OVERVIEW OF TAMIL NADU
Tamil Nadu is the fourth largest state of India. It has a diversified manufacturing sector and features among the leaders in several industries like automobiles and auto components, engineering, pharmaceuticals, garments, textiles, leather, chemicals, plastics, etc. It ranks first among the states in terms of a number of factories and industrial workers.
Between 2015-16 and 2020-21, Gross State Domestic Product (GSDP) is expected to expand at a Compound Annual Growth Rate (CAGR) of 12.20% to reach INR. 20.92 trillion (US$ 299.32 billion). Net State Domestic Product (NSDP) expanded at a CAGR of 11.93% to touch INR. 16.59 trillion (US$ 237.40 billion) between 2015-16 and 2019-20.
As of February 2021, the state had a total installed power generation capacity of 33.44 GW. According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative Foreign Direct Investment (FDI) inflow in Tamil Nadu and Puducherry stood at US$ 2,683.85 million between October 2019 and December 2020. Total merchandise exports from the state stood at US$ 30.02 billion during 2019-20. From April 2020 to January 2021, exports stood at US$ 20.49 billion. Tamil Nadu’s spending on infrastructure increased by about 26.7% in fiscal 2020-21, when compared to fiscal 2019-20, despite a challenging situation caused by the first wave of pandemics.
As a result of these measures taken by the Government, Tamil Nadu is expected to register a positive growth rate of 2.02 % in 2020-21. This is against an All India negative growth rate of 7.7 % in 2020-21. Secured Governance is a novel concept that will improve the position of both state and the nation. It offers a value and valuation strategy to get all the basic infrastructure development with a negligible investment by the Government. It could become one of the most sought-after investment destinations due to its strategic location, conducive business environment, state-of-the-art infrastructure, proactive governance, and favorable ecosystem.
AN OUTLINE OF TAMIL NADU
INTERESTING FACTS ABOUT CHENNAI – CAPITAL CITY OF TAMIL NADU
- Chennai is consistently ranked amongst the top 6 “Most Pocket-Friendly Cities” in India by the Economic Intelligence Unit.
- Chennai has been ranked as the city having the lowest cost of living in the world as per the Cost-of-Living Index 2018.
- Chennai is known as the “Automobile Capital of India”.
- Chennai is a part of 3 important Industrial Corridors of the Government of India:
- Chennai – Bangalore Industrial Corridor
- Chennai – Kanyakumari Industrial Corridor
- Visakhapatnam – Chennai Industrial Corridor
SOME KEY SECTORS IN TAMIL NADU
TAMIL NADUKEY SECTORS – AT A GLANCE
SECURED GOVERNANCE ECONOMIC GROWTH DEVELOPMENT IN TAMIL NADU
Secured Governance is the concept to develop a Techno-Economic Corridor that will Act as growth center for the individual sectors with all other sectors in a country that fosters economic growth. Secured Governance offers a strategy for the government to get all the basic infrastructure development with a negligible investment. The very concept of “Secured’’ here implies a secured convergence or knitting with various sectors defining a growth for an economy Facilitating investments opportunity through providing ready-to-use infrastructure with the active participation of prestigious private sector players like yours. It facilitates an equal opportunity for the Private sector and government to work together with a single-window clearance system to achieve greater results to bring National progress with profitability to the participating organizations. Secured Governance Compliments the present PPP developmental model and with value and valuation of infrastructure will yield higher returns. Secured Governance as development guidelines, we get multiple returns on investment, and this could be possible through Structural planning.
Secured Governance for Transport Hub is a part of our effort to study and outline how a tighter integration of Economic Development, risk assessment, technical security measures, and incident response mechanisms can lead to more effective operation and Incident handling for the Transport Sector.
MINI HUBS FOR ROADWAYS/HIGHWAYS
Roadways are the most important transport infrastructure across the world. They facilitate mobility and are synonymous and essential to development. The development of a society depends on exchanges and communication and the roads provide by them. A broad network of road transport has a significant impact on nation-building as it provides better physical access to employment, education, and health services.
