A proposal from PSA Group, the manufacturers of car brand Peugeot, and others to set up a manufacturing facility with an estimated investment of around Rs 20 billion, which came up during the same period, is also under implementation. Another proposal from furniture firm IKEA, which is planning to set up a store in the state, with an investment of Rs 12 billion is yet to receive final approval from the government.
One of the issues that withheld investment proposals so far was related to the incentives offered by the state government and a requirement to change some of them according to the changed tax regime with the implementation of the Goods and Services Tax (GST). The government was planning to bring in some changes in the industrial policy to change the structure of incentives since the taxes were united under GST. Sources said that the state is considering investment proposals case-by-case and is offering structured incentive packages.
Tamil Nadu, which has seen several agitations, including against certain industries, has been losing out to competitive states like Andhra Pradesh when it comes to attracting new investments, according to various opposition parties and critics. Investment intentions in the state have also seen a decline in the past year, according to the Union Ministry of Commerce.