Tata Electronics to sign deal worth over Rs 12,000 cr with TN govt: Report

Tata Electronics is set to formalise a significant Memorandum of Understanding (MoU) valued at Rs 12,082 crore with the Tamil Nadu government, according a report by the Economic Times. The agreement is expected to be inked during the Tamil Nadu Global Investors Meet 2024 in Chennai, inaugurated by the Chief Minister M. K. Stalin and Union Minister Piyush Goyal on 7 January.

During the summit, chief minister Stalin expressed that the state is witnessing a significant influx of investments. As per the ET report, the Tamil Nadu government has signed major investment pacts with JSW Renewable, TVS Group, and Mitsubishi Electric, amounting to Rs 12,000 crore, Rs 5,000 crore, and Rs 6,180 crore, respectively. 

"The Tamil Nadu government will support investors in every way possible," the CM further said adding that it sought to play a major role in country's growth.

As per reports, Pegatron, Apple's Taiwan supplier, is also expected to invest Rs 1,000 crore to expand production. In addition to this, Hyundai Motors has also committed Rs 6,180 crore, a part of the investment will be utilised for electric vehicle (EV) battery and car manufacturing. Earlier on Saturday, Vietnamese EV maker VinFast announced to set up its first manufacturing facilities in India and work toward an investment of up to Rs 200 crore in Tamil Nadu.
These pacts, unveiled at meeting of global investors during the summit, are projected to generate thousands of jobs in the state.
 

Reports suggest that Tata Electronics is gearing up to invest Rs 7,000 crore in the expansion of its Hosur plant, spread over a six-year timeline. This move aligns with the Tata's strategic plans for growth and development.

Notably, in November 2023, the Tata Group had finalised a binding share purchase agreement with SMS InfoComm (Singapore) and Wistron Hong Kong Limited. This agreement marked the acquisition of a 100 per cent equity stake in Wistron Infocomm Manufacturing (India), propelling the Tata Group into the Apple supply chain as an official iPhone assembler.

About Tamil Nadu Global Investors Meet (TNGIM) 2024

TNGIM 2024, the flagship event of the Government of Tamil Nadu, is being held in Chennai from 7 to 8 January. 

"Tamil Nadu is a state of culture and beautiful products like Kanchipuram sarees and temples adorning different paths of the state. I am delighted that TN has taken an ambitious vision to be a $1 trillion economy by 2030,"  Commerce Minister Piyush said during the inauguration today.  At behest of the event, Taga Masayuki, Consul-General of Japan in Chennai, said, "We are happy that Japan is a very important partner for infrastructure development. In Tamil Nadu also we are supporting Chennai Metro and other projects. So, I hope our cooperation will be further strengthened."

The summit is expected to bring together global investors, thought leaders, policymakers, and academia to have a discussion on making Tamil Nadu a trillion-dollar economy in a sustainable and inclusive environment.

(With inputs from Reuters)