There is a need to find ways by which we can improve our transportation sector performance without resorting to heavy investments. The purpose of a MINI HUB along the roads/highways is to provide for the development and also to serve as entrance routes to the nearest Techno-Economic Hub or Secured Governance Township. Mini hubs will be a part of an existing or new development project. These hubs will not only facilitate public utility space for travelers but also promote small-scale commercial units generating employment and revenue for the defined region.
A typical Mini-Hub will be spread over an area of 1000 to 2000 sq. m, comprising of facilities like Roadside Stations, Motorway Service Areas, Retail & Minor Ancillary Uses, Toilets/Washrooms, Parking Facilities, Health Clinics, Internet Cafes, ATMs, Handicraft shops, Small Hotels, Restrooms, etc.
Building 2,700 Mini-hubs at a regular interval of 100 km along the Indian roadways/highways will generate employment opportunities for 1 to 1.5 lakh personnel. Estimated revenue through Lease/Rentals from these hubs will be INR.5,000 crores annually.
A Mini Hub will also facilitate additional supportive Road amenities and revenue verticals such as:
- Motorway Service Areas (MSAs) and other roadside facilities perform an important road safety function by providing road users with the opportunity to stop and take a break in the course of their journey. Motorists should take a break of at least 20 minutes every two hours. Drivers of Large Goods Vehicles are subject to a regime of statutory breaks.
- A Roadside Station is a designated rest area found along roads and highways. In addition to providing places for travelers to rest, they are also intended to promote local tourism and trade. Shops may sell local produce, snacks, souvenirs, and other goods.
- Parking facilities along highways are again a great public utility. An additional charge can be levied for parking vehicles in a designated area.
- A pay Public requires money payment of any individual to use. It serves as a great public utility for the motorists/passengers.
- An emergency telephone is a phone specifically provided for making calls to emergency services. Due to emergency telephone services, the response time from authorities during exigencies has quickened and become swifter.
- Small Health clinics are essential to provide medical help and assistance to travelers if any accidents or mishaps occur near highways.
- Retail space for small food stores, drug stores, and variety stores selling confectionery, groceries, beverages, pharmaceutical, and personal care items, hardware, or printed matter.
ADDITIONAL REVENUE THROUGH ROAD NETWORK
Signage and billboard advertising along roadways in addition to imparting important information to drivers/passengers can help generate additional revenue for the government. Signage can provide directional guidance, reassure drivers/passengers about their location, indicate sites of local services, state the speed limit, and warn of upcoming changes or hazards. Given the value of such information, it is important that signs be designed and placed so that road users can locate, read and comprehend them within a timeframe appropriate for changing their plans and behavior.
Highways and Expressways in Tamil Nadu can accommodate and can give returns through billboards and Navigation Signage’s at an interval of 250- 500 meters. At the same time, National roads and main roads this interval can vary from 25–100 meters across the road network in Tamil Nadu. Wherein each signage generating revenue around INR. 10,000 – INR. 30,000 per month.
As per calculation, around 1 million billboards can be placed along the side of the road network of Tamil Nadu. Taking the vast network of roadways (excluding military engineering service roads, Railway & Port Roads, and other unsurfaced roads) into consideration, if tapped properly, billboards it can fetch a revenue of around INR. 12,000 crore each year through effective placement of billboards and Navigation Signage’s at regular intervals.
MINI HUBS IN RAILWAY STATIONS
The purpose of these MINI HUB’s along the Railways is to provide for high-quality commercial development along with those railway networks, which serve as entrance routes to the nearest Techno-Economic Hub or Secured Governance Township. These Mini hubs will be part of an existing or new development project. These HUBs will not only facilitate public utility space for the travelers but also promotes small-scale commercial units generating employment and revenue from the defined region.
- Mini HUB can create a small proportion of revenue to be generated through other activities on the rail franchise network such as car parking, station retailing, advertising, etc.
- Place advertisements inside the passenger coaches. The external parts of the coaches are already being used for advertisements; retailing the Train operations with branded and unbranded retailing’s to be promoted inside the passenger trains.
