Vietnamese firm VinFast applies for green clearance to produce EVs at Rs 16,000 crore plant in Thoothukudi
The Phase-1 plant will come up at Rs 425 crore. The entire plant meanwhile will be constructed on 380 acres at a cost of Rs 4,000 crore in initial investment.
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CHENNAI: VinFast Auto India Private Limited, a Vietnamese electric vehicle (EV) manufacturer, has applied for environmental clearance (EC) for starting EV production in Tamil Nadu and to set up its Phase-1 plant in SIPCOT Industrial Estate in Sillanatham in Thoothukudi district. The Vietnamese firm earmarked investments worth Rs 16,000 crore (USD 2 billion) to build the integrated EV facility, during the third edition of the Global Investors Meet held in Chennai in January.
According to an application sent to the Tamil Nadu State Environmental Impact Assessment Authority (SEIAA), VinFast earlier applied for Consent To Establish (CTE) from the Tamil Nadu Pollution Control Board (TNPCB) but the TNPCB directed the firm to obtain environmental clearance before applying for CTE.
The application for the EC was submitted on May 27 and is in the stage of 'under examination'. Once the SEIAA clears the application, it will be forwarded to the Ministry of Environment, Forest and Climate Change for final approval.
The Phase-1 manufacturing plant will come with a built-up area of 96,432 sqm with a total plant area of 113.69 acres. It may be noted that the Tamil Nadu government and VinFast entered into a Memorandum of Understanding (MoU) during the Global Investors Meet (GIM) held in Chennai in January.
The Phase-1 plant will come up at Rs 425 crore. The entire plant meanwhile will be constructed on 380 acres at a cost of Rs 4,000 crore in initial investment.
"VinFast and the state government will work toward a total investment of up to USD 2 billion, with an intended commitment of USD 500 million for the first phase of the project, spanning five years from the commencement date. This move indicates a significant step in VinFast's expansion into the world's third-largest vehicle market," a recent VinFast release said.
Also, it is estimated that VinFast's Thoothukudi plant will employ 3,000 to 3,500 persons from the locality and the plant will have an annual production capacity of up to 1,50,000 EVs. The Phase-1 plant will alone produce 50,000 EVs.
As per the proposal, the construction of the Phase-1 plant will commence in January 2025 and the construction will end by December 2028. Also, the plant area will have a green belt of 9.76 hectares where 60,000 trees will be planted.
