Tamil Nadu to announce new start-up, aerospace and defence sector policies

The state govt is formulating an exclusive Aerospace and Defence policy with the objective of taking a 30 per cent market share of the sector

Tamil Nadu made a host of announcements on Wednesday, including a major thrust to promote next generation electric vehicles with appropriate incentives, a new start-up and innovation policy, common building rules in the housing sector among others.

Addressing the Assembly, Tamil Nadu Governor Banwarilal Purohit said during the Global Investors meet scheduled for January 23 and 24 at Chennai, the state is planning to release the Aerospace and Defence Industrial Policy. These would help Tamil Nadu become a major investment hub and put Chennai-Vellore-Salem-Hosur-Coimbatore and Tiruchy clusters in India's defence and aerospace map.

The state government is formulating an exclusive Aerospace and Defence policy with the objective of taking a 30 per cent market share of the sector.

The other major thrust would be to start-ups, said the Governor. To boost the eco-system, state government departments and state-run units have been asked to procure minimum 25 per cent products and services from MSMEs.

Tamil Nadu is embarking on a comprehensive restructuring programme for transport corporations with the support of German financial agency KfW. 

BS-VI buses will replace old ones in the state as the government plans to procure environmental friendly electric buses in metro cities like Chennai, Coimbatore and Madurai.

Speaking on infrastructure, the Governor said transmission infrastructure would be strengthened with assistance from JICA, ADB, KfW and National Clean Energy Fund. 

The state has thermal and hydroelectric projects worth Rs 1.27 trillion in the pipeline. From being a power deficit state, Tamil Nadu is now power surplus with a peak power surplus of 2,235 Mw.

Speaking about the progress of the Chennai Metro Rail project, Purohit said Japan International Co-operation Agency has now approved a funding of Rs 20,196 crore for the CMRL stretches from Madhavaram to Sholinganallur and from Madhavaram to CMBT. Loan agreement for the first tranche of approximately Rs 4,770 crore was signed on December 21 and work will commence shortly, he said.

Chennai Metro phase I expected to be fully commissioned by this month and Phase-I extension from Washermenpet to WimcoNagar costing Rs 3,770 crore will be ready by June 2020.

He said the government has formulated a comprehensive housing project called Tamilnadu Housing and Habitat Development Project to transform slums in Chennai, Tiruvallur and Kancheepuram districts with World Bank assistance.

“Similar projects in areas other than Chennai has been proposed to the Asian Development Bank for assistance”.

The Chennai Unified Metropolitan Transport Authority (CUMTA) Act and its relevant rules will be notified on January 16 to make the integrated functioning of Multi Modal Transportation System a reality, he added.