Auto major Tata Motors will set up its first vehicle manufacturing facility in Tamil Nadu at an investment of Rs 9,000 crore and inked a pact with the state government on Wednesday to establish the plant in Ranipet.
The proposed facility at Ranipet district would generate 5,000 new jobs, an official release here said.
Tata Motors CFO P.B. Balaji and V. Vishnu, MD&CEO, Guidance Tamil Nadu, exchanged documents in the presence of Chief Minister M.K. Stalin in this connection. Industries Minister T.R.B. Rajaa was present.
Stalin said the state has further solidified its position as the 'unrivaled' automobile hub of India.
"In a landmark move, Tata Motors has inked an MoU with the Government of Tamil Nadu to establish a vehicle manufacturing facility, investing Rs 9,000 crore and creating over 5,000 jobs." Stalin said.
With this investment, Tamil Nadu further solidifies its position as the unrivaled automobile capital of India...," he said in a social media post.
Later briefing reporters, Rajaa said the signing of MoU with the state government by Tata Motors showcases the investor friendly climate prevailing in the state.
"It is a historic day. I think no other states have made such announcements within two months of the time soon after conducting the Global Investors Meet (in January). Tata Motors is going to set up their first ever manufacturing unit in Tamil Nadu. The ground breaking ceremony will take place in the coming months,” he said.
Investment by such big companies shows the kind of development that has been happening in the Dravidian model of governance under CM Stalin, he said.
Raja declined to reveal the extent of land allocation done for Tata Motors. Of the 5,000 jobs, majority of the candidates would be women.
Asked whether the company was taking over the manufacturing facility of US auto maker Ford's defunct unit at Maraimalai Nagar near Chennai, the minister said, "no, they are not".
On what kind of incentive was offered to Tata Motors, Rajaa explained it was not just the incentive, but companies look for the kind of ecosystem available in Tamil Nadu, the infrastructure, availability of talent pool and ease of doing business.
"Tamil Nadu is a very rich state when it comes to the automobile ecosystem and that ecosystem is already in place. I think that is the bigger incentive for anybody," he said.
Referring to the Global Investors Meet conducted for the first time by the DMK Government in January, Rajaa said Tamil Nadu attracted Rs 6.64 lakh crore investments then.
"Our desire is to convert at least 70 per cent of the investments committed by multi-nationals into the creation of new jobs. Earlier, the conversion rate was only 15-20 per cent."
To a query, Rajaa said Tamil Nadu has attracted about Rs 10 lakh crore of investments since the DMK government assumed office in May 2021 and nearly 31 lakh jobs were created in the state during this period.
Earlier in the day, Rajaa said in a social media post: "#TataMotors and the Government of Tamil Nadu are revving up for an epic journey!! In the presence of our Honourable @CMOTamilNadu Thiru. @MKStalin avargal, @TataMotors today signed an MoU with the Government of Tamil Nadu to establish a cutting-edge vehicle manufacturing facility, committing an investment of Rs 9000 crore and generating up to 5000+ #JobsForTN."
"For the FIRST time EVER, TN has attracted TWO BIG Automobile Manufacturing #Investments within a span of just 2 months", he said in another post.
The other big ticket investment is from Vietnam based Vinfast which has committed to invest Rs 16,000 crore for an electric vehicle manufacturing facility in the southern district of Thoothukudi.
