Business OpportunitiesAuto firms lead investments in TN
The Tamil Nadu government attracted investments worth Rs 15,000 crore during 2009, majority of which was driven by the automobile industry.
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According to government sources, since 2006, the state attracted investments worth Rs 46,100 crore.
The most recent deal was with French tyremaker Michelin, which signed a memorandum of understanding (MoU) with the state government to set up a tyre manufacturing facility near Chennai. The project is expected to attract investments worth Rs 4,000 crore over the next seven years.
The tyre major has got Foreign Investments Promotion Board (FIPB) nod for setting up a wholly-owned subsidiary and would invest up to Rs 11,000 crore.
Mahindra & Mahindra too is reportedly in advance talks with the state for setting up an integrated auto facility in Tiruvannamalai district (195 km from Chennai). M&M will invest about Rs 1,800 crore in its facility, which would come up on over 450 acres. The plant will produce 150,000 units annually.
While Korean car maker Hyundai has so far invested Rs 4,191 crore in the state, Ford has committed an investment of Rs 2,000 crore. It signed a second MoU with the state last year. Renault and Nissan are likely to bring in Rs 4,500 crore over a period of seven years. German major Daimler has plans to invest Rs 2,000 crore.
Ashok Leyland and Nissan have signed MoUs with the state government for setting up facilities at a cost of Rs 4,000 crore.
According to the Associated Chambers of Commerce and Industry of India (Assocham), Chennai and its surroundings will see an investment of over $3 billion (around Rs 14,400 crore) by global car manufacturers by 2010.
Global consulting firm KPMG said the introduction of Industrial Policy 2007 played a crucial role in the industrial development of Tamil Nadu.
Further, the implementation of policies triggered the growth of FDI in the state. “The inflow in the Chennai region (including Tamil Nadu and Puducherry) was Rs 2,980 crore till May 2009 as compared with Rs 2,890 crore in 2007,” it said.