Tamil Nadu to build financial city to attract investments

Chennai, July 13 : After attracting global automobile manufacturers to the state, Tamil Nadu is now targeting sectors like financial services and aviation with special schemes.

Responding to the discussions for the demands for grants for the industries department, Deputy Chief Minister M.K. Stalin Monday said in the assembly, a financial city will be built near Chennai with private participation to attract insurers, banks, mutual funds and others.

In order to attract investments from aviation sector he said the government will also set up an aero park.

The state government will also be developing country specific industrial parks to attract investments from business units located in those countries.

According to the industries department policy note submitted by Stalin in the state assembly earlier in the day, the government has identified certain countries as having higher potential to make investment in the state.

Orders have been issued for the development of country specific industrial parks for Japan, Korea, Finland, Germany and France.

Each industrial park will be of 100 acre size and will be developed by State Industries Promotion Corporation of Tamil Nadu Limited (Sipcot).

The policy note states the state government is developing industrial parks and special economic zones (SEZ) in different parts of the state to disperse the industries.

Approval and final notification for multi product SEZ at Nanguneri in Tirunelveli district has been obtained while a similar project is being developed in Perambalur district.

With 49 notified SEZs Tamil Nadu is ranked third among the other Indian states in terms of number of approved SEZs.

According to the policy note the 49 SEZs have a total area of 3,972 hectares with the average hectare per SEZ working out to 81.

Claiming that the government is not resorting to compulsory acquisition of and for development of SEZs the policy note states each SEZ allots lands to a number of manufacturers in the related area.

The state government has also issued administrative sanction for development of new industrial parks in Madurai, Perundurai and Cheyyar by Sipcot.

Referring to the global economic slowdown affecting the state's manufacturing sectors like textiles, garments, leather goods, automobiles, auto components, software and business process outsourcing (BPO), the policy note states the Tamil Nadu government plans more investment in infrastructure.

In the last three years the state has signed 23 memoranda of understanding (MOU) in addition to sanctioning structured package of assistance for nine projects separately.

The total investment in the state through these 32 projects would be Rs.39,741 crore.

During the calendar year 2008, the Tamil Nadu government signed 12 MOUs with a total investment of Rs.24,050 crore and issued structured package sanctioning orders for seven other projects for an investment of Rs.5,462 crore.