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Tamil Nadu Budget - Progressive and growth oriented : CII Print E-mail
Written by Vijay   
Tuesday, 25 March 2008
Announcement of new SEZs would spur exports and employment generation

Chennai: Mr Gopal Srinivasan, Chairman - CII Tamil Nadu State Council today welcomed the Tamil Nadu Budget for 2008-2009 as progressive and growth oriented.  He said that announcement on setting up new SEZs in backward districts, development of Tier II towns, increased allocation for agriculture, health, education, transport and power sectors was a move in the right direction, which would enhance the competitiveness and ensure inclusive growth.

Mr Srinivasan welcomed the announcement in setting up of four new Special Economic Zones (SEZs) such as; Transport Engineering Goods SEZ in Gangaikondan; Automobile and Auto spare parts SEZ in Cheyyar; Engineering goods SEZ in Perunthurai and Leather Sector SEZ in Ranipet, which would ensure equitable growth and bring people in the backward areas into the main stream.  These measures by the Government of Tamil Nadu are in line with CII recommendations for promoting inclusive growth.

CII also lauded the Government of Tamil Nadu for its plan to set up a new Information Technology Park at Vellore by ELCOT in partnership with the private sector. The E Governance initiatives as proposed in the budget would ensure transparency and efficiency in Govt departments.

The emphasis on the agriculture sector in the budget has been reflected in the proposal to disburse new crop loans to the tune of Rs 1,500 crore in 2008-09.  New initiatives such as Precision farming, which would benefit farmers in realising enhanced agricultural productivity is in line with CII recommendation in making the agricultural sector more vibrant.  The Cold Storage facilities proposed for all 22 Uzhavar Sandhais in the budget would benefit farmers in reducing wastage, maintain quality and at the same time help them to access large food retail market.

The Subsidy of 25% as outlined in the budget for farmers in procuring agricultural machinery would encourage farmers to shift towards modern cultivation practices, thereby achieving productivity.

CII urges the Government of Tamil Nadu to quickly commission the new power projects as outlined in the budget such as 600 MW each in North Chennai and Mettur Thermal Power Plants and the 1600 MW Udangudi power plant to manage the power shortage in the State. Mr Srinivasan said that these are in line with CII recommendations on the need to augment power generation in the State to meet future demands at a recent meeting that CII had with the Electricity Minister.

Mr Srinivasan appreciated the budget for having looked at the school and higher education as important areas of development. He specified that Upgradation of middle & higher schools to the next level of standards and augmentation of the existing & sanctioning of new engineering colleges in Tier III towns is also in line with the CII recommendations and is a very significant step towards envisioned growth pattern.

Mr Srinivasan said that the establishment of two new medical colleges in Sivaganga and Perambalur and Upgradation of government hospitals are breakthrough initiative by the Government of Tamil Nadu towards disseminating and strengthening health care network across the state. CII is happy to note that Government has acted on their recommendations to provide improved and inclusive medical care.

Mr Srinivasan further lauded the Government of Tamil Nadu for its announcement on taxation front by exempting tax on rubberized textile fabrics, soya oil, turmeric powder, chilly powder and Jaggery from Interstate sale which will give relief to the manufactures and the common man.

However, Mr Srinivasan felt that the Government could have considered the setting up of State Manufacturing Competitiveness Council, which was one of the key CII recommendations, to enhance the competitiveness of the manufacturing sector in the State.  The industry also expected an announcement in the budget on single window for environment clearance for new industries, which has not been addressed.

CII is of the firm belief that Government of Tamil Nadu should consider the establishment of special parks for aviation and Film City as mentioned in its recommendation. CII has been advocating the conversion of Chennai Corporation and its surroundings into a well planned and defined Greater Chennai Urban Region (of MAP Marrakkanm, Arokkanam & Pulicat) idea to re-invent the Capital City.

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