Date:21/12/2006 URL: http://www.thehindu.com/2006/12/21/stories/2006122115310300.htm

Kerala - Alappuzha

Call for debate on funding

Staff Reporter

Isaac sees competitive edge in knowledge-based industries

ALAPPUZHA: Finance Minister T.M. Thomas Isaac on Wednesday called for an open debate on ways to find capital for the future development of the State. He was speaking at a workshop organised by the Alappuzha municipality for preparing a master plan for sustainable development of the town.

Dr. Isaac said President A.P.J. Abdul Kalam had rightly called for a new direction to development initiatives of the State, but the question was how the State could find capital for starting new development projects.

Dr. Isaac said there was a consensus that the development plans of the State should be reoriented. He said the State had a competitive edge in the area of knowledge-based industries, including information technology, biotechnology and medical care.

On the overall development of the State in the last 50 years, Dr. Isaac said Kerala had made great strides in the education and health sectors and had implemented a large number of welfare schemes. But, the situation in agriculture and industrial sectors was pathetic. In the last seven years, the annual growth rate of agricultural production in the State was -3 per cent and the annual growth rate in the industrial sector was -0.1 per cent.

The Finance Minister said only the service sector had registered good growth. However, it was not production-related services, but consumer-related services that were growing at a fast pace. This was dependent on the inflow of income from foreign countries.

Dr. Isaac said the Union Government had various schemes to provide funds for specific projects of the State. But, Kerala had failed to submit proper

projects to the Centre in the past.

Minister for Local Self-Government Institutions Paloli Muhammed Kutty, who spoke at the function, said the State Government would provide all help to local

bodies to get funds from the Union Government and other agencies. Those who spoke at the function included K.C. Venugopal, MLA; and K.S. Manoj, MP.

Alappuzha municipal chairman P.P. Chitharanjan welcomed the participants.