To cater to the growing presence of auto companies around Chennai and to attract new automakers into the state, the Tamil Nadu government is planning to introduce a sector-specific policy for automobiles, deputy chief minister MK Stalin has said.
“The state is determined to ensure that we not only retain our position in the growing automobile market but substantially increase it. We will also bring out a sector-specific policy for automobiles soon,” he said.
The ‘ultra mega policy for integrated automobile projects’ offering an attractive support package to projects investing more than Rs 4,000 crore was introduced by the government.
Tamil Nadu's annual output is estimated to be about $ 3.5 billion, which is 25 per cent of the country's output. “Tamil Nadu auto components sector constitutes 35 per cent of the India's production,” he added.
Foreign investment
Investments to the tune of Rs 3,000 crore are expected to flow into Tamil Nadu from China and South Korea, potentially creating 10,000 jobs, according to Stalin, who returned from a six-day trip to the two countries.
After releasing the handbook of Tamil Nadu Industrial Development Corporation (Tidco) in Chennai on Thursday, Stalin said that several companies in these countries had evinced keen interest in investing in India, particularly in Tamil Nadu. “We expect around Rs3,000 crore over the next two years, which would generate around 10,000 direct and indirect jobs,” he said.