Tamil Nadu plans to take a big leap forward in industrial growth with Wednesday’s Global Investors Meet (GIM) by firming up investments worth over Rs. 1 lakh crore.
Across 12 sectors, companies and even countries have committed the investment, with the State government promising faster clearances of proposals and improving infrastructure, especially in the power sector. Of the investments promised, 40 per cent will come from the manufacturing sector and another 40 per cent from the energy sector, sources say. About 10 per cent investment will be by IT and ITES companies.
On Tuesday, the government signed MoUs with most of the companies at the TIDCO office. The MoUs will be showcased at the event.
“Our government is committed to making Tamil Nadu, a new growth model, among Indian States,” Chief Minister Jayalalithaa said in her invitation to the participants. The meet is seen as an opportunity for Ms. Jayalalithaa to prove a political point to her opponents ahead of the Assembly elections next year.
‘A great opportunity’
“This is a fantastic opportunity for Tamil Nadu. The event will help showcase the positive investment climate in the State, considering all States are competing for investments,” said Rajshree Pathy, chairperson, CII Southern Region.
“The State should, in fact, make this an annual event to bring in more investments. It will also help create millions of jobs. We require more investment in infrastructure, and also Coimbatore needs an international airport,” she said.
Preetha Reddy, executive vice-chairperson, Apollo Hospitals, said Tamil Nadu is one of the best places for investors, especially with work culture and integrity.
Tamil Nadu is already home to some of the biggest companies in the world, especially in the automobile sector. The State is home to over 50 Fortune 500 companies and has received $17 billion in Foreign Direct Investment in the last 15 years, according to official data.
The two-day event could also help Tamil Nadu overcome the setback of the closure of the Nokia plant that sent ripples across the industry. The government has set a target of 14 per cent growth a year under its Vision 2023 plan, with a target of attracting Rs. 15 lakh crore of investment in all the sectors by 2023.
The official also said that the Chief Minister leader Jayalalithaa had a final discussion about the MoUs to be signed with Industries Minister P Thangamani and State Industries Secretary C. V. Sankar. The State, on the other hand, is optimistic about the Rs. 1 lakh crore investment commitment that they had announced. Industrialists in the State expect that GIM would be a game changer.
Mr. Venu Srinivasan, Chairman and Managing Director of TVS Motor Company, said, “Every state is competing for investments and this is an opportunity for Tamil Nadu to showcase its strengths. We see small investments coming into the state at regular intervals. But it is good that big projects are coming at the same time during GIM.”
Mr S. N. Eisenhower, Chairman, CII Tamil Nadu, feels that GIM has come at the right time. “With the power situation turning good and schemes like Single Window Clearance the State has great potential to grow. This GIM will change the whole industrial ecosystem,” he added.
With just a day left for the Global Investors Meet, investors and industrialists have started arriving in large numbers. More than 400 international delegates have already reached Chennai.
Ms Nicola Bolton, Managing Director (Global Trade Operations), UK Trade & Investment, London, said, “The UK is delighted to be partner country for the first ever GIM. The UK remains by far the largest G20 investor in India.”
Global Inventors Meet (GIM) 2015 aims to attract more than Rs 1 lakh crore (USD16 billion) into Tamil Nadu. The government earmarked Rs 100 crore for this event. |
Around 100 MoU’s are expected to be signed during the two day event. |
More than 1, 50,000 jobs will be generated over the next three years. |
What the state is offering for investors – Single Window Clearance, Capital subsidy (upto USD375,000) and electricity tax exemption upto 5 years, Stamp duty concession–50% on lease or sale of land. 100% for ultra-mega projects, Environmental protection infrastructure subsidy–Upto USD 50,000. |
Industries set up in the southern districts (Madurai, Theni, Dindigul,Sivagangai, Ramanathapuram, Virudhunagar, Tirunelveli, Thoothukudi and Kanyakumari) will be eligible for a special package, higher than the package available for the rest of the State. |
The focus sectors of this event are Aerospace; Agro & Food Processing; Automobile and Auto Components; Electronic Hardware; Heavy Engineering, Infrastructure; IT & ITES; Renewable Energy; Skill Development; Textiles and Apparels; Pharmaceutical and Biotechnology; Chemicals, Petrochemicals and Minerals. |
More than 5,000 people including chambers of commerce, IAS officers, district officers and the police are involved in the preparations of GIM. |
