A Fresh Shot In The Arm

Policy issues and a lack of attention from the central government are plaguing Tamil Nadu’s growth. However, the second edition of the Global Investors Meet sees promises of investments of over `3 lakh crore.

- Jui Mukherjee

TAMIL NADU IS ONE OF the top three contributing states to India’s gross domestic product (GDP). However, it has been going through a rough patch of late. Demonetisation and the goods and services tax (GST) which choked the manufacturing space, the drought in 201617, and the political instability after then chief minister J. Jayalalithaa’s demise have taken a toll on the state. NITI Aayog data also shows that its gross state domestic product (GSDP) growth at current prices has fallen from 17.73% in 2005-06 to 14.34% in 2014-15.

The government is now stepping up efforts to boost the state’s economy, the most recent initiative being the second edition of the Global Investors Meet (GIM 2019) held in Chennai on January 23 and 24. At GIM 2019, the state government said it signed 304 memoranda of understanding (MoUs) worth more than 3 lakh crore. The investments promised will result in job opportunities for more than one million people, the state government said. At the first edition in 2015, only 98 MoUs worth 2.4 lakh crore were signed.

Leading the list of investors is Chennai Petroleum Corporation, which has promised to invest 27,000 crore to set up a refinery in Nagapattinam. Next is fossil fuel mining company, NLC India, which will pump in 23,800 crore to set up mines and power projects. NLC already operates lignite mines of 28.6 MTPA (million tonnes per annum) capacity in the state, along with thermal power plants of 2,890 MW (megawatt) capacity. In a statement, the company said its investment will result in employment for 1,250 people directly and 7,500 people indirectly.