CHENNAI: Tata Motors has signed a memorandum of understanding (MoU) with Tamil Nadu government, committing an investment of Rs 9,000 crore to establish a cutting-edge vehicle manufacturing facility in the state, Industries Minister T R B Rajaa said on Wednesday. The proposed facility to be set up on 500 acres in Ranipet district would generate 5,000 jobs (direct and indirect), an official release said.
“With this investment, Tamil Nadu further solidifies its position as the unrivaled automobile capital of India, reminiscent of the transformative impact of Hyundai’s investment during Kalaignar’s tenure,” Chief Minister M K Stalin later said in a post on ‘X’.
Tata Motors CFO PB Balaji and V Vishnu, MD&CEO, Guidance Tamil Nadu, exchanged documents in the presence of the CM. Industries Minister TRB Rajaa, commerce and industries secretary Arun Roy, and senior officials of the Tata Motors Group were present.
Tata Motors Limited, a $42 billion organisation, is a leading global automobile manufacturer of cars, utility vehicles, pick-ups, trucks, and buses, offering an extensive range of integrated, smart, and e-mobility solutions.
With ‘Connecting Aspirations’ at the core of its brand promise, the company is India’s market leader in commercial vehicles and ranks among the top three in passenger vehicles segment.
Addressing reporters in Chennai, the minister said the facility will be a greenfield plant and the first manufacturing facility of Tata Motors in Tamil Nadu.
“We have offered good incentive for the company. But incentive alone is not a factor. Companies like Tata Motors also look at the available eco-system. Tamil Nadu is a rich state in automobile eco-system,” the minister said. Tata Motors said it would also employ women at the manufacturing plant.
This is the first time the state has attracted two big automobile investments within a span of two months, the minister said. Earlier, VinFast, Vietnam’s leading electric vehicle (EV) manufacturer, signed an MoU to invest $2 billion for setting up an integrated electric vehicle facility in Thoothukudi.
‘Stalin focusing on quality investments to ensure jobs’
The carmaker has allocated $500 million to set up first phase of facility over the next five years, the minister said. Hailing the Dravidian model, he said the state’s infrastructure, ease of doing business, safety for women, and high happiness index make large companies want to invest in the state.
Hailing the Naan Mudhalvan scheme, which is aimed at ensuring right skill training for students, the minister said the presence of skilled work force is attracting more global investors to TN compared to other states.
Rajaa said the CM is not keen on investments, but is focusing on quality of investments to ensure generation of quality jobs. DMK government has signed MoUs worth Rs 10 lakh crore with the aim to generate 31 lakh jobs.
On realising MoUs worth Rs 6.64 lakh crore, minister said, “Only 15% to 20% of investments were realised during previous editions. We are looking at possibility of realising at least 70% of investments.”