The Tamil Nadu Deputy Chief Minister according to numerous reports in media, has invited the South Korean electronics giant Samsung to invest in a facility to produce solar photo-voltaic (PV) cells in the state while inaugurating the Samsung’s second refrigerator facility in India (first unit is located in Noida) and the sixth in the world. The manufacturing facility has been setup with an investment of $75 million at Sriperumbudur in Chennai.
The company was targeting the overseas markets and wanted to make Sriperumbudur facility as a “manufacturing hub” for Samsung. The company inaugurated the Chennai facility in 2007 with an investment of $25 million for producing flat television panels, LCD television sets and air conditioners.
The company said it plans to invest another INR3.50 billion at the Chennai facility over the next five years.
While inaugurating the facility the Deputy Chief Minister of Tamil Nadu said: “The Government of India has recently announced a programme called Jawaharlal Nehru Solar Mission, with an ambitious target of promoting 20,000 MW of solar power projects. This programme has created a huge demand for solar PV cells and modules.”
He requested Samsung to consider investing in Tamil Nadu, in this emerging area of solar PV cells in addition to manufacturing LCD (liquid crystal display), plasma panels, compressors and others.
Citing a study conducted by Finnish mobile phone maker Nokia, the deputy chief minister said the total cost of manufacturing in Chennai is much cheaper than even China by over 11 percent in net present value (NPV) terms.
Korean Ambassador to India, Kim Joong Kuen sought the Tamil Nadu government’s cooperation for companies to set up units.
‘Chennai has become a symbol in Korean-India economic relations.So far 170 companies have invested over 3 billion dollars,employing over one lakh.. to facilitate investments by Koeran companies, Tamil Nadu’s cooperation is vital,’ he said.
Korea, on its part, would do its best to assist companies from the country to invest in Tamil Nadu, he said.
Given the keen interest in the National Solar Mission from the American and European countries, it would be interesting to see how the Korean giant reacts given the fact that numerous Korean companies including itself are already present in Tamil Nadu as mentioned by the ambassador and have secured attractive incentive packages from the state.