$1 trillion economy: TN to appoint consultant to prepare action plan

CHENNAI: The Tamil Nadu Infrastructure Development Board (TNIDB) has invited RFP (Request for Proposal) for the selection of a consultant to set up the Project Management Unit for assisting in the preparation of action plans for the $1 trillion economy.

Through the RFP, TNIDB, a nodal agency set up for infrastructure development in the state and which has prepared a road map for the state for achieving $1 trillion economy by 2030, has proposed to engage a reputed consultant which would set up a “Project Management Unit” in the office of TNIDB to assist in the preparation of action plans. Submission of bids, which opened on Monday, would close for the RFP on March 21. The technical proposal will be opened on March 24.

The consultant would act as a programme coordinator and work closely with departments/agencies that would identify implementable short, medium, and long-term interventions/projects to achieve the $1 trillion economy.

The consultancy would be entrusted with the task of extending requisite professional expertise to collate, review, analyse, and appraise the action plans prepared by the departments/agencies, besides preparing a comprehensive strategic action plan for identified interventions.

The consultant would also liaise with and support TNIDB in its interactions with the departments/government agencies and state-owned entities to improve the quality of its project proposals and overall action plans.

The consultant would be required to establish a strong team of specialists capable of supporting the state government to achieve the objectives.

The team must consist of a programme director/team leader with a master’s degree in engineering/ business administration from a reputed and recognised university within or outside the country, with a minimum of 12 years of professional experience.

The team must also comprise an infrastructure expert, industrial sector expert, food processing/MSME expert and social services/tertiary sector specialist.

The RFP would only be applicable for consultants empanelled with Deloitte Touche Tohmatsu India LLP, CRISIL Limited, Ernst & Young LLP, Mercados Energy Markets India Pvt Ltd, A T Kearney Consulting (India) Pvt Ltd, KPMG Advisory Services Pvt Ltd and mByom Consulting and Management Services LLP.

Detailed scope of work of consultant

Assist the departments/agencies in conceptualising and preparing a pipeline of projects

Assist in identifying new projects and initiatives as per the recommended interventions in discussions with departments/agencies

Analyse and recommend strategic opportunities and options for aligning with the $1 trillion vision

Plan and assist TNIDB in undertaking coordination meetings with key stakeholders

Support TNIDB/departments/agencies to participate in and conduct workshops/seminars

Road Map For Big Plan

The Road Map prepared by TNIDB has identified 11 growth vectors and seven enablers and recommended several interventions to be carried out by the TN government to achieve the vision of a $1 trillion economy

According to the abstract prepared by C Rangarajan, Chairman of Madras School of Economics and its director, Professor K R Shanmugam, in 2022-23, the projected nominal GSDP of Tamil Nadu is Rs 24.85 trillion ($0.32 trillion)

Assuming a fixed exchange rate of Rs 80.73 (Rs 87.32 on Monday) per $ in September 2022, the derived nominal growth required to achieve the target would be 15.9%

TN economy needs to grow at a real rate of 10% per annum for eight consecutive years from 2023-24 to 2030-31 to reach the $1 trillion target

Since Tamil Nadu had already registered an annual real growth of 10.3% from 2005-06 to 2011-12, the state has the potential to achieve the required growth rate

With the optimistic scenario of 15% nominal growth, the target is expected to be reached in 2032-33. With a 14% rate (as in medium-term fiscal plan), it would be achieved in 2033-34

With a generally accepted level of 13% (8% real rate + 5% inflation), the target would be reached in 2034-35. Therefore, reaching the target in 2030 is ruled out

Under the scenario of 9% real growth to achieve the target by 2033-34, the per capita income of TN in the terminal year would be $13,400 – a share higher than the $13,205 per capita income required to classify as a developed country (as per World Bank report)

The experts also recommended the restructuring and strengthening of TIIC to expand lending to industries by infusing capital of Rs 1,000 crores over three years

Developing integrated townships with social infrastructure in the growth centres to provide a big advantage for the state in attracting investments. This could be integrated with the Smart City Mission

Develop industrial parks of about 2,000 to 2,500 acres with a single window clearance system