SMOOTH RUN: A state-of-the-art dyeing and finishing unit at the SIPCOT industrial estate in Perundurai.

CHENNAI: It is election time and most of the civic and social organisations have come up with their own manifestos or demands. A section of the trade has voiced its demands and a federation of traders associations (Vanigar Sanggangalin Peravai) is contesting the elections in many constituencies.

But industry prefers to keep off the election platform, though it continues to fund political parties and their candidates in some form or the other. Quite often, industry associations are even reluctant to put forth their problems or demands in black and white, unless pushed to a corner.

Under such circumstances, industry associations cannot be expected to come up with a manifesto or a wish list ahead of the elections. But privately, and on a personal level, captains of industry and heads of the Chambers of Commerce and Industry are more than willing to share their concerns and problems. What do they expect from the next Government?

Common concerns

There appear to be some common problems and concerns that transcend industry sectors or segment. For instance, infrastructure development emerges as the most common and vocal demand of all sections of industry - from the fast growing IT and ITES segments to the new industry clusters or townships that are taking shape.

Though infrastructure remains a huge canvas, the basic demands relate to good roads, access to transport and communications, planned development in all existing and emerging corridors, construction of adequate housing stock to provide for the projected growth in employment over the next five years at least, and the emergence of a systematic and integrated urban transport system for Chennai.

Another area of consensus among both trade and industry relates to the introduction of the Value Added Tax (VAT) regime in Tamil Nadu. As a spokesman of the Confederation of Indian Industry says: "Tamil Nadu and Pondicherry are getting isolated in the country and industry is worried about the shift and flight of business to VAT States.

"Whatever the political reservations before election time, we are hoping that the new Government will accept the need for an early introduction of VAT. If the next Government fails to switch over as early as possible, industry sources feel that it could spark a flight of capital and trade to "more attractive locations and States."

Aside from expecting an "industry and investor friendly Government," trade and industry want the creation of a consultative and advisory council that can become an effective platform for regular dialogue between government and industry. In addition to the Chief Minister, Industries Minister and Revenue Minister, it should have top officials dealing with all matters pertaining to industry and trade, in addition to business representatives.

Such a council could take on-the-spot decisions and provide immediate solutions faced by industry in the State and the Government could also explain its position and seek the cooperation of the private sector in other avenues. The key thing is that it should be a continuing dialogue, not a one-time show.

`Most difficult' processes

With the elimination of the "License Raj," investors now get tied down with just the Pollution Control Board, and in certain cases, with the Union Ministry of Environment and Forests. The complaints are that these have become the "most difficult" processes for want of transparency.

The potential for corruption has got narrowed down to these windows and the utilities, industrialists say.

When the investment climate has become so competitive, industry associations expect the State Government and the Industries Minister to be "pro-active and easily accessible," so that quick decisions could be taken and potential investors easily won over.

Conducting investment road shows in investor markets — both within the country and abroad — has become imperative now, CII sources explain.

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