CHENNAI: Industries in Tamil Nadu are expecting higher production-linked incentives (PLI) for sectors, including renewables, electric vehicles and electronic components, and measures to expedite infrastructure projects in the Union Budget to be presented on Tuesday.
Currently, to be eligible for the Rs 26,058-crore incentive under PLI scheme for electric vehicle industry, an automaker must have global revenue of at least Rs 10,000 crore and minimum investment of Rs 3,000 crore in fixed assets. “If the PLI is increased, it will help manufacturers, including auto-component makers who have strong presence in the state, move to electric vehicles,” says S Chandramohan, former chairman, Confederation of Indian Industry (CII), Tamil Nadu.
Micro, Small and Medium Enterprises which are struggling due to rising steel prices and cost of raw materials want prices to be stabilized. Gireesh Pandian, president, Industrial Estate Manufacturing Association, Guindy, wants Finance Minister Nirmala Seetharaman to waive bank interest for MSMEs and units with less than Rs 5 crore turnover for two years. TN industrialists also want speedy implementation of infrastructure projects.
The work on Rs 20,000- crore Chennai-Bangalore Expressway, which passes through TN, Andhra and Karnataka, is moving at a snail’s pace and the proposed Chennai-Kanyakumari Industrial Corridor (CKIC) project, which is likely to generate over 4.7 million additional jobs through annual manufacturing output of $222 billion, is yet to gain shape.
The CII has also been pushing for a textile park and food processing park in the state. S Sridharan, chairman, Urban Development/ Affordable Housing Committee, CREDAI says that since the construction cost is up 18% to 20%, Input Tax Credit must be revived. He added banks should ensure infrastructure status for affordable housing segment to make lending easier.
Other demands