TN Government set to sign MoUs worth Rs.6,000 Cr

Over the next 15-30 days, the Tamil Nadu government will be on a MoU signing spree with several companies that have decided to invest in manufacturing operations in and around Chennai, spanning sectors like automotive, tyres, electronics and power. The state government is gearing up to sign over investment proposals worth Rs 6,000-crore in the next one month.
These proposals have already been approved by the state cabinet.
After attracting the largest investment in automotive sector recently by global auto majors Nissan-Renault, the TN government is all set to sign a mem orandum of understanding with Daimler-Hero joint venture, which will invest over Rs 4,000 crore in Oragadam, the automotive and electronic manufacturing hub near Chennai, in the first week of July.
Among other major MoUs in the pipeline are Nokia-Siemens Networks, Hansen Drives and ATC Tires.
Nokia-Siemens Networks, a leading telecom infrastructure company, plans to invest about Rs 320 crore in an equipment manufacturing facility to come up in Oragadam. This facility will manufacture base station controllers and networking equipment. Tamil Nadu has attracted over $1 billion worth of investments in telecom manufacturing alone.
After luring Apollo Tyres to invest about Rs 500 crore in a radial tyre production unit coming up at Oragadam, to be operational by next year, ATC Tires, part of a Mumbai-based group, will be setting up a manufacturing plant for making pneumatic tyres at Sipcot’s Gangaikondan SEZ. The project, to come up on 115 acre, will attract investment of about Rs 430 crore.
In another big investment in the wind energy equipment sector, Hansen Drives, a subsidiary of wind energy major, Suzlon, is investing Rs 1,500 crore to set up a manufacturing unit for wind turbine gearboxes at Palladam, near Chennai. With expansion by existing players such as Hyundai and Ford and new manufacturing units Renault-Nissan, the total car production capacity in the state will be over one million units by 2010, he added.
“The state has identified two sectors -- automotive and electronics -- as thrust areas. With a strong base comprising the auto component industry, port connectivity and a huge talent pool, we are now promoting Tamil Nadu as a cost-effective destination with high quality eco-system,” the official said.