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					                                                               Notwithstanding the current global slow-
         INDUSTRIES DEPARTMENT                          down, Tamil Nadu has been a fore-runner in
                                                        attracting large number of domestic and foreign
                   POLICY NOTE
                                                        investors. Tamil Nadu Government is investor
                      2010-2011                         friendly   and     transparent   in      decision-making.
                                                        Further, State Government has been quick in
                  INTRODUCTION
                                                        responding to investment proposals. It is no wonder
                                                        that Tamil Nadu is one of the major recipients of
       Tamil Nadu has been consolidating its
                                                        industrial investments in the country.
position as one of the leading Industrialized States
of India. The Government of Tamil Nadu has been
                                                               Abundant availability of skilled manpower,
instrumental in providing a pro-active and dynamic
                                                        conducive labour climate, excellent port logistics,
policy environment, which has enabled it to attract
                                                        communication facilities, availability of reliable
huge      investments      facilitating    employment
                                                        infrastructure and, above all, favourable investment
generation and raising the standard of living of
                                                        climate, stable political climate and pro-active
people in the State. The Government is constantly
                                                        Government support are the primary reasons for
working towards realizing the twin objective of
                                                        making Tamil Nadu, the home of manufacturing.
providing employment to the people through rapid
                                                        The    formation     of   the    State     Manufacturing
industrialization of the State and balanced growth
                                                        Competitiveness Council (SMCC) recently would
by dispersal of Industries to all parts of the State.
                                                        help in enhancing further the competitiveness of the
                                                        manufacturing sector.



                                                                                   2
      According to Department of Industrial Policy
and Promotion (DIPP), Ministry of Commerce and               Since May, 2006, Tamil Nadu has attracted
Industry, Government of India, during the period      investments    amounting       Rs.46,091      crores    in
August, 1991 to May, 2006, DIPP had approved          manufacturing sector that generated employment
6,273 investment proposals through IEM and            for about 2.21 lakh persons. Some of the major
Industrial licence routes with an investment of       projects attracted during 2009 are Toshiba – JSW
Rs.1,44,831 crores. As against this, during August,   Turbines & Boilers project (Rs.800 crores), Ford
1991 to January, 2010, the total number of            Expansion project (Rs.1,500 crores), Michelin Tyres
investment proposals approved by DIPP was 7,689       (Rs.4,000     crores),     Mahindra     &      Mahindra
with an investment of Rs.2,77,662 crores. During      Automobile    plant (Rs.1,800      crores),    Videocon
the last 3 years and 8 months period (June, 2006 to   Consumer Durables project (Rs.1,600 crores),
January, 2010) alone, this investment increased       J.K.Tyre (Rs.1,500 crores) etc. New projects with
steeply by 91.71%.                                    investment exceeding additional Rs.9,000 crores
                                                      are under various stages of finalization.
      According to the Centre for Monitoring Indian
economy (CMIE), at the end of June, 2006, the
                                                              All these have become possible due to the
cumulative total Investment in pipeline in Tamil
                                                      transparent   and   fast    decision-making      of    the
Nadu was Rs.1,91,791.98 crores; whereas, at the
                                                      Government. The State Government has passed a
end of March, 2010, it rose to Rs.6,66,855.74
                                                      legislation to create an empowered Single window
crores. Thus, according to CMIE, during the period
                                                      mechanism to accord speedy approvals, which will
July, 2006, to March, 2010, the total Investment in
                                                      be implemented after getting the requisite approval
pipeline in Tamil Nadu steeply rose by 3.48 times.


                         3                                                       4
of Government of India. All these have transformed              The Government is committed to spread the
Tamil Nadu as the most favoured investment               industrialization evenly throughout the State to
destination among Indian states.                         ensure that the fruits of industrialization in the form
                                                         of gainful employment generation and improvement
                                                         in standard of living reach the common man in
       Oxford    Analytica    is   an   international,
                                                         every village. The Government will pursue this goal
independent consulting firm drawing on a network
                                                         relentlessly to achieve the goal.       Towards this
of over 1,000 senior faculty members in Oxford and
                                                         objective, the Government introduced a special
other major universities around the world. It has
                                                         package for industrializing Southern Districts in
conducted a study called “India Reconstructed”. As
                                                         G.O. Ms. No.180, Industries (MIB1) Department,
part of this study, it compiled an index called “India
                                                         dated 30th September 2008.        As a result of this,
State index of attractive operating environments”.
                                                         Super Mega projects like Videocon Consumer
An extract of this report was also published by The
                                                         Durables project at Manamadurai (Rs.1,600 crores)
Hindu in its publication dated 27th May, 2009.
                                                         and Sundareshwarar Alloys and Steels Private
According to this, Tamil Nadu is the most
                                                         Limited   at   Madurai     and   Sivaganga    Districts
attractive State for foreign firms seeking to
                                                         (Rs.2,200 crores) have been attracted. ATC Tires
invest in India, thanks to its better quality
                                                         (Rs.400    crores)    at   Gangaikondan       SIPCOT
infrastructure and governance. This study analyzed
                                                         Industrial Park has also commissioned commercial
28 States and 2 Union Territories in India and
                                                         production on 1st December, 2009.
adjudged Tamil Nadu as the best.




                          5                                                         6
                                                                Tamil Nadu is now regarded by many as
       At present, Tamil Nadu is ranked Third            "The Happening Place". Tamil Nadu excels among
among Indian States in terms of number of Special        Indian States and the State has emerged as the
Economic      Zones      (SEZ)    approved   by   the    ‘Growth Star’ of India.         The Government is
Government of India. Government of India have            committed to implementing investor – friendly
accorded Formal Approvals to 69 SEZ, 20 In-              policies so that Tamil Nadu remains the ultimate
Principle Approvals and 57 SEZs have been                business destination of choice for investors from all
Notified. It is the Policy of the State Government not   over the world and the local industry remains
to resort to compulsory acquisition of land for          efficient and competitive in the globalizing world.
formation of Special economic Zones. The Private
Developers are advised to purchase land from land
owners by paying the prevailing market prices.
Even where the Government have to acquire the
land for formation of Industrial parks, wet lands are
avoided and a fair compensation is offered to land
owners. Also, the industrial projects to which lands
are subsequently allotted are asked to give priority
to local villagers in jobs.




                              7                                                    8
       TAMIL NADU INDUSTRIAL DEVELOPMENT
                         CORPORATION


           TIDCO, a Government of Tamil Nadu
    Enterprise, was incorporated as a Limited Company
    in the year 1965 with a view to identify and promote
    the establishment of large and medium scale
    industries within the State of Tamil Nadu in
    association with the private sector. The company’s
    authorized share capital is Rs.125 crores of which
    Rs.72 crores has been issued and has been entirely
    subscribed by the Government of Tamil Nadu.


           TIDCO’s projects cover a wide range of
    activities    such    as   Iron   &    Steel,     Fertilizers,
    Chemicals,           Petrochemicals,            Engineering,
    Automobiles, Agro and Food Processing, Leather,
    Textiles, Pharmaceuticals, Floriculture, Horticulture,
    Electronics     &     Communication,       Infrastructure/
    Industrial Parks including Agri Export Zones (AEZs)
    and Special Economic Zones (SEZs).



9                               10
        TIDCO’s portfolio of investments valued at         implement the Financial City and Media and
cost is Rs.330 crores, mostly in the form of equity        Entertainment Park projects.
investments in Joint Venture Companies and
                                                           Projects
investments made in ongoing projects.            TITAN
                                                           IT Corridor project
Industries, Tamil Nadu Petroproducts, TIDEL Park,
TICEL Biopark, Mahindra World City, Ascendas IT
                                                                 IT Corridor (now called Rajiv Gandhi Salai)
Park and IT Expressway are some of the better
                                                           Project    starts   from   Madhya     Kailash   Temple
known     examples     of     TIDCO’s   Industrial   and
                                                           Junction and terminates on East Coast Road near
Infrastructure initiatives.
                                                           Mamallapuram. This project is implemented in two
                                                           phases.      In Phase-I, 20.1 km stretch between
        TIDCO is also planning the development of
                                                           Madhya Kailash Temple Junction and Siruseri is
multi product SEZ at Ennore near Chennai, an
                                                           being improved and 2.1 km long ECR Link Road
Aerospace Park and a Free Trade Warehousing
                                                           connecting IT Corridor at Sholinganallur and East
Zone in Tiruvallur District. During the past 3 years
                                                           Coast Road has also been widened. This work is
through its efforts, TIDCO has revived the multi
                                                           being implemented by IT Expressway Limited
product Special Economic Zone at Nanguneri in
                                                           (ITEL). In Phase-II, the stretch between Siruseri and
Tirunelveli District by tieing up with a new private
                                                           Mamallapuram        will   be    improved.   The   main
sector partner M/s.AMRL Constructions along with
                                                           Carriageway work of Phase I of the project has
its Associates and is pursuing the expeditious
                                                           been completed and the Hon’ble Chief Minister of
implementation of this project at an estimated cost
                                                           Tamil Nadu dedicated the road for use by public on
of Rs.630 crores. TIDCO has also been requested
to take action on behalf of the Government to


                              11                                                       12
29.10.2008. Toll collection commenced from 15th                Biotechnology Park II for catering to the needs of
December, 2008.                                                Biotech Research & Development, (BSL 2 / BSL 3)
                                                               with a built up area of 6 lakh sq. feet at a project
        At present in phase I of the project, the works
                                                               cost of Rs.120 crores. The Hon’ble Deputy Chief
relating to CMWSSB, TNEB, Storm Water Drains,
                                                               Minister laid the Foundation Stone for this project
Culvert Extension etc. on the LHS (Eastern side)
                                                               on 26.08.2009. The Civil work was commenced at
have been completed.           The works on the RHS
                                                               the site in December, 2009 and the project is
(Western side) are in various stages of construction
                                                               scheduled for completion by December, 2011. The
and are expected to be completed by September,
                                                               Bio Tech Park II will create employment potential for
2010.    Re-tender for construction of service road
                                                               1,500 scientists.
and foot path on the LHS and RHS has been
finalized and awarded. It is expected that the work            I.T Park at Coimbatore
will be completed by the end of March, 2011. Land
                                                                       Encouraged by the success of TIDEL Park,
acquisition work for Phase II of the project from
                                                               Chennai, Government of Tamil Nadu announced in
Siruseri to Mamallapuram is under progress.
                                                               the Budget 2006-07 for construction of an IT Park at
Biotechnology Park II                                          Coimbatore for developing IT/ITES Industry in Tier
                                                               II cities.   Accordingly, an IT Park with built up area
        TICEL Bio Park Limited, a Joint Venture of
                                                               of 1.7 million sq.ft. is being constructed in IT SEZ,
TIDCO and TIDEL has established a state-of-the art
                                                               Coimbatore, by TIDEL Park Coimbatore Limited, a
Biotechnology       Park-I    at    Chennai,    which   has
                                                               Joint Venture of TIDCO, TIDEL, ELCOT and STPI.
achieved 100% occupancy. As announced in the
                                                               This I.T. Park is expected to be ready by May /
Budget     during     2007,        TICEL   is   constructing


