TN plans four SEZs in backward areas

Under the Budget proposals for 2008-09, the Tamil Nadu government will establish four special economic zones (SEZs) in the industrially backward areas of the state.

A specialised SEZ for transport engineering goods will be set up on 255 acres of land at Gangaikondan in Tirunelveli district, Tamil Nadu Finance Minister Anbazhagan said. A second SEZ to be set up on 255 acres of land at Cheyyar in Tiruvannamalai district will roll out spare parts for the automobile industry.

The third SEZ spread over 263 acres at Perunthurai in Erode district will specialise in engineering goods. Besides, a leather goods SEZ on 260 acres will be set up at Ranipet in Vellore district.

So far, 32 SEZs have been approved in Tamil Nadu and 29 of these have been notified by the Union government.

A new IT park is proposed to be set up in Vellore by ELCOT in partnership with the private sector in the coming financial year.

Reacting to the budget announcement on SEZs, the Confederation of Indian Industry's Tamil Nadu State Council has welcomed some of Tamil Nadu finance minister K Anbazhagan's announcement as moves which would enhance competitiveness and ensure inclusive growth. They include

setting up new SEZs in backward districts, development of Tier II towns, increased allocation for agriculture, health, education, transport and power sectors.

Gopal Srinivasan, chairman "" CII Tamil Nadu State Council said the new SEZs once set up would ensure equitable growth and bring people from the backward areas into the mainstream. These measures by the government of Tamil Nadu are in line with CII's recommendations for promoting inclusive growth, Srinivasan said.

He said the emphasis on the agriculture sector in the budget has been reflected in the proposal to disburse new crop loans of Rs 1,500 crore in 2008-09.

Initiatives such as precision farming, which would benefit farmers in realising enhanced agricultural productivity are in line with CII's recommendation on making the agricultural sector more vibrant, he said.

Cold storage facilities proposed for all 22 agriculture markets of the state would benefit farmers in reducingwastage, maintaining quality and ensure better access to the retail markets.

The 25 per cent subsidy as outlined in the budget for farmers in procuring agricultural machinery would encourage farmers to shift towards modern cultivation practices, thereby achieving productivity, he said.

Srinivasan further lauded the government for exem-pting interstate sales tax on rubberized textile fabrics, soya oil, turmeric powder, chilly powder and jaggery which would provide relief to manufacturers and the common man.