New
Delhi, February 17, 2005
Magha 27,
1926
The Annual Plan for Assam for the year 2005-2006 was finalized here today at a meeting between Planning Commission, Deputy Chairman Shri Montek Singh Ahluwalia and Chief Minister of Assam Shri Tarun Kumar Gogoi. The Annual Plan size has been agreed at Rs.3000 crores. This includes additional Central Assistance / Special Plan assistance of Rs. 300 crores for funding the reconstruction plan of the State linked to specific projects.
The Deputy Chairman complimented the State for plan performance and pointed out that focus should continue on agriculture, technical education, information technology and tourism to accelerate development process. He said the Central Government is working out a Plan to promote horticulture and the State Government should work towards taking optimum benefit from the scheme, which would involve improving quality of plants and creating marketing network. He said the State being moderately rich in mineral resources, should prepare a road map for sustainable and scientific development of these resources.
In the social sector, attention was drawn to high birth rate and Infant Mortality Rate (IMR). The State Government was advised to improve immunization coverage. High dropout rate and low percentage of trained teachers was pointed out for better attention. Emphasis should be on strengthening the delivery mechanism including autonomous councils. Further strengthening of self-help groups was also recommended.
The Members of the Commission were of the opinion that the roads are of poor quality and only 14 per cent of the road length was surfaced. It was pointed out that Central Government was aiming at improving road network in the country and the State Government should work towards supplementing this effort. Efforts are on to improve urban infrastructure and all State capitals would be extended conditional support for this purpose. The State government was also asked to draw a time bound action plan for 100 per cent rural electrification, as a large number of villages in the State are yet to be electrified. Under utilization of irrigation potential was also pointed out.
The Chief Minister pointed out that the State finances have been under strain for last several years. Lack of adequate investment, low rate of capital formation, perpetual problems of floods, weak communication and inability to utilize natural resources were responsible for slow development. He said North Eastern Region should be given exclusive policy back up to promote investments. A part of foreign exchange reserves can be more beneficially utilized for speeding up development activities in the State. Shri Gogoi said efforts were on to improve fiscal health and sales tax collections during the current year were expected to go up by Rs.300 crores. Computerization of tax collection system was in the process with ADB technical assistance.
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ORISSA ANNUAL PLAN FINALIZED
New
Delhi, February 16, 2005
Magha 27,
1926
The size of the annual plan for 2005-06 for the State of Orissa was finalized here today at a meeting between the Deputy Chairman Planning Commission, Sh Montek Singh Ahluwalia and the Chief Minister, Sh Navin Patnaik. The State will have a plan size of Rs.3, 000 crores. This would include additional; Central Assistance of Rs 68 crore, provided by the Deputy Chairman for projects of special interest to the State.
The Deputy Chairman, Planning Commission complemented the State for economic reforms and working towards creating investor friendly environment. He said the flow of central assistance to the States in various social sector programmes was likely to increase and the States like Orissa should prepare themselves to take advantage of the central initiatives. Mr. Montek Singh Ahluwalia said that center would support State efforts to encourage corporate investments in the State specially in mineral sector.
Members of the Commission were of the opinion that Orissa should improve plan implementation and reduce committed expenditure. Focused attention should be given to development of infrastructure for places of tourist importance. Reduction in the female mortality and increasing female literacy in backward pockets was also recommended. Emphasis should be on raising rural income through increased agricultural productivity, marketing arrangements, agro-based industry and development of horticulture and animal husbandry. It was pointed out that the State should introduce fast track approvals and master plans for development of roads, ports, power generation and transmission should be evolved for attracting more investments. There was urgent need to tackle prevailing sickness in industries and restructuring of public sector undertakings should be expedited.
Shri Patnaik, Chief Minister pointed out that the Sate was passing through a severe financial stress reflected in terms of its large revenue and fiscal deficit, huge debt burden and debt servicing liabilities. He said the unsustainable macro-financial imbalances have adversely affected the development performance, poverty reduction efforts and infrastructure and social sector investments. He said despite constraints the State has made consistent efforts at correcting the imbalances and enhancing performance. He said efforts were on to attract private sector investments and 25 memorandums of understanding with interested entrepreneurs have been signed.
The Chief Minister reiterated State’s demand to grant Special category status to the State. He also wanted that 12 per cent of the thermal power produced in the State should be given free to the State as in case of hydropower given to Himachal Pradesh. Ad valorem based royalty on major minerals was also requested.
