After Jayalalithaa’s death Tamil Nadu’s major financial projects lie in cold storage
- An Integrated Financial City was meant to attract domestic and overseas financial institutions
- With the state more interested in more pressing matters of the party symbols and prestige, the people are feeling disillusioned
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In 2012 the Tamil Nadu government unveiled a series of proposals on Wednesday, which include setting up of an integrated financial services centre, food irradiation centre and an aerospace park.
The reason behind setting up the Integrated Financial City was to attract domestic and overseas financial Institutions. While Chennai has emerged as a base for infotech companies, auto majors and BPOs, it has not attracted many financial institutions over the years. Interestingly, it was the brainchild of DMK leader MK Stalin to take on Mumbai as the financial hub of the country.
A financial city needs a critical set of investment bankers, traders and financial management professionals. With the current state of affairs in the country, this dream is also about to meet the dust. Since the former chief minister of Tamil Nadu Jayalalithaa’s death, the state has been plunged into taking sides in a political drama, witnessed a national coup of sorts with the Jallikattu uprising, seen chief ministers change in the middle of the night, dramatic arrests being made and yet no clarity on where the state is headed.
RK Nagar by polls were supposed to be held last month but owing to the volatile political situation in the state they were cancelled. People have lost faith in their leaders, the state is grappling with drought, demonetisation hit them hard and there is no proper planning in the state- be it financial or political. So why would any banking institution want to invest in Tamil Nadu? Even the BPOs and other business hubs in Chennai are mulling options considering the uncertain political climate in the state.
In September 2015, then Tamil Nadu Chief Minister J Jayalalithaa had announced to aid the growth of aerospace sector companies. She also said the state had allocated funds for formation of aerospace park and logistics park in Kancheepuram district at an estimate of Rs 620 crore.
The ambitious Aerospace Park has some updates to show. The Chennai Aerospace Park has all necessary clearances in place and will commence land development from March 2017, said a January report in the Hindu Business Line. The park has attracted an investment of close to ₹1,300 crore from 14 companies, with 19 more expressing interest. The objective of the project is to create an ecosystem to promote aviation industry in the State.
But now there are reports of these projects being given the cold shoulder. Farmers’ land have been acquired and in some cases talks were on for the acquisition for the projects. Now, with the government interested in more pressing matters of the CM’s chair and who gets the party symbol, the farmers’ pleas and fears have gone unheard. When news had spread of the projects and surveys been conducted, some were keen to dispose off their land and so had even stopped farming, but if this continues to be the case, then they can soon see themselves in a financial crisis.
