The Hindu : Tenth Plan outlay for Gujarat finalised

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Saturday, Jun 15, 2002

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Tenth Plan outlay for Gujarat finalised

By Our Special Correspondent

NEW DELHI JUNE 14. The Planning Commission today pegged the 2002-03 annual plan for Gujarat at Rs. 7,600 crores and the Tenth Plan outlay for the State at Rs. 47,000 crores. These allocations were finalised at a meeting here between the Deputy Chairman of the Planning Commission, K. C. Pant, and the Gujarat Chief Minister, Narendra Modi. During the discussions, Mr. Modi said his administration would focus on the completion of the Sardar Sarovar Dam and the development of infrastructure during the Plan period.

Mr. Modi later told presspersons that the Commission had assured an additional assistance of Rs. 60 crores to the State. This assistance would be used for special priority schemes, including the Gokul Gram Yojna and Vidya Laxmi Yojna. An additional sum of Rs. 100 crores had also been sanctioned for the accelerated irrigation benefit project scheme.

In his presentation at the Commission, Mr. Modi said Gujarat was expecting Rs. 1,500 crores from the disinvestment of profit-making public sector units, Rs. 1,000 crores through savings in interest by retiring high cost debt on account of small savings, and Rs. 1,000 crores in non-tax revenue, mainly on account of revision of royalty on crude oil and user charges.

Additional attention would also be paid to the development of agriculture and agro-based industries, he said, adding that despite the natural calamities that the State had suffered, it had been able to achieve targets set in the Ninth Plan to a large extent.

Referring to the Sardar Sarovar project, Mr. Modi said that its completion was expected to boost the agricultural sector. He also sought the assistance of the participating States for the payment of dues of nearly Rs. 1,800 crores. Countering the criticism that the Godhra incident had led to a flight of investment from the State, he reiterated that post-Godhra, the State had attracted foreign direct investment worth Rs. 8,000 crores.

In his presentation, Mr. Pant expressed optimism that the State would achieve the targeted annual growth rate of 10.17 per cent in the Tenth Plan, but cautioned against excessive dependence on borrowings. Gujarat's growth rate had come down in the Ninth Plan and the resource mobilisation during the Plan period was estimated at about 84 per cent of the target, he said. The State administration was also advised to go in for the revision of transport fares and tariffs on power and rationalisation of taxation to improve the fiscal health of the State.

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Tenth Plan outlay for Gujarat finalised