Dear brothers and sisters,
There is a saying in villages “Leaving the rope and holding the tail (of bull)”. Similarly having slept over for four years and now suddenly waking up announcing Global Investor Meet to attract investments, they are staging a drama. All dailies which reported the conference did not fail to note the prancing of ADMK cadre, the traffic congestion all over the city and the resenting murmurs of the public. Some years back, the ADMK rulers made huge publicity of having invited investors, signed MoUs for several hundred crores and creating jobs for several hundred persons. But neither investments came not employment opportunities were created. When the MoUs entered into then have not been realized constructively, will there be any value for the MoUs they enter into, on their way out? Hence even the investors who have come now have informed very carefully that they have planned to invest so many crores in the next three and five years. In spite of the publicity that investors from various countries have descended for the present GIM, no foreign investor seems to have addressed during the inaugural. I will briefly narrate what these ADMK rulers did in the last four and a half years for industrial investment and what was the result.
In the budget presented in the Assembly by Finance Minister O. Panneerselvam on 13.2.2014 it was stated that “this government would conduct a GIM in the coming October month at Chennai to encourage industrial potential and infrastructure in our State, for which the Budget provides Rs.100 crore”. This is an announcement read out last year! But as announced by the Minister the investor meet was not held in October last. This is the fate of the announcement made in the budget itself!
When asked about it, they made a gigantic announcement that on a single day in 2012 MoUs were signed with 12 firms through which 36,855 would get jobs and industries with investment of Rs. 20,925 crore would be started, and again announced signing of MoUs with 16 firms for Rs. 5,081 crores; what happened to those announcements? Did the assured investment come? After that, forgetting the announcements already made, the informed anew that MoUs worth total investment of Rs. 26,625 crore was signed following which investment of Rs.10,660 crore was made creating additional employment opportunities for 10,022 persons.
Later, Panneersevam announced that the GIM would be conducted in May 2015. That was also not held. Speaking at Coimbatore, Chief Minister Jayalalitha said that in her three year regime MoUs with 33 Indian companies and MNCs had been signed for investment of Rs. 31,706 crore. MoUs can be entered into with many firms but only if they translated into starting of industrial units that the State will be benefitted. But what is the real situation? Not me but what the common weekly ‘Ananda Vikatan’ wrote?
“It is said that the expansion of Hyundai car factory function in Tamil Nadu will be set up in Rajasthan and Gujarat. ‘Isuzu’ firm has gone to Andhra. The Rs.1000 crore expansion unit of ‘Saint Gobain’ glass manufacturers functioning in Chennai has gone to Rajasthan. Tamil Nadu-based Ramco Cements has obtained approval of Andhra Pradesh to set up its 2.5 million ton cement factory in Ongole. The Industries Ministry has not focused even on retaining these units. According to statistics industrial investment in Tamil Nadu has come down by about Rs. 50,000 crores. As there are several obstacles in industrial sector, multi-national/domestic companies are hesitant to invest in Tamil Nadu. The Industries Ministry is latent without capacity to even to conduct a meet to attract investors toward TN. Industrialists could not even meet the Industries Minister. As there is no industry-friendly atmosphere in TN with power cut, administrative difficulties and increasing costs, many multi-national companies are focusing to shift their units to other States”, this is the certificate issued by ‘Ananda Vikatan’ to the Industries department of Jayalalitha regime.
‘Faxconn’ industry functioning in TN has entered into an agreement for Rs.32,000 crore to shift to Maharashtra. At least the industries running here were retained? The Tuticorin Spic industry already running in TN and Madras Fertilizers Ltd are on the verge of closure. Tamil Nadu Petro-products Ltd, Tiruchy Distilleries and Tuticorin Alkaline Chemicals Ltd,are already closed. When production in the Nagarjuna Petro Chemical Industrial Complex, Cuddalore started three years back with several thousand crore investment will start is not known. Spinning mills are sickening due to many problems; cracker manufacturing industry is crushing due to indirect encroachment; and handloom and power loom sector is shrinking. The situation obtaining now is like losing what was in store in the thought of the seeking something illusionary.
