Staff Correspondent

Udupi: The State Budget for 2010-11, presented on Friday by Chief Minister B.S. Yeddyurappa, has evoked mixed response here.

President of the Udupi Chamber of Commerce and Industry Gujjady Prabhakar Nayak termed it a “pro-infrastructure” budget. Stating that Mr. Yeddyurappa had presented a surplus budget for the third successive year, he said the allocation of Rs. 600 crore for the Chief Minister's Nagarothana Yojane would promote infrastructure development in urban areas.

The budget has announced a special grant of Rs. 25 crore for the Udupi City Municipal Council, which is celebrating its platinum jubilee this year.

The hike in the allocation for water supply, roads, electricity and vocational training has been welcomed. The increase in the quantity of sales tax-free diesel for fishermen from 75,000 kilolitres to 85,000 and allocation of Rs. 10 crore for setting up a fishing harbour at Koderi near Byndoor would help the fisheries sector. “The move to increase energy generation from the present 8,000 MW to 12,000 MW in the next three years is a good step,” Mr. Nayak said. The former president of the District Small Industries Association M. Vishwanath Bhat said the increase in value added tax rate by 1 per cent would be detrimental to small industries. Terming it a “directionless budget”, president of the district unit of the Janata Dal (Secular) Deviprasad Shetty said it was against farmers.