- SG offers a strategy for developing a “Railways HUB or Mini HUB” along with all the basic infrastructure development along with the various Metro Rail Project and MonoRail Project with a negligible investment yield higher returns. It is an inspiring trend in creating vibrant urban spaces integrated with high-quality transit.
- MINI HUB for Rail Projects is based on a revenue model to generate revenue from the valuation of property development along with the limits of railway infrastructure or above the railway infrastructures. It will create fully integrated commercial and residential communities along the railway alignment.
- MINI HUB for Railways will also facilitate multiple commercial spaces with 536 Mini HUBs along with various stations which will get returns over 53,600 Croresthrough valuations over a period of 5-10 years not including the advertisement cost. This includes each station with multiple structures with a salable area of 100,000 sq. feet and rental facilities.
- In the Tamil Nadu state area railways will influence a maximum of 10 multi Sectoral HUBs spread over the influence areas. India will get an investment of Approx. 12,000 Croresin 5-10 years from the commencement year of the project through private participation. Estimating an investment for one Hub accounts to INR. 1,200 Crores. And this will yield a return of almost INR. 36,000 Crores through Valuation of the salable infrastructures and give it back to the system.
- Secured Governance will facilitate returns on Investment of more than 93,000 crores from selected Infrastructure Development projects.
- Additionally, the Mini Hubs for railways will also generate additional continuous revenue through rental facilities from the infrastructure to a tune of 9,700 crores with an average rental of`INR. 150 per square feet from each infrastructure with a rentable space of 100,000 sq. ft. per Mini Hub for 536 MiniHUBs.
SECURED GOVERNANCE IN TAMIL NADU TOURISM SECTOR
- Tamil Nadu boasts the largest tourism industry in India with an annual growth rate of 16%.
- 413 ancient monuments and archaeological sites in Tamil Nadu;(Archaeological Survey of India (ASI))
- The beautiful beaches, the magnificent temples, picturesque wildlife sanctuaries, colorful festivals, and a plethora of panoramic sites make Tamil Nadu tourism an enthralling experience.
SECURED GOVERNANCE AND TOURISM HUBS
Secured Governance for Tourism will provide for high-quality commercial development along with Key Tourism destinations, which serve as Techno-Economic HUB or Secured Governance Township. These HUBs will be part of an existing or new development project. These HUBs will not only facilitate public utility space for the travelers but also enhance foreign and domestic arrival rate moreover promotes commercial units generating employment and revenue from the defined region.
- Selecting Existing Tourism destination like heritage sites, Religious or natural Tourist Location, etc. and developing it as Tourism Hub OR Developing a New Strategically selected location to a Tourism HUB with state of art infrastructures and Amenities.
- These HUBs are well equipped with modern infrastructure, facilities, and services in the areas of commerce, communication, connectivity, hospitality, transportation, medical facilities, etc.
- Buoyed by the national recognition for tourism infrastructure development in Tamil Nadu these Hubs will play a part in taking the momentum forward in planning major destination development projects across the state. For this, the Departments have to identify projects on Public Private Participation which would develop hubs comprise theme parks, health city, science city, aqua-marine park, international convention center, etc.
- Tamil Nadu Tourism Hubs will influence a maximum of 2 multi Sectoral Hubs spread over the influence areas. India will get an investment of INR.2,400 Crores in 2-3 years from the commencement year of a project through private participation estimating an investment for one Hub accounts to INR. 1,200 Crores.
- And this will yield returns of approx. 7,200 Crores through Valuation of the salable infrastructures and give it back to the system.
- Development of selected tourist circuits and centers which are popular with the tourists, instead of spreading limited resources over a large number of circuit centers.
- Diversification of tourism in Tamil Nadu from the traditional sight-seeing tour centered (primarily places of cultural tourism interest) towards the more rapidly growing tourism market within the framework of state’s milieu with conscious attention to the aesthetic, environmental and socio-cultural implications of tourism projects.
