Tamil Nadu expects $3 bn in auto sector

State govt likely to sign MoU with two car companies.

Tamil Nadu, considered the Detroit of India, would further consolidate its strength in the automobile industry with the expansion of two automobile companies in the state. The state government is likely to sign an MoU with two car companies for their expansion in the next two weeks.

According to a senior official in the department of industries, the Tamil Nadu government has approved three more proposals involving a cumulative investment of $1.6 billion.

"Two automobile companies are setting up brownfield projects, while one company is setting up a greenfield project in the state. We have prepared the MoU documents and the chief minister is likely to sign them in the next two weeks," M Velmurugan, director, Guidance Bureau, Industries Department, Tamil Nadu, said.

Talking to reporters here on Tuesday, he said the state was expected to get an investment of $3 billion in the automobile sector during the next couple of years. Already 15 auto and auto-related companies have their presence in Tamil Nadu.

While on the auto front, TN is moving into top gear to take on the stiff competition from Maharashtra, the state is also ramping up its efforts to boost the IT industry.

C Umashankar, managing director, Electronic Corporation of Tamil Nadu Ltd, said the TN government expected an investment of about Rs 20,000 crore from various IT and electronics companies in the next two years. The government is setting up a new IT park spread over 192 acres at Hosur near Bangalore which is expected to get an investment of Rs 2,000 crore, he said.

"The government is working in a big way towards IT-SEZs in the state. About 2,340 acres of government land across the state have been taken over and earmarked for development of IT industries," he said.

The state is aiming at a growth of 50 per cent in its software exports during the present financial year.