TN sign MoUs with 5 auto majors for Rs 5,700 cr investments

Chennai, May 14: As part of efforts to tap more investments in the state,

government today signed Memorandum of Understandings with five automobile majors with an investment of at least Rs 5,700 crore to create 9,530 jobs.

The MoUs with Daimler India Commercial Vehicles Private Limited, India Yamaha Motor Limited, Ashok Leyland-Nissan Motor Company Limited, Eicher Motors Limited and Philips Carbon Black Limited were signed in the presence of Chief Minister J Jayalalithaa.

Making the suo motu statement in the assembly, Jayalalithaa said German luxury car maker Daimler has decided to double the investments proposed in the state. "During the previous (DMK) government Daimler said it will invest Rs 3000 crore at the time of signing the MoU. But in 2010, it reduced it to Rs 2000 crore. Now, it has planned to double the investments in the state to Rs 4000 crore. The MoU was signed today", she said.

Through these new investments, she said 3000 direct employments would be made in the plant. Daimler India manufactures truck at their 400 acre plant at Oragadam near here. Jayalalithaa inaugurated the manufacturing unit in April. Similarly, two-wheeler giant Yamaha has proposed to make investments of Rs 1500 crore for their third manufacturing unit in Tamil Nadu spread across 125 acre, Jayalalithaa said. The state government signed MoU with top officials of India Yamaha Motor, she said, adding with the proposed investments, 3000 new job opportunities would be made and an additional 20,000 indirect employments would be created, she said.

Flagship Ashok Leyland and Japanese-automajor Nissan for setting up Rs 4,150 crore light commercial vehicle manufacturing plant here, Jayalalithaa said. Though the two companies had signed an agreement with the previous government in 2008 for the project, it did not take off as the land was not allotted. The land was allotted only in February 2011, she said, adding, even some of the requirements made by the company were not met by the previous Government. The project would provide 3000 jobs.

The AIADMK government also signed a MoU with manufacturers of Royal Enfield motor cycles, Eicher Motors Ltd, for setting up a new plant at SIPCOT Industrial Park in Oragadam at an investment of Rs 350 crore. The government has allotted 50 acre land for it, the Chief Minister said, adding, it would create 300 new jobs. Eicher Motors already have a plant in Ennore near Chennai to manufacture Royal Enfield brand of motorcycles.

Manufacturer of various grades of carbon black in India, Philips Carbon Black Ltd, promoted by industrialist RP Goenka also exchanged documents with the government for setting up a manufacturing plant to produce carbon black (an essential ingredient for manufacturing tyres) today, she said. The Rs 350 crore plant will come up in SIPCOT Industrial Park at Thervoykandigai in Thiruvallur district and would generate 230 new jobs, she said.

Jayalalithaa said the Government was examining proposals from various companies and would sign MoUs in the coming days.

PTI