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
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,
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