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TN expects infrastructure development and production-based incentives in budget

- February 1, 2022

Chennai, Feb 1 (BPNS)

The Industries in Tamil Nadu are expecting higher production linked incentives in the Union budget 2022 to be presented by Finance minister Nirmala Sitharaman in a few hours from now.

The sectors that the industry expects to gain are the renewable energy sector, electric vehicles, and electric components. According to industry insiders, if the Production Linked Incentive( PLI) is increased it will help manufacturers including auto–component makers who have a strong presence in the market to move to electric vehicles.

Gireesh Pandian, President, Industrial Estate Manufacturing association, Guindy wants the Union finance minister to wave off bank interest for MSME and industries with less than 5 crores annual turnover for a period of a minimum of two years. He also said that speedy implementation of infrastructure projects is the need of the hour and industry needs a push in infrastructure from the Government of India and is expecting announcements on the same in the Union budget of Nirmala Sitharaman.

He said that the Chennai- Kanniyakumari Industrial Corridor (CKIC) project which is likely to generate huge employment opportunities is yet to take shape and wants the Union government to push for it.

The Confederation of Indian Industries (CII) is expecting the announcement for a food processing park and a textile park in the state in the Union budget. It also expects the revival of the Input Tax Credit as the construction cost has come up.

The CII Tamil Nadu Chapter former Chairman, S. Chandramohan while speaking to BPNS said,” We expect a subsidy of 40% on the basic cost of drones for farmers to use them for the betterment of agriculture. The subsidies of precision agricultural instruments must also be increased.” He also said that the increase in the Production Linked Incentive (PLI) more auto component makers will shift to electric vehicles which would give a push for the green economy.

The fishermen’s associations are expecting a reduction in fuel prices and the announcement of a tax-free diesel in the budget.