The Hindu Business Line : TN sets its sights on higher growth

"The seasonal conditions in 2004 have been better than in the last several years. This has led to the forecast of a higher growth in gross State domestic product this year," the Governor, Mr Surjit Singh Barnala, said in his address to the Assembly today.

He said that the primary sector, which was severely affected by drought in the past, was expected to grow at a rate of more than 16 per cent during 2004-05. It was estimated that the annual production of food grains during 2004-05 would surpass 90 lakh tonnes, including 75 lakh tonnes of rice. This was a substantial increase over the previous year's total grains production of 43.12 lakh tonnes, including 32.23 lakh tonnes of rice. "With better seasonal conditions this return to rural prosperity has brought great joy," he said.

Noting that the State had secured a record Plan outlay of Rs 9,100 crore for 2005-06, the Government said Tamil Nadu was back on the road of accelerated development and high growth, overcoming the fiscal and development crisis that enveloped the State when this Government assumed office.

Mr Barnala said this fiscal recovery had been made possible by impressive commercial taxes collection, which had recorded an 18 per cent growth this year. Better mobilisation of resources at existing rates had been given emphasis.

The Government would introduce a legislation to implement value added tax system from April 1. This was on the assurance that the compensation for the consequent revenue losses would be provided by the Government of India as per the agreed formula and the amendments to the Central Sales Tax Act to generate more revenue would be carried out.

The Governor expressed the hope that the Twelfth Finance Commission's recommendations would provide more resources to Tamil Nadu. The Third State Finance Commission had been constituted to go into the resources transfers to local bodies.

Mr Barnala said the Government hoped to commission a desalination project in Chennai in stages from March 2006. The Government intends to execute this project on a design, build, own, operate and transfer and bids were to be received by February 16.

The State Government had requested the Centre to locate the proposed bio-IT park in Chennai. The proposed knowledge industry township would be established soon and a six-lane expressway in Chennai's IT corridor would be built before the end of December.

With the textile trade opened up, the Government would establish a task force to enumerate the opportunities and set out an action programme, the Governor said.

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