Cochin Chamber hails announcements in state budget

Kochi, Jan 15 (PTI): A major industry body in Kerala onFriday welcomed the announcements of state Finance Minister TM Thomas Isaac in the budget presented in the Assembly.

President of the Cochin Chamber of Commerce and IndustryK Harikumar said the Minister favourably considered theproposals submitted by it in the pre-budget memorandum aswell as in theinteraction with Chief Minister PinarayiVijayan.

Six recommendations of the chamber like revival of sickMSMEs, promotion of innovation with a larger role for KDISC,industry 4.0 ready status, support for start-ups, reductionof VAT on CNG/LNG to 5 per cent from 14.5 per cent andsupport for the plantation sector have found a place in thebudget proposals, he said.

The chamber, which had done detailed consultations beforesubmitting these proposals, said the decision to invest Rs50,000 crores in three industrial corridors with Kochi as oneof the major hubs for activities deserves appreciation.

It said the impetus provided to the start-up sector wouldboost entrepreneurs.

''The governments venture capital fund to support start-ups in their expansion projects will go a long way ingenerating more jobs and opportunities,'' it said in astatement.

The chamber hailed the decision to raise the base priceof rubber, paddy and coconut to Rs 170, Rs 28 and Rs 32respectively by saying it indicates government's concern forthe plantation sector.

According to the latest Economic Review, coconut occupiesthe largest area with 29.3 per cent coverage followed byrubber with 21.28 per cent. Rice comes third with 7.37 percent of the total crop area.

''In a year where the states revenue was badly affecteddue to COVID-19, we appreciate the fact that no fresh taxeshave been imposed. The fact that the flood cess on GST isbeing withdrawn from June 2021 is also welcome. The decisionto extend the Comprehensive Amnesty Scheme will benefit alarge number of stakeholders from the business andindustry,'' the chamber said.

It opined that earmarking Rs 200 crores for skill trainingof youth should help reduce unemployment.

The chamber hailed the proposals for reduction in stampduty on certain transactions and waiver of electricity dutyfor 5 years for new industrial units.

The focus on innovation through 'Kerala InnovationChallenge mentoring and financial aid for innovators,start-up innovation zones, among others, could enablebranding of Kerala as an innovation hub of India, the chambersaid.

It said the Rs 2,000-crore allocation for smallenterprises is set to help the MSME community.

''The decision to formulate integrated micro and small jobentrepreneurship support programme also deservesappreciation. We request the government to undertakeextensive consultations with stakeholders before finalisationof the programme by placing the draft policy in publicdomain,'' the chamber said.

The budget announcements assume significance this timeas the Assembly polls are just months away. It is the finalbudget for the present LDF government.