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GeopoliticalTamilNadu

Courtesy:SreeChidambaram.I

Introduction

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TamilNadu,thesouthernmostStateofIndia,nestlesintheIndianpeninsulabetweentheBay
ofBengalintheeast,theIndianOceaninthesouthandtheWesternGhatsandtheArabianSeaonthe
west.Inthenorthandwest,theStateadjoinsKarnataka,AndhraPradeshandKerala.TamilNadushows
richvarietyanddiversityinitsgeographyandclimatewithcoastalplainscoexistingwithtropicalrain
forests,rivervalleysandhillstations.Themainriveristhe760kmlongCauvery,whichflowsalongthe
entirebreadthofTamilNadu.OthermajorriversarethePalar,Pennar,VaigaiandTamiraparani.

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History

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TamilNaduhasaveryancienthistorywhichgoesbacksome6000years.TheStaterepresents
Dravidian culture in India which preceded Aryan culture in the country by almost a thousand years.
Historians have held that the architects of the Indus Valley Civilization of the fourth century BC were
Dravidiansandthatatatime,anteriortotheAryans,theywerespreadalloverIndia.Withthecomingof
the Aryans into North India, the Dravidians appear to have been pushed into the south, where they
remained confined to Tamil Nadu, with the other southern States such as Andhra Pradesh, Karnataka
and Kerala forming repositories of Dravidian culture. The Tamil country was not subjugated by any
external power over any long period of time or over large areas, and was not subjected to the
hegemony of Hindu or Muslim kingdoms of North India. The rise of Muslim power in India in the
14thcenturyADhaditsimpactontheSouth,however,byandlargetheregionremainedunaffectedby
thepoliticalupheavalsinNorthandCentralIndia.TheTamilarea,forthemostpart,hasmaintaineda
certainpoliticalintegrity,whileatthesametimehasnotinsulateditselffromtherestofSouthIndia.

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Tamil Nadu was subject to the rule of four great kingdoms: Cholas, Cheras, Pandyas and
Pallavas. The Cholas established their supremacy between AD 100 and 200 and continued their
dominanceovertheCherasinthesouthwestandthePandyasinthesoutheasttillthe5thcenturyAD.
KarikalaChola,whoruledduringthisperiod,iscreditedwiththebuildingoflargeirrigationtanks,based
onharnessingtheCauverythroughasystemofbarragesandtanks.ThePallavascametotheforeinthe
6thcenturyADandtheirdomainextendedtoaconsiderablepartofpresentdayTamilNadu.

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The Pandyas, who reemerged during this period, held sway in the southeastern part of the
State.ThePallavaperiodextendedtillthe9thcenturyADandmarkedafusionofAryanelementswith
Dravidian culture. This period is known for the establishment of a land revenue system and the
emergence of an agrarian economy. The Cholas reemerged in the 9th century AD, defeating the
Pallavas, and consolidated their empire over the next four centuries. The Chola period witnessed
maritimeexpeditionstoneighbouringSriLankaandSouthEastAsiancountriesandforgingoftradeand
culturallinkswiththesecountries.Historiansrefertotheexistenceofanelaboratebureaucracyduring
thisperiodwithsomeautonomyforvillagelevelpoliticalunits.

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ThedeclineoftheCholassawabriefperiodofMuslimruletilltheriseoftheVijayanagarrulers,
who ruled the Tamil territories through Telugu warrior chiefs or Nayaks and through local Tamil
chieftains. Dominant landed groups emerged and the rights of share cropping peasantswhich was a

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featureofCholarulesufferederosion.WiththedeclineoftheVijayanagarEmpire,theTamilterritories
were parcelled out among several petty kings such as the Nayaks of Madurai and Thanjavur who
declaredthemselvesindependent.Thiswasaperiodofpolitical,economicandsocialinstabilitywhich
enabledtheBritishtotakefulladvantage.WiththearrivaloftheEastIndiaCompanyatMadrasin1639,
anewchapterwasopenedinthehistoryofSouthIndiaandverysoon,mostofSouthIndiacameunder
thehegemonyoftheBritish.
During the next two centuries, the East India Company gradually extended its influence and
obtainedpossessionoftheentireareafromCapeComorintotheNortherncircars,theDanishstationof
Tranquebar, the French settlements at Pondicherry and the territories of the five native States1 all of
whichtogethercametobecalledMadrasPresidencywithitscapitalcityatMadras.Theareaofthethen
MadrasPresidencywas141,705sq.miles.

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WithIndiaattainingindependencein1947,theMadrasPresidencycontinuedinitsoriginalform
comprising Tamil Nadu, Andhra Pradesh, Karnataka and parts of Kerala. However, the agitation for a
separate Andhra State compelled the Government of India to bifurcate the Madras Presidency into
AndhrawithTeluguspeakingareasandMadraswithTamilspeakingareas.Theoldcapital,Madras,was
retained by the new Madras State. Under the State Reorganization Act of 1956, Madras lost Malabar
district and Kasargod taluk, to the newly formed State of Kerala while Madras gained four taluks of
Trivandrum district and Shencottah taluk of Quilon district of Kerala. The four taluks gained were
constitutedasKanniyakumaridistrictinthenewMadrasState.ThenewMysore(Karnataka)absorbed
some parts of the old South Kanara district (excluding Kasargod taluk) and the Kollegal taluk of
Coimbatoredistrictin1960.Fourhundredandfivesq.milesofChittoordistrictofAndhraPradeshwas
transferredtoMadrasinexchangefor326sq.milesfromChengalpattuandSalemdistricts.TheMadras
Statethusconstitutedhastodayanareaof130,000kmandisthefourthlargestStateinthecountry.It
wasrenamedasTamilNaduon14January1967.ThetotalnumberofdistrictsinTamilNadustandsat
30.ThepopulationofTamilNaduasperthe2001Censusis62.11million,constituting6.05percentof
thetotalpopulationofIndia.

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TamilNaduGeography

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TamilNaduisboundedbyKarnatakaandAndhraPradeshinthenorthandKeralainthewest.
The coastal eastern and southern boundaries are lapped by the waters of the Bay of Bengal and the
IndianOceanrespectively.TheeasternandwesterntipsofthestatearedefinedbythePointCalimere
andMudumalaiwildlifesanctuarieswhilethenorthernextremeisPulicatlakeandthesouthernmosttip
isCapeComorinorKanniyakumaritheLandsEndofIndia..

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With an area of 130,058 sqkm and population over 62 million, Tamil Nadu is the 11th largest
stateinIndia.TheUnionTerritoryofpondicherryisasmallenclaveinthedistrictofSouthArcot..

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Traditionally, the land of Tamils has been divided into 5 major physiographic divisions the
Kurinjiormountainousregion,theMullaiorforestregion,thePalaioraridregion,theMarudhamorthe
fertileplainsandtheNeidhalorcoastalregion..

The Eastern and Western ghats meet in Tamil nadu and run along its eastern and western
borders. All of Tamil Nadu's famous hill stations, i.e Udhagamandalam, Kodaikanal, Kothagiri and
Yercaudaresituatedinthisregion.The25kmwidePalakkadgapandShencottahgaparetheonlybreaks
intothelongchainofhillsthatborderwesternTamilNadu.

Contrasting with the low rocky hills of the Eastern ghats, the hills of the Western ghats have
dense forests. This area receives abundant rainfall and the scenic valleys of Cumbum and Pollachi are

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dottedwithplantationsoftea,coffeeandspices.However,theupperreachesoftheEasternghatsare
notwithouttheirshareofbeautyandYercaudintheShevaroyhillsisfamousforitsfruitorchardsand
bananaandcoffeeplantations.
Tamil Nadu has a wealth of flora and fauna and some of its major wildlife sanctuaries like
MudumalaiandAnaimalai(IndiraGandhiW.S)aresituatedinthehillsoftheWesternghatswhichisthe
habitat of elephants, tigers, bisons and a variety of monkey and deer. Of the 3000 and more plant
speciesfoundinTamilNadu,amajorityarefoundinthemixeddeciduousforestsofthisregion.Oneof
themostnoteworthyflowersistheKurinjiofKodaikkanalwhichbloomsoncein12years.Cinchonafrom
whichquinineadrugfortreatingmalariaisextracted,andeucalyptusgrowabundantlyintheNilgiris.
Forests of medicinal herbs are found in Palani hills and Courtallam. Palmyrah trees grow by the
thousandsinTirunelvelianditsproductsareusedasrawmaterialsforseveralcottageindustries.Rubber
isthemainplantationcropinKanniyakumariandthemoreexoticsandalwoodgrows,thoughnotinvery
largenumbers,intheJavadhuhillsofVelloredistrict..

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The perennial river of the state is the CAUVERI which originates in Coorg in the neighbouring
Karnataka. The fertile Coromandel plains are irrigated by the Kaveri and its delta in Thanjavur
NagapattinamregionisknownasthegranaryofTamilNadu.TheotherriversinthestatearethePalar,
Pennar,VaigaiandTamiraparani..

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The arid, desertlike land in the state is confined to a small area in Tirunelveli district and is
knownasthePalai.ThecoastalTamilNaducomprisestheCoromandelcoastwhichhasitsnorthernhalf
andtheFisheriescoastwhichisthesouthernhalf.Mylapore,PoompuharandMamallapuramwerethe
famousancientportsontheCoromandelfromwheremerchantshipssailedtoRome,Greeceandthefar
east. There are mangrove forests at Pichavaram and prominent bird sanctuaries at Pulicat Lake and
Vedanthangal,thoughthelatterisnotonthecoastitself.Oncefamousforitspearls,theFisheriescoast
isamajortouristattractionsinceithassomeofthemostimportantpilgrimcentresinIndia.

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Art,ArchitectureandCulture

The dynasties which ruled ancient Tamil Nadu have left behind a rich heritage of art,
architectureandculture.ProminentamongthemaretheCholaswhobuilttheGrandAnicutacrossthe
Cauvery river in the 2nd century AD,a work that is even today considered an engineering marvel.
Poompuhar, a port of the Chola empire, built over 2000 years ago points to bustling trade links with
South East Asian kingdoms. The Pallavas, who ruled between the 6th and 8th century AD with
Kancheepuramastheirheadquarters,gaveexpressiontoartandarchitecturethroughtheirmagnificent
templesandtemplecarvings.ThePandyasofMaduraiandthelaterCholasalsoleftbehindimpressive
monuments,particularlytempleswithintricateGopurasandcarvings.Thetempleswerenotonlyplaces
ofworshipbutalsoservedascentresoflearning.SubsequentinroadsfromtheNorthbytheVijayanagar
kingsfurtherenrichedthearchitecturalscene.

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TamilNadualsohasarichculturalheritageinotherareas.DanceformssuchasBharathanatyam
and various forms of music including Carnatic music have flourished here for centuries. Handicrafts
includeintricatelycarveddesignsinwood,stoneandmetal.TheexquisitelycarvedbronzeandTanjore
plates deserve special mention here. Modern day social reformers and freedom fighters such as
Subramanya Bharathi, V.V. Subramania Iyer, V.O. Chidambaram Pillai and Periyar E.V. Ramasamy
NaickeralsolefttheirindeliblemarkontheculturalfabricofTamilNadu.

DakshinaChitra is an exciting cross cultural living museum of art, architecture, lifestyles, crafts
andperformingartsofSouthIndia.ItissutuatedinChenni.TheliterallymeaningofDakshinachitraisa

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picture of south. You can explore 17 heritage houses, amble along recreated streetscapes, explore
contextual exhibitions, interact with typical village artisans and witness folk performances set in an
authenticambience.

PopulationTrends
Accordingtothe2001Census,theStatespopulationisapproximately62millionasopposedto
55.9millionin1991.Thesexratioworksoutto986in2001ascomparedto974in1991and977in1981
(Table 1). The decadal (19912001) growth rate is 11.19 per cent. The density of population in Tamil
Nadu, a true indicator ofpopulation distribution, is 478 personsper sq. km in 2001, asagainst 429 in
1991and372in1981.

