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‘TN govt may get into reform mode after local body polls’

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3 years ago

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Palanivel-Thiaga-Rajan

The DMK-led Tamil Nadu government may get into reform mode post the local body elections likely to be held by the end of 2021, say party leaders and industry experts.

“Though a white paper on the Tamil Nadu government finances spoke about the necessity to hike tax rates and other things for those who can bear it, the state budget that was presented was a usual one. Perhaps the state government may get into reform mode after the local body elections,” K.C. Palanisamy, former AIADMK MP and MLA, told IANS.

Palanisamy said the local body elections may be held before the end of 2021 or February 2022.

Finance Minister Palanivel Thiaga Rajan after declaring ‘once in a generation reforms a must’ and ‘business as usual’ approach cannot continue while presenting the white paper on the state government’s finances, came out with a relatively populist budget.

As per the white paper, reforms/restructuring in state government undertakings, statutory boards, power utilities, mobilisation of tax revenues, mode of subsidy deliveries were on the cards.

“As a debutant Finance Minister, he might have taken a soft approach with his first budget which is an interim budget,” Palanisamy said.

Industry experts said Finance Minister Rajan’s budget is nothing but a status quo or an extension of the previous AIADMK government’s budget.

“The white paper set the expectation that the Finance Minister will provide a reform budget to reduce the state debt. One could agree that he needed more time to come up with the actual reforms but least expected was the transformation roadmap, a timeline,” Sriram Seshadri, Founder and Managing Partner, Disha Consulting and formerly Partner and Managing Director, Accenture India, told IANS.

According to him, a white paper lays down the problem, analysis, probable solution.

On the other hand, the government’s white paper laid out the problem statement which was well known and the expectations were there on reform proposals in the budget which surprisingly did not happen, Seshadri said.

“As an economist, I feel satisfied that the budget didn’t provide for any of the poll promises. For an economist the white paper gave an expectation that there would be a reform and transformation roadmap but the budget was disappointing,” he added.

According to him, nothing was there in the budget for beefing up the state revenues while the debt was increasing.

“Tamil Nadu will cross the debt of Rs six lakh crore mark by 2021 end. Only solace is during the budget discussions in the state Assembly, the Finance Minister has said some of the poll promises will not be met such as revising the old pension scheme for government employees,” Seshadri added.

He said if there is a reform agenda with the DMK government it has to be rolled out soon and not wait for the next year’s budget.

However, he agreed that the government will take some reform steps mainly targeted subsidies to poor sections of the society, refine the rules for ration cards and revenue optimisation initiatives like tax reforms.

“Already Tamil Nadu’s economy is the fourth largest in the country and will slip to fifth or sixth place soon. Hence, the state should regain the momentum, cut the red tape and enable ease of doing business both in MSME and large industries,” Seshadri said.

While the government’s popularity endures it should take some tough decisions to reduce government spending, disinvestment and make announcements to attract investment, he said.

“Sterlite Copper (copper smelter unit of Vedanta Ltd in Tuticorin) closure is one of the stumbling blocks for investors to invest in a big way because there is no guarantee to their investment. The government should enable reopening of Sterlite within the guidelines of the pollution control norms. Likewise closely monitor to optimize revenue on the natural resources, mining and sand. The government gets less than Rs 1,000 crore revenue whereas the potential is much higher,” he added.

However, the signs of change in the government are seen in the budget by not implementing its populist poll promises like Rs 1,000 per month dole to the female head of the family.

“Instead the government had decided to conduct a study to identify eligible beneficiaries. This move is new as in the past the state government used to disburse financial assistance for almost all ration card holders,” K. Puhazhendi, Director, Perfint Healthcare, told IANS.

Referring to Rajan’s statement that the governance will be data-based, Puhazhendi said the government can mine data available in its own departments/municipal corporations.

The smart ration cards are linked with Aadhar cards.

Puhazendhi said the government employees themselves form a big database so that undeserved subsidies can be stopped.

“Data on property taxpayers, land owners, vehicle registrations, power consumers, ration card holders, data about government employees, shops and business establishments, factories and other data are available with different departments,” Puhazhendi said.

The government can collate and gather from the people with help of door-to-door data gathering. This could be a starting point to build a database and target the subsidies and other government schemes, he added.

Stressing that the government’s focus should be on making each department, municipal corporations self-financing, Puhazhendi called for a freeze on government hiring and investment should be made in information technology systems to digitise the services.

It is high time the state government goes in for public-private partnership in the tourism sector. The state government owns several hotel properties which are in need of private investment and management.

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Tata Motors Unveils Limited-Edition Safari STEALTH to Mark 27 Years of Legacy

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1 day ago

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February 21, 2025

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Tata Motors is celebrating 27 years of the Safari with the launch of the exclusive STEALTH Edition, a limited-run variant designed for those who seek style and performance. Available in both the Harrier and Safari models, only 2,700 units of this edition will be produced. The Harrier STEALTH is priced at Rs 25.09 lakh (ex-showroom, Delhi), while the Safari STEALTH starts at Rs 25.74 lakh (ex-showroom, Delhi) and is offered in both 6- and 7-seater configurations. With a striking design, premium features, and advanced technology, the STEALTH Edition adds a new level of exclusivity to Tata’s SUV lineup.

The Tata STEALTH Edition brings a bold, monotone design that reflects the growing demand for exclusive and distinctive vehicles. With limited units available, this special edition is set to attract enthusiasts looking for a unique SUV. Bookings for the STEALTH Edition opened on February 21, both online and at Tata dealerships across India, giving customers the chance to own a rare and stylish addition to Tata’s lineup.

