Tiruchirapalli, Tirupattur, Tiruppur, and Vellore.
- Category C: Ariyalur, Cuddalore, Dharmapuri, Dindigul, Kallakurichi, Kanniyakumari, Madurai, Mayiladuthurai, Nagapattinam, Perambulur, Pudukottai, Ramanathapuram, Sivagangai, Tenkasi, Thanjavur, Theni, Thiruvarur, Thoothukudi, Tirunelveli, Tiruvannamali, Villupuram, and Virudhunagar.
Timeline for incentives
The maximum time taken as per SIPCOT is 172 days and the average time taken is 99 days.
Also Read
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