GIM presents Big Opportunity to Tamil Nadu
Port Wings News Network:
As part of the agenda setting, Port Wings has brought out series of articles on the major issues pertaining to the EXIM sector every week before the Tamil Nadu Government’s Global Investors Meet (GIM) to be held on Sept 9 & 10 at Chennai Trade Centre.
For the last 13 weeks, we gave a sneak preview of various segments that could attract investments during the meet.
ELEVATED CHENNAI PORT –MADURAVOYAL EXPRESSWAY PROJECT:
With a view to alleviate the perennial congestion of heavy vehicles on Chennai’s arterial roads, Chennai Port and the Tamil Nadu state government have planned for a better road connectivity to ensure seamless movement of cargo towards Chennai Port round-the-clock without disturbing common road users.
Since the project is now caught in the legal web and its effect is being largely felt on the EXIM trade, the Shipping Ministry even suggested for an “Out of Court” settlement with the Tamil Nadu Government.
According to experts, if the project gets a green signal from the Tamil Nadu government, it would help those EXIM players, who left the Chennai Port in the past due to lack of road connectivity, to rethink on coming back to Chennai Port again.
NEED FOR COORDINATION COMMITTEE:
Tamil Nadu State, unlike the other maritime states in the country, is bestowed with three major ports – Kamarajar (Ennore), Chennai and V O Chidambaranar (Tuticorin), which are maintained by the Government of India through the Ministry of Shipping. Besides, the state is also home to the fast growing Kattupalli Port.
While these major ports are governed by the Union Government, the impact of such lack of coordination directly impacts the economy of Tamil Nadu. The lack of coordination affects movement of goods through Chennai Port and in turn, it projects the eastern gateway port as inefficient port to meet the growing demand from the trade in the region.
REJUVENATING TAMIL NADU MARITIME BOARD:
With the Tamil Nadu Maritime Board’s (TMB) policies for developing more ports in the state to become a true “Maritime gateway state of East Coast” shrouded in mystery, experts in Exim sector here feel that the Chief Minister J Jayalalithaa should revamp the entire board to meet the expectation of the trade and investing community.
A few of them have even said that the Tamil Nadu Government could get more on the potential of maritime board from the Gujarat Maritime Board (GMB), which has earned laurels from various quarters for playing pivotal role in bringing in sustained revenue for the state as well to the country’s exchequer.
ROLE OF STATE GOVERNMENT IN PROMOTING TUTICORIN:
Even though the Tamil Nadu Government has a policy and focus in place to develop Tuticorin as a major industrial and commercial centre in Tamil Nadu for some time, to promote the regions before the potential investors, the state government has to walk an extra mile.
Besides, setting up a dedicated authority to oversee the planned and integrated development of the industrial and commercial areas in the districts would send a right signal before the investors converging during the Global Investor Meet.
SMART CITIES SANS ROAD CONNECTIVITY CAN’T AID GROWTH
The new government at the Centre led by the Prime Minister Narendra Modi has unveiled its ambitious project of developing about 100 Smart Cities in the country.
While the chain of development is directly linked with the road connectivity, it is for the state government of Tamil Nadu to take proactive steps to fix the connectivity issue. And those proactive steps would definitely ensure investments in the region during the forthcoming Global Investor Meet.
TAP THE OPPORTUNITIES IN GRANITE SECTOR:
TAMIN, though exports polished granite slabs, building slabs and tiles in several attractive colours, wall panels and monuments of various designs conforming to International Standards, was unable to break grounds due to stiff competition in the international market.
TAMIN, though entered the international granite market in the year 1979, their stride to export finished as well as value-added products in Granites is stuck in re-tapism and inconsistent policies on the exports by the state as well as union government.
If the Tamil Nadu government forms a JV with leading Granite companies from China during the GIM for setting up advanced plants for cutting, polishing and for monuments making, it will not only help the state to attain a status of hub for granite products, it will also generate huge number of employment opportunities for the youth in the state, says an expert.
Hence, experts feel that the Tamil Nadu government should understand the potential of granite segment in generating revenue as well as employment and finalize JV with Chinese or any other willing companies during GIM.
TN’S COMPETITIVE ADVANTAGE IN AGRO PROCESSING SECTOR:
Tamil Nadu has diverse soil and climatic conditions across seven agro climatic zones which provides ample opportunity to grow a variety of horticulture crops.
Furthermore, marine based industries at Thoothukudi and Kanyakumari could also become a game-changer for the state gifted with three major ports and numerous non-major ports for export of processed products to global markets.
If the constraints in the backward and forward linkages in the food processing sector are dealt accordingly, Tamil Nadu can play an important as well as catalytic role for the country and could become the food processing capital of India.
OPPORTUNITY IN DAIRY SEGMENT:
According to experts, the dairy segment in Tamil Nadu throws huge opportunity for investment both in technology upgradation as well as in processing and value-addition. If the investments started pouring in, it could help the coastal state, which has been blessed with three major ports and a few aircargo-handling airports, to attain a new status in export of value-added milk-related products.
With the availability of milk from rural areas, Global Investors Meet could help the Tamil Nadu government to brand it as leading player in dairy segment from the region and attract investments for the dairy sector, added experts.
POWER PROJECTS WAITING FOR INVESTMENTS:
Tamil Nadu Government has listed several power projects to secure uninterrupted power supply to the industries to be set up in the coming years. According to experts, if the investments pour in for the power sector during the GIM, it would eventually send a right message to the potential investors planning to set up other factories in the state, which has been blessed with good sea and air connectivity.
OPPORTUNITY FOR INVESTMENT LEATHER SEGMENT:
Tamil Nadu has been regarded as the citadel for leather segment in the country. The major production centres for leather and leather products in the state are located at Chennai, Ambur, Ranipet, Vaniyambadi, Trichy, Dindigul in Tamil Nadu.
By ensuring investments for the development of Mega Leather Clusters in the state, Tamil Nadu Government would help the sector in creating additional employment opportunity, particularly for the weaker sections of society.
EXPECTATIONS FROM THE GIM IN FISHERY SECTOR:
Tamil Nadu contributes the significant part in the total seafood export earnings of India. But the sustainability of the seafood supply is the major hindrance for the export. Aquaculture would be promoted in Tamil Nadu for the development of export and sustain in the seafood market for the longtime in future.
COASTAL TOURISM SECTOR PRESENTS IMMENSE INVESTMENT OPPORTUNITY
Cruise Shipping is one of the most dynamic and fastest growing components of the leisure industry worldwide.
For Tamil Nadu, which has three major ports and numerous non-major ports staring from Kattupalli in the North and Kanyakumari in the Southern tip and with a rating of one of the vibrant economies in the country, the coastal cruise tourism gives a new opportunity to increase its revenue stream.
Coastal tourism would give an opportunity for the Indians, especially the middle-class one who can’t afford luxurious tours in the Caribbean or in Europe to see the beauty of sea and her tides, to explore India from coastlines
OPPORTUNITIES IN HERBAL SEGMENT:
Experts feel that the Tamil Nadu government should attract more investment in the segment, as it would generate better value for herbal products (which are being discarded for want of apt mechanism to convert them as a salable product in international market) as well as job opportunities.