Perambalur District Profile

Tamil Nadu Global Investors Meet 2015

TAMIL NADUGLOBAL INVESTORS MEET 2015

I N V E S T O R S’ P A R A D I S E

Table of contentsTable of contentsList of Figures 2

List of Tables 2

1. Perambalur 3

1.1. Overview 3

1.2. Economic profile 3

1.3. Resource Profile 4

1.3.1. Land and Agriculture 4

1.3.2. Minerals 4

1.3.3. Education 5

1.3.4. Healthcare 5

1.3.5. Water Resource 5

1.3.6. Power Resource 6

1.4. Industrial scenario in Perambalur District 6

1.4.1. MSME in Perambalur District 6

1.4.2. Dairy Development 8

1.5. Key Enablers 8

1.5.1. Connectivity 8

1.5.2. Tamil Nadu Vision 2023 9

1.5.3. Tamil Nadu industrial policy 2014 10

1.6. Investment Opportunity 11

Key connects and links 12

List of FiguresList of Figures

List of TablesList of Tables

GlossaryGlossary

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Table 1 Educational Institutions in Perambalur District 5

Table 2 Health care centers and Hospitals in Perambalur District 5

Table 3 Upcoming infrastructure projects in Perambalur District 10

Table 4 Incentive packages for various categories of investment 10

Figure 1 Perambalur GDDP trend (USD million) 3

Figure 2 Perambalur District Land Utilization in 2010-11 4

Figure 3 No of units-Micro & Small Enterprises in Perambalur District 6

Figure 4 Road Connectivity from Perambalur District 8

Figure 5 Airport and Port Connectivity from Perambalur District 9

PerambalurPerambalur

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1.1. Overview of the districtPerambalur lies in the central part of Tamil Nadu, and 267 Km from

Othe state capital Chennai. The district lies between 78 40' and 79 30'

of the eastern longitudes and 10 54' and 11 30' of the northern

Latitudes. The district is bounded by Cuddalore & Salem district in

the north, Tiruchirappalli district in the south, Ariyalur district in the

east, Tiruchirappalli and Salem districts in the west.

The area of the district is 1757 sq.km. It consists of three Taluks -

Perambalur, Veppanthattai, Kunnam and Alathur. Perambalur was

bifurcated from the erstwhile composite Tiruchirappalli district and

was formed on 1st November 1995.

Population of the district is 5,65,223 as per Census 2011. The district

constitutes literacy rate of 74.32%.

O

O O

Perambalur

1.2. Economic Profile

Figure 1 Perambalur GDDP trend (USD million)

Source: District Income estimates, 2004-2005 to 2010-2011, Dept. of Economics and statistics, GoTN

147 148 153 157166

203

2003-07 2007-08 2008-09 2009-10 2010-11 2011-12

73 79 88 90 96

100

21 22 2318 19

31

53 47 4149 51

72

TotalTertiarySecondaryPrimary

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1.3. Resource Profile

1.3.1. Land and Agriculture

Figure 2 Perambalur District Land Utilization in 2010-11

Figure 2: Ariyalur District Land Utilization in 2010-11

Perambalur contributes USD 0.2 billion in GDP of Tamil Nadu. Service industry has been playing a vital role in the

economy of this district. It has contributed 58% to the district’s GDP in 2010-11. The investments have been observed to

be happening in Transport by other means, Trade, Hotels & Restaurants, Real estate, ownership of dwelling & Business

Services.

61.3% of land in Perambalur is used for agricultural activities to produce Maize, Onion, Groundnut, Sugarcane, Cashew

nut, Paddy and Cotton. Currently Perambalur district is the top maize and Onion producer in Tamil Nadu, with 27% and

50% of the state's share respectively. Public sector Unit of Perambalur Sugar Mills is located at Eraiyur with a crushing

capacity of 3000 tonnes per day.

