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Rangarajan panel calls for urban job guarantee scheme in Tamil Nadu

Wants state to increase capex by Rs 10,000 cr, set up fund to support construction labour

Employment guarantee | c rangarajan | Tamil Nadu government

T E Narasimhan  |  Chennai 

c rangarajan, RBI, Reserve bank of India, Reserve Bank governor Urjit Patel, urjit patel,  public sector banks, PSBs, Saumitra Chaudhuri, planning commission,PNB scam, Nirav Modi,  Finance Minister Arun Jaitley, Aru Jaitley, Letters of Undertaking ,
C Rangarajan, former RBI governor

A high-level committee headed by former Governor of Reserve Bank of India (RBI) has recommendeded the Government to come out with an urban scheme, increase capital expenditure by Rs 10,000 crore and set up a Rs 3,200 crore fund to support construction workers.

The committee was set by the State Government to recommend measures to bring the state back on the growth path post the pandemic lockdown.

The committee has submitted its report to Chief Minister K Palaniswami and Deputy Chief Minister O Panneerselvam.

Speaking to reporters, Rangarajan the state economy is estimated to grow in 2021 at 1.71 per cent, but there may also be a slide.

He said looking at the Goods and Services Tax (GST), tax on petrol and power consumption, in two month’s time the state’s economic levels may be back to pre-Covid-19 levels. Rangarajan said that the committee has recommended creating an urban scheme in the lines of rural scheme.

Similarly, the government should increase its capital expenditure by around R 10,000 crore and also spend Rs 3,200 crore in the construction workers fund to generate employment opportunities. When the demand is low, the government has to increase the spend, he said.

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The committee expects the state’s debt will increase this year as the health care expenses has increased while income has come down.

has to spend a further sum of Rs 5,000 crore towards health.

On the industrial front, the committee has recommended increasing the capital of Industrial Investment Corporation to Rs 1,000 crore so that the organisation can lend long term.

“Setting up of industrial parks and industrial townships and bringing in the credit guarantee scheme for small scale industries are other recommendations,” Rangarajan said.

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First Published: Mon, September 21 2020. 15:52 IST