Tamil Nadu - Coimbatore   

AIADMK has failed to attract investments, says Chidambaram

Special Correspondent

"Jayalalithaa's "disdainful" attitude is keeping investors at bay" "Even big companies have avoided investing in the State"

COIMBATORE: Union Finance Minister P. Chidambaram has charged the All-India Anna Dravida Munnetra Kazhagam Government with having failed to attract new investments, despite the Centre for Monitoring Economy saying more than Rs. three lakh crore of investments are "in the pipeline" and the ICICI Bank chief observing that it can be Rs 4.5 lakh crore.

During the last five years, big Indian companies have been avoiding Tamil Nadu because of, what he called, Chief Minister Jayalalithaa's "disdainful" attitude, he told a press conference here on Tuesday.

"Investment is an act of faith," Mr. Chidambaram said. Unless the State created such confidence among entrepreneurs, new investments would not flow in. Even such big companies as Tatas, Ambanis and Mittal had avoided investing in the State. This was because "they know that they cannot meet the Chief Minister. They don't know who the Industries Minister is, and the Finance Minister has no power." When officials were approached, the reply was: "it could be considered or [we] will get back after taking up with higher authorities."

According to him, there had hardly been any initiative from the Government for getting new green-field projects in the manufacturing sector. Whatever investment had come — such as Nokia and BMW — it was because of the Centre. "For this, Ms. Jayalalitha is claiming credit." For the petrochemical hub, seven places had been identified, and not one was in Tamil Nadu. While other States were developing minor ports through their Maritime Boards for the project, the Tamil Nadu Maritime Board "is fast asleep," he said.

Referring to the economic turnaround reported by the State, he said it was because of the funds allotted by the Centre through a share of Central taxes, non-plan grant and plan assistance. As the tax share and the grants had been growing at the rate of 20 per cent a year, not only Tamil Nadu but also other States had cash balance. The cash balance was Rs. 42,000 crore as on March 31.

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