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TAMIL NADU AUTOMOTIVE POLICY RECOMMENDATION (TNAPR)


To: The Right Honourable Tamilnadu Chief Minister Dr. J. Jayalalitha

From: Athinarayanan Sanjeevraja

Date: November 19, 2012

RE: Tamilnadu Automotive Policy to make Chennai, the world’s largest auto-hub

Suggestion: We need effective Automotive Policy that will prove to be favourable to the development of our State

Good Afternoon Ms. Chief Minister. You already said that our government to make Chennai, the world’s largest auto-hub during the signing of MoU with 12 firms on Monday. We are committed to do it. We can make it happen by 2023. It requires our government policy should be able to attract new players from around the world by offering favourable production environment as well as some incentives for new players to promote Chennai, the world’s largest auto-hub. We have done it so far by allowing MNC car companies to establish local production. It is time to make Chennai, the world’s largest auto-hub. It is my belief that offering incentives alone is not sufficient for success. I suggest our government should work closely with industries to improve productivity and remove barriers to growth for new players for instance, land use restrictions, regulatory burdens etc to make Tamilnadu the most attractive place for multinationals. As you said that you are going to release automotive policy very shortly. I would like to suggest our automotive policy should be balance between business investment and consumption or export oriented in order to develop a healthy and sustainable automotive market in Chennai.  

I strongly recommend some of automotive policies to make Chennai, the world’s largest auto-hub.

Recommendations:

(i)           Fiscal Policy: I am confident that fiscal policy will encourage business investment.
(ii)          R & D tax credit for automotive industry.  
(iii)         The provision of financial incentives for local operations if possible.
(iv)         World class technical institutions for developing engineering skills at the graduate level to deliver quality of automotive products.  
(v)          Government support for automotive industry, for instance, awards and recognition. 
(vi)         Incentives to support the creation of an automotive export cluster.    

Ms. Chief Minister, our government should be careful in its step to introduce effective automotive policy to ensure that to make Chennai, the world’s largest auto-hub. At the same time, providing any incentives should not be very expensive for our government. Our government ought to have the guts to stand up to the fair international competition providing generous incentives and lower tariffs to global automotive industry to set up their plant in Chennai. Ms. Chief Minister, It is my judgement that if our government would provide incentives for export promotion for global automotive industry, the global automakers will set up their plant in Chennai for production and export to worldwide. 

Once again, I firmly recommend to our government export should be economical for global automakers so that they can set up their plant at Chennai for production and exporting to worldwide. I am confident that this would make Chennai, the world’s largest auto hub in the future.  

Thank you very much for your kind attention Ms. Chief Minister.

Sincerely, 
Athinarayanan Sanjeevraja




Comments

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