8MARCH 2024TOP STORIESTATA TO ESTABLISH THEIR ADVANCED MANUFACTURING UNIT IN TAMIL NADUTata Motors has announced plans to establish a state-of-the-art vehicle manufacturing facility in Ranipet, Tamil Nadu, with an investment of 9,000 crore. The Tata group company has signed a memorandum of understanding (MoU) with the Tamil Nadu government for this purpose, marking its second manufacturing plant in southern India. The new facility is anticipated to create approximately 5,000 employment opportunities.Chief Minister MK Stalin hailed this investment as a significant milestone for Tamil Nadu, reinforcing the state's status as the preeminent automobile hub of India. He likened the impact of Tata Motors' investment to that of Hyundai's during the tenure of former Chief Minister Kalaignar.The signing ceremony, attended by Chief Minister Stalin and senior executives of Tata Motors, took place in Chennai. This venture represents Tata Motors' inaugural investment in Tamil Nadu, signifying a historic moment for both the company and the state.Tamil Nadu's Industries Minister TRB Rajaa expressed enthusiasm about the investment, emphasizing Tamil Nadu's pivotal role as the automobile capital of India. He underscored the state's potential as a significant driver of economic growth and viewed Tata Motors' investment as a catalyst for further development.This announcement comes as another major boost for Tamil Nadu's automotive sector, following a recent announcement by Vietnamese company VinFast regarding its investment plans in the state. Together, these developments reaffirm Tamil Nadu's prominence in the automotive industry and its commitment to fostering industrial growth and employment opportunities. PRIVATE SECTOR OIL COMPANIES SEEN GRABBING AVIATION FUEL MARKET SHAREPrivate sector players in India's aviation fuel business are witnessing a significant increase in market share as they expand their supply networks and secure more contracts with airlines. Joint ventures like Reliance-BP and Shell-MRPL have expanded their market share to 9 percent in February, up from 5.5 percent in the same month last year and 6 percent in February 2022.Reliance-BP's share increased to 5.4 percent in February from 3.3 percent a year earlier and 3.9 percent in 2022. Similarly, Shell-MRPL's share grew to 3.6 percent from 2.2 percent a year earlier and 2.25 percent in 2022.Traditionally, state-run refiners have dominated India's aviation fuel market. However, private players have been making strides over the past decade, benefiting from open access at airports. Reliance and its joint venture with BP supply jet fuel at approximately 30 airports and cater to most domestic airlines. Shell's joint venture sources jet fuel from MRPL's Mangaluru refinery to supply airports in South India.Private players are expanding their domestic market share despite slightly lower margins on jet fuel exports compared to domestic sales. Their efforts to expand the supply network to more airports and secure new contracts with airlines have contributed to their increased market share.The aviation fuel market has seen a resurgence this year after facing lower volumes during the pandemic due to travel restrictions. Jet fuel sales have surpassed pre-pandemic levels, driven by a surge in domestic air traffic to record highs.The presence of open access at airports has facilitated competition between private fuel suppliers and state-run oil companies, which control the supply infrastructure. Most major airports now have open access, enabling private players to compete effectively in the market.
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