Tamil Nadu chief minister C Joseph Vijay at the investors’ conclave in Aug at which 100 MoUs were signed
“The six months are a constructive start, with the Investment Promotion Commission, constituted on Nov 3, being a key step.
It can issue binding directions to departments on clearances and incentives for large, strategic investments and support existing businesses in expanding,” says Nithin Chandra, senior partner at Kearney. Six months into the C Joseph Vijay-led TVK govt, early indications are that this continuity remains intact. Fresh investment commitments, efforts to speed up approvals and plans to improve industrial infrastructure point to an administration keen to establish its credentials with investors. P Ravichandran, chairman of CII Southern Region points to the govt’s zero-tolerance of corruption, greater administrative accountability and an open-door approach to resolving business bottlenecks.
TN got investment commitments worth more than `1.02 lakh crore through 104 MoUs in its first 100 days, with the potential to generate more than 1.2 lakh jobs, according to industry minister S Keerthana. Nearly 100 MoUs were signed at the Aug investors’ conclave. Significant is that 54 of them are outside the state’s four core industrial districts.
“The quality of the mix matters as much as the size,” says Keerthana, adding that the govt is working to translate commitments into manufacturing capacity and employment. Planned worker accommodation and childcare facilities will help employees take up jobs and remain in them,” says Chandra. Sustaining that position will require addressing persistent business concerns, including access to power and water, their cost, and availability of workers, says Mahambare.
The govt’s most visible achievement so far is its investment pipeline. The state is also formulating a new industrial policy, which the minister describes as an employment policy. “This could spread employment opportunities and create business for local suppliers. However, success will depend on reliable utilities, skill of the workforce and market access. Investment announcements alone, however, cannot establish the success of a six-month-old govt. Vidya Mahambare, director of research at Great Lakes Institute of Management, cautions against drawing conclusions early.