                              13                                                          14
June, 2010 for commencement of operation and will              about 25 acres and also engage Consultants to
provide employment opportunities to 12,000 IT                  conduct necessary studies for formulating the
professionals.                                                 development of next Phase of the Financial City
                                                               project.   Tenders have been issued for engaging
Financial City
                                                               consultant   for   preparation    of   Comprehensive
                                                               Development Plan for the Financial City and Media
       The Government of Tamil Nadu in its budget
                                                               Entertainment Park.       Tenders for selection of
for the year 2009-10 announced the establishment
                                                               developer for the first Phase of the Financial City to
of a Financial City near Chennai.             TIDCO has
                                                               be developed on about 25 acres of land will be
prepared    a    broad    concept        paper    for    the
                                                               issued shortly.
development of the Financial City in consultation
with various stakeholders. About 187 acres of land
                                                               Aero Space Park
has    been      identified        in   Sholinganallur    –
Perumbakkam villages near Rajiv Gandhi Salai for                      The   Government        of Tamil Nadu      have
locating the Financial City (out of this about 25              announced the establishment of an Aero Space
acres of land would be utilized for establishing the           Park   project.     In   G.O.    Ms.   No.144,   dated
Media and Entertainment Park).                                 03.12.2009, the Government have issued Formal
                                                               Approval to Tamil Nadu Industrial Development
       The Government have issued orders in
                                                               Corporation to implement the project. The project
G.O.Ms.No.153, Industries (MIE.1) Department,
                                                               will provide specialized common infrastructure
dated 18.12.2009, for selection of a Developer of
                                                               facilities such as dedicated runway, manufacturing
repute with the required expertise to develop and
                                                               and testing facilities for Aircraft components, Aircraft
market the first facility on a smaller parcel of land of


                              15                                                         16
Maintenance Repair and Overhauling (MRO) units         opportunities for about 500 persons over a period of
and Flying Academy.           The project is to be     5 – 6 years.
implemented through public private partnership
model in three phases.                                         The company is procuring the lands on its
                                                       own through private negotiations. The Phase I of
JAFZA Chennai Business Park near Ennore Port
                                                       the project area is about 132 acres, which includes
in Tiruvallur District
                                                       about 9.53 acres of Temple Lands and 1.50 acres
                                                       of Government Poramboke lands. The company
      Jafza Chennai Business Park (India) Private
                                                       has procured about 110 acres of patta lands and
Limited is a company formed by Dubai based
                                                       executed sale agreement for the balance of about
Economic Zones World, which is a part of Dubai
                                                       21 acres, which is likely to be completed by May,
World Group, the leading Global Operator and
                                                       2010.    Based   on   the    request,   TIDCO   has
developer of Economic Zones, Logistics and
                                                       recommended to respective authorities to consider
Industrial Parks. It is proposed to establish a Free
                                                       transfer of the above Temple and Government
Trade Warehousing Zone / Business Park / Logistic
                                                       poramboke lands. Upon receipt of orders from
Complex in an area of about 337 acres of land in
                                                       appropriate authorities, the Temple and Poramboke
Ponneri Taluk near Ennore Port in Tiruvallur
                                                       lands would be taken possession on outright
District. The Government of India granted Formal
                                                       purchase basis in order to make the above area
Approval to this project in October, 2007. The
                                                       contiguous and to implement the Project.
estimated cost to develop this project is Rs.441
crores and this project will generate employment




                         17                                                    18
Shipyard-cum-Minor port Complex in Tiruvallur                     Government granted approval to TIDCO to
District
                                                            implement this project on 23rd January, 2008. The
       TIDCO is establishing a Ship Yard cum Minor          Joint Venture Agreement between TIDCO and L&T
Port Complex in association with Larsen and Toubro          was signed on 15.04.2008. Total investment for this
Limited (L & T) in Kattupalli village, Ponneri Taluk of     project has been estimated at Rs.4,675 crores.
Tiruvallur District through a Joint Venture company,
                                                                  The project is to be implemented in two
viz., L&T Shipbuilding Limited. This proposal is for
                                                            phases;   Phase    I   (2009-11)   will   require    an
developing a global shipbuilding yard and a minor
                                                            investment of about Rs.3,375 crores. The project
port complex, which will include manufacturing units
                                                            achieved financial closure in October, 2009.        The
and facilities for the following:
                                                            Phase I of the project will be commissioned in 2011.
           •   Building very large cargo carriers;
                                                                  The construction works has commenced at
               specialized cargo ships for liquid/gas
                                                            site. When completed, this shipyard complex will be
               transportation and cruise vessels;
                                                            the largest in Asia.    It will generate direct and
           •   Building of Defense ships including
                                                            indirect employment for about 10,000 persons.
               Submarines;
           •   Off-shore platforms for oil/gas sectors;     Petroleum Refinery Project of Nagarjuna Oil
           •   Refitting    and     re-engineering     of   Corporation Limited
               commercial and defense ships;
                                                                  Nagarjuna Oil Corporation Limited (NOCL), a
           •   Heavy engineering fabrication and
                                                            Joint Venture of TIDCO is implementing the 6 million
               components       production   for     ship
                                                            tonnes per annum (mtpa) capacity Petroleum
               building.


                           19                                                        20
Refinery Project at Tiruchopuram in Cuddalore                       Thiruchopuram port, the captive port of the
Taluk at a total investment of about Rs.6,960 crores.       refinery project, will be developed as an all weather
                                                            deep sea port to handle the crude oil, petroleum
        The process plant work of this project was
                                                            fuel, coal for Tamil Nadu Electricity Board and other
inaugurated by the Hon’ble Chief Minister on 2nd
                                                            cargo. This port will serve Cuddalore, Villupuram,
July, 2008. The construction work at the site is in
                                                            Thiruvannamalai,      Salem,       Nammakkal,              Karur,
progress. The project will be commissioned by the
                                                            Perambalur     and     Ariyalur        Districts     for     the
end of 2011.        Employment generation during the
                                                            development of industry and trade.
construction period will be for about 5,000 persons
which will go upto 10,000, when the refinery goes
                                                            IT-ITES SEZ at Taramani
into full operation.
                                                                    The proposal is to develop a state-of-the-art
        NOCL’s refinery when it goes on stream will
                                                            IT/ITES SEZ with about 4.00 million sq.ft. built up
be the second petroleum refinery in the State and
                                                            space    on   26.64   acres       of    land       located    in
will make the State self sufficient in petroleum fuels.
                                                            Thiruvanmiyur village of Mylapore-Triplicane Taluk
NOCL has also commenced preliminary engineering
                                                            in Chennai District and        Kottivakkam Village of
work for expanding its refining capacity to 15 million
                                                            Tambaram Taluk in Kancheepuram District with all
tonnes per annum (mtpa) and for establishing down
                                                            supporting infrastructure.     M/s.DLF Limited have
stream Petrochemical units with an additional
                                                            been selected as the Joint Venture Partner for
investment     of      about    Rs.7,000   crores.   This
                                                            development of this project. The estimated cost of
expansion and other projects will be completed by
                                                            the project is Rs.1,500 crores.
2015.



                               21                                                     22
       Project implementation has been delayed         IT&ITES and commercial activities to the extent of
due to contiguity issue raised by the Board of         about 2.1 million sq.ft., an Integrated International
Approval because of overhead MRTS railway line         Convention Centre to seat 1,500 delegates along
passing over this project site. In order to sort out   with 100 Service Apartments. The consortium led
the issue, 40 cents of lands under the overhead        by M/s.TATA Reality & Infrastructure Limited has
MRTS railway line have been alienated in favour of     been selected as the Joint Venture Partner for
TIDCO.     This land has been offered to DLF to        developing   this   project.   The   project   cost   is
provide the required contiguity so that necessary      estimated to Rs.3,000 crores. The SEZ has been
approval    can be obtained by the Joint Venture       notified by the Board of Approval on 23.01.2009.
company      and    construction    activities   can
commence.                                                     A total of 4 million sq.ft will be built, out of
                                                       which 2.1 million sq.ft will be for IT/ ITES.     1.25
IT-ITES SEZ with Integrated           International    million sq.ft. built up area under processing zone is
Convention Centre at Taramani
                                                       expected to be completed by December, 2011.
                                                       Construction of remaining I.T. space as well as
      The proposal is to develop a state-of-the-art
                                                       Service Apartments and Convention Centre will also
IT-ITES SEZ with an Integrated International
                                                       be taken up during this period. Entire project will be
Convention Centre on 25.27 acres of land located in
                                                       completed by May, 2012.
Kanagam village of Mambalam – Guindy Taluk and
Thiruvanmiyur village of Mylapore – Triplicane
Taluk in Chennai District. The project will have
state-of-the-art facilities with built up space for



                        23                                                       24
Perambalur SEZ Project                                           4.     Preparation        of     master     plan   is
                                                                        underway;
       TIDCO is setting up a multiproduct SEZ in                 5.     Environmental           Impact   Assessment
Perambalur District in association with M/s. GVK                        study.
Group of Hyderabad. A special purpose vehicle
                                                                 The site development work is expected to
(SPV), a Joint Venture company, viz., GVK
                                                           commence within three months. The estimated
Perambalur      SEZ    Private   Limited    has     been
                                                           investment for creating common infrastructures
incorporated to implement this project.
                                                           such as Water Supply, Roads, CETP, Power supply
                                                           etc. is around Rs.827 crores.
       The SPV company has completed the land
procurement of around 2,880 acres of patta land
                                                           Nanguneri SEZ in Tirunelveli District
through private negotiations. Ministry of Commerce
& Industries, Government of India have given formal
                                                                 Government      of    India       granted    Formal
approval for this SEZ.       The company is in the
                                                           Approval Notification for implementing this multi
process of getting notification for this SEZ.
                                                           product SEZ in November, 2008. After completion
                                                           of EIA report, public hearing was conducted on
        The company has completed the following
                                                           13.10.2009 and Environmental clearance from the
project activities:
                                                           Government of India is awaited.
       1.      The topographical survey of the site;
       2.      Soil investigation;
       3.      Preparation of feasibility report;


