Interaction | December 2011
Financing infra projects is the greatest challenge
Tamil Nadu has successfully attracted a large quantum of investment in manufacturing, IT and infrastructure segments. The state has modeled itself as an attractive destination on the basis of sound infrastructure support, a quality workforce and policy initiatives by the state government says JR Tanti, Managing Director, Synefra E&C in an interaction with Projects Info
Please comment on your business activities in the state of Tamil Nadu?
Southern India is a very important hub for hi tech manufacturing industries in India and Synefra with its 400+ acre SEZ contributes to the development of this commercial headquarter of Tamil Nadu. Backed with experience and expertise in this sector, we are proud of this project which is an efficient and effective techno-commercial solution for growing industries.
Do you think Tamil Nadu is on the forefront of contributing to India's GDP? What is your view on the ease of doing business in TN?
Tamil Nadu as a state contributes to 6.8% of India's Net Domestic Product and the growth rate of its NSDP is comparable to that of Gujarat and Karnataka as well. Tamil Nadu with its excellent physical, civic and social infrastructure and a large pool of talented, educated, hardworking, workforce is well positioned to capture a substantial share of the construction market thereby generating massive employment opportunities in this segment. Thus, Tamil Nadu as a state offers great opportunity for infrastructure development to support this growth. Considering the government values, policies, utilities, HR and services, these factors are readily available in Tamil Nadu. Hence Synefra has established a Special Economic Zone in Coimbatore.
Are you looking at Tamil Nadu as a prospective business destination?
The future outlook of Tamil Nadu in terms of business and economy looks quite healthy. Labour in Tamil Nadu is very productive and skilled backed by good infrastructure. A large international airport, two major ports, quality power supply and above all, the state government is responsive and focused on making the state friendly for the investors. Therefore, Tamil Nadu business environment looks very lucrative in terms of investment.
Given a choice between Tamil Nadu and Gujarat, whom will you choose as your business destination? Give reasons.
Both Tamil Nadu and Gujarat are leading industrial states of the country and they hold their own pros and cons for business destination.
While Synefra has its business opportunities in South due to hi tech engineering sector, the choice is currently tilted towards Tamil Nadu, purely on business reasons. Factors like government stability, policies, utility services, human resource and allied services, are readily available in Tamil Nadu just like in Gujarat. While Gujarat too offers a proactive business-friendly environment, excellent infrastructure and is geographically well-positioned with a pool of skilled man power, the state is conducive for upstart entrepreneurs rather than service oriented people. Having said that, Synefra has opted currently for Tamil Nadu, it holds lot of promise and growth opportunities for its business plans.
What are the challenges confronting Tamil Nadu government to attract global investors?
The state has successfully attracted a high quantum of investment in the manufacturing, IT and infrastructure sectors. The state has modeled itself as an attractive destination on the basis of sound infrastructure support, a quality workforce and policy initiatives by the State Government. The Tamil Nadu government has set up an Industrial Guidance Bureau (IGB) with the aim to boost investments and attract major investment proposals.
The State Government is focused on stimulating further industrial development, attracting investment, facilitating new manufacturing capacity and enabling global manufacturing competence and competitiveness of local industry. And thus, Tamil Nadu has emerged as a front ranking State in attracting PPP investments. But the greatest challenge to achieve this growth in infrastructure sector and corresponding impact on the construction industry is the inflow of funds in developing the infrastructure projects.