The Hindu : Tamil Nadu News : Industrial promoters reassure commitment in spite of recession

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Thursday, Jun 11, 2009
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Tamil Nadu

Tamil Nadu

Industrial promoters reassure commitment in spite of recession

N. Anand

As of now, no one has backed out, says a top government official

Government has cleared four projects with an investment proposal of Rs.2,000 crore recently
This year too, the State is likely to attract around Rs.30,000 crore as investments

CHENNAI: Even in the face of global recessionary trend and slowdown, promoters have reassured their commitment of fulfilling their promises to implement their projects in Tamil Nadu, while others are waiting in the line to get the government’s nod to set up new units, said a top government official.

In the last fiscal, the State was able to attract investments worth Rs.30,000 crore for which Memoranda of Understanding (MoUs) have been entered into with several multinational firms. This year also, the State is likely to attract around Rs.30,000 crore. Right now, the focus is on getting firms that could generate maximum number of jobs.

“Though some of the manufacturers have difficulty in mobilising funds due to financial crisis, they have reiterated their commitments. As of now, no one has backed out. Expansion plans are on as per the schedule,” said the official.

Recently, the State Government cleared four projects with an investment proposal of Rs.2,000 crore that included expansion plans of Saint-Gobain, Gangotri Textiles, Delphi-TVS and new unit of Toshiba-Jindal Steel Works.

Besides, ATC Tires is putting up Rs.400 crore unit in Gangaikondan that would become operational soon.

A deinking plant and paper mills with an investment of Rs.180 crore will be commissioned in Tirunelveli district in the next two-three months.

“Toshiba-Jindal Steel Works is an important project for us, as they are setting up supercritical power equipment manufacturing facility at Ennore. This factor alone is sufficient to attract major power plants to Tamil Nadu. In the first three years, the company has promised to invest Rs.700 crore that can go up to Rs.800 crore. Orders for plant and machinery have been placed and the first phase will become operational in mid-2011,” he added.

Mentioning that the automobile sector took a beating globally due to the recession, he said

“Renault project in the State has been delayed. As per the MoU, they have seven years time to start the production and only a year has passed since the signing of MoU.

Nissan project would be inaugurated by mid-2010. They are planning to produce 2,00,000 cars.”

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