                           25                                                         26
      The developer is developing the common            implemented at Kattandikuppam in Panruti Taluk of
infrastructure facilities for Phase I area and taking   Cuddalore District.      The Phase I of the project
active steps for marketing the space to set up units    includes the Raw Cashewnut Processing, Common
within SEZ. The Investors Meet were conducted on        Processing and Pack House (CPPH). Construction
02.02.2010 at Tuticorin and on 15.03.2010 at            of 20,500 sq.ft. of CPPH and 5,940 sq.ft. of Raw
Madurai.                                                Cashewnut Processing unit has been completed. A
                                                        part of machineries and equipments has been
Agri Export Zone for Cashew                             installed in the CPPH and the balance machines
                                                        are to be installed. The company has commenced
      An MoU was signed between APEDA,                  its commercial operation for Cashewnut Processing.
Government of India and Agriculture Department,         The Phase I of the project is expected to be
Government of Tamil Nadu, for setting up an Agri        completed by July, 2010.
Export Zone for Cashew at Cuddalore District
covering   Cuddalore,     Thanjavur,    Perambalur,     Petroleum,     Chemicals          and   Petrochemicals
Pudukottai and Sivaganga Districts. TIDCO Board         Investment Region
approved the proposal for implementing the AEZ
Cashew project in associate sector in association             As     per   the   policy    announced   by   the
with Tvl. S. Santhanam & Associates as co-              Government of India for establishing Petroleum
promoter at a project cost of Rs.16.54 crores and       Chemicals and Petrochemicals Investment Regions
TIDCO’s investment of Rs.49 lakhs as equity in the      (PCPIR), Government of Tamil Nadu has forwarded
project. The promoters agreement was signed on          a proposal for setting up a PCPIR in Cuddalore and
26.02.2007.   The Phase I of the project is being       Nagapattinam Districts and a concept note on


                         27                                                        28
development of a PCPIR in the Ramanathapuram                     STATE INDUSTRIES PROMOTION
District to Government of India. A detailed proposal              CORPORATION OF TAMIL NADU
for establishing PCPIR in the Ramanathapuram
                                                                SIPCOT, which was started in the year 1971
District will be prepared by TIDCO. Tender has
                                                         with a vision to play a catalystic role in promotion of
been floated for selection of consultant for preparing
                                                         industries in Tamil Nadu, especially in the backward
the detailed proposal.
                                                         regions, has succeeded in stupendous way in
                                                         achieving its mission.      Although it functioned both
                                                         as an agency to promote big industrial parks and as
                                                         a prime lending institution for a long time, from the
                                                         year   2000     its   activities   were   confined   to
                                                         development of industrial parks as per the decision
                                                         of the Government of Tamil Nadu to give more
                                                         impetus to this activity.


                                                                Due to pragmatic approach and clear cut
                                                         policies of Government, SIPCOT has attracted
                                                         several big industrial houses of both multinational
                                                         and domestic, viz., Hyundai, Saint Gobain, Ford,
                                                         Mitsubishi, Renault-Nissan, Motorola, Samsung,
                                                         Nokia etc. and Tatas, Birlas, SPIC, J.K.Group,
                                                         Ashok Leyland etc. and these corporate giants have


                         29                                                          30
set up their facility at various industrial parks of         employment opportunity to about 3.00 lakh persons.
SIPCOT. The advent of big industrial houses into             It can be seen from the above that around 43 % of
Tamil Nadu had transformed those regions both                the total allotment has been made in the last four
geographically     and    economically         and    even   years. Similarly, the lands acquired and the lands
backward towns like Hosur, Sriperumpudur have                under acquisition during this period together comes
turned into industrial clusters and the people in and        around 11,500 acres, while the total extent acquired
around these areas are now reaping the fruits of             since its inception (1971) and till 2006 is around
development.         Above      all,    the    widespread    22,400 acres.      This apart, the proposals initiated
industrialization has created huge direct and indirect       during this period seeking administrative sanction of
employment opportunity to the youth in Tamil Nadu.           the Government to acquire about 15,000 acres of
                                                             land for creation of a Land Bank to keep adequate
Physical Achievements
                                                             land readily available to meet the immediate
Development of Industrial Complexes / Parks
                                                             requirement of the needy investors            are under
                                                             various stages of process. This proposed Land
       SIPCOT has so far developed as many as 19
                                                             Bank is developed by acquiring dry and barren
Industrial Complexes in different parts of the State
                                                             lands by carefully avoiding cultivable lands.         62
and allotted an extent of 16,975 acres of developed
                                                             acres of land which had remained unallotted for a
land to 1,882 units paving way for direct and indirect
                                                             long   time   in    SIPCOT      Pudukkottai    Industrial
employment       opportunity    for    about   4.15   lakh
                                                             Complex have been allotted in full during this
persons. During the last four years alone, SIPCOT
                                                             period.
has allotted 7,381 acres of developed plots to as
many as 470 units paving way for direct and indirect


                           31                                                           32
      During the last four years, the Government of           respectively for setting up their projects in this
Tamil Nadu have signed MoU with 25 leading                    complex as per the MoU entered between the
companies for setting up their facility in the State          Companies and the Government.
with huge outlay of about Rs.38,400 crores creating
                                                              Mappedu Industrial Complex
direct and indirect employment opportunities to 1.77
lakh persons and 18 of them are located in the
                                                                    During the same period, one more Industrial
Industrial Complexes of SIPCOT covering a total
                                                              Complex has been established in Thiruvallur District
extent of about 2,870 acres. Eight industries have
                                                              at Mappedu with 125.17 acres of Government
already commenced production while the remaining
                                                              poramboke land and the entire extent has been
10   industries    are   under       various   stages   for
                                                              allotted to Chennai Port Trust for setting up an
commencement.
                                                              Integrated Dry Port and Multi Model Logistics Hub
                                                              with an investment of Rs.260.50 crores and with an
Thervoy Kandigai Industrial Complex
                                                              employment potential to 700 persons.

      During 2009, a new Industrial Complex with                    In    SIPCOT      Industrial    Complex      at
1,127 acres of Government poramboke land                      Manamadurai, one of the most backward regions,
alienated in favour of SIPCOT has been established            71.27 acres of land has been allotted recently to
at   Thervoy      Kandigai,        Gummidipoondi   Taluk,     M/s.Unity Appliances Limited, a group company of
Thiruvallur District. Recently, SIPCOT has issued             Videocon for manufacturing colour television set
in-principle allotment orders for an extent of 290            and   electronic   consumer      durables   with   an
and 110 acres of land to M/s. Michelin India Tamil            investment of Rs.1,600 crores.
Nadu Tyres Private Limited and Harsha Group


                              33                                                      34
On going Land Acquisition Schemes                      process of developing a new Industrial Complex
                                                       (1,478 acres) in Thirumangalam Taluk, Madurai
      Following the administrative sanctions issued    District and acquisition of land for this complexes is
by the Government, acquisition of lands is in          in progress.    Setting up of one more Industrial
progress in respect of the schemes, viz., Tuticorin    Complex     (1,533      acres)   in    Tuticorin   District
Phase II (1,022 acres), Cheyyar Expanion (2,300        Ottapidaram Taluk is also in process now.                A
acres), Sriperumpudur Expansion (1,780 acres),         Special incentive package has been announced by
Oragadam Expansion II (616 acres) and Madurai          the Government for the speedy industrialization of
Industrial Park (1,478 acres) and that lands around    southern districts.
7,200 acres would be acquired in the next six
months for allotment to the needy entrepreneurs.       Special Economic Zones

Industrialization of Southern Districts
                                                              Earlier, SIPCOT was dealing only with
                                                       development of Industrial Complexes / Parks to
      SIPCOT is keen in setting up of its Industrial
                                                       facilitate industrialization. But in the last four years,
Complexes all over the State, particularly in the
                                                       taking hold of the opportunities created by good
industrially backward southern Districts to maintain
                                                       industrial climate and farsighted vision of the
uniform industrial development.     It has already
                                                       Government,     SIPCOT       has      entered   into   new
established Industrial Complexes in some of the
                                                       ventures by launching several need based schemes
southern Districts, viz., Thoothukudi, Tirunelveli
                                                       and the Special Economic Zones set up by SIPCOT
(Gangaikondan), Dindigul (Nilakkottai), Pudukottai
                                                       is notable one.       In order to attract foreign direct
and Sivagangai (Manamadurai).      It is now in the
                                                       investments,    to     promote exports and massive


                        35                                                         36
employment opportunity, SIPCOT has actively
                                                        Financial Achievements
promoted six Sector Specific Special Economic
Zones in its Industrial Complexes / Parks each for a
                                                               Compared      to    the   previous     years’
specific sector, viz., Hi-Tech SEZ, Sriperumpudur
                                                        achievements, SIPCOT has shown consistently
(570.92 acres), Hi-Tech SEZ, Oragadam (347.66
                                                        good financial performance in the last four years as
acres),   Engineering   Sector     SEZ,   Perundurai
                                                        seen hereunder and has also declared dividend in
(263.19 acres), Transport Engineering Goods SEZ,
                                                        all these years:
Gangaikondan      (255.00    acres),   Footwear   and
Leather Product SEZ, Irungattukottai (153.68 acres)
and Sector Specific SEZ for Engineering, Ranipet
(260.00 acres).    Besides, SIPCOT has obtained
formal approval from Ministry of Industry &
Commerce for establishment of Auto ancillary SEZ
(255.00 acres) at Cheyyar and it has also obtained
Formal Approval for establishment of SEZ for
granite processing industries in an area of 379.96
acres in SIPCOT Burgur Industrial Growth Centre.
So far, about 1,063 acres of land have been allotted
in these SEZs to 48 industrial units with an
investment proposal of about Rs.30,000 crores and
direct and indirect employment opportunity have
been created to 1.77 lakh persons.


                            37                                                    38
                                      Financial Achievements
                                                                                   (Rs. in crores)


                                                                                                       2009-10
               2001-02     2002-03      2003-04    2004-05 2005-06    2006-07   2007-08    2008-09
                                                                                                     (Provisional)
Total             34.75       39.07       56.11     106.64   169.15   329.90      364.94    351.86        363.85
Income
Net Profit /     (11.76)      (29.15)       0.57      2.97    23.18    56.69       96.54     90.38         93.11
(Loss)
Dividend
declared                                                        10        20         25        25             25
(in %)
Dividend                                                       5.79    11.58       14.48     14.48         14.48
Amount




                                                    39
Industrial Corridor of Excellence                          allotment in its Industrial Complexes are required to
                                                           reserve 10% of the direct employment for the family
       SIPCOT has taken up the study for the
                                                           members of the landowners, subject to their
preparation of Corridor Development Plans to
                                                           suitability. This apart, pursuant to the Government
develop      Chennai-Sriperumpudur-Ranipet-Hosur,
                                                           announcement, SIPCOT has been taking effective
Madurai-Thoothukudi, Coimbatore–Salem regions
                                                           steps to provide employment to atleast one person
as   Industrial    Corridors    of   Excellence,   where
                                                           from the families, who have given land of one acre
Industrial Parks, Special Economic Zones, IT Parks
                                                           and above for its Industrial Complexes developed
and Integrated Township would be created with all
                                                           after 2006 in the industries being established in
infrastructure facilities of international standard and
                                                           those Complexes. The enumeration work to identify
connected to Airports, Sea Ports through Express
                                                           the youths in those families has since been
Highways and Railway lines.          The preparation of
                                                           completed and further action is being pursued in the
Corridor Development Plans separately for each
                                                           matter. Further, to upgrade the skill of the youth,
region is in progress now.           The draft plan for
                                                           SIPCOT has been taking action to create three Skill
Chennai-Sriperumpudur-Ranipet, 1st Phase, is in
                                                           Development     Centres,     one   at   Gangaikondan
the final stage.
                                                           Industrial Growth Centre, Tirunelveli District, the
                                                           second at Thervoykandigai Industrial Complex,
Skill Development Centres
                                                           Tiruvallur District, and the third at Oragadam
       SIPCOT has been focusing on generating              Industrial Growth Centre, Kancheepuram District.
more employment opportunities and has, hence,              The youth trained in these Skill Development
striving to establish more employment intensive            Centres would be recommended for employment
units in its Industrial Complexes. The units given         depending on their skill.


