Allaying fears about investments moving out to neighbouring States, the Tamil Nadu government on Thursday said investors are not moving away and efforts are on to bring in more investments. Tamil Nadu Industries Secretary Atulya Misra told The Hindu: “Companies are not moving away from the State and work is in progress to attract more firms to invest here.”
Citing examples, he said Hyundai would be expanding further here with an investment of ₹5,000 crore and Yamaha Musical Instruments had given a commitment to invest ₹500 crore (Yamaha would be getting in-principle approval next month).
According to the Industries Department, Xuzhou Construction Machinery Manufacturing Company, Vedanta Ltd, ITC Ltd (Expansion) and Freudenberg (Germany) are some of the firms proposing to invest in Tamil Nadu.
French car manufacturer PSA Peugeot Citroen is planning to establish three production facilities in Tamil Nadu with an initial investment of ₹3,000 crore, which is expected to go up to ₹4,500 crore. “A greenfield investment for powertrains at Hosur, a brownfield investment for an assembly plant and an R&D facility at Chennai are on the cards,” said Shilpa Prabhakar Satish, Executive Vice Chairperson, Tamil Nadu Industrial Guidance and Export Promotion Bureau.
She added that CEAT Tyres will be investing ₹5,000 crore in three phases. “Motorola will be reviving their existing project and the investment in this would be ₹500 crore,” she said. Together, these projects would create employment opportunities for about 6,500 people.
Status of GIM projects
When asked about the status of projects that were committed during the Global Investors Meet (GIM), the pet project of former Chief Minister Jayalalitha, the officials said some of the projects have taken off and some are in progress. “Investments don’t fructify overnight. It takes time. Some firms have a longer gestation period,” Mr. Misra said. The Global Investors Meets saw 98 MoUs worth more than ₹2.42 lakh crore.
Ten projects including Microsoft Corporation (India) Pvt Ltd, Amway, TNPL, Takasago, Growth Link Overseas Company, Samsung, Saint Gobain Ltd, MRF Ltd, Sun Edison Solar Power India Pvt. Ltd and Welspun Renewable Energy Pvt. Ltd. have already been inaugurated. Foundation stone has been laid for seven more ventures including Lotus Footwear, Apollo Tyres, ITC Ltd, TVS Motors, Saint Gobain, MRF Ltd, Shenglong Bio Tech Pvt. Ltd and Embassy Logistic Park.
“The other projects are at an advanced stage. Projects on power sector take time to materialise,” said Mr. Misra.