TN budget proposes sops for high-paying jobs in capability centres, to promote women workers

TN Finance Minister Thangam Thennarasu on February 19 presented 2024-2025 budget

To position Tamil Nadu as the prime destination for Global Capability Centres (GCC) in India, the state plans to incentivise the creation of high-paying jobs in new GCCs.

"The state will incentivise the creation of high-paying jobs in new GCCs by providing a payroll subsidy of 30 percent in the first year, 20 percent in the second year, and 10 percent in the third year for jobs with pay above Rs 1,00,000 per month," Finance Minister Thangam Thennarasu said while presenting the state budget for 2024-2025 on February 19.

"As a testimony to Tamil Nadu's successful transition to a knowledge-based economy, a large number of prominent multinational companies are now establishing their GCC in the state." he said.

The government will also facilitate the setting up of GCCs in Coimbatore and Madurai. A total of Rs 2,295 crore has been allocated for the Industries, Investment Promotion, and Commerce Department in the budget.

Scheme to incentivise additional women's employment

The government will introduce a special scheme to incentivise additional women's employment in the state. "This scheme will offer a payroll subsidy of 10% of the salary for women, differently-abled, and transgender employees for two years to all new industrial units providing direct employment to over 500 such individuals from Tamil Nadu," Thennarasu said.

Additionally, creches for infant children will be established in all major SIPCOT (State Industries Promotion Corporation of Tamil Nadu) industrial estates under public-private partnership to support working women. A new tailor-made skill training program will be introduced to facilitate women willing to re-enter the job market after taking a sabbatical for reasons such as marriage and pregnancy.

"As the state with the highest contribution to the number of women working in industries in India and with significant gender parity in its labor ecosystem, Tamil Nadu is a favored destination for progressive investors," Thennarasu said.

Chennai to host 'Global Start-up Summit'

Thennarasu said the recent Global Investors Meet served as an ideal platform for ensuring balanced development of the state. Among the Rs 6.64-lakh-crore deals signed, investments totaling Rs 1.12 lakh crore were committed in southern districts of the state.

ISRO is developing a spaceport in Thoothukudi district for launching Small Satellite Launch Vehicles. In proximity to this facility, Tamil Nadu Industrial Development Corporation Limited will establish a new 'Space Industrial and Propellant Park,' in 2,000 acres, to promote space technology industries.

An allocation of Rs 101 crore has been earmarked to provide subsidy assistance under the New Entrepreneur cum Enterprise Development Scheme (NEEDS). Further, steps are being taken to onboard the majority of the Public Sector Undertakings (PSUs) to participate in the Trade Receivables Electronic Discounting System (ReDS) platform to ensure timely settlement of dues.

Stating that Tamil Nadu has been recognised as a forerunner in the country in creating a conducive ecosystem for start-ups owing to the dedicated efforts made by this government over the past three years, Thennarasu said, "To sustain this momentum, Chennai will host the 'Global Start-up Summit' in January 2025, bringing together leading startups and accomplished young entrepreneurs from across the world."

Other major announcements for industries and startups

• Periyar Social Justice Venture Lab, which will focus on start-up companies founded and led by individuals belonging to marginalized sections, including SC/ST communities, will be established.
• Three new industrial estates dedicated to Micro, Small, and Medium Enterprises will be established in Oddanchatram Taluk in Dindigul District, Manamadurai Taluk in Sivaganga District, and Thiruthuraipoondi Taluk in Thiruvarur District.
• To facilitate the early commencement of business activities for Micro-enterprises, a four-storied industrial complex with plug-and-play facilities will be constructed at Kurichi Industrial Estate in Coimbatore district.
• A state-of-the-art Industrial Innovation Centre, covering an area of 26,500 sq. ft, will be constructed in Madurai at an approximate cost of Rs 24 crore.
• A three-storied industrial complex, spanning 5 acres of land, will be developed at Sakkimangalam Industrial Estate in Madurai district by TANSIDCO at a cost of Rs.118 crore.
• Under the Micro Cluster Development program, six apparel clusters with common facilities will be set up with a government grant at a total project cost of Rs 25 crore
•  Free Wi-Fi services will be provided at 1,000 prime locations in all the municipal corporations, including Coimbatore, Madurai, Tiruchirappalli, Salem, similar to the one being set up in Chennai.
• Neo Tidel parks are being established in Thanjavur, Salem, Vellore, Tiruppur, and Thoothukudi. These initiatives are expected to generate employment opportunities for 13,000 people.
• Tamil Nadu Artificial Intelligence Mission" will be established to develop guidelines for constructively leveraging AI in education, employment, industry, research, and medicine, and to establish clear protocols for its utilization.
• An IT Park in two phases will be constructed by in Vilankurichi, Coimbatore, covering an area of 20 lakh sq. ft., at an estimated cost of Rs 1,100 crore.
• An Integrated Textile Park, spanning 111 acres, will be developed in Salem district with an investment of Rs 800 crore.
• To create employment opportunities in the Thanjavur region, a new industrial park, spanning 300 acres near Sengipatti, at a cost of Rs 120 crore will be established.
• To fulfill the requirements of foreign investors who wish to commence business operations immediately, plug-and-play facilities will be set up in Shoolagiri in Krishnagiri district and Manallur in Tiruvallur district through a public-private partnership.
• A hi-tech film city will be established in Poonamallee near Chennai, spanning around 150 acres, at an estimated cost of Rs 500 crore.
• The government will establish 10 mini textile parks in various districts at a cost of Rs 20 crore. The government will also set up a dedicated 'Research and Business Development Fund for Technical Textiles and Man-Made Fibre' with a corpus of Rs 25 crore to provide grants to research units and private companies for new product development and research.
• An integrated complex spanning 4 lakh sq ft, comprising exhibition halls for the display of handlooms and handicrafts produced in different districts of Tamil Nadu and various states, will be established in Chennai at an estimated cost of Rs 227 crore. The complex will house a design and incubation centre for handicrafts, an open sales hall, and a commercial building.