Financial constraints of the government will in no way be an obstacle to development, Puducherry Chief Minister V. Vaithilingam has said.

Inaugurating the Rajiv Gandhi Ayurveda Medical College here on Wednesday, Mr. Vaithilingam said though the government had experienced some financial crisis initially, the economic situation in

the State was stable to the extent that it could now record a 33 per cent increase in revenue. Excise revenue had increased from Rs.130 crore to 420 crore. There was a qualitative change in the developmental initiatives after the present Ministry took charge, he added.

The Chief Minister said the Puducherry government had offered complete support and assistance to the development of the Mahe region as and when the projects were submitted. Admitting adequate financial assistance could not be extended to two major projects in Mahe ? the indoor stadium and the fishing harbour ? he said the indoor stadium was now a reality, while the technical obstacles delaying the fishing harbour project had been removed and orders issued for its construction.

Mr. Vaithilingam said the Centre had sanctioned Rs.10 crore for an Ayurveda medical college following the intervention of Puducherry Home Minister E. Valsaraj. The development projects were getting completed in a time-bound manner, he added.

Mr. Valsaraj presided over the function and Deputy Speaker A.V. Sreedharan delivered the special address. Puducherry Health Secretary Raajiv Yaduvanshi and Mahe municipal secretary Ramesh Parambath were among those present.