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Focus on infrastructure development: PHDCCI

By Our Staff Correspondent

SHIMLA, FEB.18. The PHD Chamber of Commerce and Industry in its recommendations to the Himachal Government has suggested the State to focus on the infrastructure development on priority. A delegation of the Chamber met Chief Minister and other officials in this regard here today.

In its pre-Budget memorandum it has urged the State Government to accelerate the pace of economic reforms in tune with the 10th Plan target of 8% growth per annum. The State should target on reducing unemployment, providing affordable health care to people and improving female literacy rates. It has also recommended to retarget the subsidies so as to reduce the total burden on state resources.

With sales tax accounting for 45.2 percent of the tax revenue of the State, PHDCCI has highlighted the importance of raising tax revenue by designing a VAT law which is in agreement with the recommendations of the White Paper on State Level VAT. To enhance revenue through registration charges on properties, PHDCCI has suggested that stamp duty for residential and non-residential properties which is currently at 14 percent, may be rationalized at 5 percent to be made at par with States like Maharashtra, Jharkhand and Haryana. This will encourage new tourism and urban development projects to come up in the State.

It has appreciated the State Government's decision to set up a Public Tariff Commission to determine and regulate cost of various services like transport, water supply, irrigation, education and health, PHDCCI has suggested that management contracts be offered for efficient operation and maintenance of urban services through private participation.

In order to reduce fiscal deficit, the State Government has been urged to make greater use of IT in administration, introduce executive oriented governance, and professionalise operations of State PSUs.

With resurgence of industrial development in the State, as a result of Union Package of Incentives, PHDCCI has highlighted the need for quality infrastructure in the industrial areas by making provision of funds in the State budget. The State Government should set up an Infrastructure Development Company on public-private partnership model at Baddi. The Government of India Infrastructure Development Fund may be utilized to bridge the gap in funding requirements, with 75 percent funds from private sector and the rest to be made by the State and the Central Government.

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Focus on infrastructure development: PHDCCI

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