The Tamil Nadu government is targeting to sign MoUs to the tune of around Rs 3 trillion during the upcoming second edition of the Global Investors' Meet (GIM).
The target is higher than Rs 2.42 trillion signed in the first edition of the meet in 2015, said K Pandiarajan, state minister for Tamil Official Language, Tamil Culture and Archeology.
While after Goods and Services Tax (GST) implementation state's ability to offer incentives has been affected, the inherent strengths with Tamil Nadu will help it to attract the investments, he added.
"Our target is to overtake the Rs 2.42 trillion that has been achieved in the first edition of GIM and reach Rs 3 trillion in this GIM. We are confident that we can achieve this target," said the minister while speaking to the reporters on the sidelines of AutoSreve 2018, a conference on automotive aftermarket organised by the Confederation of Indian Industry (CII).
Commenting on whether the negative reports on the declining investment in the state could affect the investments during GIM, he said, "When leading up to the first edition of GIM, we did not have a single large project. Now Hyundai's investment is around Rs 60 billion, CEAT is investing Rs 30 billion. So we have two large anchor investors. We have announced the Tidel Park, an industrial park in Avadi, where around 30,000 people could get employed. We have never faced the GIM with such a build up."
"The state has the advantage of strong anchor players coming into Tamil Nadu and making the investment. There has been major initiatives towards attracting investment through GIM. The government has conducted roadshows in 26 countries led by the Industries Minister, the minister for MSME and others. Presentations have been made in various states, including Gujarat. We believe that there is a significant response."
Several companies have already committed to participate in the investors' meet, he said. In the last edition, 98 Memorandum of Understanding (MoU) were signed for an investment of Rs 2.42 trillion.
The government had earlier commissioned a foreign institute to study the competitive advantage of small-scale sector in Tamil Nadu. Study is underway under the Planning Department.
"Despite all kinds of environmental issues, projects have moved in Tamil Nadu, such as the North Chennai Power Project or the Port project of the L&T Kattupalli. So I think companies will come looking at us very keenly," he added.
According to reports quoting officials from the government, only 25 per cent of the projects committed in the first edition of GIM has become a reality till September.