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ARUNACHAL
PRADESH ANNUAL PLAN FINALIZED
New
Delhi, February 15, 2005
Magha 26,
1926
The Annual Plan for Arunachal Pradesh for the year 2005-2006 was finalized here today at a meeting between Deputy Chairman, Planning Commission Shri Montek Singh Ahluwalia and Chief Minister of Arunachal Pradesh, Shri Gegong Apang. The Plan outlay has been finalized at Rs.950 crore. This includes additional central assistance of Rs.30 crore provided for projects to tackle specific problems including Rs.5 crore for Taiwang Monastery. Special Plan assistance of Rs.30 crore for earmarked special projects was also approved. Improvement in resources arising from recommendations of Twelfth Finance Commission was also considered while finalizing Plan size.
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JAMMU
& KASHMIR ANNUAL PLAN 2005-06 FINALIZED
February
14, 2005
Magha 25,
1926
The Plan outlay for the year 2005-06 was finalized here today at a meeting between the Deputy Chairman, Planning Commission, Shri Montek Singh Ahluwalia and Chief Minister of Jammu & Kashmir, Shri Mufti Md. Syeed. In view of the special interest taken by the Prime Minister in accelerating pace of development the Planning Commission agreed to the State Government’s suggestion to fix the Plan size of Rs.4200 crores.
The Deputy Chairman, Planning Commission, complimented the State for successfully conducting the elections. He said the overwhelming response shown during the elections by the people need to be supplemented by national effort to realize expectation of the people of Kashmir. He said the positive trend has to continue and effort should be at the earliest visual confirmation of electoral commitments. He said the establishment of truly representative local government would create a base for better answerability and transparency.
Shri Montek Singh Ahluwalia said the Planning Commission was keen for timely implementation of Prime Minister’s package. Dr. Syeeda Hameed and Shri B.N. Yugandhar, Members of the Planning Commission have been asked to continuously monitor the progress. They will also help the State Government in identifying the Centrally Sponsored Schemes from which State can take more benefit. He said rural health mission being introduced by the Central Government could help the State Government in improving infrastructure in the rural areas.
Members of the Commission appreciated the State for land reforms and empowerment of local bodies. Women empowerment, improvement of health infrastructure and protection of bio-diversity was emphasized. It was pointed out that the State has good social indicators with low birth & death rate. Infant mortality rate (IMR) is 50 against 64 in the country but literacy rate is lower than the national average. The State was also advised to increase investments to accelerate growth rate.
The Chief Minister pointed out that after nearly 15 years of terrorism, the State was returning back to normalcy, which was clearly reflected by the response at the recent elections. He said the process is already on to carry out Panchayat elections. He said the State Government was working towards people’s participation in executing development plans. The generous support of the Central government and particularly interest shown by the Prime Minister in accelerating development process was appreciated. He said effort was to make administration more transparent and achieve growth rate higher than the national average through people’s participation.
Deputy Chief Minister, Shri Mangat Ram Sharma said the State Government was working towards providing necessary infrastructure in the urban areas. Industrial investment was reviving. Focus will be on balanced development. Fiscal reforms introduced have started giving positive results. Revenue surplus is up from Rs.128 crores in 2002-03 to Rs.798 crore in 2004-05 and during the same period fiscal deficit has gone down to 4.5 per cent of SDP from 8.5 per cent. From a primary deficit of Rs.722 crore, the State is now primary account surplus. He said the fiscal situation was better than other States in the category. Thrust was on maintenance expenditure and completion unfinished works.
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GUJARAT
ANNUAL PLAN 2005-06 FINALIZED
New
Delhi February 10, 2005
Magha 21,
1926
The Annual Plan for Gujarat for the year 2005-06 was finalized at a meeting, here today, between the Deputy Chairman Planning Commission, Shri Montek Singh Ahluwalia and the Chief Minister of Gujarat, Shri Narendra Modi. Plan size for the current year was agreed at Rs. 11000 crores.
Shri Montek Singh Ahluwalia appreciated the efforts being made by the State to improve enrolment of girl child, encouraging private sector participation in power sector and optimizing water use through introduction of Water Regulatory Authority and Drip Irrigation. He said the State should give focused attention to addressing the problem of regional disparities and encourage self-help groups. It was pointed out that though Gujarat was leading in industrialization but all districts had not equally benefited. Efforts should be made to further widen urbanization to make economic gains reach all areas of the State.
In a presentation, the Planning Commission pointed out that emphasis should be given to the creation of employment opportunities for educated youth. The education system should be made more skill oriented and linkages with industries should be established. Emphasis should be more on delivery of health care in remote areas. The agriculture sector needs new initiatives. These should include reducing cost of production and controlling inefficient use of natural resources. In the power sector efforts should be intensified to bridge the gap between cost of production and average tariff.
