TAMIL NADU

GLOBAL INVESTORS MEET 2015

I N V E S T O R S

PA R A D I S E

Tamil Nadu
Global Investors Meet 2015
Ariyalur District Profile

Table of contents
Glossary
List of Figures

List of Tables

1. Ariyalur

1.1. Overview

1.2. Economic profile

1.3. Resource Profile

1.3.1. Land and Agriculture

1.3.2. Minerals

1.3.3. Education

1.3.4. Healthcare

1.3.5. Water Resource

1.3.6. Power Resource

1.4. Key Enablers

1.4.1. Connectivity

1.4.2. Tamil Nadu Vision 2023

1.4.3. Tamil Nadu industrial policy 2014

1.5. Investment Opportunity

Key connects and links

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12

Glossary
List of Figures
Figure 1 Ariyalur GDDP trend (USD million)

Figure 2 Ariyalur District Land Utilization in 2010-11

Figure 3 Road Connectivity from Ariyalur District

Figure 4 Airport and Port Connectivity from Ariyalur District

List of Tables
Table 1 Educational Institutions in Ariyalur District

Table 2 Health care centers and Hospitals in Ariyalur District

Table 3 Upcoming infrastructure projects in Ariyalur District

Table 5 Incentive packages for various categories of investment

Ariyalur
1.1. Overview of the district

Ariyalur

Ariyalur lies in the central part of Tamil Nadu, and 280 Km from the
state capital Chennai. The District lies between 78o 40' and 79o 30' of
the eastern longitudes and 10o 54' and 11o 30' of the northern
Latitudes. The District is bound by the Districts of Cuddalore to the
north and north-east, Nagapattinam to the east, Thanjavur to the
south and south-east, Tiruchirapalli to the south-west and
Perambalur to the west. The District was formed in 01.01.2001 to
19.04.2002 in the GO No: 656 revenue department dated
29.12.2000 and reformed in Nov 2007 from Perambalur District as
per the GO No : 683 revenue department dated 19.11.2007.
The area of the District is 1949 sq.km. It consists of three TaluksAriyalur, Udayarpalayam and Sendurai. Population of the District is
7525 thousand numbers as per Census 2011. The District is 12%
urbanized and constitutes literacy rate of 72%.

1.2. Economic Profile

Ariyalur 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 53% to the Districts GDP in 2011-12. The investments have been observed to be happening in Trade, Hotel &
Restaurants, Banking & Insurance and Construction and Real estate.

Figure 1: Ariyalur GDDP trend (USD million)

CAGR-4%

2000
1800

203

1600

216

222

2008-09

2009-10

232

215

197

1400
1200
1000
800
600
400
200
0

2006-07

2007-08
Primary

Scondary

2010-11

Tertiary

2011-12

Total

Source: District Income estimates, 2004-2005 to 2011-12, Dept. of Economics and statistics, GoTN

1.3. Resource Profile

1.3.1. Land and Agriculture
56% of land in Ariyalur is used for agricultural activities to produce Paddy, Coriander, Maize, Jowar, Varagu, Cumbu,
Sugarcane, Mango, Pulses, Chilies, Onion, Lime, Tapioca, Gingelly, Banana, Cashew nut, Groundnut and Cotton.

Figure 2: Ariyalur District Land Utilization in 2010-11

4.4%

22.9%

77.1%

16.7%

55.6%

0.4%

Source: http://ariyalur.nic.in/Distt/Profile/DisttProfileAgri.html

Remaining area
Forest Cover
Non Agricultural Land
Cultivable barren land
Net Area Sown

1.3.2. Minerals
The mineral base is found to be spread across for the district. It is one of the most important factors for the industrial
development of the area. Ariyalur district is gifted with minerals like Limestone, Fire Clay, Lignite and Sand Quarries. Some key
industrial players in Ariyalur district are Tamil Nadu Cement Ltd, Tamil Nadu Minerals, Madras Cements ltd, India Cements ltd,
Grasim Cements, Dalmia Cements (Bharat) Ltd and Chettinad Cements ltd.
Minerals

Production ( Thousand tonnes ) in 2013-14

Limestone

12010

Fireclay

168

Marl

30
Source: Department of Geology and Mining, Govt of Tamil Nadu

1.3.3. Education
Table 1: Educational Institutions in Ariyalur District
S.No Education
Educational Institution
1.3.3.

Nos.

