The Hindu Business Line : TN favours a balanced growth of all sectors

The SEZ numbers
In-principle approval given for 19
Formal approval (land with developer): 26
IT and ITES: 20 Product -specific SEZs (non IT): 19 Multi-product SEZs: 6

Top meet: Mr L. K. Tripathy, Tamil Nadu Chief Secretary (second from left), with Mr Shaktikanta Das , Industries Secretary; Mr K. Gnanadesikan, Finance Secretary; and Dr C. Chandramouli, IT Secretary, at a press conference in Chennai on Monday. -Bijoy Ghosh

Chennai , Nov. 27

Special Economic Zones can put Tamil Nadu on the global market in `safe way' if structural imbalances are addressed to support the primary sector, manufacturing sector and information technology, according to the Chief Secretary, Mr L.K. Tripathy.

Addressing a press conference to outline efforts by the State Government to make it a favourable destination for investments, he said that the Government was for balanced growth of the various sectors. Agriculture accounted for about 14 per cent of the Gross State Domestic Produce but 56 per cent of the population was dependent on agriculture.

The services sector including information technology contributed to about 56 per cent of the State's GDP and manufacturing sector 30 per cent.

The Government was looking at options to improve the efficiency and output of agriculture while encouraging the State's strength in traditional manufacturing sectors such as textiles and engineering. Also, people were migrating from agriculture to the unorganised sector.

They need to be absorbed in the organised sector for which manufacturing has to be encouraged, Mr Tripathy said.

Job generation

The Industries Secretary, Mr Shaktikanta Das, said that in the last six months the Government had entered into MoUs with six companies whose cumulative investments would be Rs 2,685 crore.

These companies will generate over 53,000 jobs, including 26,000 direct jobs. These are investments in IT hardware, automobile components and footwear and are in various stages of implementation.

More investors have filed Industrial Entrepreneurship Memorandum (IEM) with the Central Government expressing intention to invest in Tamil Nadu. These represent over 1.61 lakh jobs at a total investment of about Rs 11,500 crore, he said.

Power reforms

The Power Secretary, Mr R. Satapathy, said that Tamil Nadu was well set to meeting the growing demand for power for the next three years. The State was power-surplus with an installed capacity of 12,137 MW. The highest demand during the year had been 8,544 MW with a peak summer consumption of about 173 million units on one day.

By the end of the 11th Plan, a 3,000-MW deficit is anticipated and plans are on to meet that demand. Over 5,000 MW of power would be added with an additional 5,000 MW from the Central sector and private sector power projects. "Power management is on the right track," he said.

On power sector reforms, the Finance Secretary, Mr K. Gnanadesikan, said that the State Government was not for unbundling of the electricity board for the sake of unbundling. The Tamil Nadu Electricity Board was a better performing SEB than those that have unbundled.

The Government will table details of the State's finances in the Assembly in the first week of December. While declining to elaborate on the fiscal status, "in short it is good," he said.

IT boost

The IT Secretary, Dr C. Chandramouli, said that Tamil Nadu's share in the country's information and communication technology was around 14 per cent and the goal was to reach 25 per cent in five years. Over 150 no-objection-certificates had been issued for IT parks together representing over 49 million sq ft of space. Of this over 6.5 million sq ft would be ready by the year-end, he said.

Mr Tripathy said that a second Tidel Park, a built-up space for IT companies, was planned in Chennai along the lines of the first one, a "pace setter" which had a built up space of 1.28 million sq ft and employed over 12,000. In January work on one more Tidel Park will start in Coimbatore. More are planned in Madurai and Tiruchi.

Agriculture growth

Development of export zones was not just restricted to IT or manufacturing sector but also to agriculture.

Mr Ramasundaram, Chairman and Managing Director, Tamil Nadu Industrial Development Corporation (TIDCO), said that one of the earlier agri export zones, Tanflora, `had turned the corner.' Over 25 investors had taken up 50 ha land in the facility in Hosur and it was fully allocated. It would be debt-free by January 2007 and it was looking at expanding.

AEZs had a long gestation period of over 6-8 years. But they were coming up. More such AEZs and agri-marketing hubs are planned in Erode for turmeric, Nanguneri for herbs, Madurai for flower.

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