Industry seeks divestment of PSUs and enhancing of tax base

Chennai:

Privatisation of public sector units, enhancing of  tax base, free pricing of fertilizers, cooperative farming besides boosting outlays for infrastructure and power have been echoed by the industry in Tamil Nadu as it awaits eagerly the presentation of budget.

S Chandramohan, member of Confederation of Indian Industry Southern Regional Council and Chief Financial Officer of TAFE told Express that her expects the government to take bold steps in privatization of public sector units. “Divestment alone won’t help, they should be privatized so that excess land holding by the sectors could be released,” he added.

Interestingly, his views were also echoed by Federation of Indian Chamber of Commerce and Industry advisor P Murari who has sought divestment of PSUs as it will curtail unproductive expenses.

CII also suggested the need to enhance the tax base. “There is a need to bring more assesses in the net other than corporates and salaried people,” opined Chandramohan. He also suggested ensuring cash subsidy directly to the people. Interestingly, FICCI has sought phasing out of unproductive subsidies besides audit of National Rural Health Mission and National Rural Employment Guarantee Act (NREGA).

Murari says that FICCI expects the budget to provide a suitable climate for investment. “The government should provide lot of outlays for energy, infrastructure and social parameters like health and education,”, Murari said.

Infrastructure majors like Scomi International expect reformative measures like foreign direct investment in transportation and corporatisation of service delivery institutions in the budget to ensure minimal lapse and timeliness in implementation of policies

Last year, 48 per cent of the total planned expenditure was allotted to the various infrastructure initiatives. “Policies like tax rebates on infra-bonds have helped tremendously to raise funds for the development of public infrastructure. We hope the policy makers continue the momentum in this year’s finance bill,” said Kanesan Veluppillai, President of Scomi International, which is vying for monorail contract in Chennai

Interestingly, Murari feels this is the chance for government to bring in lot of reforms and focus on growth as after this budget, the prime focus of the government will be on elections and 2013 will be a populist budget.

In the agriculture sector, Chandramohan feels there is a need for free pricing of fertilizer as it would boost investment. He also suggested lease holding of land by farmer besides cooperative farming. Interestingly, FICCI stresses the need to modify Agriculture Produce Market Committee Act besides multibrand retailing to stimulate agriculture growth.

Chandramohan feels the budget should focus on need to make the gold productive to cut down on the deficit. “The government should initiate a policy by providing good rate of interest on gold,” he opined. He also suggested the need to bring in investment allowance.