THIRUVANANTHAPURAM: The Rangrajan Committee was set up to revive the COVID-19 stricken economy of Tamil Nadu. The committee has recommended Government of Tamil Nadu to develop a program for urban employment guarantee scheme, on the lines of Mahatma Gandhi national Rural Guarantee Scheme (MGNREGS). The committee had 24 members and was headed by C Rangrajan, ex-Governor, Reserve Bank of India (RBI). It submitted the report to Edappadi Palaniswami, Chief Minister, Kerala on Tuesday, September 22, 2020.
The committee suggested the government to increase the expenditure by Rs 10,000 crore and spend around Rs 3,200 crore to support construction workers and take the economy back to the path of growth. Rangrajan said that the estimated growth rate of the state was around 1.71 per cent in 2021, but the number is expected to contract. He recommended that the rural guarantee scheme should be extended to urban areas, additional 5,000 crore should be given to the revenue department and state government should use the 3,200 crore in the construction workers’ welfare fund.
On the sector of industries, the committee has suggested to increase the funding of Tamil Nadu Industrial Investment Corporation to Rs 1,000 crore. Rangrajan also recommended setting up of industrial parks and industrial townships as well as bringing the credit guarantee scheme for the small-scale industries.
The terms of reference of the committee were to examine the complete, immediate and mid term impact of the pandemic on various sectors, also considering the opportunities and risks in short and medium term, measures needed to revive the important sectors, reform measures from the state government and promote growth of the economy. It was formed to examine the impact of pandemic on the state economy and fiscal situation.