Industry waits for pro-active policy

By V.Jayanth

CHENNAI, OCT. 5 The cloud of uncertainty over the political leadership in Tamil Nadu may affect the State's prospects in emerging as the Number One investment destination in the country.

In recent years, the State has moved to the top bracket of business-friendly investment destinations. And when the AIADMK was swept to power in May and Ms. Jayalalithaa assumed office as Chief Minister, the expectations were high.

Of course, trade and industry knew that there were `legal hurdles' in Ms. Jayalalithaa's way, which had to be cleared. Nearly five months after the election, the atmosphere of uncertainty seems to have intensified. There is no longer the November 14 deadline for Ms. Jayalalithaa to get elected to the legislature. But there is still the big question mark over her `eligibility' to contest the elections any time soon.

There has been no positive signal from any of the courts-from the Special Court to the Supreme Court-and it remains to be seen what will be the Madras High Court's verdict in her TANSI case appeals. Indications are that the hearings will drag for some time, possibly till November.

Trade and industry circles are still confused about the `nature and structure of the administration' that is now in place. They know that it is the AIADMK which will govern the State and whoever is the Chief Minister, it will be Ms. Jayalalithaa who remains in control. Yet, they would like to see some system in place-on the Shiv Sena model perhaps-where the party boss calls the shots and the Chief Minister runs the administration.

Industry sources do not know if they should at all call on the Chief Minister, Mr. O. Paneerselvam, or keep in touch with Poes Garden alone. The visiting Malaysian delegation has set the trend that could be followed, but the sources are wondering how long the new Chief Minister will last, when he keeps calling himself a `stop-gap arrangement'.

The problem is that Mr. Paneerselvam may have to stay on longer than he imagined and he cannot possibly remain a `caretaker' beyond a point.

Some of the captains of industry want the State Government to take a more pro-active role in attracting industries. ``This is a competitive world today and many of the Chief Ministers are now leading roadshows within the country and abroad to woo investors. We cannot afford to adopt a laid-back approach as we run the risk of being left out in the race''.

Many of the companies and their liaison officers remain in constant touch with the bureaucrats, who deal with the problems on a day-to-day basis. But beyond a point, it involves policy and calls for political leadership to clinch and clear projects. Any slip-up at this stage, industry feels, will lead to a slowing down of the pace.

Official sources argue ``there has been no let-up in the pace and Tamil Nadu continues to be the choice of many investors. The perceived slowdown in investments or industrial production is part of a national and even global phenomenon and certainly not peculiar to Tamil Nadu''.

As far as bureaucrats are concerned, they seem to have no problem with the existing arrangement and wait for orders from Poes Garden. ``So long as there is no conflict of interests there can be no problem'', they explain.

But industry and trade are waiting for this `system' to get established. They are familiar with the `Bal Thackeray' model, but want to know whether the Chief Minister can follow up on the instructions or direction of the party boss. They are also waiting to find out if Mr. Paneerselvam will continue for some time, for which, only the High Court can provide an answer. Till then the uncertainty will persist.

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Section  : Southern States
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