Agency CEAT investment estimated at Rs 400 crore. Chennai:Prospects for large-scale investments in Tamil Nadu may have improved after the Tamil Nadu Cabinet approved the end of the CEAT incentive scheme for tire manufacturers, but industrialists in the state are cautiously optimistic.

The standard measures for tire makers, part of the state’s efforts to reform industrial policy and stimulate growth, have raised expectations that existing manufacturers in the state will modify their deals, but industry experts say a one-size-fits-all approach is likely. That’s not reasonable.

A senior industry ministry official told The Economic Times that the Cabinet had approved an incentive scheme and refunded 60 percent of the state goods and services tax (GST) in the revised bill. incentives from the previous VAT regime. The CEAT investment is estimated at Rs 40 billion.

Industry leaders believe that the government should have a policy for sectors like automobiles, electronics and information technology instead of the usual state GST incentives.

“The policy adjustment is a welcome change. However, the situation should not be the same for all industries as some are capital intensive and some require less capital. Some industries in Tamil Nadu may have higher sales, while ‘Indian Gopan Glass’ may have lower sales.

The Economic Times2 Four years later, Tamil Nadu is revising its industrial policy to accommodate the GST regime. An official said, “We are discussing the new policy with big players like Hyundai, Ford, Yamaha, etc. and are expected to announce it soon.”

CEAT responded to a question from The Economic Times on its investment plans. While there was “no comment” from Tamil Nadu, officials from the Andhra Pradesh Industries Department confirmed that the project was initially proposed in the state and is now on its way to Tamil Nadu. They added that the company will set up a plant in Tamil Nadu and will invest Rs. 200 crore in setting up a subsidiary in Chittoor (Andhra Pradesh).

Another industry ministry official, who did not want to be named, said that the project will reach the level of cabinet decision only after CEAT “assures investment in the state”.

Manufacturers in Tamil Nadu are enthusiastic about the incentive structure amendment proposed by the state government. Swaminathan said, “There is so much industry, infrastructure and talent in this state. I am confident that if the government continues to change its policies as it is doing now, investments will start coming back.”