CHENNAI: Even as the global economy is struggling due to the COVID-19 pandemic, Tamil Nadu has emerged as a preferred investment destination with the state on Wednesday signing 17 Memorandums of Understanding (MoUs) involving an investment of Rs 15,128 crore having a potential to generate about 47,150 jobs.
The significant investments include Daimler India Commercial Vehicles' proposed expansion of its portfolio with an investment of Rs 2,277 crore generating 400 jobs.
According to a state government order, Daimler will be expanding its commercial vehicles plant at Oragadam, the third largest outside Germany.
Similarly, Salcomp, the Finland-based charger manufacturer, is investing Rs 1,300 crore in Chennai. This will create employment for 10,000 people, according to the Guidance Bureau, which handles investments in the state. The company has acquired the major portion of Nokia's facility at Sriperumbudur, near Chennai, which was closed due to an income tax dispute. In 2019, the company had signed an MoU worth Rs 500 crore with the Tamil Nadu government.
Similarly, Ashton Shoes Private Limited has entered into a joint venture with the Taiwanese company Chung Jye Shoes in the field of footwear manufacturing. The investment of Rs 350 crore is expected to generate 25,000 jobs.
Meanwhile, the state is also emerging as a data centre hub with Singapore-based ST Tele Media investing Rs 1,500 crore in a Data Centre in Siruseri while US-based HDCI Data Centre Holdings is also investing Rs 2,800 crore in a Data Centre. This comes as there is demand for more data centre space on account of rising digital
consumption patterns and significant increase of content delivery networks in the state.
Similarly, Polymatech Electronics from Japan is investing Rs 900 crore in a semiconductor chip manufacturing facility. The investment is expected to generate 600 jobs.
N Muruganandam, secretary, industries department, said, “With the highest number of factories in India, Tamil Nadu is not just India’s factory but a manufacturing ecosystem that connects global value chains. These investments are a testimony to the steady investment climate and export competitiveness of Tamil Nadu.”
“More investments are in the pipeline and the government is actively reaching out to investors to realize the potential of investing in Tamil Nadu,” added Muruganandam.
Tamil Nadu has also constituted a special task force to woo investments from China, Japan, South Korea, Taiwan, Singapore and the US. The state government is also developing a special package for investors relocating to India due to realignment of supply chains.
The MoUs were signed by Usha Kakarla, Managing Director and CEO, Guidance, and Dr Aneesh Sekhar, Executive Director, Guidance, in the presence of Chief Minister Edappadi Palaniswami and the industries secretary.