Our Bureau
The trade and industry has hailed the Kerala budget, saying that the steps taken by the State government to launch the ₹66,079 crore, Kasaragod-Thiruvananthapuram semi-high speed rail corridor could be a game changer in the history of transportation in the State.
Abu Dhabi Investment Authority’s Logistics Park promise worth ₹66,900 crore is one the important project, which will improve logistics infrastructure in the State if complemented with quality transport infrastructure.
The Chamber president, V Venugopal said that the decision to facilitate monetary support to start-ups through KFC and KSIDC without the requirement of collateral security will trigger fresh investments in the sector. The government’s decision to bear the loss sustained in such cases will boost investor confidence. “We seek industry representation in the expert committee chaired by the IT Secretary in this regard”, he said.
The decision to set up 15 specialised land acquisition units to expedite setting up of industrial parks in Kerala. The announcement to allocate ₹2.5 crore for Kochi Metropolitan Transport Authority and ₹6,000 crore for development projects in Kochi deserves special appreciation.
The ₹1,000 crore allocation for coastal and road development should enable the government in addressing the crisis of coastal erosin. Kerala coastline has been found to be vulnerable to erosion and the budgetary allocation acknowledges the need to address the crisis.
According to Venugopal, the government’s decision to pay employee’s share of one month Provident Fund component in case of newly registered establishments should increase the regularisation of unorganised sector. The industrial sector will be benefited by the rationalisation of stamp duty rates on par with Tamilnadu and Karnataka.
Sunny L Malayil, President, Indian Chamber of Commerce and Industry pointed out that the funds earmarked for developmental projects in the budget was very limited especially at a time when the State is going through a financial crisis and business slowdown. The increase in land registration charges may affect new investors who come forward to set up business ventures.
The launch of a comprehensive amnesty scheme to collect the outstanding arrears before July 31, waiving interest on tax and penalties is laudable. However car manufacturers and dealers will be put in trouble following the decision to hike the registration tax for new vehicles when car sales are on a downward trend, he said.