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NT Bureau
Chennai, Mar 24:

        Industry chambers and corporates have lauded the slew of initiatives in the farm sector and other welfare measures that formed the bulk of the Tamilnadu budget presented by the State Finance K Anbazhagan at the Assembly.

        The total waiver of cooperative loans to 22 lakh farmers would usher in a new life to them. A provision of Rs 1,626 crore towards cooperative institutions and allocation of Rs 1,360 crore for disbursement of crop loans at a reduced interest rate of 5 per cent would improve agricultural production in the years to come, said G Subramanian, president, Hindustan Chamber of Commerce.

        A series of proactive steps and development schemes in the field of education, especially the proposal for two medical colleges, irrigation, drinking water in rural areas, sewerage system, ITI training to unemployed youth, waiver of tuition fees for students in Government Arts colleges, among others, would definitely benefit the weaker sections of the society, he noted.

        Further, the State government's plans for speedy implementation of Metro Rail project would result in a permanent solution for traffic congestion in the city. Similarly, the decision of the government to share the expenditure on MRTS (mass rapid transit system) in order to speed up the extension of the project up to St Thomas Mount from Velachery was in the right direction, he said.

        On the value-added tax (VAT), he thanked the Finance Minister for the proposed amendments that would permit traders with a turnover of up to Rs 50 lakh and were paying tax under the compounding system to avail tax exemption. 'The reduction in rates for many commodities to 2-4 per cent will provide tax relief to the deserving sectors,' he said.

        The Finance Minister has managed the whole exercise without imposing additional tax burden and introduced welfare schemes and suggestions to control the prices of essential commodities, the HCC president said.

        In a release, the Southern India Chamber of Commerce and Industry (SICCI) noted the levy of 4 per cent VAT on certain goods which were consumed or used by industries in the manufacturing of superior kerosene and molasses. 'SICCI hopes that VAT credit would be allowable so that industry in Tamilnadu would benefit and make the products competitive,' said S Ramanathan, president, SICCI.

        Also, the removal of sale of exempted product for computation of taxable turnover to levy a compounding tax would bring relief to traders, the chamber said. The rationalisation of duty to essential commodities from 12.5 to 4 per cent would benefit the traders and manufacturers.

        The establishment of a granite industry in Sivaganga and creation of an SEZ in Virudhunagar would promote growth in southern districts, the SICCI release added.

        'Removing the goods used by common people and farmers from the VAT net, extending concessional rate of 4 per cent on certain goods which are consumed or used by industries in manufacturing are a welcome measure,' said Baboolal P Rathore, president, Andhra Chamber of Commerce. Measures to improve opportunity for employment, infrastructure facility at airports, setting up of more SEZs and ITIs were all in the right direction that would further stimulate growth in the State, he said.

        The proposal of two shipyards to be established at Ennore Port area and Cuddalore for an investment of Rs 3,700 crore which would provide employment to 25,000 youth in these regions was noteworthy, said Tamil Chamber of Commerce.

        Tamilnadu Plastic Manufacturers' Association (TAPMA) thanked the government for reducing the the tax rate to 4 per cent on various plastic items used by common man. 'The tax reduction will lead to growth of plastic industry, generate more revenue and create employment. Also, the simplification of the lists related to industrial inputs of products is a radical and welcome step,' according to TAPMA.

        However, sounding a different note, A S Kannan, president, Tamilnadu Association of Cottage and Micro Enterprises (TACT), felt disappointed with the State Budget 2007. 'Next to agriculture, nearly 60 lakh jobs are being created at the micro industries which earns revenue to the State and Central governments, besides foreign exchange. But the budget did not deliver our expectations and considered the requests,' he said. He pleaded that at least in the post budget discussion, the Finance Minister would consider the request for an exclusive policy for micro industries in the State.