The second edition of Tamil Nadu Global Investors Meet (GIM) 2019 has garnered investment commitments to the tune of Rs 3.4 lakh crore which surpasses the state’s own targeted investment of Rs 2 lakh crore, News Today has reported.
The success of GIM is seen as shot in the arm for Chief Minister Edappadi K Palaniswami who has both managed to stave off repeated protests against industrial and infrastructure projects and appears to have convinced investors across India and the world to stay invested in the growth story of Tamil Nadu.
Addressing the valedictory session of GIM, presided over by Vice President M Venkaiah Naidu, Palaniswami on Thursday (24 January) said that 146 Memorandums of Understanding (MoUs) worth Rs 3.4 lakh crore were signed and investments are likely to create job opportunities for about 10.5 lakh people in the state.
Terming the second edition of GIM a “grand success” and announcing the state’s prioritised effort to launch electric car manufacturing facilities, Palaniswami added that the event has managed to exceed the targeted investment of Rs 2 lakh crore.
Palaniswami listed out major investment promises made in the GIM like:
- CPCL’s Rs 7,400 crore investment in Nagapattinam district for a petroleum refinery
- Adani Group’s 12,000 crore investment in sectors including ports and shipping
- South Korean automobile behemoth Hyundai’s fresh tranche of Rs 7,000 crore investment plan for production of electric cars in Tamil Nadu
- MRF’s Rs 2,100 crore investment proposal to expand the existing establishments in Perambalur and Vellore districts
- Foxconn’s Rs 2,500 crore worth plan to manufacture premium smartphones in the state
Palaniswami said, ”If the response we have received is any indication, GIM 2019 is not only a grand success but will be remembered as a historic event in the annals of industrialisation of Tamil Nadu.”
He further added that in the past three decades, Tamil Nadu’s economy has registered the strongest and sustained economic growth among all Indian states.
“It has become the second largest State economy in India, contributing 8.4 per cent to India’s GDP,” he added. Palaniswami noted that the state attracts the third highest Foreign Direct Investment in the country.
Tamil Nadu’s industrial base is diversified and holds a leading position in textiles, leather, automobiles and auto components, heavy and light engineering, electronics manufacture, information technology and information technology-enabled services, and Health Care, Palaniswami said.
The first day of the GIM saw several companies signing MoU with the state government and over 4,500 delegates, both existing and new investors, attending the event looking for opportunities to invest in the state.
Indian Oil has announced that it will invest Rs 16,641 crore in the state, creating direct and indirect employment for 20,000 persons.
Indian Oil, executive director (Tamilnadu and Puducherry), R Sitharthan said, “With a contribution of around Rs 6,800 crore to the State exchequer per annum, Indian Oil in Tamil Nadu would like to play a stellar role in the State’s growth”.
He signed a MoU with the government for an investment of Rs 7,941 crore over the next five years. This investment would generate direct employment opportunity for 9,200 people and indirect employment for around 10,600 people.
Japanese food processing and seasoning firm, Ajinomoto India Private Limited said they will launch their newest offering in the ‘Hapima’ range for the Tamil Nadu market.
Adani group has stood out as one of the leading investors in the state, having committed Rs 12,000 crore. Adani Ports and SEZs, CEO, Karan Adani said Rs 10,000 crore will be invested towards expanding port capacity in the state, and that the rest would go towards industrial estates, logistics and city gas distribution, over the next 10 years.
Korean automobile giant Hyundai has announced investments to the tune of Rs 7,000 crore in capacity expansion and various other projects including electric vehicles. With this, the company’s total investment in Tamil Nadu will rise to Rs 23,900 crore, making Hyundai the single largest automobile company to invest in one location in India.
Tyre maker CEAT also announced that it will be investing Rs 4,000 crore, while Ford inaugurated its new Rs 1,300 crore global technology centre at the summit.
Tamil Nadu government also unveiled its new ‘Aerospace and Defence Industrial Policy’ providing a plethora of sops to attract investment in the sector, The Hindu Business Line has reported.
Titled the ‘Tamil Nadu’s aerospace and defence industrial policy 2019’, it was released by the Union Defence Minister Nirmala Sitharaman at the inaugural session of the GIM on Wednesday (23 January).
The policy initiatives comes three days after the launch of Tamil Nadu Defence Industrial Corridor at Tiruchirappalli on 20 January. The state aims emerge as India’s defence and aerospace manufacturing hub.
Tamil Nadu, which is among India’s economic powerhouses, has built a successful automotive sector and is hoping to make inroads in the defence and aerospace sector.
It aims to attract investments worth $10 billion in the next ten years generating direct and indirect employment opportunities for 1 lakh people.
In the first edition of GIM, in 2015, the state government under the then chief minister J Jayalalithaa had signed 98 MoUs for Rs 2.42 lakh crore, over manufacturing and energy-related investments accounting for the bulk of the sum.
GIM 2019 focuses on attracting new investments in regions other than Chennai to ensure balanced industrial development across the state.