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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
Dharmapuri District Profile

Table of contents
Glossary
List of Figures

List of Tables

1. Dharmapuri

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. Industrial scenario in Dharmapuri District

1.4.1. MSME in Dharmapuri District

1.4.2. Investments in Dharmapuri District

1.5. Key Enablers


1.5.1. Connectivity

8
8

1.5.2. Tamil Nadu Vision 2023

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1.5.3. Tamil Nadu industrial policy 2014

11

1.6. Investment Opportunity

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Key connects and links

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

Figure 2 Dharmapuri District Land Utilization in 2011-12

Figure 3 Power Consumption Sector Wise during 2011-2012 in Dharmapuri district

Figure 4 No of units-Micro & Small Enterprises in Dharmapuri District

Figure 5 Share of investments across industries in Dharmapuri District

Figure 6 Road Connectivity from Dharmapuri District

Figure 7 Airport & Port Connectivity from Dharmapuri district

List of Tables
Table 1 Production of Minerals for the year 2010-2011 in Dharmapuri District

Table 2 Educational Institutions in Dharmapuri District

Table 3 Health care centers and Hospitals in Dharmapuri District

Table 4 Investment scenario in Dharmapuri District in USD million

Table 5 Upcoming infrastructure projects in Dharmapuri District

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Table 6 Incentive packages for various categories of investment

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Dharmapuri
1.1. Overview of the District

Dharmapuri lies in the western of Tamil Nadu, and 300 Km from the
O
O
state capital Chennai. The district lies between 77 02' and 78 40' of
O
O
the eastern longitudes and 11 47' and 12 33' of the northern
Latitudes. It is bounded by Tiruvannamalai and Villupuram Districts on
the east, Salem District on the South, Krishnagiri District on the north
and Kaveri River & Karnataka's Chamarajanagar District on the west.
The area of the district is 4498 sq.km. It consists of five TaluksDharmapuri, Harur, Palakcode, Pappireddipatti and Pennagaram.
Population of the district is 1506 thousand numbers as per Census
2011. The district is 17% urbanized and constitutes urban literacy rate
of 81%.

Dharmapuri

1.2. Economic Profile

Dharmapuri contributes USD 1.3 billion in GDP of Tamil Nadu. Tertiary


sector has been playing a vital role in the economy of this district. It has
contributed 65% to the districts GDP in 2011-12and has grown at the
rate of 11%. The investments have been observed to be happening in
Construction, Trade, Hotel & Restaurants, Banking & Insurance and Real estate, Ownership of Dwelling & Business Services.
Figure 1: Dharmapuri GDDP trend (USD million)

1390

CAGR-10%
2000
1800
1600

1259
1074

847

987

936

1400
1200
1000
800
600
400
200
0

2006-07

2007-08

2008-09

Primary

Scondary

2009-10
Tertiary

2010-11

2011-12

Total

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

1.3. Resource Profile


1.3.1. Land and Agriculture
44% of land in Dharmapuri is used for agricultural activities to produce Mango, Tomato, Tapioca, Turmeric, Ragi, Paddy,
Cholam, Samai, Pulses, Groundnut, Coconut, Sugarcane and Cotton. Sericulture is another important activity in Dharmapuri
District, it produced 304870 Kgs of Cocoons worth USD 2.5 million1 .
Figure 2: Dharmapuri District Land Utilization in 2011-12
3%

11%
29%

71%
77.8%

13%

44%
59.8%

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

Source: Dharmapuri District, Statistical Hand book 2011-12

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. Dharmapuri district is gifted with minerals like Rough Stone, Black Granite and Quartz. The
following table shows production of minerals during 2010-11 in the district:
Table 1: Production of Minerals for the year 2010-2011 in Dharmapuri District
Sl. No. Mineral
1.

Quartz

2.

Black Granite

Quantity(in 000 tonnes) 2013-14


1
15.3
Source: Dharmapuri District, Statistical Hand book 2011-12

Dharmapuri District, Statistical Hand book 2011-12

1.3.3. Education
Table 2: Educational Institutions in Dharmapuri District
S.No

Educational Institution

Nos.

Primary Schools

937

Middle Schools

351

Secondary & Senior Secondary Schools

135

Colleges (including Govt., Private, Art & Science,


Engg, Medical and Polytechnic Colleges)

19

Source: Dharmapuri District, Statistical Hand book 2011-12 2011-12

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

Type

1.

Government Hospitals

No.
5

2.

Private Hospitals

26

3.

Ayurvedic Hospitals

33

4.

Primary Health Centres

57

5.

Health Sub-Centres

218
Source: Health and Family Welfare department, Government of Tamil Nadu

1.3.5. Water Resource


The river flowing in the District is Kaveri River. Vaiyar Dam, 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:
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).

