State enterprise Thailand Tobacco Monopoly (TTM) has received cabinet approval to use its own funds to construct a THB 16.2 billion (EUR 400 million) factory, reports the Bangkok Post.

The government first began talking about moving TTM out of Bangkok in the mid-1990s. In August last year, the board of TTM approved the purchase of land in the industrial estate in Ayutthaya province. 
Deputy government spokesman Vachara Kannikar said the cabinet also approved a finance ministry proposal to cut TTM's contribution to the national treasury in fiscal 2012. At present TTM contributes 88 per cent of its net income to the treasury.
The ministry reasoned that although TTM is profitable, it has limited access to funds since some financial institutions do not want to lend to tobacco companies, and some institutional investment groups have similar restrictions. (pi)