Tamil Nadu inks 12 MoUs worth Rs 20,925 crore

Major automobile investment led by Hyundai's investment of around Rs 4,000 cr will be setting up an engine plant, on new models and others

The Tamil Nadu Government today signed 12 MoUs with different companies from various sectors, these MoUs would bring investment to the tune of around Rs 20,925 crore and would create around 1.36 lakh jobs, both directly and indirectly.

The MoUs were signed in front of Tamil Nadu Chief Minister J Jayalalithaa today at Chennai. The companies include Hyundai Motors India Ltd, Indo Rama Group of Companies, ADD Industrial Park (TN) Ltd, BGR Energy Group Companies, Harsha Group of Companies, Saint Gobain Glass India, Danfoss Industries Pvt Ltd, Nokia India Pvt Ltd, Sanmina-SCI India Pvt Ltd, Tube Investments of India, Amway India Enterprises and TVS Group Companies.

The major automobile investment was led by Hyundai's investment of around Rs 4,000 crore will be setting up an engine plant, on new models and others.

R Sethuraman, director – finance & corporate affairs, Hyundai Motor India said that duration of the MoU is for seven years and the company has already started the investment. The investment is to increase engine capacity at Sripermbudur unit, near Chennai, by around three lakh flexible engines. At present the engine capacity is around six lakh units.

TVS Group investment of around Rs 700 crore is to expand Sundaram Clayton Group, which is the holding company of TVS Motors Ltd, Padi and Oragadam facilities. These includes expanding TVS Motors two-wheeler production to 2 million from 1.35 million units per annum and SCL's auto components facilities.

BGR Energy Systems Limited MoU is to set up a manufacturing facility for supercritical boilers, Turbine and Generators in technical collaboration with Hitachi Japan and Hitachi Europe. The project would attract investment of around Rs 2,750 crore.

Both the partners – BGR Energy and Hitachi – will be investing Rs 2,750 Crore in establishing manufacturing facilities for BGR Boilers Private Limited and BGR Turbines Company Private Limited, at two locations in Cheyyur Taluk, Kanchipuram District, Tamil Nadu.

These facilities is expected to create direct employment to 2400 people and indirect employment to over 10000 people. The manufacturing facilities are expected to be ready for operation in phases from the last quarter of 2013-14. BGR energy has already secured 6x660MW orders from NTPC for super critical boilers and 4x800MW orders for Turbine and Generators with an order pipeline aggregating to Rs 7961 Crore.

BGR Boilers Private Limited is a Joint Venture company, with 70% equity participation by BGR Energy Systems Limited and 30% by Hitachi Power Europe, Germany and has collaboration for manufacture of 660MW, 700MW 800MW and 1000MW super-critical boilers.

BGR Tubines Company Private Limited is a Joint Venture company with 74% equity participation by BGR Energy Systems Limited and 26% by Hitachi Limited, Japan and has Collaboration for manufacture of 660MW, 800MW and 1000MW Steam turbine and generators.

The other major investments include Danfoss (Rs 500 crore), Sanmina-SCI (Rs 250 crore), Nokia (Rs 250 crore), Amway (Rs 300 crore), Saint Gobain (Rs 400 crore) and Rs 3100 crore ADD Industrial Park which will set up a textile park in Coimbatore.