TAMIL NADU. Tamil Nadu Global Investors Meet Thiruvallur District Profile GLOBAL INVESTORS MEET 2015 I N V E S T O R S P A R A D I S E

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1 TAMIL NADU GLOBAL INVESTORS MEET 2015 I N V E S T O R S P A R A D I S E Tamil Nadu Global Investors Meet 2015 Thiruvallur District Profile

2 Table of contents 1. Thiruvallur Overview Economic profile Resource Profile Land Utilisation Education & Skill Development Healthcare Water Resource Power Resource Industrial scenario in the district Major players in Thiruvallur Industrial infrastructure in the district Investment scenario in the district Key enablers Connectivity Tamil Nadu Vision Tamil Nadu industrial policy Capital subsidy and electricity tax exemption Stamp duty concession Environmental protection infrastructure subsidy Structured incentive package for mega projects Investment Opportunity 15 Key connects and links 16

3 List of Figures Figure 1.1 GDDP of Thiruvallur District from Figure 1.2 Land utilisation in the district 4 Figure 1.3 Education and Skill development in the district 5 Figure 1.4 Healthcare centres and hospitals in Thiruvallur district 5 Figure 1.5 Power consumption sector wise 6 Figure1.6 MSME units in the district 7 Figure 1.7 Manufacturing sector in Thiruvallur district 7 Figure1.8 Share of investments by different industries in the district 9 Figure 1.9 Share of investments by different industries in Thiruvallur 10 Figure 1.10 Map showing closest airports and seaports to Thiruvallur district 11 Figure 1.11 Map showing major national highways passing through the district 12 Figure 1.12 Upcoming infrastructure projects in Thiruvallur district 13 List of Tables Table 1 Major players in Thiruvallur 8 Table 2 Land availability in industrial estates in Thiruvallur 9 Table 3 Incentive packages for various categories of investment 14 2

4 Thiruvallur 1.1. Overview Thiruvallur district was formed from the bifurcation of erstwhile Chengalpattu district (on 1st January 1997). It is located in the North East part of Tamil Nadu along the North Latitude between 12 15' and 13 15' and the East Longitude between 79 15' and 80 20'. The district is surrounded by Kancheepuram district in the South, Vellore district in the West, Bay of Bengal in the East and Andhra Pradesh State in the North. The district spreads over an area of about 3422 Sq.kms. Thiruvallur district is populated moderately. The population density was 776 persons per sq.km in 2001 and it increased to 1049 persons per sq.km in 2011 at a CAGR of 3%. The average literacy rate in the district is %. The district has an urbanization rate of 65% Economic profile The total GDDP of the district stood at 4673 Million USD in The GDDP of the district has grown at a CAGR of 9%.The tertiary sector plays a vital role in contributing to the GDDP of the district. It contributes to about 63% of the GDDP of the district. The largest segments in the tertiary sectors that contribute to the GDDP include Trade, Hotels and Restaurants, Real Estate and Business Services and Banking and Insurance. Figure 1.1 GDDP of Thiruvallur District from CAGR-9% Primary Scondary Tertiary Total Source: District Income estimates, to , Dept. of Economics and statistics, GoTN

5 1.3. Resource Profile Land Utilisation Figure 1.2 Land utilisation in the district Permanent Patures and other grazing land Land Under Miscellaneous Tree Crops and Groves not included in Net Area Sown Remaining area Others Forest Total cropped area Net sawn area Source: Ministry of MSME, Tiruvallur District , GoI The total land under forest cover is hectares. The total cropped area in the district is hectares. About 47% of the total work force is engaged in agricultural and allied activities. The major crops grown in the district are rice, cumbu - ragi, green gram, black gram, sugar cane and groundnut. Apart from this, certain horticultural crops like mango, guava and vegetables have also been cultivated. 4