                           40                                                          41
Social Infrastructure facilities                            Sriperumbudur SIPCOT Industrial Park and the
                                                            construction will be taken up shortly.
       While acquiring lands for its Industrial
Complexes, SIPCOT is also concentrating on
                                                            Attracting Foreign Investment from MNCs
implementation of social infrastructure facilities in
and around the acquisition site to benefit the local               SIPCOT has proposed to allot 100 acres of
people by providing houses to the displaced                 land each for setting up of separate Industrial Parks
families, sanitation to village hamlets, constructing       for investors from countries like Japan, Korea,
new school buildings /          renovating the existing     Finland, Germany and France to attract more
schools, establishing health centres, burial ground,        foreign investments from them. Acquisition of lands
fodder cultivation scheme, sports development               for the proposal in Sriperumpudur Expansion
activities, water facilities etc.,     At present, such     Scheme is in progress now.
facilities are being provided in the Industrial
Complexes, Oragadam (Expansion) and Thervoy                 Water Augmentation Project
Kandigai.
                                                                   A novel scheme to convert secondary treated
                                                            sewage through TT-RO process for the usage of
       Further, SIPCOT has been taking action to
                                                            industrial    units    located      at   Oragadam,
construct two dormitories with all amenities one at
                                                            Sriperumpudur and Irungattukottai Industrial Parks
Sriperumpudur and the other at Tiruppur, each to
                                                            is to be executed through a private operator.
accommodate 1,000 workers both women and men.
SIPCOT      has     identified       suitable   site   at
Nerupperichal,     Tiruppur      and    other   one    at


                           42                                                         43
Comprehensive Plan for the Development of                       M/s.IWMA to carry out the Environment Impact
Sriperumpudur Area                                              Assessment (EIA) study.


        Pursuant to the Government announcement,                Nodal Agency Function
SIPCOT is preparing a comprehensive plan to
upgrade the basic and social infrastructure and                        SIPCOT also acts as a nodal agency of the
provide modern housing facility for the employees               Government of Tamil Nadu in the sanction /
and the general public residing in and around                   disbursement of Structured Package of Assistance
Sriperumpudur. The consultant has since submitted               to large industrial units. Various incentives like Soft
the inception report.                                           Loan, Investment Promotion Subsidy, Input VAT
Environment Protection                                          Refund,    Capital    Subsidy,     ETP     /   Critical
        As per the directions of the Supreme Court              Infrastructure Subsidy and Training Subsidy are
Monitoring        Committee,         Hazardous       Waste      considered based on the Government Orders. So
Treatment,        Storage      and        Disposal   Facility   far, around 48 Government Orders have been
(HWTSDF) is implemented in an extent of 26.91                   issued under Structured Package of Assistance.
acres at SIPCOT Export Promotion Industrial Park,               SIPCOT has so far released Rs.259 crores to four
Gummidipoondi out of 66 acres earmarked by                      units and other requests are under process.
Industrial Waste Management Association (IWMA)
through Tamil Nadu Waste Management Limited.
SIPCOT has also earmarked 50 acres of land for
this   facility   at   its   Industrial    Growth    Centre,
Perundurai, and has accorded permission to


                              44                                                          45
    TAMIL NADU INDUSTRIAL INVESTMENT                        generation    entrepreneurs.     In    addition,   TIIC
               CORPORATION LIMITED                          facilitates release of eligible subsidies offered by the
                                                            State and Central Governments to the beneficiaries.
Activities                                                  During the current year, TIIC has drawn and
                                                            disbursed Rs.18.00 crores from MSME Department,
       Tamil       Nadu         Industrial   Investment     Government of India under Credit Linked Capital
Corporation Limited is the pioneer among State              Subsidy (CLCS) scheme, which is one of the
Financial Corporations in the country.         Since its    highest in the country.
inception    in   1949,   it    has   been   contributing
                                                                   TIIC has so far assisted 1,04,946 units with a
significantly towards the industrial development of
                                                            cumulative sanction of Rs.7,672.47 crores upto
Tamil Nadu. The main objective of TIIC is to foster
                                                            31.03.2010.    The total employment generated by
industrial growth by providing long term financial
                                                            the units assisted by the Corporation during the
assistance to Industries for purchase of land,
                                                            year 2009-10 alone is around 15,000.
construction of building, purchase and erection of
machinery etc. TIIC also offers loan assistance for
                                                                   TIIC has registered a net profit for the
service sector projects such as hotels, hospitals and
                                                            seventh consecutive year. For the year 2009-10,
tourism related projects. TIIC provides assistance
                                                            the net profit has been Rs.40.10 crores, which has
to the Micro, Small & Medium Enterprises (MSME)
                                                            been the highest in recent years and registered a
sector and acts as a catalyst for industrial promotion
                                                            growth of 36.58% compared to 2008-09.
in the State by creating a new generation of
entrepreneurs. About 90% of the assistance goes to                 The loan portfolio of the Corporation as on
MSME sector. Of this, about 40% goes to first               31.03.2010 is Rs.1,196 crores and the long term


                               46                                                     47
objective of TIIC is to increase the same to
                                                           Comparative statement on the operational
Rs.5,000 crores.
                                                           performance of the Corporation for the past four
                                                           years from 2006 to 2010:
       TIIC is also providing training to budding
                                                                                                  (Rs. in crores)
entrepreneurs      by       conducting      Entrepreneur
Development Programmes. During the year 2009-
                                                             YEAR     SANCTION    DISBURSEMENT COLLECTION
10, nearly 1059 participants have benefited from            2006-07     457.03           321.33         369.78
these programmes.                                           2007-08     488.79*          377.28         378.14
                                                            2008-09     538.37           416.22         380.84
                                                           2009-10
       Though Commercial Banks are also offering           achieved     667.83           569.66         493.12
assistance to Industries, TIIC continues to be the          (Prov.)

preferred     institution     for   first     generation          * excludes one time sanction made to co-
entrepreneurs and people from rural backgrounds            operative sugar mills of Rs.150.00 crores as per the
and with little social support.                            direction of the Government of Tamil Nadu.


                                                           Some of the important schemes operated by
                                                           TIIC
                                                              1. Micro / Small Enterprises Fund Scheme;
                                                              2. Bill Financing Scheme for TNEB, TWAD,
                                                                  TANSI;
                                                              3. Working Capital Term Loan for Rice Mill
                                                                  Units as well as manufacturing units;


                            48                                                      49
   4. Wind Power Projects;                                 person of some social standing and not have come
   5. Liquidity Stimulus Package for MSMEs;                to adverse notice of the financial institutions and
   6. Technology Upgradation Fund (TUF)                    other authorities. During the current year, 2,000 first
       Scheme for Textile Industry;                        generation entrepreneurs are likely to be assisted
   7. Equipment Finance Scheme;                            under this programme.           Depending upon our
   8. Transport Operators Scheme.                          experience with the programme more beneficiaries
                                                           may also be assisted.
“Grow an Entrepreneur” Programme
                                                           Insurance
       As a part of its commitment to social
                                                                  During the year 2009-10, TIIC has been
obligations and in order to help new generation of
                                                           appointed as Corporate Agent by the Oriental
entrepreneurs, TIIC has introduced a “Grow an
                                                           Insurance Company Limited for General Insurance
Entrepreneur” Scheme aimed at promoting a new
                                                           business for TIIC's clients and others to augment
generation     of     entrepreneurs    especially   from
                                                           Corporation's income and to provide single window
economically          and     social     disadvantaged
                                                           service for its clients.   TIIC is likely to earn around
backgrounds, who are unable to offer required
                                                           Rs.1 crore, which will keep increasing in the
collateral security.    Under the scheme, a loan of
                                                           ensuing years and add to the profits of the
upto Rs.5.00 lakhs is given without collateral
                                                           Corporation directly.
security and with a promoter's contribution of 15%.
The entrepreneur must be supported by a mentor,
who    will   guide    him   through    the   successful
completion of the project. The mentor should be a



                             50                                                       51
52




53
    TAMIL NADU NEWSPRINT AND PAPERS                   Production and Capacity Utilisation
                      LIMITED
                                                            The company has achieved a production of
                                                      2,45,008   Mts   from   01.04.09    to   31.03.2010,
       In the year 1979, Government of Tamil Nadu
                                                      recording a Capacity Utilisation of 100%.
established Tamil Nadu Newsprint and Papers
Limited as a public limited company under the
                                                      Profit for 2009-10
Companies Act, 1956.     Commencing production in
                                                            The estimated profit before tax for the year
1984, with the support of Government of Tamil
                                                      2009-10 is Rs.155 crores.
Nadu, the company has made rapid strides and has
emerged as the largest paper mill in India at a
                                                      Initiatives taken in 2009-10
single location.   With the on-going expansion plan
to increase paper production capacity from the           Mill Expansion Plan (MEP) being implemented
present 2.45 lakh tons to 4 lakh tons per annum,         at a capital outlay of Rs.1,000 crores to increase
TNPL is poised to become a Rs.2000 crores                paper production capacity from 2,45,000 Mts per
company by 2011-12.                                      annum to 4,00,000 Mts per annum and the in-
                                                         house pulp production capacity from 720 Mts
Mission                                                  per day to 880 Mts per day.              Substantial
                                                         progress has been made in MEP. The additional
       TNPL is “To emerge as the market leader in
                                                         capacity will be available from August, 2010.
the manufacture of world class eco-friendly papers
adopting innovative technologies for sustainable         Pulp wood plantations through farm forestry and
development”.                                            captive plantation schemes have been raised in



                         54                                                    55
   11,379 acres during the year 2009-10 benefiting          implementation presently and completed by
   1,773 farmers taking the total acreage under             December, 2011.
   plantation to 51,220 acres upto 31.03.2010.              TNPL has drawn plans to revamp the steam
   TNPL has successfully introduced several new             and power generation system at a capital
   products like Commander (a 70 GSM copier),               outlay of Rs.135 crores. Under the scheme,
   Perfect (an 85 GSM copier), Ace Marvel and               two old TG sets of a total capacity of 18 MW
   Ace Marvel + (products for printing segment),            will be replaced with a new high efficiency TG
   etc. during the last one year to meet the market         of 40 MW to meet additional requirement of
   demands.                                                 power. The project will be completed by
Actions proposed for the year 2010-11                       December, 2011.
    Under Lime Sludge Management Plan, TNPL                 The pulpwood plantation would be extended in
    has taken steps for setting up a 500 tpd                another 15,000 acres during the year 2010-11.
    cement plant to convert some of the waste
                                                       Welfare of the community
    materials   generated    in   the   process   of
    manufacture of paper into high grade cement              The company is fully aware of its Corporate
    at a capital outlay Rs.63 crores. The project      Social Responsibility (CSR) towards the local
    will be taken up for implementation during         community.    The company has spent about 2.60
    presently and completed by September, 2011.        crores during the year 2009-10 on various social
    TNPL would install a 300 tpd state-of-the-art      welfare activities, mainly in the nearby villages. An
    De-inking Plant (DIP) to increase in-house         amount of Rs.3 crores has been earmarked for the
    pulp capacity at capital outlay of Rs.174          year 2010-11.
    crores. The project will be taken up for


