Vision Tamil Nadu

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VisionTamil NaduStrategic Plan for Infrastructure Developmentin Tamil NaduGovernment of Tamil Naduwww.imacs.inMarch 2012

Vision2023Vision Tamil Nadu 2023Vision TamilNadu2023Vision Tamil Nadu 2023Vision Tamil Nadu 2023Vision 2023Tamil Nadu

Table of ContentsPreface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81.Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92.Key outcomes of the Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .292.1 Vision Themes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29Growth Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .353.1 Overall Fiscal strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .353.2 Strategic initiative #1: Thrust on manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .393.3 Strategic initiative #2: Making SMEs vibrant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .443.4 Strategic initiative #3: Making Tamil Nadu the knowledge capital and innovation hub . . . . . . .453.5 Strategic initiative #4: Specialisation in service offerings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .483.6 Strategic initiative #5: Thrust on skill development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .503.7 Strategic initiative #6: Improving Agricultural Productivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .513.8 Strategic initiative #7: Creating 10 world class cities that become the nodes of growth . . . . . . .543.9 Strategic initiative #8: Signature projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .543.10 Strategic initiative #9: Care for the vulnerable sections of society . . . . . . . . . . . . . . . . . . . . . . . . . . . .543.11 Strategic initiative #10: Encourage PPP as a mechanism for infrastructure creation . . . . . . . . . . .55Sectoral Investment Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .564.1 Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .574.2 Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .584.3 Industrial and Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .594.4 Urban Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .614.5 Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .624.6 Human Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .634.7 Total Estimated Investment in Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .654.8 Funding the infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66Appendix 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67Appendix 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67Appendix 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68Appendix 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .683.4.Strategic Plan for Infrastructure Development in Tamil Nadu :Vision Tamil Nadu 20235

6Vision Tamil Nadu 2023: Strategic Plan for Infrastructure Development in Tamil Nadu

PrefaceTamil Nadu has been one of India’s most progressive states and is amongst the top three on several economicand social indicators. Over the past few years, the state had lost its edge in terms of economic growth and fiscalposition. In the Governor’s address in June 2011, the newly elected government identified the need for formulatinga succinct strategy for rejuvenation of economic and social growth of the state and to reclaim the top position.Such a strategic blue print for development should aim to achieve a consistent economic growth rate of over 10percent per annum in a highly inclusive manner. The government envisaged the preparation of a ‘Vision Documentfor Tamil Nadu’ that would identify and remove the bottlenecks in development, prioritise critical infrastructureprojects, and work to propel the state of Tamil Nadu to the forefront of development once again. The objectiveof achieving economic prosperity and employment generation with inclusive growth is sought to be achievedthrough the implementation of a coherent Vision.The Budget for the year 2011-12 also listed the preparation of the Vision with a focus on developing a shelf ofprojects for strengthening infrastructure. The Budget also announced the establishment of the Tamil NaduInfrastructure Development Board, under the Chairmanship of the Honourable Chief Minister, for facilitating thespeedy implementation of critical infrastructure projects.Government of Tamil Nadu with the support of Asian Development Bank has undertaken the preparation of the‘Tamil Nadu Vision’ document addressing the following areas:I.Formulating a vision and growth strategy for the state of Tamil Nadu, with sector specific sub strategies.II.Identifying thrust areas for growth and the bottlenecks in such areas.III. Identifying critical projects in important sectors including power, roads, port development, agriculture,irrigation, housing, health, higher education, urban development, public transport, industry and tourism.IV. Formulating institutional mechanisms for removing administrative delays in implementation of projects.Government of Tamil Nadu and ADB appointed experts from ICRA Management Consulting Services Limited(IMaCS) to undertake a study to prepare the “Tamil Nadu Vision document” on the basis of extensive research, datacollection and discussions with stakeholders including all state government departments and industry. The Studyis being conducted in three phases as follows:1.Phase I - Vision formulation2.Phase II - Detailed sector reports and project profiles3.Phase III - Implementation road mapThis document covers Phase I of the exercise and outlines the contours of Vision Tamil Nadu 2023 and a summaryof the proposed infrastructure initiatives for Tamil Nadu.Strategic Plan for Infrastructure Development in Tamil Nadu :Vision Tamil Nadu 20237

