58. As this Government is known to be easily accessible to industrialists, many new industrial units are being established in the State. After this Government came to power, Memoranda of Understanding have been signed with eight major Industrial Houses, namely Motorola, Apollo Tyres, Tessolve, Dell Computers, Growth Link, Samsung, Mahindra-Renault-Nissan and Caparo, involving industrial investments to the tune of Rs.6,985 crores. It is expected that these projects would provide direct and indirect employment to about 96,000 persons. As the crowning glory of achievements of this Government’s Industrial Policy, a Memorandum of Understanding (MoU) was signed on 26.2.2007 between the Government of Tamil Nadu and a consortium consisting of Mahindra and Mahindra of our country, Renault of France and Nissan of Japan for establishing jointly a large car manufacturing facility at Oragadam near Chennai with an investment of Rs.4,000 crores. After Ford and Hyundai, this is the largest car manufacturing facility being established in Tamil Nadu. With this, Tamil Nadu has regained the top position it had lost in automobile and automotive component manufacturing.

59. Two new shipyards are proposed to be established with an investment of Rs.3,700 crores in the private sector in Chennai Ennore Port area and Cuddalore district. This will provide employment to about 25,000 youth in these areas.

60. With a view to ensuring full utilisation of the graphite deposits in Sivaganga, steps will be taken to establish another graphite industrial unit using superior beneficiation technology of international standard by the Tamil Nadu Minerals Limited as a joint venture project with suitable co-promoter.

61. There are several areas in our State, where industries can be established without affecting agriculture, with potential to provide employment to thousands of persons. As opined by His Excellency the President of India, there is nothing wrong in establishing Special Economic Zones in such areas, after excluding the lands suitable for agriculture, without in any way affecting common people. Accordingly, with a view to promoting establishment of new industries in the southern districts which have more of such lands a Special Economic Zone will be established in Virudhunagar district.

62. The Special Economic Zone at Nanguneri, conceived and established by the late Union Minister Murasoli Maran to promote the industrial development of the southern districts, has been revived. A new additional private co-promoter has been inducted and the process of acquiring additional land required for this SEZ is nearing completion.

63. As a result of the focused and determined efforts of the State Government, Tamil Nadu has emerged as a leading state in the manufacture of electronic products, telecommunication equipments and computers. The decision of major companies like Samsung, Motorola and Dell Computer to establish their manufacturing units in Tamil Nadu is a major accomplishment of the industrial policy of this Government. The recently announced Semi-conductor policy of the Union Government will facilitate the establishment of Fab facility for manufacture of high technology Integrated Circuit Chips in our country, especially in Tamil Nadu.

64. Having regard to the fact that the Software industry is providing employment to thousands of youth in our State, this Government has been supporting this industry. In furtherance of this Government’s policy that Software companies must be set up not only in Chennai, but also in the other major cities of the State, the Hon’ble Chief Minister laid the foundation stone for an Information Technology Park at Coimbatore on 24.2.2007. In addition, as stated by the Hon’ble Chief Minister in that function, land has already been placed at the disposal of ELCOT for establishing Information Technology Parks at Madurai, Trichy and Salem. Land has also been earmarked at Tirunelveli for setting up an Information Technology Park. Bids have been called for the establishment of a second Tidel Park at Taramani in Chennai.

65. Women graduates and engineers from all over Tamil Nadu are working in the various Software and Information Technology Enabled Service industries in Chennai. With the objective of providing them safe accommodation with modern facilities, the Government has decided to construct a large Working Women’s Hostel Complex, availing financial assistance under the Working Women’s Hostel Scheme of Government of India.

66. The first phase of the scheme for distribution of free colour televisions sets, which was promised in the election manifesto, has been successfully completed by distributing 30,000 colour televisions residing in Periyar Memorial Samuthuvapurams. In the second phase of the scheme, 25 lakh colour television sets have been procured at a cost of Rs.685 crores in a transparent manner, through international competitive bidding, with the approval of a committee comprising of representatives of political parties in the legislature, and these colour television sets are being distributed, free of cost, across the state. The implementation of this scheme will continue in the coming years also and it will be ensured that there is no home without a colour television in Tamil Nadu. A provision of Rs.750 crores has been made for this scheme for 2007-2008.