- Restoration and balanced development of national heritage projects of both cultural, historical, and tourist importance to exploit advantages of Tamil Nadu’s unique place as a cultural tourism destination and to utilize tourism as a major force in support of conservation of national heritage.
- It will not only facilitate National growth and provide additional revenue from Tourism facilities but also will facilitate an employment opportunity for approximately 2 lakhs Population.
EDUCATION HUBs IN TAMIL NADU
We present a case wherein Education HUB is linked to a town center planned not only to capture its own special charm but also to blend with Infrastructure development and holistic fusion of country and cosmopolitan life experiences compatible with evolving needs and demands of the entire socio-economic strata. The Master Plan has to address the overall vision of the education hub project along with ideal townships offering a choice of elegant housing, from state of art apartments too, Industries, Hospitals, Educational Institutions, Government facilities, etc.
Secured Governance introduces the exercise of authority – economic, administrative, or otherwise – to manage the system’s resources and affairs, which comprises the mechanisms, processes, and institutions through which stakeholder groups articulate their interests, exercise their rights, meet their obligations, and mediate their differences. Education Hub under Secured Governance is linked to a town center planned not only to capture its own special charm but also to blend with Infrastructure development and holistic fusion of country and cosmopolitan life experiences compatible with evolving needs and demands of the entire socio-economic strata. The Plan has to address the overall vision of the education hub project along with ideal townships offering a choice of Recognized Higher Educational Institutes in India elegant housing, from state of art apartments to, Industries, Hospitals, Educational Institutions, Government facilities, etc. So the Growth in Education with city growth tied together will not only boost economic development but also promote environment and energy conservation, people and well-being, Art, Culture, etc. form a strong translation of growth scenario and vision.
It is a common observation in India that most of the public and private run schools/educational institutions have underused capacity. We can do a lot better to utilize our existing public infrastructure. Secured Governance proposes a model where the extra FSI given to the Educational Institutions, would be utilized by worthy entrepreneurs through a transparent system of selection. It’s worth keeping in mind that upgrading existing infrastructure will have a comparable, or better, return on investment than building new capacity. Educational Institutions have to take pragmatic steps to rope in entrepreneurs to develop the existing land and infrastructure with allied activities in sports, healthcare, vocational institutions, soft skill development centers, etc. by apparently having relaxed regulations will catapult the entire thing into a massive growth phenomenon.
SELF – SUSTAINING MODEL FOR EDUCATIONAL INSTITUTES
- Utilizing the maximum FSI benefit in institutes could help to bring several allied ventures/institutions into the existing infrastructure by private parties. Allowing the FSI area to be used for educational & allied activities to generate extra revenue, it would bring sustainable funds for the further growth and development of the institution;
- Helps to provide avenues for drawing upon the knowledge and expertise of the alumni for furthering the cause of a School of Excellence;
- Encourage games, sports, yoga, etc., and national and international games by organizing tournaments and competitions at different levels;
- Provide advance training for international placement at a premium cost and continuous revenue from the beneficiaries;
- Works for promotion and dissemination of useful knowledge and advancement to develop entrepreneurship and incubation centers for student and staff;
- Provides career networking for current students who need guidance;
- Creates a fundraising event for helping students to further their educational goals.
Secured governance strategies with measurable outcomes can be used to evaluate the economic well-being of the Institution while giving them an impetus to impart quality education, which in itself is a great service to the nation.
- Considering the central government’s ‘Make in India’ program which includes major new initiatives designed to facilitate investment, foster innovation, protect intellectual property, and build best-in-class manufacturing infrastructure – a venture on these lines could be started in the existing premises.
- India’s youth hold the promise and the education sector plays a critical role in harvesting this immense potential. Innovation-led skills development is a need of the hour and robust partnerships will be needed to achieve this. For businesses, partnering with educational institutions allows them to take advantage of structures already geared to training people. An Institution can invite businesses that can work within these existing training structures to develop successful and cost-effective operations. Academic-industry interaction provides a basis for removing the barriers between educators and business practitioners in a win-win environment.
