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When the President was rendered homeless… Gay abandon in pricing Colour-Chem’s colourful KRVS CII projects higher growth… GM Technology at last! Tribute – UCAL Selvan… When nations steal growth from one another… Airlines in India: cost and space Making ‘my Amaravati’... Naidu will soon build a new Hyderabad IAS invades NDDB... When online building permits work…. Where a state respects its litterateurs… Editor's Notes The why of tax incentives When TN politicians can emulate Kerala's Valli, they are more marginalised Paytm karo... Parliament in paralysis... The Ports’ Pasha expands into Tamil Nadu Demise of a media baron... EVM is tamper-proof Permanent secretariat for TN GIM Naidu’s return augurs well for Seemandhra Vibrant Gujarat WTO Meet: resolved to meet again Towards speedy justice The Swadeshi Trump Gas is the way forward Revive development banks... TN – agglomerate land holdings without alienating ownership Rahman at CIC Adapt Vajpayee dinner diplomacy Cement prices continue to rise… Delhi returns to BJP Multi-faceted Venkat R Sridhar steps down as CEO of Shriram Capital Plummeting profits of PSBs Contrarian cousins Tatas moving out of urea production... Remembering Indira Sivasailam... An inexplicable neglect Readers' Mail Modi storms Silicon Valley Telangana in top gear… The rise and fall of Annamalai University Insurance companies bleeding, yet no decision on increasing FDI limit! IPL type auction for VCs? Another Indian music maestro at the UN A yen for wastage… Which side are you, Montek? Like Hinduism: many paths to reach God... Solar, solar everywhere … Build close rapport with business leaders Infrastructure funding – lessons learnt Tax agriculture More Shakthi to Das’ elbow A professional at the helm of IRDA... TELANGANA at last…BUT Waning interest in public discussions… More heat than light Cleaning Ganga – relocate tanneries and install electric crematoria Tatas moving out of urea production... Liberal imports idling indigenous capacities Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai New IT products of Ramco in the pipeline… Eternal support for capitalisation of PS banks to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Marketing expert Balagopal is no more PC’s preference for professionals Not just in-laws (and outlaws); they’ve renowned academics at the helm! Should we change the official year? Banning booze... Sweeter prospects for sugar Reliance’s TV – 18 ready to launch Tamil News Channel Whistle-Stop Tour of Raghuram Rajan Shaming of Tamils by Tamil farmers at Delhi No engine for this car Tihar, Puzhal not different from Parappana Agrahara Preserving for the future Measuring roof tops in terms of KW/MW ONGC at KG Basin Alexa – Talking Wikipedia S Ramanathan – a versatile musician, musicologist No Maha Koottani in TN... A rich pool of talent not utilised…. GNS - 100: our first subscriber TN accounts for the largest recruits by the IT sector Small units prefers to remain small... Where is Rajaji? L&T- the specialty of special purpose vehicles Shale gas and its shallow future Dr C Rangarajan returns to Chennai A welcome initiative by the judiciary Inflation: are we emulating Argentina and Brazil? Put expensive assets created to use... Kinetic Karnataka All eyes on Sankara Nethralaya Of course, Gujarat is vibrant Delhi is distant… Return to king coal for urea... Come elections, come advertisements... Align crops to agro climate endowments… Wise Presidents Auto components surge… West Bengal: mindless malignancy Why land prices zoom in TN? A more liberated TN… Online not in line with brick and mortar businesses... Fortune 500 review The Jan Dhan bonanza London, London Narayan Mersal magnified Lesson from Chandrababu Naidu TN-leverage strength of BHEL, NLC... Modi and the lady Quality education through the PPP mode Adharma of opposition politics Things happen by accident and not by design... Fall in crude prices help in oil sector reform Tough task taking states together Limit foreign borrowings to hi-tech, export potential projects... Sri Lanka votes for change The ‘Ayyo-yes’ is no more Bihar – Nitish Kumar adopts the Lalu model The star of Spencers is no more An enemy’s enemy is a friend Building loyalty through the stomach …and of a popular trade leader Intellectual of rare qualities When Ratan Tata visited SRM Delhi Chalo... Delhi is distant Noble nonagenarians... Lalu’s envy, India’s pride Kudos to NDTV... Tribute – Manikam Ramaswami Cutting the nose to spite the face Shipping woes of Chennai companies IPL - no surprise this scam Shanti and Sadhana through Music Fuel for thought The nuclear option A glass full of corruption For whom the bell tolls? The Gulf aviation boom MHC should not return to its old indisciplined ways Mu Sigma – is no more Odisha: spectacular win by Naveen Patnaik Padma Bhushan for A Ramakrishna Kulandai was a giant Fortune for Indian Airlines When small is no larger beautiful.. For whom the MIDS bell tolls? L&T: focus on infrastructure and more infrastructure… The sea- saw battle continues... The balancing act How Air-India loses customs... More tributes to GR A friendly business group He saved millions from starvation... Discoms deserve better… There was flood of milk. Reason: no milk commissioner! A Grand Finale for SN’s MS centenary at the US… Tribute – M V Murugappan Silver Years of Madras Musings An informal presentation - analytical, forward locking... Excel Generators provide the vital back-up Road development slows down Make standards certification mandatory... Tribute Focus on quality of power - its only around 170-180V Pharma – overdose of copying Poor representation for Kerala and TN in Cabinet Wanted: a second airport for Chennai The few handicaps... Moily’s bold thrust Protest masters... F C Kohli - his concerns all embracing Air Asia India will set new benchmarks for budget travel More Shakti to resource mobilisation... S V Raju – a ‘good’ true liberal Bihar elections - the Rajaji formula worked Music happens Godspeed, Chief Minister JJ Why this malaise in medical education? Editor's Says Strengthen the base... Secularism and anti-Hinduism Medical costs hit the roof... Computation of GDP – conundrums continue A proud Madrasi No mega rail project for Tamil Nadu The power-full Hindujas Recognition to role of NBFCs.... Sweet news for TN sugar mills Welcome changes that testify to Jayalalithaa’s return to health Robber barons everywhere CSR and CMI: promise of another Srinivasan Ramanujan... Scientists urged to take up farmer-oriented research A Grand Finale for SN’s MS centenary at the US… Convulsions in The Hindu Quality silica from Neyveli The brown list of Venkitaramanan Land reclamation from sea appears cheaper! China invests in India The ‘Jayanthi Tax.’ Engineering seats go abegging A think tank for Chennai This scant respect for Law TIAM turns a full cycle Welcome thrust on trade in Modi’s foreign visits... Breaththrough in malaria control Polls and promises Boy, can you beat these? Five star activism stalls development activity Diamond jubilee of Egmore Samskrt School Nuclear power at the nucleus Russi Mody – a tribute He continues the focus on social amelioration A C Muthiah – his munificent bequeaths to science SoA @ 80 Roaring Ro-Ro facility The rise and rise of KCP TGS- The king storyteller CIPET hqrs to stay at Guindy – for the present? Funding the un-funded Increasing non co-operation of state leaders EEC at the National Media Centre Muffled voices for merit… B H Kothari - a tribute CRS, a jewel among managers, is no more. Maximising the micro pricing … Welcome focus on core competence PPP mode for upgrading Corporation Hospitals Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Poor quality of university VCs Solar thermal shines… Rs.1600 crore paper board plant of TNPL Revving up the manufacturing sector Haul over the coal Don’t seem to feel the pulse… Streamlining mandatory third party cover Welcome GST
 