Figure 3: Power Consumption Sector Wise during 2011-2012 in Dharmapuri district


Miscellaneous
3%
Public Lighting
9%
Industries
18%

Commercial
12%

Domestic
58%

Source: Dharmapuri District, Statistical Hand book 2011-12

1.3.7. MSME in Cuddalore District


Industry profile of micro and small enterprises is shown in the figure above. Maximum units have been established in Mineral
Based Ceramic category followed by Ready-Made garments & Embroidery units. Mineral based units have also taken the
maximum share of investment. Ready-Made Garments and Mineral based sectors are turning out to be major growing
sectors for the district. Some key established players are Neyveli Lignite Corporation Limited, E.I.D Parry Sugar Mills, etc.

1.4. Industrial scenario in Dharmapuri District


1.4.1. MSME in Dharmapuri District
Industry profile of micro and small enterprises is shown in the figure above. Maximum units have been established in Cotton
Textiles category followed by Agro & Food Processing units. Cotton Textile units have also taken the maximum share of
investment. Agro based units are turning out to be major growing units for the district being an agrarian District.
Figure 4: No of units-Micro & Small Enterprises in Dharmapuri District
Others
Repairing & Servicing
Engineering Units
Metal based (Steel Fab.)
Mineral based
Chemical and Chemical Products
Rubber, Plastic & petro based
Paper & Paper products
Wood and wooden based furniture
Ready-made Garments & Embroidery & Tailoring
Woolen, Silk & Artificial Thread based clothes
Cotton Textile
Soda Water
Agro & Food Processing

163
60
124
25
298
15
85
10
60
89
152
1573
5
877
Source: Ministry of MSME, Dharmapuri District, GoI

1.4.2. Investments in Dharmapuri District


Figure 5: Share of investments across industries in Dharmapuri District
Miscellaneous
manufacturing
7.1%

Food & agro-based


products
5.7%

Chemicals &
chemical products
1.5%
Textiles
10.5%

Automobiles &
ancillaries
51.9%

Consumer goods
0.2 %
Construction
Material
2.9%

Non-electrical
machinery
17.9%

Electrical machinery
2.6%
Electronics
0.1%

Source: CAPEX

Table 4 Investment scenario in Dharmapuri District in USD million


Industry

Outstanding

Completed

Status Total

51

51

72

90

Chemicals & chemical products

13

13

Consumer goods

Food & agro-based products


Textiles 17

0.2

25

26

Non-electrical machinery

Construction materials

159

159

Electrical machinery

23

23

Electronics

Automobiles & ancillaries

462

462

Miscellaneous manufacturing

63

63

17.2

872

889

Total

1.5. Key Enablers


1.5.1. Connectivity

Dharmapuri

NH-7

SH-60

Figure 6 Road Connectivity from Dharmapuri District

Name of the National Highway(NH)

Connectivity

NH-7

Passes through the district connecting Varanasi to


Kanyakumari

1.5.2. Railway connectivity


The rail network of Dharmapuri District falls under Bengaluru division of South Western Railway. The total track length is of
27 Km (Broad gauge). The rail network of Dharmapuri connects it to important places in India like Bengaluru, Mumbai, Delhi,
Coimbatore, etc.

1.4.3. Airport and Seaport connectivity


Kempegowda International Airport,
Bengaluru to Dharmapuri is180 Km

Chennai port to Dharmapuri


is 315 Km

Dharmapuri
Salem Domestic Airport to
Dharmapuri is 50 Km

Figure 7 Airport & Port Connectivity from Dharmapuri district

Airport/Seaport

Distance Dharmapuri

Bengaluru International Airport

180 Km

Salem Airport

50 Km

Chennai Port

315 Km

Chennai port is the nearest major port located to the district at a distance of 315 Km from Dharmapuri
District. Chennai port is second largest port in the country with cargo handling capacity of 64.7 million MT
per annum2.
2

http://www.chennaiport.gov.in

1.5.4. 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 5: Upcoming infrastructure projects in Dharmapuri District


Name

Capacity

Investment in USD Million

Coimbatore-Chengalpet Alignment

462 Km

1500

Strategic Roads Expansion Programme-IV


(Western Tamil Nadu)

174 Km

352

Integrated Post Harvest Supply Chail Establishment

Across Tamil Nadu

3333

Project for Promotion of Agro Food Processing Industry

Across Tamil Nadu

833

Infrastructure for Poultry Processing

Across Tamil Nadu

333

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

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1.5.5. 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

1.5.5.1. Capital subsidy and electricity tax exemption


IIrrespective 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 6: Incentive packages for various categories of investment


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

Investment in fixed assets/


eligible fixed assets (USD
Million)

83 - 250

600

292000

5 Years

250 - 500

800

330000

5 Years

500 and above

1000

375000

5 Years
Source: TN Industrial Policy 2014

1.5.5.2. 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.

1.5.5.3. 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.

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1.5.5.4. 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


The availability of Granite is opportunity to invest in mineral based sector of the district. Also presence of mango, Tomato,
Tapioca, Turmeric, Ragi, Paddy, Cholam, Samai, Pulses, Groundnut, Coconut and Sugarcane in the district is the opportunity
to invest in Agro & Food Processing units.

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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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