Availability of infrastructure facilities determines the pace of economic development of a region. The Chennai Metropolis enjoys the best infrastructure facilities that any entrepreneur could dream of. Chennai, the Capital of the State is ranked 3rd in infrastructure availability in India. This Metro is facilitated with a major Sea - port, Domestic and International Airport, National Highways, State Highways, Broad gauge & Meter gauge railways connecting important districts in the State as well as cities in the Country, gives unique advantage of easy access to most of the resources and domestic as well as international markets, required for industrial development. There are excellent communication facilities, Industrial Estates, Industrial parks, Industrial complexes, banking facilities, Educational Institutions and Training facilities in the city. A short review of the existing infrastructure facilities and future program and planning in increasing the facilities are discussed in the following paragraphs :


  1. Industrial Estates.

  2. Industrial Estate Development Program is taken up wherever there is demand and good scope for starting new industries. Care is taken to select the Government Poramboke lands to cheaper cost or private lands at reasonable cost through private negotiation committee and facilitated according to the requirement of the entrepreneurs to set up industries.

    All the basic Infrastructure facilities like roads, Street lights, water, drainage facilities etc. are provided in the industrial estates by Tamilnadu Small Industries Development Corporation. Wherever necessary follow up action is taken up with the Tamilnadu Electricity Board for getting the power connections to the units by coordinating with Tamilnadu Electricity Board. Provision is also made for future accommodation and other amenities such as E.B. sub station, canteen, banking facilities, post and telegraph office, telephone office, police outpost, parking space for vehicles, parks and housing facilities. SIDCO is also maintaining all the Industrial Estates coming under its jurisdiction to keep the infrastructure facilities in good condition by collecting the maintenance charges from the industry holders.

    Tamilnadu Small Industries Development Corporation(SIDCO) has requested the Government of Tamilnadu to declare the large Industrial Estate, Guindy as ‘’Industrial Township’’ so that the township authority will function as the local body & give all clearances for setting up industries at single window.

    SIDCO industrial Estates are treated on par with the backward areas and the allotees of SIDCO sheds/Plots are eligible for 15% state capital subsidy. The small scale industries in SIDCO industrial estates are exempted from payment of stamp duty in respect of the sale deed executed by SIDCO for the plots/sheds allotted to them. 30% reservation is given for women entrepreneurs and 10% for ex-service men while considering allotment of sheds/plots.

    Work sheds of suitable sizes ranging from 200 sq. ft. to 6,000 sq. ft. are constructed and allotted to tiny and small scale entrepreneurs according to their requirements. The sheds are allotted even under higher purchase basis. Developed plots are also made available in the Industrial Estates. Entrepreneurs applying for allotment of sheds and developed plots are given the allotment fast and on easy terms. Tamilnadu Small Industries Development Corporation has so far set up Industrial Estates at the following places in Chennai district:

    Table 4.1
    Sheds for Tiny Sector in Industrial Estate Guindy as on 31-3-2001

    S NOLocationNo. of Sheds
     Industrial Complexes. 
    4Electronic Complex, Guindy.120
    4Garment Complex, Guindy.64

Source : SIDCO Office, Chennai.

To safeguard the interest of the tiny sector industry, 110 sheds are ear marked for the sector in the Guindy Industrial Estate. The details of the tiny sheds are given in the table below:

Table 4.2
Sheds for Tiny Sector in Industrial Estate Guindy as on 31-3-2001

S NOName of the placeNo. of Sheds
1Guindy Industrial Estate Phase - I40
1Guindy Industrial Estate Phase - II50

Source : SIDCO Office, Chennai.

Scope for establishing new industrial Estates in the city is very limited due to lack of phase. There is a scope for constructing Industrial Complexes to accommodate particular group of industries in the existing industrial estates so that new units can come up in Chennai District.
  1. Industrial Parks
  2. Integrated Industrial parks serve as incubator to new industries and facilitates healthy industrial development. An information Technology Park named as “Tidel Park” has been set up by Tamilnadu Industrial Development Corporation (TIDCO) and Electronic Corporation of Tamilnadu Ltd. (ELCOT), across 8 acres of land at Taramani in Chennai to boost Electronic Telecommunications and Information Technology Industry. The Information Technology Park is set up with a view to give a giant leap forward to develop and integrate the country into the world wide Information Technology net work.

