The Tamil Nadu government, with a new Chief Minister at the helm, will have to speedily deliver on its promises in implementing infrastructure projects and expedite decision making to restore investor confidence, according to a chief executive of a multinational agency, who did not want to be named.
He said Tamil Nadu has gained a reputation for slow decision-making. With Jayalalithaa so far seen as the only decision-making authority in the government, the natural concern is whether the new head will have any authority and will the process slow down further.
The new government will have to prove its effectiveness by expediting pending projects.
Another executive, while declining to comment on this ‘very politically sensitive issue’, said the next few days could be crucial in the government sending out a clear message.
Reacting to the conviction and imprisonment of the former chief minister J Jayalalithaa on corruption charges, leading industry representatives and heads of financial institutions, speaking on the condition of anonymity, expressed concern overthe effectiveness of administration and decision making.
It is only a few days back that the State Government announced plans to implement large industrial corridor projects, including the Madurai–Tuticorin road project as part of the East Coast corridor project, expedite the Chennai–Bangalore Industrial Corridor Project, port connectivity projects such as the Ennore Port road projects, monorail project and the second phase of the Chennai Metro Rail project are pending.
Industry is also expecting a decision on the LNG pipeline projects which are stalled.
Open communicationA head of a multinational manufacturing company said the bureaucrats and politicians should develop a working relationship to enable decision-making and open communication with industry will help retain investors’ confidence.
Political stability is not a concern given the AIADMK’s strong majority in the legislature but how about governance and efficiency, he asked.
While the mood in the industry is improving, there are major concerns particularly regarding the power situation apart from road and port connectivity. The manufacturing sector is facing an acute power shortage.
“The strong bureaucracy in Tamil Nadu and a collective leadership within the AIADMK should work together for sustaining industrial growth,” said a senior executive in a large multinational company.
It is not just the internal challenges but neighbouring states too are aggressively wooing investors.
Tamil Nadu should really get its act together fast if it does not want to lose out, said an industry representative.
Industry bodies declined to comment. But they will ‘wait and watch’ till some clarity emerges, said an office bearer.