JOIN USTamil Nadu not behind any state in attracting investments: Minister Thenarasu responds to Governor
Rejecting Governor R N Ravi’s contention that Tamil Nadu was not attracting investments like Maharashtra and Karnataka, the DMK government said it has attracted investments worth Rs 90,000 crore in the past one year by pointing out that the state’s ranking in ease of doing business has jumped to three from 14.
In a press conference, Industries Minister Thangam Thenarasu said Tamil Nadu still stood number one in attracting “physical investments” and pointed out a problem in calculating the inflow of Foreign Direct Investments (FDI) which sends out a wrong message that the state was not attracting enough investments.
“Even after the deadly second wave, our government attracted investments worth Rs 16,000 crore when we held our first Investors’ Conclave in July 2021. That demonstrated the industry’s resolve in coming to Tamil Nadu which ensured that the production was not affected during the second wave of infections,” Thenarasu said.
The industry gained confidence in Chief Minister M K Stalin as the state took efforts to ensure that exporters based out of Tamil Nadu fulfill their commitments given to buyers across the globe, he added. Thenarasu said Tamil Nadu signed Memorandum of Understanding (MoUs) with 132 companies that have pledged an investment of Rs 94,975 crore generating jobs for over 2 lakh people since the DMK government assumed office in May 2021.
He was responding to Governor Ravi’s comments that Tamil Nadu has been attracting investments that were similar to Haryana and not Maharashtra and Karnataka. Thenarasu said the Ease of Doing business rankings released by Union Finance Minister Nirmala Sitharaman is a “testament” to the state’s standing among investors.
He pointed out that Tamil Nadu improved its ranking from 14th place to 3rd place by figuring among the top performing states. “This is an achievement. This is a clear indicator that investors are flocking to Tamil Nadu,” Thenarasu said, adding Tamil Nadu posted positive growth even during Covid-19 pandemic.
On FDI, the minister said the inflow of FDIs are added to the states where the companies have offices instead of their physical units.
“Many say investments that came to states like Maharashtra are four times higher than Tamil Nadu. For example, Hyundai has a huge manufacturing unit in Chennai but its HQ is in New Delhi. The government counts the FDI to the state where the company is headquartered. The truth is the maximum physical investments have come to Tamil Nadu,” he said.