Policy

TN Cabinet clears new industrial policy, over ₹52,000-crore investment plans

Our Bureau Chennai | Updated on January 29, 2021

Totally 34 projects with potential to generate 94,000 jobs approved

The Tamil Nadu Cabinet on Thursday approved new investments worth ₹52,257 crore, including Tata Electronics’ ₹5,763 crore project to manufacture mobile phone components. BusinessLine was the first to report on the Tata group’s plans on October 28, 2020.

The project planned in Krishnagiri district will generate over 18,250 jobs.

In all, 34 major investment proposals that have the potential to create 93,935 jobs were approved by the Cabinet. It also cleared the – “Tamil Nadu Industrial Policy 2021,” says a government press release.

The State had ended the year 2020 signing 74 MoUs attracting an investment of ₹61,500 crore.

Diverse sectors

The fresh investments are spread across electronics, automobile and auto components, including electric vehicles, and solar cell manufacturing.

Sun Edison will invest ₹4,629 crore to produce Solar PV Modules; Ola Electric ₹2,354 crore in SIPCOT park at Bargur in Krishnagiri district, to make electric vehicles and batteries.

That apart, Taiwan’s Luxshare will invest ₹745 crore to make electronic components and wearables in Sriperumbudur, thus reviving the defunct Motorola factory. Pegatron Corporation will invest ₹1,100 crore in phase-I to make phones in Chengalpet district.

Japan’s Daicel Corporation will set up India’s first airbag inflator manufacturing unit at One Hub Chennai, in Chengalpet district with an investment of ₹358 crore.

Germany’s Eickhoff Wind will invest ₹621 crore to manufacture gearboxes for wind energy generators, near Chennai. It will re-locate the company’s production facility from China and Germany.

In addition, Lucas TVS will invest ₹2,500 crore to manufacture lithium-ion batteries in Tiruvallur district.

Other investors include: US-based Autoliv Inc (passenger safety products), Germany’s BASF (auto emission catalysts), Korean company LS Automotive (automotive switches) and Data Patterns (defence and aerospace related products).

Tailored packages

The incentive packages have been customised to suit the requirement of each investor, the statement said

The special initiatives taken by the Government will lead to further industrial development of the State and generation of employment opportunities for the youth, particularly during the Covid pandemic period, the release added.

Published on January 29, 2021

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