Tamil Nadu’s economy has not been in the pink of health. The emphasis on welfare, through populist schemes, has not been backed by the massive increases in revenue. In recent years, there have not been big-ticket investments necessary for accelerating industrial and employment growth. Continuing large deficits, both revenue and fiscal, have also been denying investments for infrastructure development.
The dissensions and instability of the ruling AIADMK, post the death of supremo J Jayalalithaa. Ambitious politicians of different hues each aspiring to become chief minister, point to the vacuum at the top. This is unlike the past when decisive leadership was a strong point for the stability of the administration with leaders – C N Annadurai, M Karunanidhi, M G Ramachandran and J Jayalalithaa – commanding unquestioned authority among the cadres.
These factors have resulted in Tamil Nadu emerging the agitation state of India accounting for the largest number of agitations. The intensity and the frequency have increased manifold through 2017-18. The recent 100-day long agitation in Thoothukudi demanding the closure of the Sterlite copper plant, climaxed to a violent protest marked by arson and death of 13.
Sadly, the action of the government appears a knee-jerk reaction. One day it was permanent closure of the plant and the following day it was cancellation of land allotted for the unit for its expansion.
The first significant investment post 1991
In 1991, Sterlite marked the first significant investment in the state post-liberalisation of the economy in 1991. This was followed by prestigious big-ticket investments in Tamil Nadu by multinationals like Thapar DuPont, Ford Motors and Hyundai Motors in quick succession. With numerous ancillaries spawned by these, especially in the automobile sector, the state emerged a formidable leader in manufacturing, next only to Maharashtra. For 15 years the state recorded high rates of growth reaching full levels of employment. In fact, the state provided large-scale employment in construction, hotels, manufacturing, and marine food processing industries for workers from the east and north-eastern states. Incidentally, at the large textile unit in Coimbatore, Kannabiran Mills, the entire women employment, numbering around 1400, comprised of workers from outside the state!
Centre and state governments have cleared the project
Successive governments both AIADMK and DMK at the state level and NDA and UPA, at the Centre, have cleared the various stages in the growth of Sterlite Industries owned by the multinational Vedanta Resources Plc. The unit accounts for 400,000 tonnes out of a total installed capacity of copper in the country of 990,000 tonnes. Apart from meeting the requirements of copper used widely by the electrical, appliances and automobile industries, the company has also been a significant exporter of copper refined from imported concentrates.
The primary issue involved relates to pollution. The solution lies in tackling the problem by ensuring zero discharge of pollutants and not closing down production which is like throwing the baby with the bath water.
