Mixed reaction to Union Budget 2015 from Southern industry bodies
By PTI | 28 Feb, 2015, 08.39PM IST

CHENNAI: Southern industry bodies today welcomed the proposals on setting up of AIIMS in Tamil Nadu and operationalisation of second unit Kudankulam Nuclear Power Station.

"The South India Chamber of Commerce and Industry Chamber welcomes the announcement for the creation of AIIMS in Tamil Nadu and the launch of the second unit of Kudankulam Nuclear Power Station in 2016. But, the budget has missed the opportunity to provide incentives for job .

"The Chamber feels that this budget is more of an incremental budget and a missed opportunity", he said.

Noting that the Corporatisation of ports was a good attempt to bring professionalism, Madras Chamber of Commerce, immediate Past President, T Shivaraman said, the higher allocation for infrastructure, introduction of tax free infra bonds were "welcome move".

"The increase in service tax to 14 per cent, though on expected lines, could be inflationery in short run", he said.

City-headquartered public sector Indian Bank, Chairman and Managing Director T M Bhasin said the provision of agriculture credit of Rs 8.50 lakh crore and allocation of Rs 95,000 crore for upgradation of rural infrastructure through NABARD are "welcome steps".

He said setting up of the MUDRA Bank for financing small and micro units with credit guarantee would "strengthen" the Micro, small and medium enterprises.


Industry welcomes proposal on GST – 1st March

Industries in the State have welcomed the budget announcements, especially the proposal to implement Goods and Services Tax from next year.

According to Ravi Sam, chairman, Confederation of Indian Industry – Tamil Nadu, there is a timeframe for implementation of Goods and Services Tax and it is a welcome move for industries. Though there are no sector-specific announcements, the proposal to reduce corporate tax and initiatives to boost the social sector are also welcome measures.

C. Muthusami, president, Tamil Nadu Small and Tiny Industries’ Association, said the micro, small and medium scale enterprises would benefit from the announcements on setting up of Micro Units Development Refinance Agency Bank and the launch of the National Skill Mission.

At the CII budget viewing session in Chennai, its Southern Region Chairman Navas Meeran, said, “The reduction of corporate tax rate from 30 per cent to 25 per cent will make Indian companies competitive.”

Suchitra K Ella, Joint Managing Director of Bharat Biotech International, emphasised the need of more funds for innovation. “The Rs 150 crore announced is not enough for innovation.”  Industrialists present at the session opined that with the existing favourable macro economic factors, the 14 per cent increase in the service tax could have been avoided.

Chozha Naachiar Rajasekar, president, Tamil Chamber of Commerce, said not having any announcement or fund allocation for Sethusamudram project or linking of river projects was disappointing.

“Corporatisation of Ports is a good attempt to bring professionalism and increased efficiency to compete with the privately owned ports,” says Mr T Shivaraman, immediate past president Madras Chamber. On the flip side, the Madras Chamber members said that though there was a lot of talk on ‘Make in India’, there was no clear-cut measure to incentivise the manufacturing  sector.

According to the Southern India Chamber of Commerce and Industry, the budget was more of an incremental exercise. Chambers president Jawahar Vadivelu, said, “While the Finance Minister announced tax-free infra bonds for road, rail and irrigation projects, there could have been a further expansion of the scope of government investment in the infrastructure sector.”
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