Manufacturing sector expected to get projects to the tune of Rs. 60,000 crore
The second edition of the Global Investors’ Meet (GIM), to be held in Chennai on January 23 and 24, may see the signing of at least 140 memoranda of understanding (MoUs).
“We are still receiving proposals and our target is 200. As of now, there are around 40 MoUs pertaining to the manufacturing sector and about 100 ‘facilitation MoUs’,” a senior official in the Industries Department said.
Apart from manufacturing, deals are expected to be inked in information technology, energy, housing and agro industries.
The ‘facilitation MoU’ is so called because the government is obliged, under the State Business Facilitation Act, to enable project proponents to get clearances from various departments and agencies.
The manufacturing sector is expected to get projects to the tune of Rs. 60,000 crore. As of now, the Cabinet has cleared projects worth Rs. 50,000 crore, which include the Chennai Petroleum Corporation Limited (CPCL)’s Rs. 27,450-crore refinery project in Nagapattinam district. On January 18, the Cabinet is likely to hold a meeting wherein it will accord approval to some more projects, the official said.
The official said the CPCL project will be the single largest among the MoU projects in terms of investment value. Its cost may even touch Rs. 33,000 crore eventually. The proposed plant will have a capacity of 9 Million Metric Tonnes Per Annum (MMTPA), and will replace the existing facility, which has a capacity of 1 MMTPA.
During the 2015 GIM, 98 MoUs were signed, envisaging investments of over Rs. 2.40 lakh crore (around $36 billion). This time, the total value of investments is likely to either touch or exceed that of the deals inked during the previous edition of the summit.
Also, the authorities are now engaged in scrutinising the credentials of all the promoters of the projects. They will sign the MoUs only if the promoters pass the test of scrutiny, an official said, adding that the Aerospace and Defence Policy, cleared by the Cabinet last month, will be unveiled on the inaugural day of the summit.