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TABLE1Basicdemographicindicator
Indicators

1971

1981

1991

1997

Population in 41.2
millions

48.2

55.9

60

Decennial
23.3
Growth(%)

17.5

15.4

Density
of 317
Population per
Sq.Km

372

429

Urban
30.3
population(%)

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SexRatio 978

977

62.1

7.5

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11.2

462

478

34.2

36.8

43.9

974

975

986

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2001

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Source:RegistrarGeneralofIndia,CensusDocuments1971,1981,1991,2001(Provisional)

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TamilNaduistodaythemosturbanizedStateinthecountrywith42percentofitspopulation
livinginurbanareas.TamilNadusslumpopulationwasestimatedin19934tobe3.13millionwhichis
16.5percentofthetotalurbanpopulationoftheState.Morethan30percentofChennaispopulation
livesinslumsand50percentoftheseareindenseslumareas.

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The scheduled castes (SCs) constitute a higher percentage of the population in Tamil Nadu
(19.18percentin1991asagainst18.3percentin1981)comparedtothatforthecountryasawhole
(16.3percentin1991and15.7percentin1991).However,TamilNaduhasamuchlowerpercentageof
scheduledtribes(STs)1percentin1991asagainsttheallIndiaaverageof8percent

Socialfactors
Health
ComparisonofsomemajorhealthindicatorsofTamilNaduwithAllIndiafiguresshowsthatthe
Statehasmadeimpressivestrides.TamilNaduhasshown,overthelasttwodecades,fasterreductionin

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population growth rate as compared to all other States except Kerala. The annual population growth
rateduring198191was2.14percentforAllIndia,whileitwas1.43percentforTamilNadu,second
onlytoKerala(1.34percent).Forhealthindicatorssuchaslifeexpectancy,totalfertilityrate(TFR)etc.
thereareoftentwodatasets,atthenationalandStatelevels.Bothofthesehavebeenpresentedhere,
whendeemeduseful,togivecomparativefigures.Lifeexpectancyatbirthindicatesthequalityofhealth
care in the State. The vital events survey (VES) for the reference year 1997, conducted by the Tamil
Nadu Danish International Development Assistance (DANIDA) Health Care There have been doubts
raisedovertherecallmethodologyadoptedbythe55thRoundofNSS.Therearesomewhofeelthatthe
headcountratioshavebeenunderestimatedbecauseofthismethodology.

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Project(TNHCP),revealedthatLEB,whichwas41.09yearsformalesin195960,roseto64.91
years in 1997 and for females from 38.24 years to 68.85 years during the same period. The sample
registrationsystem(SRS)estimatesfortheyear19972001rankedTamilNadusLEB(65.2formalesand
67.6forfemales)nextonlytoKerala,MaharashtraandPunjab.Thecrudebirthrate(CBR)fortheState
declinedfrom31.4in1971to19.3in2000(SRS),andwassecondonlytoKerala(18.2).Thecrudedeath
rate(CDR)declinedfrom14.4in1971to7.9in2000(SRS)andtheStaterankseighthinthecountryin
thisrespect.

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TheTFRforTamilNaduhasshownasharpdeclinefrom3.9in1971to2.0in1997(SRS).TheVES
for1997alsoindicatesaTFRof2.0.HowevertherecentNationalFamilyHealthSurvey(NFHS2)19989
datashowTamilNadusTFRtobe2.48(Figure1.1),nextonlytoKerala(2.0).Significantly,NFHS2shows
anincreaseinTFRforKeralaalsofrom1.8in1997(SRS)to2.0in19989.

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WithrespecttoIMR,theStatehasmaderapidprogress.TheIMRhasbeenreducedfrom113in
1971to48.2in19989(Figure1.2).TheNFHS2surveyshowsthattheStatestandsfifthamongmajor
States in IMR with Kerala maintaining the lead (16.3) and Maharashtra (43.7) replacing Punjab as the
State with the second lowest IMR. However, perinatal mortality decline has not been very significant,
from55.2in 1971to43.4in1997(asperSRS),whilethecorrespondingfiguresforKeralaandIndiain
1997were17.5and43.2,respectively.

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LiteracyandEducation

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Tamil Nadus human development achievements have been largely a result of its strong
educational heritage. Even in the early years, when the State was Madras Presidency, education was
activelypursuedandpromoted.Theresultsofthisareevidentinthepostindependenceperiodaswell.

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WhiletheliteracyrateofTamilNaduwasalmostcomparabletotheallIndiapositionin1941,
theStatehasinchedaheadofallIndiainthedecadesfollowingindependence(Figure5.1).Theresultsof
the 2001 Census show that Tamil Nadu has attained third position behind Kerala and Maharashtra
among major States, both in terms of overall and female literacy. While the overall literacy rate has
goneupfrom62.7percentin1991to73.47percentin2001,themaleliteracyratehasincreasedfrom
73.75to82.33percent.Whatisencouragingisthatthefemaleliteracyratehasgoneupbymorethan
13percentagepointsfrom51.33percentin1991to64.55percentin2001.Theratioofmaleliteracyto
female literacy has come down from 1.4 in 1991 to 1.27 in 2001, revealing the narrowing of gender
inequalityintheState.

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Tamil Nadu is the first State in the country to provide computer education in all government
highersecondaryandhighschools.Over100,000studentshavebenefittedfromthisinnovativescheme.
The State is also a pioneer in providing multiskilled training through vocational education to improve
thequalityofsecondaryeducation.

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In the field of higher education, selffinancing institutions, polytechnics, industrial training
institutesandartsandscience collegeshavebeen encouragedsothattheStatesburden inproviding
highereducationisconsiderablyreduced.
Tamil Nadu has 500 engineering colleges and 1150 arts colleges, 2250 schools. Some of the
prestigioushighereducationinstitutionsinTamilNaduarethefollowing:
1. IndianInstituteofTechnology,Chennai

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2. AnnaUniversity,Chennai
3. LoyolaAcademy,Chennai

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4. RMKandRMDGroupofEngineeringColleges,Chennai
5. MSNEngineeringCollege,Chennai

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6. VITInstituteofTechnology,Vellore

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7. SathyabamaUniversity,Chennai.
8. AmritaDeemedUniversity,Coimbatore

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9. PSGInstituteofTechnology,Coimbatore
10. BharathidasanInstituteofManagement,Chennai

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11. MadrasUniversity,Chennai
12. NationalInstituteofTechnology,Tirichi

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13. ChristianMedicalCollege,Vellore

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Growth

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The allround development of the State over the last five decades can be seen from the
increasedcontributionfromtheindustries(secondary)andservices(tertiary)sectorstotherealincome
of the States economy. Tamil Nadus performance during the different Plan periods compared to the
performanceofthecountryasawhole(atconstantprices)showsthattherateofgrowthoftheStates
economyhasbeenmarginallyhigherthanthatofthecountryduringtheFirstandFourthPlans,Fifthto
Seventh Plans and in the first three years of the Ninth Plan, and marginally lower than that of the
countryduringtheSecond,ThirdandEighthPlanperiods.TamilNadusNSDPgrowthratewas6.3per
cent per annum during the 1990s, ahead of the NSDP growth rate of 5.99 per cent of the 15 major
Statesinthecountry.

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AnnualGrowthRateTamilNaduandIndia(inpercentage)
Planperiod TamilNadu

India

First

4.45

3.6

Second

2.9

Third

1.56

2.2

Fourth

3.4

3.3

Fifth

5.2

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Sixth

6.01

5.2

Seventh

4.94

5.8

Eight

5.97

6.8

Nine

5.46

5.34

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PerCapitaIncome

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TamilNaduspercapitaincomewasbelowthenationalaverageduring the1980sbutcrossed
theallIndiaaveragemarginallyin19912.Eversincetheearly1990sthishigherpercapitaincomehas
beenmaintained.

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Tamil Nadu ranks fourth among major States in terms of per capita income. Tamil Nadus per
capitaincome(atcurrentprices)wasRs19,889in200001.Maharashtra,PunjabandHaryanaarethe
threeStateswhichhavepercapitaincomehigherthanTamilNadu.AmongthesouthernStates,Tamil
NaduspercapitaincomewashigherthanthatofKerala(Rs19,463),Karnataka(Rs18,041)andAndhra
Pradesh(Rs16,373).

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PovertyLevels

The estimates of poverty made by the Union Planning Commission in 19992000 show that
21.12 per cent of the States population lives below the poverty line, this is less than the allIndia
averageof26.10percent.ThepercentageofpopulationbelowthepovertylineinTamilNaduin19734
was56.51percentindicatingadeclineby35.39percentagepointsduringthistimeperiod.Moreover,in
19734,thepopulationbelowthepovertylinewashigherthantheallIndiaaverageof54.93percent
andTamilNaduwassixthamongmajorStatesintermsofbelowthepovertylinepopulation.

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AgriculturehasbeenthemainstayoftheStateeconomysinceindependencewithmorethan65
percentofthepopulationdependingonthissectorforaliving.

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Therearestronglinksbetweenagricultureandeconomicgrowth.Agriculturespursdemandfor
inputssuchasfertilizers,pesticidesandmachinery,andonthesupplysideitprovidesrawmaterialfor
agrobased industries such as cotton textiles, sugar and vegetable oils. However, in the process of
development,theshareofagricultureinthenetStatedomesticproduct(NSDP)graduallydeclinesdue
tohigherproductivityandproductioninthenonagriculturalsectors.InTamilNadu,thecontributionof
agriculture(inclusiveofcrop,livestock,fisheriesandforestry)toNSDPhasbeendecliningoverthelast
fewdecades.

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Tamil Nadu has historically been an agricultural state and leading producer of agricultural
products in India. Tamil Nadu agriculture is heavilydependent on the river water and Monsoon rains.
TamilNaduisalsotheleadingproducerofkambu,corn,rye,groundnuts,oil,seedsandsugarcanein
India.AtpresentTamilNaduisIndia'ssecondbiggestproducer

Whereasagricultureaccountedfor53.27percentofNSDPin19501,itaccountsforonly16.65
percentin200102.Ontheotherhand,theshareofthesecondaryandtertiarysectorshasincreased
from 13.72 per cent and 33 per cent, respectively in 19501 to 34.04 per cent and 49.31 per cent in
200102.Therewasadeclineintheprimarysectoratthenationallevelfrom49percentto27.5per
centduringthesameperiod.

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The relatively greater decline in the State is to be ascribed to the lack of sustained growth in
agriculture.Thegrowthoftheagriculturesectorinthe1990swas3.95percentasagainst5.3percentin
the 1980s. On the other hand, the annual growth rates in the manufacturing and tertiary sectors
improvedfrom4.52percentand6.72percentinthe1980sto5.35percentand7.12percentinthe
1990s.

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Challenges

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There is a need for improving the agricultural growth to meet the challenges like rising food
demand,increaseinindustrialrawmaterialrequirementsandprovidingmanygainsinemploymentin
agriculture through galvanizing potentials of agriculture. Tamil Nadu did well in irrigated agriculture,
whilerainfedagriculturehasnotbeengivenadequateattentionintermsofinfrastructuredevelopment,
technologyandextensiondeliverysystemresultinginlowagriculturalgrowthandhighlevelofpoverty.
Coverage of High Yielding Varieties was higher during early phases of green revolution and increased
tremendouslyintheirrigatedenvironmentcomparedtorainfedenvironment.

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Therearedeficitsinsupplyofcertainagriculturecommoditieslikepulses,oilseedsandcotton.
Increaseinpulsesproductionismarginalandthestatehastodependonimportstomeetthedemand.
Cotton production in the state declined at the rate of 2.38 per cent per annum during the last two
decadesmainlyduetodeclineinareaby2.57percent.Productivitygrowthofcottonismarginal(0.20
percent)andaverageproductivityofcottoninthestateislesserthanthenationalaverageparticularly
due to large scale cultivation under rainfed condition. Major oilseeds such as groundnut and gingely
exhibiteddecliningtendencyintermsofareaandproduction.

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Theareaunderfallowlandshasincreasedovertheyearsduetovariousreasons.Thecurrent
fallows are on the increase from 12.02 lakh hectare in 1970s (9.2 per cent) to 15.03 lakh hectare in
200203 (11.6 per cent) ; area sown more than once tended to decrease from 13.21 lakh hectare in
1970s to 6.01 lakh hectare in 200203. The gross cropped area which reached the maximum in 1970s
with74.56lakhhectaresharplyfellto51.91lakhhectarein200203.

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Constraints

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Marginalization of land holding, high variability in rainfall distribution, inadequate capital


formationbythepublicsector,decliningpublicinvestmentonagriculture,decliningnetareasown,over
exploitationofgroundwaterandinadequatestorageandpostharvestfacilitiesaffecttheagricultural
performanceinthestate.

