Strengthening infrastructure for job creation in the state: Haryana CM Khattar

Haryana, which contributes around 3.8 per cent to the national gross domestic product (GDP) is intending to strengthen infrastructure for creating more employment opportunities for the unemployed people because of the COVID-19 pandemic, Haryana Chief Minister Manohar Lal Khattar told Business Today in an exclusive interview.

“In order to create more jobs, we are intending to cover several key areas that includes providing incentives to industries for engagement of apprentices as workers after completion of apprenticeship training, reduction of cost and time of compliance of the enterprises, improving access to credit/loan, improving connectivity between MSME clusters, conducting gap studies for self-employment and Entrepreneur Development programmes, career counselling programmes, etc.," CM Khattar told Business Today.

According to the CMIE data last year, Haryana had the highest unemployment rate in the country at 34 per cent, followed by Rajasthan and Jharkhand. However, the state refuted the findings of CMIE.

Chief Minister Khattar also argued that this year’s Budget has put emphasis on infrastructure and capex expansion as the key which will assist states in catalysing the overall investments in the economy.

The Union Budget proposed a 50-year, interest-free loan of Rs 1 lakh crore to states to enable them to spend on capital investments, especially in infrastructure, under the PM GatiShakti Master Plan during 2022-23.

“This Union Government has enhanced outlay for ‘Scheme for Financial Assistance to States for Capital Investment’ and allocated Rs 1 lakh crore to assist the states in catalysing investments in economy which will further help states and Haryana will witness a significant growth path over the years,” he added.

Throwing light on the states roadmap to use Rs 1 lakh crore, interest free loan announced in the Union Budget 2022-2023 by Finance Minister Nirmala Sitharaman,  Khattar said that the fund will be used to ramp up infrastructure in Haryana. “To augment rail infrastructure and enhance rail connectivity to un-served regions of the State, 'Haryana Orbital Rail Corridor' is being taken up at an estimated cost of Rs. 5618 crores. This 122 km electrified double railway line will bypass Sohna-Manesar-Kharkhoda-Delhi and connect Palwal to Harsana Kalan. This line will serve as a feeder line for Dedicated Freight Corridor and shall contribute to the industrial growth of Haryana,” Khattar said.

Speaking on the efforts to improve ease of doing business in Haryana, CM Khattar also pointed out that “Haryana is one of the 15 states that have successfully completed the 'Ease of Doing Business' (EoDB) reforms and continues to put efforts to improve the investment friendly business climate in the State. The State is also actively working for the 'Minimizing Regulatory Compliance' mandate of the Government of India.”

In 2020, the Haryana government had launched its Haryana Enterprises & Employment Policy, 2020 which envisions propelling the state’s industrial growth story. Through the incentives in the policy, it aimed to attract investment of Rs. 1 lakh crore and generate 5 lakh jobs in the state.  

Talking about the fiscal position of the state, CM Khattar said that the state has ably managed to keep its fiscal deficit to GSDP ratio and debt – GSDP ratio below the FRBM target even during the pandemic.

“The state government was able to maintain the fiscal deficit at 2.90 per cent of the GSDP as against the permissible limit of 5 per cent for the 2020-21. Also, we have successfully contained the debt liability.  Debt to GSDP ratio is estimated at 23.27 per cent in 2020-21 RE. For next year 2021-22 BE it has been estimated at 25.92 per cent. This is much less than the stipulated limit of 32.6 per cent of GSDP recommended by Fifteenth Finance Commission for 2021-22,” Chief Minister Khattar said.

In a bid to attract industry and investment, the chief minister said that the state is setting up new industrial cluster in every block with the goal of one-block-one product. This cluster infrastructure development will benefit industries and generate employment.