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Sinha speaks out against inter-state tax competition, foresees bright future for Gujarat

Union Finance Minister Yashwant Sinha has stressed the need to avoid inter-state competition, rate and tax wars in order to attract foreign investments and added that there should a limitation on granting the concessions.

Speaking at the launch ceremony of Gujarat Infrastructure Agenda -- Vision 2010, Sinha said there is a need for having similar tax structure in all the states and added that a committee of several state chief ministers, including West Bengal Chief Minister Jyoti Basu, has been set up to look into chalking out similar tax structure.

''There is a limit for granting concessions and entering into tax war,'' observed the finance minister. He further said concessions and incentives should be realistic.

Sinha described the plan chalked out by the state government as ''practical and achievable''. Citing the situation prevailing ten years before, Sinha said at that time most of the projects were state run and mostly the projects used to be overrun in cost and time.

Private sector's and government's combined participation would be boon for the development. He said as per the plan chalked out by the Gujarat government, out of the total investment of Rs 1.16 trillion by 2010 AD, 30 per cent would be done by the government.

He said now the government should play the role of facilitator and also added that there should be a coordination between state and the Central government.

Union Home Minister L K Advani, who paid the surprise visit to the ceremony hall in Gandhinagar, said, several policies in the past had created bad impact on the industrial investment and added that now the situation was improving.

Advani, who represented Gandhinagar in the 12th Lok Sabha, said Gujarat had remarkable progress in industrial sector and it would continue to do so.

Gujarat Chief Minister Keshubhai Patel said that the policy of private participation in the development was started in Gujarat in 1990 when he was holding the port department. He said though it was said that the policy of liberalisation started in the country from 1991, Gujarat had already started the same in 1990.

Patel also said that Gujarat continues to attract maximum investment in the country.

Gujarat Industries Minister Sureshchandra Mehta said with the implementation of this programme, Gujarat will become a state with world class infrastructure and facilities.

Gujarat Chief Secretary LNS Mukundan also spoke on the occasion.

Vision 2010 is the blueprint for a prosperous Gujarat and as per the plan, there are 383 infrastructure projects with an investment of Rs 1.16 trillion will be implemented in next ten years.

Investment in power will be Rs 551.67 billion, in ports Rs 122.88 billion, industrial parks Rs 50.45 billion, roads Rs 199.51 billion, urban infrastructure Rs 64.42 billion, water Rs 70.87 billion, airports Rs 4 billion, gas grid Rs 36.78 billion and information infrastructure Rs 4 billion. Of the total investment, Rs 950 billion is envisaged from the private sector.

There had been a total industrial investment of $ 30 billion in Gujarat since its formation 39 years ago and now the commencement of Vision 2010 projects it would have an additional investment of $ 30 billion in just ten years.

In 1995, Gujarat infrastructure development board was formed and Chief Minister Keshubhai Patel is the chairman of the same. GIDB is the nodal agency, which ensures that the development of infrastructure in Gujarat takes place as planned.

Gujarat is the first state to have promulgated Gujarat Infrastructure Ordinance -- build, operate and transfer law of the state, which will protect the interests of the investor through an enforceable law while also protecting public interest.

UNI

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