TN to oppose incentive battles among states for attracting investment

TAMIL Nadu Industries Minister TRB Rajaa, reacting to the decision of South Korean footwear major Hwaseung Enterprises to move its proposed investment in non-leather footwear manufacturing from Tamil Nadu to Andhra Pradesh, said on Saturday that the state will resist the temptation to join the incentive battle among Indian states.

- C SHIVAKUMAR @ Chennai

Tamil Nadu will never be part of the “race to the bottom” by offering unrealistic incentive packages to lure investors, the minister said.

He said the state will instead pursue a calibrated and region-specific strategy for attracting investment. He was responding to reports about the decision of the company, which had earlier signed a Memorandum of Understanding with the Tamil Nadu government to set up a non-leather footwear manufacturing facility in Tirunelveli district at a cost of 1,720 crore, to Andhra Pradesh. The investment was expected to generate 20,000 jobs.