Parliament Question: Industrial Parks in Tamil Nadu

GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA UNSTARRED QUESTION NO. 3792. TO BE ANSWERED ON TUESDAY, THE 11TH AUGUST, 2026. INDUSTRIAL PARKS IN TAMIL NADU 3792. SHRI MANI A: Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री (a) whether the Government has identified Dharmapuri district of Tamil Nadu for the establishment of large-scale, labour-intensive industries to generate employment and reduce migration of youth to other States, if so, the details thereof; (b) whether any proposals have been received for setting up of industrial parks, manufacturing clusters or MSME-based industrial estates in Dharmapuri during the last three years, if so, the present status thereof; (c) the incentives proposed by the Government to attract investments in sectors such as textiles, food processing, leather, renewable energy, electronics assembly and agro-based industries in the district; (d) the estimated employment likely to be generated through such industrial projects, particularly for local youth and women; and (e) the measures being taken by the Government to promote balanced regional industrial development and reduce unemployment and distress migration from Dharmapuri district? ANSWER वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA) (a) to (e): Industry is primarily a State subject. States adopt different policy measures to promote industrial development. The Government of India supplements the efforts of the State Governments through a number of policies and schemes. The Department for Promotion of Industry and Internal Trade (DPIIT) supports the overall development of industrial sector through schemes such as Production Linked Incentive (PLI) Scheme, National Industrial Corridor Development Programme, Startup India, Footwear, Leather & Accessories Development Programme and Initiative for Promotion of Geographical Indication and undertakes measures for Ease of Doing Business.The Bharat Audyogik Vikas Yojana (BHAVYA) Scheme has been notified on 10.04.2026 for development of investment-ready industrial parks to enable investors to ground investment with ease, thereby adding to the manufacturing capacity in the country. Under the Scheme, financial assistance is to be provided for development of 100 industrial parks. In the first phase, 50 projects are to be taken up, with one or more rounds of selection. Government of Tamil Nadu has submitted seven project proposals in Round 1, including one in Dharmapuri district. Under the National Industrial Corridor Development Programme (NICDP), two projects were identified for development in the State of Tamil Nadu as part of the Industrial Corridor Programme namely, Dharmapuri–Salem Node under the Chennai–Bengaluru Industrial Corridor Extension (CBIC-Extension) and Ponneri Node under the Chennai–Bengaluru Industrial Corridor (CBIC). The State Government conveyed that the proposed sites would be taken up for development by the State. Further, no alternate land parcels have been identified or communicated by the State Government under the NICDP. The Government of Tamil Nadu has informed that Dharmapuri district has been identified for industrial development through the establishment of SIPCOT Industrial Park, Dharmapuri in an area of 1733.40 acre, with the objective of promoting balanced regional industrial development, attracting large-scale investments, generating employment opportunities for local youth and reducing migration to other States. The park has an estimated employment potential of 18,300 persons during the operational phase, comprising 16,470 direct employment and 1,830 indirect employment. Till date, 11 industries have been allotted a total extent of 48.96 acres in SIPCOT Industrial Park, Dharmapuri, with a committed direct employment potential of 575 persons. The Government of Tamil Nadu has also accorded administrative sanction for acquisition of land for formation of SIPCOT Adhagapadi Industrial Park, Phase – II in the district. Further, the State has classified Dharmapuri District as a “C” Category District for the purpose of industrial incentives. To attract investments in sectors such as textiles, food processing, leather, renewable energy, electronics assembly, agro-based industries and other eligible manufacturing activities, a front-ended Land Cost Incentive of 50% of the plot cost is available for eligible industries that are allotted land in SIPCOT Industrial Parks. ********