1.

Arts and Science Colleges

2.

Engineering Colleges

3.

Colleges for Special Education(Nursing)

4.

Primary Schools

475

5.

Middle Schools

140

6.

Higher Secondary Schools

134

7.

Teachers Training Institute

8.

Catering Colleges

9.

Polytechnic

10.

ITI

4
Source: Ariyalur District, Statistical Hand book 2011-12, School and Education department, Govt. of Tamil Nadu

1.3.4. Healthcare
Table 3 Health care centers and Hospitals in Cuddalore District
S.No.

Type

1.

Government Hospitals

2.

Private Hospitals

3.

Ayurvedic Hospitals

4.

Primary Health Centres

5.

Health Sub-Centres

No.
4
17
3
38
117
Source: Health and Family Welfare department, Government of Tamil Nadu

1.3.5. Water Resource

The rivers flowing in the district are Vellar and Kollidam River. 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.

HDPE linings of major canals: High Density Polyethylene (HDPE) linings are being implemented by the state
government to limit the transmission loss.

1.3.6. Power Resource

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. Key Enablers

1.4.1. Connectivity

Ariyalur

SH-139
NH-227

Figure 3 Road Connectivity from Ariyalur District

Name of the National Highway(NH)

Connectivity

NH-227

Connects Trichy to Chidambaram in Cuddalore and passes

through Ariyalur

1.4.2. Railway connectivity

The rail network of Ariyalur district falls under Trichy division of Southern Railway. The total track length is of 40 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.

1.4.3. Airport and Seaport connectivity

Ariyalur

Karaikal Port is 115 Km

from Ariyalur

Trichy International Airport

is 76 Km from Ariyalur

Figure 4 Airport and Port Connectivity from Ariyalur District

Airport/Seaport

Distance

Trichy international airport

76 Km

Karaikal port

115 Km

Phase 1 of the Karikal port 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 berths1.

http://www.karaikalport.com

1.5 Tamil Nadu Vision 2023

The vision for Tamil Nadu for 2023 is to become Indias 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:

The per capita income of Tamil Nadus 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 Nadus 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 Indias foremost knowledge and innovation hub.

Table 3: Upcoming infrastructure projects in Ariyalur District

Name

Capacity

Strategic Road Expansion Programme-II

137 Km

281

Chennai Tuticorn Freight corridor

500 Km

1667

Dry Port and Logistics Hub at Ariyalur

200 acers

Chennai Trichy Industrial Corridor

Investment in USD Million

33
3333

Development of Heritage location and destination

of tourist Interest

Across Tamil Nadu

17

Integrated Post Harvest Supply Chain Establishment

Across Tamil Nadu

3333

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

1.5.1. 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

1.5.1.1. 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 5: Incentive packages for various categories of investment

Investment in fixed assets/
eligible fixed assets (USD
Million)

Direct Employment (No.)

Capital Subsidy
(USD)

Electricity tax exemption

(no. of years) from CoP

0.8 - 8

100

50000

2 Years

8 -17

200

100000

3 Years

17 - 33

300

170000

Source: Capex database

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
Source: TN Industrial Policy 2014

1.5.1.2. 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.

1.5.1.3. 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.

1.5.1.4. 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:

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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

The wide variety of Minerals present here gives an opportunity to invest in Cement. The availability of Agricultural
harvest of Paddy, Coriander, Maize, Jowar, Varagu, Cumbu, Sugarcane, Mango, Pulses, Chilies, Onion, Lime, Tapioca,
Gingelly, Cashew nut, and Groundnut in the region attracts the investments in Food processing.

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Key connects and links

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

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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

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