Abbreviations1 BillionOne Hundred CroreMMRMaternal Mortality Rate1 CroreOne Hundred LakhMNCMulti National Corporation1 LakhOne Hundred ThousandMSMEMicro, Small and Medium Enterprises1 MillionTen LakhMTPAMillion Tonnes Per Annum1 US INR 45MWMega WattBRTBus Rapid TransitNGONon Government OrganisationCAGRCompounded Annual Growth RateO&MOperation and MaintenanceCDSCurrent Daily StatusOFCOptical Fibre CableCOECentre of ExcellencePCPIREDLEssential Drug ListPetro Chemical and PetroleumInvestment RegionFDFiscal DeficitPHCPrimary Health CentreFRBMFiscal Responsibility and BudgetManagement ActPPPPublic Private PartnershipR&DResearch and DevelopmentFYFinancial Year (April to March)RDRevenue DeficitGDPGross Domestic ProductRERevised EstimatesGSDPGross State Domestic ProductSEZSpecial Economic ZonehaHectareSIDCOHDIHuman Development IndexSmall Industries DevelopmentCorporationICTInformation and CommunicationTechnologySIPCOTState Industries Promotion Corporationof Tamil NaduIFCInternational Finance CorporationSMESmall and Medium EnterprisesIMRInfant Mortality RateTEUTwenty Foot Equivalent UnitIPRIntellectual Property RightsUMIUpper Middle IncomeITInformation TechnologyUnder 5 MRUnder five years Mortality RateITESInformation Technology EnabledServicesUNESCOUnited Nations Educational, Scientificand Cultural OrganisationKbpsKilo bytes per secondUNFCCCUnited Nations Framework Conventionon Climate ChangeKmKilometreUS United States DollarLNGLiquified Natural GasVision 2023MbpsMega bytes per secondA Vision for the State of Tamil Nadu tillthe year 20238Vision Tamil Nadu 2023: Strategic Plan for Infrastructure Development in Tamil Nadu

1. Executive SummaryThe vision forTamil Nadu for2023 is to becomeIndia’s mostprosperous andprogressive statewith no poverty,and where itspeople enjoy all thebasic services of amodern society andlive in harmoniousengagement withthe environmentand with the rest ofthe world.Vision 2023 Tamil Nadu (“Vision 2023”) sets the plan for infrastructuredevelopment for the state to reach the desired outcomes by 2023.The three outcomes of Vision 2023 are:(1) The per capita income of Tamil Nadu’s residents will reachUS 10,0001 per annum (at 2010 prices) – the present medianincome of Upper Middle Income countries - by 2023,(2) Tamil Nadu will attain a high standard of social development,with the Human Development Index of the state matching thoseof developed countries by 2023, and(3) Tamil Nadu would provide to its residents, high qualityinfrastructure all over the state comparable with the best in theworld.Crucial to achieving Vision 2023 is identifying the infrastructurerequirements2 of Tamil Nadu and the strategies to develop the requiredfacilities. This Vision document addresses the inter-play amongstthree key components of development, namely (a) What should bethe long term growth objectives of Tamil Nadu (“The Outcomes”)?; (b)What are the inputs required in terms of infrastructure, investments,and policies?; and (c) What should be the targeted output mix in termsof economic income, sectoral composition and pace of growth? Howshould the benefits be distributed in society? What should be thebalance between development and environment?Key facets of Vision 2023 include Tamil Nadu’s enhanced economicdynamism, best in class human development indicators, a welldeveloped infrastructure that provides universal access to basicservices, an investment climate that compares with the best in Asia,and the evolution into India’s foremost knowledge and innovationhub.11 US Rs. 452The list sectors covered as part of infrastructure are enclosed in Appendix 1. The list catalogues the sectors identified by the Government of Tamil Nadu askey to achieving the VisionStrategic Plan for Infrastructure Development in Tamil Nadu :Vision Tamil Nadu 20239

