According to a senior state official, investments into Tamil Nadu would exceed Rs 20,000 crore in the current calendar year. The TN government has got proposals worth Rs 7,000 crore, mainly from automobile companies including South Korea’s second largest car maker Kia Motors.
“We already crossed last year’s investment figure of Rs 12,000 crore, and by the end of the current calendar year, we can easily cross Rs 20,000 crore,” the official said.
Tamil Nadu already houses 10 top global auto makers and is now focusing on second tier automobile companies. The official revealed that proposals which are in the pipeline include Kia Automotive group and a Japanese company.
According to the official Kia Motors was talking to the state government for setting up a manufacturing plant. Hyundai Motor Company, which already has a manufacturing unit in the state, holds about 35 per cent stake in Kia Motors.
Kia Motors would set up a plant with an annual capacity of three lakh vehicles a year, starting from 2012.
Kia Motors is planning to set up a manufacturing unit to produce three lakh vehicles a year, starting from 2012. According to industry experts, to set up a plant of this size would cost around Rs 4,500 crore. The TN government has also signed MoU with JK Tyres which plans to set up a greenfield facility at Sriperumbudur with an investment of Rs 1,500 crore.