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Thestatesupportssevenpercentofthecountry'spopulationbutithasonlyfourpercentofthe
landareaandthreepercentwaterresourcesofthecountry.Ofthetotalgrosscroppedarea,only50
percent of the area is irrigated in Tamil Nadu. Similarly, of the total area under food grains, only 60
percentoftheareaisirrigated.Nearly,52percentofareaisunderdryfarmingconditionsinTamilNadu
apartfromstablecroppingintensitywhichishoveringaround120percentovertheperiod.Inspiteof
theaboveconstraints,theStatehasmadeatremendousperformanceintheproductionofcrops,which
isattributedmainlytotheproductivityincrease.

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Strategies
ThestrategiesoftheGovernmenttoachievethegoalinAgriculturalsectorare;
Adoption of alternative cropping strategies derived for agroclimatic zone based cropping
pattern evolved by TNAU to raise remunerative crops and to ensure maximum utilization of available
landandwateraimingtoincreasecroppingintensity.

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As a part of Alternative Cropping Strategy, cultivation of Jatropha, Sugar beet and Sweet
sorghumareaimingat,asannouncedbytheHon'bleChiefMinisteronContractfarmingbasisthrough
approvedIndustrialentrepreneursfortheproductionofEthanolandBiodiesel.Thesecropsarehighly
remunerativeandcanbegrowninmoderatelyfertilelandswithcomparativelylesswater.

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Taking up cultivation in vast tract of waste lands through Massive Comprehensive Waste
LandDevelopmentprogrammeasannouncedbytheHon'bleChiefMinister.

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Much emphasis on dry land development integrating Watershed Development and Waste
landDevelopmentprogramme

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Adoption of dry land development technologies and crop production technologies for dry
landcropstostepuptheproductivity.

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Identification and promotion of relevant technologies to bridge the gap between the
potentialyieldandactualyieldofmajorcrops.

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Speedy transfer of technologies to the farming community through ICT (Information and
CommunicationTechnology).

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Conduct of Seminars, Workshops and Intensive Preseason campaigns involving line


Departmentstoenthuseandassistfarmerstoharvestgoodcropsandtogetgoodprofit.

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Efforts to provide technologies and advice on Agriculture, Horticulture soil and moisture
conservation,AnimalHusbandryetc.,underoneroof.

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IntroductionofContractfarmingsystemforMaize,Oilseeds,PulsesandCottoninpotential
districtswithassuredbuybackarrangementsatpreannouncedpriceorprevailingmarketpriceifitis
high. The main objective of the programme is to ensure expansion of area under these crops and to
motivefarmersespeciallySF/MFfarmerstogetassuredremunerativepricefortheproduce.

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EnsureavailabilityofqualityseedsonenhancedSRRthroughPublicPrivatePartnership.

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Massive adoption of integrated nutrient management and integrated pest management


technologywithemphasisonecofriendlyAgricultureDevelopment.

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Muchfocusonrestorationofsoilthroughorganicfarmingapproachandtopromotevermi
composting,compostmakingthroughplueorotus,greenmanuringetc.

Effortstoprovidesitespecificmacroandmicronutrientrecommendationsonthebasisof
soiltestvillagewisefertilityIndex.
Promotionofmicroirrigationtomaximizewateruseefficiency.
EmpowermentofwomenbyrevitalizingTANWAgroups.

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ManufacturingIndustry
TamilNaduisoneofthemajorindustrialisedstatesinIndia;itcontributesover30%toIndias
automotive and auto component sector. Tamil Nadu is one of the favourable destinations for IT/ITeS
industry.During200506,IT/ITeSexportsfromTamilNaduwasworthRs13,960crore,growingby29%
againstthepreviousyear.ThetextileindustryofTamilNaduplaysapivotalroleinthecountrystextile
industry. Textiles sector is one of Tamil Nadus high growth sectors, which generates over 45m
employment.ItisexpectedthatstatestextileindustrywillbeworthofUS$4050billionby2015,which
wouldgenerateadditional5mjobsinthestate.Thestateaccountsfor16percentofthetotalnumber
offactoriesinthecountry.Italsohasawelldevelopedmanufacturingsectorwithahighvalueaddition
inthefactories.

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KeyIndustries:

In the post liberalisation era, the state has emerged as one of the frontrunners in attracting
investmentproposals.TamilNaduisinthetopquartileinthetotalnumberofenterprisesinthecountry
withaconsistentgrowthrateof19percent.

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Automobilesector:

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Withabout110keyplayersintheworld'sautomobileindustrylocatedinChennai,TamilNadu
holds35percentofautocomponentsinstalledcapacityinIndia.ExportsfromTamilNaduareabout$
240 million, which constitute 27.5 per cent of the total exports of the country. The auto component
industryofthestatehaswitnessedaninvestmentofabout$800millioninrecentyears.

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Many heavy engineering andmanufacturingbased companiesarecenteredinandaround the


suburbs of Chennai (nicknamed, "The Detroit of Asia"). Chennai boasts the presence of global vehicle
manufacturing giants like Ford, Renault, Nissan, Caterpillar, Hyundai, BMW and Mitsubishi as well as
domesticheavyweightslikeMRF,TIcyclesofIndia,AshokLeyland,RoyalEnfield,Mahindra&Mahindra,
TAFETractorsandTVS.Everythingfromautomobiles,railwaycoaches,battletanks,tractors,motorbikes
andheavyvehiclesaremanufacturedinTamilNadu.

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Cottontextiles,HosieryandReadymadegarmentssector
TamilNaduisoneoftheworldsleadingcottontextilecentres.Thestatecontributesmorethan
25 per cent to the country's exports of cotton yarn and fabrics. It continues to maintain its leading
position in the industry and number of multinationals such as WalMart, Tommy Hilfiger, GAP, Diesel
etc.havemadethestateaglobalsourcinghubforreadymadegarmentsowingtothecomparativelylow
production costs and high quality of output. With the phase out of the Agreement on Textile and
Clothing(ATC),thestateiswellpositionedtosignificantlyincreaseitstextileexports.

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The textile industry plays a significant role in the Indian economy by providing direct
employmenttoanestimated35millionpeople,andtherebycontributing4%ofGDPand35%ofGross
ExportEarnings.Thetextilesectorcontributesto14%ofthemanufacturingsector.ThecityofTirupur
(Coimbatoredistrict),inTamilNaduisthelargestgarmentexporterinIndiaandsometimesreferredto
asTextilevalleyofIndia.In2004,theexportturnoverfromthetownwasmorethanRs.50,000million
($1,100million).Some7,000garmentunitsinthetownprovidesemploymentopportunityto1million
people.

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56%ofIndia'stotalknitwearexportscomefromTirupur.TheExportImportPolicyof20022007
acknowledges Tirupur for its contribution to the export efforts. Next to Tirupur, the town of Karur
generates around $300 million a year in foreign exchange through home textile exports such as bed
linens, kitchen linens, toilet linens, table linens and wall hangings. Madurai and Kanchipuram is very
famous for handloom sarees. This handloom sarees are on sale all over India. Tamil Nadu, Karnataka,
and Kerala are the main states for wholesale sarees. This sarees manufacturing raw materials are
purchasedfromSalemandCoimbatore.

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Cementsector

TamilNaduisleadingproducerofCementinIndia,itisthehomeforleadingcementbrandsin
thecountrysuchasChettinadCements(Karur),[pic]

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Dalmia Cements (Ariyalur), Ramco cements (Madras Cement Ltd), etc., There is a ACC cement
factorylocatedinMadukaraioutskirtsofCoimbatore.

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Engineeringsector

Theengineeringindustryinthestateconsistsofanetworkofnearly3,000unitsandemploysa
skilledworkforceofmorethan250,000,makinghighqualityinputssuchascastingsandforgingsanda
widevarietyofancillaryproducts.Effortsarebeingmadetoboostfurtherdevelopmentofthisindustry
byenablingformationofindustryclusters.

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Withmodernisationofagricultureandriseinstandardoflivingofthemiddleclass,thedemand
for pumps is growing at a fast pace. Coimbatore Pumps and Motors manufacturing cluster with over
1,000 units are meeting almost 40 per cent of the countrys requirements of pump sets. Coimbatore
pumpsarebeingexportedforover25years.Theindustryhasdemonstratedtremendousflexibilityby
incorporating design changes to suit the site conditions. It has maintained quality, reliability and
performance.

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Leatherprocessingsector

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The state has 70 per cent of the total installed capacity of hide and skin. It has a dominant
presence in the leather and leatherbased industries. The State Government is geared to provide all
possible capital subsidies and infrastructure support by setting up industrial estates and common
effluenttreatmentplants.

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FireworksandSafetymatchessector

Thetownof Sivakasiisaleaderinthe areasofprinting,fireworks,andsafetymatches.It was


fondly called as Kutty Japan or "little Japan" by Jawaharlal Nehru. It contributes to 80% of India's
productionofsafetymatchesaswellas90%ofIndia'stotalfireworksproduction.Sivakasiprovidesover
60%ofIndia'stotaloffsetprintingsolutionsandranksasoneofthehighest taxpayingtownsinIndia.
Sivakasialsoisa100%employedtown,puttingitinthecompanyofveryfewtownsinIndia.

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ChemicalsandPetrochemicalssector
The chemicals industry has grown rapidly in India and overseas. The state raditionally has a
strong base in the chemicals industry. Manali, situated on the outskirts of Chennai has emerged as a
majorpetrochemicalscomplex.

Agrobasedsector

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Owing to the ideal climatic conditions a strong agrobased food industry has emerged in the
state.Thestateisaworldleaderinagriculturalproductionwithahighyieldperhectareofsugarcane,
riceandgroundnut.TheMaduraiDindigulbeltinTamilNaduhasfavourableclimaticconditionsforthe
cultivationofavarietyoffruitsandvegetables.Thefloricultureindustryislikelytogetathrustwiththe
area around Coimbatore, Dharmapuri and the Nilgiris being earmarked as locations ideal for the
cultivationofflowerssuchasroseandchrysanthemum.Ofthese,Coimbatorehasbeenidentifiedasan
intensivefloriculturezone.

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TourismIndustry

In 2003, 40 different tourism projects with a total investment of US$ 423.4 million have been
sanctionedandareinprogress.Intermsofinvestmentinthetourismsector,thestateranksamongthe
topfiveinthecountry.TamilNadu,isthemostprominentstateofIndia.

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Thecapital.Chennaiisacosmopolitancityandthecapitalofthestate.TamilNaduisabastion
ofHinduism,whosepastenduresintothepresent.Templeswithtoweringspirescalledgopuramsarea
commonfeatureofthisstate,seldomseenanywhereelseinthecountry.TemplesinTamilNaduwere
thefulcrumofsocietyandeventodayartformsthathavetheirorigininreligiousworshipcontinueto
colour daily life. Notable among these are splendid bronzes of deities, painting on glass and
Bharatnatyam.Kanchipuram,alsocalledKanjeevaram,isfamousthroughoutthecountryasthecenter
where lustrous silk sarees are woven. Likewise Thanjavur is an important center for bronze figure
casting.Mahabalipuramhasavastwealthofsculptures.IncontrasttothetempleheritagePondicherry
isknownforlongaFrenchcolony.Yetanotherfacetofthissurprisinglydiversestateistwohillstations
Ootacamund and Kodaikanal. Both are little patches of England, being much loved by the expatriate
population of the Raj. Both places provide delightful relaxation during an extended tour of the south,
havingawiderangeofhotelaccommodation.ThecuisineofTamilNadu,moreorlesstotallyvegetarian,
hasbecomeenormouslypopularalloverthecountry

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AnimalHusbandry,Fishing&Forestrysector:

AnimalHusbandry:

ThetotallivestockpopulationoftheStatewhichstoodat259.39lakhsin1997hadincreasedby
1.01percentwhencomparedtotheprevious1994census.However,thetotallivestockpopulationin
the State as per the provisional figures of the Livestock Census 2004 was at 249.42 lakhs, recording a
marginaldeclineof3.85percentoverthatof1997census.Thebovine(cattleandbuffaloe)population
intheStatehadwitnessedasteadydeclinebetween1982and2004.Whilesheeppopulationshowed
signsofvariation,thegoatpopulationhadsteadilyincreasedduringthereferenceperiod.Thepoultry
population at 865.91 lakhs in 2004 had recorded an increase of 137.16 per cent over the previous

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census.TheStaterankssecondinpoultrypopulationinthecountryandaccountsfor17.7percentof
thetotalpoultrypopulationinIndia

EggProductionandPercapitaAvailability:
TamilNaduisoneoftheleadingStatesineggproductionandexport.Theecofriendlybackyard
poultryrearingispractisedalongwithcommercialpoultryfarmingintheState.Theeggproductionin
the State which improved from 3784million numbers in 200304 to 6395 million numbers in 200405
marginallydeclinedto6223millionnumbersin200506.Consequentlythepercapitaavailabilityofegg
perannumhasdeclinedfrom102numbersin200405to97numbersin200506.Acentralstateshared
poultry development programme (80 : 20) is being implemented in the Poultry Farm at Kattupakkam
withatotaloutlayofRs.74.69lakhsandatDistrictLivestockFarm,HosurwithatotaloutlayofRs.85.00
lakhs.