1.3.2. Minerals

The district has fairly rich deposits of Celeste, Lime Stone, Shale, Sand Stone, Canker and Phosphate nodules. A good

deal of building stone is quarried in Peramblur, Kunnam, Alathur and Veppanthattai Taluks.

Source: Ministry of MSME, Perambalur District, GoI

Forest

Barren and Uncultivable uses

Land put to Non-Agricultural uses

Cultivable waste

Permanent pastures and other Grazing land

Land under Miscellaneous Tree crops and Groves

Current Fallow

Other Fallow Lands

61%

5%

2%

17%

3%0%

1%

4%

7%

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1.3.3. Education

Table 1 Educational Institutions in Perambalur District

1.3.3. Education

Source: http://www.perambalur.tn.nic.in/District_at_Glance.html

S.No. Type No.

1. Government Hospitals 3

2. Primary Health Centres 28

3. Health Sub Centers 90

4. Veterinary Dispensaries 35

5. Rural Veterinary Dispensaries 10

1.3.4. Healthcare

Table 2 Health care centers and Hospitals in Perambalur District

S.No. Educational Institution No.

1. Primary Schools 202

2. Middle Schools 61

3. Pre Primary Schools 59

4. High Schools 38

5. Higher Secondary Schools 35

6. Government I.T.I 1

7. Private Teacher Training Institute 2

8. Self-Financing College Of Engineering 7

9. Govt College Of Arts & Science 2

10. Self-Financing College of Arts & Science 4

11. Govt College Of Arts & Science (Women) 1

12. Govt Music School 1

13. Private Polytechnic 2

14. Govt Polytechnic 1

Source: http://www.perambalur.tn.nic.in/District_at_Glance.html

1.3.5. Water Resource

Canals, wells, tanks and reservoirs are the sources of irrigation in the district. Several plans and schemes have been introduced

for uninterrupted water supply for domestic and economic activities.

Few Schemes to enhance the water supply in the district are as follows:

• Combined Water Supply Scheme (CWSS): More than one local body are involved which consists of assistance from

Minimum Needs Program, National Rural Drinking Water program and financial assistance from institutions like

TUFIDCO, TNUIFSL, NABARD and ADB.

• Viswakudi Lake Project in Kallaru: with 2 Fillings and the Annual storage of 423.16 M.Cft. Is completed almost 95% with

the estimated budget of INR 33.07 Crores which will facilitate the irrigation of 1449.41 Acres in the Veppanthattai Taluk.

Water Spread Area at FRL is 815 Acres

• Kottarai Lake Project in Marudhaiyaru with 2 Fillings and the Annual storage of 211.58 M.Cft. is to be implemented with

the estimated budget of INR 108 Crores which will facilitate the irrigation of 4194 Acres Cultivable Land in the Alathur

Taluk. Water spread area at FRL is 856.35 Acres

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1.3.6. Power Resource

Power 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).

1.4. Industrial scenario in Perambalur District

1.4.1. MSME in Perambalur District

Figure 3 No of units-Micro & Small Enterprises in Perambalur District

Mfg. of Wearing Apparel Dressing and Dyeing of Fur 246

Land Transport via Pipelines 150

Repair & Maintenance of Personal and Household Goods Retail Trade 143

Undifferentiated Service producing activities of Private Households for own use 101

Mfg. of Food Products and Beverages 87

Mfg. of other Non-Metallic Mineral Products 65

Mfg. of Fabricated Metal Products 65

Repair & Maintenance of Motor Vehicles, Retail sale of Automotive fuel 64

Other Business activities 41

Mfg. of Textiles 29

Mfg. of Furniture Manufacturing NEC 22

CATEGORY NOS

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CATEGORY NOS

Mfg. of Paper and Paper Products 20

Computer and Related Activities 20

Mfg. of Wood and Wood Products 19

Mfg. of electrical Machinery and apparatus NEC 16

Mfg. of rubber and Plastic Products 15

Mfg. of Machinery and Equipment 14

Hotel and Restaurants 14

Recreational, Cultural and sport Activities 14

Undifferentiated Goods producing activities of Private Households for own use 14

Activities of Private Households as Employers of domestic staffs 13

Renting of Machinery and equipment without Operator and of personal and household Goods 11

