Tamil Nadu attracts Rs 1.74 lakh crore in 18 months

The state of Tamil Nadu has attracted an incremental investment of over Rs 1.74 lakh crore in the last 18 months. With these, the investments, which are in the pipeline in Tamil Nadu stand at around Rs 9.25 lakh crore in September 2012, as against Rs 7.50 lakh crore at the end of March 2011.

Speaking at the MoU signing ceremony with 12 companies, which would bring investment to the tune of around Rs 20,925 crore to the state, Tamil Nadu Chief Minister J Jayalalithaa said that investments in the pipeline in Tamil Nadu stand at Rs 9,25,285 crore in September 2012, as against Rs 7,50,579 crore at the end of March 2011.

This implies that Tamil Nadu has attracted an incremental investment of Rs 1,74,706 crore in the last 18 months.

“If we go by past trends, this marks a quantum jump in investment flows into Tamil Nadu. This includes a substantial amount of investments in Infrastructure projects such as power generation & distribution, road improvement, water supply augmentation, port development, health care, education, etc. All these will substantially improve the quality and reliability of our infrastructure and strengthen our competitive advantages in attracting investments into the Manufacturing Sector”.

The Chief Minister noted, the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India publication titled SIA Statistics published in June 2012, Tamil Nadu has attracted Rs 4,01,537 crore of investments in the Manufacturing Sector as against Rs 3,33,010 crore at the end of April 2011. The Incremental investment attracted by Tamil Nadu in the 14 months period from May 2011 to June 2012 is Rs 68,527 crore.

“This is testimony to the fact that the investment environment in Tamil Nadu is very conducive to growth and expansion. Once again,Tamil Nadu is emerging as the destination of choice for making investments”.

“FDI is often a double-edged sword, and the Government needs to handle it, dexterously. FDI in some fields is purely based on private rationality with the underlying principle Private gain at social loss. The recent decision of the Government of India to open up our retail business to FDI is one such example, fraught with the danger of destroying our small business ventures that provide jobs to millions of our people,” said the Chief Minister, who objected the FDI in retail earlier.

She further said that Tamil Nadu Government is planning to introduce new policy reforms that include a New Industrial Policy, Automobile and Auto Parts Policy, Aerospace Industry Policy, Biotechnology Policy and much more.

The Tamil Nadu Solar Energy Policy 2012 promoting solar and wind power projects has been unveiled on the October 20, 2012. The Automobile and Auto Parts Policy to be shortly released. “We are confident of attracting over Rs 1 lakh crore of new investments, in the Manufacturing Sector, surpassing all records and achievements made so far. I am confident of making Tamil Nadu the “numero uno” in all spheres of development.

Industry speaks:
R Sethuraman, director – finance and corporate affairs, Hyundai Motor India Ltd, which signed MoU to invest Rs 4,000 crore investment in the state today, said that power is not a constrain and the company has enough power supplies. His comment was in response to a question whether the lack of power in the state is a concern.

It may be noted, the state is currently facing power shortage to the tune of around 4000 mega watt (MW).

Anand Mahajan, general delegate, Saint Gobain said that many states are facing the power issue and it is not a big concern for the company. The company today signed a MoU to invest Rs 400 crore investment.

B G Raghupathy, CMD, BGR Energy Systems Ltd said that this would be the right time for the company to set up the facility, as the demand for power equipments is increasing considering the number of projects coming up in the state and in the country.

BGR Energy Group, is a JV between BGR and Hitachi, has got its nod for Rs 2,325 crore proposal to set up a boiler, turbine and generators manufacturing facility at Cheyyar.

O P Lohia, CMD, Indo Rama said that by the company's production facility goes on stream, the power crisis should get over and even as of now it is not having so much of effect on industries. The company signed a Rs 4500 crore for setting up a synthetic Fibre and petro chemical manufacturing plants at Chennai, Ennore and Coimbatore.