Tamil Nadu to back startups with plug-&-play factory spaces

CHENNAI: With micro and small medium enterprises (MSMEs) forming the backbone of Tamil Nadu's economy, and TN housing the third highest MSMEs in India, the state government on Thursday announced a slew of infrastructure support and sops for the segment.
Tamil Nadu minister for MSMEs T M Anbarasan told the state assembly that multi-storey plug-and-play factory spaces will be created in Chennai, Hosur and Madurai at a cost of Rs 223.9 crore by TANSI (Tamil Nadu Small Industries Corporation) and TANSIDCO (Tamil Nadu Small Industries Development Corporation).
These ready-built spaces (totalling 2.83 lakh sq ft) can generate employment for more than 3,150 people, he said.
"Within these spaces, a floor will be exclusively allotted for manufacturing-centric startups as they form a large part of Tamil Nadu's startup ecosystem. They have been demanding infrastructure support," Arun Roy, state secretary for MSMEs told TOI.
Tamil Nadu has a large base of electric vehicles (EVs), industrial IoTs and robotics startups that typically need dedicated factory spaces for product development in addition to co-working desk spaces.
Further, five new industrial estates will be established by TANSIDCO at a cost of Rs 108 crore over 185 acres of land with potential to generate jobs for around 7,000 people.
The new industrial estates are set to come up in Kothakottai in Pudukottai district, Mullikolathur in Chengalpet, Muthoor in Tirunelveli, Vaiyavoor in Kancheepuram and Ayankollankondan in Virudhunagar.
Identifying products that the state’s small businesses can capitalise on, the government is also setting up 11 new micro clusters at a project cost of Rs 36 crore. These include clusters for areca nut in Coimbatore, honey processing and pottery in Vellore, wood carving in Madurai and Kallakurichi, coffee powder processing in Dindigul, artificial silk garment in Theni, embroidery in Tenkasi, powerloom in Dharmapuri and palm leaf and women’s garments inSivaganga district.
To encourage more MSME associations to develop private industrial estates, the minimum land area needed to receive 50% subsidy for setting up such estates is set to be reduced from 50 acres to 10 acres, the state MSME ministry said. To ensure equitable growth, special loan facilitation officers will be appointed to help people from SC/ST communities and differently abled persons to liaise with banks for loans, Anbarasan said.