Wholesale of Trade and Commission Trade 5

Electricity, Gas, Steam and water 4

Supporting and auxillary Transport and Travel Agent Activities 4

Mfg. of Chemical and Chemical Products 3

Mfg of Basic Metals 3

Mfg of Motor Vehicles,Trailers and Semi - Trailers 3

Collection ,Purification and Distribution of water 3

Post and Telecommunication 3

Real Estate Activities 3

Health and Social Work 3

Publishing, Printing & Reproduction of Recorded Media 2

Education 2

Source: Ministry of MSME, Perambalur District, GoI

Maximum units have been established in Manufacturing of wearing Apparel dressing and dyeing of Fur followed by land

transport via pipelines. Food processing and Textile sectors are turning out to be major growing sectors for the district. Some

key established players in the district are MRF Tyres, Perambalur Sugars, Dhanalakshmi Sugar, etc.

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1.4.2. Dairy Development

• Total Milk Co-Op. Society available - 163

• Average Milk Production (per Day) – 1.25 Lakhs

• Bulk Milk Godown – 11

• Chilling Plant - 1

• One more Chilling & Dairy Products Plant is under construction with the land estimate of

26 Acres and the total value of 42 Crores in Alathur Taluk.

Figure 4 Road Connectivity from Perambalur District

1.5. Key Enablers

1.5.1. Connectivity

PerambalurNH-45

NH-226

The road network in Perambalur district consists of

National highways, State highways, District roads

and rural roads. The District has two National

Highways which are - NH-45 (Chennai – Theni),

NH-226 (Perambalur-Manamadurai). The length of

Major District roads is 145.6 km, Other District

roads is 411.120 km, Sugarcane Mill roads is

32.585 km, State highways is 90.075 km, District

and Rural roads is about a length of 1323 Km.

The Nearest Railway Station to Perambalur is

Ariyalur. The rail network of Ariyalur district falls

under Trichy division of Southern Railway. The total

track length is of 42 Km (Broad gauge). The

Ariyalur railway station is located on the line

between the state capital Chennai and Trichy and is

therefore well connected by rail to major towns

like Madurai and Thoothukudi.

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Figure 5 Airport and Port Connectivity from Perambalur District

Perambalur

Cuddalore port to perambalur is 130 km

Karikal port to perambalur is 135 km

Trichy International Ariport to perambalur is 65 km

The nearest International Airport is located at Trichy at a distance of 65 Km from District headquarters. Cuddalore and

Karikal port are the nearest major port located to the district. They are at a distance of 130 Km and 135 Km respectively

from District headquarters of Perambalur. At Cuddalore port ships anchor at the open sea at the available depth, loading

and unloading of cargo takes place by means of Lighters/Steel Barges. The anchorage has 8-10m depth available at the

distance of 0.5 Nautical Mile . Tamil Nadu Maritime Board is in the process of developing the port further. Karikal port’s

phase 1 comprises of 2 Panamax size berths capable of handling 5.2 million MT of cargo per annum. The upcoming

phases will enable the port to handle 46.9 Million MT of cargo per annum with the help of total 9 berths .

1.5.2. 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 2023. The three outcomes of Vision 2023 are:

1. 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

2. 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

3. 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.

