Tamil Nadu Chief Minister Vijay today signed at least four investment agreements in the United Kingdom, involving investments worth around Rs 12,300 crore and with the potential to create nearly 9,000 jobs, according to the state government.
The biggest agreement is with Samvardhana Motherson International Limited for an investment of Rs 11,000 crore. The project has the potential to create around 7,000 jobs across design, engineering, manufacturing, assembly and logistics facilities.
Vijay also signed a Rs 1,000-crore agreement with a British company, through Ernst & Young, to develop a Global Capability Centre in Chennai. The proposed centre, to come up along the upcoming GCC corridor, is expected to create around 2,000 high-value jobs.
Another agreement was signed with Sweden-based Sigma Technology Group to expand its Global Capability Centres in Chennai and Tiruchirappalli, creating around 600 high-value jobs.
A fourth agreement with Wilson Power Solutions involves an investment of Rs 300 crore, with the potential to generate around 400 jobs in Tiruvallur district.
Government’s Larger Vision
These agreements come against the backdrop of the investment vision outlined by the Tamil Nadu government when Vijay left for the UK.
The government had said European companies had proposed investments worth Rs 8,491 crore in Tamil Nadu, with the potential to create 5,690 jobs, and that the UK visit would focus both on attracting fresh investments and strengthening existing investments in the state.
The focus areas identified by the government included advanced manufacturing, automobiles, electric vehicles, electronics and Global Capability Centres.
The visit also came after the India-UK Comprehensive Economic and Trade Agreement, or CETA, came into force on July 15. The Tamil Nadu government said the agreement had opened up new opportunities for sectors such as textiles, leather, footwear, auto components, engineering and electronics.
The stated larger objective was to position Tamil Nadu as Asia’s leading investment destination. The government has also claimed that investment MoUs worth more than Rs 1 lakh crore had been signed within the first 100 days of the TVK government.
Motor sports was another component of the UK visit. Vijay visited the Silverstone racing circuit and flagged off a race in which actor and racer Ajith Kumar participated.
The visit has also been linked to the government’s plans to develop a world-class motor sports city in Tamil Nadu and create opportunities in racing-related manufacturing and allied industries.
Opposition Questions Transparency
But the investment push has also triggered criticism from the opposition over the lack of transparency surrounding Vijay’s itinerary and his meetings.
TVK’s Response
For the first time, the ruling TVK has sought to explain why it has not been forthcoming with details of Vijay’s investment meetings.
TVK spokesperson P Sathya Kumar said Tamil Nadu was operating in an environment of competitive federalism, with states across the country competing with each other to attract investments.
He said details of investment agreements would be released as and when the Memoranda of Understanding are signed.
The investment drive is not over yet. Vijay is scheduled to leave the UK only on September 16, and more investment agreements are expected to be signed on Tuesday as well.
With the UK visit already yielding investment commitments worth Rs 12,300 crore, the focus will be on whether these agreements translate into actual projects, jobs and sustained economic activity in Tamil Nadu.
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