$1 trillion economy by 2030 is an achievable goal: TN Minister Thangam Thenarasu

Apart from traditional sectors like textiles and manufacturing, TN is also focusing on electric scooters and vehicles, semiconductors and sustainable energy, Thenarasu said

In its pursuit to make the state a USD 1 trillion economy, Tamil Nadu has identified “sunrise” sectors like electric vehicles, semiconductors, and sustainable energy to achieve the goal. Industries Minister Thangam Thenarasu feels that the industrial climate prevailing in Tamil Nadu makes the state a lucrative destination for investors from all sectors.

In an interview with DH’s ETB Sivapriyan, Thenarasu spoke about the plans to garner fresh investments, a facelift for Hosur, potential investments from Foxconn, Tata Motors’ talks with Ford, and why the state thinks it is best suited to host Tesla. Excerpts:

Chief Minister M K Stalin has set an ambitious target to make the state a USD 1 trillion economy by 2030. (The state’s current exports stands at USD 26 billion). Is it possible to achieve the goal in just nine years?

It is quite possible to achieve the target. The Chief Minister has made a very practical and conscious announcement and the goal can be achieved due to proactive measures being taken by the government under his leadership. The industry has put its weight behind the government in ensuring that the Chief Minister’s goal is achieved. We have also identified a few sectors that could contribute to achieving this goal, and the state has already begun receiving investments in some of the areas. Apart from the traditional sectors like textiles and manufacturing, we are also focusing on electric scooters, electric vehicles semiconductors, sustainable energy like solar power and wind power, fintech and data centres. The new Export Promotion Policy announced by the state government will also contribute to the cause.

The government seems to be working towards decongesting Chennai. Can you please throw more light on the plans?

The main issue earlier was that investments were not being made across the state. After we took over, investments are being made from Tuticorin to Tiruvallur to Coimbatore to Trichy and Thanjavur. By taking industries across the state, we are guaranteeing employment opportunities to the youth. The process of decongesting (Chennai) has begun. Tiruchirapalli is emerging as a hub for manufacturing defence components, Tuticorin will be the hub for manufacturing furniture. We are also making concerted efforts to take more industries to the southern part of the state. The Madurai-Thoothukudi industrial corridor and a textile park in Virudhunagar are some of the projects that will usher in further growth in southern districts. These districts have a huge potential in manufacturing solar panels. In ensuring that investments are made across the state, the Chief Minister has taken the investment conclaves to tier-II cities which is a signal to the investors. We are not focusing on just one sector or one place, we are wooing investors from all sectors.

You spoke about the efforts to garner more investments after your party came to power in May 2021. But there have not been many big names among the fresh investments that came into the state?

TVS has invested in the electric scooter sector, while LUCAS-TVS is investing to manufacture batteries for e-scooters. These are big names, and Ola, which is manufacturing electric scooters, has now asked for additional allotment of land in Hosur for expanding its capacity. Ola wants its supply chain to be based in Hosur and many companies are asking for land there to set up their shops. Several new e-scooter manufacturers have signed MoUs. In just eight months, we have garnered investments of around Rs 60,000 crore. We are in talks with several companies in various sectors and we expect more investment flow into the state in the next few months.

Any new investment or big names in the EV sector whom the state government has approached?

We are in talks with many companies and recently (Jan 24) Foxconn group’s Operations Vice President Andrew Liou and advisor TP Nair met the Chief Minister to thank him for resolving the issues over employee’s protest. We invited Foxconn to diversify its investments in the state. We invited them to choose Tamil Nadu as the destination for their EV plans, and also asked them to invest in the semiconductor sector in the state. On EV, we are talking to a few others too. We are establishing an exclusive EV park in Manalur near Chennai for the manufacturing of electric vehicles.

On semiconductors, you said you have invited Foxconn. Can you please elaborate as TN seems to be wooing several electronics majors to manufacture chips in the state pointing to the market it offers in automobile and electronics majors who have factories here?

Since Foxconn is a major electronics manufacturer, we have formally invited them to invest in the semiconductor sector. The company has been doing business here for over a decade and they know the state well. Like Foxconn, we have touched base with several companies to produce chips in our state. I can’t take the names of others now as it will be too premature. But semiconductor is one sector we are focusing much on as with the Union Government also announcing a Rs 76,000 crore product-linked investment (PLI) scheme. On semiconductors, we want to really catch with up the trend, and we think this is the right time for us due to geopolitical changes being experienced by many companies. We expect huge investments in this sector.

Foxconn was in the news recently after its iPhone factory in Sriperumbudur was closed due to protests. Do you think this will affect the industrial climate in the state?

No way. It is an isolated incident. When Sterlite Copper was closed down, many said it will have a bearing on future investments. But what happened is the state garnered more investments after the closure and even during the deadly second wave of Covid-19 infection, the state has managed to get huge investments. Investors have confidence in our Chief Minister, and we are one of the favoured destinations in the state. The Foxconn issue was amicably settled, and the company’s management met the CM and thanked him for his intervention in the issue. They have promised to look into the suggestions offered by the state government with respect to employees’ welfare. And we have invited them to invest in other sectors too, and we are hopeful that they will accept our request.

Last week, you joined several other states in inviting Tesla to choose Tamil Nadu by tweeting to its CEO Elon Musk. Do you think TN has an advantage over other states given its standing in the automobile sector?

The general industrial climate is good in Tamil Nadu and the state now accounts for 34 per cent share in total planned investments for electric vehicles. And the state has identified Manalur (near Chennai) as an EV hub. The ecosystem that the state has makes all the difference. Besides, Tamil Nadu is one of the top nine renewable energy markets in the world. So, Tamil Nadu, especially the EV park in Manalur, will be the right choice for Tesla.

Hosur seems to enjoy a special focus. What are your plans for the industrial town?

Hosur is now being developed as a major industrial hub, We find a lot of scope to house more industries in the town due to a variety of factors like climate, and availability of land which makes things easy for an investor. We have upgraded Hosur from a municipality to a corporation and we are on our way to establishing an airport in the town. The necessary facelift is being given to Hosur and many factories of various sectors will come up in the city. And we are also in the process of acquiring 50,000 acres of land across the state to be added to the land bank. This is another measure that we are taking to woo investors.

Tamil Nadu government was facilitating talks between Tata Motors and Ford which is exiting the country for the takeover of its Maraimalai Nagar plant. What is the status?

We are facilitating the talks. We are just playing the facilitator role in the interest of the employees. Tatas have not yet confirmed their plans. If Tata is not coming out with a positive response, we may have to look at other options. But this is an issue between two companies (Tata and Ford).

Any other firm has approached the TN government in connection with the Ford plant?

There are few companies that have evinced interest. I cannot disclose their names. As I said earlier, we are just a facilitator. We will provide all help, but the decision will have to be taken by the companies concerned.

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