Here is why Renault-Nissan is investing Rs 4,200 crore again in Tamil Nadu

The Franco-Japanese alliance, Renault-Nissan, began its passenger car project in southern Tamil Nadu a few years back.

Apparently, Renault-Nissan’s association with Tamil Nadu has been fruitful as the company is making another large investment of Rs 4, 200 crore in the state.

Presently, the alliance manufactures passenger cars including Renault Duster at the 640-acre factory and it will soon start manufacturing the Kwid, a sub-Rs 4 lakh car, at the plant. The company has invested about Rs 4,500 crore over the past seven years.

So, why Tamil Nadu only? Here are the reasons.

1. The tax refund issues have been sorted out between the alliance and the state government. The differences over the quantum of value-added tax and central sales tax refunds have been resolved after over a year of consultations with the company.

2. The alliance, Renault-Nissan, which started investing in Tamil Nadu in 2008, gets benefits including land at concessional price, exemption from stamp duty and electricity tax, dual feeder power lines and refund of output value-added tax and central sales tax.

3. The cap on refunds were made as high as 115% of the eligible investments made by the manufacturer over seven years.
Meanwhile, the state government is expected a super hit show at Global Investor Summit, slated for September 9 and 10 in Chennai.