Chennai, Feb 25 (IANS): Tamil Nadu Chief Minister M.K. Stalin on Sunday laid the foundation stone for the first phase of Vietnam's VinFast group’s electric vehicle (EV) plant in Tuticorin.

The Vietnam group’s Indian arm VinFast Auto India Ltd will invest Rs 4,000 crore in the first phase out of the planned Rs 16,000 crore ($2 billion) investment, the state government said.

At the Global Investors Meet held here in January, VinFast Auto Ltd had signed a Memorandum of Understanding (MoU) with the Tamil Nadu government for the investment.

The company’s plant, which is spread across 380 acres, will have a capacity to roll out 1,50,000 vehicles per annum.

With this project, Tamil Nadu apart from being India’s Auto Hub, will also be known as India's EV Capital.

Industries Minister T.R.B. Rajaa, who was also present on the occasion, said that over 70% of all electric two wheelers and 40% of all electric four wheelers sold in India, were being manufactured in Tamil Nadu.

After the inauguration of the foundation stone of the EV unit, Stalin distributed compensation for the flood victims of Thoothukudi and Tirunelveli.

The Chief Minister lashed out at the Centre and said that while the Central government did not provide compensation to the flood victims, the state government was providing support to those affected by floods.

He said that despite the central government putting roadblocks, the state government was achieving its objectives and garnering investments for the state from several sources.

Stalin said that the DMK was a people-centric political party and that its policies and programmes were based out of genuine care for the deprived and downtrodden people of the state.

It may be noted that since Stalin assumed office as Tamil Nadu Chief Minister in 2021, there has been a sustained move to garner investments in the state.