GIM projects worth Rs 16,000 crore mired in approval issues across Tamil Nadu
By C Shivakumar | Published: 21st March 2017 04:24 AM |
CHENNAI: The state may have attracted a total of Rs 2 lakh crore worth investment during the global investors meet (GIM) but several projects are mired in several issues including delay in getting the required approvals.
According to information available with Express, nearly two-thirds of the total Rs 24,000 crore worth investments are yet to be realised due to various issues such as identification of land and other approvals from different government agencies.
Official sources said only Rs 8,000 crore worth projects have been realised so far and Rs 16,000 crore worth projects are getting delayed for various reasons.
For some projects, the delay is due to pending allotment of land while for some projects, the developers were yet to submit proposals to the planning agencies. A few projects are also not realised because they are planned on wetlands and hence require clearance from the Collectors concerned.
Taiwan-based Delta Electronics was to invest Rs 4,000 crore in setting up power supply manufacturing plant and product development centre in India which could generate 5,000 jobs but then the state Industries Department says that they are yet to get the proposal. It seems the proposal was to come up on 120 acres of land. Sources said that 60 acres of land had been handed over and another 60 acres is yet to be allotted.
The Rs 2,700-crore expansion project of Apollo Tyres at Oragadam has been delayed as the Directorate of Town and Country Planning is yet to give approval to the project. It is learnt that the file is pending as the DTCP is expecting an “eDCR” report from Apollo Tyres. eDCR is a mechanism which efficiently integrates graphical data with application data, compares them against development control rules and generates compliance reports. It is learnt that Apollo Tyres has already invested Rs 1,362 crore for the project.
Similarly, the Rs 4,500-crore projects of tyremaker MRF in Permabalur to manufacture truck and car tyres has been hit over approval issues.
Official sources that the existing buildings of MRF are not approved. It is learnt that MRF has encroached on the poromboke ‘odai’ and the issue is yet to be resolved by the government.
The Rs 925-crore industrial park proposal by Mahindra Industrial Park Chennai Ltd, a Special Purpose Vehicle floated by Mahindra World City Developers Ltd and Sumitomo Corporation of Japan in North Chennai has been delayed as the industrial layout was received by the Directorate of Town and Country Planning without a wetland NOC from the Collector.
It is learnt that the project also has to get Public Works Department permission for culverts and No Objection Certificate under land reforms.
Cognizant which has entered into an memorandum of understanding with the state government to invest Rs 1,000 crore over five years to expand its delivery infrastructure in Kancheepuram and Coimbatore, is yet to get its building plan approved in Coimbatore. The Directorate of Town and Country Planning has said that it has yet to receive proposal for the Kancheepuram site.
Sources say that most of the global investors meet proposals are delayed by planning agencies as they have vested all powers with them. “They should rather devolve powers to local bodies and monitor the projects,” said sources.