In the meet prelude to the GIM proposed to be held in May last on 13.2.2015 huge publicity was made that MoUs with 7 firms for Rs.18,000 crore would be signed but is it not a shame that the prelude meet did not take place?
The State’s Industries Minister openly said that the Andhra Pradesh government invited industries offering land at cheaper price and tax concessions. Similarly whenever the AP Chief Minister visited Chennai he invited our industrialists and make offers. This made clear the position of TN. These rulers should feel ashamed if the CMs of other States come here, convene meetings and make direct appeal to industrial investors.
We did not imaginarily say that the Karnataka Chief Minister arranged a meeting at Coimbatore and invited industrial investors. ‘Dinamalar’ is not a DMK daily but it is highly critical of DMK. The heading of a report in that daily on January 22 last was “TN pushing, Karnataka attracting-investment of Rs 12,000 crore lost”.
In the meanwhile there was a report that Panneerselvam held talks with UK Minister for Commerce on companies of England investing in TN and with the Governor of South Carolina State of the USA for more investments in TN. We don’t know what happened to it.
It was announced that the GIM would be held on May 23 and 24 and there were reports that officials went to other countries to conduct road shows. The Industries Minister said that number of foreign investors would participate in the GIM in Chennai and there were chances of getting investment of over Rs. One lakh crore. In a few days after the announcement the government announced further postponement of the meet. A consultation meeting for inviting local industrialists was reportedly held at Salem in which the Industries Minister, Highways Minister and special secretary to Industries department participated and the Ministers said the GIM would be held in May. But even without their knowledge, the meet was postponed and it was announce in Chennai that it would be held in September.
With the heading that nobody need panic on reports that investment of several thousand crore and investors would come to Tamil Nadu through GIM, a e magazine has provided lot of details. The ‘Times of India’ daily says that MoUs for investment of Rs. One lakh crore would be signed. ‘The New Indian Express’ informs that totally the investments would exceed Rs 2.5 lakh crore with over Rs. One lakh crore in power sector alone. When not even one paisa of investment had come through largely exaggerated claims of investments, reports are coming exaggerating agreement on paper. How these MoUs are to be translated into deeds? When will they come into operation? Has any time limit been fixed for it? Do the TN government and the investors who enter into MoUs have the basic means to implement the assurances given by them? Will the industrial policy of the government and government officials approve and cooperate without delay for the execution of industrial projects? It is natural that all these questions arise in the minds of all who read these reports. The most important question is how many of the MoUs signed will truly come into execution! Before searching for the answer for this question, we should know what sort of progress has been achieved in TN in the last four years relating to industrial investments.
In 2011, MoUs for investment of Rs 73,298 crore were signed, of which investment of only Rs.235 crore has reached TN. Everybody should feel ashamed that the investment that came in fact was just 0.3 percent.
In 2012, MoUs for investment of Rs. 21,253 crore were signed but investment of only Rs. 524 crore has come into operation. That is only 2.4 percent came into operation.
In 2013, MoUs for investment of Rs.27,380 crore were signed but only Rs. 2292 crore that is 8.3 percent came into operation.
In 2014, MoUs for investment of Rs. 14,596 crore was signed but investment of only Rs.2,500 crore has reached TN, that is just 17 percent.
In 2015 up to June, MoUs for investment of Rs. 17.412 crore and works for investment of only Rs.41 crore was carried out. It is shameful that only 0.2 percent of investment came into execution.
In ADMK regime, the investments that have come into operation from June 2011 to July 2015 is only 5.64 percent. The reasons for the gap between MoUs entered into and those coming into execution are the basic infrastructure like electricity, water and transport facilities are not to the level of necessary quantity and quality, the industrial policy of the government and power structure not adopting industry friendly approach. Without following any appropriate method to attract industrial investments in the last four years, after meeting very big defeat in attracting investments, what results will happen by making tall claims at the eleventh hour just for 2016 election publicity?
