Tamil Nadu, a state in southern India, has announced a new batch of inward investments from foreign companies totaling about $4.2 billion.
Among the major investments presented by the Tamil Nadu government are projects by Malaysian state oil and gas company Petronas, Switzerland-based woodworking manufacturer XyloNetics and US-based construction equipment maker Caterpillar.
The biggest project by far is Petronas’ plan to produce green hydrogen at Thoothkudi, with a total investment of 34 billion rupees ($4.13 billion). The company plans to build a green hydrogen and ammonia plant, which runs on solar energy, on a site of about 4,000 hectares.
Petronas said in March 2023 it was targeting the Indian and Australian markets for major clean energy investments, which in addition to hydrogen include renewable energy and electric vehicle charging points. The company’s existing operations in India span the trading of crude oil, liquid petroleum gas, petrochemicals, lubricants, liquefied natural gas and renewable energy.
Switzerland’s XyloNetics is expanding into the Indian market for the first time. It will invest Rs 700 crore to set up a manufacturing unit at the under-construction International Furniture Park at Sipcot Estate in Thoothkudi.
Caterpillar has operated in India for many decades and has existing manufacturing facilities in Tiruvallur, Hosur, Aurangabad and Banda. Its latest investment of Rs 400 crore will see the expansion of its construction equipment manufacturing facility in Tiruvallur, which is the company’s oldest factory in the country, having opened in 1971.
India was the most popular foreign direct investment destination for job creation in 2022, benefiting from a decline in inward investment in China.
