The Tamil Nadu government is targeting Rs 2 lakh crore worth investments in
the next four years in the MSME sector as it unveiled a new policy on February
16th to make the state a vibrant eco-system for MSMEs and startups.
The policy which was released by Chief Minister Edappadi K Palaniswami also
plans to create jobs for 20 lakh persons in the sector and increase the share
of exports from MSMEs in the state by 25 per cent.
M-TIPB to provide
escort services to prospective foreign investors in the MSME sector
As per the policy, MSME Trade and Investment Bureau (M-TIPB) will provide
escort services to prospective foreign investors in the MSME sector. M-TIPB
will facilitate the entrepreneurs for availing clearances from the Single
Window Portal and escort them for setting up of industries and availing
incentives to them. The vendor MSMEs for the large enterprises will also be
identified by M-TIPB. This will accomplish the goal of making the state Asia’s
most favoured investment destination for MSMEs as envisaged in the Vision 2023
The M-TIPB will play an active role to support the MSMEs for participation
in national and international trade fairs and exhibitions. The overseas markets
will be explored for MSME products. Similarly, District Industries Centres
(DIC) will play an active role for the promotion of export hubs in the
districts after analysing the export potential in the districts in coordination
with Director General of Foreign Trade (DGFT).
Under the policy, the state will set up a corpus of Rs 500 crore for the
Estate Infrastructure Development and Maintenance Fund for upgradation and
better maintenance of TANSIDCO estates. Initially an amount of Rs 100 crore
(50% by TANSIDCO and 50% by the state government), will be earmarked for this
purpose. Demand-driven additional special infrastructure in existing TANSIDCO
industrial estates will be provided by contributing up to 50% of the cost from
this fund, with the rest to be met by the user industry associations or bank
loans with the condition that the same would be maintained through user
support for privately developed industrial estates enhanced from Rs 10 cr to Rs
It is learnt that infrastructure support for privately developed industrial
estates is being enhanced from Rs 10 crore per estate to Rs 15 crore per
estate. Similarly the infrastructure support for shifting the existing units
will be enhanced from Rs 15 crore per estate to Rs 20 crore per estate.
In a bid to improve competitiveness and productivity in MSMEs, the state
MSME Department will design an MSME Manufacturing Competitiveness and
Sustainability Initiative (MC&SI) to incentivize resource efficiency,
environmental sustainability, and adoption of international product or process
quality standards, as per the newly released policy.
policy would be reviewed by the MSME Investment Promotion and Monitoring Board
as constituted under the Tamil Nadu Business Facilitation Act, 2018.