                        56                                                      57
58   59
      TAMIL NADU CEMENTS CORPORATION                                Cement manufacturers in Tamil Nadu have
                        LIMITED                             doubled their production capacity from 14.56 million
        India is one of the largest cement producers        tonnes to 28.68 million tonnes per annum which is
and ranked second in the world with an annual               the highest capacity addition in the country during
production     capacity    of   181     million   tonnes.   the last 3 years.
Substantial technological improvements have been
                                                                   Tamil Nadu Cements Corporation Limited
brought about and, today, the industry can be
                                                            (TANCEM) is one among the major cement
legitimately proud of its state-of-the-art technology
                                                            producers in Tamil Nadu operating two cement
incorporated in most of its cement plants. The
                                                            units, one at Ariyalur and another at Alangualm.
industry has achieved spectacular results in terms
                                                            Asbestos Cement Sheet Plant at Alangulam and
of    energy    conservation      and     environmental
                                                            Stoneware Pipe Unit at Vridhachalam are the other
improvement.
                                                            units of TANCEM.

      The construction industry in Tamil Nadu is
                                                                   Tamil Nadu is the first State in India which
growing at a tremendous pace annually, driven by
                                                            started the Cement Units under the Public Sector
growing investments in the infrastructure sector.
                                                            Undertaking. Alangulam Cement Plant was started
Demand for cement is more in the State of Tamil
                                                            in 1969 as the first Public Sector cement plant.
Nadu in view of the increased construction activities
and    infrastructure     developmental      works    by           TANCEM is producing cement and its allied
consuming 11.5 million tonnes of cement.           Tamil    products with an annual gross turnover of about
Nadu stands first in the country indicating the             Rs.325 crores. TANCEM has been entrusted with
sustained growth of the State.                              the responsibility of exploiting limestone from


                           60                                                        61
various mines on behalf of Government of Tamil          Vision:   To serve the public interest by supplying
Nadu for the manufacture and supply of cement,          the products to Government Departments at
primarily to meet the requirement of various            reasonable price for creating infrastructure, rural
Government Departments such as DRDAs, TNEB,             housing and providing sustainable employment
Forest Department, etc. at the rates fixed by           opportunities in economically backward areas.
Government of Tamil Nadu.
                                                        Mission
      Apart from this, TANCEM also plays a vital
role in finalizing the tender for the procurement of          To implement Total Quality Management to
cement from the private manufacturers for Rural               attain process optimization and customer
Development and Tsunami Relief programmes and                 satisfaction;
co-ordinating the cement supply to various DRDAs              To institute a Management Model through
for timely implementation of the developmental                ISO Standards for excellence;
programmes such as Indra Niwaaz Yozana, Total                 To be a brand leader in World Class cement;
Sanitation     Programme,        Samathuvapuram,              To implement technically advanced and
Namakku      Name   Thittam,   Rural   Infrastructure         highly integrated ERP (Enterprise Resource
Scheme, MLACDS, MPLAD, PMGSY, etc.                            Planning) Solution;
                                                              To achieve financial stability by minimizing
      TANCEM is marching ahead serving the
                                                              cost of production;
State with assured quantity and supply of High
                                                              To achieve enhanced productivity to offer
Grade Cement with the following vision:
                                                              cement at affordable price.




                        62                                                      63
Cement    Technology                   for     sustainable       manufacturers, consumers and researchers in
development
                                                                 association with private manufacturers.
     Since cement industry is one of the major
                                                                        A critical challenge for Cement sector is the
energy intensive sectors, depletion of energy
                                                                 lack   of     available   basic         data     for    cement
resources and rising cost of energy has compelled
                                                                 manufacturers. Once available, this information can
the industry to develop and upgrade the modern
                                                                 serve as the basis for the development of
techniques and methodologies on a continuous
                                                                 benchmarks, inform decision-making processes and
basis. Cement Industry contributes over 8% of the
                                                                 lead   to    increases    in      efficiency     among     the
carbon emission. Consequently, the aggregate
                                                                 manufacturers. Based on the results of this effort,
amount of carbon dioxide (CO2) emitted from the
                                                                 Cement       manufacturers     will     work     to    develop
global cement industry has reached about 2.2 billion
                                                                 performance      indicators       and     benchmarks       for
tons. Energy accounts for about 40% of the cost of
                                                                 evaluating     emission   reduction        potentials.    The
cement          production.          Energy         efficiency
                                                                 National Seminar organized by TANCEM provided
improvements, therefore, have great potential to
                                                                 a good platform to share the best practices in each
reduce costs, while dramatically reducing the
                                                                 cement industry in Tamil Nadu.
majority   of     pollutants       generated    from      fuel
combustion.
                                                                 Alangulam Cement Plant
                                                                        Though      the    Alangulam            Cement    Plant
      Keeping this in mind, TANCEM organized a
                                                                 employs obsolete wet process technology, it
National Seminar on “Recent Trends in Cement
                                                                 performed very well during 2009-10. Alangulam
Technology for Sustainable Development” during
                                                                 Cement Unit produced an additional quantum of
January,      2010,     by         inviting   the     leading


                              64                                                              65
70,610 MTs with the increase of 49% over the                from the existing 600 MTs of clinker/day to 1200
previous year’s production of 1,43,895 MTs thanks           MTs of clinker/day. The cement production will be
to   the   formation     of    Quality   Circles   (TQM).   enhanced from 2 lakh MTs per annum to 4 lakh
Alangulam Cement Plant achieved 2.14 lakh MTs               MTs which will meet the requirement of the
(101%) against the production target of 2.12 lakh           Government Departments and the plant could be
MTs after a gap of 23 years and earned a net profit         operated for a period of 20 years.
of Rs.73.55 lakh against the loss of Rs.511.20 lakh
                                                            Ariyalur Cement Plant
incurred during 2008-09. The plant achieved the
                                                                  During 2009-10, Ariyalur Unit performed well
rated clinker output of 600 TPD continuously after
                                                            producing an additional quantum of 1,49,936 MTs
40 years with the single stream.
                                                            with the increase of 42% over the previous year’s
Modernization of Alangulam Cement Plant                     production of 3,60,289 MTs. Ariyalur Unit achieved
       As announced in the Budget speech 2008-              102% production of 5.10 lakh MTs (102%) against
09, Government has accorded approval for the                the target of 5.00 lakh MTs. The Unit earned a net
revised proposal for modernization of Alangulam             profit of Rs.3004.53 lakh during 2009-10 against the
Plant at an estimated cost of Rs.115 crore from wet         profit of Rs.1589.41 lakh earned in 2008-09.
process to dry process. Mines development work
                                                            Asbestos Sheet UNIT
will also be taken up at an estimated cost of Rs.50
                                                                  During    2009-10,      Asbestos   Sheet   Unit
crore. The major components are the conversion of
                                                            performed exceedingly well producing an additional
Wet to Dry process, installation of Stacker cum
                                                            quantum of 5,140 MTs with the increase of 26%
Reclaimer, New Kiln, Raw Mill, Cement Mill and 33
                                                            over the previous year‘s production of 19,873 MTs.
KV Sub-Station.        This will enhance the capacity


                              66                                                     67
Asbestos Sheet Unit achieved 100% production              •   Reduced the Power consumption by 4.4%;
target of 25,013 MTs. The higher cost of Asbestos         •   Reduced the fuel consumption by 12.7%;
fibre increased the cost of production.      Asbestos     •   Avoided kiln stoppages by purchasing e-auction
Sheet Unit achieved a net profit of Rs.23.44 lakh             coal;
during 2009-10.                                           •   Achieved the highest profit (Rs.26.08 crore)
                                                              since inception;
Stoneware Pipe unit
                                                          •   Obtained approval       from   Government   for
       During     2009-10,    Stoneware     Pipe   Unit       modernization of Alangulam Cement Plant at a
performed well producing an additional quantum of             revised Project cost of Rs.115.19 crore;
1,517 MTs with the increase of 46% over the               •   Standardized the Vendors for procuring quality
previous   year‘s    production    of     3,283    MTs.       materials resulting in higher productivity and
Stoneware Pipe Unit achieved 100% against the                 reduced down time;
production target of 4,800 MTs and achieved a             •   Formed 22 Quality Circles for higher motivation
profit of Rs 34.96 lakh during 2009-10 as against             and better performance;
the loss of Rs.0.44 lakh incurred during 2008-09.
                                                          •   Developed plantations in mining areas as a
                                                              green cover.
Achievements During 2009-10
Tancem as a whole
                                                          Ariyalur Cement Unit
•   Achieved 100% Production target in all the four
    units of TANCEM;                                      •   Achieved the lowest power consumption of 21
•   Increased the Cement Production by 44%;                   units per tonne in raw meal ground in Ariyalur
•   Reduced the Cost of Production by 11%;                    Unit since inception.


                         68                                                           69
Alangulam Cement Unit

•   Achieved the rated clinker output of 600 TPD
    continuously after 40 years with single kiln;
•   Earned a net profit of (Rs.73.55 lakh) after a
    continuous loss for the last 23 years;
•   Converted the EB commercial tariff to Domestic
    tariff for residential quarters pending for more
    than 30 years resulting in a saving of Rs.12 lakh
    per annum;
•   Reopened HSL mines after a gap of 12 years to
    improve the quality of clinker.
Stoneware Pipe Unit

•   Achieved 100% production target for the first
    time and production increase by 46% over the
    previous year;
•   Achieved profit (Rs.34.96 lakh) as against the
    loss of Rs.0.44 lakh incurred during the previous
    year;
•   Introduced pet coke instead of firewood to
    achieve quality, enhanced production and clean
    environment.


