The Hindu Business Line : Resolve issues plaguing power sector: US cos

AMCHAM is committed to increasing American foreign direct investment in Tamil Nadu and help the State capitalise on its competitive advantages in sectors such as IT and manufacturing.

Chennai , Jan. 27

THE American Chamber of Commerce in India (AMCHAM), which represents about 400 US companies doing business in India, has urged the Tamil Nadu Government to resolve what it called legacy issues - issues that had been pending for a long time - in the power sector and create a conducive regulatory structure.

Both these measures will renew interest of foreign investors in the power sector, according to the Chamber's Chairman, Mr Sunil Mehta.

He made these remarks at a meeting an AMCHAM delegation had with the Tamil Nadu Chief Minister, Ms J. Jayalalithaa, here today.

(It may be mentioned that a handful of American power companies have equity stakes in private power projects in Tamil Nadu and all these projects face payment problems with the Tamil Nadu Electricity Board.)

In his speech at the meeting, copies of which were released to the media, Mr Mehta reiterated the chamber's commitment to increasing American foreign direct investment in Tamil Nadu and help the State capitalise on its competitive advantages in sectors such as information technology and manufacturing.

"Competitive incentive packages in IT, biotech, large manufacturing projects as well as other services will attract FDI from US corporations in Tamil Nadu," he told the Chief Minister.

Later, at a press conference, Mr Mehta said the AMCHAM emphasised the State's core competencies and how the State could tap its rich resources like lignite, and its geographical location to give a further push to the manufacturing sector. Several of Fortune 100 companies were either in the State or had offices here.

However, the chamber felt that it was time to look at small and medium enterprises in the US, which would synchronise well with the needs of the State.

This was especially so in the auto ancillary sector and the chamber would interact with other bodies representing American business interests to highlight Tamil Nadu's advantages. The chamber had started identifying SMEs that were present in other Asian countries and to emphasise the benefits of being present in Tamil Nadu, he said.

The meeting with the Chief Minister, Mr Mehta said, helped the chamber understand the Government's priorities.

He felt that the Government was keen on attracting investment in power generation, water desalination, infrastructure improvement and improving the quality of technical education.

In his address at the meeting with Ms Jayalalithaa, Mr Mehta said the chamber could act as a platform and support the initiatives of the Government to attract incremental FDI from not only the Fortune 1000 companies but also target the large pool of small and medium enterprises in the US, which did not have presence in India.

He said that for attracting FDI, developing physical infrastructure in Tamil Nadu would not only be critical to growth but also for competing with other States.

There is also a need for finding a creative solution to the water shortages.

AMCHAM welcomed the opportunity to collaborate and help take forward these goals of the Government.

The need for long term capital and newer technology to progress on these fronts could be addressed by public-private partnerships, he told the Chief Minister.

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