As Finance Minister, what are your views on the upcoming Global Investors’ Meet? In your previous stint as Industries Minister, you had led delegations abroad, including one to the World Economic Forum. What would you like to tell the investors who attend the event?
I am really excited. The preparations began a year ago. Our Chief Minister and Industries Minister took a business delegation to several countries. Finally, it has culminated in this event. Tamil Nadu has always been a favourite destination for investors. We have signed 241 Memoranda of Understanding (MoUs), attracting investments worth around ₹3 lakh crore. This has created over 4 lakh jobs. The State has a favourable and resilient ecosystem. We have an existing ecosystem such as social inclusion, technological advancements, innovations, talent pool and connectivity. More importantly, there is a political will. GIM 2024 will be another platform to showcase our potential.
How is the electricity situation in the State? What message would you like to give to potential investors on the power front?
The State’s average power demand is 14,500 MW - 16,500 MW, and the current daily average consumption is about 340 MU (million units). The demand is met through generation from existing power facilities like hydro stations, thermal power plants, central generating stations (CGS) share and power purchase. We are also meeting the demand through renewable energy. The Tangedco grid recorded an unprecedented maximum day consumption of 423.79 MU and an instantaneous demand of 19,387 MW on April 20, 2023.
What is happening on the renewable energy front? How is the State planning to give a push to renewable energy?
The Tamil Nadu government is making all necessary efforts to fulfil 50% of the State’s energy demand with renewable energy by 2030. The government is dedicated to delivering uninterrupted, reliable and quality power supply to all consumers at affordable prices. The way forward is solar power, green hydrogen power and hydro power. The State government has been encouraging large-scale integration of rooftop solar in both HT and LT sectors. To promote green hydrogen, concessions on open access to solar power generation for green hydrogen and ammonia manufacturing have been extended by the State government. Tangedco has proposed to establish pumped storage hydro electric projects under the public-private partnership (PPP) mode to meet peak-hour demand. The government has accorded an ‘in principle’ approval for the execution of 12 pumped storage projects under PPP mode.
There have been reports that Uttar Pradesh has overtaken Tamil Nadu as the second largest State economy. Your views?
No, the reports are incorrect. According to the latest GSDP figures from the Ministry of Statistics and Programme Implementation (MOSPI), the GSDP of the State for 2022-23 was ₹23,64,514 crore, when compared to ₹22,57,575 crore for Uttar Pradesh. We continue to be the second largest economy in the country.
What impact would the recent floods in Chennai and southern districts have on the State economy?
The MSME and agriculture sectors have had the maximum impact. However, we are taking the necessary steps, and I am confident that we will recover soon. The Tamil Nadu economy is very resilient and has the ability to overcome challenges. This is only a temporary setback.
Any assessment on the quantum of damage to industries and livelihoods in the flood-affected areas?
Around 3,300 micro, small and medium enterprise (MSME) units were affected. Around 2,64,000 hectares of crops were damaged. A total of 13,556 huts were lost. A total of 500 houses were partly damaged and 676 houses were fully damaged.
The State government has provided assistance to people in flood-affected areas. The amount of money seems to be huge. What kind of impact would this have on the State’s finances?
The two massive disasters impacted many lives and also caused damage to property and public infrastructure. The Chief Minister immediately announced a cash relief of ₹6,000. This had a financial implication of more than ₹2,000 crore. Around ₹37,000 crore has to be invested by the government for temporary and permanent restoration work. While there has been a huge increase in expenditure, there has also been a substantial dip in revenues, as the economic activity of these regions has taken a hit. Disasters of such magnitude cannot be managed entirely by any one State with its own finances. It requires assistance from the Union government, which has been sought multiple times. However, no funds have been received by the State so far.
