'Not just Tesla, TN may be the most preferred state for any big investor'

T R B Rajaa, the Minister for Industries, Investments and Commerce, Tamil Nadu government, is targeting $6 billion of investments in the EV sector in the near future

At a time when Tamil Nadu topped the list of electronics exports in the country, the state is also betting big on the electric vehicle (EV) segment to bring in more investors and increase its revenue. T R B Rajaa, the Minister for Industries, Investments and Commerce, is targeting $6 billion of investments in the EV sector in the near future. In an exclusive interview with Shine Jacob, he adds that the state will ensure that promises to the industry are met. Here are some edited excerpts:

You have lined up plans to attract $6 billion in investments and create 150,000 jobs in the EV sector. Who are the new players showing interest in Tamil Nadu?

Lots of new investments are lining up in the EV sector. We will not be able to give names right now. This is an announcement that my Chief Minister has to make. I will just say that some of the biggest names are in talks with us. It is because of the already thriving ecosystem in Tamil Nadu. We are the auto capital of India and now the EV capital of India as well. Our aim is to become the EV capital of the world.

In addition to the existing auto ecosystem, we have a thriving electronics ecosystem, which is vital for the EV sector, as it is 70 per cent electronics. Our strengths are in both sectors. Because of the combination, Tamil Nadu will be the automatic choice for any big investor. Looking at the strengths of states, we have the best infrastructure, education and skilling sector, and we have excellent port connectivity. We check all the boxes of any big-time investor. We have a very good share of women workers also. What more do you want as an investor? When you come, you are just plugging into the system.

Tesla is scouting for a location in India for the manufacturing of cars and batteries. Is Tamil Nadu’s EV ecosystem equipped to host such a global player?

Tamil Nadu is the most preferred state for any big investor. Not just Tesla, but for any investor who wants to set up shop. This is because of the existing infrastructure. It makes things easier for them as the state is already robust in growth. It is the number one and we have a fantastic chief minister, who is heading a very stable government. We are one of the very few states in India with policy continuity, even if governments change. Investors are very satisfied with that point. We care more about the numbers that any investor brings in and it doesn’t have to be about just one name. We are after jobs, not names. It is about adding more revenue to the state too.

People may call it conservative, but we are a state, which is not desperate for any investor. We play to our strength. We are very keen on investments, but will not give them promises which are not deliverable like some of the other states or countries do to lure investors. We offer what is possible and deliver 100 per cent on our promises to investors.

Anyone who has invested in Tamil Nadu keeps reinvesting in Tamil Nadu, like Hyundai. Some of our biggest local names are very happy with their Tamil Nadu investments and they are happily investing again. The investors who are already here are our biggest advertisers. That is our marketing strength.

Six cities have been earmarked for development as EV hubs. What do you mean by EV hubs?

An EV owner would like to have charging stations at several places. We will very soon have a boost for the EV charging industry across the state – initially across all the state and national highways. Then going forward on interior parts of the state as well.

We are developing six cities -- including Chennai, Coimbatore, Tiruchirappalli, Madurai, Salem, and Tirunelveli – to be EV ready. We will also make sure that there is charging infrastructure available in public places. We are working across departments to make sure that the real estate sector also plays along with us, maybe by giving space for EV charging in large scale developments. Making it EV ready basically means having adequate charging infrastructure.

What are the steps being taken to improve the charging infrastructure across the state?

Around 68 per cent of all EV two-wheelers sold in India are from Tamil Nadu. That itself shows the strength of our EV industry. We have taken all the responsibility to get the infrastructure in place. We are also trying to help them by increasing demand. We are making sure demand for sales has also increased. The bulk of EV two-wheelers manufactured here are sold outside Tamil Nadu. We want to correct that and also want to make sure that the conversion from internal combustion engine (ICE) to EV happens faster in the state. The vision of our chief minister is to make Tamil Nadu the fastest growing EV market also. We are working towards that.

One such step was the recent out order in which the government of Tamil Nadu stated that all passenger vehicles which are battery-operated (like e-auto-rickshaws, e-taxis, and private electric vehicle buses) or passenger vehicles that are driven on methanol or ethanol fuel, shall be issued permits by the Transport Department without a permit fee. We will now immediately see the commercial vehicle sales pick up.

We are also big in renewable energy. Very soon, we are going to announce a very big investment in the green hydrogen space. For the EV industry, renewable investments will be very attractive. When you are powered by renewables, that is truly an advantage for the sector.

A lot of non-leather players are shifting to India. Are there other sectors that you are focussing on at this point?

Non-leather footwear is giving us a lot of jobs. We want to take that industry into deeper Tamil Nadu. Probably into South Tamil Nadu and the Delta region. We can give jobs to people who are living in the periphery of the Delta. It is a job creation sector, one single player has given jobs to 40,000 people in one unit alone. That is huge and we want investors from areas like Taiwan.

We are already number one in electronics. Renewable energy, green hydrogen, and chip manufacturing are some other sectors that we are looking aggressively at.