CHENNAI: South Korean electronics giant Samsung will invest Rs 1,000 crore to expand its existing manufacturing facility in Sriperumbudur, Industries Minister T R B Rajaa said on Friday.
The announcement comes in spite of the strike by employees of the company associated with CITU-backed union previously and the issue is yet to be fully settled. The decision to invest despite that underscores the company’s continued confidence in Tamil Nadu’s workforce, Rajaa said.
On Samsung, he alleged that there were attempts to divert the investments coming to Tamil Nadu to other states, “thinking it was an opportunity to fish in troubled waters.
However, it was only due to proper handling of this issue by the chief minister that the workers returned to their jobs,” he said. Importantly, Rajaa also announced in the Assembly the setting up of a Taiwanese Industrial Park with an eye on attracting Rs 10,000 crore in investment and generating 20,000 jobs.
“Taiwanese investment already forms a critical part of the state’s FDI profile,” Rajaa said, adding that the park is intended to support their vendors and bolster long-term manufacturing commitments.
Addressing the media later, Rajaa said MoUs valued at Rs 6,64,180 crore were signed at the 2024 Global Investors Meet (GIM). In India, he said, typically the conversion rate of MoUs to actual investments is around 25% to 30%. However, Tamil Nadu has achieved an extraordinary conversion rate of 72%, surpassing its own initial target of 50%.
“I predicted last year that we would exceed 50%, and we went beyond that to 60%. When I shared this with our CM, he asked when we would reach 70%. I assured him it would be soon. Today, we have surpassed even that,” said Rajaa. Since 2021, Tamil Nadu has secured investments worth Rs 10,27,547 crore, with 722 of 897 MoUs already materialising into tangible projects.
Interestingly, Rajaa highlighted how southern districts, which traditionally lagged behind in industrial growth, have attracted 30.32% of the total investments coming to Tamil Nadu in the last four years. Other key announcements made in the Assembly included the setting up of Guidance Desks in the US, Germany, South Korea, and Vietnam to assist investors.
The state will promote decentralised industrial growth by developing new SIPCOT industrial parks in Kallakurichi, Tenkasi, Sivagangai, Vellore, and Tirupattur. These projects together are expected to bring investments exceeding Rs 2,400 crore and 22,000 jobs. In the under-industrialised coastal district of Nagapattinam, a mini TIDEL Park will be set up to generate 600 IT-sector jobs. Additionally, Rs 120 crore will be allocated for industrial housing to accommodate 2,000 workers in the industrial belt in Kancheepuram.
The Tamil Nadu Industrial Investment Corporation will waive inspection fees for term loans during the current financial year, benefiting approximately 1,300 micro, small and medium enterprises. New policies on warehousing and marine food processing are also expected. A seafood export park in Thanjavur is planned with an investment of Rs 200 crore.