TN CM submits memorandum to PM

Chennai, Nov 3 (UNI) Tamil Nadu Chief Minister M Karunanidhi today presented a memorandum to Prime Minister Manmohan Singh at the Raj Bhavan tonight.

In his memorandum, a copy of which was released to the press here tonight, Dr Karunanidhi underscored the importance of expanding and modernising the Chennai Airport, introducing high speed bullet trains on the Chennai-Coimbatore and Chennai-Madurai Corridors and development of Colachel Port as a major port on completion of draft feasibility report/detailed project report by the Sethusamudram Corporation Ltd.

Mr Karunanidhi also sought 100 per cent compensation for loss of revenue in 2007 when the Tamil Nadu Government will introduce the Value Added Tax, 75 per cent for calendar year 2008 and 50 per cent for calender year 2009.

Claiming the state may suffer a loss of Rs 2,600 crore during the first year of introduction of VAT, Mr Karunanidhi said the present compensation formula of the Centre (for VAT introduction) will adversely affect the resources of the state at a time when it was implementing its new welfare programmes.

The proposal to phase out of the Central Sales Tax (CST) beginning April 2007 will only add to the burden. Hence, the request for the revised compensation package.

The Chief Minister also sought financal assistance for setting up reverse osmosis plants to ensure zero discharge of effluents from tanneries, dyeing and bleaching industries in Tamil Nadu.

He also requested Central asssitance for filling the viability gap of Rs 1,481 crore to be faced by Chennai Metrowater, while setting up the 100 MLD desalination project.

Mr Karunanidhi also sought exemption from Excise and Customs Duties on colour television sets procured by the Tamil Nadu government for free distribution to households.

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