Tamil Nadu Emerges as Major Beneficiary of PLI Scheme: Nirmala Sitharaman
Union Finance Minister Nirmala Sitharaman has lauded Tamil Nadu for emerging as one of the largest beneficiaries of the Production-Linked Incentive (PLI) scheme, particularly in the electronics and automobile sectors. Speaking at an event organized by the Chennai Citizens’ Forum, Sitharaman emphasized that the state has garnered significant investments and projects under the initiative.
The Finance Minister dismissed claims suggesting that the Central government had neglected Tamil Nadu in terms of funding, highlighting that several major projects were either announced or progressing at various stages in the state. She noted that Tamil Nadu has been the largest beneficiary of the PLI scheme in the areas of electronics, electronic parts, and automobiles.
“Tamil Nadu has been the largest beneficiary under the PLI scheme in electronics, electronic parts, and automobiles,” Sitharaman stated, underscoring that the state has secured the highest number of approvals in these key sectors. She further added, “Out of the 27 companies that have received approval from the Centre, seven are based out of Tamil Nadu.”
In total, nearly 25 percent of the companies benefiting from the PLI scheme are located in Tamil Nadu. The state is also home to one of India’s two major electronic parts manufacturing clusters, with the other located in Gujarat. To support this sector, the Centre has allocated ₹1,100 crore for setting up the electronic parts cluster in Tamil Nadu.
Sitharaman also mentioned the recent announcement by Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, who visited Zetwerk near Chennai and confirmed the development of two electronic parts manufacturing clusters worth ₹1,112 crore in the region.
Turning to the automobile sector, Sitharaman highlighted that Tamil Nadu is the second-largest recipient of PLI incentives in this domain, with 46 out of 82 approved applications for automobile and auto component manufacturing coming from the state. Additionally, Tamil Nadu has secured approvals for four companies under the PLI scheme for advanced chemistry cell (ACC) battery manufacturing.
The Finance Minister also pointed out that Tamil Nadu has been granted ₹7,453 crore through the Viability Gap Funding Scheme for offshore wind energy projects in Tamil Nadu and Gujarat. She further shared that the Centre is supporting the development of the country’s first Green Hydrogen Hub Port at Tuticorin.
Regarding infrastructure development in the state, Sitharaman revealed that approximately 1,303 kilometers of new railway lines have been added, reinforcing Tamil Nadu’s strategic importance in the nation’s development plans.
Sitharaman’s remarks serve as a testament to the state’s growing role in India’s industrial and infrastructural landscape, with Tamil Nadu emerging as a key player in sectors such as electronics, automobiles, and renewable energy.