67. The scheme of granting capital subsidy for small scale industries established in industrially backward regions, implemented by the DMK Government and subsequently discontinued by the previous Government, has been revived. Rs.20 crores has been provided for 2007-2008 for providing capital subsidy to entrepreneurs who establish small scale industries in industrially backward blocks.

68. With a view to rejuvenating the tea estates in the Nilgiris district and modernising co-operative tea factories thereby enabling them to produce quality tea and enhancing the income of tea growers, this Government will implement a major scheme with an outlay of Rs.89 crores with financial assistance from the Tea Board of Government of India.

69. With the objective of converting all single lane State Highways into double lane roads, road widening and improvement works in 1,518 kms of State Highways have been undertaken at a cost of Rs.410 crores during 2006-2007. Remaining 3,052 kms of State Highways will be converted into double lane roads in the coming years. A total provision of Rs.2,698 crores has been made in the Budget 2007-2008, as the capital outlay on development of roads and bridges. In addition, a sum of Rs.829 crores has been allocated for proper maintenance of roads.

70. During 2001-2006, only 9 Railway Over Bridges (ROBs) were completed. In contrast, in 2006-2007 alone, this Government has accorded administrative sanction for 25 ROBs at an estimated cost of Rs.410 crores. In 2007-2008, another 39 ROB works will be sanctioned and taken up for execution at a cost of Rs.500 crores.

71. In tune with the growth of Tamil Nadu economy, demand for power has been increasing. This Government has been taking various measures to set up new power projects to meet this demand. The announcement of the Union Government that four more nuclear reactors with a capacity of 4,000 MW will be set up in Koodankulam in Tirunelveli District, in addition to the 2,000 MW project for which construction is already underway, provides great fillip to the growth of major industries in southern districts while meeting the future energy needs of Tamil Nadu. The additional nuclear reactors will be established within the land already acquired without resorting to any additional land acquisition. I am happy to inform that the Rs.26,000 crores of additional investment by Union Government for this purpose will be the largest investment by the Union Government in Tamil Nadu in the recent times.

72. Tamil Nadu is the largest producer of wind energy in the Country. The total capacity of wind power in Tamil Nadu is estimated to be 3,400 MW by the end of March 2007.

73. 10,206 new buses were purchased by the State Transport Undertakings by the DMK Government during 1996-2001. However, during the tenure of the previous Government from 2001-2006, only 5,608 new buses were purchased. Reversing this trend, during the very first year of the DMK Government with Rs.100 crores of financial assistance by the Government, procurement orders have been given for 2,230 new buses and till now, 1,498 new buses have been brought into service. The remaining new buses will be received shortly. In the coming financial year, 3,000 new buses will be purchased at a cost of Rs.350 crores. A sum of Rs.150 crores has been provided for this purpose in this Budget as financial assistance from the Government. Having regard to the transport needs of people living in sub-urban areas, plying of buses has been extended up to 50 Kms in Chennai Metropolitan area and 35 Kms in other Municipal Corporations.

74. In recent times, there has been a rapid growth in air transport in our State. Therefore, the State Government has been considering the options of expansion of the existing Chennai Airport or a new Airport near Chennai. An appropriate decision will be taken soon. In addition, the expansion of Coimbatore, Madurai, Trichy and Tuticorin Airports is very essential to handle the increasing air traffic in these airports. The Airport Authority of India has requested the State Government to provide the land required for expansion of these airports. Accepting this request, the Government will provide the land required for expansion of these airports to the Airport Authority of India.

75. As a permanent solution to the traffic congestion problem of Chennai city, this Government has decided to implement the Metro Rail Project at a cost of about Rs.9,000 crores. The project, comprising of two rail corridors, will have a total length of 49 Kms and will commence operations within 5 years. The detailed project report for this project has been prepared by Delhi Metro Rail Corporation and submitted to Government recently. A provision of Rs.50 crores is made in this Budget to undertake the preliminary works for this special scheme.

