Rs. 8,378-cr. annual Plan for State

By Our Special Correspondent

NEW DELHI, AUG.10. The Planning Commission today finalised a Rs. 8,378-crore Plan for Andhra Pradesh for 2001-2002, which was 9 per cent above the Plan approved last year.

Of the Rs. 8,378 crores approved, the State's own resources will be Rs. 3,233.72 crores and the balance will be by way of Central support to the State plan.

In his opening remarks, the Deputy Chairman of the Planning Commission, Mr.K.C. Pant, complimented the State for performance during the Ninth plan and appreciated the achievements, including the GSDP growth rate of 6.75 per cent, per capita income growth rate of 5.72 per cent, attracting 10.44 per cent of total private investments, tax collection efforts, economic reforms, particularly power sector restructuring, single window clearance of investment proposals, self-help groups, population control and E-governance.

Attention of the State was drawn to the financial crisis due to growing debt because of rising expenditure on subsidies, salaries and pensions. The State was suggested to pursue fiscal reforms and to take measures to reduce the burden on the exchequer because of losses incurred by public sector undertakings.

Mr. Naidu today also called on the Union Home Minister, Mr. L. K. Advani, and requested the Centre to write off Rs. 113.15 crores overdues payable by the State towards deployment of Central para military forces. With the Centre rejecting it, Andhra Pradesh requested it to consider writing off at least 50 per cent of the amount. The Home Minister agreed to release Rs. 72 crores for modernisation of the Police department.

The Agriculture Minister, Mr. Ajit Singh, said the request for allowing the private sector to build rural godowns would be taken up with the Planning Commission and discussed in the Cabinet. To a request for amendment to the Central Seed Act, the State was informed that efforts would be made to get the nod from Parliament. On the request for fodder and seed under the food-for-work programme, the Minister promised to examine the proposal while asking the State Government to submit a detailed report on the request for release of Rs. 6.4 crores for the Machilipatnam fishing harbour. The State would also get Rs. 7 crores for implementation of breeding programme through artificial insemination.

At a meeting with the Urban Development Minister, Mr. Jagmohan, the Centre agreed to sanction assistance to remaining seven of the 14 new towns for construction of shopping complexes under Centrally-sponsored schemes. The State was informed that allotment of land to the Government on Jaswant Singh Road in exchange of land under Hyderabad House would be cleared soon. AP was asked to prepare a master plan for the proposed urban housing scheme. The Centre agreed in principle to grant Rs. 20-crore assistance for urban sanitation projects in all urban local bodies of the State, including Hyderabad.

In another development, a memorandum of understanding was finalised between financial institutions and the A.P. Government to finance six independent power producers aggregating 2,239 MW.

It was signed by the A.P. Government, the Transmission Corporation of AP, the Power Finance Corporation and the Industrial Development Bank of India.

The MoU would now be submitted to the IDBI Board of Directors for final approval. The projects include those at Ramagundam, Vemagir, Jegurupadu, Samalkote, Peddapuram, and Konaseema.

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