VinFast seeks green clearance for EV plant in Thoothukudi

01 May 2024

VinFast Auto India, a Vietnamese electric vehicle (EV) manufacturer, expressed its intention to commence EV production in Tamil Nadu and to establish its Phase-1 plant in SIPCOT Industrial Estate in Sillanatham in Thoothukudi district. The company planned to invest Rs 160 billion to construct the integrated EV facility, as announced during the third edition of the Global Investors Meet held in Chennai in January.

It was conveyed in an application to the Tamil Nadu State Environmental Impact Assessment Authority (SEIAA) that VinFast had previously sought Consent To Establish (CTE) from the Tamil Nadu Pollution Control Board (TNPCB). However, the TNPCB instructed the company to obtain environmental clearance before proceeding with the CTE.

The submission for the EC took place on May 27 and is currently in the stage of 'under examination'. Once the SEIAA approves the application, it will be forwarded to the Ministry of Environment, Forest and Climate Change for final endorsement.

The Phase-1 manufacturing plant was proposed to have a built-up area of 96,432 sqm within a total plant area of 113.69 acre. It was highlighted that the Tamil Nadu government and VinFast had signed a Memorandum of Understanding (MoU) during the Global Investors Meet (GIM) held in Chennai in January.

The Phase-1 plant was projected to cost Rs 4.25 billion. The entire plant, on the other hand, would be developed on 380 acres with an initial investment of Rs 40 billion.

"VinFast and the state government will collaborate towards a total investment of up to USD 2 billion, with an initial commitment of $ 500 million for the first phase of the project, spanning five years from the commencement date. This indicates a significant move in VinFast's expansion into the world's third-largest vehicle market," stated a recent release from VinFast.

Additionally, it was estimated that VinFast's Thoothukudi plant would provide employment to 3,000 to 3,500 individuals from the region, with an annual production capacity of up to 1,50,000 EVs. The Phase-1 plant alone would manufacture 50,000 EVs.

According to the proposal, construction of the Phase-1 plant was scheduled to commence in January 2025 and conclude by December 2028. Furthermore, the plant area would include a green belt of 9.76 hectares, where 60,000 trees would be planted.

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