Affectionately,
M.K.
There is a saying in villages “Leaving the rope and holding the tail (of bull)”. Similarly having slept over for four years and now suddenly waking up announcing Global Investor Meet to attract investments, they are staging a drama. All dailies which reported the conference did not fail to note the prancing of ADMK cadre, the traffic congestion all over the city and the resenting murmurs of the public. Some years back, the ADMK rulers made huge publicity of having invited investors, signed MoUs for several hundred crores and creating jobs for several hundred persons. But neither investments came not employment opportunities were created. When the MoUs entered into then have not been realized constructively, will there be any value for the MoUs they enter into, on their way out? Hence even the investors who have come now have informed very carefully that they have planned to invest so many crores in the next three and five years. In spite of the publicity that investors from various countries have descended for the present GIM, no foreign investor seems to have addressed during the inaugural. I will briefly narrate what these ADMK rulers did in the last four and a half years for industrial investment and what was the result.
In the budget presented in the Assembly by Finance Minister O. Panneerselvam on 13.2.2014 it was stated that “this government would conduct a GIM in the coming October month at Chennai to encourage industrial potential and infrastructure in our State, for which the Budget provides Rs.100 crore”. This is an announcement read out last year! But as announced by the Minister the investor meet was not held in October last. This is the fate of the announcement made in the budget itself!
When asked about it, they made a gigantic announcement that on a single day in 2012 MoUs were signed with 12 firms through which 36,855 would get jobs and industries with investment of Rs. 20,925 crore would be started, and again announced signing of MoUs with 16 firms for Rs. 5,081 crores; what happened to those announcements? Did the assured investment come? After that, forgetting the announcements already made, the informed anew that MoUs worth total investment of Rs. 26,625 crore was signed following which investment of Rs.10,660 crore was made creating additional employment opportunities for 10,022 persons.
Later, Panneersevam announced that the GIM would be conducted in May 2015. That was also not held. Speaking at Coimbatore, Chief Minister Jayalalitha said that in her three year regime MoUs with 33 Indian companies and MNCs had been signed for investment of Rs. 31,706 crore. MoUs can be entered into with many firms but only if they translated into starting of industrial units that the State will be benefitted. But what is the real situation? Not me but what the common weekly ‘Ananda Vikatan’ wrote?
“It is said that the expansion of Hyundai car factory function in Tamil Nadu will be set up in Rajasthan and Gujarat. ‘Isuzu’ firm has gone to Andhra. The Rs.1000 crore expansion unit of ‘Saint Gobain’ glass manufacturers functioning in Chennai has gone to Rajasthan. Tamil Nadu-based Ramco Cements has obtained approval of Andhra Pradesh to set up its 2.5 million ton cement factory in Ongole. The Industries Ministry has not focused even on retaining these units. According to statistics industrial investment in Tamil Nadu has come down by about Rs. 50,000 crores. As there are several obstacles in industrial sector, multi-national/domestic companies are hesitant to invest in Tamil Nadu. The Industries Ministry is latent without capacity to even to conduct a meet to attract investors toward TN. Industrialists could not even meet the Industries Minister. As there is no industry-friendly atmosphere in TN with power cut, administrative difficulties and increasing costs, many multi-national companies are focusing to shift their units to other States”, this is the certificate issued by ‘Ananda Vikatan’ to the Industries department of Jayalalitha regime.
‘Faxconn’ industry functioning in TN has entered into an agreement for Rs.32,000 crore to shift to Maharashtra. At least the industries running here were retained? The Tuticorin Spic industry already running in TN and Madras Fertilizers Ltd are on the verge of closure. Tamil Nadu Petro-products Ltd, Tiruchy Distilleries and Tuticorin Alkaline Chemicals Ltd,are already closed. When production in the Nagarjuna Petro Chemical Industrial Complex, Cuddalore started three years back with several thousand crore investment will start is not known. Spinning mills are sickening due to many problems; cracker manufacturing industry is crushing due to indirect encroachment; and handloom and power loom sector is shrinking. The situation obtaining now is like losing what was in store in the thought of the seeking something illusionary.