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FishProduction:

Overallfishproductionduring200506wasestimatedat5.46lakhtonnes,whichrepresentedan
increaseof38.2percentovertheestimatedproductionof3.95lakhtonnesin200405.Morethan70
percentoftotalproductionisaccountedforbymarinefish.Asaresultofurbanisationandgrowthin
populationandconsumption,thedemandforseafoodhasincreased.TheStatehasintroducedFisheries
Development Mission to enhance production of fish and to sustain livelihood and to generate
employment for coastal and rural poor. To meet the growing demand, the main focus is on the
productionofbothmarineandinlandfishthroughinnovativeandscientificmethodsinreservoirs,tanks
andponds.

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Electronicssector

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Electronics manufacturing is a growing industry in Tamil Nadu. Companies like Nokia,


Flextronics, Motorola, SonyEricsson, Foxconn, Samsung, Cisco, and Dell have chosen Chennai as their
South Asian manufacturing hub. Products manufactured include circuit boards and cellular phone
handsets.EricssonalsohasaResearchandDevelopmentfacilityinChennai.BigEPCcompanieshaveset
uptheirEngineeringcentreswhichincludeSaipemIProjectServicesltd,Technip,FosterWheeler,Mott
Mecdonald,PetrofacandTechnimont,Austriancompany"AustrianEnergyandEnvironment"havealso
a design office here besides local giant ECC {Larsen & Toubro}. SanminaSCI is the latest company to
invest in Tamil Nadu to create a state of the art manufacturing facility. Nokia Siemens Networks has
decidedtobuildamanufacturingplantforwirelessnetworkequipmentinTamilNadu.

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Mineralbasedsector

The mineral wealth of the state comprises granite, limestone and lignite. Neyveli Lignite
Corporationhasthecountrysbiggestopencastmechanisedlignitemines,mining24MTPAofligniteand
generating2,490MWofpower.Thestateslimestonereservesstandsat1,473milliontonnes.Thereare
12majorcementplantsfunctioninginthestate.ThemajorplayersareTamilNaduCements(TANCEM),
Dalmia Cements, Madras Cements, India Cements, Grasim Industries, Associated Cement Companies
andChettinadCements.

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ExportandImport
Chennai and Tuticorin are the major ports in Tamil Nadu. Nearly 13% of Indian exports and
importsaredonebyTamilNaduPorts.

ServiceSector:
Tamil Nadu witnessed a substantial growth in IT, ITES, BPO and IT hardware manufacturing
sectors. The Information Technology (IT) is the fastest growing segments of Indian industry both in
terms of production and exports. In FY200506, the IT industry has grown by 31.4% and reached
US$29.6 billion from US$22.5 billion in 200405. The domestic market revenues increased to US$6
billion,agrowthof25%overthepreviousyear,andtheexportsgrewby33%toreachUS$23.6billion.
TheIndianITITEnabledServices(ITES)industryhasalsoshownagoodgrowthrateof33%inexportsin
FY06toreachUS$23.6billioncomparedtothesameinthepreviousyear..TheITsoftwareandservices
increased to US$13.3 billion, a growth of 33% over the previous year; the ITESBPO segment grew by
37%astherevenuesreachedUS$6.2billion,theengineeringservicesandproductexportsreachedUS$4
billioninFY06fromUS$3.14billioninFY05.

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ChennaiisthesecondleadingsoftwareexporterinIndia,afterBangalore.India'slargestITpark
is housed at Chennai, jointly made by Ascendas India Ltd, a Singaporebased company engaged in
providingbusinessspacesolutions,andTamilNaduIndustrialDevelopmentCorporation(TIDCO)

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FromTamilNadu,thesoftwareexportshavegrownby32%andtouchedRs14.12billioninFY06.
TheITsectorinTamilNaduhasimmensedepthandrange.Itsdepthandrangecanbegaugedfromthe
widebased portfolio of its export basket. The portfolio consists of application software and system
software, which has the highest share with around 70%; ITES and BPO with a share of 13%;
communication software, VLSI Design and web solutions with a share of 8%; IT consultancy with a
percentagecontributionof6%andproductdevelopmentwithapercentagecontributionof3%.InTamil
Nadu, the number of software units is also growing rapidly. So far, 1,437 software companies have
established their facilities in the state. The increasing number of players, both national and
international,haschosentoestablishtheirbusinessestablishmentsandmanufacturingfacilitiesinTamil
Nadu,showsafirmindicatorthatTamilNaduhasemergedapreferreddestinationfordomesticaswell
asForeignDirectInvestment(FDI).

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As computed from the available data for the IT sector in Tamil Nadu, net sales for the year
endingMarch2006hasincreasedby28%comparedtothesameinthelastyear.Andnetsalesforthe
quarter ending June 2006 has also shown an increase by 17% compared to the same period in the
previousyear.

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BusinessProcessOutsourcingServices:

Chennai is now emerging as the most preferred destination for highend BPOs in financial
services, healthcare and other backoffice services for multinational companies. Companies like
Congruent Solutions (backend services for Californiabased retirement funds), Secova eServices (HR
serviceproviderforUSclients),LasonIndia(dataprocessingforhealthcareandfinancialservicesclients
intheUS)andOfficeTiger(outsourcingofcreativeworks)havesetupcentresheretotakeadvantageof
Chennai's "quality talent pool and infrastructure". Stanchart, eServe (Citibank),ABN AMRO and World
Bankhavealsochosenthecityfortheirbackofficefunctions.Intherecentsurveys,Chennaihasbeen
ratedasthemostattractivecityforOffshoringServices.

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KnowledgeProcessOutsourcing:
Chennaiisalsothepreferreddestinationforcompaniesoutsourcingtheirhighendknowledge
intensive operations. Testimony to this is the presence of major market research companies such as
Frost&SullivanandequityresearchcompaniessuchasIrevnainChennai.Thisisthenexthighgrowth
areathatChennaiiswitnessing.
A technological and industrial park (designated as a Special Economic Zone) was originally
plannedtobesetupinNanguneri,intheTirunelvelidistrictwithaninvestmentofRs.6,000crores(US$
1.6billion).However,recentlydevelopmentalplanspointtoareorientationofthisprojecttoTuticorin.

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Infrastructure

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Transportation

TamilNaduhasawellestablishedtransportationsystemthatconnectsallpartsofthestate.This
is partly responsible for the investment in the state. Though the present transportation system is
substantial,itneedstobedevelopedfurthertokeeppacewiththerapidincreaseinuse.TamilNaduis
servedbyanextensiveroadnetworkintermsofitsspreadandquality,providinglinksbetweenurban
centers,agriculturalmarketplacesandruralhabitationsinthecountryside.

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Roads&Rail

Thereare24nationalhighwaysinthestate,coveringatotaldistanceof2,002km.Thestateis
alsoaterminusfortheGoldenQuadrilateralprojectthatisscheduledtocompletein2008.Thestatehas
atotalroadlengthof167,000km,ofwhich60,628kmaremaintainedbyHighwaysDepartment.Thisis
nearly2.5timeshigherthanthedensityofallIndiaroadnetwork.Itiscurrentlyworkingonupgrading
itsroadnetwork,thoughthepaceofworkisconsideredslow.

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Tamil Nadu has a well developed rail network as part of Southern Railway. Headquartered at
Chennai,thepresentSouthernRailwaynetworkextendsoveralargeareaofIndia'sSouthernPeninsula,
coveringthestatesofTamilNadu,Kerala,Pondicherry,amajorportionofKarnatakaandasmallportion
ofAndhraPradesh.TamilNaduhasatotalrailwaytracklengthof6,693kmandthereare690railway
stationsinthestate.The systemconnectsitwith mostmajorcitiesinIndia.Mainrailjunctionsinthe
stateincludeChennai,Coimbatore,MaduraiandTiruchirapalli.ChennaihasawellestablishedSuburban
Railwaynetworkandisintheprocessofdevelopingametro.

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AsapermanentsolutiontothetrafficcongestionproblemofChennaicity,thisGovernmenthas
decidedtoimplementtheMetroRailProjectatacostofaboutRs.9,000crores.Theproject,comprising
oftworailcorridors,willhaveatotallengthof49Kmsandwillcommenceoperationswithin5years.
The detailed project report for this project has been prepared by Delhi Metro Rail Corporation and
submittedtoGovernmentrecently.AprovisionofRs.50croresismadeinthisBudgettoundertakethe
preliminaryworksforthisspecialscheme.

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DevelopmentsinRoad&RailInfrastructure

TamilNaduRoadDevelopmentCompanyLtd(TNRDC)isa50:50jointventurebetweenTIDCO
andInfrastructureLeasing&FinancialServicesLtd(IL&FS).TamilNaduwasthefirstStateinthecountry
tosetupagenuinepublicprivatepartnershipventureforinfrastructuredevelopmentintheyear1998.
TNRDC was set up with the objective to catalyze private sector participation and investment in road
sectorandmandatedtoinitiatecommercializationofoperationsandmaintenanceofroadassets.

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With the objective of converting all single lane State Highways into double lane roads, road
widening and improvement works in 1,518 kms of State Highways have been undertaken at a cost of
Rs.410croresduring20062007.Remaining3,052kmsofStateHighwayswillbeconvertedintodouble
laneroadsinthecomingyears.AtotalprovisionofRs.2,698croreshasbeenmadeintheBudget2007
2008,asthecapitaloutlayondevelopmentofroadsandbridges.Inaddition,asumofRs.829croreshas
beenallocatedforpropermaintenanceofroads.
During 20012006, only 9 Railway Over Bridges (ROBs) were completed. In contrast, in 2006
2007alone,thisGovernmenthasaccordedadministrativesanctionfor25ROBsatanestimatedcostof
Rs.410crores.In20072008,another39ROBworkswillbesanctionedandtakenupforexecutionata
costofRs.500crores

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ToenhancequalityofurbaninfrastructureinTamilNadu,theWorldBankhasapprovedaloan
of$300milliontoimplementvariousschemesinthestate,

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AirLinks

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Tamil Nadu has a major international airport, Chennai International Airport, that is connected
with19countrieswithmorethan169directflightseveryweek.Thisiscurrentlythethirdlargestairport
in India after Mumbai and Delhi and has a passenger growth of 18%. It also has domestic airports at
Coimbatore,Trichy,Tuticorinand Maduraimakeseveralpartsofthestateeasilyaccessible.Increased
industrial activity has given rise to an increase in passenger traffic as well as freight movement which
hasbeengrowingatover18percentperyear.

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DevelopmentinAirports

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Inrecenttimes,therehasbeenarapidgrowthinairtransportinourState.Therefore,theState
Government has been considering the options of expansion of the existing Chennai Airport or a new
AirportnearChennai.Inaddition,theexpansionofCoimbatore,Madurai,TrichyandTuticorinAirportsis
veryessentialtohandletheincreasingairtrafficintheseairports.

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New Airport, the greenfield airport project would come up on 4,820.66 acres of land and
expansionoftheexistingairportwouldbedoneon1,069.99acresinandaroundMeenambakkam,atan
overallestimatedcostofRs2,000crore

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Ports

TamilNaduhasthreemajorportsatChennai,EnnoreandTuticorin,aswellasoneintermediate
port,Nagapattinam,andsevenminorports,Rameswaram,Kanyakumari,Cuddalore,Colachel,Karaikal,
Pamban and Valinokkan of which are currently capable of handling over 73 million metric tonnes of
cargoannually(24percentshareofIndia).AlltheminorportsaremanagedbytheTamilNaduMaritime
Board.ChennaiPortisanartificialharboursituatedontheCoromandelCoastinSouthEastIndiaandit
isthesecondprincipalportinthecountryforhandlingcontainers.Itiscurrentlybeingupgradedtohave
adedicatedterminalforcarscapableofhandling400,000vehiclesby2009tobeusedbyHyundai,Ford
andNissanRenault.

