Finance Minister Nirmala Sitharaman on Saturday dismissed the Tamil Nadu government’s claims of discrimination in Central assistance, pointing to substantial funds allocated and numerous beneficiaries in the State.

She highlighted Tamil Nadu as a key recipient of various Central schemes, particularly the Productivity-Linked Incentive (PLI) programme, which has received the predominant share among all States.

Speaking at an event organised by the Chennai Citizens Forum, Sitharaman highlighted Tamil Nadu’s robust presence in the semiconductor, electronics and automobile manufacturing sectors. She said the State is home to over 47 manufacturing units supported by the Union Ministry of Electronics and Information Technology (MeitY). Additionally, Tamil Nadu has secured one-fourth of the approvals under the PLI Scheme for Large-Scale Electronics Manufacturing, with seven out of 27 units approved under PLI 2.0 (25 per cent) located in the State.

Further strengthening Tamil Nadu’s electronics ecosystem, Union Minister Ashwini Vaishnaw recently announced the establishment of two Electronics Manufacturing Clusters with an investment of over ₹1,000 crore. These clusters will be set up in Gujarat and Tamil Nadu, with locations such as Pillaipakkam and Manallur in Tamil Nadu under consideration.

The State also holds a prominent position in approvals under the PLI scheme for the Automobile and Auto Component Industry, ranking second in the number of approved manufacturing units.

Out of 257 PLI projects, 82 units have been approved, with 46 based in Tamil Nadu. Additionally, Tamil Nadu is home to one of the four firms approved under the PLI Scheme for Advanced Chemistry Cell (ACC) Battery manufacturing.

Sitharaman further highlighted the Centre’s efforts to position Tamil Nadu as a hub for futuristic technologies. She said that last year, the Union Cabinet approved ₹7,453 crore under the Viability Gap Funding (VGF) scheme to develop India’s first offshore wind energy projects (500 MW each) off the coasts of Gujarat and Tamil Nadu. Under the Centre’s help, the State is also set to host the country’s first Green Hydrogen Hub Port in Thoothukudi.

Financial support

Earlier in her speech, the Finance Minister detailed the Centre’s financial support for key infrastructure projects in the State, assistance for labour-intensive industries such as leather and textiles, and the allocation of 50-year interest-free loans to Tamil Nadu to boost capital expenditure and stimulate economic growth.