74. This Government had constituted the Tax Reforms and Revenue Augmentation Commission under the eminent economist, Dr. Raja J. Chelliah. In the Budget for 2003-2004, based on the recommendations of the Commission on the structure of Electricity Duty and Tax on Consumption of Electricity a new legislation was enacted. Though the Commission recommended against granting of exemptions from the levy of this tax to any category of consumers, this Government with the intent of protecting small consumers granted exemption to farm pumpsets, hut services and domestic consumers.

75. The Hon'ble Chief Minister has taken a bold decision to rationalize and reduce the stamp duty and transfer duty on conveyance of property based on the recommendations of the Commission. Thus, the rate for stamp duty and transfer duty totalling 13% for urban areas has been reduced to 8%. The total rate for other areas, which was 12% has also been brought down to 8% with effect from 21.11.2003. This reduction and simplification of rates is aimed at ensuring better compliance and transparency in the process of registration. Despite this substantial reduction in the rates, the revenues to Government have actually increased since its implementation.

76. We are aware that some modifications and rationalization of the Sales Tax structure will have to be undertaken. The Tax Reforms and Revenue Augmentation Commission has made certain recommendations including those on Value Added Tax. We have already taken the necessary initial steps. We shall take further preparatory measures to keep in readiness when a national consensus emerges. Based on the discussions at the national level on the roadmap for the future, a final view on this subject will be taken. Our whole approach will be to make taxation simple and transparent in Tamil Nadu.

77. This Government is taking steps to review labour laws, regulations and rules applicable to Tamil Nadu based on the Second Labour Commission Report. A detailed roadmap of labour reforms will be drawn up after due consultation. We will seek to enhance employment potential in the State, while protecting the genuine interests of labour.

78. Tamil Nadu has emerged as the hub for manufacturing in India. The quantum of investments committed in the manufacturing sector is the highest in the case of Tamil Nadu. This highlights the State's pre-eminence in this sector and also the need for consolidating this comparative advantage. Individual manufacturing units in Tamil Nadu have to become efficient for being able to compete in the global market place. This requires technological upgradation and modernization. As indicated in the New Industrial Policy, 2003, new working groups will be constituted to facilitate technological modernization and upgradation in consultation with industry associations.

79. The policy of according preferential treatment to small-scale industries in Tamil Nadu in Government procurement has helped several units to revive. A new policy for Small Scale Industries is being evolved and will be announced shortly. A Technology Development Centre for small and medium enterprises will be opened in collaboration with the Confederation of Indian Industry (CII) in 2004-2005. The Budget Estimates 2004-2005 include a provision of Rs. 75 lakhs to establish this Centre on a public-private partnership model. This project will encourage private entrepreneurial investments across the State, thus, creating new jobs and opportunities for the people.

80. Hon'ble Members of the House will be glad to know that an Industrial Infrastructure Upgradation Scheme is being launched to cover clusters where industries are concentrated. This will provide essential infrastructure and market links. This programme will cover a garment and knitwear cluster, motor pump and foundry cluster, leather products cluster, automobile component cluster, Mango pulp and coir cluster and food grain cluster in Tamil Nadu. The scheme to support SSI units in obtaining ISO certification and undertaking research and development has been very well received. We have already launched a scheme to support technology upgradation and modernization of small-scale industries and this will be continued in 2004-2005.

81. The Hon’ble Chief Minister's vision is to re-establish the pre-eminence of the Chennai Metropolitan Area in all spheres. The beautification of the Marina Beach has been widely welcomed. Provision of quality infrastructure and healthy living environment in Chennai is the highest priority for this Government. As soon as the on-going sewerage project is completed, the remaining roads will be re-laid and brought to standard in phases. A Comprehensive Traffic Management Plan for Chennai is being drawn up. Meanwhile, investments in improving the road network for cutting down travel time are underway. These initiatives form an integral part of the Chennai Metropolitan Development Plan, which is being implemented over 10 years at an outlay of Rs. 18,000 crores. I am happy to inform you that investments will exceed the original outlay of Rs. 1780.95 crores set out for 2003-2004 under the Chennai Metropolitan Development Plan. We are targetting an enhanced investment outlay of Rs. 2010 crores in 2004-2005 for Chennai in sectors such as power supply and distribution, traffic and transportation, drainage, water supply and sewerage, housing, slum resettlement and solid waste management.

82. The welfare of weavers has received the highest attention from the Government. The scheme for providing free uniforms to school children has been restructured to ensure that the cloth is purchased from handloom weavers. Similarly, the free sarees and dhoties, which are being distributed among old age pensioners are also being procured from handloom weavers. This has enabled the provision of continuous employment to handloom weavers in the State. The scheme for free distribution of high quality polycot sarees and dhoties among 1.11 crore women and 1.11 crore men has been widely welcomed. This scheme not only provides continuous employment to the handloom and powerloom weavers but clothing security as well to 2.22 crore people in Tamil Nadu. The Budget includes a provision of Rs.173 crores for continuing this scheme in 2004-2005.

83. Members of this House will be pleased to know that in the Chennimalai area of Erode district, a housing scheme with work-sheds to benefit 1010 weavers has just been constructed at a cost of Rs.6.87 crores. This is one of the biggest housing colonies in India. The emphasis on construction of house-cum-work-sheds for weavers will be continued in the next financial year.

84. This Government proposes to restructure Co-optex at a cost of Rs. 73 crores with funding support from the Government of India. Four shuttleless Weaving Parks at Palladam, Tiruchengode, Erode and Andipatti are also being established. The outlay on Handlooms and Textiles in Budget Estimates 2004-2005 has been stepped-up to Rs. 304.51crores.

