The Hindu Business Line : More SEZs to be set up in industrially backward areas

New proposals
Govt to cut interest rate on co-op farms loans to 4 per cent
Urban roads to be upgraded to international standards
TN Cements Corp plant to be modernised, capacity doubled

Our Bureau

Chennai, March 20 The Government will take steps to set up more special economic zones in industrially backward areas to spur economic development across the State, said the Finance Minister, Mr K. Anbazhagan.

Presenting the budget for 2008-09, he said some of the new ones planned include a 255-acre transport engineering goods SEZ in Gangaikondan in Tirunelveli district, a 255-acre automobile and auto spare parts SEZ at Cheyyar in Tiruvannamalai district, a 263-acre engineering goods SEZ at Perunthurai in Erode district and a 260-acre leather SEZ at Ranipet in Vellore.

Tamil Nadu has over 32 approved SEZs and the Centre has approved 29 of them. In the last two years, the Government has entered into 13 agreements with the private sector totalling investments of over Rs 17,583 crore, generating over 1.41 lakh jobs directly and indirectly.

To increase the cement output in the public sector, the Tamil Nadu Cements Corporation plant would be modernised and capacity doubled at a cost of Rs 82 crore.

Information Technology

The State Government would come out with a new information technology policy to sustain the growth of the sector. Software exports have jumped 46 per cent to touch Rs 21,000 crore last year compared with Rs 14,400 crore in 2005-06.

Urban Roads

Urban roads in the State would be upgraded to international standards through a new scheme, Tamil Nadu Urban Roads Development Project, to be implemented in the coming year. The estimated cost is about Rs 1,000 crore through multiple sources, including Rs 147 crore of arrears devolution from the State Government, a portion of assigned revenue to local bodies on account of surcharge on stamp duty and bonds, which will be issued by the Tamil Nadu Urban Road Infrastructure Fund.

In the first phase, Chennai, Tiruchi, Tirunelveli, Tirupur and Madurai would be covered. Also, municipalities like Alandur, Mayiladuthurai, Thanjavur, Kumbakonam, Karur and Valsaravakkam, where underground sewerage has been provided, would also be covered.

In Chennai, a 120 km circular corridor of 4- and 6-lane roads will be constructed over the banks of watercourses such as the Adyar Buckingham Canal, Cooum and the Mambalam Canal. These roads will be connected to the Chennai bypass. The total cost of this project is estimated at about Rs 2,300 crore.

Electricity

In the coming financial year the power transmission and distribution infrastructure will be improved at a cost of Rs 1,720 crore along with installation of over 90 new electrical sub-stations.

Agriculture

The Government has decided to bring down the interest rate on crop loans disbursed through the co-operative to 4 per cent from the prevailing rate of 5 per cent. During 2008-09, over Rs 1,500 crore of new crop loans would be disbursed.

Food production is expected to touch 100 lakh tonnes in 2007-08.

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