TATA mulls auto, energy investments in Sri Lanka
COLOMBO (EconomyNext) – India’s TATA group is considering investments in making automobiles for export to Pakistan, and energy and infrastructure in Sri Lanka, according to a visiting official.
The Indian conglomerate announced its new Sri Lankan investment push largely aimed at using the island as the primary base to enter the competitive Pakistani market, an Industry and Commerce Ministry statement said.
“We want to use Sri Lanka as our manufacturing base to expand to the Pakistani market,” it quoted Madhu Kannan, member of TATA Group Executive Council and Group Head of Business Development and Public Affairs, as saying.
“We understand that 35 percent value addition is needed to export to Pakistan under Lanka-Pakistan Free Trade Agreement and we are ready for this,” Kannan told Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka, during a meeting.
The TATA delegation consisted of seven companies operating under TATA Sons Ltd.
Kannan said the firm wants to expand its current Sri Lankan partnership across five key sectors – automobiles, power and energy, infrastructure including urban, tourism, and consumer products.
“The primary product-line that we want to send from Sri Lanka to Pakistan is TATA automotives,” he said.
“We want to start by exploring this much more in terms of export tariff structures and stages of value addition.”
Kannan said TATA would like to start with large scale wind farms in the northern province as well as supplying transmission lines for Sri Lanka’s national grid.