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Table 3 Upcoming infrastructure projects in Perambalur District

Source: Vision Tamil Nadu 2023, Strategic Plan for Infrastructure- Phase II

Name Capacity Investment in USD Million

Strategic Roads Expansion Programme-II (Central Tamil Nadu) 30 Km 62

Chennai-Tuticorin freight corridor 500 Km 1667

Development of Port in Cuddalore region 800 acers 333

Development of Port in Nagapattinam region 1000 acers 333

Dry Port and Logistics Hub at Perambalur 200 acers 33

Chennai-Trichy Industrial Corridor 3333

Integrated Post Harvest Supply Chain Establishment Across Tamil Nadu 3333

Infrastructure support for Agro Food Processing Industry Across Tamil Nadu 833

1.5.3. Tamil Nadu industrial policy 2014

Tamil Nadu introduced Industrial Polices in 1992, 2003 and 2007. The latest industrial policy, announced in 2014, is

aligned to the objectives laid out in Vision 2023. Several incentives and subsidies have been announced as a part of this

industrial policy, as listed in subsequent sections.

1.5.3.1. 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 4 Incentive packages for various categories of investment

Source: TN Industrial Policy 2014

Source: Capex database

Investment in fixed assets/eligible fixed assets (USD (USD) (no. of years) from CoPMillion)

Direct Employment (No.) Capital Subsidy Electricity tax exemption

0.8 - 8 100 50000 2 Years

8 -17 200 100000 3 Years

17 - 33 300 170000 4 Years

33 - 83 400 250000 5 Years

83 - 250 600 292000 5 Years

250 - 500 800 330000 5 Years

500 and above 1000 375000 5 Years

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1.5.3.2. Stamp duty concession

50% 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.

1.5.3.3. 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.

1.5.3.4. 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 12-14 years from the date of commercial production (ceiling of 90 - 100% 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.

1.6. Investment Opportunity

• Production of the Dairy products.

• Textile Park in Alathur Taluk.

• Fisheries in the newly implementing Viswakudi and Kottarai Lake projects.

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Key websites of Government of Tamil Nadu

www.tn.gov.in Portal to Government of Tamil Nadu

www.tidco.com Tamil Nadu Industrial Development Corporation (TIDCO)

www.tneb.in Energy department

www.tnidb.tn.gov.in Tamil Nadu Infrastructure Development Board

www.teda.in Tamil Nadu Energy Development Agency

www.indcom.tn.gov.in Micro, Small and Medium Enterprises Department

www.tnsamb.gov.in Agricultural marketing

www.hepcindia.com/tamilnadu.php Handloom export promotion in Tamil Nadu

www.tn.gov.in/transport Transport Department

www.sipcot.com About industrial parks

www.mepz.gov.in Madras Export Processing Zone

www.elcot.com About Software & ITES

www.investingintamilnadu.com Guide to investing in Tamil Nadu, policies, Tamil Nadu Vision 2023, step by step approach to establishing a company

www.tamilnadugim.com Tamil Nadu Global Investors Meet- 2015

Key Websites of Government of India

www.dipp.nic.in FDI policies

www.commerce.nic.in Foreign Trade policies

www.mit.gov.in Electronics industry & IT opportunities

www.fipbindia.com Foreign Investment promotion Board

www.moef.nic.in Environmental Laws

www.mnre.gov.in Renewable energy opportunities

www.powermin.nic.in Power projects opportunities

www.mofpi.nic.in Food and Agro Processing opportunities

www.dhi.nic.in Department of Heavy industries

www.india.gov.in/topics/infrastructure Infrastructure

Key connects and linksKey connects and links

www.tamilnadugim.com

TAMIL NADUGLOBAL INVESTORS MEET 2015

I N V E S T O R S’ P A R A D I S E

Additional Chief Secretary to Government of Tamil Nadu

Industries Department

Phone: 91-44-25671383 Fax: 91-44-25670822

Email: indsec@tn.gov.in, indjsgim@tn.gov.in

Nodal Agency

Tamil Nadu Industrial Guidance and Export Promotion Bureau

19-A, Rukmini Lakshmipathy Road, Egmore, Chennai-600 008

Phone: 91-44-2855 3118 Fax : 91-44-2858 8364

Email: directorguidance@gmail.com

Visit us at www.tamilnadugim.com