Welcome GST

Strong leaders of regional political parties like J Jayalalithaa and Karunanidhi could defy attempts by the Centre to bring about significant policy changes. With the over-emphasis on welfare measures that result in the proliferation of freebies and massive subsidies, Tamil Nadu’s finances were in bad shape. Remember the state, refusing to reform the power sector? The state delayed the formation of the State Electricity Regulatory Commission, resisted separation of generation and distribution through separate companies (neighbouring Andhra Pradesh did this to great benefit)... The finances of the electricity board were in a mess with regular losses and mounting debts. Jayalalithaa as Chief Minister routinely resisted several proposals of the Centre to the detriment of the state’s economy. She was also unmindful of the harm done to the state’s economy by such an attitude. 

A weak Centre under the UPA, dependent on the support of several regional parties, was unable to prevail over such strong local leaders. Such an attitude has also been giving rise to agitations by special interest groups. We witnessed these in recent times in the opposition to the hydrocarbon project in Vadivasal, the constant agitations by lawyers, farmers and more recently, by government doctors and transport workers. One can witness the impact of a strong Central government with a single party commanding majority in the Lok Sabha. The Modi government has been able to stand firm and not yield to demands considered unfair. One hopes pressure groups would realise the futility of protesting issues that had received extensive support on the national plane. The state leadership should also weigh the overall benefits to society not influenced by demands of sectoral interests. 

The traders’ lobby has gained considerable support and clout in recent years. On 5 May of every year, traders’ associations across the state observe the traders day and show their solidarity by closing all shops! The association presents a list of demands seeking special favours. 

The services sector that includes such trading is estimated to account for over 60 per cent of the GDP, but it has been accounting for less than 10 per cent of total tax revenues. Despite substantial growth traders have been successfully resisting attempts to bring their operation under the tax net. 25 years ago Dr. Manmohan Singh, as finance minister, proposed a simple presumptive tax ,of just Rs. 1400 pa, with no questions asked on books kept. The trader lobby successfully resisted and forced the government to withdraw this tax. State governments also lack efforts in bringing this huge section, quite a portion of this prosperous, under the tax net. 

The GST system, one hopes, would address this issue. This single factor can increase tax revenues substantially. This is yet another area for the Centre to focus. 


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