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For industry, it?s okay but in bits & pieces

POPULIST announcements made in the state Budget no longer impress economists, industrialists and the general public. ?The Budget talks about opening 75 new Industrial Training Institutes (ITIs) in the state. While this is a welcome development, the government fails to make the industry understand how it would offer employment to skilled labour passing out of the new ITIs when not many new industrial units are being set up in the state,? SB Agarwal, secretary- general, Associated Chamber of Commerce & Industry (ASOCHAM-UP) commented.

india Updated: Feb 16, 2006 01:22 IST

POPULIST announcements made in the state Budget no longer impress economists, industrialists and the general public.

“The Budget talks about opening 75 new Industrial Training Institutes (ITIs) in the state. While this is a welcome development, the government fails to make the industry understand how it would offer employment to skilled labour passing out of the new ITIs when not many new industrial units are being set up in the state,” SB Agarwal, secretary- general, Associated Chamber of Commerce & Industry (ASOCHAM-UP) commented.

KC Girotra, vice-chairman, CII-UP, welcomed the rehabilitation plans for key social infrastructure in the Budget. He, however, suggested sustaining such plans.

Rahul Mohnot, ED, Hindalco Industries Ltd, said the old age pension schemes could be routed through the LIC or a private insurance company for better delivery.

“There was no need for the government to announce plan for setting up of 75 new ITIs. The focus should have been on strengthening the infrastructure of the existing ITIs . There should have been more stress on quality of manpower being trained in the ITIs,” DS Verma, ED of the Indian Industries Association, commented.

“The announcement of generating 7,000 MW of power in the next six years an achievable target provided there is sufficient bureaucratic and political will to implement power policy in the state,” he added.

Ranvir Bajaj, president of the Avadh Chamber of Commerce and Industry, commented: “This is a political Budget. In its earlier Budgets the government had been talking of developing the small-scale sector. Over the years, the unemployment rate had only been growing in UP. It is one thing to announce something in the Budget and quite another to implement.”

Sudhakar Tiwari, convenor, PHD Chamber of Commerce & Industry, said the allocation made for infrastructure development initiatives in the area of road development and repairs besides construction and repair of state’s bridges is a welcome move. The most major move was the Delhi-Noida Metro Rail project, he said.

RP Sharma, vice-president, Hindalco Industries Ltd, said the most significant point was that Budget talked about resolving power shortage. “There is a need to prepare a concrete strategy to resolve the problem of power shortage in the short term.”

Rajeshwar Agarwal, secretary-general of the Lucknow Hotel & Restaurant Association, said: “The Rs 80 crore allocation for tourism promotion will remain merely an announcement unless money is spent in maintaining and repairing all the heritage sites. There is no mention of the luxury tax exemption in the Budget being demanded by the hospitality industry. These kinds of taxes only retard tourism growth in the state.”

Prof DM Diwakar of the Giri Institute of Development Studies said: “A very small quantum of Budget allocation actually goes into implementation of a project.

This is to say that only about 27- 40 per cent of the allocation is used in a department for implementation of announcements made in the Budget.”

First Published: Feb 16, 2006 01:22 IST