Chennai loosing to Sanand for Automobiles

In continuation to the article we wrote about Companies like Ford, Tata starting their manufacturing units in Sanand Gujarat.

Here are the reasons Gujarat was opted instead of Chennai, Tamil Nadu -

Companies with factories in Gujarat have quicker and easier access to markets in west and north India, both of which are highly important regions for auto sales. According to experts, companies with operations in Chennai, for example, can take up to 10 days to transport cars from Tamil Nadu to north India.

Add to that the state government’s pro-business policies and a skilled work force. Why it is not there in Chennai and Tamil Nadu?

Sanand is part of a special investment region, which allows companies that invest there to benefit from a range of tax incentives, as well a fast-track approval process by the Gujarat State Government.

Industry friendly government for the industries to invest in their place. It is claimed that Government is not keen in being proactive about Industries to invest in Tamil nadu, like the way Modi or Chandrababu Naidu had done to their states, when they were chief ministers respectively.

According to media reports, State-owned Gujarat Industrial Development Corporation has also acquired at least 5,000 acres of land from farmers in villages around Sanand to give to automobile companies interested in expanding/launching operations there. Land has also been set aside for supplier operations.

All of these factors make Sanand a very worthy challenger to Chennai, the current favourite of automobile manufacturers.