The Tamil Nadu government will set up an ‘Auto City’, considered a first of its kind initiative under the automobile and auto component policy launched by Chief Minister Jayalalithaa.

It will be under the theme ‘Tamil Nadu, the Partner in Automotive Sector Investment’.

The state government would form an Automotive Industrial Development Centre offering investment facilitation services to companies willing to invest in the automotive industry, the policy document said.

It said AIDC would help the government put in place appropriate policy framework. It would also support and facilitate its implementation and interventions aimed at making Tamil Nadu a destination for manufacture and export of motor vehicles.

As per AIDC, the government would set up an “Auto City”, a state-of-the-art over 1,000 hectare industrial park as a JV for domestic and global automotive and auto-component firms.

Besides, an Automotive Suppliers Park would come up to improve the logistics competitiveness for units set up in it.

The Auto City would have a logistics hub to provide multi modal transport, a design and technological park and common infrastructure like effluent treatment and waste management utilities. It would also dwell on transport of goods to various ports on 24 hour basis for movement of consignment trucks.

“The Government of India, Ministry of Shipping, will be impressed upon the need to construct multi-level parking in the major ports of State”, the policy document said.

Additionally, the state government would also promote new auto clusters in Tiruchirapalli, Tirunelveli and Tuticorin districts while existing ones in Madurai and Coimbatore would be strengthened.

SIPCOT would promote Auto-Industrial Parks in Coimbatore, Tiruchirapalli,Tuticorin and extend infrastructure and common facilities to attract more investments from small and medium auto-component industries.

On the automobile policy, it said a package of incentives is currently available only for ultra-mega auto projects.

Though automobile and components constitute an important segment, Tamil Nadu does not have a separate integrated and comprehensive policy to retain the leadership’s position, the document said.

The state has six car manufacturers around Chennai. They are — US car maker Ford, Korean-auto major Hyundai, Renault Nissan Automotive India Pvt Ltd, the JV plant set up by France-based Renault and Japan-headquartered Nissan and Germany’s BMW, with a total capacity of 13.80 lakh units per year, it said.

Tamil Nadu accounts for 35 per cent of India’s auto component production worth USD 6.2 billion.

Aimed at making Chennai one of the top five global auto-clusters, the state government had on Friday unveiled the first of its kind automobile policy, an industrial policy and second volume of ‘Tamil Nadu Vision 2023’.