76. The second phase of the Mass Rapid Transit System, extending from Luz Mylapore to Velachery, is nearing completion. Realising that the full benefit of this project can be harnessed only if it is extended up to St. Thomas Mount, Tamil Nadu Government has conveyed to Union Government its concurrence to bear two-thirds of the cost of this project estimated at Rs.416 crores. An allocation of Rs.20 crores has been made in this Budget as the contribution of this Government to this project for the year 2007-2008.

77. This Government is paying special attention for improving the basic amenities in the rapidly growing urban areas. As a result of the efforts taken by this Government, schemes worth Rs.2,470 crores have been sanctioned under Jawaharlal Nehru National Urban Renewal Mission (JNNURM), covering areas like drinking water, sewerage, solid waste management, housing for poor, slum improvement and roads. For Chennai city alone, sanction has been accorded for eight schemes at an estimated cost of Rs.1,060 crores. Seven schemes have been sanctioned for Madurai city at an estimated cost of Rs.284 crores. This includes the Second Vaigai Water Supply Improvement Project with an outlay of Rs.59 crores and Madurai City Solid Waste Management Project with an outlay of Rs.74 crores. Six projects have been sanctioned for Coimbatore involving a total cost of Rs.501 crores. This includes the Coimbatore Drinking Water Project at a cost of Rs.114 crores and Solid Waste Management Project at a cost of Rs.97 crores. In addition, financial assistance will be given as grants to urban local bodies for converting all the remaining earthen roads in municipal areas into black topped roads.

78. This Government recognises the importance of sewerage in environmental protection and public health. Therefore, the Government has decided to implement underground sewerage schemes in all district headquarter towns in the first phase and in all municipalities in the next phase. The total provision for Municipal Administration and Water Supply Department in this Budget is Rs.2,661 crores.

79. A survey has been conducted in 2006-2007 on the drinking water availability in rural habitations of Tamil Nadu and it has been found that out of the 86,981 rural habitations in the State, the average daily per capita availability of drinking water is below 40 litres in 36,452 habitations. It will be ensured in the next four years that all such habitations are provided with adequate protected water supply. 7,000 rural habitations have been provided with protected water supply during the current year. During 2007-2008, schemes will be undertaken to provide adequate protected water supply in 9,000 such habitations. A sum of Rs.411 crores has been provided for this purpose.

80. On 30.1.2007, the Hon’ble Chief Minister has laid the foundation stone for the Ramanathapuram Combined Water Supply Scheme, at an estimated cost of Rs.616 crores as a permanent solution to the drinking water problems of Ramanathapuram, Pudukkottai and Sivagangai districts. The Hogenekal Water Supply Scheme, which is the only solution for the drinking water problem of Dharmapuri and Krishnagiri districts has been recommended by Government of India to Japan Bank for International Co-operation (JBIC) for financial assistance. A team of experts from JBIC had recently conducted preliminary appraisal of the Project in these districts. Treating this project as a challenge, this Government will implement this project with determination.

81. During the current year, 60 combined water supply schemes have been executed at a total cost of Rs.363 crores benefiting 20 lakh persons. During 2007-2008, 50 combined water supply schemes will be executed at a cost of Rs.626 crores benefiting 36 lakh persons.

82. Water supply improvement scheme works have been completed in 55 towns benefiting 15 lakh persons at a cost of Rs.161 crores during the current year. During the coming year, water supply improvement schemes will be executed in 60 more towns and brought into use at a cost of Rs.389 crores.

83. City Corporations like Chennai, Madurai and Coimbatore have already been facing the pressure of population. The Government foresees this situation worsening further in a few years. People in these cities are already experiencing hardships due to traffic congestion. This current situation calls for an immediate planned response to ensure that these cities remain livable with pollution free and congestion free ambience, so that the future generations do not curse us. Keeping these aspects in mind, the Government will constitute a State Level City Corporations Traffic and Transportation Improvement Advisory Committee, with Sub Committees each for Chennai, Madurai and Coimbatore. This Committee will recommend traffic and transportation solutions for these cities. This Committee will also plan for expanding the jurisdiction of these cities with the ultimate objective of making urban life pollution and congestion free. A provision of Rs.200 crores has been made in the first phase, for taking up various initiatives for achieving the above said objectives.