In the meet prelude to the GIM proposed to be held in May last on 13.2.2015 huge publicity was made that MoUs with 7 firms for Rs.18,000 crore would be signed but is it not a shame that the prelude meet did not take place?
The State’s Industries Minister openly said that the Andhra Pradesh government invited industries offering land at cheaper price and tax concessions. Similarly whenever the AP Chief Minister visited Chennai he invited our industrialists and make offers. This made clear the position of TN. These rulers should feel ashamed if the CMs of other States come here, convene meetings and make direct appeal to industrial investors.
We did not imaginarily say that the Karnataka Chief Minister arranged a meeting at Coimbatore and invited industrial investors. ‘Dinamalar’ is not a DMK daily but it is highly critical of DMK. The heading of a report in that daily on January 22 last was “TN pushing, Karnataka attracting-investment of Rs 12,000 crore lost”.
In the meanwhile there was a report that Panneerselvam held talks with UK Minister for Commerce on companies of England investing in TN and with the Governor of South Carolina State of the USA for more investments in TN. We don’t know what happened to it.
It was announced that the GIM would be held on May 23 and 24 and there were reports that officials went to other countries to conduct road shows. The Industries Minister said that number of foreign investors would participate in the GIM in Chennai and there were chances of getting investment of over Rs. One lakh crore. In a few days after the announcement the government announced further postponement of the meet. A consultation meeting for inviting local industrialists was reportedly held at Salem in which the Industries Minister, Highways Minister and special secretary to Industries department participated and the Ministers said the GIM would be held in May. But even without their knowledge, the meet was postponed and it was announce in Chennai that it would be held in September.
With the heading that nobody need panic on reports that investment of several thousand crore and investors would come to Tamil Nadu through GIM, a e magazine has provided lot of details. The ‘Times of India’ daily says that MoUs for investment of Rs. One lakh crore would be signed. ‘The New Indian Express’ informs that totally the investments would exceed Rs 2.5 lakh crore with over Rs. One lakh crore in power sector alone. When not even one paisa of investment had come through largely exaggerated claims of investments, reports are coming exaggerating agreement on paper. How these MoUs are to be translated into deeds? When will they come into operation? Has any time limit been fixed for it? Do the TN government and the investors who enter into MoUs have the basic means to implement the assurances given by them? Will the industrial policy of the government and government officials approve and cooperate without delay for the execution of industrial projects? It is natural that all these questions arise in the minds of all who read these reports. The most important question is how many of the MoUs signed will truly come into execution! Before searching for the answer for this question, we should know what sort of progress has been achieved in TN in the last four years relating to industrial investments.
In 2011, MoUs for investment of Rs 73,298 crore were signed, of which investment of only Rs.235 crore has reached TN. Everybody should feel ashamed that the investment that came in fact was just 0.3 percent.
In 2012, MoUs for investment of Rs. 21,253 crore were signed but investment of only Rs. 524 crore has come into operation. That is only 2.4 percent came into operation.
In 2013, MoUs for investment of Rs.27,380 crore were signed but only Rs. 2292 crore that is 8.3 percent came into operation.
In 2014, MoUs for investment of Rs. 14,596 crore was signed but investment of only Rs.2,500 crore has reached TN, that is just 17 percent.
In 2015 up to June, MoUs for investment of Rs. 17.412 crore and works for investment of only Rs.41 crore was carried out. It is shameful that only 0.2 percent of investment came into execution.
In ADMK regime, the investments that have come into operation from June 2011 to July 2015 is only 5.64 percent. The reasons for the gap between MoUs entered into and those coming into execution are the basic infrastructure like electricity, water and transport facilities are not to the level of necessary quantity and quality, the industrial policy of the government and power structure not adopting industry friendly approach. Without following any appropriate method to attract industrial investments in the last four years, after meeting very big defeat in attracting investments, what results will happen by making tall claims at the eleventh hour just for 2016 election publicity?
Affectionately,
M.K.
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