GIM 2019: Cor­po­rates reaf­firm their faith in Tamil Nadu

The Hindu Business Line - - NEWS - TE RAJA SIMHAN

More than the quan­tum of in­vest­ment, one clear out­come of Global In­vestors Meet 2019 held in Chen­nai last month is that ex­ist­ing in­vestors have re-af­firmed their faith in the State and its in­vest­ment cli­mate. As much as 90 per cent of the in­vest­ment pro­posed through MoUs dur­ing the meet are from com­pa­nies that al­ready have a pres­ence in the State.

The sec­ond edi­tion of GIM saw 304 MoUs ag­gre­gat­ing in­vest­ments to­talling over ₹3 lakh crore. Ma­jor com­pa­nies, in­clud­ing Chen­nai Petroleum (CPCL), Hin­duja Group, Royal En­field, Adani Group, Wheels In­dia, TVS Lo­gis­tics, Fox­conn and Hyundai, have com­mit­ted large in­vest­ments in the State. CPCL will in­vest ₹27,460 crore; Adani group ₹12,000 crore; and Hyundai ₹7,000 crore. Sec­tor-wise, man­u­fac­tur­ing saw the high­est com­mit­ment of ₹1.55 lakh crore fol­lowed by hous­ing at ₹49,980 crore, en­ergy at ₹48,199 crore.

“Over 90 per cent of the in­vest­ment was from ex­ist­ing in­vestors,” said V Arun Roy, Ad­di­tional Sec­re­tary, Govern­ment of Tamil Nadu & Spe­cial Of­fi­cer, GIM 2019. He also added that repeat in­vest­ment by ex­ist­ing in­vestor is real recog­ni­tion for the State. “Saint Gobain is do­ing its fourth ex­pan­sion and Hyundai its third,” he told Busi­nessLine.

The fo­cus on ex­ist­ing in­vestors was a con­scious strat­egy. Over 90 per cent of the in­vest­ments was from such in­vestors A con­scious strat­egy

Fo­cus on ex­ist­ing in­vestors was a con­scious strat­egy that the govern­ment fol­lowed this time.

“Many other States had started sell­ing them­selves well and Tamil Nadu, which had in­her­ent ad­van­tages, has now come back at last to pre­vent ex­ist­ing in­vestors from go­ing away. It is only a mat­ter of time be­fore this leads to new in­vestors mak­ing more in­vest­ments in Tamil Nadu,” R Di­nesh, Man­ag­ing Di­rec­tor, TVS Lo­gis­tics, and Chair­man of CII South­ern Re­gion, said.

He said that ex­ist­ing com­pa­nies com­mit­ting more in­vest­ments means that the MoUs will ac­tu­ally be im­ple­mented and jobs cre­ated than the prom­ise of large in­vest­ments by new com­pa­nies, which may not fruc­tify.

Un­fazed by Ster­lite

Roy also rub­bished claims that the Ster­lite is­sue (the shut­ting down of the Vedanta Ltd cop­per smelt­ing unit) would hurt the in­vest­ment sen­ti­ment in the State. “If Ster­lite was an is­sue stop­ping new play­ers from com­ing to the State, then it should equally scare away ex­ist­ing in­vestors. With GST, the place of pro­duc­tion does not mat­ter for tax pur­poses. Com­pa­nies like TVS, MRF, LMW and Chemplast could eas­ily have moved to neigh­bour­ing States,” he said.

How­ever, the State has at­tracted some new big names such as Groupe PSA, TPI Com­pos­ites (USA), Luxshare of China and IKEA to name a few, Roy pointed out.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.