The Hindu : Karnataka / Bangalore News : Take private sector on board for accelerated growth: report

Online edition of India's National Newspaper
Saturday, Jan 07, 2006

Karnataka

Karnataka - Bangalore

Take private sector on board for accelerated growth: report

Special Correspondent

`Mobilisation of resources possible only with private participation'

BANGALORE: The Karnataka Development Report (KDR) has recommended to the State Government to step up investment in infrastructure, agriculture and social sectors for accelerating growth and eliminating regional imbalances.

For infrastructure development, it has suggested mobilisation of resources with active participation of the private sector on a "build-operator-transfer," and "build-own-operate-transfer" basis.

The policy will not only reduce the financial burden on the State but ensure efficiency and accountability.

Decline

The share of agriculture has declined from 34.29 per cent of the State Gross Domestic Product (SGDP) in 1994-95 to 22.36 per cent in 2002-03.

The major causes for this are stagnancy in agricultural technology, drought-proneness of northern region and lack of crop diversification. The report, which was prepared with the financial support from the Planning Commission, was submitted to its Deputy Chairman Montek Singh Aluwalia a few months ago.

The economists and farm scientists of various institutions stressed on the need for policy changes in different sectors. It stated that capital formation in the agriculture sector must grow at the rate of more than 5 per cent per annum to supplement the aggregate growth of the sector.

The farm credit has not been supporting the growth rate as it did during the Seventies and Eighties and it has a telling effect on capital formation and lack of infrastructure in the sector, said R.S. Deshpande, professor and head, Agricultural Development and Rural Transformation unit of Institute for Social and Economic Change (ISEC) here.

The report, containing 18 chapters, was prepared by 20 experts from five major institutions — ISEC, Indian Institute of Management, National Institute of Advanced Studies, Institution of Agricultural Technologists, all in Bangalore and the Centre for Multi-Disciplinary Development Research, Dharwad.

For enhancement of investments in research and development and agricultural extension, experts stressed on the need to mobilise Rs. 100 crores annually.

In spite of crop yield improvements in drought-prone areas, the development gap between Green Revolution and drought-prone regions has widened.

Weak institutional and policy support was singled out as the most important factor impeding the progress of agriculture in drought-prone regions.

Weak delivery

The delivery of agricultural services in rural areas has been weak, Prof. Deshpande said and recommended strengthening of Krishi Vigyan Kendras, Raitha Samparka Kendras and establishment of biotechnology parks for marine resource development.

Stating that thrust be given for industry and infrastructure development, the report said that at least 1.5 lakh jobs can be created annually in new industrial units and development of industrial parks by attracting private and foreign direct investment.

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