Industrialists in Tirupur and Coimbatore, who had exhibited keen interest in investing in the proposed Chamarajanagar Industrial Estate in neighbouring Karnataka, are now having second thoughts as the Tamil Nadu Government is keen on retaining investments here.
Last month, Karnataka Chief Minister Siddaramaiah had wooed industrialists inwestern Tamil Nadu at a road show in Coimbatore promising them sops to invest in his State. Initially, around 200 industrialists had evinced interest to pump in around `12,000 crore in Karnataka.
However, with a view to retain these investments in Tamil Nadu, the State government had held talks with the industrialists following which they are now unlikely to move out. Even in the State Assembly the Industries Minister had allayed fears that the money would go out of Tamil Nadu.
“Five members of our association planned to invest in Chamarajanagar. However, since the Tamil Nadu government has assured to provide us support and required facilities, we have held back the proposal,” South India Corrugated Box Manufacturers Association (Coimbatore Chapter) vice president Sivakumar told Express.
A group of knitwear garment exporters from Tirupur had also announced investments in Karnataka as
they hoped that it would emerge as a support hub for Tirupur.
However, now indications are that they may not jump at the idea. The industrialists have been assured that they would soon get uninterrupted power supply and other allied infrastructural needs.
In this backdrop, The Tirupur Exporters And Manufacturers Association (TEAMA) and the South India Hosiery Manufacturers Association (SIHMA) have urged the State Government to take immediate measures to help the expansion of the Tirupur knitwear hub with all the needed facilities. This would prevent the industries from investing in other States.