- The importance and relevance of VET (Vocational Education & Training) are being felt by everyone which includes the stakeholders of the Indian economy. In most developed countries nearly 95% of the youth between the ages of 15 to 25 years, learn a trade or skill or competence, in a formal manner. This fosters employment generation, productivity improvement, and higher efficiency of the processes within the country as well as improvement in the quality of life of the citizens. An Institution can start Vocational Training Programs to promote Enterprise skill development and all forms of vocational education which makes a lot of sense in an economy that has purely become skills-driven. Providing tailor-made education will fulfill employment needs in the existing marketplace.
- An ability to be agile and responsive to businesses’ needs is where the educational institute partnership model can really shine. Any institution capable of producing courses of different lengths and depths can change its class offerings, class times, and even class locations to meet the needs of local employers and the workforce.
- Sports HUB can be built with the aim of providing world-class quality training facilities for all sports and games. It would be a good platform to encourage a large number of sportspeople to adopt and pursue sports and make sports part of their life. The Sports HUB will be a fully integrated sports, entertainment and lifestyle hub for everyone. Unique cluster development of integrated world-class sports facilities within the hub will play a critical role in accelerating the development of the sports industry, excellence, and participation and take sports to the next level. It would be a good platform to encourage a large number of people to adopt and pursue sports and make sports part of their life.
- Tamil Nadu Education Hubs will influence a maximum of 2 multi Sectoral HUBs spread over the influence areas. India will get an investment of Approx.`2,000 Crores in 5-10 years from the commencement year of a project through private participation estimating an investment for one Hub accounts to `INR. 1,000 Crores.
- And this will yield returns of approx… 7,200 Crores through Valuation of the salable infrastructures and give it back to the system.
- It will not only facilitate National growth and provide additional revenue from Education facilities but also will facilitate an opportunity for approximately 2 lakh jobs.
- The combination of education and infrastructure will be absolutely critical to turning what is a potential opportunity from a strongly growing labor force to something which delivers sustainable growth.
SECURED GOVERNANCE FOR SPORTS
Sportspersons from Tamil Nadu have been taking part in national and international tournaments and bringing laurels to our country. The sports of Tamil Nadu are many and varied. The state had a number of ancient games, some of which have survived till today. In Tamil Nadu, Chathurangam is the ancient form of chess that we play now. With 64 squares on the board and many coins as bishop, chariot, king, etc. the game is played till one opponent checkmates the other to win the game. Dayakattam is a game like the modern ludo where one should cross all the squares by beating the opponent’s coins. Instead of square dice ‘Dayakattai’ is used as dice.
Kabbadi, a team contact sport originated in Tamil Nadu and is recognized as the state game. The Guindy racecourse in Chennai, set up in 1777, is the oldest horse racing venue in India. Adventure sports have gained popularity, especially amongst the tourists visiting the state. There are 6 major stadiums in Tamil Nadu.
Think ‘infrastructure’ and it conjures up images of economic endeavors like bridges, roads, and ports. However, in all serious discussions on infrastructure, there is one glaring omission sports infrastructure. It is a component that contributes to the economy as much as some of the other infrastructure projects, with the entire attendant attribute – employment, supply-chain impacts, long-term sustainability, and indirect benefits, and so on. There is no doubt that there is an abundance of talent and potential yet there are various reasons why we are unable to succeed in any sport other than cricket. From stadiums to sports equipment, the supply is less than the demand with very few centers having the modern and the latest paraphernalia.
However, the situation may seem there are still remedies that can be employed to change the scenario for the better. Better facilities, better equipment, better funds will come about with a better attitude. We need to have a holistic approach towards sports development taking into account the health, recreational, social, and economic benefits. Secured Governance is an ideal choice that equips to create adequate and coordinated measures to ensure the provision of financial, human, technical, information, and other capacity-building resources. The London Olympics have demonstrated how sports infrastructure benefits the economy.
- Secured Governance for Sports as a Sector is a strategy that relates to the develop a relationship between the development of sports facilities and infrastructures to various other sectors developing together along with various institutions as partners and Government as governing body to foster, coordinate and create a defined “ Sports Hub” along with various strategic locations in the country or state. Sports Hubs will be developed as cluster/s on strategically defined locations that improve and develops the cluster as a whole through regional strategies, technology, and interdependency among various sectors of growth.