The Harrier and Safari STEALTH Edition stand out with their bold design and advanced features, built on the sturdy OMEGARC platform derived from Land Rover’s D8 architecture. The exclusive Matte Black finish, R19 Black Alloy Wheels, and a distinctive STEALTH mascot give these SUVs a powerful road presence. Inside, the cabin is designed for comfort with ventilated first- and second-row seats (Safari only for the second row), a Carbon-Noir interior theme, and a voice-assisted dual-zone climate control system.

Technology is a highlight, featuring a 31.24 cm Harman touchscreen, Arcade App Store, Alexa Home 2 Car, Map My India navigation, and a 10-speaker JBL audio system with Harman AudioworX. Power comes from a 2.0L KRYOTEC BS6 Phase 2 turbocharged engine producing 170PS, paired with a 6-speed automatic transmission. Safety is a priority, with Level 2+ ADAS offering 21 functions, including a segment-first Intelligent Speed Assist, along with 7 airbags and ESP with 17 safety features.

Unveiling this exciting new version of the Harrier and Safari, Vivek Srivatsa, Chief Commercial Officer, Tata Passenger Electric Mobility Ltd., stated, “Tata Motors has been a leader in the Indian SUV segment, with innovation at its core. The Tata Safari, which introduced the concept of a lifestyle SUV to India, reflects this legacy of pioneering excellence. Over 27 remarkable years, the Safari has constantly evolved, and the launch of the STEALTH Edition is a tribute to this journey. This special edition is an exclusive offering, with only 2,700 units available in the striking STEALTH Matte Black finish. More than just an SUV, the STEALTH Edition is a symbol of prestige, adventure, and capability, making it a highly desirable collector’s item for enthusiasts and connoisseurs. Owning a STEALTH Edition isn’t just about having an extraordinary vehicle—it’s about claiming a piece of automotive history that many will aspire to have in their collection.”

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Maruti Suzuki’s New Mid-Term Plan Aims To Make India An Export Hub, Launch More EVs

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2 days ago

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February 20, 2025

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New Delhi: The Suzuki Motor Corporation of Japan, the parent company of Maruti Suzuki India, on Thursday announced a new mid-term plan with a “rethink” in its strategy as “the business environment has changed due to declining market share in India” and the growing electrical vehicles segment.

In its new mid-term plan for 2025-30, the company has identified India as its “most important market”. Maruti Suzuki aims to create a manufacturing capacity of producing 4 million cars annually to reclaim a 50 per cent market share in India and use the country as a global export hub as well.

The auto major plans to expand its EV lineup starting with the e-Vitara, and is aiming to launch four new EV models by FY30 in a segment where its rivals like Tata Motors and Mahindra & Mahindra already have a varied EV portfolio in India.

“In India, we will promote further localisation in line with the growth of the electric vehicle market,” the company said.

Maruti Suzuki is currently exporting three lakh vehicles from India annually. By the end of this decade, it is targeting the export of 7.5-8 lakh units per year.

While the company noted it achieved revenue and profit targets ahead of schedule by improving sales mix and quality, its sales volume target could not be met.

It noted that the “competitive environment is becoming increasingly severe, and the quality of product functions, equipment and services required by customers is increasing”.

It aims to be India’s no.1 carmaker in terms of production, local sales and exports of electric cars. A total of six electric vehicles will be introduced by FY30, including four electric cars and two commercial vehicles.

Suzuki Motor plans to invest 1,200 billion yen (about Rs 7,000 crore) as capital expenditure towards production, new models, carbon neutrality and quality measures. A new plant in Haryana’s Kharkhoda and an assembly line in Suzuki Motor Gujarat will come onstream by 2030 for a total installed capacity of four million units.

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‘Made in India’ iPhone 6e not SE variant but a next-gen entry point for consumers

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2 days ago

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February 20, 2025

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New Delhi, Feb 20: In a further push to the local manufacturing, the entire iPhone 16 lineup, including the newly-launched iPhone 16e, is now being assembled in India for domestic market as well as for exports, as industry experts on Thursday cleared the air around the new device being compared to now-retired iPhone SE.

The new Apple device, with A18 chip, breakthrough battery life, Apple Intelligence, and a 48MP 2-in-1 camera system, is being manufactured/assembled for local consumption as well as for export to select countries.

According to experts, iPhone 16e is not iPhone SE4 and the whole “comparison is futile”.

When iPhone SE was launched, it was another masterstroke at that time. However, times have changed since then.

“Essentially, Apple retired the SE lineup and extended the iPhone 16 lineup with a new entry point. iPhone SE was no longer adding any value to consumers, developers or Apple,” said Neil Shah, Partner and Co-Founder at Counterpoint Research.

The iPhone SE which was positioned as a “Special Edition,” which brought nostalgia of older and smaller design, was priced around $400.

However, the iPhone SE lost its value and popularity, which used to be once 16 per cent of the total iPhone sales volumes, dropped to 1 per cent last year.

According to Shah, consumers now prefer better cameras, bigger displays and faster processors.

“With all this background, what Apple did was to extend the 16 series with a newer ‘base version’ of iPhone 16 and now retired SE,” Shah explained.

According to industry experts, the company has done well with streamlining the series, reducing fragmentation in design and experience and able to charge $599 (US)/Rs 59,999 (India) with the newest entry point for the best Apple experiences.

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