                          70
  Physical & Financial Performance 2009-10 (Provisional)

Name of the       Installed Budgetted   Actual       % Utilization of   Net Prifit
   Unit           Capacity Production Production                         / loss
                    (MT)      (MT)       (MT)                            Rs. in
                                                                         lakhs
                                                   Installed Budgeted
                                                   capacity capacity

Ariyalur          500000    500000      510225     102.00      102.00    3004.53
Cement Unit
Alangulam         290000    212000      214505      74.00      101.00       73.55
Cement Unit
Asbestos           28500     25000      25013       88.00      100.00       23.44
Sheet Unit,
Alangulam
Stoneware          7200      4800        4800       66.67      100.00       34.96
Pipe Factory,
Vridhachalam


                                        71




Corporate            --        -             -        -           -        320.84
Office
(Trading)
Tamilnadu            --        -             -        -           -        -20.33
Asbestos
(Pipes)
Mayanur
(Under
closure)
Total                                                                    3436.99
Prior period                                                              -828.53
adjustment of
both the
cement units
(ST on
frieght)
     Net Profit                                                          2608.46




                                        72
Proposed Measures for 2010 -11                         Environmental Management

Productivity Enhancement                               •   Cooler ESPs (Electro Static Percipitators) will be
                                                           installed at Ariyalur Cement Unit at an estimated
    Steps will be taken to increase the production
                                                           cost of Rs.7.5 crore to arrest the fugitive
    capacity of Ariyalur Cement Unit by 10% from
                                                           emission from clinker cooler;
    the installed capacity of 5 lakh MTs to 5.5 lakh
    MTs per annum;
                                                       •   Six numbers of online stack emission monitors

    A study will be undertaken for the expansion of        will be installed at Ariyalur Cement Unit at a cost

    Ariyalur Cement Unit from the existing 5 lakh          of Rs.33 lakh to monitor pollution level;

    MTs to 15 lakh MTs per annum;
                                                       •   Plantations will be developed over an extent of

    To have frequent interaction with team members         600 acres of land at Ariyalur and Alangulam

    of Quality Circles, Video conferencing system          mining areas in association with Tamil Nadu

    will be introduced in all four Units of TANCEM.        News Print and Paper Limited (TNPL);


Energy Conservation                                    •   A   study     will   be        undertaken      for   the

•   Waste heat recovery system will be installed at        implementation       of         Clean    Development

    Ariyalur Unit at an estimated cost of Rs.25 lakh       Mechanism      (CDM)       to     cut   down     carbon

    to utilize the waste heat released from the            emissions and capture the commercial potential;

    cooler.




                         73                                                          74
•   A study will be undertaken to implement Clean
    Coal Technology at Ariyalur Cement Unit to
    capture the carbon dioxide from the flue gas and
    improve the calorific value of the coal;


•   In view of depletion of natural fossil fuels, a
    study on usage of alternative fuels like scraped
    tyres, waste oil and sludges will be carried out;


•   As a part of developing renewable energy
    sources, a study will be taken up in the land at
    Koolanaickenpatti in Coimbatore District and
    Pudupalayam      in   Tirupur    District   for   the
    installation of Wind Mills;


•   To improve to the working effiency of the
    officers, staff and workers, Human Resources
    Development, training         programmes will be
    organized.




                           75                               76
77
       TAMIL NADU MINERALS LIMITED                     I. Progress of new Projects


      TAMIN, a Government of Tamil Nadu                a. TAMIN Granites Cutting & Polishing Unit at
undertaking company established during April 1978,     Melur 100% EOU
has completed more than three decades in the
mineral development. The main purpose of the                    TAMIN has proposed to set up of a new
organization is to exploit, process and marketing of   Granite Cutting and Polishing Unit to produce
granite raw blocks, granite products, major minerals   bigger size 2 cm / 3 cm thick building slabs as
and mineral based products.                            100% EOU at Melur in the land area of 50.76 acres
                                                       belonging to defunct Madurai Co-operative Spinning
      TAMIN is excavating Black and Colour             Mills.
Granites,   Limestone,   Graphite,   Silica   Sand,
Vermiculite, Quartz, Feldspar. It manufactures value            The project cost is estimated for Rs.34.25
added products like Polished Granite Slabs, Granite    crores to produce 3 cm thick slabs of 1,80,000/-
monuments, Granite kitchen items, Granite Tiles,       sq.mt. per annum with 3 numbers of Imported
Graphite Flakes, Exfoliated Vermiculite, Indian        Gangsaws and one Line Polisher machinery. The
Standard Sand etc.                                     projected sales turnover will be Rs.60 crores per
                                                       annum.      Techno-economic feasibility report was
                                                       placed before the project investment committee and
                                                       the same was approved. TAMIN has placed orders
                                                       for purchase of process machinery. The project is
                                                       expected to be completed by March, 2011.


                         78                                                     79
b. Graphite down Stream Projects                                     TAMIN has proposed to encourage the
                                                              prospective investors, who come forward to start
         The    Graphite    Beneficiation       Plant    at   industry at Sivagangai to produce value added
Sivaganga has been established in the year 1994 at            products from the graphite concentrate. Action is
a total cost of Rs.28 crores with a production                being initiated to call for an Expression of Interest
capacity of 28 MT of beneficiated graphite ranging            from the prospective investors for setting up of
from 84% FC to 96% F.C. by processing 200 MT of               factories for producing value added products from
Graphite ore per day and producing around 6,500               Graphite Concentrates.
MT of Graphite concentrates per annum. Graphite
is an important industrial mineral, which finds uses          II. Projects likely to be taken in the near future
in   metallurgical,    chemical      and       engineering    a. Lignite and Coal Bed Methane
industries.
                                                                     During   the   demand     of   the   Industries
         TAMIN is selling the beneficiated Graphite to        Department, the Government made announcement
its customers for the past 15 years. The flaky and            on 13.07.2009 on exploitation of Lignite and Coal
fine variety of Graphite produced by TAMIN is                 Bed Methane by TAMIN. Action is being taken for
ideally suitable for manufacture of many products             calling Expression of Interest to finalize a Technical
such as, Refractory Bricks, Crucibles, Pencils,               consultant to do a project feasibility study, resource
Carbon     Brushes,    Electrodes,    Friction    Brakes/     availability and methods to extract (UCG / Other
Clutch     Linings,   Lubricants,    Paints,     Batteries,   Methods).
Packings / Gaskets.



                           80                                                          81
b. Umbrella Memorandum of Understanding
with Geological Survey of India                        Best Model Quarry Award


      TAMIN proposes to enter into an Umbrella               TAMIN was honoured for the best quarry
MOU for exploration and exploitation of minerals in    maintenance at STONA 2010 FAIR held at
Tamil Nadu with GSI like Iron Ore, Platinum,           Bangalore from 4th to 7th February, 2010 by the
Molybdenum and Graphite.        The draft umbrella     Federation of Indian Mineral Industries (FIMI).
MOU document is prepared and awaiting GSI’s
approval.


III. Awards

Mines Safety Awards


      TAMIN has been awarded 35 First prizes
and 22 Second prizes during the year 2009 for
various aspects including overall performance in
safety in mining operations among the quarries and
mines in Tamil Nadu by the Tamil Nadu and Kerala
Mines Safety Association in the Chennai Region
consisting of the following Zones: Chennai, Salem-I,
Salem-II, Tiruchy and Tirunelveli.



                         82                                                     83
       TAMIL NADU MAGNESITE LIMITED                   Plan of Action for the year 2010-11


       TAMIL    NADU     MAGNESITE          LIMITED          The production and sales targets for the year
(TANMAG) was established in January, 1979. The        2010-11, are as follows:
company processes the Magnesite excavated from
the mines and produces Dead Burnt Magnesite and
                                                                                      Production    Sales
Lightly Calcined Magnesite.
                                                                                         (Metric Tonnes)

Sales Performance of the company                      Raw Magnesite                     1,31,000   1,31,000

                                                      Dead Burnt Magnesite                35,000     35,000
       The Sales Performance of the company for       Lightly Calcined
the four years from 2006-07 to 2009-10 is as                                              17,000     17,000
                                                      Magnesite
follows:



             Year              Sales Value
                              (Rs. in crores)         For 2009-10, TANMAG is expected to make a profit

           2006-07                42.80               of Rs.1,927.88 lakhs (unaudited). For 2010-11 also

           2007-08                49.64               the profitability is expected to be at the same level.

           2008-09                57.08
           2009-10                78.90




                        84                                                       85
    TAMIL NADU INDUSTRIAL EXPLOSIVES                       possession, sale and use of Nitroglycerine (NG)
                        LIMITED                            based Explosives suddenly in January, 2004 and
                                                           this ban on NG explosives has caused considerable
        Tamil Nadu Industrial Explosives Limited           adverse impact on the company’s performance and
(TEL) was established as a subsidiary of TIDCO in          the company started incurring losses from 2003-04
February,     1983    and   commenced       commercial     onwards.
production during 1986 for the manufacture of Nitro
Glycerine (NG) based explosives. Subsequently                      During the year 2009-10 TEL, has achieved
Detonator, Detonating Fuse units have been                 a turnover of Rs.4026.31 lakhs as against a
established    in    1989   for   the   manufacture   of   turnover of Rs.4262.95 lakhs during the previous
Detonators and Detonating Fuses. Later on Slurry           year. Its net loss during 2009-10 has come down to
and Emulsion Explosives units were started in the          Rs.427.98   (tentative)   lakhs   as   compared   to
year 1991 and 2004 respectively.          The factory is   Rs.808.92 lakhs during the previous year.
located in Vandaranthangal Village near Katpadi in
Vellore District over an extent of 750 acres of forest
land.    The total number of Employees in this
company as on date is 554.


        The financial position of the company was
stable upto the year 2002-03 and in this period NG
Explosives contributed 70% of total turnover.
However Government of India prohibited the


                            86                                                       87
       TAMIL NADU SALT CORPORATION LIMITED


              Tamil Nadu Salt Corporation Limited was
     established in 1974 and manufactures Industrial
     Grade Salt from its inception. This Corporation has
     got 5,524 acres of leased lands from Government of
     Tamil Nadu at Mariyur Valinokkam Salt Complex,
     Valinokkam, Ramnad District.              This Corporation
     has expanded its activity over the period of time into
     production of Iodised Salt and Double Fortified Salt
     (DFS), which contains Iron and Iodine. The
     Corporation has so far developed 3,210 acres of
     leased     lands.       There are 835         numbers of
     crystallisers in 275 acres for producing about
     1,75,000       tonnes   of   salt   per    annum.     The
     Corporation employs directly and indirectly about
     1,119 local labourers for salt production and related
     activities support the employment of another 150
     persons approximately.