6 Education & Skill Development Figure 1.3 Education and Skill development in the district Education S.No Type of institution Nos. 1. Universities 5 2. Arts and Science colleges Medical colleges 3 4. Engineering and Technology colleges Polytechnic colleges Primary schools Middle schools High schools & Higher secondary schools Source: Ramanathapuram District, Statistical Hand book Teacher s training institute Healthcare Figure 1.4 Healthcare centres and hospitals in Thiruvallur district S.No. Type Nos. 1. Government Hospitals Private Hospitals (Allopathy Homeopathy) Ayurvedic Hospitals 3 4. Primary Health Centres Health Sub-Centres 303 Source: Tiruvallur District, Statistical Hand book Source: Health and Family Welfare department, Government of Tamil Nadu Water Resource The district does not have a perennial river. The district has a number of seasonal rivers like Kesathaliar, Aravar, Nandi, Kallar, Coovam and Buckhingham Canal. To supplement the water supply to the district, irrigation is done through tanks, tube wells and open wells are very common. 5

7 Power Resource Figure 1.5 Power consumption sector wise Public lighting Miscellaneous and public works 6% 5% Industries Commercial 7% 16% Agriculture 33% Domestic 33% Source: Thiruvallur District, Statistical Hand book Transmission in the district is being done by Tamil Nadu Generation and Distribution Corporation Ltd. (TANGEDCO) and Tamil Nadu Transmission Corporation Ltd. (TANTRANSCO) with the supervision of Tamil Nadu Electricity Board Ltd. (TNEB). Apart from this anther major source of power supply is the Ennore Thermal power station which is a coal based power plant in Tamil Nadu. It is one of the four major thermal power plants of Tamil Nadu established by TANGEDCO. Ennore Thermal Power Station (ETPS) has a total installed capacity of 450 M.W Industrial scenario in the district Thiruvallur district is one of the fastest developing districts in Tamil Nadu in terms of Industrial Development. The district has many leading industries like Madras Refineries, Madras Fertilizers, Manali Petro Chemicals, MRF, Ashok Leyland, TI Cycles, Britannia India Ltd, Parry India Ltd and Hindustan Motors. It also boasts of the Ennore Thermal Power Station and the Avadi Tank Factory. The District has 16 Industrial Estates, all in operation : 11 developed by the Government and 5 by Private Organisation. This district also has Small Scale Industries. 6

8 Figure1.6 MSME units in the district Food Processing 140 Textiles & Apparels 152 Leather 16 Chemicals & Petro-chemicals 190 Metallurgy 750 Non metallic mineral products 45 Electrical Machinery 90 Machinery 360 Furniture 120 Transport equipment 70 Computer & relating activities 700 Other manufacturing industries Source: Ministry of MSME, Thiruvallur District , GoI Industrial Industry profile of micro and small enterprises is shown in the figure above. Maximum units have been established in metallurgy followed by computer and computer related activities. Manufacturing of machinery have also taken up a large share of investment in the district. Other than these, industries relevant to construction materials like brick manufacturing, wood and paints are also available in this region. Manufacturing sector in Thiruvallur District Auto & auto ancillaries Gummidipoondi Chemicals & Petro chemicals-plastics Thervoykandigai Thirumullaivoya Vichoor Machinery Metallurgy Kakkalur Ambattur Thirumazhisai Textiles Non-metallic minerals Pharmaceuticals Food Processing Electrical Machinery Electronics 7

9 Major players in Thiruvallur Table 1 Major players in Thiruvallur Industries Major players Automobiles and Auto ancillaries Chemicals and Petro chemicals Madras Petro Chemicals Ltd. Food and Food products Industrial infrastructure in the district Source: Capex database The industrial estates developed by Government are done by the bodies; SIPCOT (State Industries Promotion Corporation of Tamil Nadu Ltd) and SIDCO (Small Industries Development Corporation). SIPCOT had developed in Gummidipoondi and Thervoykandigai in Thiruvallur District and SIDCO developed in Ambattur, Thirumazhisai, Gummipoondi, Kakkalur, R K Pet, Vichoor and Thirumullavoyal. Other than these there is an IE developed by TIIC (Tamil Nadu Industrial Investment Corporation) at Mogappair, Electrical Estate at Kakkalur and TALCO developed in Madhavaram. The Industrial Estates in Porur, Alapakkam, Puzhal, and Velappanchavadi are developed by private players. 8

