B. Santhanam

CHENNAI: The Tamil Nadu Council of the Confederation of Indian Industry (CII) wants the introduction of Value Added Tax regime in the State to be taken up on a priority basis by the new government.

"Something needs to be done [on VAT] as quickly as possible," said B. Santhanam, chairman of the Council.

He said the need for rapid progress in urban infrastructure projects and large-scale skill development initiatives were among other expectations of the industry body from the new government.

A focussed approach to develop skills among the youth was equally imperative for the State and industry in the backdrop of corporates discovering that a majority of graduates do not possess employable qualities. Noting that the CII would soon release the findings of a study commissioned by it on (the need for) skill upgradation, he said a potential skill deficit was visible on the horizon. Unless addressed now, it could take alarming proportions in the next ten years.

"Correcting imbalances"

Underscoring the need for "correcting some imbalances" by involving the government, academia and industry, Mr. Santhanam, in an interview to The Hindu here on Friday, said the study, by ICRA, is a highly sophisticated number exercise making a ten year forecast on the situation. The issue is one of quality (of the potential manpower) in the short term, and quantity in the long run.

On the other expectations from the new government, he said specific incentives to woo large investors were required, and so was the need to reduce the cost of power, particularly for the high tension consumers, and upgrading of select industrial estates.

A formal branding and showcasing of the State was necessary, especially to highlight the business-friendly climate that it offered.

Mr. Santhanam, who completes his one year tenure as the Council Chairman shortly, said with the "objective to leverage competitiveness and scale up," CII Tamil Nadu focussed on six areas during the year. It sought to achieve SPEED (southern prosperity through enhanced economic development) through a four-geared strategy involving the development of Madurai as a manufacturing hub and satellite hubs in other southern locations such as Virudhunagar, Ramanathapuram and Tirunelveli. It involves developing Tuticorin as an export-cum-service hub and a knowledge and tourism corridor.

Some of the signature projects pursued by CII include a feasibility study on the Avinashi Road Project in Coimbatore and a study on "traffic assessment for Madurai Airport - 2015" from the perspective of upgrading it to an international airport.

With an eye on decongesting Chennai, CII wanted the creation of a (housing) township on the outskirts to address the future needs of fast developing industrial clusters in and around Sriperumbedur and Irungattukottai.

Mr. Santhanam said there was a need to look beyond Chennai, as the city was getting clogged.

Moreover, a township near the industrial clusters would also benefit employees and enhance their productivity.

There was increased networking among industry members, he said.

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