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EnnorePortwasrecentlyconvertedfromanintermediateporttoamajorportandhandlesall
thecoalandoretrafficinTamilNadu.Thevolumeofcargointheportsgrewby13percentover2005.
TheTuticorinPortisexpandingitsfacilitiesatthecostofUS$1.6billion.TheSethusamudram
Shipping Canal Project will transform the Tuticorin port into a transhipment hub similar to those in

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Singapore and Colombo. The ports are in need of improvement and some of them have container
terminalsprivatized.
The Container Terminal in the Port ofChennai happens to be the oldest container terminal in
the country. The terminal was formally taken over by P&O Ports and operations commenced on 30th
November 2001.At the time CCT took over operations of the terminal, Chennai port was handling
350,000TEUsperannum.

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SouthIndiaPortMarketsharepercentage2006

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PowerInfrastructure:

The Tamil Nadu Energy Development Agency (TEDA) is a Tamil Nadu government promoting
renewableenergysourcesandenergyconservationactivities.Theagencyhaslargelybeenresponsible
forinstigatingthetremendousgrowthofTamilNaduinthedevelopmentofwindpower.TamilNaduis
in the forefront of all other Indian states in installed capacity. The onceimpoverished village of
Muppandal benefited from the building of the nearby Muppandal wind farm, a renewable energy
source,supplyingthevillagerswithelectricityforwork.

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Windfarmsarebeingbuiltalongthe19kmroadbetweenMuppandalandKanyakumari,atown
lyingbetweentheBayofBengal,theArabianSeaandtheIndianOcean.Theseareasgenerateabouthalf
ofIndia's2,000megawattsofwindenergyortwopercentofthetotalpoweroutputofIndia.

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TamilNaduatthistimeistheonlystatetohaveaformalBioDieselPolicytousejatrophacrops
asasourceofbiofuelandtodistributewastelandtothepoorfarmersfortheplantingofthesecrops.

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TamilNaduElectricityBoard:

Over50years(19572007)TamilNaduElectricityBoard(TNEB)haspoweredtheStateofTamil
NadutobecomeoneofthemostprogressivestatesinourCountryinsocioeconomicalaspectsaswell
asinallthefronts(viz.,)Agriculture,IndustrialProductionandServiceSectors.

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TNEBisoneofthebestperformingPowerutilities

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Revenuecollectionefficiencyisat99%

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TransmissionandDistributionlossislowat18%.
MaximumWindmillCapacity3456MW(4thintheworld;1stinIndia)

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Incidenceofpowertheftisverylow

TNEBsgrowthover50years(1957to2007)
Consumerbasefrom4.30lakhsto185.82lakhs.
Installedcapacityfrom256MWto10,098MW
Numberofsubstationsfrom89to1148.
NumberofElectrifiedTowns,VillagesandHamletsfrom1813to63177.

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NumberofAgriculturePumpsetsfrom33,440to18,01,972.
Percapitaconsumptionfrom21unitsto960units.
Peakdemandfrom172MWto8803MW.
GrossEnergygenerationfrom1053MillionUnitsto63,038MillionUnits.

TNEBsManyFIRSTsatNationalLevel

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FirstinDeveloping

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WindPowergenerationintheCountry
TheHighHeadHydroElectricSchemePykaraHydroStation.

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CascadingtypeHydroElectricStationinthehillyareaKundahSystem.
CascadingLowHeadBarragePowerHousesacrossCauveryRiver.

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PumpedStorageHydroelectricSchemetomeetthePeakPowerDemandKadamparai
PSHES(400MW).

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PowerLineCarrierCommunication(PLCC)ingridoperation.

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WirelessCommunicationSystemtoattendFuseoffCallChennaiMetro.
FirstincompletingAllVillageElectrification.

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FirstinbringingoutvaluablePowerEngineersHandBook.

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Financialinfrastructure

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Chennai is the financial capital of south India. The financial services sector offers tremendous
opportunities.Allnationalandinternationalbankshaveofficesinthestateandaregeareduptoboost
industrialinvestment.TamilNaduisinthetopquartileinthecountryintermsofbankcreditflow.The
percapitabankcreditflowinthestateis54percenthigherthanthenationalaverage.
Communications

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Thestateoffersstateofthearttelecommunicationsinfrastructureforhighspeedlargevolume
data transfer, video conferencing etc. The infrastructure includes 2,138 telephone exchanges with an
installed capacity of 4.6 million lines. Tamil Nadu is part of the global telecom network. It has 1,603
telecom exchange with over 1.4 million lines with integrated communication facilities linking it to all
partsoftheworld.TheentryofinternationalgiantslikeUSWheatandSkycellintothemarketshould
give the much needed boost to this sector and provide basic and value added services in the state.
Cellular and radiopaging services have been recently introduced in major cities like Chennai.
Coimbatoreetc.inthestate.Givenbelowaresomeimportanttelecomservicesprovidedinthestate,
especiallyinChennai(Madras)city.

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NATURALRESOURSES
MineralResources:
TamilNaduhasrichmineralresourcesandalsocontributesahigherpercentagetothenation.

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Mineral|Reserves(intonnes)|NationalShare
Lignite

30,275,00087%

Vermiculite

2,000,00066%

Garnet

23,000,00042%

Zircon

8,000,00038%

Graphite

2,000,00033%

Ilmenite

98,000,00028%

Rutile

5,000,00027%

Monazite

2,000,00025%

Magnesite

73,000,00017%

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HeavyMineralSands

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The coastal districts of Kanyakumari, Tirunelveli, Thoothukkudi, Ramanathapuram and


Nagapattinam are endowed with high quality heavy mineral placers such as Garnet, Ilmenite, Rutile,
Leucoxene, Monazite and Zircon. They have wide use in pigment, refractory, ceramic industries and
NuclearIndustry.

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TheEstimatedreservesareabout23milliontonnesofGarnet,98milliontonnesofIlmenite,5
milliontonnesofRutile,2milliontonnesofMonaziteand8milliontonnesofZircon.Themajorplayers
are the Indian Rare Earths (IRE), a Government of India Undertaking, V.V. Minerals, Beach Mineral
Company,TransworldGarnetandIndianOceanGarnetSand.TataIronandSteelCompany(TISCO)have
enteredintoMoUwith GovernmentofTamilNaduinJune2002forestablishingaTitanniumdiOxide
(TiO2) plant with a project outlay of Rs. 2,000 crores. They have commenced their prospecting
operations.

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Lignite

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Tamil Nadu is endowed with the biggest deposits of Lignite in India . The total reserves are
about 30275 million tonnes. Neyveli Lignite Corporation (NLC) has led the development of large
industrial complex around Neyveli in Cuddalore district with Thermal power plants, Fertilizer,
BrequettingandCarbonisationplants.FurtherinvestigationsinandaroundMannargudi,Jayamkondam
andSrimushnamareashaverevealedtheexistenceofLigniteasinNeyveli.

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Magnesite

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OneoftheworldsbestMagnesitedepositoccurintheState.ThemajordepositsoccurinSalem
,Namakkal,CoimbatoreandErodedistricts.TheMagnesitereservesinTamilNaduareabout73million
tonnes.Magnesiteisusedmainlyforrefractorypurposesandinchemicalindustries.ThemajorSalem
district based players in this field are Tamil Nadu Magnesite (TANMAG), a State Government
organisation,BurnStandard,aGovernmentofIndiaorganisationandDalmiaMagnesite.

Graphite
Tamil Nadu is having deposits of export worthy flaky Graphites. It is distributed in sizable
quantity in Sivagangai, Ramanathapuram, Madurai and Tirunelveli districts. The total reserves of
Graphiteareabout2milliontonnes.ThisGraphiteonbeneficiationcanyieldaconcentrateofmorethan

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80% of fixed carbon. This is suitable for manufacture of Graphite crucibles which are used in the
smelters of the steel industry. Tamil Nadu Graphites Limited (TANGRAPH) is the State Government
Undertaking,involvedintheminingofGraphite.
Quartz,Feldspar
The State is endowed with high grade deposits. Quartz and Feldspar are exported to several
parts of the world. Their deposits occur in Tiruchirappalli, Salem , Coimbatore , Madurai Tirunelveli,
Erode and Dindigul districts. The reserves of Quartz and Feldspar are about 38 and 7 million tonnes
respectively. Quartz is used in electronics and optical industries, while Feldspar is used in Ceramic
industries.

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Limestone

TamilNaduranksseventhinthecountryintermsofproductionofLimestone.Limestonebased
Cement and Chemical industries have been flourishing for the past three decades as cement grade
limestone deposits are abundant in the State. They occur in the districts of Perambalur, Tirunelveli,
Thoothukkudi, Virudhunagar, Salem , Karur, Namakkal, Dindigul, Coimbatore and Madurai. The total
limestonereservesareabout1,473milliontonnes.Thereare12majorcementplantsfunctioninginthe
State.ThemajorplayersareTamilNaduCements(TANCEM),DalmiaCements,MadrasCements,India
Cements,GrasimIndustries,AssociatedCementCompaniesandChettinadCements.

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Granite

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TamilNaduisendowedwithvastresourcesofGraniteofdifferentcoloursandshades.Thetotal
reservesofgraniteareabout710millioncubicmetres.Granitesareusedinbuildingfacading,flooring,
decorative & ornamental uses and in Monuments. Kunnam Black of Tindivanam, Paradiso of
Dharmapuri, Jubrana of Pudukkottai, Kashmir White of Madurai are popular varieties in the
international market. Black Granite occurs in the districts of Kancheepuram, Vellore, Villupuram,
Dharmapuri, Salem and Erode. Other coloured Granites occur in Dharmapuri, Pudukkottai, Madurai,
SalemandNamakkaldistricts.ThemajorplayersaretheTamilNaduMinerals(TAMIN),aGovernmentof
TamilNaduEnterprise,P.R.P.Granites,Gem Granites,PallavaGranites,Rani GranitesandEnterprising
Enterprises.

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IronOre

The State possess good reserves of iron ore of Magnetite variety in parts of Salem, Namakkal
andTiruvannamalaidistricts.ThetotalreservesofIronoredepositsareabout530milliontonnes,which
offergoodscopeforcommercialexploitation.

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Bauxite

BauxiteoccurintheKodaikanal,Palani,YercaudandKolliHillrangesintheState.Thereserves
are about 26 million tonnes. Madras Aluminium Company (MALCO) a company of Sterilite Group is
basedatMetturmanufacturingAlumina

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OilandGas

Oil and Natural Gas Corporation (ONGC) is operating in both offshore and inshore in Tamil
Nadu.FindsofOil&GashavebeenmadeintheNagapattinamandRamanathapurambasins.Offshore
exploration of oil has commenced recently. Coal bed Methane and Underground Coal Gasification
exploitationarenewareasunderstudy.

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IndustrialpromotionbygovernmentofTamilNadu
TANSIDCO:
Tamil Nadu Small Industries Development Corporation Limited (TANSIDCO), an undertaking of
Government of Tamil Nadu, functions with the specific objective of playing catalytic role in the
promotionanddevelopmentofSmallScaleIndustriesandhasteningtheindustrialdispersalthroughout
TamilNadu.Developmentofindustrialestateswithinfrastructurefacilitiesandprovisionofworksheds
&developedplots.Providesvariousschemesforthedevelopment,

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RawMaterialsSupplyScheme
MarketingAssistanceScheme

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ExportAssistanceScheme

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GuidancetoEntrepreneurs
StateIndustriesPromotionCorporationofTamilNadu

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State Industries Promotion Corporation of Tamil Nadu (SIPCOT) Limited, a fully government
ownedpremierinstitution,established intheyear1972,hasbeenacatalystindevelopmentofsmall,
mediumandlargescaleindustriesinTamilNadu.

