 "We have created Rs 1,000-crore fund for IT-enabled entrepreneurs: Captain Abhimanyu")
Captain Abhimanyu, finance and industry minister of Haryana, has a challenge to bring the state's economy on a fast track. Despite lack of large investments, the minister is upbeat over the knock-on effects of the new industrial policy rolled out by the state in August. Edited excerpts of an interview with Komal Amit Gera:
The Bharatiya Janata Party government was formed in Haryana in October 2014 and no major private investment has been registered since then.
Haryana is a strategically located state, with a conducive climate for business. The enterprises promotion policy, announced in August, has been able to mobilise significant investment in the micro, small and medium enterprises sector.
A slowing real estate sector has stalled many proposed projects. What was its impact on revenue receipts from stamp duties and registration fees?
Since FY14, there has been a consistent decline in receipts from transactions in real estate. We collected Rs 3,109 crore the previous year under this head, and the target for 2015-16 is Rs 3,600 crore. Till December 17, Rs 2,207 crore accrued. We hope the interest rate cuts announced by banks would boost demand and collections.
Farmers in Haryana lost cotton crop this kharif season. They have not been given compensation. A committee was constituted whose report has not been made public. What are the reasons?
The assessment of the crop damage (girdawari) was done manually and there were reports of anomalies. So, we had to verify the assessment and this got delayed. The report of the committee was also delayed for the same reason. We will soon distribute compensation to farmers and announce the report's findings.
Gurgaon became a software hub of India many years ago. There has been no transition to niche-skilled activities in terms of new investors and a start-up culture in the city. Is the government planning any initiative?
We have signed a memorandum of understanding with Nasscom (the sectoral association) to open incubation centres and innovation campuses on the hub-and-spoke model in the universities of the state. We have also created a corpus of Rs 1,000 crore to fund first-generation information technology-enabled entrepreneurs.
The Fourteenth Finance Commission skewed the devolution of funds in favour of states by raising divisible pool of central taxes from 32 per cent to 42 per cent. Does Haryana stand to gain?
This decision of the Government of India has given more financial autonomy to states. After the Planning Commission was replaced by the NITI Aayog, various committees, led by the chief ministers of states, dwelled upon the centrally sponsored schemes. The autonomy has been given to the states whether they want to continue certain schemes or not. We are reworking and realigning our priorities to work out the net benefit or loss.
The Seventh Pay Commission has proposed a 23.5 per cent increase in salaries of central government employees. Will Haryana adopt this in toto?
The recommendations have not got approval of the Union Cabinet. According to the budget estimates of 2015-16, salary expenditure is Rs 17,061 crore, and pension expenditure is about Rs 5,900 crore in Haryana. It is premature to surmise details of the revision in pay-scale but we will ensure maximum increase in given resources of the state.
The Bharatiya Janata Party government was formed in Haryana in October 2014 and no major private investment has been registered since then.
Haryana is a strategically located state, with a conducive climate for business. The enterprises promotion policy, announced in August, has been able to mobilise significant investment in the micro, small and medium enterprises sector.
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The state for the first time will organise a 'Global Investor Summit' in Gurgaon in March. That might help us in big-ticket investments. Non-resident Indian (NRI) remittances to Haryana are not so significant. So, an NRI summit has also been planned on the concluding day of the investor summit, to connect to the Haryana-based diaspora and explore possibilities.
A slowing real estate sector has stalled many proposed projects. What was its impact on revenue receipts from stamp duties and registration fees?
Since FY14, there has been a consistent decline in receipts from transactions in real estate. We collected Rs 3,109 crore the previous year under this head, and the target for 2015-16 is Rs 3,600 crore. Till December 17, Rs 2,207 crore accrued. We hope the interest rate cuts announced by banks would boost demand and collections.
Farmers in Haryana lost cotton crop this kharif season. They have not been given compensation. A committee was constituted whose report has not been made public. What are the reasons?
The assessment of the crop damage (girdawari) was done manually and there were reports of anomalies. So, we had to verify the assessment and this got delayed. The report of the committee was also delayed for the same reason. We will soon distribute compensation to farmers and announce the report's findings.
Gurgaon became a software hub of India many years ago. There has been no transition to niche-skilled activities in terms of new investors and a start-up culture in the city. Is the government planning any initiative?
We have signed a memorandum of understanding with Nasscom (the sectoral association) to open incubation centres and innovation campuses on the hub-and-spoke model in the universities of the state. We have also created a corpus of Rs 1,000 crore to fund first-generation information technology-enabled entrepreneurs.
The Fourteenth Finance Commission skewed the devolution of funds in favour of states by raising divisible pool of central taxes from 32 per cent to 42 per cent. Does Haryana stand to gain?
This decision of the Government of India has given more financial autonomy to states. After the Planning Commission was replaced by the NITI Aayog, various committees, led by the chief ministers of states, dwelled upon the centrally sponsored schemes. The autonomy has been given to the states whether they want to continue certain schemes or not. We are reworking and realigning our priorities to work out the net benefit or loss.
The Seventh Pay Commission has proposed a 23.5 per cent increase in salaries of central government employees. Will Haryana adopt this in toto?
The recommendations have not got approval of the Union Cabinet. According to the budget estimates of 2015-16, salary expenditure is Rs 17,061 crore, and pension expenditure is about Rs 5,900 crore in Haryana. It is premature to surmise details of the revision in pay-scale but we will ensure maximum increase in given resources of the state.