The Southern India Chamber of Commerce and Industry has welcomed the Tamil Nadu Government's decision to hike the prices of milk, electricity and public transport fare to address the State's debt burden.

Reacting to the Chief Minister, Ms J. Jayalalithaa's announcement on Thursday, the industry body said her announcement that the price hikes are inevitable to carry the reforms process forward in the public sector units is to be applauded. The marginal hike in milk prices for the consumer comes with a hike in procurement prices that benefit over 50 lakh farmers.

The increase in bus fares of public sector undertakings, which were on the verge of going dysfunctional with losses of Rs 2,200 crore and growing costs of fuel and spares, will benefit public transport system in the long run. This will help the transport corporations strengthen their fleet and modernise services.

Similarly, the proposed hike in power tariffs will bring in much needed infusion of funds for the electricity utility and help it modernise and invest in infrastructure, it said.

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