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Bargur

Perundurai

Cheyyar

Pudukottai

Cuddalore

Ranipet

Gangaikondan

Siruseri

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GummidipoondiSriperumbudur

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Irungattukottai

Madurai

Nilakkotai

Thoothukudi

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Oragadam

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SIPCOT's role in assisting the industrialisation of Tamil Nadu is not merely quantitative but
qualitativetoo.Insteadofacceleratingthepaceofindustrialgrowthinalreadycrowdedareas,SIPCOT,
asanodalagency,ensuresthatdispersaloffinancialincentivesresultsinspurtofindustrialgrowthin
backward and hitherto underdeveloped areas. To ensure a good impact with the available limited
resources,SIPCOThascreatedIndustrialComplexesandParks,strategicallylocatedinseventeenplaces,
whichoccupyaplaceofprideinthestatesindustrialmap.

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SEZandFTZs
Tamil Nadu Industrial Development Corporation Ltd has taken the lead to set up a Special
EconomicZone(SEZ)atNanguneriinTirunelvelidistrictforexportproduction.Threeagroexportzones
arebeingsetupinthestatetoboostexports.MadrasExportProcessingZone(MEPZ)isoneoftheseven
exportprocessingzonessetupbytheGovernmentofIndia.Thestatehadapproximately15percentof
the100percentExportOrientedUnits(EOUs)presentinthecountryin2003.Toprovideanimpetusto

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growth in the IT/ITES, biotech and industrial sectors, the state has created industrial complexes and
parks.Thereare26industrialparksinthestate,fiveofwhichcatertobiotech.ITparkssuchasTIDEL
ParkinChennaihaveprovedtobehighlysuccessfulprovidingofficespacetoanumberofinternational
software giants. Automobile giants such as Ford and Hyundai have established operations at the
Irungattukottai industrial park. A number of private entities such as Mahindras have developed
industrialparks.TheMahindraIndustrialTownshipprovidesfacilitiesthatareatparwiththebestinthe
world.

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Concessions/Incentivesavailableforindustries
Specialsubsidyformegaprojects

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AnindustrysetupanywhereinTamilNaduhavinganinvestmentofRs.50croresandaboveand
belowRs.100croresiseligibleforaCapitalsubsidyofRs.25lakhs.AnindustrysetupanywhereinTamil
NaduwithaninvestmentofRs.100croresandaboveandbelowRs.200croresiseligibleforasubsidyof
Rs. 50 lakhs An industry set up anywhere in Tamil Nadu having an investment of Rs. 200 crores and
aboveiseligibleforaSubsidyofRs.100lakhs.

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Specialconcessionsforsupermegaprojects

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1.TheywillbeeligibleforSalesTaxdeferral/waiverfor14years.TheCompanycanexerciseits
optioneithertoavaildeferral/waiver.

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2.ThelimitofonlyonerevisionoftheEligibilityCertificateasstipulatedinGovernmentLetter
Ms.No.1414,Industries(MIG2)Departmentdated14121990,willnotbeapplicabletoSuperMega
Projects. They are permitted a maximum of Five number of revisions of the Eligibility Certificate. The
Eligibility Certificate indicates the investment made in fixed assets upto the date of its issue and
represents the Eligibility Limit for availing Sales Tax Deferral / Waiver at any point of time. Once the
"InvestmentLimit"and"TimeLimit"formakingtheinvestmentasspecifiedforSuperMegaProjectare
reached,theCompanywillbeeligiblefortheconcessions.

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3.Thesecompaniescancontinuetoavailsalestaxdeferral/waiveruptothespecifiedperiodof
14years,evenifthe quantumofSales TaxDeferral /Waiveravailedreachesthelimitof100%ofthe
valueofinstallmentsinfixedassetstheSuperMegaProjectbefore14years.

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4.IfthequantumofSalesTaxDeferral/Waiveravailedbythesecompaniesdoesnotreachthe
limitof100%oftheinvestmentinfixedassetsfortheSuperMegaProjectsbytheendofthe14thyear,
theycancontinuetoavailSalesTaxDeferral/Waiverforafurtherperiodnotexceeding7yearsortill
thelimitof100%ofthevalueoftheinvestmentinfixedassetsfortheSuperMegaProjectisreached,
whicheverisearlier.

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5.Thedeferredsalestaxwillberepayablein5equalannualinvestmentsasfollows:SalesTax
deferredinYear1willberepayablein5equalannualinstalmentsfromYear15toYear19;SalesTax
deferredinYear2willberepayablein5equalannualinstalmentsfromYear16toYear20andsoon.
The deferred amount repayable in any particular year will be paid in 4 equal quarterly instalments
before the last day of each quarter. Existing Industries taking up expansion / diversification, at their
existingplantlocation/sitesoratnewsites,forwhichinvestmentinfixedassetsexceedsRs.1500crores
(excludingtheinvestmentalreadymade)withinatimeframeof5years(relaxableupto7yearsinspecial
cases), will also be eligible for the concessions referred to in subparas (i) to (v) in para 2 above,
providedtheysatisfytheadditionalturnovernormsforexpansion/diversification.

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InvestmentsinTamilNadu:
The investments of FDI and domestic players contributed a huge rise to the economy of the
statewithinvestmentindifferentsectors,consideredasthegrowingsectorsoftheeconomy.
EstimateofinvestmentinTamilNadu(US$million)(2004)
InvestmentStrengths

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Businesssavvy state government; responsive local administration; good railways, ports and
telecomnetwork;adequateroadconnectivity;availabilityoflowcostlabourthroughoutthestate.

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R&D,SoftwaredevelopmentandBPOhub

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TheemergenceofChennaiasanIThubandtheavailabilityofaqualityworkforcehaveenabled
thecityinparticularandthestateingeneraltoemergeasacentreforR&Dinthecountry.Thepresence
of a large number of engineering institutions, including IIT Chennai and Anna University have further
augmentedthestatesclaimasaprominentcentreforR&Dactivity.CompaniessuchasTemenos(world
leader in banking software) have invested to the tune of US$ 15 million in R&D facilities in the state.
Kone, the Finnish elevator giant is now sourcing all its software development from Chennai. Airbee
Wireless,aUSbasedsoftwarecompany,hasinvestedUS$1milliontosetupanR&DcentreinChennai.
Software majors such as Cognizant,TCS and Infosys have set up software development centres in
Chennai.BPOoutfitsforanumberofmultinationalssuchasABNAMRO,StandardCharteredandWorld
BanknowoperatefromChennai.ThecityalsohasthelargestmedicaltranscriptionfacilityinAsia.

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InvestmentoverseasbyTamilNadubasedcompanies

SundaramFasteners,thefirstISO9000certifiedsubsidiaryoftheTVSGrouphasinvestedUS$5
million approximately, and plans to invest up to US$ 12.5 million. Sundaram Fasteners is the first
companyintheIndianengineeringindustrytosetupamanufacturingunitinChina.Theinitialcapacity
oftheplantis6,000tonnesandthecompanyaimstogenerate25percentoftheexportrevenuesfrom
this plant. The company also plans tobuy the UKbased forging company Dana Spicer. Another group
company, the twowheeler manufacturer,TVS Motors , is planning to set up an unit in Indonesia.
strategy to gradually shift the export base from South Korea to India to capitalise on lower shipping
coststoEuropeandLatinAmericaandreducedeliverycycletimes.

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KeyPlayerstoEconomyinTamilNadu

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BharatHeavyElectricalsLtd(BHEL)

BharatHeavyElectricalsLtdisoneofthelargestengineeringandmanufacturingenterprisesin
the country and is ranked among the leading power manufacturers in the world. BHEL has 14
manufacturing plants and a number of service centres spread across the country and overseas. BHEL
offers a wide spectrum of products and services for various sectors such as power, transmission,
industry, transportation, oil & gas, telecommunications, nonconventional energy systems etc. One of
the foremost manufacturing facilities of BHEL is the Tiruchirappalli (also known as Trichy/Tiruchi)
Complex.Itcomprisesahighpressureboilerplant,seamlesssteeltubeplantandboilerauxiliariesplant.

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Caltex
Caltexcommencedoperationsinthecountryin1936throughajointventurebetweenChevron
CorporationandTexacoInc.ThecompanysmanufacturingandrefiningoperationsarethroughitsLPG
bottlingplantsatChennaiandMadurai,itsimportterminalwithrefrigeratedlinkatTuticorinanda51
percentstakeinCaltexSpicIndiaLtd.CaltexGasIndiaPvtLtdhasaturnoverofUS$43.5millionwith
investmentofUS$100millionapproximately,andhasanemployeestrengthof270.

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CaterpillarIndiaPvtLtd(CIPL)

Caterpillar Inc., USA is a global manufacturer of construction and mining equipment, diesel &
natural gas engines and industrial gas turbines, with 105 plants, spread across 21 countries with a
turnover of US$ 20.15 billion. Caterpillar India Pvt Ltd is a wholly owned subsidiary of Caterpillar Inc.,
formedaftertheacquisitionoftheEarthmovingEquipmentDivisionofHindustanMotorsin2001,foran
estimated US$ 71 million. The company manufactures construction and mining equipment. It has its
manufacturingfacilityinThiruvally,50kmfromChennai.

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ABNAMRO

ThebanksetupitsBPOdivision,theGlobalSupportCentre(GSC),inChennaiin2002.Atpresent,
GSCemploys275individuals,whohandleABNAMROstradeandcashmanagementtransactionsandis
planningtodoubletheheadcountto500.ThebanksBPOoperationshavebeenabletoachievegrowth
in cash lockbox (700 clients) and international netting (10 clients).The Dutchbased ABN AMRO Bank
proposestoinvestUS$1billioninIndiathroughselectiveacquisitions.

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AmalgamationsGroup

TheAmalgamationsGroupisoneofthecountryslargestlightengineeringconglomerateswith
34 plants, 12,500 employees and revenue of US$ 475 million. The group comprises 43 companies in
manufacturing, trading & distribution and services & plantations. The group is known for its well
equipped plants and worldclass technologies. The group has a major presence in diesel engines,
agriculturaltractors,autocomponents,batteries,cuttingtoolsandpaints.ThesubsidiariesincludeTAFE,
HigginbothamsPvtLtd,IndiaPistonsLtd,AmcoBatteriesLtd,amongothers.

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AshokLeyland

Ashok Leyland, a company under the Hinduja flagship, has a prominent presence in India's
commercialvehicleindustrywithareputationforreliabilityandruggedness.Theinnovationsmadeby
thecompanyhavegoneontobecomeindustrynorms.Itisthefirstautomobilecompanyinthecountry
towintheISO9002certificationin1993.At70millionpassengersaday,AshokLeylandbusescarrymore
people than the entire Indian rail network. The sales turnover of Ashok Leyland stood at US$ 811.1
millionin200304.

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MadrasRubberFactory:

MRF, is a major manufacturing company located in Chennai, India. MRF is mainly involved in
making vehicle tyres. It is India's largest tyre manufacturing company, and among the dozen largest
worldwide;itexportstomorethan75countries.Establishedin1946byK.M.MammenMappillai,the
companyhasgrowntobecomeaINR30billionenterprise.Itisalsoinvolvedinarangeofotheractivities
viasubsidiaries.FunskoolIndia,ajointventurebetweenHasbroandMRF,isamajortoymanufacturing
company in the country. MRF Pretreads offers world class precured tyre retreading service, and MRF
Muscleflexisinvolvedinmakingconveyorbelts.ItispresentlyundertheleadershipofVinooMammen,
sonofthelateK.M.MammenMappillai.

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SterliteIndustriesLtd
Sterlite Industries (India) Ltd (SIIL), is a leading producer of copper in India. Sterlite, a part of
Vedanta Resources, a London listed metals and mining major with Aluminium, Copper and Zinc
operations in India and Australia, continues to seek improvements in its business, having set
benchmarkstoLMEgradeAstandardsinCopperproductsmanufacturing.IthasaturnoverofRs12,351
crores
SouthernPetrochemicalIndustriesCorporationLtd

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SouthernPetrochemicalIndustriesCorporationLtd(SPIC),acompanywithinterestsinfertilizers,
pharmaceuticals, engineering services, industrial enzymes, and agri biotech, founded in 1975, it has
beenprovidingproductsandservicesthatfeednourishandprotectagricultureandruralecosystem.The
salesoftheyear2006crossedRs6.2billion.

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EIDuPontIndia(EIDI)

EI DuPont India is a subsidiary of EI DuPont de Nemours and Company, USA. It is engaged in


formulation and trading of crop protection products, engineering polymers, specialty fibres, specialty
chemicals and polymers. The company started its operations in 1994 with an investment of US$ 80
millionatMadurai.

