In 3 years, Tamil Nadu gets just 50% of promised industrial investment

CHENNAI: A week from now, the state government is expected to announce investment proposals worth thousands of crores at the global investors meet (GIM), but the data with the Union commerce ministry shows that less than half of the promised investments actually made their way to the state over the past three years.


Of the Rs 19,408 crore worth investment proposals received by Tamil Nadu during 2016-17, 2017-18 and 2018-19 (till November 2018), only Rs 8,384 crore has been realised. Except Maharashtra, which recorded investments of Rs 1.89 lakh crore against the proposed Rs 1.69 lakh crore over the past three years, most of the states in the country face this shortfall between investment promises and actual realisation.

In states such as Gujarat, Karnataka and Andhra Pradesh, the quantum of investments is higher than Tamil Nadu, but they too face deficit in realizing investments.

Last year, Tamil Nadu received proposals worth ?10,105 crore, but till November 2018, only Rs 2,107 croreroughly 20% — had been pumped into the state.

‘Confident that state will soon get more investments’

C II Tamil Nadu state council chairman M Ponnusami said, “Since last year, there have been several queries from investors who are ready to invest in Tamil Nadu. It will take some more time for these to convert into a proposal and then into actual investments. We are confident that our state will soon be wooing more investments.”

The last time the GIM was held, in 2015, the government claimed MoUs worth Rs 2.42 lakh crore were signed, while the actual investments as of now was only Rs 66,000 crore. “Unlike last GIM, where there were many energy companies who signed MoUs but went back on investing in our state as Tangedco wanted them to come through tender route, in the upcoming GIM, MoUs will be diversified,” said Ponnusami.

In the case of such GIMs in several other states too, the conversion rate is only less than 30%, said Ponnusami.

“We have taken several steps to woo big investments as well as from the MSME sector. Departments like tourism have been given a target to woo investments into their section and the coming GIM will see more such investments,” said a senior industries department official.