It's business as usual

By Our Special Correspondent

CHENNAI, NOV. 23. The industrial investment scenario in Tamil Nadu is being seen as getting insular from the vicissitudes of political developments, giving it `good marks' in the assessment of multilateral funding agencies.

Despite its traditional low-profile approach in contrast to the hype by two of its computer-savvy neighbours, Andhra Pradesh and Karnataka, Tamil Nadu has been given the unique privilege of making a presentation on the theme, `Promoting the Private Sector - Role of the State Government' at the on-going conclave in Delhi.

At the three-day World Bank-sponsored, `India - States Reform Forum 2000, Fiscal and Governance Reforms for Poverty Reduction' - which began in the Capital today, Tamil Nadu will put forward the State's perspective in the crucial area of economic reforms.

`This speaks volumes about the growth of private sector investments in Tamil Nadu,' official sources told `The Hindu' here. If the present trend was sustained, the rate of flow of fresh investments should no longer be a source for political parties to score points over their rivals, they point out.

In this context, sources contended that notwithstanding the 108- day old Veerappan-triggered hostage crisis and its political fallout in the light of the Supreme Court's strictures and the approaching Assembly elections, it has not affected the industrial investment climate in Tamil Nadu in any way.

When the Opposition leader, Mr. S. Balakrishnan (TMC), had adverted to the latest CMIE figures in the Assembly recently, suggesting that Tamil Nadu had `slipped' somewhat in the race for new investments, the Chief Minister, Mr. M. Karunanidhi, had argued that committed investments, when monitored monthly by the CMIE, were bound to have some variations amongst the leading States.

Claiming that Tamil Nadu continued to be in the forefront in attracting new investments, sources said even during the Veerappan crisis, the State was able to clinch a Rs. 200 crores information technology (IT) project by Ford Motor company. Again on August 21, when the crisis had entered its third week, Mr. J. J. Irani, TISCO's Managing Director, had met Mr. Karunanidhi here to discuss the TATA's plan to invest Rs. 2000 crores in a titanium dioxide project in the southern districts, sources underscored. After that, several rounds of discussions have taken place at the officials level.

`It has been work as usual in the industrial sector,' says the State Industries Secretary, Mr. Shakthi Kantha Das. `A unique feature of the investment profile of Tamil Nadu is that it is a good mix of investments in the new economy (IT and bio- technology) as well as the old economy (traditional manufacturing sector),' he added.

More recently, after the Government had played host to a high- powered economic delegation from Japan, which included the Chief Executives from leading Japanese companies, sources said Tamil Nadu had received several inquiries and proposals for industrial investments.

Stating that another delegation of leading foreign companies were scheduled to make a visit to Chennai in January 2001, sources discounted skepticism on this front saying at least some of the investment proposals should fructify in the coming months.

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