There is a distinct murmur that can increasingly be heard in the corridors of power across the length and breadth of the entire country, and especially so within different Secretariats dotting State capitals right from Srinagar all the way down to Chennai : if rumors are to be believed, each time an attractive new investment proposal comes forth, the entire bureaucracy, Chief Secretary downwards, rushes into a collective huddle, with just one fervent prayer on its lips- plz don’t let the Gujaratis find out, else we might as well kiss our chances goodbye once again.
OK, perhaps I exaggerate, but am I really to blame?...
So, does the Peugeot decision signal the beginning of the end, at least insofar as TN’s undisputed supremacy as the Automotive capital of India is concerned, especially with the Tatas and American giant Ford having already set up base in the land of the Mahatma? (as it happens, even Ford was expected to opt for Chennai)?...Well, let’s just put the brakes on for just a moment. First, given the sheer scale of the investment/job creation involved (the Sanand plant, Peugeot’s 17th globally, will provide direct employment to 5,000 people and indirect employment to another 25,000 persons), losing out on this particular project is bound to hurt big-time, but we should bear in mind that it is just one project, with most other auto/auto ancillary firms choosing to stay put where they are. Secondly, it would be worth examining just why Tamil Nadu lost out in the race on this particular occasion- as Govt officials themselves put it, it seems that they have become victims of their own overwhelming success. Given the sheer volume of investment that’s been pumped into the state over the last few years, land is no longer as freely available as it was earlier, a constraint which eventually ensured that the French chose to look further north for their mega-plant, which marks their re-entry into the Indian market after a nearly decade and a half long hiatus(apparently, the TN Govt was not in a position to immediately hand over the specific parcel of land Peugeot was looking for, and by the time all formalities were completed, Gujarat had already won the day). As would be apparent to one and all, while land constraint is inarguably a big obstacle, the circumstances prevailing in this particular instance ensure that we are not dealing with any systemic/structural impediments (as is routinely encountered in numerous other states), which can not be removed provided there is adequate will on the part of the State Govt (which we can be sure of after this latest loss).
Thirdly, and most importantly, the plain fact is that the state still has a lot going for it. Unlike the northern regions of Tamil Nadu, where Peugeot had been scouting for a suitable site, the southern part of the state offers land aplenty, that too at relatively cheap prices, with few bottlenecks to play the role of a spoilsport. Further, with excellent connectivity to the Tuticorin port, as well as several operational airports spread across the entire state, Tamil Nadu retains its charm as the number one choice to serve as an export base for global automakers looking to expand their reach across the Asian continent, which in any case is poised to become the most dynamic automobile market in the years to come. Finally, with an unmatched pool of technical talent emerging year after year from the myriad Technical/Engineering institutes found in almost every second street corner , there are very few rivals who can come even close to providing the sheer quantum of manpower required to sustain a technical skill oriented industry over a prolonged period of time.
In sum, while there is no doubt that
Meanwhile, for the beleaguered bureaucrats in Chennai, sound proofing the walls might be a good beginning.