The presentation pointed out that Gujarat was in fiscal stress with outstanding liabilities of the State Government at Rs.53,071 crore at 2003-04 RE. Salary, pension and interest payment take away over 91 per cent of the total revenue receipts.
Briefing the Commission on the performance of the State, the Chief Minister Shri Modi said that through prudent financial management, the State has achieved right balance of managing fiscal deficit without affecting overall development plans. The State was concerned about the high debt and interest burden and steps were being taken to reduce interest debt through debt swap. He pointed out that revenue deficit has come down substantially during the last four years. Shri Modi said despite natural calamities over the last five years, the State has succeeded in increasing revenue receipts and controlling revenue expenditure through better tax compliance, revision of user charges, and reduction of subsidies and containment of expenditure. He said the cooperative movement has helped the State in achieving sustainable growth of agriculture development as well as trading and manufacturing activities.
During the next financial year highest priority will go to social services followed by irrigation and flood control energy, transport, agriculture and rural development. During the year focused attention will be given to development of infrastructure in urban areas. The year has already been declared as “urban year – 2005”. Concerted efforts would be made to improve roads, public transport, water supply, sewerage system and on improving the quality of urban poor.
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HIMACHAL
PRADESH ANNUAL PLAN 2005-06 FINALIZED
New
Delhi Februay 09,2005
Pausa 20,
1926
The Annual Plan for Himachal Pradesh for the year 2005-06 was finalized at a meeting, here, today between the Deputy Chairman Planning Commission, Shri Montek Singh Ahluwalia and the Chief Minister of Himachal Pradesh, Shri Virbhadra Singh. Plan size for the current year was agreed at Rs 1600 crores. This includes additional Central assistance and special plan assistance of Rs.400 crores. The Deputy Chairman also agreed to provide additional one-time market borrowings of Rs.32.71 crores.
The Deputy Chairman, Planning Commission, Shri Montek Singh Ahluwalia complimented the State for maintaining good growth rate and strong performance in the social sector. He said the State also needs appreciation for improving the forest cover. Shri Montek Singh Ahluwalia said the State has fiscal problems and high debt burden. The State should improve resources and compress non-plan expenditure and also make best use of the award of Twelfth Finance Commission.
Shri Ahluwalia said a number of States have drawn attention of the Commission towards the need for levying tax on electricity generation and also for compensation to protect forests. He said the Committee on energy policy set up by the Prime Minister would go in to the issue of levy on electricity generation. Attention of the Prime Minister would be drawn to the demand made by some States for compensation for forest protection.
He said the Himachal Pradesh Development Report released today would help the State in working out a road map for accelerating socio-economic development and tapping the inherent potential. The Report has been prepared under the supervision of a Core Committee, headed by Dr. (Mrs.) Syeda Hameed, Member of the Planning Commission. It reviews the State’s development experience and highlights issues critical for its future progress. Himachal Pradesh’s latent potential in hydel power, tourism, bio-business and its transformation in social sectors is well documented in the report.
Dr. (Mrs.) Syeda Hameed, Member Planning Commission drew the attention of the State to increasing evidence of AIDs, widening sex ratio and high incidence of Tuberculosis among women in the State. The State was also suggested to promote horticulture and improve processing facilities. It was pointed out that non-plan expenditure was high and the debt burden had more than double in five years. It was causing high interest burden and steps should be taken to further compress expenditure, cap borrowings and reduce dependence on borrowings.
Briefing the Commission on the performance of the State, the Chief Minister pointed out that efforts were on to improve fiscal position and a Public Service Tariff Board to operationalise cost recovery is in the offing. It would cover education, health, water supply and irrigation sectors. He said the tax incentives provided by the Central Government for setting up industrial units in Himachal Pradesh has helped the State in reviving industry and investments to the tune of Rs.8,000 crores are coming up. He said single window clearance for new industrial units has been introduced.
He said wide ranging revenue expenditure compression measures have been put in place and the State was committed to follow the path of fiscal reforms and a Legislation on Fiscal Responsibility and Budget Management will be introduced shortly.
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WEST
BENGAL ANNUAL PLAN FINALIZED
New
Delhi February 7, 2005
Magha 18,
1926
Annual Plan of West Bengal for the year 2005-06 was approved today at a meeting between the Deputy Chairman, Planning Commission, Mr Montek Singh Ahluwalia, and the Chief Minister of West Bengal, Mr Budhadeb Bhattacharya. The Annual Plan size was agreed at Rs 6,476 crore. This includes additional Central Assistance of Rs 100 crore for schemes of priority for the State.