  3. Transport.
  4. The development of transport and communications system is an important factor for industrial development. The availability and coverage of transport and communication system invites industries to cluster in one area, even if some other difficulties are there. Intra-city transport and commuting facilities between the suburban areas to the center of Chennai is the most efficient amongst all the Metros in India. Chennai has a combination of three modes of transport with-in the city. Metropolitan Rapid transport system (MRTS), suburban EMUS and transport Corporation buses. The city also has a fleet of three wheelers for hire, called Auto rickshaws. They are the most economical mode of hired transport. There is a choice of independent taxis and private tourist cabs in the city. There are four Transports Corporations in the City. Details are given in the following Tables:

    Table. 4.3
    Details of Transport Corporations in Chennai District as on 31-3-2001.

    S NOName of the CorporationYear of FormationHead- quarterDistrict Covered No.of Buses
    1Metropolitan Corpn.Ltd., Chennai (Division I) 1.1.92Chennai Chennai-Area (S) 1947
    2Metropolitan Trans- Port Corpn. Ltd. Chennai (Div.II) 19.1.94Chennai Chennai Metro-Area (S) 1348
    3State Exp. Transport Corpn.Ltd, Chennai (Tamilnadu Div.I) 1-4-98Chennai Entire State of T.N. 829
    4State Exp. Transport Corpn.Ltd, Chennai (Tamilnadu Div.II) 27.1.94Chennai Inter- State 244

Source : Office of the Assistant Director (Stat.)

Road transport system is well developed in the district. The district is connected with all important commercial centres of the Sate. Out of the total length of 1989.21 k.m. road in the Chennai city, the length of the National Highway is 29.70 k.m. and the length of the State highway is 17.50 kms.
Category-wise registered vehicles in the district is given in the following table:-

Table. 4.4
Registered Motor Vehicles in Chennai as on 1998-99

S NOType of vehiclesNo.of Motor vehicle
1Commercial 80,965
2 Non-commercial 8,74,792
  Total 9,55,757

Source : Assistant Director (Stat.) Chennai

  1. Railways.

  2. The well developed railways in the district has played an important role in the economic development of the District. Chennai is well connected to rest of India with rail. The southern Railway Headquarters is situated in the district. The district is connected by meter gauge and broad gauge rail with the other districts and other States in the country. The railway length of the meter gauge line falling within the district is 15.0 k.m. and the route length of the broad gauge line is 24.01 k.m.s. There are two railway terminals one for meter gauge and the other for broad gauge. The track length of the Meter gauges is 60.20 k.m. and broad gauge is 66.84 k.m. There are 20 stations in the broad gauge line and 10 station in the meter gauge line.

  3. Port facilities.

  4. Chennai has an all-weather harbour with modern container facilities. dedicated terminals matching to international standards. Chennai port was first in the country to introduce the concept of single window clearance and has been functioning very effectively, giving good scope for setting up export oriented units/business activities in and around the Metro.

    Chennai is well connected to major cities across the globe by air and sea. Chennai port which endeared itself to the progress of Indian industries and economy is one of the best in the country. Chennai port is ahead of trade in creating facilities for India,s International Trade and Commerce. It is a versatile port with facilities to handle liquid bulk, dry bulk, neo bulk, break-bulk and containers in a quick, efficient and modern way. It is a port with Deepest Draft in the country. The Chennai Port is well aware and responsive to the problems of shipping, ware housing and distribution. Besides the existing major sea port, a new satellite port with facilities for bulk cargo handling is being built at Ennore, 30 km away from Chennai to ease the congestion at Chennai port. Foreign Imports and exports are handled through the Chennai harbour. During the year 98-99, 2529 vessels entered in the Chennai port and 3,52,01,470 tons of cargo was handled.

  5. Airports.

  6. Chennai has an international airport with more than 60 direct flights every week to more than 15 countries in Europe and Far Eastern countries. And it has also a domestic airport with a number of flights daily to different parts of the country.

