 "Tamil Nadu & Telangana reports decline in IEMs investment")
However, Tamil Nadu government officials have said the department numbers will not be accurate considering most of the industries, which file IEMs do not update their actual investments as they have no compulsion to do so in the liberalised era after 1991.
They pointed, the same Department of Industrial Policy and Promotion (DIPP) data shows that the FDI inflows into Tamil Nadu from April 2000 to December 2015 was $21.28 billion of which the figure till April 2011 was $7.3 billion and from May 2011 to December 2015 was $13.94 billion. The FDI inflow from April-December 2015 was $4.3 billion.
Officials also pointed out, foreign companies seeking FIPB clearance and for FDI they don't file IEMs.
According to DIPP data, in 2015 Rs 501 crore was invested in Tamil Nadu, under IEMs implemented, across six projects, as compared to Rs 2,500 crore in seven projects in 2014. Tamil Nadu has seen 104 investment proposals filed, under industrial entrepreneurs memorandum, for proposed investment of Rs 19,574 crore during 2015, while it was 94 proposals with an investment proposed at Rs 14,596 crore.
During the first two months of 2016, the state has seen three projects from the IEMs filed and the actual investment was at Rs 108 crore.
State government officials said the list of IEMs filed for Tamil Nadu are the traditional sectors like Textiles which actually file the IEMs for their expansion projects.
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"It s very rare for such investments not coming through," said the offical.
Similarly, Telangana has seen actual investments at Rs 494 crore in seven proposals in 2015, as against Rs 1,137 crore in eight proposals in 2014. The proposed investments during 2015 was Rs 9,676 crore in 130 proposals compared to Rs 6,200 crore in 109 proposals in 2014. The first two months of 2016 saw Rs 73 crore investment in Telangana from the three IEM proposed projects, according to the data.
Meanwhile, Karnataka has shown higher investments in South India in 2015, with actual investments reported at Rs 13,780 crore during the year in 29 IEM projects, as against actual investments of Rs 2,361 crore in 17 projects during 2014. In 2015, a total of 93 IEMs were filed with proposed investment of Rs 31,544 crore while it was 83 proposals and Rs 21,858 crore during 2014. In the first two months of 2016, around 40 proposals to the tune of Rs 5,062 crore has been recorded under IEM and two projects saw implementation and an actual investment reported of Rs 29 crore.
In the first two months of 2016, Andhra Pradesh has seen the highest investment in actual terms in South India, which is Rs 825 crore in 11 projects. During the two months, the state has attracted 35 IEM proposals with a proposed investment of Rs 5,119 crore.
In 2015, the state has seen actual investment of Rs 4,542 in 51 IEM projects, as against Rs 2,804 crore in 29 projects in 2014. The state has seen 133 proposals worth Rs 21,197 crore in 2015, while 121 IEM proposals worth Rs 21,510 crore was proposed during 2014.
Tamil Nadu posts FDI growth
Tamil Nadu has posted a consistent growth in terms of foreign direct investment (FDI) equity inflow in the recent past, according to the data available with the DIPP.
Tamil Nadu and Puducherry together attracted Rs 28,023 crore ($4.27 billion) FDI during the nine months from April to December, 2015. This was Rs 23,361 crore ($3.82 billion) during the 12 months from April 2014 to March 2015.
In 2013-14, the state has attracted FDI of Rs 12,595 crore ($2.12 billion). The cumulative FDI inflows from April 2000 to December 2015 was Rs 1,16,790 crore ($21.28 billion), which is the third largest after Maharashtra and neighbouring region (Rs 3,86,778 crore or $78.33 billion) and the New Delhi and neighbouring region (Rs 3,28,153 crore or $60.056 billion), according to the data.