 "Jayalalithaa")
A year ago, on December 5, when the state government had announced the demise of J Jayalalithaa, the supremo of the ruling All India Anna Dravida Munnetra Kazhagam (AIADMK) and the then Chief Minister of Tamil Nadu, a storm was evolving into a cyclone on its journey to the northern parts of Tamil Nadu. While Cyclone Vardah, which hit land in Chennai on December 12 and wreaked havoc in the region, eventually dissipated, the political storm that engulfed Tamil Nadu at the time continues to hit the state's sustained growth from various corners.
While many had expected that the demise of Jayalalithaa, who never developed a second rank in her party, would immediately trigger a tussle within the party, the immediate transition was somewhat easy, with O Panneerselvam and his Cabinet taking charge of the government in a couple of hours after the announcement of her death.
By the end of December 2016, however, Jayalalithaa's close aide V K Sasikala was appointed AIADMK's general-secretary, a post held by Jayalalithaa for decades. And then began a phase that would see several ups and downs in the state politics.
On February 5, Panneerselvam, touted as Jayalalithaa's trusted lieutenant and a three-time chief minister himself, put in his resignation amid speculation that Sasikala would be taking over the government. On February 7, Panneerselvam, known for obedience to the party leadership, started a protest -- he sat meditating in front of Jayalalithaa's memorial at Marina Beach at night and alleged the Sasikala family had pressured him to resign.
Soon, Panneerselvam demanded that the Sasikala family be ousted from the party and the government. Further, he asked for Veda Nilayam, where Sasikala had lived with Jayalalithaa and had still been residing, be taken over by the government as a memorial for the deceased leader. He also demanded a probe into the circumstances that led to the hospitalisation and demise of Jayalalithaa.
Around a dozen members of Parliament (MPs) and less than 10 members of the Legislative Assembly (MLAs) joined him, while the rest of the MLAs were shipped to a resort near Chennai, allegedly by the Sasikala faction. After a political standstill for several days, Sasikala was sentenced by the Supreme Court to four years in jail, upholding an earlier sentence by a special court in Bengaluru in a 20-year-old disproportionate-asset case.
Sasikala brought in her relatives, who had earlier been expelled by Jayalalithaa, into the party fold. She made her nephew T T V Dhinakaran the AIADMK deputy general secretary and appointed Edappadi K Palaniswami, another experienced leader, as the chief minister of the state. A confidence motion in the Assembly saw Palaniswami receiving majority support.
Subsequently, Dhinakaran decided to contest the R K Nagar by-election, an Assembly constituency that fell vacant after Jayalalithaa's demise. However, the central investigative agencies searched the premises of health minister C Vijaya Baskar and other party leaders before the by-election. With documents alleging massive money distribution plans getting leaked, the Election Commission cancelled the by-election.
Dhinakaran's arrest in relation to a bribery case triggered another polarisation within the party, with the possibility of a merger between the Panneerselvam and Palaniswami factions, without Dhinakaran and his followers in the AIADMK. In August, the merger talks gained momentum and the conditions put forward by Panneerselvam, who was losing ground and relevance in the state's politics, were adhered to by the Palaniswami-led state government. Even after the merger, the Dhinakaran faction had the support of around 21 MLAs but was losing ground with some of them shifting their loyalties to the ruling faction.
The party came under dual-leadership, with Palaniswami leading the government and Panneerselvam leading the party. It was decided that the post of general secretary would be kept vacant as a token of respect to Jayalalithaa, while Sasikala and Dhinakaran would be ousted. Party decisions were left to a council headed by Panneerselvam, who also got the deputy chief minister's post, even as the rift between the factions continued as an undercurrent in the party.
The Opposition and the Sasikala faction alleged that the Palaniswami-Panneerslevam faction had surrendered to the Bharatiya Janata Party-led central government.
The allegations may or may not have been true, but the state government indeed took a u-turn from Jayalalithaa's stand on various issues and the central government's decisions were implemented in the state without much discussion. During her time, Jayalalithaa used to write letters to the prime minister on various topics, sharing her opinion and marking strong protest on policy that she felt are against the interests of the state.
For instance, she opposed the Food Security Act and the Goods and Services Tax (GST), which were expected to take a toll on the state's revenues and powers related to taxation. The National Eligibility cum Entrance Test (NEET) and the Ujwal DISCOM Assurance Yojana (UDAY) Scheme were also opposed. However, since Jayalalithaa's hospitalisation, the state agreed to sign on to the UDAY Scheme, agreed with the Centre on GST's implementation, and accepted the Food Security Act while bearing an additional cost of around Rs 3,000 crore. Panneerselvam and Palaniswami were also allowed to meet the prime minister several times, a privilege denied to the chief ministers of some other states.
When the Dhinakaran faction threatened to pull the party down, the Assembly Speaker expelled around 19 MLAs who were backing Sasikala's nephew. These MLAs had submitted a letter to the Governor stating that they had lost their trust in Chief Minister Palaniswami.
Incidentally, income tax officials, close to the first anniversary of demonetisation, conducted massive raids at 187 locations across the country on premises related to the Sasikala family, their associates, and some of their companies. There also were allegations that the Centre was attempting to interfere in the state's affairs through a crackdown of the Sasikala faction.
Opposition party Dravida Munnetra Kazhagam (DMK), meanwhile, also saw the transfer of reins from the ailing patriarch M Karunanidhi to his son M K Stalin.
Amid all this ruckus, there is a growing perception that the development of Tamil Nadu, a leading investment destination for industries, including the manufacturing sector, has gone for a toss. Controversies have erupted with Kia Motors, part of Korean car maker Hyundai Group, opting to invest in Andhra Pradesh, despite Hyundai already having a plant in Tamil Nadu, and Japanese automaker Nissan deciding to go for international arbitration over the state government not paying committed subsidies.
The state slipped six positions to 18th in terms of business reforms ranking by the Department of Industrial Policy and Promotion (DIPP) and the World Bank in 2016. Further, the State Investment Potential Index by the National Council for Applied Economic Research (NCAER) in July 2017 showed that Tamil Nadu, which was third the previous year, had slipped to number six.
Industry feels that it is not getting the same attention it used to get earlier, when there was a clear party leadership. They also feel that the ministers and administrative officials are less accessible now. The state has also postponed the biannual business event, the Global Investors Meet, to 2018 from the current year.
Attempting to counter such a perception, the government said it had introduced a single-window portal and business facilitation norms for ease of doing business. The state's industries minister M C Sampath recently said tyre manufacturer CEAT was planning to invest around Rs 5,000 crore in Tamil Nadu, while the PSA Group, which manufactures car brand Peugeot, would set up its plant with an investment of Rs 2,000 crore. Also, furniture firm IKEA is planning to set up stores in the state with an investment of Rs 1,200 crore.
