The Tamil Nadu government is expected to sign a memorandum of understanding with tyre manufacturer CEAT Ltd, with the state cabinet giving its nod for a proposal to set up a tyre manufacturing unit near here at an outlay of about Rs 4,000 crore.
The Cabinet chaired by Chief Minister K Palaniswami yesterday gave its nod to set up the manufacturing unit of CEAT Ltd in Sriperumbudur near here by offering a structured package to the tyre maker.
Industry sources said the next move is signing of the MoU with the company. "Yes, after the Cabinet gave its approval, the next move is to sign the MoU." a official sources told PTI.
According to Industries department policy note that was tabled in the Assembly recently, CEAT Ltd would set up a manufacturing facility at Sriperumbudur at an investment of Rs 4,000 crore.
On the number of jobs expected to be generated, he said, "It is too early to say now. The direct employment generation is likely to be around 1,000 and in direct will be around 3,000".
In 2017-18, the government handled 19 major investment proposals for around Rs 6,750 crore. Out of this, Rs 1,450 crore was realised through the MoU signed during the maiden Global Investors Meet which was formally inaugurated by the late AIADMK Supremo and Chief Minister J Jayalalithaa in September 2015.
Apart from CEAT Ltd, Tamil Nadu is also expected to witness establishment of greenfield facility by PSA Peugeot Citroen at a cost of about Rs 2,500 crore in Hosur and near Chennai.
The assembly manufacturing facility by handset maker Motorola at an investment of around Rs 500 crore at SIPCOT Sriperumbudur Special Economic Zone was also in the process, he added.
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