The Hindu : National : State's annual plan pegged at Rs. 31,050 crore

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State's annual plan pegged at Rs. 31,050 crore

Special Correspondent

It includes additional Central aid of Rs. 65 crore for special programmes

State's performance and achievements in social sector hailed
Energy sector is to get 13 per cent of the plan outlay

NEW DELHI: The annual plan for Karnataka for 2010-11 was on Tuesday pegged at Rs. 31,050 crore at a meeting here between Planning Commission Deputy Chairman Montek Singh Ahluwalia and State Chief Minister B.S. Yeddyurappa. The plan size includes an additional Central assistance of Rs. 65 crore for the State's special programmes.

Initiating discussions on finalising the plan size, Mr. Ahluwalia hailed the State Government for its performance and achievements in the social sector.

Innovative approach

The Government's innovative approach, he said, had helped the State in becoming a global economic player and highlighted the performance in the IT sector, biotechnology and software exports as laudable.

Water shortage

The Deputy Chairman pointed out that water shortage was becoming a matter of concern and all States had to work towards regulating use of the scarce commodity. Noting that the Planning Commission would focus on this issue in a major way during the Twelfth Plan period, he said the country was in need of an integrated water policy at the earliest.

While stressing the need for focussed attention to development of non-conventional sources of energy, particularly wind power, Mr Ahluwalia pointed out that concerted efforts were needed to further reduce the gender gap in education and minority development.

According to an official statement here, Karnataka has accorded priority to various sectors under which the energy sector is to get 13 per cent of the plan outlay for the new fiscal, transport 12.3 per cent, irrigation 11.3 per cent and education 7.8 per cent, while the major chunk of 45.4 per cent has been earmarked for the social sector. In terms of increase, urban development is to get 19.1 per cent more than what was allocated in 2009-10, while labour and employment would also have 15.4 per additional funding.

During the discussions, attention was also drawn to the findings of an expert committee headed by Suresh Tendulkar.

According to the report, Karnataka has achieved the sharpest poverty reduction among all southern States between 1993-94 and 2004-05. However, although rural poverty levels have declined significantly, the State has been unable to bring about a significant decline in urban poverty.

As for the major economic parameters, Karnataka is ranked ninth among all States with an increase in per capita income to Rs. 24,395 in 2008-09 from Rs. 18,115 in 2002-03. Employment in rural areas has increased at a faster pace than in urban areas and the State's literacy rate pegged at 66.64 per cent.

Alongside, however, while the gender gap in literacy has reduced from 22.92 in 1991 to 18.84 in 2001, it appears an uphill task for the State to achieve the target of reducing gender gap to 10 per cent by 2012.

In his briefing on the State's performance, Mr. Yeddyurappa sought the Planning Commission's intervention in allotment of captive coal blocks for Chhattisgarh, Yarmarus, Ediapur, Kudagi, Gulbarga and Belgaum power projects and urged that the Upper Bhadra project and desilting of the Tungabhadra reservoir be declared as national projects.

Apart from these issues, Mr. Yeddyurappa wanted a special package of Rs. 8,500 crore for taking up infrastructure projects in Bangalore and noted that funds for Right to Education should be in the ratio of 90:10.

He said the State needed to step up efforts in certain areas to achieve prosperity and development. Towards this end, initiatives taken to improve farm income included provision of crop loans at an interest rate of three per cent and encouragement to organic farming, he added.

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