(Q) Over the years, what have been the key reasons for industrial development?
(A) I would say that the birth of MSME development started here. Any policy originating from us is heard by both the central and the state governments. Especially in Tamil Nadu, we achieved double-digit economic growth because successful bureaucrats in various departments heeded to our requests and suggestions, implementing them for the development of both MSMEs and bigger industries in our state. That is a major advantage.
When the estate was formed, it was all lease and hire purchase schemes. During the early 90s, when the companies started growing, they needed to borrow. Borrowing was possible only by mortgaging a property which had a sale agreement. So, when we approached the government and told the department heads that this was a genuine request of all the entrepreneurs, they agreed. The proposal was given to the government, and a sale deed was issued to unit holders. Until then, it was all hire-purchase and lease agreements. So, this paved the way for the growth of all these unit holders in Guindy and all other industrial units. The property could be leveraged to seek finance.
Patta was a bigger issue as it was not issued for about 50-60 years. Since 2008, a special empowered committee has been formed. Again, it was headed by the Chief Secretary, Secretaries of Finance and MSME departments and the issue was sorted out. A government order was issued, which paved the way for issuing patta for 3600 acre of industrial estate land. The credit guarantee scheme was again formulated by our bureaucrats. Last time during the flood, we approached them for a short-term loan. Immediately it was approved and around Rs 3 lakh loan was given to all unit holders, at a very low interest rate. It was really helpful especially for the micro-level units in the surrounding areas of Guindy. Irrespective of the government in power policies are continued and our bureaucracy is both efficient and approachable.
(Q) The unique aspect about Tamil Nadu is distributed growth. Your views?
(A) Generally, Tamil Nadu is strong in engineering with a cluster-based development well – spread across. Coimbatore focuses on heavy engineering. There are many fabrication units in Tiruchi due to BHEL. In Chennai, there are many auto-related industries. This distributed growth has occurred naturally. Now, the government is identifying underdeveloped districts and trying to attract investments in those regions. Once a large investment arrives, the entire ecosystem develops.
(Q) How have welfare schemes and social development in Tamil Nadu helped industries?
(A) The freebie culture, in fact, has helped increase awareness. Our people are more aware than those in any other state. Internet penetration is high, increasing inclusivity. Women are more aware and they understand the necessity and benefit of financial independence. The stigma associated with them towards working has gone.
(Q) Can you highlight things that the state has done well and things it could do better?
(A) The state is now establishing a shipbuilding cluster in Thoothukudi as the area has a natural port with abundance of land for development. Additionally, a new spaceport is planned in Kulasekarapattinam and the aerospace park which is coming up at about 2000 acre will further develop the region. Once a major industry arrives, all the other MSMEs will follow.
Things that could be done better from an MSME perspective are, the state needs to work more in tandem with the central government to bring in more investment. Another focus area for our state is the Government e-Marketplace (GeM) online platform, through which procurement for public enterprises happens. General awareness around it must be built. The defense corridor has not taken off in a big way. The centre and state government have to work together to develop the corridor.
(Q) What are the issues the new government should address?
(A) The fixed cost levied on electricity is killing us. Another issue is high property taxes. Panchayats have been empowered to fix tax for property within prescribed slabs and this needs to be fixed.n