TaMo drives into TN with Rs 9,000 cr plant
CHENNAI: In a major boost for Tamil Nadu’s claim as one of the best investment locations, Tata Motors on Wednesday inked a Memorandum of Understanding (MoU) with the State government to invest Rs 9,000 crore for establishing a vehicle manufacturing facility in Ranipet district.
This is the second big-ticket investment that the State bagged in as many months, coming as it does weeks after Vietnamese firm VinFast Auto Limited announced a massive Rs 16,000 crore investment to manufacture electric vehicles at a plant in Thoothukudi.
The proposed facility at Ranipet would generate 5,000 new jobs, an official release here said. Tata Motors CFO PB Balaji and V Vishnu, MD&CEO, Guidance Tamil Nadu, exchanged documents in the presence of Chief Minister MK Stalin and Industries Minister TRB Rajaa.
Speaking on the investment, Stalin said, “With this investment, Tamil Nadu further solidifies its position as the unrivalled automobile capital of India, reminiscent of the transformative impact of Hyundai’s investment during Kalaignar’s regime.”
Briefing reporters later in the day, Rajaa said the investment showcased the investor-friendly climate in the State. “It is a historic day. I think no other states have made such announcements within two months of the time soon after conducting the Global Investors Meet (in January). Tata Motors is going to set up their first ever manufacturing unit in TN. The ground breaking ceremony will take place in the coming months,” he said.
Of the 5,000 jobs, majority of the candidates would be women, he said.
Asked whether the company was taking over the manufacturing facility of US automaker Ford’s defunct unit at Maraimalai Nagar, the minister said, “no, they are not”.
On what kind of incentive was offered to Tata Motors, Rajaa explained it was not just the incentive, but companies look for the kind of ecosystem available in Tamil Nadu, the infrastructure, availability of talent pool and ease of doing business.