The Tata Motors Group, which rolls out commercial and passenger vehicles, will set up a vehicle manufacturing plant in Tamil Nadu at an outlay of about Rs 9,000 crore, it was announced on Wednesday.
The Tata Motors Group on Wednesday inked a facilitation MoU with the Tamil Nadu government. As per the MoU, the investment of about Rs 9,000 crore will be spread over five years and can create about 5,000 jobs – direct and indirect.
Following the signing of this MoU, teams from Guidance, Tamil Nadu’s nodal agency for investment promotion and facilitation, and Tata Motors Group will work together to take this opportunity forward.
The MoU was signed by V. Vishnu, Managing Director & CEO, Guidance, and P.B. Balaji, Group CFO, Tata Motors, in the presence of Chief Minister M.K. Stalin.
Tamil Nadu Industries Minister T.R.B. Rajaa said on X: “For the FIRST time EVER, TN has attracted TWO BIG Automobile Manufacturing #Investments within a span of just 2 months.”
“Over the past couple of years, Tamil Nadu has hit the fast lane and become the ultimate hub for investments, showcasing our Chief Minister’s dedication to fostering top-tier employment for our vibrant youth and amplifying our industrial prowess,” Rajaa said.
“We’re not just building factories; we’re engineering dreams and accelerating towards a brighter, more prosperous future!” he added.
Last month, Vietnam’s VinFast group’s Indian arm VinFast Auto India Ltd laid the foundation stone for its electric vehicle factory in Tuticorin. The company will invest Rs 4,000 crore in the first phase
Meanwhile, Tata Group companies Air India and Tata Advanced Systems Ltd (TASL) are planning to invest Rs 2,300 crore in Karnataka in projects that are expected to create employment for 1,650 people, the state government announced on Monday.
According to the MoU that has been signed, Air India will set up a facility to carry out maintenance, repairs, and overhaul of planes at the Bengaluru airport. The project entails an investment of around Rs 1,300 crore that will generate employment for 1,200 people.
Tata Advanced Systems, which makes doors for European giant Airbus’s A320neo planes, will set up manufacturing and research & development facilities in the state. The company will invest in three projects near Bengaluru Airport and in Kolar with a total investment of Rs 1,030 crore. These include a passenger to freighter aircraft conversion facility (Rs 420 crore), gun manufacturing facility (Rs 310 crore) and aerospace & defence research and development in Karnataka (Rs 300 crore). These projects are expected to generate direct employment for 450 people.
Karnataka Chief Minister Siddaramaiah and state Large and Medium Industries Minister M B Patil were among those present at the MoU signing ceremony in this regard here.
Saying such projects require streamlined support from the government in terms of clearances, approvals and interventions, Patil assured support in resolving any challenges pertaining to the grounding of the projects.
S. Selvakumar, Principal Secretary, Karnataka Industries Department and Nipun Agrawal, Chief Commercial Officer of Air India and Sukaran Singh, CEO of TASL exchanged the MoU.
Chief Secretary to Karnataka Government, Rajneesh Goyal; Additional Chief Secretary to Chief Minister L.K. Atiq; Commissioner of Industries Department Gunjan Krishna; Air India top officials Manan Chauhan, Karthikeya Bhat, Atul Shukla, TASL top officials Guru Dattatreya, Arjun Maine, Bangalore International Airport Managing Director Hari Marar, COO Satyaki Raghunath, and CFO Bhaskar Ravindra were present on the occasion.
The Tata’s plan for Karnataka comes close on the heels of the group’s announcement of a Rs 15,000 crore investment in Telangana. The Tata Group has also drawn up plans to set up a semiconductor fabrication plant in Gujarat.
Investments flowing into states are on the rise under the Atmanirbhar policy of the Modi government which has increased emphasis on self-reliance under which more collaborations between Indian companies and high-tech foreign firms are taking place. This has also led to more FDI flows into the country.
Chip Hubs Drive Growth
The new semiconductor manufacturing plants will have a lasting impact on the entire nation and the ecosystem from across the globe will mobilise to have India as their preferred semiconductor destination, N. Chandrasekaran, Chairman of Tata Sons Pvt Ltd, said on Wednesday.
Addressing the ‘India’s Techade: Chips for Viksit Bharat’ programme where Prime Minister Narendra Modi laid the foundation stone of three chip manufacturing units worth Rs 1.25 lakh crore — including two from the Tata Group — Chandrasekaran said that today is a special day, “with the foundation stone being laid simultaneously for our projects in Dholera and Jagiroad 2,500 kms apart”.
“On this historic occasion, I would like to thank PM Modi for his enduring vision to bring the semiconductor industry to the shores of our country,” said the top Tata executive.
The semiconductor industry is innovation-driven as it is a foundation for everything digital.
“We look forward to closely partnering with industry, academic institutions, and ecosystem players to select an infrastructure of tomorrow, right here in India. We will be creating thousands of jobs in this journey and this is just the beginning,” N. Chandrasekaran told the gathering.
Today, every major economy is looking for self sufficiency in the semiconductor supply chain.
“From the very beginning, we have been fortunate to pioneer several businesses. And today, our journey of building semiconductor chips has begun”.
The fabrication facility at the Dholera Special Investment Region (DSIR), Gujarat is being set up by Tata Electronics Private Limited (TEPL). With a total investment of more than Rs 91,000 crore, this will be the first commercial semiconductor fab in the country.
The Outsourced Semiconductor Assembly and Test (OSAT) facility in Morigaon, Assam is being set up by Tata Electronics Private Limited (TEPL), with a total investment of about Rs 27,000 crore.
The third semiconductor facility in Sanand, Gujarat will be set up by CG Power and Industrial Solutions Limited with an investment of about Rs 7,500 crore.
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