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Du Pont inaugurates plant; Maran says investment inevitable

Amidst stiff opposition from some political parties and environmental groups, the first unit of the Thapar-Du Pont Limited, a subsidiary of the United states-based Du Pont company which will manufacture industrial nylon, was commissioned at Gummidipoondi, 45 km from Madras today.

Tamil Nadu Chief Minister M Karunanidhi formally commissioned the unit in the presence of United States Commerce Secretary William Daley and Union Industries Minister Murasoli Maran at a colourful function.

The plant will produce industrial nylon 6,6 cord tyre cord in the first phase. The plant, which evoked protests from environmental groups, is the first site in the company's 12 global nylon manufacturing facilities to have "zero asbestos" and "zero CFCs" in construction and operation.

Karunanidhi was presented with the first roll of the nylon fabric from the plant.

Du Pont Managing Director V Sam Singh announced that the plant aimed to achieve sales to the tune of US 100 million by the year 2000. Du Pont enjoys a 30 per cent world market share in industrial nylon fabric.

Speaking on the occasion, Daley said the coming of Du Pont to India symbolised the country's endeavour to modernise its economic ability and marked the beginning of commercial cooperation in the years to come between the two countries.

Murasoli Maran felt that foreign investment in the wake of the economic reforms was inevitable not only for the country's economic development but also for solving chronic problems such as unemployment.

"Besides bringing in new technology, foreign investment also creates new jobs which our country needs badly," said Maran.

Urging the Tamil Nadu government to be more aggressive in attracting foreign investment, he said, "This is the message for Karunanidhi, and his team."

He said whichever political party was in power, including the Left parties, there was no doubt that they all need foreign investment, and added that many chief ministers had become globetrotters to attract foreign investments.

He said even if the Centre hesitated, the states should now act as chariots of the reforms. "Reforms are irreversible and we want reforms to continue. The pace for this will be set by the people," he stated.

Maran said the United Front government, in its one and a half year rule, had cleared foreign investment to the tune of three billion. During the last 17 months, the total foreign direct investment approved by the Centre was worth $21 billion. It had also approved Rs 750 billion by way of foreign exchange, 27 per cent of which was from the United States, he added.

Seventy five per cent of foreign investment was in priority sectors like automobiles and food processing. Only 11 per cent was in consumer sector.

The foreign direct investment in Tamil Nadu was 6.5 per cent. As many as 339 projects had been approved till November this year. "This was not because of me, but of the advantages that the state offers," he pointed out.

UNI