Hyundai, CPCL among investment plans worth Rs 65,000 cr cleared by TN govt

During second edition of GIM, Tamil Nadu has set a target to sign over 140 MoUs, committing an aggregate investment in excess of Rs 2.4 trn

The Tamil Nadu cabinet has cleared investment proposals worth Rs 65,000 crore, which are expected to be signed at the upcoming Global Investors Meeting (GIM) scheduled here for next week.

The proposals includes Hyundai's Rs 7,000 crore investment plan and Indian Oil Corporation (IOC) subsidiary Chennai Petroleum Corporation (CPCL's) Rs 27,450 crore project.

During today's three-hour long meeting, 10-11 investment proposals were cleared for around Rs 15,000 crore MoUs, taking the combined value of around 40 plans to Rs 65,000 crore, said a person who attended the meeting. This is the third meeting of the State Cabinet in the past 30 days.

It may be noted that during the second edition of GIM, Tamil Nadu has set a target to sign over 140 MoUs, committing an aggregate investment in excess of Rs 2.4 trillion, the amount the State claimed that the maiden summit in 2015 attracted.

The proposals includes CPCL's 9 million-tonne refinery in the Cauvery Basin, Nagapattinam in Tamil Nadu at a cost of Rs 27,450 crore.

The other proposal includes South Korean automobile major Hyundai Motor's Rs 7,000-crore project.

Hyundai's investment would be to increase production capacity at its facility near Chennai, new model launch and powertrain, electriccar and others. A memorandum of understanding (MOU) is expected to be signed between the State government and the company on the electric car project at the Global Investors' Meet to be held next week.

Hyundai will increase its production capacity by another 100,000 units, including 50,000 completely knocked down (CKD) units. It also plans to start manufacturing electric vehicles in the state within three years.

He said that at present, the capacity of the company's plant was 700,000 units per annum and that this would be expanded to 800,000 units, including 50,000 CKD units and another 50,000 completely built-up units. The proposed investment also includes the development of electric vehicles.

Hyundai officials earlier said that they met the Chief Minister, in November, and purpose of the meeting was to meet the chief minister, explain the new investments to him, and seek government support through tax incentive, power, water, and transportation, among other things.

The additional investment will create 700 new jobs, he added.

He added that the State government's single window clearance system would provide all required approvals in 30 days' time. The government received 46 applications under the single-window clearance scheme.