The Tamil Nadu Global Investors Meet—the biggest-ever investor promotion campaign the state has undertaken—was supposed to be held for two days, starting May 23. There were a flurry of press releases claiming that there will be at least eight partner nations taking part. Japan and France had already committed themselves as partner countries and the UK had also sent its official confirmation. The state was awaiting confirmation from five more countries. Over 5,000 national and international delegates were expected to participate in the event and products and services of over 250 exhibitors and partner nations were to be displayed. The government’s budget was R100 crore for the meet and it expected to attract R1 lakh crore in investments in just two days. There were many who did not buy all this hype.
The sceptics proved right. When the buzz around the Global Investors Meet was just building up, there came the announcement that it has been postponed to September 9.
Former chief minister J Jayalalithaa had come up with the Vision Tamil Nadu 2023 document as soon as she took over as chief minister four years ago. The Global Investors Meet is part of that document. According to an official release, investment worth R53,000 crore in sectors other than energy and R23,000 crore in the energy sector—totalling R76,000 crore—had been lined up for signing of MoUs for the meet originally scheduled for May 23-24. However, many foreign investors have represented that they would be in a position to commit much larger investment with some more time being made available to finalise such investment proposals. Further, a strong feedback has been received from many foreign investors that the event may be held after the summer season.
Nobody is quite buying this explanation. MK Stalin, the DMK treasurer, tore into the government’s explanation for postponing the meet, reflecting what many in the industry feel. Stalin asked the chief minister, O Panneerselvam, why he postponed it despite spending taxpayer money and creating hype. “If this government is worth its salt, it should present a white paper disclosing who has promised investment worth R76,000 crore and how it has spent R100 crore, earmarked for the meet,” he demanded.
The Global Investors Meet, which was announced last October, was postponed after Jayalalithaa’s conviction in September. The charismatic leader, who would have been the Global Investors Meet’s USP, is out of action. Jayalalithaa is known to be dynamic and decisive, and has been very good at dealing with foreign investors. She went all out to get Ford to invest in Tamil Nadu during her first stint as the CM (1991-96), which transformed the industrial scene in the state. Can one imagine a Vibrant Gujarat event without Narendra Modi?
There is consensus that the meet can be a success only with its star performer. Ever since Jayalalithaa was convicted in the disproportionate assets case in September last year, there has been leadership vacuum in the state, leading to total paralysis in governance. The ruling AIADMK has always been a one-woman party. Jayalalithaa had total control over both politics and administration. There has never been a number two. She has withdrawn from public appearance after getting bail, and restricts herself to making an occasional statement. Everybody is clueless about who takes decisions. Her successor, Panneerselvam, has kept such a low profile that he has actually shied away from even using the chief minister’s chair and room. It is well known that all the ministers have been spending time on performing poojas and havans, praying for Jayalalithaa’s return rather than on administration.
The first stretch of the R14,000-crore Chennai Metro Rail project is yet to be inaugurated. The opening of the service had been put on hold after the mandatory safety audit was deferred to for unexplained reasons. The faithful would rather wait till Jayalalithaa is in a position to launch the service. There are many flyovers, highways, buildings, power projects waiting to be declared open by her. The Budget presented by Panneerselvam in March focused more on freebies than on any major productive investment. The Budget debate on demand for various departments is yet to take place.
The Global Investors Meet may not have been a flop-show even if Jayalalithaa had been absent. Over 3,000 companies from across the world are present in Tamil Nadu. The state’s average growth rate, at 7.29%, is much higher than the 4.74% national average. Tamil Nadu has seen R52,000 crore investment in the last five years and has been, for several years, top on list of the most-preferred investment destinations in India. There may not have been big-bang announcements in the last few years. But existing manufacturers such as Yamaha, MRF and Enfield have been making incremental investments and announcing expansion plans.
However, much time has been wasted in waiting for Jayalalithaa’s return. The state government tried to organise a major international event in May, waking up only in April. Though neither officials nor industry is willing to go on record, apparently there has not been the kind of response anticipated. Not many foreign delegations have registered. The ruling party is not willing to prepare publicity material without Jayalalithaa’s name and photograph.
However, Tamil Nadu cannot afford to rest on its laurels. Gujarat is positioning itself as the next automobile hub. In the neighbouring Andhra Pradesh, chief minister N Chandrababu Naidu is constantly trying to lure investors to his state and offering them all kinds of incentives. Tamil Nadu is cooling its heels by waiting for the verdict by Karnataka High Court and hoping Jayalalithaa’s conviction will be put aside. Can the state afford to do that?
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sushila.ravindranath@expressindia.com