Box 1: Ten Vision ThemesVision 2023 Tamil Nadu identifies ten themes for the state as follows:1.Tamil Nadu will be amongst India’s most economically prosperous states by 2023, achieving a six-fold growthin per capita income (in real terms) over the next 11 years to be on par with the Upper Middle Income3countries globally.2.Tamil Nadu will exhibit a highly inclusive growth pattern – it will largely be a poverty free state withopportunities for gainful and productive employment for all those who seek it, and will provide care for thedisadvantaged, vulnerable and the destitute in the state.3.Tamil Nadu will be India’s leading state in social development and will have the highest Human DevelopmentIndex (HDI) amongst all Indian states.4.Tamil Nadu will provide the best infrastructure services in India in terms of universal access to Housing,Water & Sanitation, Energy, Transportation, Irrigation, Connectivity, Healthcare, and Education.5.Tamil Nadu will be one of the top three preferred investment destinations in Asia and the most preferred inIndia with a reputation for efficiency and competitiveness.6.Tamil Nadu will be known as the innovation hub and knowledge capital of India, on the strength of worldclass institutions in various fields and the best human talent.7.Tamil Nadu will ensure Peace, Security and Prosperity for all citizens and business, enabling free movementand exchange of ideas, people and trade with other Indian states and rest of the world.8.Tamil Nadu will preserve and care for its ecology and heritage.9.Tamil Nadu will actively address the causes of vulnerability of the state and its people due to uncertaintiesarising from natural causes, economic downturns, and other man-made reasons and mitigate the adverseeffects.10. Tamil Nadu will nurture a culture of responsive and transparent Governance that ensures progress, security,and equal opportunity to all stakeholders.Any visioning exercise has three essential definingpoints – the starting position, the targeted outcomes,and the trajectory to be traversed. Today, Tamil Naduis a mid-sized state in the Indian union, with a goodstanding on many economic and social parameters.It scores amongst the top three states on manydimensions and does well on most others includinginfrastructure provision. The sweep of Vision 2023 isbold, and seeks to be an aspirational statement for thepeople and Government of Tamil Nadu to catapult thestate into the league of developed regions of the worldand to the top of the league tables of Indian states.ever been in history, and it is likely to remain so in thefuture. Therefore, any visioning exercise has to contendwith the uncertainties that will affect us in the future.Accordingly, contingency plans and alternatives haveto be thought through and that calls for a responsiveand capable government at the helm of the state at alltimes. Vision 2023 accordingly, addresses the differentialrequirements of various stakeholders in the state witha view to enabling high rates of growth and economicdevelopment that is highly inclusive and sensitive topotential downsides by conferring resilience to thestate’s economic and social fabric.The world has become more complex, volatile andunpredictable in the past few decades than it has310Refer to Appendix 2 for a list of Upper Middle Income countriesVision Tamil Nadu 2023: Strategic Plan for Infrastructure Development in Tamil Nadu