    During the year 98-99,41,35,435 tonnes cargo was loaded and 17,76,62,259 tons of cargo was unloaded through the International Airport. Through the domestic Airport 65,75,612 tonnes of cargo was loaded and 63,49,868 tonnes of Cargo was unloaded

  7. Tele-communication.

  8. Healthy development of any economy depends on modern telecommunication facilities. Tamilnadu is part of the global telecommunication network. There are 175 post offices doing postal business in the district 25 post offices are functioning in the district for doing post and telegraph business. All parts of the city are covered by postal facilities. There are 1,806 letter boxes in the district. 115 Telegraph Exchanges with an equipped capacity of 9,68,243 connections is functioning in the district. 7,67,863 direct Exchange lines are functioning 8, 07,897 telephones are in use. 32,692 public call offices are functioning out of which 8,308 is functioning with STD./ISD facilities and 24,384 without ISD/STD facilities. RPG paging Services LTD has given 32,000 pager connections with an equipped capacity of 38,000.

  9. Power

  10. Electricity is one of the most vital infrastructure inputs. Fairly well developed infrastructure and comfortable power situation offer significant competitive advantages to Tamilnadu in attracting investment. Tamilnadu is one of the few States with out power cuts and with zero deficient power situation. Following power stations are generating power in the district: -

    Table 4.5
    Details of Power Stations during the Year (1999-2000)

    S NO.Name of the power stations Year of operationInstalled capacityM.U Generation (M.U)Station Consumption (M.U)
    1Hydro 99-20001995 4444 Chennai
    2Thermal -do-297018,841 -do-
    3Gas turbine -do-130217 -do-
    4Wind mills -do-1927 -do-

Source : Office of the Assistant Director (Stat.) Chennai

Apart from the above, 14764 M.U Electricity is purchased from the following power stations: -

Table . 4.6
Quantum of Power Purchased during 1999-2000

S NOName of the Sector from where power purchasedPower purchased in M.U.
1Neyveli T.S.I2,973
2Neyveli T.S.II2,537
6Independent power Project 1,300

Source : Office of the Assistant Director (Stat.)

  1. Power consumption

  2. The per capita domestic consumption of electricity is estimated to be 208 M.U. Power Consumption during 98-99 was 41.04%. Power used by different sectors is given in the following tables:

    Table . 4.7
    Power Consumption during 1998-99 in different sectors.

    S NO SectorConsumption (M.U).% to total consumption
    4Public & Pub. works28.5240.73
    6Agriculture and huts0.1310.003
     Per capita Electricity consumption.208.00 

Source : Office of the Assistant Director (Stat.)

  1. Water

  2. There are four reservoirs in Chennai district viz. Poondi, Cholavaram, Redhills and Sembarambakkam which feeds the water needs of Chennai city. In addition to the above water projects, Krishna Drinking Water Project is expected to meet out the requirement of drinking water in Chennai City.


  1. Entrepreneurship

  2. The district is endowed with talented entrepreneurs who are known for their business acumen. The man power of the district is marked for its diverse skills, professional expertise and its ability to communicate in several local languages as well as English. The State of Tamilnadu invests highly on education and ranks the third highest in terms of total expenditure on education clearly indicating the trust on creating a sound human capital base. The literacy level of the district is 80.14 percent and the city population is economically active. At a stage when the emphasis is gradually shifting to knowledge and technology-based industries, this human resource base combined with a favourable labour climate offers ideal condition for Entrepreneurship development and economic growth.

