CHENNAI: Industrial sector in Tamil Nadu has more expectations from Narendra Modi’s second tenure – from implementing infrastructure development project, urgent investment in R&D in Electric Vehicle supply chain and doubling the income of farmers. S.Chandramohan, chairman, Confederation of Indian Industry, Tamil Nadu, has a long list of expectations from the Central government.
The proposed Greenfield second airport for Chennai as well as the expansion of six airports – Madurai, Thoothukudi, Coimbatore, Salem, Tiruchy and Chennai – needs to be completed as early as possible. While the land acquisition has to be expedited, exchange of land by the Central government where ownership rests with it needs to be explored. The proposed greenfield corridor connecting Chennai - Trichy has to commence.
Industry
The electric vehicle (EV) supply chain demands an urgent investment in R&D and local manufacturing capabilities. Tamil Nadu being an auto-hub from two-wheelers to trucks is the ideal State to promote the EV supply chain
Textiles
As the Central government is targeting to double textile production to $300 billion by March 2025, a State-of-the-art textile cluster needs to be established near Coimbatore to promote production and export of synthetic textile
Food Processing
There are more than 450 Farmer Producer Organisations (FPO) in the State. The Central government with the support of State needs to create a few food processing clusters which would enable the FPOs to add value and increase farmers’ income
Water
The Centre must handhold the State government for irrigation as well as restoration of water bodies. It will enable the growth of the farming sector as well as avoid unproductive expenditure. Corporates can be given a weighted deduction of 150 per cent in this regard
Tax
Industrial growth has been sluggish in the past few months for various reasons. To spur investment, the government needs to continue the weighted deduction on R&D at 150 per cent beyond 2021 and reduce Corporate Tax to 25 per cent for all