- Sports hub will be incorporate various components required to create a world-class facility at the same time promotes not only sportsmen in various forms but also direct agents coaches, Trainers, sports equipment manufacturers, etc., and indirect agents such as component manufacturers used in making sports equipment and field staffs, etc. The sports HUB will regenerate a region and will incorporate a new stadium, new multi-purpose indoor arena, new aquatic center, and supporting leisure / commercial developments including a visitor attraction, health, and fitness facility, specialist retail, serviced apartments, etc.
- The sports hub will form the major element of a new sports city, which will be the focus for sporting and lifestyle activities in Tamil Nadu in the future. This development not only promotes the facilities but also makes these projects self-sustaining and as we discussed earlier creates a holistic approach towards sports development taking into account the health, recreational, social, and economic benefits.
- With secured governance for sports, better funds, better infrastructure, better facilities, better equipment, better coaches will come about. They will all help to usher in a better attitude making Tamil Nadu a truly sporting state. State corporate and NGOs will come forward in getting more funds. Despite the government’s efforts of creating various schemes to promote sports facilities, doubts over the long-term financial viability of such assets in the absence of grants or from not-for-profit bodies still persist.
- While the government’s role in nurturing sportspersons and attract investment cannot be understated, it is equally important to underscore the role of the private sector in bridging the gap. If India has to promote private investment to create world-class sports infrastructure, due importance must be given to returning on investment.
- Sports Hubs will influence a maximum of 2 multi Sectoral HUBs spread over the influence areas. India will get an investment of Approx. 1,000 Crores in 5-10 years from the commencement year of the project through private participation estimating an investment for one Hub accounts to INR. 500 Crores.
- And this will yield returns of approx. 2,500 Crores through Valuation of the salable infrastructures and give it back to the system.
NANO HUBS IN VILLAGES OF TAMIL NADU:
Around 12,618 Nano HUBs link three market elements of agriculture production, processing, and marketing to boost the competitiveness of rural economies and communities. The rural elements of Tamil Nadu villages make up the value chain of the rural economy with coordination, integration, and marketing being the core functions of the HUB such as primary sector-related service of skill up-gradation training programs food processing practices to reduce post-harvest losses and marketing.
EXPECTED INVESTMENT AND OUTPUTS THROUGH HUBS, MINI HUBS & NANO HUBS OF TAMIL NADU
|Expected Investment by Private Bodies
(in INR. Crore)
|Expected Output to Govt. / Annum
(in INR. Crore)
(in ‘000 numbers)
|HUB(Smart Cities)||08(1 lakh Population per Smart City)||1,600,000||3,200||200|
|Mini HUBs (near Major Roadways)||1,000||150,000||600||1,800|
|Nano HUBs (in all villages)||12,618||30,000||80||1,000|
FUNCTIONING FRAMEWORK FOR SECURED GOVERNANCE
Secured Governance consists of either a separate process or part of decision-making or leadership processes. In modern nation-states, these processes and systems are typically administered by a government.
When discussing governance in particular organizations, the quality of governance within the organization is often compared to a standard of good governance. In the case of a business or of a non-profit organization, governance relates to consistent management, cohesive policies, guidance, processes, and decision rights for a given area of responsibility. Secured Governance is the concept to develop a Techno-Economic corridor which will Act as growth center for an individual sector with all other sectors playing supporting role for development and nation-building process.” In spatial terms, it integrates rural and Urban Growth. In economic terms, it brings about the threshold level for main sectors and supporting sectors. In technological terms, it provides cost-effective symbiotic relationships between main and subsectors. Secured Governance tries to provide a conducive environment for the social growth of the near and far communities.
Dr. P. Sekhar,
Chairman of Global Smart Cities Panel & Micro Tech Global Foundation
Chairman Trigyn Technologies Ltd,
Chairperson IIT Madras Entrepreneurs Forum