Loksatta Party welcomes the initiative for Global Investor Meet – However serious concerns needs to be addressed
Thursday, September 10th, 2015 @ 8:00PM
Loksatta Party welcomes the initiative by the Tamil Nadu government to conduct Global Investor Meet to attract investments in the state to boost industrial growth. However the party has concerns whether the government is serious about this meet and whether the government will ensure that the announced investments are implemented.
Though the total amount of MOUs announced as part of this investor meet is an astonishing figure, how much of these announced projects will materialize into actual implemented projects is uncertain. Since 2011, the total value of investments announced is Rs 1,53,939 Crores whereas the actual implementation is only Rs 5,592 Crores. The average implementation percent of investments is only 3.6%. So the government should focus on making market-friendly policies to increase the project implementation rate.
The way in which the investor meet is conducted raises doubts whether the meet is for the self-promotion of the ruling party. The investor meet was delayed due to the conviction and arrest of Chief Minister Ms. J. Jayalalitha and now the advertisements for the meet is projecting only the chief minister’s image and do not appear to be in the interest of the state.
The study released by the Cato Institute has observed that the Economic freedom indicators of Tamil Nadu (to measure ease of doing business) has decreased from 2011 to 2013 rather than improving. No steps are taken by the government to improve the same. The party demands that the government periodically assess the implementation of the projects to ensure that the investors do not face any bureaucratic hurdles. The party demands that time-bound approvals and clearances through institutionalized procedures are given to new business ventures.
The government is repeatedly lying that Tamil Nadu is a power surplus state whereas power demand and supply data show otherwise. The announcements of investments in the Southern districts is a welcome move and will lead to a strong decentralised economy. However in the past several investors showed interest in investing in the Southern districts but have retreated because of lack of infrastructure. The government should focus on infrastructure especially on Electricity.
Also there are allegations of crony capitalism in some huge power projects. This is only because of lack of transparency and a dis-functioning Information Commission. Without transparency, corruption increases, affects honest business and promote crony capitalism. The party demands that government procedures are made transparent and Information commission is made functional.