10 Table 2 Land availability in industrial estates in Thiruvallur Industry Total extent/allotable land, acres Vacant plots. Acres Ownership Mahindra World city Industrial park Phase II, Gummidipoondi 1, TIDCO and Mahindra Gummidipoondi (I& II) 1, SIPCOT Thervoy Kandigai 1, SIPCOT Plastic Park at Vayalur (upcoming) TIDCO Investment scenario in the district Source: PwC Analysis Figure1.8 Share of investments by different industries in the district Industry Outstanding (USD million) Completed (USD million) Total (USD million) Food & agro-based products Textiles Chemicals & chemical products Construction materials Metals & metal products Non-electrical machinery Electrical machinery Electronics Automobile Automobile ancillaries Miscellaneous manufacturing Computer software Source: Capex database Majority of the investments have taken place in automobile ancillaries, followed by non-electrical machinery and textiles. 9

11 Figure 1.9 Share of investments by different industries in Thiruvallur Electrical machinery 1% Metals & metal products 3% Construction materials 1% Nonelectrical machinery 15% Automobile ancillaries 55% Chemicals & chemical products 9% Food & agrobased products 6% Textiles 9% Others 1% Source: Capex database Opportunities for investment in the district lie mainly in automobile ancillaries and in chemical and chemical products. 10

12 1.5. Key enablers Connectivity Airports and Seaports close to Thiruvallur Thervoikandigei From Chpt-59Km From Ch AP-72 Km From Enpt-54 Km Gummidipoondi From Chpt-47.8 Km From Ch AP-60 Km From Enpt-42 Km Voyalur Rameshwaram From Chpt-32 Port to Km Ramanathapuram From Port Ch AP-46 is 90 Km From Enpt- 14 Km Ennore Port Chennai Port Mahindra world city From Chpt-62 Km From Ch AP-35 Km From Enpt-79 Km Chennai Air Port Figure 1.10 Map showing closest airports and seaports to Thiruvallur district 11

13 Road connectivity in Tiruvallur Thiruvallur Ponneri NH-205 Sriperambudur Chennai NH-5 NH-4 Table 5 Important national highways passing through Chennai Highway NH-4 NH-5 NH Railway connectivity Connectivity NH-4 connects Thiruvallur to Sriperambudur NH-5 connects Thiruvallur to Chennai NH-205 connects Thiruvallur to Ponneri Thiruvallur railway station is one of the railway stations of the Chennai central Arakonnam section of the Chennai suburban railway network. It serves the neighbourhood of Thiruvallur, a suburb of Chennai, and is located 41 km west of the Chennai Central railway station. Thiruvallur lies in the Main Broad Gauge line and some of the West North bound trains stop here. There are two Suburban railway line alone Thiruvallur which are West line and WestNorth line. West line is from Chennai Central to Arakkonam and West North line is from Chennai Central to Tiruttani. These two lines have many Suburban trains running from Thiruvallur to Chennai Central, Chennai Beach, Arakkonam and Tiruttani. 12

14 Tamil Nadu Vision 2023 The vision for Tamil Nadu for 2023 is to become India s most prosperous and progressive state with no poverty, and where its people enjoy all the basic services of a modern society and live in harmonious engagement with the environment and with the rest of the world. Vision 2023 Tamil Nadu ( Vision 2023 ) sets the plan for infrastructure development for the state to reach the desired outcomes by The three outcomes of Vision 2023 are: The per capita income of Tamil Nadu s residents will reach USD 10,000 per annum (at 2010 prices) the present median income of Upper Middle Income countries - by 2023 Tamil Nadu will attain a high standard of social development, with the Human Development Index of the state matching those of developed countries by 2023, and Tamil Nadu would provide to its residents, high quality infrastructure all over the state comparable with the best in the world Key facets of Vision 2023 include Tamil Nadu s enhanced economic dynamism, best in class human development indicators, well developed infrastructure that provides universal access to basic services, an investment climate that compares with the best in Asia, and the evolution into India s foremost knowledge and innovation hub Upcoming Infrastructure Projects under Vision 2023 Figure 1.12 Upcoming infrastructure projects in Thiruvallur district Name Capacity Investment in USD Million Ennore Thermal Power Station expansion 660 MW 3135 Ennore Thermal Power station replacement 660 MW 3600 Avadi-Thiruvallur Ennore port link 400 LNG terminal at Ennore port 4320 Container terminal at Ennore port 1428 Ro-Ro cum multi-level car park at Ennore Port 200 Plastic Park 160 Source: Vision Tamil Nadu 2023, Strategic Plan for Infrastructure- Phase II 13

