Foxconn, Flextronics, Salcomp Show Interest in Investing in Tamil Nadu As State Goes All to Set Up Electronics Manufacturing Cluster

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Foxconn, Flextronics, Salcomp Show Interest in Investing in Tamil Nadu As State Goes All to Set Up Electronics Manufacturing Cluster

Some of the prominent electronics producers such as Foxconn of Taiwan, Flextronics of the United States and Salcomp of Finland have expressed an interesting interest in investing in Tamil Nadu, which is developing new production clusters.

The Chief Secretary of State, Industry, N Muruganandam, said Swarajya that the Tamil Nadu government has come up with an investment policy for companies, particularly in the electronics sector.

According to an official press release, Tamil Nadu has made a strong case for international companies, particularly in the manufacture of mobile phones and electronics, to invest in the state during the June 2 “Invest India” webinar on to the design and manufacture of electronic systems.

On May 29, another Tamil Nadu government press release said that State Minister Edappadi K Palaniswami had decided to reach out to 13 world leaders of prominent multinationals such as Apple Inc., Samsung, Amazon, and Hewlett and Packard. .

Muruganandam said the state government has taken a vigorous approach to attracting investments from multinational companies and was offering various incentives based on the proposed investments.

“We have classified investments into categories like A, B and C based on the money raised, such as up to Rs 300 crore and up to Rs 500 crore for example,” the Industry Secretary said.

Again, these groups came from different parts of the state, ranging from the outskirts of Chennai city like Sriperumbudur to other parts like Coimbatore.

Investing India is working in tandem with the state governments and Tamil Nadu is profiting from this.

“We urge India to lead, in addition to the Tamil Nadu Office of Industrial Guidance and Export, on possible sources to exploit the investment. This is an ongoing process and we look forward to attracting a good number of investors,” he said. said Muruganandam.

During the webinar, Tamil Nadu demonstrated its diversified manufacturing base in the state, its vibrant ecosystem and its fast-paced spaces through a single window system, while inviting industries to invest.

To Tamil Nadu’s advantage, Josh Foulger, Foxconn’s general manager, told the webinar that the state has been critical of the success of his firm’s project.

He said the state government is “proactive” and the investment climate is “favorable” in Tamil Nadu.

One of the crucial decisions taken by the state government, in terms of promoting cluster development, is to increase the development of infrastructure in these clusters in collaboration with industry, and the Department of Municipal and Rural Development.

In addition, local bodies, the Department of Roads, the Electricity Council and the chambers of industry and commerce are also involved in the development.

Muruganandam said the state does not offer any additional packages but only its own packages tailored to suit the needs of investors in terms of the schemes that are already implemented.

In addition, incentives are decided on a case-by-case basis, taking into account how much employment generates the investment, the chief secretary said.

Confirming that the full impact of his efforts will be known only after two to three months, he said the state was expecting international revenues from the country so that future investors could come to Tamil Nadu and see the officials and assess the physical. infrastructure on offer.

Muruganandam said the Center is helping states through Invest India, which is currently organizing webinars with investors in countries such as Japan and Taiwan.

“The Ministry of Electronics and Information Technology and the Department for Promotion and Industry were in agreement with Invest India to help states attract investors,” the chief secretary said.

In the midst of this, the state government sounds positive to attract more investment after resolving a dispute with Nissan Motor Co. for royalties and payments paid in total Rs 5,000 crore.

The dispute comes after Nissan warned that the Tamil Nadu government had not paid incentives under an agreement signed in 2008.

He didn’t even go through an arbitration process.

Sources in the Tamil Nadu government have said the dispute has been settled since no charges were paid between 2012 and 2017 under the agreement.

With the issue resolved, the arbitration process was waived.

Confirming the settlement of the dispute, Muruganandam said it was a positive development for Tamil Nadu, as he described the state as “proactive”, apart from resolving such disputes amicably and quickly.

The Tamil Nadu government’s efforts to develop manufacturing clusters are in line with the Center’s recent initiative to scale up electronics manufacturing rapidly.

Towards this end, it has come up with three new schemes – incentives linked to production, promotion of the manufacture of electronic and semiconductor components and modified electronics manufacturing clusters – which will encourage a bid of Rs 50,000 crore.

For himself, the Tamil Nadu government 17 memoranda of understanding (MoUs) involving investments amounting to Rs 15,128 crore with a potential to generate more than 47,000 jobs.

Companies that have signed UmU include Daimler India and Salcomp as well, those from Japan, Korea, the United States, Germany, Taiwan, China, France, Australia, England and the Netherlands.

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