CHENNAI: Tamil Nadu was considered the most favoured destination for investors even though investments fizzled out during the first three months of the financial year due to the pandemic, according to a report. As per the report released by Projects Today, 17 memorandums of understanding (MoUs) worth 18, 236 crore were signed by the state government in May 2020, cornering around 18.63 per cent of the total fresh investment during the first quarter of the financial year thus topping the the list of states in wooing investments.
This also comes due to a series of initiatives launched by the state government’s industries department and Chief Minister Edapaddi K Palaniswami writing regular letters to top honchos across the world to invest in the state by offering various incentive packages. The report stated that during the Covid-affected three months (April-June 2020), the country saw announcement of 1,241 new projects entailing a total investment of Rs 97,859 crore. During the similar period a year ago, the country had seen announcement of 2,500 new projects worth Rs 3,86,673 crore.
The report also highlighted developments in the infrastructure segment where in setting up of five data centres worth Rs 7,400 crore was announced. Of the five, three were to come up in Tamil Nadu and two in Maharashtra. Even the machinery sector saw announcement of 16 new projects worth Rs 3,678 crore. This included the Rs 2,000-crore windmill equipment manufacturing unit of Vivid Solaire Energy and the Rs 900-crore semiconductor chips project of Polymatech Electronics in Tamil Nadu. Both projects were part of the 14 MoUs signed by the Tamil Nadu government on May 27, 2020.
Of the four automobiles projects, notable was that of Daimler India Commercial Vehicles. The company plans to set up Rs 2,277-crore commercial vehicle projects at Oragadam in Tamil Nadu. The power sector attracted 49 projects with commensurate investment of Rs 8,774 crore. The proposed investment was spread across, almost equally, among the thermal, hydel and solar power sectors. A 750 MW gas-based power project of Chennai Power Generation Project at Ponneri, Tiruvallur in Tamil Nadu at a cost of Rs 3,000 crore was the largest power project announced in first quarter of financial year 2021.
The report also stated that private sector’s share in the total investment across the country, which was inching closer to the 50 per cent mark in the preceding three quarters, came down sharply to 39.1 per cent in the first quarter of the financial year. Sectors which attracted over Rs 1,000 crore of investment include pesticides, steel, machinery and electronics, automobiles, power, real estate and data centres.
Bottomline
As per the report released by Projects Today, 17 MoU worth Rs 18, 236 crore were signed by the state government in May 2020, cornering around 18.63 per cent of the total fresh investments in first quarter