The Hindu : Andhra Pradesh News : Over 22 p.c. hike in State's Plan outlay

Online edition of India's National Newspaper
Friday, Apr 08, 2005

Andhra Pradesh

Andhra Pradesh

Over 22 p.c. hike in State's Plan outlay

By Our Special Correspondent

NEW DELHI, APRIL7. The Annual Plan outlay for Andhra Pradesh for 2005-2006 was finalised at Rs.15,650.77 crores at a meeting between the Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia, and the Chief Minister, Y.S. Rajasekhara Reddy, here today. This includes a one-time Central assistance of Rs.134.33 crores for priority projects of the State as also a subsidy of Rs.1,620.86 crores for the power sector.

The outlay for the current fiscal, according to State Government sources, marks an increase of 22.36 per cent over the previous year's outlay fixed at Rs. 12,790.43 crores.

During the discussions, Dr. Ahluwalia hailed the State's overall performance and, in particular, for substantially reducing the population below poverty line (BPL) through focused distribution of subsidised food grains. He also appreciated the State's efforts towards irrigation, but pointed out that prioritisation of projects was necessary to ensure time-bound results.

While Dr. Ahluwalia appreciated the State's efforts towards power sector management, the State Government agreed, as directed, to treat the power subsidy as non-Plan development expenditure as it was a grant towards the revenues of power utilities.

Power use

The Central support towards the Food-for-work (FFW) programme and the backward region grant fund (BRGF), to be operationalised shortly, Dr. Ahluwalia said, could be better utilised for water management in the under-developed regions of the State. He said the State should work towards efficient use of electricity and further strengthening of the Panchayati Raj institutions.

Industrialisation should also be promoted by continuing with the cluster development approach and infrastructure-building, he said. The State was also advised to promote public-private partnership in road and port sectors.

Commission members also drew the Chief Minister's attention towards the slowdown in the State GDP and, in particular, the growth in the agriculture sector. The State was advised to evolve a more practical water management policy and pay more attention to dry-land farming.

Speaking on the State's performance, the Chief Minister pointed out that his Government was according top priority to the development of the rural areas and reduction in regional imbalance. Agriculture and allied areas were on the priority list and projects were in the pipeline to increase the irrigation potential in the Telangana region by 35 lakh acres during the next four years, he said.

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