  3. College and Institutions

  4. Availability of skilled labour is an important pre-requisite for industrial development of a place. There are five Universities in the Metro viz. Chennai University, Anna University, Dr.M.G.R.Medical University, Tamilnadu Veterinary University, and Ambedkar Law University. Though there has been a rapid growth in the number of Engineering Colleges in the State, the Metro has only two Egineering colleges due to lack of space for large accomodation. But in the outskirts of the city, Kancheepuram and Thiruvalluvar District are bestowed with enough number of Engineering Colleges to accommodate the students of Chennai city too. There are three Medical Colleges in the city, Viz. Chennai Medical College, Stanley Medical College and Kilpauk Medical College which can accommodate 1,151 students for studying Medical profession. Apart from these, there is one College for Indian Medicine and one College for the Homeopathy. There are 30 Arts & Science Colleges , 10 Colleges for special education, 1,192 schools for general education and 12 schools for professional education in the district. This shows the professional strength of the district

  5. Unemployed Persons who could be self employed

  6. According to the live register of the District Employment Exchange Chennai as on 1999-00 registered Unemployed are 6,10,400 persons. During the year 98-99 2458 persons were given placement. From 1.4.1991 to 31.03.2000, 38,162 persons were given placement by the Employment Exchange. It can be seen that there are enough manpower in the district to be engaged in industrial venture provided that they are trained and financially supported.

  7. Training Programmes.

    1. Entrepreneurship development programmes.

    With a view to motivate and train the prospective entrepreneurs of the district, the Small Industries Service Institute, Chennai is conducting periodically Motivation Campaigns, Entrepreneurship Development Training Programmes in association with the District Development Agencies and NGOS like Industry Associations. Entrepreneurship Development Programme are conducted on’’how to set up and manage industries successfully’’. A few number of EDP’s are also conducted for Women and SC/ST.

  1. Market Potential

  2. Small Industries Service Institute, Chennai is assisting the industrial units in marketing their products through its Sub-contract Partnership Exchange Division. SISI is also organising and conducting Seminars, Vendor Development programs and Industrial Exhibitions to educate the entrepreneurs about domestic and export markets.

    Management Development programs on marketing management are conducted periodically by SISI Chennai to educate the existing as well as prospective entrepreneurs about the challenging national and international market.

    Tamilnadu Small Industries Development Corporations (SIDCO) and The National Small Industries Corporation (NSIC) Chennai are also assisting the small scale units in marketing their products.

  3. Banking Facilities

  4. The financial Institutions can make a significant contribution towards the development of business and industrial activities in the economy. Bank Credit is the principal pre-requisite for industrial development and more so, small scale industries sector, since entrepreneurs of small scale industries sector are highly dependent on finance from the organised financial sector.

    Chennai is the financial capital of South India. The trade and industries in the city has spurred the growth of the financial sector in the city. The Metro has a strong financial system, served by All India Financial Institutions like ICICI, IDBI, IFCI, Commercial Banks such as the State Bank of India, Indian Overseas Bank, Co-operative Banks and non-banking financial companies such as Chit Funds and indigenous financiers. Foreign Banks such as City Bank, Hongkong Bank, ABN Amro Bank, Bank of Tokyo, Mitsubishi Bank of America etc, have also established offices in Chennai.

    Twelve Specialised Small Scale Industry Bank Branches are functioning in the district exclusively for financing small scale industries.
    Indian Overseas Bank is operating as Lead bank in the district with 71 branches. State Bank group has 127 branches in the district. Nationalized Banks are operating with 469 branches. Private sector Banks have 144 branches in the city. Foreign Banks accounts for 15 branches only. As on 31-3-2001, 755 bank branches are operating in the district and advancing loans to different type of industrialists in the district. Details of the banks and its branches functioning in Chennai District is given in the following table:-

    Table . 4.8
    Details of Bank Branches category-wise in Chennai as on 31 March 2001.

