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At 18.6% of national pie, TN tops Q1 fresh investments ranking

Our Bureau Chennai | Updated on July 17, 2020 Published on July 16, 2020

Signs 17 MoUs worth ₹15,128 crore; Maharashtra, UP corner next two ranks

Despite the Covid-19 pandemic, Tamil Nadu’s efforts to attract fresh investments are yielding results. The State has topped the charts when it comes to drawing fresh investments in the first quarter of the this fiscal, followed by Maharashtra and Uttar Pradesh, according to a report by ProjectsToday.

“Our efforts are yielding results; we will continue with our efforts to attract more investments to further improve the economy of our State,” Chief Minister Edappadi K Palaniswami tweeted.

 

The report said that in April-June, amid the pandemic, India saw the announcement of 1,241 new projects entailing a total investment of ₹97,859 crore.

Global investors

Tamil Nadu cornered 18.63 per cent of this, signing 17 MoUs worth ₹15,128 crore with various companies such as Daimler India Commercial Vehicles, Salcomp and Ashton Shoes.

Maharashtra signed 12 MoUs with a fresh investment of ₹11,228 crore and Uttar Pradesh, with 167 new projects, reported a likely investment of ₹8,867 crore, the report said.

The project approvals in Tamil Nadu continued into July.

The State Cabinet on Tuesday cleared four projects — those of ITC Paperboards, Ather Energy, Philips Carbon and an unnamed automotive company — that will bring in a further investment of nearly ₹2,500 crore.

The Cabinet, officials say, is likely to meet again on July 20 to clear more projects.

Sectoral ascendancy

"Tamil Nadu has ascendancy in a number of industry segments — automotive, IT, engineering, textiles, electronics and renewable. It has got one of the better supplies of local skilled manpower in the country. If the State government focusses on the entire value chain in these six segments, there is a lot of opportunity for having targeted investments," said Srivats Ram, Vice-President, Madras Chamber of Commerce & Industry and MD, Wheels India.

Lockdown action

A senior government official said Tamil Nadu may owe the top ranking to the sustained efforts of the government before and during the lockdown.

Some of the contributing factors include the strengthening of Guidance Tamil Nadu, the State’s investment promotion agency, facilitating and invigorating single-window clearances for business enterprises (monitored regularly by the CM), creating country-specific desks in Guidance for foreign investors, and quick decision-making on issues relating to industries at the highest level.

The State government, the official said, also worked closely with the industry during the lockdown and assisted them in all possible ways.

The personal involvement of the CM in promoting industrial development in the State was the game changer, the official added.

It may be recalled that Palaniswami had written to global CEOs in major sectors such as logistics, petrochemicals, e-commerce, electronics and automobiles, outlining the State’s investment attractiveness.

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Published on July 16, 2020
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