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Punjab Annual Plan fixed at Rs. 4,000 crores

Special Correspondent

Additional Central assistance of Rs. 100 crores for the State's priority projects approved

NEW DELHI: The Annual Plan for Punjab for 2006-07 was finalised at Rs. 4,000 crores at a meeting here on Tuesday between Planning Commission Deputy Chairman Montek Singh Ahluwalia and State Chief Minister Amarinder Singh. Included in the approved outlay is an additional Central assistance of Rs. 100 crores for the State's priority projects.

During the discussions, Dr Ahluwalia lauded the State Government for having revived economic activities and reversing the falling growth trend in the State. He noted that an investor-friendly environment had been created in the State as a result of which all sectors of the economy -- primary, secondary and tertiary -- had shown commendable growth. Besides, with a very low poverty rate, the State's per capita income was among the highest in the country, he said.

Dr. Ahluwalia also hailed the State's efforts towards creation of a world-class infrastructure along with the initiatives aimed at improving its rural economy such as introduction of organic farming and crop diversification. The Commission advised the State Government to evolve an integrated land use policy for revival of interest in agriculture.

Although the State has a strong Planning Board, it was pointed out that further strengthening of the planning process at the district level would speed up development. While appreciating the State's efforts towards correcting the adverse sex ratio and reducing the rate of drop-outs, it was noted that its ambitious policy for industrialisation should not come in the way of adequate steps to protect the environment.

The Chief Minister told the Commission that his Government had taken a number of measures to revive the economy. "Over the last two years, these steps attracted Rs. 52,000 crores in investment and would provide employment to 10 lakh people."

Of the nine special economic zones being set up, one would be at Amritsar entailing a cost of Rs 7,270 crores which would generate employment for 55,000 persons. Business activity, he said, was also on the rise with industrial exports going up from Rs 4,000 crores in 2001 to about Rs 12,000 crores in the current fiscal.

Capt. Singh also informed Commission members that private players such as Reliance, Bharti and ITC had come in with investments in a big way following the State's initiatives aimed at improving agriculture. Alongside, economic corridors were being set up at Ludhiana and Mohali to boost the economy of the State and Rs 100 crores had been set apart for improving the infrastructure in the two cities.

Wheat price hike sought

The Punjab Chief Minister also had a meeting with Union Agriculture Minister Sharad Pawar and demanded a minimum increase of Rs. 50 in the MSP (minimum support price) for wheat. The MSP for wheat, Capt. Singh said, should be fixed at Rs. 700 a quintal as against Rs. 650 a quintal pegged for the 2005-06 crop season. This, he said, was essential in view of the steep increase in the cost of cultivation.

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Punjab Annual Plan fixed at Rs. 4,000 crores

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