writingonblog uncensored: Tamil Nadu's elderly population to nearly double b...

writingonblog uncensored: Tamil Nadu's elderly population to nearly double b...: Expert suggests  strengthening revenues, improve expenditure efficiency C Shivakumar @ CHENNAI: Tamil Nadu's rapid demographic transiti...

Tamil Nadu's elderly population to nearly double by 2031, raising fiscal concerns

Expert suggests strengthening revenues, improve expenditure efficiency

C Shivakumar @ CHENNAI:
Tamil Nadu's rapid demographic transition is emerging as one of the state's biggest long-term fiscal challenges, with the share of elderly citizens projected to nearly double over the next decade even as public finances remain under pressure, according to a government white paper released by the state.

The population aged 60 and above is expected to rise from 10.6 per cent in 2011 to 18.2 per cent by 2031 — a 71.7 percent increase, the steepest among comparable large states. Kerala, long regarded as India's demographic frontrunner, is projected to record a slower increase of 64.6 per cent, while the national average stands at 56 per cent.

The figures point to what economists describe as a "scissors effect". As the working-age population begins to shrink, growth in tax revenues slows. The two trends move in opposite directions, steadily widening the gap between revenue growth and expenditure commitments.

The white paper states that Tamil Nadu's challenge is, in many ways, the consequence of its own developmental success. Fertility rates fell faster than in most Indian states, life expectancy rose sharply, and the state enjoyed decades of economic gains from a large working-age population. Tamil Nadu's median age has now reached 34.25 years, nearly a decade higher than that of Uttar Pradesh.

The state's working-age population peaked at around 66.4 per cent in 2021 and is projected to decline to 63.6 per cent by 2036. Over the same period, the old-age dependency ratio — the number of elderly people for every 100 working-age adults — is expected to rise from 20.6 to 32.7, one of the sharpest increases among Indian states.

"Ageing is a cause for concern," said K Shanmugham, economist and former director of the Madras School of Economics. This would result in the state spending a lot of money on welfare measures for elderly and the funds need to be increased. He also highlighted the lack of updated data since the 2011 census.

"For decades, Tamil Nadu benefited from a demographic dividend, with a large and expanding workforce supporting economic growth, tax revenues and consumption," said former bureaucrat Chandra Kant Kamble. "As populations age, fiscal priorities inevitably shift. Pension obligations rise, healthcare spending increases, and governments must invest more in chronic disease management, geriatric care and long-term social support. At the same time, the growth of the working-age population slows, limiting the expansion of the tax base."

The white paper cites international experience, including that of Japan and Canada, to illustrate how healthcare and social security costs accelerate as populations age. What makes Tamil Nadu vulnerable is the speed of this demographic transition against a backdrop of already strained public finances.

While the white paper does not prescribe specific remedies, Kamble said the fiscal impact of ageing will emerge gradually, giving Tamil Nadu a limited opportunity to act before demographic pressures intensify. The state's economic dynamism, industrial strength and relatively robust revenue mobilisation provide a foundation for undertaking structural reforms from a position of strength.

He stressed that the challenge is not welfare spending itself, but ensuring that expanding commitments remain sustainable. As the elderly population grows, the government will need to strengthen revenues, improve expenditure efficiency and periodically assess the effectiveness of welfare programmes. Such measures, he said, can help bridge the gap between rising age-related spending and mounting debt obligations.

EOM

India's fast breeder reactor moves closer to feeding power into the grid

 

CHENNAI:
India's ambitious fast breeder nuclear programme has moved closer to producing electricity, with Atomic Energy Commission chairman and Department of Atomic Energy secretary Ajit Kumar Mohanty reviewing the final technical work needed before the 500 MW Prototype Fast Breeder Reactor (PFBR) at Kalpakkam is synchronised with the power grid.

The visit by Mohanty comes eleven weeks after the reactor achieved first criticality — the controlled start of a self-sustaining nuclear chain reaction — marking its transition from a decades-long construction project to the commissioning phase.

At the centre of the current effort is the overhaul of the plant's 500 MW turbine generator, a critical step before electricity generated by the reactor can be fed into the national grid. The work is being carried out by Bharat Heavy Electricals Ltd (BHEL), the original equipment manufacturer, whose engineering team briefed Mohanty during the review.

The turbine generator converts thermal energy produced by the reactor into electricity. In the PFBR, superheated steam generated by sodium-heated once-through steam generators drives a tandem-compound turbine comprising separate high-, intermediate- and low-pressure cylinders. Once commissioned, the reactor will generate 500 MW of electricity.

The ongoing low-power physics experiments, a series of tests conducted after first criticality to validate reactor behaviour before power is gradually increased was also reviewed.

The PFBR represents the part of India's second-stage nuclear programme, which seeks to use fast breeder technology to produce more fissile material than the reactor consumes. The approach is intended to multiply the country's limited uranium resources while laying the foundation for the eventual use of India's abundant thorium reserves under the three-stage nuclear strategy conceived by physicist Homi Bhabha.

Unlike conventional reactors, fast breeder reactors are designed not only to generate electricity but also to create additional nuclear fuel. The reactor's commissioning is being overseen by Bharatiya Nabhikiya Vidyut Nigam Ltd (BHAVINI), the state-owned company established to build and operate India's fast breeder reactors.