              The     Corporation        has    obtained   ISO
     9001:2008 certificate for Quality Management


88                                89
System for processing and supply of Industrial              of Directors, SM and PM while preparing the
Grade and Fortified Salt Products. The Corporation          Detailed Project Report (DPR).           The Detailed
is supplying Double Fortified Salt (contains Iron and       Project Report (DPR) was submitted by the
Iodine) to all school going children under PT MGR           Consultant on 12.02.2010 with capital outlay of
Scheme in order to reduce Iron and Iodine                   Rs.12.50     crores   and   necessary    proposal    for
deficiencies in this vulnerable category. TNSC is           implementation of this Project shall be submitted for
also distributing adequately Iodised Salt matching to       approval through Project Investment Committee.
PFA Act with BIS Standards of IS 7224:2006                  While on completion of developing the entire area of
through PDS at an affordable cost to eliminate              5,500 acre, TNSC will produce about 4 lakh tonnes
Iodine Deficiency Disorders among the common                salt   per   year     and   will   generate   additional
people.                                                     employment of around 1,000 people in this area.
      TNSC has proposed to develop in the
remaining undeveloped area of 2,200 acres at its
works in Valinokkam, Ramanathapuram District, as
announced by the Hon’ble Deputy Chief Minister in
the floor of Assembly during July, 2009.        The DPR
preparation work was awarded to M/s.Aptech
Engineers, Ahmedabad, through open tender and
they prepared and submitted preliminary Project
Report    on   28.08.2009.    After   receipt    of   the
Preliminary Project Report, the Consultant was
directed to incorporate the views of the CMD, Board


                         90                                                             91
  Production of Industrial Grade Salt, Iodized Arasu Salt and Double Fortified Salt from 2001-
  02 to 2008-09 including purchase
                                                                                                (In tonnes)

 Product
               2001-02      2002-03    2003-04     2004-05     2005-06     2006-07      2007-08       2008-09
 Category
Industrial Grade Salt
Production         91280    146435      120192      133431      132908      139692       129805         81630
Sales          117129       103534       96303      149563       94163       93738       123884         80424
Iodised Arasu Salt
Production /
                   13446      25666      29792       43964       43947       57645         47337        25404
Purchase
Sales              13238      25862      30753       42829       42610       56075         46755        24360
Double Fortified Salt

Production              0       275        560           560         617         940           2757      2465
Sales                   0       275        535           574         607         921           2762      2434




                                                    92




  TNSC has been earning profit from 1990-91. Payments made to the Government by
  TNSC for operations from 2001-02 to 2008-09 is at Rs.1,052.79 lakhs. The financial
  performance in the last eight years is given below:
                                                                      All figures are in Rs.lakhs
                                                      Earnings to Government of Tamil Nadu
                      Sales           Net Profit
        Year                                                      Lease       Addl.
                     Turnover         After Tax       Dividend                            Total
                                                                   Rent      Royalty
      2001-02             987.24           27.95            3.17    7.46      164.30      174.93
      2002-03             996.68           21.22            3.17    7.46      161.08      171.71
      2003-04             934.81           44.68            3.17    7.50       48.08       58.75
      2004-05            1298.10           83.59           10.30    7.47          Nil      17.77
      2005-06            1311.76          114.14           12.68    7.43          Nil      20.11
      2006-07            1760.68           83.27           12.68    7.43          Nil      20.11
      2007-08            2137.30           65.91           12.68    7.43      292.06      312.17
      2008-09            1686.12          121.85           12.68    7.43      257.13      277.24
      2009-10
       (Upto             1766.55          134.96                 -           -             -             -
     31.03.10)
    (Tenta-tive)                                                                       Total      1052.79




                                                    93
                                                          supply to Industry and for establishing new Chlor
       Mechanization of raking and scraping of salt       Alkali Industries.   This will also enable TNSC to
are   physically   arduous     occupations   that   are   establish an unit for manufacture of Refined Free
mechanized on an experimental basis during the            Flow Iodised Salt for supply at competitive prices in
year 2008-09 and continues during 2009-10 also.           Tamil Nadu and to the Southern States through
Mechanization will mitigate the difficult working         Public Distribution System.
conditions that can cause long-term health hazards
to workers engaged in these jobs. This measure will
also assist the Corporation in combating labour
scarcity and will also raise labour productivity.
TNSC has ventured this with an initial investment of
Rs.20 lakhs on trial basis.


       TNSC is implementing the projects under
“Corporate Social Responsibility” for the benefit of
nearby villages, wherever salt workers reside.


       The    Corporation      has   requested      the
Government to allot 13,200 acres of lands in
Vedaranyam Taluk of Nagapattinam District found
to be potential for salt production. This acquisition
will enable TNSC to expand its production for


                          94                                                       95
Achievements in terms of production and sales for the year 2009-10 with reference
to target fixed are compared with actuals for the year2008-09 as follows:
                                                                          (In tonnes)
 Sl.              Product              Actuals            2009-10            Budget
 No.                                   2008-09    Annual target Tentative   Estimate
                                                   (Revised)                2010-11
   I.    Industrial Grade Salt
         a. Production                  81630          160000     160920       173000
         b. Sales                       80423          117600      97236       160000
  II.    Iodised Salt
         a. Production/purchase
         i. Production from
              Valinokkam                20521            26300     22939        31200
         ii. Purchase from
              societies/others           1441              700       138         4800
         iii. RFFIDS purchase            3441             2700      3042         4000
                               Total    25403            29700     26119        40000
         b. Sales                       24390            28890     25234        39600
  III.   Double Fortified Salt
         a. Production                    2465            2600      2620         4200
         b. Sales                         2432            2570      2554         4200


                                             96
  TAMIL NADU INDUSTRIAL GUIDANCE AND
           EXPORT PROMOTION BUREAU


      Tamil Nadu Industrial Guidance and Export
Promotion Bureau (shortly called as Guidance
Bureau) was constituted by Government in January,
1992 with the objective of “attracting major new
investment proposals” into Tamil Nadu.


The primary objectives of Guidance Bureau are:


      1.      To attract major industrial projects into
              Tamil Nadu;
      2.      To function as nodal agency for Single
              Window facilitation for major industrial
              projects.


      During the period April, 2009, to till date,
Guidance Bureau handled the following 20 major
investment proposals with a total investment of
Rs.16,373.36 crores:



                          97
Sl.          Name of the project                            Products                    Investment
No                                                                                        (Rs. in
                                                                                          crores)
 1    Ford India Expansion projects          Cars                                          1500
 2    Michelin Tyres                         Tyres                                        4000
 3    J K Tyres                              Tyre project                                 1600
 4    Videocon                               Consumer Durables and Plasma &               1600
                                             LCD Panels
 5    Sundareshwarar Alloy & Steels          Foundries, steel and alloy                   2201
                                             manufacturing, Tractors, etc.
 6    Mahindra & Mahindra                    Automotive project and a Test Track          1800
 7    Tanti Group of Companies – Suzlon      Wind turbine mills                           1500
      SEZ
 8    Base Corporation                       Batteries                                     355
 9    Alsthom                                Rail coaches                                  200
10    Saravana Global                        Insulators, power related T & D projects      240
11    South India Sandfits Corporation       Agro Machinery, Rock brakers, etc.            170




                                                 98




12    M/s. Yapp Zoom Automotive              Plastic fuel tanks                           46.49
      Systems Private Limited
13    M/s. Lotte Foods India Private         Candies, Toffees and Gums                    178.76
      Limited
14    M/s. Tenneco Exhaust India Private     Exhaust system and converter system          10.61
      Limited
15    Tacle Automotive India Private         Seating system for passenger cars            19.20
      Limited
16    SDP Telecom India Private Limited      Telecom Components, viz., Isolators,         26.30
                                             Combiners, RF Connectors, etc.
17    Aloka Trivitron Medical Technologies   Medical equipments                           20.00
      Private Limited
18    Cheyyar SEZ Developers Private         Expansion Phase II                           15.00
      Limited
19    Toshiba JSW Turbine & Generator        Steam turbines and generators                 800
      Private Limited
20    Perlos Telecommunication and           Electromechanical components for              91
      Electric Components (India) Private    handheld products
      Limited
                                       Total                                            16,373.36


                                                 99
   Single window facilitation                             DEPARTMENT OF GEOLOGY AND MINING


   During the year 2009-10, Guidance Bureau                   Minerals are valuable resources and vital raw
facilitated 9 projects with a total investment of      materials for basic Industries.        Our State is
Rs.1,207.36 crores through single window process.      endowed with much important industrial minerals
                                                       and ranks one of the most important States in the
   ASIDE:                                              country in the fields of exploration, exploitation and
                                                       utilization of mineral deposits. The rich and varied
   Guidance Bureau is the convener of State Level      mineral resources explored by the Department
Export Promotion Committee for the Government of       during the past led to establishment of several
India scheme called Assistance to States for           mineral based industries and achieved the long
Developing    Export   Infrastructure   and   Allied   term goals and prospectives of the State.
Activities (ASIDE).    During 2009-10, Guidance
Bureau scrutinized 3 project proposals and SLEPC              The chief functions of the Department of
sanctioned financial assistance to the tune of Rs.50   Geology and Mining are Mineral Exploration and
crores.                                                Mineral Administration. In addition to the above, the
                                                       Geotechnical studies are carried out in the hill tracts
                                                       of Nilgiris and Kodaikanal to preserve ecology and
                                                       environment of the hill ranges.




                        100                                                     101
Mineral Exploration                                             The exploration wing has carried out the
                                                          exploitation works for Limestone at south of
      The Geology and Mining Department was               Maruthaiyar River, Ariyalur Taluk and District.
originally started as a branch of the Directorate of      Based on the exposure of Limestone in the well
Industries and Commerce in the year 1957 and              cuttings, tank bunds and nearby mines, the inferred
investigated   the    mineral    deposits   such    as    contact of limestone deposit was demarcated in the
Limestone, Lignite, Bauxite, Graphite, Iron ore,          village maps.
Quartz and Feldspar, Vermiculite, Granite etc.
Considering the changing needs of the mineral                   The   investigation    for   Molybdenum   and
based industries, ensuring the sustainable growth         Platinum group of elements in and around chalk
and economic development of the State, the                hills of Omalur and Salem Taluks of Salem District
Mineral   Explorations are      carried   out   through   and Eswaramoorthypalayam village of Rasipuram
scientific methods.   The mineral potential explored      Taluk of Namakkal District has also been taken up
by the Department are being exploited by the              and 48 soil samples, 9 rock samples and 10 stream
captive and small industries. To cope up with the         sediments were collected for analysis from the
developing trends in technology in the field of           investigation area at Salem District and 8 stream
mineral exploration and to substitute the depleting       sediments and 5 rock samples were collected at
mineral reserves which were unearthed decades             Namakkal District.   Further investigation work is
ago, the Government have created a separate               under progress.
exploration wing in this Department.




