Tamil Nadu Chief Minister J Jayalalithaa at the Global Investors Meet in Chennai. (File photograph)
The drought-prone and communally sensitive southern districts of Tamil Nadu have received a boost as investors at this week's Global Investors Meet committed to projects worth Rs 50,000 crore to make the area a manufacturing hub.
This was one-fourth of the around Rs 2 lakh crore investment promised to the state.
"Introduction of incentives for investments in Southern Tamil Nadu has paid rich dividends," Chief Minister J Jayalalithaa has said.
Big names from India Inc like HCL's Shiv Nadar, Gautam Adani of Adani Group, Anand Mahindra from Mahindra and Mahindra and Ford India chief Nigel Harris had attended the meet on Wednesday.
Mr Nadar, Chairman of HCL, announced that the company will invest one billion USD (over Rs. 6,000 crore) in Madurai and Tirunelveli in the next five years.
K Pandiarajan, lawmaker from Southern Tamil Nadu's Virudhunagar constituency, said, "This fulfils a long-standing need. This would usher in peace. This region has some of the best colleges and youngsters have no opportunity here and all would soon change."
Southern Tamil Nadu -- comprising nine districts -- is largely dry, communally sensitive and don't share the state's growth story. In the late '90s, at least 250 people were murdered in the two districts of Tirunelvelli and Virudhunagar.
But pessimism lies heavy on the locals. An industrialist who did not want to be named said "I doubt this would materialise, coming at the fag end of this government. The government just wants publicity ahead of polls."
Over the last few years, following Jayalithaa's conviction in the assets case, no major step forward had been taken to boost industry in the state. A power crisis had developed and subsequently, many industries had shifted base to other states.