TN budget allots INR1,000 crore for infra development | SupportBiz

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TN budget allots INR1,000 crore for infra development

 
CODISSIA welcomes the government's move to create dedicated industrial parks within cities. “..But where does the chief minister plan to begin?”

 

Tamil Nadu’s small and medium entrepreneur may not be pleased as punch with the Tamil Nadu State Budget 2012-13.

While the J Jayalalithaa government has made generous allocations to the agriculture, education and infrastructure sectors, more should have been done, in particular for the small and medium industries sector, argues The Coimbatore District Small Industries Association (CODISSIA)

Some five months ago, and after the J Jayalalithaa government took over, document processing fee for bank loans given to SMEs against mortgaged assets saw a five-fold hike, to INR30,000. “How can you levy the same fee for a one-lakh rupee loan and a one-crore rupee loan? But more importantly, how can one justify high fees when this is about giving loans to SMEs,” asks CODISSIA president Kandhaswami M. The higher fees should be repealed, he added.

Kandhaswami welcomed the chief minister’s move to create dedicated industrial parks within cities.

In his March 26 State Budget speech, Finance Minister O  Panneerselvam promised to develop industrial parks on some 20,000 acres of land with access to uninterrupted power supply. Industrial units in the state would like more clarity on how and where the government will acquire land. “It will have to be scattered, but where does the chief minister plan to begin?”

The unreliable power supply situation forces industrial units to rely on diesel generators. While industries can avail of a government subsidy when purchasing a second diesel generator, Kandhaswami feels the elimination of VAT on diesel purchases would help SMEs cut costs, especially during uncertain times like these.

Among other things, Jayalalithaa’s Budget proposes to strengthen the state’s wind turbine grid, to increase wind power generation.

INR1,000 crore will be spent to improve infrastructure,  including roads within Tamil Nadu. Coimbatore and Madurai will move to e-governance, which will help the small and medium entrepreneur because it eliminates his / her need to meet with those government officials who demand bribes.

Fertilizer purchases will no longer attract VAT.

A skills development programme will try and reach out to 70 lakh people.

Compulsory education for children in the six-to-fourteen age bracket.

 “And we are happy the chief minister did not introduce any new taxes,”  Kandhaswami added.