A. The Ten Themes of Vision 2023Theme 1:Economic prosperityTamil Nadu will increase its per capita income (atcurrent prices) by 6 times from Rs. 73,278 (US 1628)4 in 2010-11 to Rs. 4,50,000 (US 10,000) in2023, in line with per capita income of Upper MiddleIncome (UMI) countries. Over the next 11 years,Tamil Nadu, given its factor endowments and thecombination of strengths and opportunities, willaim to grow its GSDP at 11% or more per annum- about 20% more than the expected growth rateof India’s GDP over the same period. Given theexpected increase in population of 15% over thenext 11 years, the increase in per capita incomewould amount to 6 times over this period. Severalcountries in Asia (in particular, Thailand, Malaysiaand China) have grown at around 7% to 10% perannum for more than 20 years during the 1980sand later. The fast growing states of India, namelyMaharashtra and Gujarat, have grown at doubledigit rates over the past 10 years. Considering theaspiration to increase real incomes by six timesand the fact that several countries in Asia and afew states in India have consistently grown at highrates, the aspiration for Tamil Nadu is to grow itseconomy at over 11% per annum (in real terms)over the next 11 years and become a prosperousstate.Economic prosperityTamil Nadu will be amongstIndia’s most economicallyprosperous states by 20234Source: CSO Estimates, Base year 2004-05, US conversion rate - Rs. 45 per US )Strategic Plan for Infrastructure Development in Tamil Nadu :Vision Tamil Nadu 202311

Theme 2: Inclusive growthAlong with a high rate of economic growth, Vision2023 also seeks to simultaneously reduce inequality ofincomes across the state. Any growth that only catersto the aspirations of the upper crust and leaves behindsome sections of society is not only morally wrongbut practically unsustainable. Enabling widespreadaccess to physical and social infrastructure servicesenhances equitable growth, and this lies at the heartof Tamil Nadu’s growth strategy. Tamil Nadu Vision2023 places substantial emphasis on inclusive growthby channelling considerable resources to the lowestincome groups and ensuring that Tamil Nadu becomespoverty free. Being poverty free means no person inthe state is deprived of any basic needs such as food,clothing and shelter and any resident of Tamil Nadu,who seeks employment, will be able to find gainfuland productive employment commensurate to his/hercapabilities. To those sections of society who are tooold, helpless and destitute, the state will provide thoughits social security net, the necessary helping hand interms of income support, food, shelter and healthcareso that there is no fundamental deprivation at any levelin the state. Tamil Nadu Vision 2023 resolves that by 2023nobody in Tamil Nadu will be left behind.Inclusive growthTamil Nadu will exhibit a highlyinclusive growth pattern - it willlargely be a poverty free statewith opportunities for gainfuland productive employmentfor all those who seek it,and will provide care for thedisadvantaged, vulnerable andthe destitute in the state.12Vision Tamil Nadu 2023: Strategic Plan for Infrastructure Development in Tamil Nadu

Theme 3: Health for allAt present, Tamil Nadu scores reasonably wellon social indicators vis-a-vis most states of India.This can be seen particularly in the case of HumanDevelopment Indicators, in which Tamil Nadu hasmade considerable further progress during the pastdecade. Vision 2023 seeks an ambitious goal for keyparameters such as, crude birth and death rates,MMR, IMR and Under 5MR, where, the performanceof the state will be ranked as the best in the country.Essentially, Vision 2023 envisages Tamil Nadu tobecome not only the numero uno State in India in termsof social indicators, but also reach the levels attainedby developed countries in human development byensuring universal access to health facilities.Health for allTamil Nadu will be India’s leadingstate on social development andwill have the highest HumanDevelopmentIndex(HDI)amongst all Indian states.Strategic Plan for Infrastructure Development in Tamil Nadu :Vision Tamil Nadu 202313

Theme 4:World class infrastructureThe heart of Vision 2023 is provision of worldclass infrastructure to all the residents of TamilNadu irrespective of their economic status.The accent on infrastructure in Vision 2023 isnecessitated on two counts – (a) Infrastructuredevelopment is investment intensive and in itsown right generates significant employmentopportunities and economic growth; (b) Moreimportantly, infrastructure development createshuge positive externalities in the economyby providing a fillip to economic and socialdevelopment

5. Tamil Nadu will be one of the top three preferred investment destinations in Asia and the most preferred in India with a reputation for efficiency and competitiveness. 6. Tamil Nadu will be known as the innovation hub and knowledge capital of India, on the strength of world class ins

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