The Hindu Business Line : Kerala memorandum to Centre lists steps for fiscal revival

The memorandum seeks the Union Government's support for improving the overall financial health of the State and also has a list of suggestions on specific projects to be included in the forthcoming Union Budget. It also contains proposals for inclusion in the Railway Budget and suggestions for the Exim Policy 2004-05.

Among the measures suggested for improving the overall financial health of the State is a request that Central assistance to the State Plan be in the form of grants from the coming year. The memorandum also urges the Centre to write off past dues from the State Government.

A demand that Kerala be allowed to present projects to donors and the fiscal sustainability of each project be evaluated on merit is also made in the memorandum.

Final clearance for the Vallarpadam International Container Terminal project, establishment of an LNG terminal in Kochi and starting a ship repair facility in Kochi are some of the other demands put forward for inclusion in the Union Budget.

The memorandum also seeks increased Central support for a range of projects in the agricultural sector, including the formulation of a special project for the rehabilitation of perennial crops, widening the scope of the National Agricultural Insurance Scheme, establishment of an agro-export zone for medicinal plants, elimination of additional excise duty on tea and so on.

Several projects for employment generation, poverty reduction, social justice and local-level development also find a place in the memorandum, as do projects to support Kerala's traditional industries. Initiatives to improve the State's infrastructure, including the demand to extend the Golden Quadrilateral project to Kerala, also figure in the document. The State has also put forward a list of projects intended to improve and support the research and educational institutions located here.

The memorandum includes a list of demands for inclusion in the forthcoming Railway Budget. Extra funds for completion of the line doubling projects in the State, steps to speed up the construction of sanctioned railway lines in Kerala and several railway safety initiatives are among the measures that have been demanded.

The State has also submitted several suggestions for inclusion in the Exim Policy 2004-05. They include enhancement of the tariff on edible oil imports and restrictions on the import of rubber. It has also several demands with respect to crops such as pepper, tea, coffee, cardamom and cashew. Seafood, coir and tourism are some other sectors included in the memorandum.