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Jayalalithaa strives to ensure double digit industrial growth rate in coming years

Jayalalithaa strives to ensure double digit industrial growth rate in coming years
Seeking to give further fillip to industrial growth by attracting greater investments, J Jayalalithaa-led Tamil Nadu government on Friday unveiled a new industrial plan, an exclusive policy for automobile sector and the phase-II Vision 2023 document. The state chief minister rolling out the new policy initiatives at a function here, also witnessed signing of 16 MoUs between MNCs and the state agreeing to a total investment of Rs 5,081 crore.

This is the second major initiative unfolded by the state government after AIADMK returned to power. The government had released the Vision 2023 document in March 2012, setting a target of attracting investments to the tune of Rs 15 lakh crore.

Jayalalithaa also announced Automobile and Auto-components Policy, the Biotechnology Policy and  launched a new website for the Tamil Nadu Infrastructure Development Board.

She said her government would strive to ensure double digit industrial growth rate in the coming years, from the existing 6.13 per cent and added that the experts’ concerns in the first volume of Vision 2023 document have been addressed in the Phase-II document.

She said 17 MoUs were signed between the state government and MNCs for investments worth Rs 26,000 crore soon after releasing the Vision 2023 document.

With the signing of 16 MoUs to bring in investments of Rs 5,081 crore, the total number of MoUs signed rose to 33, envisaging overall investments of Rs 31,706 crore with capacity to generate 1.60 lakh jobs.

In her speech, during the releases of Tamil Nadu Vision 2023 Phase II at Hotel ITC Grand Chola, Chennai on Friday, Tamil Nadu chief minister Jayalalithaa said, ‘Ever since my government assumed office for the third time in 2011, I have been tirelessly working towards the completion of the tasks I had enumerated when I laid out the  grand Vision 2023 for the state of Tamil Nadu and its people. In that document, I had set a target of 14 per cent growth in the manufacturing sector every year and an overall investment of Rs 15 lakh crore in all the sectors of the state economy by the year 2023.’

She further said, ‘To achieve the goals relating to manufacturing two sets of MoUs numbering 17 in all were signed in my presence in 2012 committing an investment of 26,625 crore rupees. Today 16 more MoUs are being signed for industries with a total investment of Rs 5,081 crore offering employment to 16,282 persons. With this, the total investment envisaged in the 33 MoUs signed so far by my government in its present tenure is Rs 31,706 crore with an employment potential for over 1,62,667 persons. I have often said that investment is an act of faith based on rational expectations. It is a vote of confidence.’

‘I congratulate the investors who have reposed their confidence in Tamil Nadu and I am sure that they would continue to do so,’ Jayalalithaa added.

The chief minister further added, ‘The greatest challenge before my government is to steer economic growth through the highly volatile and uncertain global economic scenario prevailing now and the period of domestic slowdown. Even the developed nations are now only slowly coming out of the severe economic crisis while China’s Foreign Direct Investment led boom appears to be cooling rapidly.’

‘Yet as a longer term trend the weight of global economic power is shifting inexorably towards Asia particularly India and China. It is my firm conviction that within India Tamil Nadu would emerge as the epicentre of such power. I have a vision for India in which Tamil Nadu will play a key role – a vision of a resurgent India; a nation with an inclusive society and open markets; a nation of enterprise and creativity driven by knowledge and shaped by family values; a nation of growth with equity; a nation with peace stability and development; a modern secular and prosperous India,’ Jayalalithaa said.

‘I want to assure you all that this day is not far. It was with this exalted objective in mind that I had released the Tamil Nadu Vision 2023 document. I am fully committed to converting this vision into reality. In keeping with this commitment, today I have released the Second Phase of the Vision 2023 document containing reports on the sector strategy approach and profiles of infrastructure projects proposed for implementation in the selected sectors,’ she said.

The document includes profiles of 217 infrastructure projects in six major sectors – energy; transport; industrial and commercial infrastructure; urban infrastructure and services; agriculture; and human development. Some of the suggestions received when the Phase-I of the Tamil Nadu Vision 2023 document was released have been addressed in the Phase-II document. Accordingly the investment  envisaged  in  the  agriculture  sector  is  being substantially stepped up from Rs 40,000 crore to Rs 1,21,400 crore. The projected investment in the human development sector has also been increased from Rs 30,000 crore to Rs 59,140 crore. The investment levels in the other critical sectors have been maintained at the levels indicated earlier within the overall projected investment of Rs 15 lakh crore to ensure the attainment of the outcomes expected from the Tamil Nadu Vision 2023,’ she stated.

‘Tamil Nadu had achieved growth rates of 11.45 per cent in 2004-05 and 13.96 per cent in 2005-06. The growth then fell to 6.13 per cent in 2007-08 and 5.45 per cent in 2008-09. Growth in Tamil Nadu has rebounded in 2013-14 and is expected to be  6.13 per cent as against 4.14 per cent in 2012-13. The trend has generally been that Tamil Nadu’s growth in the upswing period exceeds the all-India growth rates. I have every confidence that I can return Tamil Nadu to double digit growth,’ Jaya said.

‘I strongly believe that structural transformation is critical to place Tamil Nadu on a higher growth trajectory. The core of this transformation lies in increasing the share of manufacturing. The share of the manufacturing sub-sector in GSDP is less than  17 per cent now and the Vision 2023, intends to raise it to at least  22 per cent by 2022-23. I believe that while we continue to focus on agriculture and accelerate its growth we must also focus on creating far more jobs in manufacturing,’ she said in her speech.

‘When my government assumed office in 2011 the state power utilities were already reeling under a huge debt burden of over Rs 40,000 crore – a bitter bequest that the previous government left for us. In the past two years the state government has allocated substantial resources to revive the state Discom to establish more power projects and to increase efficiency in transmission and distribution. Ongoing projects have been fast tracked and generation capacity of more than 2500 MW added to the grid. Procurement action has commenced, for projects with a total capacity of 3300 MW,’ Jaya added.

‘More capacity addition is also planned. Long and medium term power purchases have also been tied up.  The state is a leader in non-conventional energy generation and ranks first in the country in terms of wind energy. To evacuate power from wind mills 400 kilovolt Green Energy Corridors are being set up. My government also has a comprehensive Solar Power Policy with many new initiatives,’ she said.

‘The state is also availing of financial assistance from the Japanese International Co-operation Agency (JICA) to upgrade the transmission network in the state. Together all these efforts will go a long way in mitigating the demand-supply gap in the power sector.  I am proud to inform you that with all the efforts my government has taken the state which was severely hit by power cuts in 2011 will soon overcome the constraints on the availability of power’, the TN chief minister said.
‘I am detailing the above only to demonstrate that my government is not a government that merely talks and puts out lofty ideals and policies; it actually gets down to taking hard decisions and staying the course,’ Jaya added.

‘I recall the positive impact created by the industrial policies released by my government during 1992 and 2003. The 1992 industrial policy paved the way for Chennai to become one of the world’s largest auto clusters and the 2003 industrial policy triggered the electronics industry revolution in Tamil Nadu. Today, the state has become India’s largest exporter of electronic hardware,’ she added.

At this function, the CM also launched the official website of Tamil Nadu Infrastructure Development Board –
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