Ariyalur 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 contentsGlossary

List of Figures 2

List of Tables 2

1. Ariyalur 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 5

1.3.3. Education 5

1.3.4. Healthcare 6

1.3.5. Water Resource 6

1.3.6. Power Resource 6

1.4. Key Enablers 7

1.4.1. Connectivity 7

1.4.2. Tamil Nadu Vision 2023 9

1.4.3. Tamil Nadu industrial policy 2014 9

1.5. Investment Opportunity 11

Key connects and links 12

List of FiguresList of Figures

Table 1 Educational Institutions in Ariyalur District 6

Table 2 Health care centers and Hospitals in Ariyalur District 6

Table 3 Upcoming infrastructure projects in Ariyalur District 8

Table 5 Incentive packages for various categories of investment 9

List of TablesList of Tables

GlossaryGlossary

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Figure 1 Ariyalur GDDP trend (USD million) 4

Figure 2 Ariyalur District Land Utilization in 2010-11 5

Figure 3 Road Connectivity from Ariyalur District 7

Figure 4 Airport and Port Connectivity from Ariyalur District 7

AriyalurAriyalur

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1.1. Overview of the districtAriyalur lies in the central part of Tamil Nadu, and 280 Km from the

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state capital Chennai. The District lies between 78 40' and 79 30' of

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the eastern longitudes and 10 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 Taluks-

Ariyalur, 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.

Ariyalur

41.3. 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 1: Ariyalur GDDP trend (USD million)

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

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Primary Scondary Tertiary Total

2000

1800

1600

1400

1200

1000

800

600

400

200

0

203 197

216222

232215CAG

R-4%

Figure 2: Ariyalur District Land Utilization in 2010-11

Remaining area

Forest Cover

Non Agricultural Land

Cultivable barren land

Net Area Sown

4.4%

0.4%

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

22.9% 77.1%55.6%

16.7%

51.3.2. 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.

1.3.3. Education

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

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

S.No Educational Institution Nos.

1. Arts and Science Colleges 6

2. Engineering Colleges 3

3. Colleges for Special Education(Nursing) 2

4. Primary Schools 475

5. Middle Schools 140

6. Higher Secondary Schools 134

7. Teachers Training Institute 7

8. Catering Colleges 1

9. Polytechnic 3

10. ITI 4

Table 1: Educational Institutions in Ariyalur District

Minerals Production ( Thousand tonnes ) in 2013-14

Limestone 12010

Fireclay 168

Marl 30

1.3.3. Education

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.

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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).

1.3.4. Healthcare

Table 3 Health care centers and Hospitals in Cuddalore District

Source: Health and Family Welfare department, Government of Tamil Nadu

S.No. Type No.

1. Government Hospitals 4

2. Private Hospitals 17

3. Ayurvedic Hospitals 3

4. Primary Health Centres 38

5. Health Sub-Centres 117

71.4. Key Enablers

1.4.1. Connectivity

Figure 3 Road Connectivity from Ariyalur District

Ariyalur

NH-227

SH-139

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.

81.4.3. Airport and Seaport connectivity

Figure 4 Airport and Port Connectivity from Ariyalur District

Ariyalur

Karaikal Port is 115 Km

from Ariyalur

Trichy International Airport

is 76 Km from Ariyalur

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 1

the help of total 9 berths .

1

http://www.karaikalport.com

91.5 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.

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

Name Capacity Investment in USD Million

Strategic Road Expansion Programme-II 137 Km 281

Chennai Tuticorn Freight corridor 500 Km 1667

Dry Port and Logistics Hub at Ariyalur 200 acers 33

Chennai Trichy Industrial Corridor 3333

Development of Heritage location and destination Across Tamil Nadu 17

of tourist Interest

Integrated Post Harvest Supply Chain Establishment Across Tamil Nadu 3333

Table 3: Upcoming infrastructure projects in Ariyalur District

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

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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

Source: TN Industrial Policy 2014

Source: Capex database

Investment in fixed assets/

eligible fixed assets (USD (USD) (no. of years) from CoP

Million)

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

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 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

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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