Business Standard

TN continues efforts to boost industrialisation through GIM,


Press Trust of India Chennai
Known as a manufacturing hub, Tamil Nadu continued with its efforts to boost industrialisation through the Global Investors Meet and sector specific policy in 2019, though overall economic slowdown put the brakes on automobile production, prompting even some auto giants to go slow by declaring non-working days for their factories.
A host of auto manufacturing and ancillary units in Chennai's neighbourhood have earned the city the moniker of "Detroit of South Asia" after the US city, but 2019 virtually hurt the order books of many companies in the backdrop of the slowing economy and a dip in sales.
Rollout of new policies such as in Electric Vehicle segment (EV policy), successful conduct of the second Global Investors' Meet and Chief Minister K Palaniswami and his deputy O Pannerselvam's foreign trips to woo investments seemed to show the government's keenness in drawing more investors to the state.
Hit by the slowdown in the economy, the auto sector adopted measures to manage the situation. Companies declared non-working days for their factories in the state following the overall slowdown in the industry.
Automobile majors, including commercial vehicle maker Ashok Leyland and TVS Group company Sundaram-Clayton, among others, declared non-working days at their manufacturing units in Tamil Nadu to adjust production in line with market demand.
Tamil Nadu will see a host of new industrial projects go on stream in 2020, following government impetus to make the state a favourable destination for businesses.
As part of it,the government rolled out industry friendly policies and also signed a record Memoranda of Understanding with various corporates in 2019.
The second edition of GIM in January saw various companies committing investments to the tune of Rs three lakh crore.
The maiden edition of GIM was held in the presence of late Chief Minister J Jayalalithaa in September 2015.
Palaniswami also undertook a tri-nation tour in 2019 as part of attracting investments to his state.
During his tour of the U.S., UK and Saudi Arabia, pacts were signed with various companies attracting Rs 8,835 crore investments, which would provide employment opportunities to over 35,000 people.
Besides promoting investments, the government also unveiled a new EV policy aimed at attracting Rs 50,000 crore investments and creating 1.5 lakh new jobs.
This is an initiative to encourage companies engaged in manufacturing of electric vehicles and components.
The EV policy unveiled by Palaniswami aims to create a comprehensive ecosystem in Tamil Nadu and also encourages companies to set up office in the state.
Taking a cue from the Government's initiative, Korean auto-major Hyundai Motor unveiled its first electric car 'KONA', priced at about Rs 24 lakh (ex-showroom).
The firm has two manufacturing facilities at neighbouring Sriperumbudur.
To promote EVs in public transport,the government flagged off an electric bus and also the first set of electric auto-rickshaws for public use.
During his tri-nation tour, Palaniswami exchanged documents with Dubai-based KMC Group and M Auto Electric Mobility.
The two companies have jointly planned to set up an unit near Chennai at an outlay of Rs 100 crore to convert autorickshaws that run on petrol to battery-operated vehicles.
On the status of MoUs signed during the second edition of GIM, the state government said 53 companies have commenced commercial production, while 219 projects were under various stage of implementation.
Besides GIM and those investments committed during the Chief Minister's foreign tour, the state government also inked more pacts worth Rs 19,000 crore.
The investments from companies include those present in Japan, Germany, South Korea, USA and UAE.
As part of encouraging students from Tamil Nadu meet the expectations of industry, the state government announced a new initiative in which the Tamil Nadu Skill Development Corporation and Industries department would identify the skill sets needed by the corporates.
The Tamil Nadu Skill Development Corporation, in partnership with the industry, has formulated Apex Skill Development Centres to impart skill training.
The initiative would further improve the state's position as skill capital of the country, government sources said.
The Indian Institute of Technology, Madras, signed a knowledge partnership with Defence Research and Development Organisation (DRDO) for the proposed Tamil Nadu Defence Industrial Corridor that would make State as an aerospace and defence manufacturing hub.
Finance Minister Nirmala Sitharaman, who was earlier the Defence Minister, inaugurated the Tamil Nadu- defence Corridor in January, aimed at enabling the nation take a step forward to boost indigenous production of defence equipment.
Total investments worth over Rs 3,038 crore in the defence corridor were announced in the following months.
In the banking sector, city-headquartered Indian Bank merged with Allahabad Bank as part of Government's initiative.
The move to merge the two banks followed the Centre's decision to consolidate 10 State-run banks into four large- scale lenders.
On the real estate front, industry officials said the sentiments of people in the sector would start consolidating slowly and improving as 2020 progresses.
"It is expected to be a turnaround year for real estate. While commercial real estate will continue to shine, residential will show green shoots of revival", city-based Navin Constructions Managing Director M Kumar said.

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First Published: Dec 29 2019 | 3:25 PM IST

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