All 32 districts in Tamil Nadu to be declared drought-hit

Land tax to be waived off for farmers

by Saher Naqvi

On 10 January 2017, Tamil Nadu chief minister (CM) O. Panneerselvam said that all 32 districts of the state would be declared drought-hit owing to the failure of the north-east monsoon in the state. This decision comes after reports from all districts were submitted to the state government.

He said that the state government would grant a solatium of Rs. 300,000 to families of each of the 17 farmers that had committed suicide in the last two months. In addition, detailed reports have been sought from respective district collectors regarding deaths reported in the media due to drought. Further compensation would be granted based on these reports.

The CM said that paddy farmers and those who had sowed other irrigated crops and have suffered over 33 per cent loss will be provided with Rs. 5,465 per acre as relief, while it will be Rs. 7,287 for long-term crops.

Efforts will also be taken to convert crop loans received to farmers from cooperative banks and commercial banks into medium term loans, as farmers would not be able to pay their loans. Land tax payable by farmers in all districts will also be waived completely. Crop cutting experiments would be undertaken to ensure that farmers received insurance claims.

He said that steps would be taken for providing crop insurance. In the past, the state government’s contribution to the crop insurance premium was Rs. 400 million but this year it would be Rs. 4.1 billion.

Paddy farmers suffering 100 per cent loss would be eligible for Rs. 21,500-Rs.26,000 per acre as crop insurance while in the Cauvery delta districts the sum was Rs. 25,000. Similarly, farmers who had raised other crops like maize and turmeric would also be eligible for crop insurance.

Furthermore, a sum of Rs. 34 billion would be spent for desilting reservoirs and channels and restoration of lakes, which would also ensure employment for farming workers. Working days under the National Rural Employment Guarantee Scheme would be increased to 150 days from the existing 100 days to ensure livelihood for farmers affected by drought.

In addition, a sum of Rs. 780 million would be spent for the fodder needs for cattle and funds to the tune of Rs. 1.6 billion would be earmarked for works towards improving resources for drinking water needs in urban areas through the Municipal Administration and Water Supply Department. Rs. 3.6 billion would be allocated for ensuring the same in rural areas through Rural Development and Panchayat Raj Department.

Rs. 50 million would be allocated to boost fodder and drinking water resources to the wildlife, while Rs. 250 million would be allocated to the Public Works Department for improving the ground water table and to boost drinking water resources.

References
1. http://www.deccanchronicle.com/nation/current-affairs/100117/cm-panneerselvam-declares-tn-drought-hit-waives-land-tax-for-farmers.html
2. http://www.thehindu.com/news/national/tamil-nadu/All-TN-districts-will-be-declared-drought-hit-Panneerselvam/article17018070.ece
CMIE STATISTICS
Unemployment Rate
Per cent
6.0 -0.1
Consumer Sentiments Index
Base September-December 2015
97.5 -0.4
Consumer Expectations Index
Base September-December 2015
98.0 -0.6
Current Economic Conditions Index
Base September-December 2015
96.8 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Mar 16 Jun 16 Sep 16 Dec 16
New projects 3.29 1.55 2.29 1.38
Completed projects 2.26 0.90 2.15 0.71
Stalled projects 1.04 1.27 0.35 0.42
Revived projects 0.63 0.38 0.51 0.17
Implementation stalled projects 0.92 0.50 0.57 0.79
Updated on: 20 Jan 2017 9:30AM
Quarterly Financials of Listed Companies
(% change) Dec 15 Mar 16 Jun 16 Sep 16
All listed Companies
 Income -5.1 -0.2 -0.9 2.0
 Expenses -4.8 0.9 -0.4 1.7
 Net profit -2.5 -29.1 -3.3 15.4
 PAT margin (%) 4.7 4.9 6.9 7.1
 Count of Cos. 4,432 4,347 4,297 4,201
Non-financial Companies
 Income -7.8 -2.1 -2.5 0.4
 Expenses -9.2 -3.9 -2.9 -0.3
 Net profit 44.6 4.9 10.3 25.3
 PAT margin (%) 5.5 6.2 7.4 7.0
 Net fixed assets 3.8 -8.6
 Current assets 3.1 8.4
 Current liabilities 10.6 11.2
 Borrowings 6.6 3.3
 Reserves & surplus 7.8 8.4
 Count of Cos. 3,486 3,430 3,398 3,323
Numbers are net of P&E
Updated on: 20 Jan 2017 9:38AM
Annual Financials of All Companies
(% change) FY13 FY14 FY15 FY16
All Companies
 Income 11.6 9.0 3.9 -0.2
 Expenses 11.8 9.0 3.9 -0.1
 Net profit -0.1 -3.9 1.5 -11.5
 PAT margin (%) 3.6 3.2 3.3 3.6
 Assets 14.0 12.1 8.8 7.6
 Net worth 9.4 9.3 8.1 6.1
 RONW (%) 6.8 6.1 6.1 5.8
 Count of Cos. 22,526 19,648 18,100 13,336
Non-financial Companies
 Income 10.7 8.5 2.8 -1.6
 Expenses 11.0 8.2 2.9 -2.6
 Net profit -10.6 -5.3 -5.8 15.6
 PAT margin (%) 2.4 2.1 2.2 3.3
 Net fixed assets 13.4 10.4 12.3 10.3
 Net worth 7.6 8.1 6.5 5.1
 RONW (%) 5.4 4.8 4.7 6.3
 Debt / Equity (times) 1.1 1.1 1.1 1.0
 Interest cover (times) 2.0 1.9 1.9 2.2
 Net working capital cycle (days) 69 69 68 68
 Count of Cos. 17,229 15,331 14,111 10,567
Numbers are net of P&E
Updated on: 20 Jan 2017 9:51AM

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