With the prototype entering its final commissioning stages, the government is already preparing to move beyond demonstration mode. Pre-project activities have begun for a twin-unit commercial fast breeder station adjacent to the existing Kalpakkam complex, while site identification and preliminary assessments are under way for a wider rollout of fast reactors across the country, according to a statement from Department of Atomic Energy.

Japanese Fastener Maker YKK Expands India Presence with $150m Chennai Facility

CHENNAI:
Japanese fastening products maker YKK Corporation is deepening its manufacturing footprint in India with plans to invest $150 million in a new production facility at Origins by Mahindra, Chennai, underscoring the growing appeal of Tamil Nadu as a hub for export-oriented industrial investments.

YKK India, the Indian subsidiary of the Japanese group, will establish its third manufacturing plant in the country on nearly 150,000 sq m within the integrated industrial cluster developed by Mahindra Industrial Park Chennai Ltd (MIPCL), a joint venture between Mahindra World City Developers Ltd and Sumitomo Corporation. The facility is expected to be completed by February 2028.

The investment adds to a growing roster of international manufacturers at Origins by Mahindra, Chennai, including Mitsubishi Electric, Yanmar and Omron, as global companies increasingly diversify supply chains and expand production capacities closer to key consumer markets.

YKK India manufactures fastening products for the apparel, textile and industrial sectors, serving both domestic and overseas customers. The new plant will incorporate the company's advanced manufacturing technologies and is expected to support rising demand from India while strengthening export capabilities, according to a statement by Origins by Mahindra, Chennai, an integrated industrial development of Mahindra Lifespace Developers Ltd.

writingonblog uncensored: Tamil Nadu faces Rs11,600 crore funding gap even b...

writingonblog uncensored: Tamil Nadu faces Rs11,600 crore funding gap even b...: C Shivakumar @ CHENNAI: Tamil Nadu faces a Rs11,600 crore funding gap even before accounting for a single new government promise. A white pa...

Tamil Nadu faces Rs11,600 crore funding gap even before accounting for a single new government promise

C Shivakumar @ CHENNAI:
Tamil Nadu faces a Rs11,600 crore funding gap even before accounting for a single new government promise. A white paper on the state's fiscal management lays out the arithmetic bluntly: the deficit cannot be fully funded even if every available borrowing window comes through.

The findings cast a long shadow over the ruling party's poll manifesto, raising hard questions about when — or whether — promised schemes can be rolled out

According to the White Paper released by Finance Minister Marie Wilson along with Finance Secretary M A Siddique, the State Government is committed to deliver on its promises, despite these challenges, as early as possible as the financial position permits.

The state's net borrowing ceiling for 2026-27 stands at Rs.1,14,981 crore — fixed by Centre at 3% of projected GSDP of Rs.38.3 lakh crore. On top of that, the Centre has offered Rs.7,000 crore under its capital investment assistance scheme and potentially Rs.11,000 crore tied to pension reform parity — contingent on Centre agreeing to treat Tamil Nadu's pension scheme on par with its own.

A further Rs.19,163 crore — the 0.5% of GSDP window for power sector reforms — hangs in limbo. The 16th Finance Commission's report is silent on whether this facility continues beyond 2025-26.

Even assuming all contingent approvals materialise, maximum borrowings reach Rs.1,52,144 crore. The estimated fiscal deficit exceeds that by Rs.11,600 crore.
That gap assumes 12% growth in the state's own tax revenues — itself an optimistic projection. An 8% growth scenario widens the hole by a further Rs.7,700 crore.

The harder truth: these numbers cover only existing committed expenditure — largely obligations created by the previous government. New schemes the ruling party has promised voters don't figure in the calculation at all.

The white paper's prescription is unsentimental: plug leakages in revenue collection, reduce procurement costs, and tighten expenditure. Capital spending could be cut by Rs.5,000 crore, though the document flags this as undesirable.

The state, under Article 293(3) of the Constitution, cannot borrow without Central government permission — a structural constraint that leaves Tamil Nadu with limited room to manoeuvre unilaterally.

Chennai Metro clears key construction milestone in Phase II expansion

 

CHENNAI:
Chennai Metro has crossed a major construction milestone in its Phase II expansion programme, completing the casting of all U-girders required for a crucial elevated stretch of Corridor 5, a move expected to accelerate work on the line in the coming months.

The last 19.5-metre-long U-girder for Adambakkam Metro Station was cast at the casting yard, taking the total number of U-girders produced for the corridor to 824. CMRL said this is one of the largest U-girder production works carried out for a Chennai Metro project.

Spread across 43 acres, the casting yard has been manufacturing thousands of concrete components required for the viaduct and stations. In all, the facility has produced 5,836 precast structures using about 120,000 cubic metres of concrete and nearly 300,000 tonnes of material.

The components include pier caps, pier arms, I-girders, T-girders and parapets that form the backbone of the elevated metro line. These structures are transported nearly 18 km from the yard to various construction locations along the corridor.

The project involved casting girders of varying sizes, including one measuring 33.3 metres and weighing 225 tonnes, among the largest used in metro construction in the country.

The milestone was marked in the presence of senior officials from CMRL, consultant AEON and contractor Larsen & Toubro, a release stated.