Tamil Nadu government has asked the Asian Infrastructure Investment Bank to join hands with the state to promote a new Tamil Nadu Infrastructure Fund Management Company (TNIFMC).

The state also said the TNIFMC would float infrastructure financing vehicles as permitted by the Securities and Exchange Board of India (Sebi).

While addressing the delegation led by Le Yucheng, ambassador of China to India, Tamil Nadu chief minister O Panneerselvam said that was enormous potential for cooperation between Tamil Nadu and China. Some of the promising areas he observed include electronic hardware, semi conductors, textiles, heavy engineering, automobiles and parts, information technology and infrastructure.

Tamil Nadu is also hoping to attract investment from the Chinese banks and funds in to the IFVs being promoted by the TNIFMC.

At present, there are about 100 Chinese companies operating in India. Of them, only six are operating in Tamil Nadu.

The Chinese ambassador mentioned China had proposed to establish a consulate in Chennai soon.

China and India are collaborating in developing a high-speed rail link between New Delhi and Chennai, and for increasing the speed of the Chennai-Mysore rail line.

The chief minister is expecting substantial Chinese participation in the Global Investors Meet to be held here in May, and highlighted the possibilities of investment in the renewable energy sector, particularly in solar energy.