On SIPCOT and Tamil Nadu industries | Explained

The SIPCOT industrial estate in Ranipet, Tamil Nadu.
| Photo Credit: File Photo

The story so far: On September 28, Tata Motors Group, producer of commercial and passenger vehicles, held the groundbreaking ceremony of its new, world-class production facility to manufacture cars and SUVs, at the State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) industrial park at Panapakkam in Ranipet district, Tamil Nadu. This is Tamil Nadu’s 50th SIPCOT industrial park and the 27th SIPCOT park of the Dravida Munnetra Kazhagam (DMK) government. The Tamil Nadu government has set a target of becoming a $1 trillion economy by 2030 and SIPCOT will play a crucial role in helping the State reach this goal.

Also Read: ‘Equipment testing lab set up at SIPCOT in Sriperumbudur’

Why was SIPCOT formed?

SIPCOT was established on March 25, 1971 with the objective to plan, develop, operate and promote industrial growth in Tamil Nadu. It was started with a vision to promote medium and large scale industries in Tamil Nadu, as the State was in the nascent stage of its industrial growth with the initial success of the MSME sector. The first industrial park was established in Ranipet in 1973, with the land extent for the first phase here being 729.79 acres. Thirumalai Chemicals Pvt. Ltd (47.25 acres), Ultra Marines & Pigments Ltd. (19.10 acres) and SRP Tools Ltd (13.5 acres) were the initial firms that booked space at the first SIPCOT park.

How did SIPCOT distribute itself?

According to details provided by SIPCOT Managing Director K. Senthil Raj, in the initial years, two industrial parks were established — Ranipet and Hosur, with the former focussing on leather, chemicals and pharma industries while the latter focused on automobiles and the general engineering sector.

Also Read: Tamil Nadu tops in factory employment: Annual Survey of Industries 2022-23

Further information shared by SIPCOT shows that Kanchipuram was developed as an auto and electronics cluster, due to its proximity to the capital Chennai, and because of the presence of companies like Hyundai Motors, Yamaha, Eicher, Renault Nissan, Daimler, Foxconn, Flextronics and Samsung among others. Chengalpattu was developed as an IT cluster due to the presence of IT majors like TCS, CTS, Syntel and Hexaware to name a few and has now emerged as a data centre hub. Additionally, Hosur in Krishnagiri district was developed to have a SIPCOT park to take advantage of the human and intellectual capital of Bangalore. To promote the development of industrially backward districts, Manamadurai, Nilakotai, Pudukottai, Gangaikondan etc were also developed.

Currently, Tamil Nadu has 50 SIPCOT industrial parks. Around 17 more parks will come up in the next one year while many of the existing parks will be expanded. Mr. Senthil Raj stated that the data showed that SIPCOT has been instrumental in the establishment and growth of 3,290 industrial units with a cumulative investment of about ₹1.85 lakh crore over the past 53 years, generating over 8.20 lakh job opportunities.

What efforts is SIPCOT taking to improve industrial growth in T.N.?

Currently, SIPCOT is focusing on promoting sector specific industrial parks such as an international furniture park at Thoothukudi; a medical devices park at Oragadam; electronic manufacturing clusters at Manallur and Pillaipakkam; mega food parks at Manapparai, Tindivanam and Theni; a future mobility park and a e-vehicle park at Shoolagiri and Manallur respectively. Efforts are also being taken to provide accommodation to the workforce, with SIPCOT developing an industrial housing facility with 18,720 beds at Vallam-Vadagal. Apart from this, it has also formed a Special Purpose Vehicle called the Tamil Nadu Industrial Housing Private Limited (TNIHPL) to provide affordable and sustainable housing for industrial workers. Currently, TNIHPL is developing a 807-bedded working womens’ hostel in the SIPCOT Industrial Park, Siruseri.

Additionally to manage water, Tertiary Treatment Reverse Osmosis (TTRO) water is being supplied to industries located in the Kanchipuram district from the 45 MLD TTRO plant established by the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) in Koyambedu. SIPCOT is also establishing a 20 MLD TTRO plant at Kelavarapalli to cater to the water requirements of industries located in the Hosur area.

What is SIPCOT trying to do in the startup eco-system?

SIPCOT Industrial Innovation Centres (SIIC) have been established in SIPCOT industrial parks at Hosur and Sriperumbudur at a project cost of ₹33.46 crore by availing a grant of ₹14.20 crore from the Tamil Nadu Innovation Initiatives (TANII) scheme under the State Planning Commission, Government of Tamil Nadu.

According to Mr. Senthil Raj, these centres are envisioned as world-class incubation centres capable of nurturing and accelerating industrial innovations and technology powered startups, boosting the growth of the high-technology sector in Tamil Nadu and further strengthening the productivity and competitiveness of the manufacturing sector. SIPCOT envisages to evaluate over 1,000 innovative ideas, over 200 prototypes and promote 30 startups’ graduation till the seed investment stage. SIPCOT is also developing a state-of-the-art skill development centre in SIPCOT Industrial Park, Shoolagiri, Krishnagiri district.