Jayalalithaa completes two years in office as CM

CHENNAI: While political pundits agree that the AIADMK government has delivered on many fronts in the two years it has ruled the state, the biggest challenge it continues to face-the bleak power situation in Tamil Nadu-will determine how the citizens will judge J Jayalalithaa's performance as chief minister.

Jayalalithaa inherited the power crisis from the previous Dravida Munnetra Kazhagam government headed by her bete noir M Karunanidhi, which did not add any significant generating capacity in its five-year tenure. Currently, Tamil Nadu faces a four gigawatt deficit and its power distribution utility has an accumulated loss of 40,000 crore.

Numerous industries, especially those situated outside Chennai, bore the brunt of this acute shortage in generation and many of them were forced to shut shop as running a business in the state had become unviable.

"From where she started, the power situation has improved, but it remains one of her biggest challenges along with reforms in education," said Bernard D'sami, political commentator. "She has now set a deadline of June 2013 to set right power."

Jayalalithaa has not shirked away from taking unpopular decisions like increasing bus fares and prices of government-owned Aavin milk to tide over the fiscal crisis the state faced when she came to power. But in the initial days, it also made her unpopular, especially after she increased power tariffs by nearly 37%, the first time electricity rates were being raised in eight years.

However, her subsequent populist moves have more than assuaged the citizens of Tamil Nadu. Laptops, susidised canteens than serve idlis at one rupee and free grains are some of the measures that have been appreciated by the poor. One of her biggest victories was when she managed to get the Cauvery water settlement notified.

These measures have had their impact on the state exchequer. Tamil Nadu spend Rs 29,726 crore on subsidies and transfers in 2012, which is about 5.11% of the state's gross domestic product. In 2013, the subsidy bill is estimated to rise to about Rs 36,190 crore, according to India Ratings.

"Improving the governance situation and solving the power crisis will be the most important tasks ahead of her," said MR Venkatesh, a political analyst.