Chennai: It might be cliched to say that the clock is ticking but ticking it is when it comes to the Global Investors’ Meet (GIM) that is set to happen in three days time, here.
The Tamilnadu government has been mulling to bring in new investments and also overcome the number of MoUs signed last time around that promised the State that upto Rs 2.42 lakh crore proposals will be converted into investments.
With the realisation rate hovering around 30 per cent, News Today spoke to chairman, CII Tamilnadu, M Ponnuswami, about the realisation rate, market status, Tamilnadu as a place for investors, among others.
Q) With claims not met last time with respect to investments, how different will GIM 2019 be?
A) Since the last GIM, Rs 64,000 crore has been realised and some work is in progress. Thosde which were not completed will be done in one or two years. There have been other investments other than those promised at GIM that came to the State. The conversion rate since last GIM has been 30 per cent, which is very much respectable. It exceeded expectations.
Q) Will more investments find their way in this time?
A) Yes. There definitely will be a higher number, both in terms of investors and investments than last time. Also, industries from different fields are showing interest. Last time the power sector dominated the meet, while this time sectors like tourism, auto, textile, etc are showing more interest. We think, we will reach a higher number than last time. GIM will be highly successful.
Q) A word on operations of single window portal in the State.
A) The single window portal has been highly transparent and approvals to the rate of Rs 11,500 crore have been given. Till now. Two hundred and fifty two MSME proposals out of 350 have been approved.
Q) How welcoming do you think Tamilnadu is for new investments today?
A) The situation has changed. The government, officials and bureaucrats in Tamilnadu are all approachable at present. So, for investors, approaching people at the helm of affairs is easy. However, the biggest change is in the way that the departments in the State are working. They are looking to solve problems that are plaguing the industries already present rather than focus only on new investors.
Q) What is TN’s trump card in GIM and what policies are expected to be announced?
A) Tamilnadu has good skilled manpower. The fact that the State has 45 per cent national share in exports in the auto industry alone is testimony to the fact. Key policies on electric vehicles may be dicussed. But I think policies on defence and aerospace might very well be announced by the State government.
Q) Which industry do you think will make the most investments this time?
A) Textile industries will have more presence this time around, with casting, auto component makers, food processing units, all are to come. IT investments will also be more.
Q) Will the State’s dream to become No.1 in the country come closer with GIM 2019?
A) Absolutely. The time frame will very well shorten as the State is looking to play to its strengths and also bring in new sectors.
| MSME focus |
| It must be noted that the GIM this year is expected to focus more on micro, small and medium enterprises (MSMEs). Chief Minister of State Edappadi K Palaniswami had said the State government’s single window portal for MSMEs was ensuring time-bound processing of applications and issue of clearances by various departments. Approvals of MSME proposals would lead to generation of jobs for more than 15,000 people, he said.
Further, to improve the global competitiveness of MSMEs in the State and attract foreign investments into the sector, the State government is in the process of creating a separate entity. |
| In numbers |
| According to reports, despite the government claiming a high investment rate the last time the GIM was held in 2015, the actual investments were only up to Rs 64,000 crore till date.
Data from the Commerce Ministry showed that less than half of the promised investments actually made their way to the State over the past three years. Of the Rs 19,408 crore worth investment proposals received by Tamilnadu during 2016-17, 2017-18 and 2018-19 (till November 2018), only Rs 8,384 crore has been realised. Last year, Tamilnadu received proposals worth Rs 10,105 crore, but till the above mentioned period, only Rs 2,107 crore – roughly 20 per cent – has been pumped into the State. |