    S NOName of the BankNo. of Branches in Metro
     Group-wise Consolidation 
    IState Bank Group127
    IINationalised Banks469
    IIIPrivate Sector Banks 144
    IVForeign Banks 15
     Grand Total 755
     State Bank Group  
    1State Bank of India 82
    2State Bank of B&J 3
    3State Bank of Hyderabad11
    4State Bank of Indore 2
    5State Bank of Mysore 11
    6State Bank of Patiala 3
    7State Bank of Saurashtra 3
    8State Bank of Travancore 12
     Sub total 127
     Nationalised Banks  
    9Allahabad Bank 12
    10Andhra Bank 17
    11Bank of Baroda 26
    12Bank of India22
    13 Bank of Maharashtra 10
    14Canara Bank 62
    15 Central Bank of India 27
    16 Corporation Bank13
    17 Dena Bank13
    18Indian Bank75
    19Indian Overseas Bank71
    20Oriental Bank of Commerce 6
    21Punjab National Bank 23
    22Punjab & Sind Bank 4
    23 Syndicate Bank 27
    24 Union Bank of India 23
    25 UCO Bank 16
    26 United Bank of India 5
    27Vijaya Bank 17
     Sub total 469
     Private Sector Banks  
    28Bank of Rajasthan Ltd 1
    29 Bharat Overseas Bank Ltd. 9
    30 Benaras State Bank Ltd. 1
    31Catholic Syrian Bank Ltd. 7
    32City Union Bank Ltd. 9
    33Dhanalakshmi Bank Ltd. 5
    34Fedral Bank Ltd. 8
    35Global Trust Bank Ltd. 6
    36ICICI Bank Ltd. 16
    37IDBI Bank Ltd. 3
    38Jammu & Kashmir Bank Ltd. 2
    39Karnataka Bank Ltd. 9
    40Karur Vysya Bank Ltd. 11
    41Lakshmi Vilas Bank Ltd. 10
    42Lord Krishna Bank Ltd. 1
    43Nedungadi Bank Ltd. 7
    44South Indian Bank Ltd. 13
    45Tamilnadu Mercantile Bank Ltd.8
    46Vysya Bank Ltd. 6
    47Sangli Bank Ltd. 1
    48HDFC Bank Ltd. 4
    49UTI Bank Ltd. 3
    50Indus Ind Bank Ltd. 1
    51Centurian Bank Ltd. 3
     Sub Total 144
     Foreign Banks  
    52ABN Amro Bank 1
    53Standard charted Grindlays Bank 3
    54Bank of America 1
    55Bank of Ceylon 1
    56Citi Bank1
    57Hongkong & Shangai Bank 1
    58Standard charted Bank 2
    59State Bank of Mauritius 1
    60American Express Bank 1
    61BNP Paribas 1
    62The Bank of Tokyo- Mitsubishi 1
    63Credit Lyonnais1
     Sub Total 15
     Grand Total 755

    Source : Indian Overseas Bank (Lead Bank )

    1. Tamilnadu Industrial Investment Corporation (TIIC).
    2. The Tamilnadu Industrial Investment Corporation extends financial assistance to entrepreneurs for starting small scale industrees as well as expansion of existing industrial units. The head office of TIIC is functioning in Nandanam ,Chennai with two branches one at Annanagar and another in Guindy. Following schemes are being implemented by TIIC for promotion of Small Scale Industries and related services.

      1. General Scheme
      2. Transport scheme
      3. Hotel scheme
      4. Single window scheme
      5. National equity fund scheme
      6. Mahila Udayam Niddhi scheme
      7. Generator scheme
      8. Scheme for storage go down
      9. Scheme for Technology Development and Modernisation
      10. Scheme for computer Training Centre
      11. Ex-servicemen scheme

      Details of various schemes financed by TIIC and the terms and conditions are shown in Annexure – 5.

    3. THADCO
    4. THADCO provides financial assistance to entrepreneurs belonging to scheduled caste and scheduled tribes for starting SSI units under Agriculture and Allied Industries, Service, Business Scheme and Individual Entrepreneur Scheme”.

      Under the Industries Service, Business Scheme the unit cost will be a maximum of Rs.40,000/-. Out of this 10 percent of the project cost will be Promoter’s contribution, 30% will be given by THADCO as subsidy and the remaining 60 percent will be extended as bank loan.

      Under the Individual Entrepreneur Scheme any project with a project cost of Rs.50,000/- to Rs.7,50,000/- can be considered. The promoter has to invest 5% of the project cost. 30% or Rs.25,000/- whichever is less will be given as subsidy. THADCO will extend margin money of 20% of the project cost or Rs.1,25,000 whichever is less. The balance will be given as bank loan

      THADCO also approves projects proposed under partnership basis by group of entrepreneurs.