TN will promote services, mfg sectors: Karunanidhi

Tamil Nadu chief minister M Karunanidhi has said that the state government was transparent in decision-making and honouring its commitments made to investors.

Addressing a conference organised by The Federation of Indian Chambers of Commerce and Industry (FICCI), he said investment proposals were pouring into Tamil Nadu every day and investors' confidence in the state was very high. An industrial task force had been set up under his chairmanship to sustain the flow of investments into the state, he added.

"The state government is investor-friendly and transparent in decision-making. Moreover, the state has been quick in responding to investment proposals. Most importantly, we honour commitments made to investors," he said.

He also stressed that the state government would promote both manufacturing and services sectors as these sectors were creating a significant number of opportunities. "The government of Tamil Nadu wants a healthy growth of both manufacturing and service sectors," he added.

Five MoUs that the state signed in the last five months with Motorola, Apollo Tyres, Tessolve, Dell and Feng Tai of Taiwan, have brought investments of Rs 2,300 crore and would create direct and indirect employments for about 50,000 people.

Earlier in a presentation on 'Tamil Nadu Vision 2011,' Saroj K Poddar, president, Ficci, suggested a three-pronged strategy -- speed in decision making, administrative reforms and creating a brand image -- to make Tamil Nadu a leader in economic and social spheres, besides making the state the most favoured investment destination. He said that Ficci's document sought to help the state achieve leadership in human development, boost growth in agriculture, industry and services and attain fiscal targets.

Pointing out that Tamil Nadu had always been at the forefront of the reforms process with its advantageous strategic location, sound infrastructure with good port and airport connectivity and with a good number of educational institutions, Poddar said that it was high time that the state started benchmarking with the leading economies of south East Asia.

A 10 per cent GSDP (gross state domestic product) growth should be targeted over the next five years and it would help reduce the unemployment rate and poverty, he added.

In the presentation, he called for quick clearances in allotment of land and space, allocation of power, water effluent treatment facilities and clearances under one roof.

Poddar also suggested that the state government should target 15 per cent real growth of industrial GSDP, 4 per cent of agricultural GSDP and 10 per cent of services by 2011.

In order to tone up the finances, Ficci has underlined the need to bring down fiscal deficit to 3 per cent of GSDP by 2008-09, reduce revenue deficit to zero per cent and implementation of VAT on revenue-neutral basis, among others.