Union Budget: Several sectors in Kerala to benefit indirectly

There may not be any concrete promises for the state in the Union Budget 2013-14, but there are several sectors which will be indirectly benefited, going by the allocation of funds for various projects.

There may not be any concrete promises for the state in the Union Budget 2013-14, but there are several sectors which will be indirectly benefited, going by the allocation of funds for various projects.

The focus given to the rural sector, Micro, Small and Medium Enterprises (MSME), waste to energy project, Prime Minister’s Gram Sadak Yojana (PMGSY) and subsidy for agriculture loans are encouraging for the state.

When Kerala is facing waste disposal menace in almost all places, the decision to promote waste to energy projects can find a solution to the issue. Anuradha Balram, chief economic advisor and director, Project Financing Cell, State Planning Board, said that there were several pockets in rural Kerala which were still deprived of development activities.

The focus given to the rural sector should be used for the benefit of underprivileged people in these areas.

She also felt that the tax benefits allowed for the MSME will be a big boost to the industrial development in the state.

MSME, which has a large share of jobs, production and exports can enjoy non-tax benefits for three years after it graduates to a higher category.

Nanda Kumaran, managing director, State Bank of Travancore, said that the budget proposes more employment generation in the rural sector. With the decision to waive Rs one lakh from the interest component of housing loans up to `25 lakh, there will be a growth in the real estate sector, along with the creation of more employment in the construction sector.

However, Reghuchandran Nair, managing director, SI Properties Pvt Ltd and secretary general of the Confederation of Real Estate Developers’ Associations of India (Credai), Kerala, is of the view that the waiver in interest will not benefit Kerala as housing is a costly affair in the state owing to the high price of land.

“Even in the rural areas, an apartment is not available at a price of `25 lakh and the builders will be forced to go in for reduction in floor area to avail of the benefit announced in the budget,” he said.

K Mohandas, former secretary, Ministry of Shipping, said that the state would benefit from the subsidy allowed for agriculture loans. 

“The plan for establishment of incubation centres in academic institutions and allocating `1,069 crore for Ayush would help in the development of ayurveda sector,” he observed. `33,000 crore has been set apart for the PMGSY which will increase the job opportunities for women in the rural sector.

“Apart from this, the decision to provide skill-based training for 9 million people in the next financial year would help the unemployed in Kerala to get trained in specific skilled areas,” Mohandas said.

The other areas where the state will get sufficient funds are Sarva Shiksha Abhiyan (SSA) and  Mid-day Meal Scheme (MDM).

The formation of a regulatory authority for the construction of roads is expected to clear the current confusion over the development of national highways in the state.

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