The Hindu : Focus now on development

Online edition of India's National Newspaper
Monday, Feb 25, 2002

Opinion

Opinion - News Analysis

Focus now on development

By V.Jayanth

CHENNAI, FEB. 24. Now that the stage is set for the ascension of the AIADMK leader, Jayalalithaa, as the Chief Minister of Tamil Nadu, people are expecting her to concentrate on the development of the State, without frittering away the popular mandate on the politics of vendetta.

In her interaction with the media today, after the Andipatti result was declared, Ms. Jayalalithaa vowed to make Tamil Nadu the Number One State in all spheres. That is not going to be an easy task, though by no means unachievable.

So many critical decisions are waiting for her and the State administration has to give shape to the next budget. When Ms. Jayalalithaa returns to the Secretariat, the officials will be able to get the thrust and the direction that the budget for 2002-03 must take.

The first major challenge is to get over the financial crisis that the State has been facing for a year now. Apart from continuing with the austerity measures and cutting back on Government spending, ways and means of mobilising additional funds and enhancing revenue have to be identified.

According to official sources, the State has to provide for a major outgo in 2003, to give back the impounded portion of the wage increase granted to government employees while accepting the Fifth Pay Commission recommendations. Where can the Government find the resources?

This calls for a growth-oriented budget and an investor-friendly industrial policy. In July-August last year, Ms. Jayalalithaa promised a new industry policy and officials even claimed it would be out in December-January. Obviously, this too is waiting for final touches from Ms. Jayalalithaa.

The sources say that closure of loss-making State undertakings and quasi-privatisation are other key decisions that need to be taken soon. ``The Government must take the role of a facilitator and enabler, rather than that of investor. We need to provide a policy framework for largescale investments in the infrastructure sector, which needs vast resources'', a senior Secretary to Government explains.

Captains of industry and trade are wondering if, in the new innings, Ms. Jayalalithaa will opt to initiate a regular dialogue with them to promote industrial development and woo investors. The president of a city Chamber of Commerce says ``It is time to catch up with Karnataka and Andhra Pradesh in marketing Tamil Nadu's strengths and advantages. We need an Industry Minister who can conduct road shows and meet industry representatives frequently''.

With the Centre calling upon the States to embark on the second generation of reforms, it is now up to the Tamil Nadu Government to take the lead. Urgent reforms in the power sector have to be undertaken. The subsidy burden has to be reduced, especially in the food sector.

It has been Ms. Jayalalithaa's consistent stand that the State is not for any confrontation with the Centre. Given the AIADMK's support to the NDA Government on crucial issues, a logical step seems to be to strengthen cooperation. Since many of the Union Ministers frequent Chennai, there can be nothing wrong for the State Ministers to hold regular review meetings with them to speed up projects and programmes.

In this her third innings as Chief Minister, Ms. Jayalalithaa will do well to concentrate on industry, the economy and development and reduce the excessive focus on politics. Instead of pursuing the politics of vendetta, she could turn her attention to the development of the State and keep her birthday promise to the people.

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