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ElectronicDataSystems(EDS)

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Electronic Data Systems was formed as a 100 per cent subsidiary of EDS Corporation in
1996.WitharevenueofUS$21.8billion,EDSrankedseventyninthamongtheFortune500companiesin
2003. EDS has established its head office at Chennai and has three facilities in the state. It started its
softwaredevelopmentoperationsinTidelPark,anITparkdevelopedbytheStateGovernmentandis
oneofthelargestinthecountry.ThecompanyplanstoexpanditsBPOoperationstoChennai.

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FordMotorCompanyIndia

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Ford Motor Company India was established with an investment of US$ 351.1 million under
single window policy at Maraimalai Nagar, near Chennai in 1995. With a total workforce of 900, the
company is currently manufacturing three models with a number of variants and is one of the key
playersintheIndianautomotiveindustry.FordEndeavourcapturedover40percentoftheemerging
SUV market within six months of its launch. The company plans to export vehicles from the Chennai
planttovariousdestinations,owingtotheincentivesofferedbytheStateGovernment.TheFordIkonis
Indiaslargestexportedcarinthemidsizecarsegment.

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HyundaiMotorIndiaLtd
HyundaiMotorIndiaLimited(HMIL)isawhollyownedsubsidiaryofHyundaiMotorCompany,
SouthKoreaandisthesecondlargestandthefastestgrowingcarmanufacturerinIndia.HMILpresently
markets20variantsofpassengercarsinsixsegments.HyundaiMotorIndia,continuingitstraditionof
being the fastest growing passenger car manufacturer, registered total sales of 299,513 vehicles in
calendaryear(CY)2006,anincreaseof18.5percentoverCY2005.Inthedomesticmarketitclockeda
growth of 19.1 percent a compared to 2005, with 186,174 units, while overseas sales grew by 17.4
percent,withexportsof113,339units.

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HMILs fully integrated stateoftheart manufacturing plant near Chennai boasts some of the
mostadvancedproduction,qualityandtestingcapabilitiesinthecountry.HMILissettingupitssecond
plant, which will produce an additional 300,000 units per annum, raising HMILs total production
capacityto600,000unitsperannumbyendof2007.

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ChennaiPetroleumCorporationLtd(CPCL)
ChennaiPetroleumCorporationLtd,widelyknownasMadrasRefineriesLtd(MRL),isoneofthe
largestandmostintegratedrefineriesinsouthIndiaproducingfuelproducts,lubricantsandadditives.
ThecompanysprincipalactivityistooperaterefineriesatManaliandCauveryBasin.Ithasanemployee
strength of over 1,650 and recorded a total turnover of US$ 2,055 million in 200304 as against US$
1,782 million in the previous year, registering an increase of 10 per cent approximately. CPCL was
honouredwiththeGreenTechEnvironmentExcellenceAwardin200203forEnvironmentManagement
attheManalirefinery.

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CognizantTechnologySolutionsIndiaPvtLtd

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Cognizant Technology Solutions India Pvt Ltd, a subsidiary of Cognizant Technology Solutions
Corporation, is a leader in software development, integration and maintenance services that links e
businesswithcoreinformationsystemsforcompaniesworldwide.Thecompanystarteditsoperationsin
India at Chennai in 1994.With a workforce of over 2,700, Cognizant operates under a high quality
onsite/offshoremodelthatenablesbetter,fasterandmorecosteffectivedevelopmentanddeployment
oflargescalesystemsacrossawiderangeoftransactionintensivebusinessneeds.Thecompanyholds
SEICMMLevel5,ISO9001,PCMMLevel5certificationforitsperformanceandquality.

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ComputerAssociates(CA)

ComputerAssociatesisoneoftheleadingprovidersofITmanagementsolutionsandservices.
CAinIndiaisinvolvedinprovidingsoftwareproductsandserviceswith6officesinallthemajorcities
sinceitsinceptionin1997.ThecompanyrecordedatotalturnoverofUS$64millionapproximately,in
200304.ThecompanysetupitsGlobalTechnicalSupportCentreatChennaiin2000,whichisinvolvedin
providingtechnicalsupportitsglobalclientele.Thecentrecurrentlyoperateswithanemployeestrength
ofover200skilledprofessionals.

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LakshmiMachineWorks(LMW)

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Lakshmi Machine Works, established in 1962, is a leading manufacturer of textile machinery.


LMWhas60percentmarketshareinthedomestictextilespinningmachineryindustry.Ithasdiversified
into CNC Machine Tools and is a brand leader in manufacturing customised products. LMW Foundry
manufactures precision castings for industries, both domestic and global. The groups presence has
grownovertheyears,withamarketpresencenotonlyindevelopingcountriesbutalsoinEurope.Ithas
wontheTopExportAwardintextilemachineexportsforthepastsevenyears.

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MaduraCoatsLtd(MCL)

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MaduraCoatsLtd(MCL),asubsidiaryofCoatsViyellaPlc,UKisamarketleaderinsewingand
embroiderythreadwith50percentmarketshareintheorganisedsector.MCLsuppliesitsproductsto
clientssuchasClairborne,Lee,Levis,Gap,Nike,Adidas,TommyHilfiger,amongothers.Thecompanyhas
anemployeestrengthof13,700.Itoperatesthroughthreebusinessunits:CoatsIndia,MaduraTextiles
andIntrad.MCLisinvolvedinsourcingtextileproductsfromhandloomandsmallscalesectorsofIndia
forexportmarkets.

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MatsushitaElectric

Matsushita Electric is Japan's leading consumer electronic company with brands such as
Panasonic and National. The company has two of its production plants in Chennai, Indo Matsushita
Carbon Company Ltd which manufactures carbon rod for dry battery and Indo Matsushita Appliances

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CompanyLtd(IMACO)whichmanufacturesproductssuchasricecookerandmixergrinder.Bothplants
obtained ISO 14001 certification in 1998. The company has invested US$ 12 million approximately,
undersinglewindowpolicyoftheGovernmenttoexpanditsoperations.
MuruguppaGroup
Muruguppa is a diversified business group with interests in plantations, chemicals, financial
servicesandabrasives.Thegroupcomprises29StrategicBusinessUnits(SBUs)andisspreadacorss11
states in the country. It has a focused interest in the agriculture sector with business specifically in
fertilisers, pesticides and sugar. Some of the subsidiaries include Carborundum Universal Ltd,
CholamandalamInvestment&FinanceCoLtd,CoromandelFertilisersLtd,EIDParry(India)Ltd,Godavari
Fertilisers&ChemicalsLtd,ParryAgroIndustriesLtdandTubeInvestmentofIndiaLtd.Thegroupisa
pioneerintheIndianbicycleindustryandindevelopingneembasedapplications.Thecompanyisalsoa
leaderinceramicsanitaryproducts.

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NeyveliLigniteCorporation(NLC)

NeyveliLigniteCorporation,apublicsectorenterprise,wasestablishedin1956.Thecompanyis
involvedintheproductionoflignite,ureaandthegenerationofpower.Ithasthreeopencastminesand
threepitheadthermalpowergeneratingstations.NLCservesasanimportantsourceofenergyforstate
electricityboardsinthesouthernstates.Powergenerationaccountsfor90percentofthecompanys
revenues.

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OrchidChemicalsandPharmaceuticalsLtd

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OrchidChemicalsandPharmaceuticalsLtdspecialisesinthemanufactureofbulkcephalosporin
antibiotics.Thecompanyisthelargestproducerinthecountryandhasalsoestablisheditselfasaleader
in its production in the global market.. The company has a bulk drug facility at Alathur, which has a
manufacturingcapacityofover500tonnesoforalandsterilecephalosporins.Ithasdedicatedplantsfor
most of its products. It is setting up a US$ 10.3 million formulations facility at Irungattukottai. The
company recorded a turnover of US$ 147.3 million as compared to US$ 111.8 million million in the
previousyear.

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SanmarGroup

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The Sanmar Group, with its corporate headquarters at Chennai, has set the benchmark for
global partnerships in chlorochemicals, speciality chemicals, engineering and life insurance. The group
also has a presence in shipping and software. It has significant holdings across its businesses and is
managed by over 600 highly qualified managers. The group entered into its first international joint
ventureinthe1960swithBFGoodrich,USA,formingChemicalsandPlastics IndiaLtd.At present,its
turnoverstandsatUS$206.5millionapproximately,with25businessesandmanufacturingunitseach
spreadacrosstenlocationsinthecountry.

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ScopeInternational

Scope International, Chennai is a wholly owned subsidiary of Standard Chartered Bank, UK


operatinginsharedservicescentres.DespitebeingarelativelylateentrantintheBPObusiness,ithas
emergedasoneofthetopfivebackofficesinthecountryforinternationalcompanies.Thecompanyhas
adopted the Six Sigma quality methodology in the organisation to create a highly effective metrics
drivenperformanceculture.Scopehasgrowntoover3,000employeesinashortspanofoneyear.

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TVSGroup
TheTVSundaramIyengarGroup(TVSGroup),establishedin1911,hasaturnoverofoverUS$1
billion and is the largest manufacturer of automotive components in the country with a workforce of
over5,000.SomeofthemajorsubsidiariesincludeTVSMotors,BrakesIndia,LucasTVSLtd,Sundaram
FastenersandWheelsIndia.Thegroupproducesautoelectricals,dieselfuelinjectionsystems,braking
systems, automotive wheels, axle fasteners, powder metal components, radiator caps, two wheelers
andcomputerperipherals.Ithasthelargestdistributionnetworkforautomotive
products in the
country.Thegrouphasover29companiesunderitsumbrellaandholdsdiversebusinessinterests.The
subsidaries,TVSMotors,SundaramClaytonLtd(BrakesDivision)andSundaramBrakeLiningsLtdhave
baggedtheDemingAwardfortheirperformances.

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PremierInstruments&ControlsLtd(Pricol)

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Premier Instruments & Controls Ltd was established in 1974 at Coimbatore and commenced
manufacturing operations in 1975 in the precision engineering field of automotive instruments. At
present, it is a leader with 53 per cent share in the automotive instruments market. In 1997, exports
accounted for 12 per cent of the companys turnover with exports to USA, Canada, Mexico, South
America,Europe,Turkey,Egypt,theMiddleEast,Asia,AustraliaandNewZealand.PricoliscertifiedISO
9001 since 1993 and QS 9000 since 2001. It has initiated Total Quality Management (TQM),Total
ProductiveManufacturing(TPM),SupplyChainManagement(SCM),EnterpriseResourcePlanning(SAP
R3ERP)andCollaborativeProductCommerce(CPCWindchill).

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SaintGobainGlassIndia

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SaintGobainGlassIndiaisasubsidiaryofCompagniedeSaintGobain,Franceandisthesecond
largestproduceroflaminatedandtoughenedglass.WithaninitialinvestmentofUS$108.4million,the
company started operations at Sriperumbadur, near Chennai, in 2000.The company has a capacity of
650tonnesperdayofclear,tintedandreflectiveglass.Italsohasthesecondlargestmarketshareinthe
country.ThecompanywascertifiedISO9001in2000foritsQualitySystemandISO14001in1996forits
Environmental Management System. It produces the widest range of products, number of which are
manufacturedforthefirsttimeinIndia.Thecompanybeganexportswithin55daysofcommencement
ofproductionandalmosthalftheproductionwasbeingexportedby2000.Itplanstoexport30percent
ofitstotalproduction,shippingmorethan2,500containersperannumthroughtheChennaiport.

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Visteon

VisteonCorporation,USA,aFortune500company,isoneofthelargestautomotivesuppliersin
the world. It started its operations with two projects on a 50 acre facility at Maraimalai Nagar, near
Chennai, in 1999.The Chennai operations comprise Visteon Automotive Systems India Pvt Ltd (VASI),
manufacturing climate control systems, instrument clusters and a range of automotive plastics and
VisteonPowertrainControlSystemsIndiaPvtLtd(VPCSI),anexportorientedunit,manufacturingstarter
motorsandalternators.WithatotalinvestmentofoverUS$120millionundersinglewindowpolicyof
theGovernment,itcurrentlyhasaworkforceofover700.

