Check wasteful spending, IIA to Uttaranchal

A delegation of the Indian Industries Association (IIA) today called on Chief Minister N D Tiwari and said the government should check wasteful spending, improve infrastructure, and focus on agriculture and industry.

The delegation, led by IIA Uttaranchal President Pankaj Gupta, also presented a detailed memorandum to Tiwari warning that "the finances of the state were slipping very badly".

The revenue deficit figures, which stood at Rs 99.62 crore during 2001-02 have gone up to Rs 1059.55 crore during the current financial year, it said.

"Outgo towards interest is also on the rise and is estimated at Rs 891.33 crore. This when increase in revenue receipts is very little compared to expenditure. We do not see much growth in tax collection," the memorandum said.

The IIA also suggested certain steps that have to be taken by the government immediately, including measures for promotion of souvenir products based on the religious and cultural heritage of Uttaranchal. Industry can come out with souvenir made of wood, plastic, metal and soapstone, it said.

The IIA also prepared a list of Uttaranchal's traditional and religious souvenirs, including waxed-based products, walking stick, gana jal urn, replicas of various temples and shrines, earthen pots, cane and lantana furniture, ringal baskets and copper utensils.

These products traditionally belong to Uttaranchal and can be given special incentives in the Budget, the IIA said. This will also ensure self-employment to thousands of people within the state and help in checking the menace of migration from the hill areas.

Stating that improvement in infrastructure like roads, highways, rail and air links are the keys drivers for attaining higher growth, the IIA asked the government to immediately take steps to convert the Delhi-Dehra Dun Highway into a four-lane broad road.

A four-lane highway connecting Garhwal with the Kumaon region should also be taken up on a priority basis. Efforts should be made to reduce the rail time between Dehra Dun and Delhi by either connecting Roorkee directly with Muzaffar Nagar or linking Dehra Dun and Saharanpur through a metro rail link, it said.

IIA also said the government should take steps to facilitate development of real estate industry by introducing radical reforms and rationalizing property taxes and stamp duty.

Stating that there should be no new taxes, the IIA demanded that cess on captive power generation should be removed while suggesting that the government impose registration charges on demat transaction to increase its income.

The IIA also demanded that the government should focus its attention on the agriculture sector which is still the mainstay of the state's economy. The government must develop a policy to promote diversification of crops and support farmers in providing facilities like storage, processing and transport.