TN govt to focus on aerospace, defence sectors to get Rs 100 bn investment

The Tamil Nadu government will give special emphasis to establish an Aero Space Park and a defence manufacturing corridor in the state, which is expected to attract around Rs 100 billion investment. 

The state government will continue to offer structured package assistance for large investments on a case by case basis depending on the investment level, generation of employment opportunities and other parameters, said State Finance Minister O Panneerselvam.

Presenting the budget proposals for the year 2018-19 in the Tamil Nadu Legislative Assembly on Thursday, he said, "Capitalising on the well developed automobile sector, the Government will give a special emphasis to establish Aero Space Park and defence manufacturing corridor which is expected to attract Rs 100 billion investment".

It may be noted that the central government has recently conducted a first-of-its-kind industry meet related to defence supply opportunities in Chennai and has announced plans to conduct the Defence Expo 2018 near Chennai, to attract more industrial players from the region to the sector. 

The proposed Aero Space Park has been under development for a few years already, though some of the industry sources alleged that it has been delayed already. Several initiatives has been taken to promote the investment in the Park at Vallam Vadagal, Kancheepuram district, along with other parks across the state, said the government. The State government is also expected to come out with policies related to Aero Space and defence manufacturing in the near future.

Commenting on the industrial promotion activities in the state, Panneerselvam added that the government has a special focus for the development of industries in the southern part of Tamil Nadu, especially along the Chennai-Kanyakumari Industrial Corridor. 

The facilitator SIPCOT has already created a land-bank of 5,023 acres to promote new industrial units and it will develop additional land-bank of 9,030 acres to allot sufficient land to new investors, added the minister.

He assured that the government will continue to extend structured package assistance for large investments and the package of assistance will be decided on a case by case ;basis depending upon the investment level, generation of employment opportunities and the potential to create ancilliary and down-stream industries. 

The state government has proposed to conduct the second Global Investors Meet (GIM) on January 23 and 24, 2019. As against the total investment of Rs 2420 billion, for which 98 MoUs were signed during the first GIM, 62 projects are under implementation with a total investment of Rs 627.38 billion generating 96,341 jobs.

The government has disbursed Rs 16 billion investment subsidy during 2017-18, and this has been enhanced to Rs 20 billion for the year 2018-19, said the minister.