TN plans 38 industrial estates spread over 36,000 acres

Anticipating a huge inflow of investments into the state, the Tamil Nadu government will soon launch nine industrial estates spread over an area of 6,625 acres, including two facilities in the Hosur- Krishnagiri-Dharmapuri (HKD) region, under the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) to house industries of different sectors.

While the land acquisition for the nine industrial estates is at an “advanced stage”, the government is also planning to acquire another 29,607 acres to set up 29 SIPCOT industrial estates across the state, of which four are from the HKD region being projected by the Tamil Nadu government as the Electric Vehicle (EV) hub.

SIPCOT acquires land from private owners to create Land Banks that play a pivotal role in attracting investors to Tamil Nadu as they are spared the long and gruelling process of acquiring land from private parties. The land acquired is used to form industrial estates by SIPCOT which ensures that the premises get good roads, water, sewerage, and electricity facilities.

The government said it has become necessary to acquire an adequate extent of land to readily allot industrial lands to prospective investors without any delay, which is a key differentiator of Tamil Nadu. “These Land Banks will be created with emphasis on the development of industrially backward districts,” a senior government official said.

Of the 29 estates that are in the pipeline, a major chunk of land – 11,411 acres – is being acquired in southern Tamil Nadu. “We are focusing on southern districts as we feel decentralization of development is very critical. We will be establishing 12 estates in southern districts of which five are from the Thoothukudi district. We want to keep land in every area ready,” a senior government official told DH. The government has signed MoUs with over 100 companies worth Rs 60,000 crore.

In SIPCOT industrial estates, the government provides the land to companies on a 99-year lease, and it will be renewed after due process. Of the nine industrial estates that are at an advanced stage, two are in Krishnagiri and Dharmapuri districts – over 1,000 acres of land are being acquired in Shoolagiri, 20 km from Hosur, and Adhagapadi (1,733 acres) in Dharmapuri.

The official added that the entire 1,000 acres of land in Shoolagiri is expected to be “leased out” in about a month’s time once the acquisition process is over, due to the demand in the region. “Many who come to the HKD region ask for land in and around Shoolagiri as this is an emerging area. We keep getting queries every day about the upcoming SIPCOT estate in Shoolagiri. It is because the region is now being projected as the hub for EV vehicles and its ancillary units,” a source in SIPCOT said.

An industrialist who has a factory inside SIPCOT industrial estate in Hosur told DH that land banks are one of the best incentives that one can get while setting up an industry. “You will get almost all facilities in SIPCOT estates. While roads are laid, one gets electricity and water connections and other facilities in the estates. It is very easy because you just go and set up your factory,” he said.

Of the four from the HKD region in the proposed industrial estates, the largest will come up at Nagamangalam village spread at over 3,000 acres. Tata, Delta, Ola Mobility, Ather, and Simple Energy are some of the big names in electronics and the emerging electric vehicle (EV) sectors that have made Hosur and Krishnagiri their home in the past few years. Traditional player TVS is also investing Rs 1,100 crore for its EV facility in Hosur.