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With six major international companies investing over Rs 2,600 crore in the state and many more investments pouring in during 2006, Tamil Nadu has never had it so good.
Nokia, Flextronics, Samsung, Dell, Motorola and Anil Ambani's Anil Dhirubhai Ambani Group are some of the big names to have set up shop in 2006 or have announced
setting up business in the state.
The year 2006 has, in fact, seen an upsurge of industrial activity in the state.
Tamil Nadu has been seeing a flurry of investment activity ever since the May 8 Assembly elections when the people of the state handed over the reins of power to the
DMK-led Democratic Progressive Alliance led by M Karunanidhi.
Political bickering apart, the government has the right to claim this influx of manufacturers into the state. This provides a tremendous opportunity to the state - in terms of
jobs and also in terms of better infrastructure being available to the people.
Karunanidhi even visited the Infosys campus in Bangalore, thereby claiming to be the first Chief Minister of the state to go outside the state to woo investors.
Nokia has invested $ 150 billion in its facility at Sriperumbudur and is producing 10 lakh phones per month. It has already produced 10 million mobile phones since beginning
operations in April this year.
Yet another mobile phone major, Motorola, is investing $ 100 million and is expected to begin production in the first quarter of 2007 from
Sriperumbudur.
Component manufacturer Flextronics' facility, which was inaugurated by Prime Minister Manmohan Singh in early November, has come up at an investment of $ 100 million.
Over six component suppliers of the company are also set to invest near the facility, which would bring in significant investment apart from providing a few thousand jobs.
However, Anil Ambani's announcement that his ADAG group would be investing Rs 12,000 crore in the state was definitely the finest moment of 2006 for the newly-formed
government in the state.
The group would be setting up a multi-product SEZ integrated with a 1,000 mw power plant linked to a desalination plant at a cost of Rs 10,000 crore. The remaining would
be spent on setting up an IT park and a world-class convention
centre.
Close on the heels of this announcement came his estranged brother Mukesh Ambani of the Reliance Industries who met the Tamil Nadu Chief Minister and discussed plans
to supply natural gas to households and also procure and market farm produce in the state.
One of the car manufacturers in Tamil Nadu, Hyundai Motor India Ltd, rolled out its one-millionth car from its facility at Sriperumbudur. The company is setting up its second
facility near the existing one which will enhance the company's production capacity to six
lakhs.
Hyundai also announced setting up of a global R&D centre in Chennai which is expected to be operational in two years and would employ about 1,000 persons.
The Prime Minister laid the foundation stone for the Rs 470 crore Global Automotive Research Centre at Oragadam on November 4.
Significant MoUs were signed with Apollo Tyres which would invest Rs 520 crore and the Caparo Group owned by Angad Paul, son of Lord Swraj Paul, which would bring in
Rs 300 crore into the state.
Computer manufacturer Dell also announced setting up its third facility in the Asia-Pacific region at Sriperumbudur, after Penang in Malaysia and Xiamen in China. Dell would
be investing $ 30 million initially and would be providing direct employment to 1,000 people and 4,000 indirectly. Dell would initially be producing four lakh desktops per
annum, which is expected to commence in the first half of 2007.
Electronics major Samsung would be manufacturing refrigerators, colour TVs, LCD screens and a host of other electronic products from its facility at
Sriperumbudur.
Cisco Systems Inc., the world's largest maker of computer generating network gear, has announced that it would set up a trial factory in the state to make Internet-based
phones.
Tyre manufacturer Dunlop reopened its facility at Ambattur on August 27, an important development in the Indian tyre industry.
One of the major highlights of 2006 was the passing of the Value Added Tax (VAT) bill in the Assembly, a long-pending demand of the trade establishments in Tamil
Nadu, except for a barely sizable number of small traders who are against it. VAT came into effect in the state from January 1, 2007.
With the economic activity in the state hitting a peak, the state is keen on laying importance on infrastructure.
The Chennai Port Trust is creating a second terminal at an investment of Rs 400
crore.
A six-lane highway to Sriperumbudur is on the anvil, in view of the heavy investments in the suburb and heavy traffic congestion which is a bottleneck to companies operating
in that region.
Multi-level flyovers are being constructed at Padi junction, Koyambedu junction and the extremely busy Kathipara junction at
Guindy.
Karunanidhi said the investments flowing into the state were due to the "pro-active policies and facilitation measures introduced for new industrial investments, particularly
the single window system for clearances".
The government is also planning to set up six more TIDEL Parks and has identified Madurai, Tiruchirappalli, Salem, Tirunelveli and Hosur for the purpose.
Union IT and Communications Minister Dayanidhi Maran said the state government was keen to promote smaller towns and cities, as it would promote economic
development and reduce pressure on larger cities.
The Electronics Corporation of Tamil Nadu Ltd (ELCOT) is busy acquiring land for further projects in the state.
Scarcity of land and infrastructure bottlenecks are key problems which the state will have to address to keep the extremely buoyant economic situation on the upward curve.
While 2006 has been extremely good for the state, the government will have to consolidate on the gains that have been got during the year in 2007. (Agencies)
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