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WorldBank

TheWorldBankcommenceditsBPOoperationsatChennaiin2001withaninitialworkforceof
80. At present, its employee strength stands at 180 and aims to expand its operations from basic
processing to valueadded work. The size of the commercial bonds portfolio is estimated at US$ 100
billionapproximately.WorldBankplanstooutsourceITworkworthUS$10milliontoitsChennaicentre
throughitsIndianpartners,SatyamComputers,HCLTechnologiesandMegaSoft.

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Xansa
Xansa is an international business process and IT services company creating and delivering
processandtechnologysolutions.Thecompanysservicesincludebusinessandtechnologyconsulting,
IT implementation, IT outsourcing and BPO. Xansa has recently commenced its BPO operations at
SIPCOTinChennai.TheChennaicampusspreadover27acres,hasthepotentialtohouseupto6,000
employees.ThecompanymadeaninitialinvestmentofoverUS$47millionundersinglewindowpolicy
oftheGovernment.

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SWOTAnalysis:
Strength:

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TheStatehasthetraditionalculturalaspectandeconomy.Itisgoodinitsinfrastructureandhas
theproperlawandorderregulation.

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TheGovernmentinitiativeinallfields
Naturalresources

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Selfsufficientintheneeds
Highmoneytransaction

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Taxationbenefitsforsmallscaleandexportindustries

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FDIGrowthzone

MajorcontributortoIndianEconomy.

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Aboveall,TamilNaduisIndiasmostadvancedtechnologicalsocietywithhighliteracyrate,the
worldclassinstitutions,largermiddleagegroupandhumanresourcewithanexcellentqualityoflife.

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Weakness:

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Asitisalwaysknownforwaterscarcity,itisamajorproblemconcernedtothestateandlackof
properutilizationofthereservoirs.

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AdaptingthepoliciesofGovernment
Lackofnetworkconnectivitytoruralareas

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FarfrommajordomesticmarketsofNorthIndia

Wastemanagementsystemandrecycling

Lackofentertainmentandrecreationfacility
LackofadministrationintheTourismIndustry
Improperstepsincontrollingthepovertylevel

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Opportunities:
The greatest opportunity is the export market of the state with the huge number SEZ
comingupwithbillionsofinvestmentfromFDI.
Thecompletionofsethusamudramprojectwouldshowaverydifferentscaleofscopeinthe
domesticandtheglobalmarket.

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Threats:

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Agriculturaldevelopmentsandproductionaregettingreduced.

Pollution level in the city of Chennai is becoming very high with the large number of two
wheelers.

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As International money transactions are high, there are increasing illegal activities in the
society.

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Environmental problems including deforestation, ecosystems and water bodies are a


concerntothefuture.

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Competition from neighbouring states like Andhra Pradesh, Karnataka, Maha Rasta in
particularlyinITandITeSsector

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StatePolicy

The state policy aims to facilitate the creation of foreign and local ventures through investor
friendly and transparent decisionmaking processes, harmonious industry relations and attractive
incentive packages. The state is keen to consolidate its existing manufacturing strength and tap the
businessopportunitiesemergingintheIT/ITESandbiotechsectors.

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Theobjectivesofthepolicyframeworkare:

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Toachieveagrowthrateof8percentduringtheTenthPlan(200207)
To encourage new manufacturing capacity based on improved competitiveness,
herebypromotingforeigndirectinvestmenttowardsthemanufacturingsector

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Toconsolidatetheexistingindustrialbaseandpromotetheirgrowth

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To increase focus on infrastructure construction by establishing strategic publicprivate


partnerships

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InfrastructurePolicy

The state has sought private participation in the infrastructure sector. An Infrastructure Fund
has been set up in order to facilitate publicprivate partnerships in this sector. The fund has been
endowed with an initial corpus of US$ 4.1 million and will finance a number of infrastructure
developmentinitiatives.

InvestmentClimate:
TamilNaduhasbeenabletoattractasignificantportionofthetotalFDIinflowinthecountry.
ThestaterecordedUS$281millionofFDIin2002,8.3percentofthetotalFDIinthecountry.Thestate

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has taken a number of measures to enhance its image as a favourable destination for investment.
Variousstepshavebeentakentoeaseentryofinvestorsinthestate.Someofthestepstakenare:
TailormadepackagesforinvestmentoverUS$62millioninfixedassets
Exemptiononentryandsalestaxonimportsofmanufacturingunits
Capital subsidies and exemption in Electricity Tax to companies investing in fixed assets.
Subsidiesincreasedto150percentfornewindustrialunitslocatedingovernmentindustrialparks
Incentivesforpatentregistrationthroughaonetimereimbursementfortheprocess

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Infrastructuresubsidy,particularlytoattractinvestmentinwatertreatment

TheGovernmentofTamilNaduhasestablishedsinglewindowsystemtoaccordallpreproject
clearancesatthestatelevel.Theinvestorismerelyrequiredtofileanapplicationtoaguidanceunit
that subsequently secures state approvals from various agencies. The single window system is two
tieredwith:

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State Level Investment PromotionBoard (SIPB) to monitor and expedite all mega projects
exceedinginvestmentofUS$20.5million

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Project Approvals Authority (PAA) to monitor the projects with investment less than US$
20.5million

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EGovernance

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ASpecialWorkingGroup(SWG)oneGovernance,underTamilNaduInformationTechnology
Council(TNITC)hasbeensetuptostreamlinegovernmentfunctioning.Transparencyistobesoughtby
linking government databases to public domains. Legislation has been introduced to make inter
operabilitybetweengovernmentsmandatory.

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Towardsuninterruptedpowersupply

Thestatehasoneofthelowestpowertariffsforindustrialanddomesticuse.Investmentinthe
power sector has been one of the highest among all states The state is targeting a 30 per cent
enhancement in its capacity by 2007 One of the few states to articulate a policy for nonrenewable
energygeneration

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ITPolicy

TheGovernmentofTamilNaduiskeentotaptheopportunitiesinIT/ITES.TamilNaduisoneof
thefirststatesinthecountrytobringoutanITESandBiotechPolicy.

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Anumberofmeasureshavebeenundertakentoattractinvestmentintheseareas:

DestinationofChoiceFundtohighlighttheadvantagesofinvestinginthesesectors

RelaxationoftheFloorSpaceIndexregulationforITparks
50percentexemptiononstampdutyandtheregistrationfeeforpurchaseofland/building
AschemeofcashperjobcreatedforITEScompanies

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BiotechPolicy
Biotechnology is also an emerging sector in the state. The Government has envisioned the
creationofBiotechnologyEnterpriseZones(BioValleyssimilartoSiliconValley).Thestateproposesto
forge alliances between industry and centres of research to enhance and consolidate existing
knowledge. It is setting up an Emerging Technology Fund, which would target biotech companies
withinandoutsidethepark.

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TamilNaduinGlobalFront:
ChennaiTradeCentre,ajewelforthenewgenerationtradeandbusiness

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TamilNaduhasbeenfastemergingasoneoftheprogressivestateintheindustrialmapofIndia.
Chennai, the capital city has seen a dramatic rise in international business operations and Trade
Promotion. Recently, the BTGallup Survey shows Chennai as the 2nd best destination in India for
BusinessEntrepreneurs.

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To meet the evergrowing needs of the international trade and business, the TAMIL NADU
TRADE PROMOTION ORGANISATION has been set up. It's a joint venture of India Trade Promotion
Organisation,Govt.ofIndiaandTamilNaduIndustrialDevelopmentCorporation(TIDCO),Govt.ofTamil
Nadu.

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TheChennaiTradeCentreissetupataprimelocationintheChennaimetroatNandambakkam,
over25acresoflandwithfourmodulesof4,400sq.metreseachofexhibitionhallsandsupportservices
to be built in a phased manner. The Trade Centre is architecturally and technically designed to be a
"stateoftheart" Exhibition Complex. The airconditioned halls have no pillars or columns, are thus
eminently suitable for multipurpose use of organising exhibitions, conferences, conventions and
conductingothertrade,commerceandindustryrelatedevents.

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TamilNadu'seconomicgrowthHarvardInstituteforInternationalDevelopment
WithworldwiderevenuesfromecommerceactivitiesputatastaggeringUSdollars3.2trillion,
theTamilNaduITindustry,'byintelligentlyleveragingitsinherentstrengths,cansecureadecentshare
ofthelucrativeInternetsoftwaremarketandeventuallyemergeasanecommerceleader'.Advertingto
the80millionstrongTamilspeakingpopulationworldwide,suchalargemarketprovideslocalITfirms
here(inTamilNadu)themajoradvantageofeconomiesofscale.

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HarvardstudyhaspredictedthatTamilNaduiswellpoisedtoemergeasthetopITStateinIndia
aswellasagatewaytoSEAsia.

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TamilNaduIndiassilentpowerhouse

Indias silent powerhouse, rated as one of the most attractive destinations for foreign direct
investment(FDI)inthecountry.RoleofthegovernmenthadputaddedresponsibilityontheStatesto
ensure facilitating economic environment to quicken the pace of implementation of projects since all
factormarketwereeitherintheState ListorintheConcurrentList.Oneimmediateeffectofreforms
wasthattheStateshadgotbackthemajorresponsibilityofindustrialdevelopment.
Since1995,TamilNaduhadgonefromproducingnocarstobeingtheproductionbaseofthree
toprankinginternationalautomobileproducersandalsobecomingoneoftheleadingcontendersinthe

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fieldofinformationtechnologyandsoftwaredevelopmentinthecountry,onthevergeofbecominga
regionalgatewaytoAsiainthefieldofinformationtechnologyandbecountedamongthetopranking
manufacturedgoodsexportersinIndiawithexportearningsexceedingUS$10billionperannumbythe
year2006.

TamilNadu..GlobalPlayer
TamilNaduisconsideredasadevelopedstateinIndia.Thestateachievedinclusivegrowthand
balanced economy. Tamil Nadus performance par with other states and better than the national
performance all sectors. Tamil nadu is creating industrial friendly atmosphere to attract investors. In
past three there is a substantial growth in Tamil Nadus economy and it is performing well in
manufacturingandservicesectors.TamilNaduisutiliingitsstrengthsanddevelopingnewstrategiesto
attracttheinvestors.TamilNaduisfacingseverecompetitionfromneighbouringstateslikeKarnataka
andAndhraPradesh.

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Developmentofanystateisdependonitsocialandeconomicgrowth.Ifweobservethesocial
factorslikeliteracyrate,LawandorderandHealthitsperformanceisverygood.Thesefactorsplayvital
roletocreateahealthyatmosphereforinvestments.

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Thesocialfactorsareclearlyshowingthatthestateisperforminginthesesectors.Toachieve
thisgrowthTamilNaduhastookproperactionsinearly1970.Theliteracyratein1971isjustabove30%
butnowitisliteracyrateismorethan72%.Thestatepovertyrateisalmost21%whichislesserthan5
percentagepointstotheaverageIndiaspovertyrate.Thestateeconomycanbepredictedbytheper
capitavalue.TamilNaduisrankingsecondinpercapitaincomewithanaverageannualincomeofRs
23358.

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TamilNadusperformanceinmanufacturingsectorisexceptionallygood.Thestateaccountfor
16%oftotalnooffactoriesinthecountry.ThestatecontributiontothenationalGDPintheyear2005
06is199550.45crores,registeringagrowthof8.5%.

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ThisgrowthhelpedTamilNaduattracttheMultinationalcompaniestoChennai.Inlastfiveyears
it attracted many global companies. Hyundai invested 900 million US $ in automobile sector, Ford
Motors started its operation in Chennai with $ 380 million, US based Heavy industrial and mining
equipmentcompanyCaterpillarinvestedUS$71million,UKbasedportsinfrastructurecompanyP&O
portsinvestedUS$190millionarestarteditsoperationsfromthisstate.Thesecompaniesarenotjust
investedmillionsofdollarsjustbecauseofTamilNadusinfrastructureofstatesindustrypolicies.Tamil
NaduisattractingITandITeScompaniesandstrengthenitspositioninglobalsoftwaremarket.Thesoft
ware MNCs like Dell and electronic industries like Nokia , Motorola , Sony Ericsson also started its
operationsfromTamilNadu.

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Thesecompaniesareexpectingbestresourcesintermsofhumanresources,geographiclocation
andmoreoveravailabilityofsuppliers.TamilNaduearlydecisionsindevelopinindustrysectorhelped
thestatetoattractthesecompanies.

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