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Tamil Nadu walks tall

Shobha Warrier in Madras

Life in Tamil Nadu, especially in Madras, rechristened Chennai, is no longer the same. The transformation is astounding: a city, which was once described as conservative, conventional, and traditional, has changed into progressive, flexible, and less rigid in its outlook. Puritans may scoff at the changes, but most welcome it, considering a step forward. The image of traditionally conservative Madras is changing fast.

The city has accepted jeans and shirts in place of silk pavadai and davani. Of course, restaurants which serve dosai and idli top the charts, but Tamilians have become adventurous enough to order pizzas during the weekends. They still holiday at the VGP Golden Beach carrying sambar sadham, thayir sadham, and lemon rice in stainless steel tiffin boxes, but there are several others who freak out at the Fisherman's Cove.

Break dance has invaded the traditional arena hitherto occupied by the ancient classical performing arts like Bharata Natyam, Kuchupudi and Mohini Attam. While classical dance halls remain nearly empty during the music season, youngsters overflow from venues where pop concerts are held. Parents are aghast when their children return late from discotheques. All these are a reflection of the changes that have taken place in Tamil Nadu due to the massive industrialisation and modernisation that have taken place in recent times, and which have placed this southern state among the top in industrialisation. A recent survey by Business Today ranked Tamil Nadu third among the best states to invest in.

"Tamil Nadu has been quietly industrialising but it took some time for the others to see the changes. It took some time for the others to understand us. The beginning was Mahindra Ford. When Ford, Hyundai, and Du Pont decided to invest in our state, others might have thought that since these giants are going in, the conditions might be better and suitable for us," says R Gopalan, chairman and managing director, Tamil Nadu Industrial Development Corporation.

"Getting the first one was difficult but it is as difficult to get the others too. They had to be convinced that our infrastructure is good, the business atmosphere is good, and we are business-friendly. It is not that when you get the first one, the others also will follow automatically. It is a continuous process," he added.

Take the case of the Ford Motor Company, the world's largest producer of trucks, the second largest automotive manufacturer, and the seventh largest company with over 3,347,000 employees. Ford and Mahindra & Mahindra set up a joint venture -- Mahindra Ford -- to manufacture the Ford Escort. In the first phase, the Escort plant was set up at Nashik, Maharashtra. But when the company decided to set up a second plant, they chose Tamil Nadu.

B S Rathore, vice-president, external relations, Mahindra Ford, explains the rationale. "We had decided much earlier that India is a good place for long-term investments. The final option was between Pune in Maharashtra and Madras in Tamil Nadu. Since we already had a plant in Nashik, the Maharashtra government thought we would put up our second plant in the same state. So there not much effort by the government. But Tamil Nadu came up with a very good, cost-effective package including sales tax and excise tax concessions. Naturally we opted for Madras."

Mahindra Ford found the infrastructure in Madras better than Pune as it was the state capital. The site at Maraimalai Nagar in Chengalpet district, strategically located on National Highway 45, is only 35 kilometres from Madras. It has good rail and road connections, and is only half an hour away from the international airport.

Infrastructure:

The relative infrastructure development index of Tamil Nadu is 144, and it is ranked third in the country below Gujarat and Maharashtra.

"Infrastructure in Tamil Nadu is better compared to many other states in India. I am not comparing it with Japan, USA or Germany. It can be far, far better. Telephone lines are still difficult, roads can be improved. But we have highly connected railways. We also have direct flights to European countries," says T R Gopalan, regional director of the Indo-German Chamber of Commerce.

Rathore of Mahindra Ford endorses the sentiment. "Infrastructure is better compared to many other states but not quite good if you were to compare with world standards," he said. "Here the telecom service is good, while the power situation is better but not the best in comparison to some other states."

Power

The power situation in the state appears to be on the verge of a crisis. Tamil Nadu, which till recently boasted an excellent and uninterrupted power supply situation, suffers from frequent power cuts these days, certainly a cause for worry. At present, it has an installed capacity of 6,908 megawatts, but demand for power is growing at the rate of around 500 mw per annum. (Even as I wrote this piece, the electricity went off five times, not to mention constant voltage fluctuations!).

According to TIDCO, in 1996-97, the energy shortfall was 47.6 billion kw, 11.5 per cent of total demand. Shortage at peak hours is 18 per cent of total demand! The Tamil Nadu Electricity Board has proposed adding another 12,650 mw through private power projects.

Another area Tamil Nadu can exploit to produce more power is non-conventional energy resources. The potential of the country to generate wind power is 20,000 mw, and that of the state is 6,000 mw, the best in the country. At present, India produces only 950 mw of wind power now, of which Tamil Nadu contributes 600 mw. "If the state government changes its policy to allow wind power producers to sell directly to buyers rather than to to TNEB, private sector participation will be better," claims Rajkumar Khemka, vice-chairman of NEPC, a company actively involved in wind power generation.

Tamil Nadu walks tall, continued