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| Address labour and infra issues to get investments : SICCI to TN govt |
| BS Reporter / Chennai Jun 17, 2009, 09:18 IST |
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As the state assembly is set to commence from Wednesday the Southern India Chamber of Commerce and Industry (SICCI) had suggested the state government to form a high level committee to look into various labour issues in the state.
The chamber also urged the government to look at infrastructure bottlenecks and various issues including special package for new units immediately to attract investments in the state.
Centre for Monitoring Indian Economy (CMIE) data as on March 31, 2009, the state has attracted an additional investment of Rs 1.68 lakh crore, an increase of 41 per cent increase over a year. In the last three years, the government has signed 22 MoUs, besides giving structured packages to eight industrial projects. These approvals have resulted in an investment of Rs 38,700 crore and employment generation to 2.07 lakh people.
SICCI said the state can attract further investment if the government address issues including removing regulatory burden and improve the infrastructure in the state.
Labour market restrictions on hiring and retrenching workers is one of the greatest challenges of doing business in any country. Rigid labour regulations have prevented Tamil Nadu from unleashing its full potential in labour productivity. The existing rigid labour regulations deter greater employment generation. SICCI suggested that the government should form a high level committee to look into the various labour laws and it is the right time to reform the laws to attract greater investment into the state.
Power is a major concern in the state, which has a generating capacity of 12000 Mw. The demand is 35 per cent higher than supply. Government should make pro-active arrangements with private players for power supply and make the tariff more attractive for them for higher generation
The state also has a potential developing export oriented units for auto ancillary, textile, chemicals and petroleum, construction and agro processing sectors. These should be explored by providing special package for new units and giving the single window clearance. “Overseas companies are keen to supply the critical components which will go into these main industries, they are often deemed ineligible for allotment of land in the Special Economic Zone owing to the stipulated criteria laid down by SIDCO and Tamil Nadu Guidance Bureau”.
SICCI suggested that the Government should consider relaxing provisions in the eligibility criteria for allotment for critical component industries which can be determined on a case by case basis depending on the volume of imports and availability of those parts locally. This will not only ensure more investments but also enhance the economic scale of activities.
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