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Renault-Nissan plans to invest Rs 5,000 crore to expand Tamil Nadu plant

State eyes Rs 1 lakh cr investment in global investor meet in Sept

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Car maker Renault-Nissan has promised an investment of Rs 5,000 crore to expand its plant near Chennai, a senior Tamil Nadu government official said on Wednesday.

The state is targeting Rs 1 lakh crore of investments at its maiden Global Investors Meet (GIM) rescheduled in September and has already received a commitment of Rs 52,000 crore investment in the state for various sectors, the official said.

"Renault-Nissan wants expansion of the existing plant and they are looking at a total investment of Rs 5,000 crore for the expansion. We already have an MoU with them of Rs 4,500 crore, and this will be in addition to that. Work has started and the timeline given to them is usually of seven years," C V Sankar, additional chief secretary (industries department), Tamil Nadu, said.

The Renault-Nissan alliance is between France-headquartered Renault SA and Japan's Nissan Motor Co.

At an investor roadshow in Mumbai on Wednesday, Sankar said while the state was targeting Rs 1 lakh crore, an estimated Rs 76,000 crore of investments were currently lined up, including Rs 23,000 crore in the energy sector and Rs 53,000 in non-energy sectors.

Out of Rs 23,000 crore investments in the energy sector, around Rs 16,000 crore would be for coal-based projects. Coastal Energen, an integrated energy company based in Tamil Nadu, has assured the state of the investments. The state government is also in discussion with a leading energy producer who has expressed to put up a 1,000 mw project in Tamil Nadu for an investment of Rs 7,000 crore.

Apart from Renault-Nissan, Mahindra & Mahindra (M&M), MRF Tyres are also investing in Tamil Nadu. M&M has acquired around 450 acre of land and will invest Rs 4,000 crore to set up an automobile plant at Cheyyar in Tiruvannamalai district. Tyre maker MRF will also invest Rs 4,500 crore in the state over a period of seven years.

"All the agreements will be signed during the Global Investors Meet on September 9 and 10. For seven cases, which includes, M&M. MRF, Renault-Nissan, etc; we have already issued orders for facilitating land and other requirements. We will also issue similar orders for other energy and non-energy projects, but the signing of agreements will happen during the event," he said. The meet was earlier scheduled for May 23 and 24.

Sankar said out of the estimated investment of Rs 76,000 crore, around Rs 49,000 crore will be by Indian investors. He also said that Japan and the US topped the foreign investors' list with likely investments of Rs 8,800 crore and Rs 6,200 crore, respectively.

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