85. The Hon'ble Chief Minister's visionary "IT Policy 2002" has enabled Tamil Nadu to reach new heights in the Information Technology sector. The share of Information Technology / Information Technology Enabled Service exports from Tamil Nadu has shown remarkable growth from 11% in 2000-2001 to 17% in 2002-2003. This Government will take further action to build on these strengths.

86. The Knowledge Industry Township (KIT) at Sholinganallur on the road to Mamallapuram will take shape in 2004-2005. The Hon'ble Chief Minister has initiated the IT Expressway project, which will link Madhya Kailash junction to Mamallapuram at a total cost of Rs. 127.41 crores. This will provide a world-class road to connect the IT enterprises located on the proposed Expressway. A larger area in this zone will be taken up for planned development and will be called the IT Bay area. Apart from Chennai, Coimbatore will also be developed for Information Technology/ Information Technology Enabled Service investments. In a major effort to consolidate Tamil Nadu's comparative advantage in Information Technology Enabled Services, an ITES module is being introduced in the higher secondary school computer science syllabus to prepare our youth for the employment potential in this sector.

87. Thanks to the professional and visionary tourism development policy of the Hon’ble Chief Minister, Tamil Nadu has earned a place of pride as an enchanting tourism destination. This has given a major boost to the local service industry apart from generating new avenues of employment. The Budget outlay for Tourism development has seen an impressive step-up from Rs. 5 crores in 2000-2001 to Rs. 30.35 crores in 2004-2005. New infrastructure is being created through public and private sector participation. The hotel industry in Tamil Nadu is now growing fast with the reduction in luxury tax rates by this Government. The Tamil Nadu Tourism Development Corporation has been turned into a profit-making company.

88. Good governance entails efficient, transparent, participatory administration. This Government is adopting e-governance in a big way to improve administrative efficiency and service delivery. The State Secretariat has already been linked to district headquarters through video-conferencing. We are also linking prisons with Courts through video-conferencing.

89. Ten departments and agencies with extensive public interface will be taken up under the e-governance programme to improve service delivery. The Budget includes a provision of Rs.23 crores for e-governance initiatives in Commercial Taxes, Registration, Treasuries and Accounts, Transport and Survey and Settlement Departments. A provision of Rs. 8 crores for establishing the Tamil Nadu State Wide Area Network (TNSWAN) has been made in the Budget for 2004-2005 to enable easy inter office communication and data transfer.

90. In the early 1990s, when the stabilization of the economy and structural adjustment were initiated by the Union Government, it was our Hon'ble Chief Minister, Puratchi Thalaivi J Jayalalithaa, who propounded the concept of a comprehensive social safety net to protect the disadvantaged, the marginalized and the needy in the context of the structural adjustment process.

91. Fiscal reforms in Tamil Nadu have been put through without adverse effects on any section of the public. This has not been possible in any other State. This is a very significant achievement. The credit for this goes only to the Hon'ble Chief Minister who insisted that notwithstanding the nature and gravity of the fiscal crisis facing the Government, there would not be any compromise in providing a comprehensive social safety net for the poor. In fact real improvements to the safety net have been made during this process. The total outlay on the comprehensive social safety net in the Budget for 2004-2005 is Rs. 5329.28 crores.

92. Tamil Nadu has attained the unique distinction of having a Primary School within a radius of 1-Km from every habitation in the State in 2003-2004. This Government will upgrade 364 Primary Schools into Middle Schools in 2004-2005. This will ensure that all villages in Tamil Nadu have easy and comfortable access to a Middle School. We will also upgrade 30 Middle and 30 High Schools into High and Higher Secondary Schools, respectively in 2004-2005.

93. This Government has provided Rs. 506.13 crores during 2002-2003 and 2003-2004 for upgrading infrastructure facilities in schools under the ‘Education for All' Scheme. 600 High and Higher Secondary Schools are being provided with English Language Teaching Laboratories. Computer Science will be extended as an optional elective subject in 400 more Government Higher Secondary Schools in 2004-2005. With this, 1597 Government Higher Secondary Schools will be covered. Computer Literacy Programme will be taken up in 500 High Schools in the next financial year at a cost of Rs. 5.30 crores. The total outlay for school education has been increased from Rs. 3937.29 crores in the Revised Estimates to Rs. 4202.77 crores in the Budget Estimates for 2004-2005.

94. Members of this House will be pleased to know that Tamil Nadu has obtained the approval for funding under the World Bank-assisted Technical Education Quality Improvement Programme. This programme will be taken up at an estimated outlay of Rs. 300 crores over 5 years. I am happy to inform you that Chennai will soon have a National Institute of Science on the lines of the Indian Institute of Science to foster excellence in basic sciences. This will be set up as a joint initiative of the University of Madras and Anna University. The total provision for Higher Education in 2004-2005 has been fixed at Rs. 649.81 crores as against Rs. 614.70 crores in the Revised Estimates.

95. I am happy to announce that a major step-up is being made in the Budget outlay for Youth Welfare and Sports from Rs. 27.27 crores in the Budget Estimates for 2003-2004 to Rs. 48.14 crores in the Budget Estimates of 2004-2005. The focus in the next financial year will be towards upgrading the sports infrastructure across the State, talent identification and motivational training and hosting of sporting events in Tamil Nadu. A University of Physical Education and Sports will be set up in Tamil Nadu.

96. Promotion of Tamil language, has received the highest attention of this Government. Scientific Tamil, the brainchild of our Hon'ble Chief Minister, has been introduced in all schools from LKG to standard XII from this academic year. We have also provided free textbooks to students on Scientific Tamil at a cost of Rs. 5.42 crores. The Tamil Virtual University will take up projects to develop a universal Tamil search engine, web content for commercial Tamil and virtual Tamil classrooms in 2004-2005.