84. With a view to achieving a permanent solution to the drinking water problem in Chennai, works for setting up a desalination plant with a capacity of 100 million litres per day, have commenced on 25.2.2007. In addition, the Government proposes to set up another desalination plant with 100 million litres per day capacity with Central assistance and land has been identified for the same on Chennai-Mamallapuram road. The preparation of the detailed project report for the same is currently underway.

85. In the coming year, a scheme to improve the water supply infrastructure of Chennai city will be implemented at an estimated cost of Rs.337 crores by the Chennai Water Supply and Sewerage Board under the Jawaharlal Nehru National Urban Renewal Mission. This will ensure equitable distribution of drinking water in all parts of the city. In addition, a scheme to upgrade the solid waste management system in Chennai city will be implemented at a cost of Rs.255 crores.

86. A water supply and sewerage scheme intended to benefit the residential areas and software parks on the Information Technology Expressway (Old Mamallapuram Road) will be executed at a project cost of Rs.42 crores and completed within one year.

87. With a view to developing the estuary of Adyar river and taking care to protect the flora and fauna of the area, a park with all modern amenities will be established at an estimated cost of Rs.100 crores. Detailed project report for the same is under preparation. As announced by the Hon’ble Chief Minister, beautification of Marina Beach, Secretariat area and Elliot’s Beach in Chennai will be taken up by the Chennai Corporation at a cost of Rs.25 crores.

88. Availing the assistance of Rs.250 crores recommended by the 12^th Finance Commission, 17,000 tenements with all infrastructural facilities will be constructed in slum areas by the Tamil Nadu Slum Clearance Board which was founded for the first time in the country by the DMK Government in 1971. The Tamil Nadu Slum Clearance Board will construct 13,000 tenements for the tsunami affected fishermen families living in urban slums at a cost of Rs.295 crores. In addition, 40,000 houses will be constructed in the slum areas of Chennai, Madurai and Coimbatore Corporations and other Municipalities and Town Panchayats.

89. With a view to ensuring all basic amenities to the rural population within just 5 years, this Government has launched the ‘Anaithu Grama Anna Marumalarchi Thittam’. Under this major scheme, works for providing basic infrastructure will be taken up in all the 12,618 village panchayats of the State with an allocation of Rs.20 lakh for each village panchayat. The Hon’ble Chief Minister had inaugurated this scheme on 21.1.2007 and development works are underway in 2,540 villages in the current year. In the coming financial year also, rural infrastructure development works will be taken up in 2,534 villages at a cost of Rs.507 crores.

90. As a result of the efforts of this Government, the Centrally sponsored National Rural Employment Guarantee Programme (NREGP) is being effectively implemented in six districts of the State namely, Cuddalore, Dindigul, Nagapattinam, Sivagangai, Tiruvannamalai and Viluppuram. Minimum wage has been ensured for all the beneficiaries and the programme is operating successfully. The fact that, out of the 5 lakh families who have benefited under this programme incurring an expenditure of Rs.108 crores, 56% are Adi-dravidar families and 82% of the beneficiaries are women goes to prove that the objective of this scheme to provide succour to the poor has been fully achieved. Another positive impact of the scheme is the fact that the daily wage rate of agricultural labourers has risen in the districts where this programme is being implemented. I am happy to announce that, accepting the request of our Hon’ble Chief Minister Kalaignar to extend this scheme to other districts also, the Government of India has agreed to extend this scheme to Tirunelveli, Thanjavur, Tiruvarur and Karur districts also. Totally, a sum of Rs.3,471 crores has been allocated for the Rural Development and Local Administration Department in this Budget.

