Ahead of the Global Investors Meet 2019, a slew of initiatives is being proposed by the Tamil Nadu government to woo investors. The initiatives include a new policy on start up and innovation, Aerospace and Defence industries; strengthening power transmission infrastructure; restructuring programme for transport corporations and procurement of electric buses for major metros.

In his customary address to mark opening of the State Assembly this season, Governor Banwarilal Purohit said start up and innovation policy will improve the start up environment. Start up entrepreneurs are being promoted under New Entrepreneur-cum-Enterprise Development Scheme.

State government will soon release the Tamil Nadu Aerospace and Defence Industrial policy. The establishment of industrial hubs for defence products in Chennai – Vellore – Salem – Hosur - Coimbatore - Tiruchirapalli corridor will improve the prospects of Tamil Nadu as a major defence manufacturing force. He urged the Centre to expedite implementation of the Defence industrial production corridor project.

“This government is embarking on a comprehensive restructuring programme for transport corporations with the support of German bilateral financing agency KfW to replace ageing fleet with fuel efficient BS-VI buses. The government will also procure electric buses to be run in Chennai, Coimbatore and Madurai,” he said.

His speech was boycotted by the opposition parties led by the DMK for State government’s failure in getting sufficient funds from the Centre to carry out relief and rehabilitation work in cyclone Gaja-affected areas and also continuance of health minister C Vijaya Baskar, who is facing a CBI inquiry in the ‘gutka’ case, in the Cabinet.

Finance

Tamil Nadu, the Governor said, has continued to be a fiscally prudent State despite several financial challenges. However, the revenue deficit has been on the rise in recent years due to the devolution formulae evolved by the 14th Finance Commission, and has adversely affected State finances.

Implementation of Ujwal Discom Assurance Yojana and 7th Pay Commission recommendations has also widened the revenue deficit. The delay in release of Integrated Goods and Services Tax (IGST) and Goods and Services Tax (GST) compensation due to the State has accentuated this problem. “I earnestly hope that the 15th Finance Commission will uphold the principles of equity and efficiency and will give a fair deal in financial devolution to the State of Tamil Nadu,” he added.

The Centre is yet to make IGST settlement of ₹5,454 crore relating to 2017-18 and short payments on GST compensation of ₹455 crore for 2017-18 and ₹1,305 crore for the period April to September 2018. This delay is adversely affecting the State finances. “I urge the Centre to settle these dues at the earliest and ensure prompt release of such dues in future,” he said.

Power

On the power sector, Purohit said the government is implementing thermal and hydro-electric projects of 17,100 MW at a total estimated cost of ₹1.27 lakh crore. Tamil Nadu continues to top the States producing renewable energy, with an installed capacity of 11,716 MW.

The transmission infrastructure throughout the State is being strengthened with assistance from Japan International Co-operation Agency, Asian Development Bank, KfW and National Clean Energy Fund at a cost of ₹9,178 crore. “A robust power sector has become the biggest strength of the State for attracting new investments,” he said.

Chennai Metro

The first phase of Chennai Metro Rail has already commenced operations and is expected to be fully commissioned by end of this month. The Phase-I extension from Washermenpet to Wimco Nagar at an estimated cost of ₹3,770 crore will be ready for inauguration by June 2020, he said.

The Chennai Unified Metropolitan Transport Authority Act and its relevant rules will be notified on January 16 to make the integrated functioning of multi-modal transportation system a reality, he said.

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