Efforts to bridge funding gap

Priscilla Jebaraj

Several options are being considered to bridge funding gap

CHENNAI: The infrastructure upgradation projects at the Guindy, Ambattur, Thirumudivakkam and Thirumazhisai industrial estates will all be completed by September 2007, says Industries Commissioner M. Raman.

Speaking to The Hindu after the review meeting on the current status of these projects, he said that several options were being considered to bridge the funding gap caused by the delay in implementation.

While additional grants would be sought from the Central and State Governments, there could also be an attempt to restructure the projects. Mr. Raman said that alternative funding routes, such as subsidy for the sewerage works under the Jawaharlal Nehru National Urban Renewal Mission, were also being explored.

Since the new deadline is over six months behind the original schedule, the costs are likely to be Rs. 4 crore higher than the original budget in the case of Guindy, and Rs. 12 crore higher in the case of the other three estates.

Estate representatives also told Mr. Raman that funding for maintenance and conservancy work required a revenue sharing arrangement with local authorities, since the Industrial Township Act, 2001, which would enable the estates to collect local body taxes, had not yet been notified. Mr. Raman said a policy decision on revenue sharing would come soon, possibly before the next budget.

The meeting was attended by officials including Tamil Nadu Small Industries Development Corporation Managing Director Shanthini Kapoor, and directors of the estate infrastructure upgradation companies.