91. When the Panchayat Raj legislation , the dream of young Prime Minister, late Thiru Rajiv Gandhi, was enacted after a countrywide debate, it was the then DMK Government that had conducted elections to local bodies for the first time and thus ensured that these bodies, based on the principle of decentralization of power, had a permanent role in the State’s polity. The Third State Finance Commission has made detailed recommendations about decentralization of powers and devolution of funds to these local bodies. This Government will devolve sufficient funds to the local bodies to ensure the smooth movement of the wheels of Local Self Government,

92. The State Government is providing financial support to local bodies under three main heads which are devolution from the state’s own tax revenue, assigned revenues and assistance for the various schemes. Having regard to the fact the transfers from the State Government constitute the lion’s share of the finances of the Local Bodies, the Government has decided to increase the amount of devolution from 8% to 9% of the state’s own tax revenue in the next financial year. This increase, coupled with the expected buoyancy in the state’s revenues, would raise the share of local bodies from Rs.2,112 crores in 2006-2007 to Rs.2,734 crores to in 2007-2008. As a result of this single measure alone, local bodies will receive an additional Rs.622 crores. The percentage of devolution will be progressively increased to 10 % within the award period of the Third State Finance Commission. In addition, assigned revenues will increase from Rs.752 crores in 2006-2007 to Rs.919 crores in 2007-2008. Apart from this, Rs.1,292 crores will be provided to local bodies as assistance for various schemes in the next financial year.

93. A total sum of Rs.4,278 crores has been provided to local bodies in the form of devolution, assigned revenues and schematic assistance in 2006-2007. In the coming financial year, 2007-2008, the total fund transfer to the local bodies under the above heads will be Rs.4,945 crores. In addition, while functions like primary education, public health and rural water supply infrastructure which are discharged by local bodies in some States, the situation in our State is that the State Government has to shoulder these functions. The State Government will be incurring another Rs.4,224 crores for discharge of these functions. Therefore, Hon’ble Members may note that the total financial assistance to local bodies coupled with the Government’s expenditure on certain functions which are supposed to be discharged by the local bodies, amounts to Rs.9,169 crores. This would constitute 30% of the State’s own tax revenue. The recommendations of the Third State Finance Commission on various aspects like decentralization of powers, devolution of funds, tax system, etc along with a report on the action taken by the Government on these recommendations will be placed before the Legislative Assembly in this session itself.

94. In the year 2000, the DMK Government had announced and implemented a revolutionary scheme for grant of house site pattas to poor people who were residing for more than ten years in houses constructed in Government poramboke lands. This Government has revived this scheme and ordered to issue house site pattas to eligible persons within six months. If necessary, this time limit will be extended and house site pattas granted.

95. A new office complex will be constructed in Salem at an estimated cost of Rs.25 crores for the District Collector’s Office and offices of various departments which are presently functioning in very old buildings. In addition, at an estimated cost of Rs.11.4 crores, office buildings will be constructed for eight new Taluks, namely, Gangavalli, Kunda, Veerakeralampudur, Pandalur, Kariyapatti, Ilappur, Vazhappadi and Thottiyam, where the Taluk offices are presently functioning in private buildings. Thus, we shall ensure that there is no Taluk Office without own building in Tamil Nadu.

96. The process of delimitation of Parliamentary and Legislative Assembly constituencies is currently underway and therefore, the Government is not presently in a position to implement its announcement regarding the re-establishment of Ariyalur district. This district will be established and district administration will commence functioning immediately after the conclusion of the delimitation process. Taking cognizance of the demands for creating new districts on the basis of Legislative Assembly constituencies, this Government accepts these demands in principle and accordingly new districts will be created after the completion of the delimitation process.

97. Although a sum of Rs.4,897 crores was available from the Central Government for Tsunami rehabilitation works under the Rajiv Gandhi Rehabilitation Package and externally aided projects, the previous Government merely undertook immediate relief and did not take up permanent reconstruction. This Government has taken cognizance of this situation and has expedited Tsunami reconstruction works. In sharp contrast to the situation at the time of review by the Hon’ble Chief Minister on 24.6.2006 when only 8,406 houses had been completed, at present, as on 19.3.2007, 22,420 permanent houses have been constructed and works are underway to complete the remaining houses. The Government has also decided to construct on its own the 3,000 houses which were supposed to be constructed by NGOs but were not constructed by them. In addition, in order to protect the poor coastal population including fishermen who are highly vulnerable to natural calamities like cyclone, flood and tsunami, the Government has decided to construct permanent houses for the people residing in the 52,000 huts which are within one km of the sea. The Government has ordered the construction of 22,000 houses with Central assistance and works are underway. The remaining 30,000 houses will be constructed with the approval of the World Bank.