Tamil Nadu gears up to improve infrastructure; plans to spend Rs.13,000 Crores
The Tamil Nadu government is giving a lot of thought to the infrastructure development of the state to promote industries. The state government presented a no new-tax budget for 2014-2015. This move to promote industries amidst a “failing macro environment” is being taken to support the economic growth in the state. The government has decided to spend about Rs.13,000 crore in the next fiscal year to widen state highways, improve power infrastructure, and introduce new modes of urban transport like the Monorail.
Also, in the pipeline are the plans to set up a green energy corridor with an outlay of Rs.1,593 crore. To improve the state’s ability to harness wind power, Tamil Nadu Transmission Corp. has come up with a proposal for the evacuation of wind power with financial assistance from a German funding agency. Also, as part of the financial restructuring plan for Tamil Nadu Generation and Distribution Corp. Ltd, the government will take up liabilities worth Rs.2,000 crore in 2014-15 in line with Centre’s rehabilitation plan.
In the words of Siva Subramanian, associate director, public finance at India Ratings and Research Pvt. Ltd (an arm of the global credit assessor Fitch), “Improvement in power availability and in the overall economic sentiment will play a crucial role in economic growth of the state.”
The state’s finance minister Mr.O. Panneerselvam said that the government will spend Rs.100 crore to host a global investors meet in Chennai in October 2014. Government plans to develop around 53,000 acres of land all over the state with a special focus on the southern districts.
Going a step further, to promote entrepreneurs in the state, 10% of space will be made available by the government as “warehouses for start-ups” in all information technology parks developed by it. Finance Minister was further quoted as saying, “The failure of the Government of India to stimulate growth and improve the failing macro-economic environment continues to adversely impact the investments and economic growth consecutively for the second year.” The Government, while sharing some numbers said that from May 2011, memorandums of understanding (MoUs) for investments worth Rs.26,625 crore have been signed, of which Rs.10,660 crore has already been realized, providing 10,022 jobs.
Source: Livemint
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