The Deputy Chairman Planning appreciated the efforts made by the State Government to revive the financial health of the State. He said the rate of growth in agriculture sector was good. A strong power sector, along with a new approach to the industrial policy and land reforms, is a step in the right direction. He said special thrust on development social and physical infrastructure will help the State in creating an investment friendly environment.
He said Kolkata can be a gateway to South East Asia and the Chief Minister’s decision to set up a logistic hub in Kolkata-Haldia was a positive step in this direction. Mr Ahluwalia said a team from the Planning Commission led by member, Mr Anwarul Huda, will shortly visit the State to assess the central support required for realization of this project. He said the State Government should work towards further expansion of IT sector and make the State a hub center for healthcare, education and management services.
Members of the Commission drew attention of the State Government to the efforts being made by the Central Government to substantially improve infrastructure in the States. It was pointed out that the Kolkata airport would be among the airports being taken up for upgradation in the second leg. Other ambitious programmes in ports and roads sector would also substantially help the State in upgrading its physical infrastructure. Industrial policy being perused by the State was also appreciated.
It was also pointed out that the Prime Minister, Mr. Manmohan Singh, was keen on substantially improving the urban infrastructure and a substantial increase in the central support in this direction was likely. The Commission would shortly seek views of all States in this direction, as it would involve devolution of powers to the district authorities and reforms.
The Chief Minister of West Bengal briefed the Commission on the efforts being made to improve social and physical infrastructure and also to improve both tax and tax revenue generation. He sought central support in the State Government’s efforts to improve port connectivity. He said efforts were on to improve investment climate and public private partnership was being encouraged. Exclusive economic zones were being developed and expansion of business activities with South East Asian countries were being explored. It was pointed out that rigid guidelines were coming in the way of improving utilization of funds under Centrally sponsored schemes.
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PUNJAB
ANNUAL PLAN 2005-06 FINALIZED
New
Delhi February 01, 2005
Magha 12,
1926
Annual Plan of Punjab for the year 2005-2006 has been approved in a meeting between the Deputy Chairman, Planning Commission, Shri Montek Singh Ahluwalia and the Chief Minister of Punjab Captain Amarinder Singh, here today. The Annual Plan size was agreed at Rs.3550 crores. This includes additional Central assistance of Rs.50 crore for schemes and projects of priority to the State.
The Deputy Chairman, Planning Commission, complimented the State for maintaining good social indicators despite long period of disturbance. He said the Commission was fully aware of the impact of disturbances on economic growth and the Prime Minister would be briefed on the peculiar problems being faced by the State. He said the utilization of private funds has started improving and this year’s Plan proposal was more realistic.
Mr. Ahluwalia said Punjab has the potential to become a role modal of development for the country. It should evolve policies aimed at bringing about structural changes and a shift in the cropping pattern. Corporate farming and public private partnership in reconstruction / modernization of physical infrastructure should be encouraged. Shri Montek Singh Ahluwalia said the State government should involve industry for creating investment friendly environment. Power sector reforms, strengthening of State highways and link roads, urban development and drinking water supply should be given focused attention.
The Planning Commission drew the attention of the State to declining contribution of agriculture to the GSDP. It was pointed out that financial restructuring, tariff rationalization and infusion of competition among providers was needed to achieve desired objectives. Restructuring of Punjab Roadways with public private partnership was recommended. Attention was also drawn to the adverse sex ratio. It was pointed out that against the all-India average of 927 females per thousand males, Punjab had a ratio of 793.
The Chief Minister of Punjab briefed the Commission on the problems inherited by his government and steps taken to restore the State its lost prestigious position. He said the farmers are being persuaded to diversify the crop production pattern away from the rice wheat rotation. Raising of refinance limits by NABARD to Punjab State Cooperative Bank and State Agriculture Development Bank from 35 to 75 per cent was requested. The Chief Minister also suggested change in the criteria for allocation of funds for poverty alleviation programmes by the Government of India. Allocation of funds for maintenance of national highways needs to be enhanced. He said roads in the border districts of Punjab needs immediate up gradation.
He said the State government has taken up a programme of renovating State highways and all link roads in three years time and unbundling of power sector was under active consideration. He sought Planning Commission support in getting structural adjustment loans, which could facilitate in implementing policy initiatives aimed at accelerating growth. He said in five to six years time the State will have power generation of 45,000 MW and by June this year all 11 KV lines would be metered. Captain Amarinder Singh said efforts are on to regain investor’s confidence and pointed out that incentives being given for setting up industries in neighbouring States was taking away potential investors.
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