15 1.6. Tamil Nadu industrial policy 2014 Tamil Nadu introduced Industrial Polices in 1992, 2003 and The latest industrial policy, announced in 2014, is aligned to the objectives laid out in Vision Several incentives and subsidies have been announced as a part of this industrial policy, as listed in subsequent sections Capital subsidy and electricity tax exemption Irrespective of the location of the project, new or expansion manufacturing units will be given a back-ended capital subsidy and electricity tax exemption on power purchased from the Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO). Table 3 Incentive packages for various categories of investment Investment in fixed assets/ Direct Employment (No.) Capital Subsidy Electricity tax exemption eligible fixed assets (USD (USD) (no. of years) from CoP Million) Years Years Years Years Years Years 500 and above Years Stamp duty concession Source: Capex database Source: TN Industrial Policy % Exemption from Stamp duty on lease or sale of land meant for industrial use shall be offered for projects located in Industrial parks promoted by SIPCOT. Stamp duty will be calculated based on actual land or building value paid by manufacturing units to industrial parks Environmental protection infrastructure subsidy Dedicated Effluent Treatment Plants (ETP) and / or Hazardous Waste Treatment Storage and Disposal Facility (HWTSDF) set up by individual manufacturing units would be eligible for an Environment Protection Infrastructure subsidy of USD 50,000 or 25% of capital cost of setting up such ETP/ HWTSDF, whichever is less. 14

16 Structured incentive package for mega projects Apart from standard package of incentives, the State Government has also facilitated a structured incentive package for mega projects, as per the following categories: 1. Mega project Investment range between USD 60 million to 170 million 2. Super Mega Investment range between USD 170 million and 800 million 3. Ultra mega Investment above USD 800 million Incentive packages for each category of mega projects are as listed below: Mega project Net output VAT+CST paid to be given as Investment promotion subsidy/soft loan for 10 years from the date of commercial production (ceiling of 80% of investment made in EFA within the investment period) Super Mega: Net output VAT+CST paid to be given as Investment promotion subsidy/soft loan for years from the date of commercial production (ceiling of % of investment made in EFA within the investment period) Ultra mega: Net output VAT+CST paid to be given as Investment promotion subsidy/soft loan for 16 years from the date of commercial production (ceiling of 100% of investment made in EFA within the investment period) An additional 10% output VAT+CST paid will be given as Investment Promotion subsidy/soft loan to the investors if they double the committed employment levels within the investment period, which is capped to the investment made in the EFA during the Investment period Investment Opportunity The Ponneri taluk in Thiruvallur district has been identified as a developmental node under the upcoming Chennai-Bangalore industrial corridor project. The key sectors that have high potential for Ponneri are Electrical Machinery, Pharmaceuticals and Medical Equipment. Heavy electrical equipments Ship building Engineering equipment manufacturing Anchor units Medical equipments 15

17 Key connects and links Key websites of Government of Tamil Nadu Portal to Government of Tamil Nadu Tamil Nadu Industrial Development Corporation (TIDCO) Energy department Tamil Nadu Infrastructure Development Board Tamil Nadu Energy Development Agency Micro, Small and Medium Enterprises Department Agricultural marketing Handloom export promotion in Tamil Nadu Transport Department About industrial parks Madras Export Processing Zone About Software & ITES Guide to investing in Tamil Nadu, policies, Tamil Nadu Vision 2023, step by step approach to establishing a company Tamil Nadu Global Investors Meet Key Websites of Government of India FDI policies Foreign Trade policies Electronics industry & IT opportunities Foreign Investment promotion Board Environmental Laws Renewable energy opportunities Power projects opportunities Food and Agro Processing opportunities Department of Heavy industries Infrastructure 16

18 Additional Chief Secretary to Government of Tamil Nadu Industries Department Phone: Fax: Nodal Agency Tamil Nadu Industrial Guidance and Export Promotion Bureau 19-A, Rukmini Lakshmipathy Road, Egmore, Chennai Phone: Fax : directorguidance@gmail.com Visit us at TAMIL NADU GLOBAL INVESTORS MEET 2015 I N V E S T O R S P A R A D I S E