                         102                                                     103
Mineral Administration                                     Regulation of mining operations so as to ensure
                                                           conservation and development of minerals;
      After   the   formation    of    the   separate
                                                           Prevention of illegal mining and transportation of
Department of Geology and Mining in the year
                                                           minerals by adopting strict enforcement;
1983, the Department was entrusted with twin
                                                           Augmentation of mineral revenue to State
responsibilities of Mineral Exploration and Mineral
                                                           exchequer.
Administration.   The Department has to shoulder
the responsibility of increasing the mineral revenue
                                                        Minerals Revenue
to the State exchequer.
                                                              The Department has carried out the mineral
     The mining policies and practices in our State
                                                        administration works effectively to earn sizeable
are industry friendly and proactive. Minerals being
                                                        income   to     the   State    exchequer   and   the
the valuable and non renewable resource, the
                                                        achievement have also been established by the
maximized exploitation, Zero waste mining and
                                                        progressive and steady increase in the mineral
economic utilization      through scientific modern
                                                        revenue. The mineral revenue have increased from
techniques are encouraged and monitored by this
                                                        Rs.2.83 crores at the time of inception of the
Department.
                                                        Department in the year 1983 to Rs.571.12 crores
      The following mineral administration activities
                                                        during the year 2008-09. The revenue augmented
are carried out by this Department:
                                                        during the year 2009-10 is Rs.592.54 crores. Apart
   Grant of mineral concessions for both major and      from carrying out the mineral administration works
   minor minerals in accordance with the relevant       effectively to earn sizeable revenue to state
   provisions of the Acts and Rules;                    exchequer, this Department is monitoring the
                                                        scientific and judicial exploitation of the mineral


                          104                                                    105
resources so as to conserve the same for future           detailed studies at 80 locations in the Nilgiris District
generations.                                              after the series of landslides occurred during the
                                                          2009-10 winter season were carried out and the
   The details showing the steady increase of
                                                          Geotechnical reports have been furnished to the
mineral revenue is in bar diagram.
                                                          District Administration.

Geotechnical studies in the hill tracts of the
                                                          E Governance
Nilgiris and Kodaikanal.
                                                                 The Government of India        have suggested
       The Geotechnical Cells have studied the hill       the usage of satellite imagery available with State
tracts of Nilgiris and Kodaikanal from land slide         Remote Sensing Organizations to keep the track of
angle to preserve environment and ecology of the          areas that are under mining to identify new areas of
hill ranges and to safeguard the human life and           mining and also to detect illegal mining.           The
property. The Geotechnical Cells are studying the         Department of Geology and Mining has initiated the
suitability of the sites and providing scientific         vectorization of different layers of cadastral maps
feasibility reports for any development activity in the   of all Districts of Tamil Nadu to prepare the
hill areas. In addition, the areas prone to landslides    Geographical Information System enabled mining
are identified and technical guidances are provided       tenement registry and mineral Atlas which will
to the District Administration in mitigating natural      facilitate the data in the mineral sector.     With the
disasters. The Geotechnical Cells have studied the        available Geographical Information System tools
safety and stability of areas and furnished feasibility   and with existing staff members, the digitization of
reports for 434 sites 5 other references and 71           cadastral maps of Salem District is under progress.
house sites during the year 2009-10.           Further


                         106                                                         107
        The Department will take effective steps to
increase the mineral revenue in the ensuing years
by better mineral administration, curtailing illicit
mining by effective enforcement, identification of
new mineral deposits through mineral exploration
using     modern     scientific   techniques    and
encouragement to mineral based industries.




                        108
109
                 SUGAR INDUSTRY                           Co-operative Sector, 3 in Public Sector and 23 in
                                                          Private Sector. At present, 37 Sugar Mills are
Sugar Industry
                                                          functioning, while 3 Mills, viz., Madurantakam Co-
         Sugar Industry in Tamil Nadu is an important     operative   Sugar      Mills,    Madura    Sugars   and
agro based industry. It is a major industry, which        Arunachalam Sugar Mills are not in operation.
directly helps to improve the economic conditions of      Further, M/s. S.V. Sugars Limited, Kancheepuram
the agriculturists in the rural areas. Tamil Nadu is      Taluk and M/s. Sakthi Sugars Limited, Modakurichi
one of the leading producers of Sugar in the country      Taluk    temporarily     suspended        the   crushing
and its contribution is about 10% of the country’s        operations during 2009-10 sugar season.
total production of Sugar.
                                                          Production
         Sugar Industry generates direct and indirect
                                                                  During 2009-10 crushing season all the
employment to several lakhs of rural population in
                                                          Sugar Mills in Tamil Nadu have programmed to
cultivation, harvesting, transport and allied services.
                                                          crush about 130.01 lakh metric tonnes of cane and
It also plays a vital role in the development of a
                                                          to produce 11.92 lakh metric tonnes of Sugar with
network of good roads and infrastructure in the rural
                                                          an average recovery of 9.17%. During 2008-09, 39
areas.
                                                          Mills in Tamil Nadu have crushed 165.72 lakh
                                                          metric tonnes of cane and produced 15.95 lakh
Performance
                                                          metric tonnes of Sugar with an average recovery of
         Tamil Nadu is contributing substantially to      9.63%.
total Sugar production in India. There are 42 Sugar
Mills in Tamil Nadu of which 16 Sugar Mills are in


                          110                                                        111
By-Products                                           iii) Press mud

i) Bagasse
                                                               The Press mud is one of the by-product of
                                                      the Sugar Mills. It is bio-composited with distillery
         The by product bagasse is used as fuel to
                                                      effluent and sold as bio-manure. By utilizing Press
generate steam and power for operation of the
                                                      mud, Vermi Compost, a bio compost is also
Mills.    The surplus bagasse produced in Co-
                                                      produced in the Sugar Mills. In some of the Sugar
operative and Public Sector Sugar Mills is being
                                                      Mills enriched Press mud is made by adding micro
sold to other users on tender basis.    During the
                                                      nutrients and bio organisms.      The entire quantity
financial year 2009-10, 30,461 M.Ts. of Bagasse
                                                      produced were distributed to the sugarcane growers
has been sold and a sum of Rs.368.79 lakhs
                                                      of the mill concerned.
realized by Co-operative and Public Sector Sugar
Mills.
                                                      Co-generation

ii) Molasses
                                                               In Co-operative Sector, 3 Co-generation
         Molasses is a valuable down stream by-       Plants     are   functioning    one   each   at   M.R.
product of Sugar Mills, utilized for production of    Krishnamurthy co-operative sugar mills, Cheyyar
Alcohol, Chemicals and Cattle Feeds. During the       co-operative sugar mills and Subramaniya Siva Co-
financial year 2009-10, 1.64 lakh M.Ts. of Molasses   operative sugar mills. The installed capacity of Co-
has been sold and an amount of Rs.5,572.51 lakhs      generation plants at M.R. Krishnamurthy Co-
has been realized by the Co-operative and Public      operative sugar mills and Cheyyar Co-operative
Sector sugar mills.                                   sugar mills is 7.50 MW each and that of
                                                      Subramaniya Siva co-operative sugar mills is 5.00


                        112                                                     113
MW.      All these mills are exporting power to the    Ethanol
Tamil Nadu Electricity Board Grid.      It has been
                                                             The requirement of Ethanol for 5% blending
decided to set up Co-generation Project in 12 Sugar
                                                       with Petrol in our State is about 6.25 crores litres
Mills (10 Co-operative and 2 Public Sector Sugar
                                                       per annum.      So far, 8 Ethanol Plants having
Mills) with a capacity of 183 MW at a total cost of
                                                       production capacity of 9.60 crore litres per annum
Rs.849.36 crores.    Also during the Co-generation
                                                       were established in Tamil Nadu.        Of which 2
Programme, Sugar Mills will be modernized at a
                                                       Ethanol Plants have been set up in Amaravathi and
cost of Rs.276.27 crores to reduce the Power and
                                                       Salem Co-operative Sugar Mills with a capacity of
Steam     consumption    in    Sugar   Manufacturing
                                                       30 KLPD. in each Mill. Further, establishment of 45
process and also to increase the quantity of power
                                                       KLPD Distillery cum Ethanol Plants each at
for export to Tamil Nadu Electricity Board Grid.
                                                       Cheyyar and M.R. Krishnamurthy Co-operative
Distilleries                                           Sugar Mills at a cost of Rs.36.00 crores each is in
                                                       progress. Presently, Ethanol is not produced
        The two Distilleries in Co-operative Sector,
                                                       commercially in the State, as its price is not
viz., Salem and Amaravathi Co-operative sugar
                                                       remunerative.
mills have produced 194.22 lakh litres of Alcohol
and along with old stock sold 145.08 lakh litres of
                                                       L.R.O.T.
Alcohol and an amount of Rs.5,183.38 lakhs has
                                                             The Government have decided to reopen
been realized.
                                                       and revive Madurantakam Co-operative Sugar Mills
                                                       and Madura Sugars following Lease, Rehabilitate,
                                                       Operate and Transfer (LROT) method.


                         114                                                   115
Rehabilitation                                          Mechanical Sugarcane Harvesters

                                                                 Government of Tamil Nadu have taken a
      The Government have accorded sanction to
                                                        decision    to   introduce   Mechanical   Sugarcane
rehabilitate Public Sector Sugar Mills, viz., Arignar
                                                        Harvesters in Co-operative / Public Sector Sugar
Anna Sugar Mills and Perambalur Sugar Mills by
                                                        Mills.     Action is under way to procure the
establishing Co-generation, Ethanol and Distillery
                                                        Mechanical Sugarcane Harvesters.
Unit along with other rehabilitation measures
through BIFR at a total cost of Rs.408.00 crores.
                                                        Sales

Computerization                                                  Tamil Nadu Co-operative Sugar Federation
                                                        Limited is the Nodal Agency to sell the Sugar
      For the first time in India, Simputers were
                                                        produced by all the Co-operative and Public Sector
introduced by the Co-operative and Public Sector
                                                        Sugar Mills in Tamil Nadu. In 2009-10 Sugar Year,
Sugar Mills in our State for on the spot capture of
                                                        80% of the Sugar produced is sold as Free Sugar
data relating to Sugarcane Farming Operations.
                                                        and the remaining 20% of the Sugar produced is
Simputerization of cane activities will help in
                                                        allotted by the Government of India as Levy Sugar.
scientific storage, analysis and reporting of data
relating to bio-metric observations, agronomic                   Sugar Sales is conducted by Sugar Sales
practices, pest and disease Management, Cane            Committee to the Registered Sugar Dealers through
registration and harvesting at appropriate time and     Tender.
payment details for individual farm holdings.




                        116                                                      117
Awards                                                    2. Decantor - 1 No. at a cost of Rs.95.00 lakhs for
          The National Federation of Co-operative            Salem Co-operative Sugar Mills;
Sugar Factories (NFCSF), New Delhi, has awarded           3. Modernization and Training on Computerization
the following Prizes for the Sugar Season 2008-09:           and Simputerization at Commissionerate of
                                                             Sugar at a cost of Rs.52.90 lakhs.
(i)     First Prize for Technical Performance to Salem
        Co-operative Sugar Mills;
(ii)    First   Prize   for     Cane   Development   to
        Kallakurichi II Co-operative Sugar Mills;
                                                                                               M. K. STALIN
(iii) Second Prize for Financial Management to the                               DEPUTY CHIEF MINISTER
        Cheyyar Co-operative Sugar Mills.

Sanctions

          During the year 2009-10 the Government
have sanctioned a sum of Rs.172.90 lakhs for the
purchase of following Machinery and Equipments
under Part-II Scheme:

1. Rotary Screen Filter – 1 No. at a cost of
       Rs.25.00 lakhs for N.P.K.R.Ramasamy Co-
       operative Sugar Mills;




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