The Federation of Indian Chambers of Commerce and Industry (FICCI) has offered to partner with the Tamil Nadu Government to achieve the goals of its Vision 2023. Simultaneously, the State Finance Minsiter, Mr O Panneerselvam, and the Industries Minister, Mr P Thangamani, has reiterated the commitment of the state government to establish Tamil Nadu as new growth model in India and invited investment partners who can see growth in the old and the new economy, and participate in the generation and creation of wealth.
The Apex industry organization has drawn a road map for a constructive partnership for development with Tamil Nadu in a research paper titled `Empowering India –Redesigning G2B Relations, Tamil Nadu’.
The report submitted to Mr Panneersealvam and Mr P Thangamani at a meeting on `Development Plans for Tamil Nadu’, “aims to help make significant changes in the business environment of the State’’.
Presenting the salient features of the document, prepared in association with Bain & Company, Dr Rajv Kumar Secretary General of Ficci, said that “the objective of the report is to identify some key factors which impact the business environment in India, identify progressive and high impact reforms that have been implemented across different States and highlight opportunities for Implementing reforms in Tamil Nadu’’.
Explaining the fundamental aspects of Vision 2023, Mr Panneerselvam said that over the next 11 years Taml Nadu would aim to grow its GSDP at 11% a year which would be 20% more than the expected national GDP growth rate during the same period. The Vision also envisages making Tamil Nadu the `Global Manufacturing hub’, he said.
The Minister said the “heart of Vision 2023 is provision of world class infrastructure. Historically spending on infrastructure development in Tamil Nadu has been 4% to 5% of the GSDP, while the requirement is to increase the annual spending on infrastructure sector about 10% of GSDP from 2015 onwards and further to 11.5% from 2019 onwards. The total investment to enable universal access to infrastructure services over the 11-year period is estimated at Rs 15 lakh crores’.
Mr Panneerselvam said more than two thirds of the financing has to come from non-state governmental sources, particularly the private sector. Hence improving the standing of Tamil Nadu on the investment climate sweepstakes is one of the key planks of Vision 2023.
Mr Pannerselvam said “we need partners who can see growth in the old and the new economy, and participate in the generation and creation of wealth’’.
The Tamil Nadu Industries Minister Mr P Thangamani said that to make Vision 2023 a reality, the State government has drafted the New Industrial Policy 2012 with many innovative features. “Industrial Policy 2012 will accelerate the pace of growth of manufacturing sector to 14% . Apart from this, the State government will be shortly announcing sectoral policies for thrust sectors namely automobiles, and auto components, biotechnology, aerospace industry etc. These polices will make Tamil Nadu an ideal platform for manufacturing’’.
Mr Thangamani said in addition to the recently signed MoUs with five major companies, Daimler, Yamaha Motors, Ashok Leyland Nissan Royal /Enfield and Philips Carbon, 27 major investment proposals were in hand with a cumulative investment of over Rs 30,000 crore.
The Industries Minister said there were immense opportunities in Tamil Nadu and I invite investors to the State, a land of opportunity endowed with immense potential. He reiterated the commitment of the state government to “establish strong and vibrant Tamil Nadu as new growth model in India’’.
Answering questions from the FICCI Members, Mr N Sundradevan Principal Secretary, Industries Department, Government of Tamil Nadu, said the State budget has made allocation for the infrastructure development of the North Chennai, especially, Ennore, Kattupally area where substantial new investments were taking Place.
Mr K Shanmugam, Principal Secretary Finance Department, government of Tamil Nadu, said the State government was for agro- processing industries that would include farmers as partners. The State government would contribute 25% of the equity, on behalf of the participating famers, of such new ventures, he said.
Mr R.V Kanoria, FICCI President, said Tamil Nadu was the only State with a Vision 2023 with economic and social objectives. It was one of the most economically progressive States with a six-fold increase in the per capita income of its citizens.
While offering to partner with the State government in its development endeavors, Mr Kanoria wanted it to give a big push to the power sector.
Ms Naina Lal Kidwai, senior Vice-president, FICCI, said, the Vision 2023 would make Tamil Nadu equal to the developed countries in Asia and the most relevant State in India. FICCI would like to work with Tamil Nadu very closely to achieve its vision, she said.
Mr Kamal Hassan, chairman of FICCI Entertainment Committee, graced the occasion and requested the State Ministers to persuade Chief Minister Ms J Jayalalithaa, to join `FICCI Frames’ (Media entertainment and business conclave) to celebrate the 100 years of Indian Cinema in Chennai shortly.