The Hindu : Impart growth momentum to agriculture

Online edition of India's National Newspaper
Thursday, Mar 20, 2003

Southern States

Southern States - Tamil Nadu

Impart growth momentum to agriculture

By R. Gopalakrishnan

CHENNAI March 19. The private sector should appreciate the priority given by the State Government to the primary sector (agriculture) as not only the growth engine of Tamil Nadu but also one which will trigger demand for products of industry, while the Government, on its part, looks for public-private partnership (PPP) in all sectors including infrastructure.

This was the message the Chief Minister, Jayalalithaa, sought to convey to industry leaders at the joint inaugural here today of a one-day Tamil Nadu Investment Meet and two-day Suminfra 2003 (Summit on Integrated Development of Infrastructure in the Southern Region) organised by the Confederation of Indian Industry-Southern Region and its Tamil Nadu Council. The Chief Minister, however, said the Government was looking for growth in the manufacturing sector "as the sure means of offsetting the revenue loss we suffer in the process (of introduction of value-added tax)". It was this sector which stood to benefit from the input tax credit and prevention of the escalation impact of taxes on prices under VAT.

Referring to the Government's endeavour in the primary sector, which is the "backbone of Tamil Nadu's economy", she called for new initiatives from the private sector in precision farming and contract management of farms "which must be linked to both domestic and external markets through agri-processing zones, stimulating floriculture and horticulture". The Government hoped to invest more than Rs. 2,000 crores from the Rural Infrastructure Development Fund (operated by the National Bank for Agriculture and Rural Development) during the Tenth Plan period. "I urge the private sector to join hands with the Government in this effort to impart a new growth momentum to the primary sector. As incomes grow in the primary sector, there will be a multiplier effect that will kick-start growth in the manufacturing and services sectors too".

The State Government was "internalising" the key requirements of second generation economic reforms and administrative reform identified by a World Bank expert, David Dololar. She sought private sector involvement in the PPP model in all these areas.

Ms. Jayalalithaa said a Common Return Form, reducing all 51 returns now filed by entrepreneurs to one Single Return, would soon be released. A master plan, on an outlay of Rs. 18,000 crores, for comprehensive infrastructure development in the Chennai metropolitan area, covering power distribution, traffic management, water supply and sewerage, had been finalised. This would necessarily mean the involvement of the private sector in a big way.

Ms. Jayalalithaa said that as one committed to "liberalisation, structural adjustment and competition", she had "stood up and prepared to be counted" by way of initiation of a wide range of reforms, including fiscal reforms. "I now throw down the gauntlet to you. It is for you to pick it up. You must respond with fervour to reveal your investment plans", she said, adding it was up to industry "respond aggressively with a hook for the six, on the pitch prepared by the Government, or duck into the bouncer and be felled".

The Chief Minister released a report on "Sustainable Infrastructure Development in the Southern Region - An Integrated Approach" and a report of the CII and IIM-Ahmedabad on case studies of "world-class successful companies" from Tamil Nadu.

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