Some of the Highlights of Tamilnadu Budget 2011-12

In Tamilnadu, AIADMK Government’s budget for the years 2011-12 was presented on 04th August 2011 in the Tamilnadu Legislative Assembly, by the Finance Minister, Mr.O.Panneerselvam.

The Budget has focused attention more on fulfilling the electoral promises of AIADMK.
The previous year’s revenue deficit of Rs. 2,720 crore has been eliminated and a marginal revenue surplus of Rs. 173.87 crores has been generated in this budget.For the first time the Budget Size has exceeded Rs 1 Lakh Crores.In the proposed Budget Funds of Rs 8900/- Crores have been allocated for New Schemes and Development Initiatives including:

  • Free Distribution of Electric Fans, Mixies and Wet Grinders- Rs 1250/- Crores,
  • Solar Powered Green House Scheme- Rs 1080/- Crores,
  • Chennai Mega City Development Mission- Rs 500/- Crores and
  • Cash Dole for Students of 10th Standard and Higer Secondary Classes- Rs 394/- Crores

The top most priority of the Government is to augment power supply.

As a policy, Tamil Nadu will also encourage private sector and joint venture investments to augment power supply.

The present installed capacity of the State was 10,237 megawatt (MW) with an average availability of 8,000 MW , while the demand ranged from 10,500 to 11,500 MW, creating a shortage of 2,500 MW to 3,500 MW.

The actual capacity addition in the last five years was only 206 MW.

It has been proposed to take up power generation projects of 3,800 MW at a cost of Rs. 22,800 Crores, either under the State sector or through joint venture as detailed below:

  • 800 MW Udangudi expansion project (cost: Rs.4,800 crore),
  • 1,600 MW Uppur thermal power project (Rs.9,600 crore),
  • 600 MW unit at Ennore (Rs.3,600 crore) and
  • 800 MW Tuticorin stage IV (Rs.4,800 crore), totalling Rs.22,800 crore.

The government will take appropriate measures to promote renewable energy, particularly solar energy.

A scheme has been envisaged to energise 1 lakh street lights with solar power, in 1,000 villages
at the rate of 20,000 lights per year, at a cost of Rs. 248 crores, which included Rs.56.40 crore as the Union government’s subsidy and Rs.191.60 crore of State funds.

In 2011, the government will energise 20,000 street lights , in 200 villages with solar power
at an estimated cost of Rs.49.60 crore (Union government’s subsidy: Rs.11.20 crore and the State’s share: Rs.38.40 crore).

The government has decided to gradually relax the R&C measures, depending upon the improvement in the power position.

“And the restriction and control (R&C) measures in power supply would be totally lifted throughout the State by August 2012.”For optimists, this is a good news for the people of Tamilnadu; that is the power cut will be totally lifted by next year,

And for the common people and pessimists, it is obviously clear that the Scheduled and Unscheduled Power-cuts will continue in Tamilnadu for another 1 year.

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