TN expects infrastructure development, production-based incentives in Budget

Chennai: The Industries in Tamil Nadu are expecting higher production linked incentives in the Union Budget 2022 to be presented by Finance Minister Nirmala Sitharaman on Tuesday. 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) […]

Chennai: The Industries in Tamil Nadu are expecting higher production linked incentives in the Union Budget 2022 to be presented by Finance Minister Nirmala Sitharaman on Tuesday.

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.

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Gireesh Pandian, President, Industrial Estate Manufacturing association, Guindy wants the Union finance minister to waive off bank interest for MSME and industries with less than Rs 5 crore annual turnover for a period of a minimum of two years. He also said that the 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 IANS said, “We expect a subsidy of 40 per cent 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 with 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.