Sunday, Mar 23, 2003
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Tamil Nadu
By Our Staff Reporter
The proposal to establish a separate mission for accelerated development of the textile industry in partnership with industry groups will provide a fillip to rapid industrialisation, Vijay Venkataswamy, deputy chairman, said here yesterday. The setting up of a textile industrial institute, in association with the SIMA, would make workers more productive and efficient. The textile industry welcomed the withdrawal of an additional sales tax, a resale tax and an infrastructure recharge, even while the Finance Minister announced introduction of a State Value-Added Tax regime from 2003-2004. However, in this process, the Government decided to correct the rates for certain items, especially petroleum products. Consequently, the cost of petroleum products could go up marginally, and this, in turn, would hit the spinning industry, as the power cost would go up. The tax on captive consumption was a retrograde step, said Mr. Venkataswamy. For, several mills had switched to captive consumption to improve efficiency and be more cost-effective.
Structural constraints addressed
The Southern India Engineering Manufacturers' Association has welcomed the budget proposal to address "structural constraints" which are "restricting the growth of the secondary sector mainly, manufacturing, electricity and construction industries". The president, G. Rajendran, said the provision of Rs. 2 crores for technology upgradation and modernisation for small and medium enterprises (SMEs) was welcomed. Hence, more funds should be allotted in their "robust growth". The proposal to establish new sub-stations and enhance transformer capacities showed the Government's efforts at supplying quality energy for all-round development of urban areas. However, the association was disappointed at retention of the entry tax on stainless steel sheets and rods. Consequently, motors and pumpsets manufactured in the State would lose their competitive edge.
Plantation industry disappointed
The Planters' Association of Tamil Nadu has expressed disappointment at the ``lack of consideration given to the crisis'' faced by the plantation industry, particularly Tea, in the budget. According to the chairman, D. Hegde, plantations play a pre-eminent role in the State's economy, particularly in the hilly regions. Any closure of plantations will render thousands of workers unemployed. He said it would be better to prevent closure rather than devising revival measures after closure of units. The industry was looking forward to a ``Plantation Mission'' as a survival package, lest this labour-intensive industry should become ``terminally sick''. Increasing motor vehicles tax, tax on captive generation and consumption of electricity will add to the cost of production of plantation products.
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