Gujarat Annual Plan of Rs. 38,000 crores for 2011-12 Finalized

The Plan outlay for Gujarat for the year 2011-12 was finalized at a meeting, here today, between the Deputy Chairman Planning Commission, Shri Montek Singh Ahluwalia and Chief Minister of Gujarat Mr Narendra Modi. The Annual Plan size was agreed at Rs. 38,000 crores.

Deputy Chairman Mr. Montek Singh Ahluwalia appreciated the efforts of the State Government in improving the pace of development and creating a investment friendly environment. He said especially commendable are the efforts aimed at imaginative use of public private partnership in major projects. He said the State Government’s performance in sectors including agriculture, education and power is appreciable. He said appreciable performance has been noticed in urbanization and industrialization.

On economic performance of the State, it was pointed out that although States’ GSDP for the last five years is around 10.3 per cent and growth rate continues to be better than the national average but there are fluctuations in the growth rate. Attention was also drawn to the steady fall in the agriculture and allied sector’s contribution.

The Commission appreciated achievements in modernising physical infrastructure but drew attention to the weakness in social sector. It was pointed out that more focused attention was needed in health sector where improvements are slow. It was pointed out that the Commission was in the process of finalizing approach for the 12th plan and is taking review of the ongoing schemes. Views of State Governments would facilitate the Commission in taking a more informed decision on the future of these schemes and also help in bringing about changes where ever needed.

In his response to the Commission on the development of Gujarat, Mr Modi pointed out that there has been a study rise in developmental expenditure over the last few years on account of greater public spending in education, health, nutrition, water supply, welfare of weaker sections, agriculture and irrigation; and by controlling non development expenditure through restructuring of debt, reduction in cost of borrowing and right sizing of staff etc.

He said for the current plan period around 42 per cent of plan allocation has been made for the social sector keeping in mind the overall objective of improving the human development index of the State. He exuded confidence that the State economy would grow at 11.2 per cent, target given to the State for the plan.

Mr Modi said during the 12th plan, Gujarat would seek to achieve sustainable double digit growth with uniform growth in agriculture, manufacturing and services with major focus on developing human development index.

Major highlights

-Planning Commission has increased Gujarat’s plan size for the current financial year 2011-2012 by 26.67 per cent to Rs.38,000-cr, which is higher than Rs.37,152.68-cr originally decided.

-Mr. Modi assured the plan panel that Gujarat would justify the hike in its annual plan size. He also exuded confidence that the state would achieve the 11.2 per cent growth rate during the current fiscal as mandated.

-Modi said the Gujarat Government would incorporate the projects like Rs.147-cr for scientific management of animal husbandry and improving the cattle breed, starting next generation day schools in tribal areas on the lines of ‘ashram shalas’ bringing boys from nearby areas in mini buses, connecting remotest areas in Dangs and Dahod with roads and drinking water facility, augmenting drip irrigation and upgrading health and hygienic facilities in 159 municipalities.

-Modi said that Gujarat has set high benchmarks for Twelfth Five Year Plan in Human Development Index (HDI), management of water resources, urban infrastructure, environment, solid wastes and waste water, besides desalination plants to be run on solar power.

-On the social fronts too, Modi said, Gujarat has included 2.25-lakh children from minority community for pre-Matriculation scholarships meant for tribal, Dalit and other backward classes. The minority populatio9n in Gujarat is 9.6 per cent but school enrollment 8.5 per cent, which excludes madarsas.

-Modi urged the Centre to incorporate 90 per cent fund to Gujarat under accelerated irrigation projects (AIBP) for Sardar Sarovar Narmada Project as it included Government of India’s Desert Development Project in Rajasthan.

-The Chief Minister criticized the reversal of federal structure of governance by the UPA Government, snatching the state’s autonomy and independence. The Centre is making laws, but leaving the onus of financing and implementing the projects on respective state governments.

-For instance, he said, Gujarat is not getting corresponding funds for having implemented ‘Sarva Shiksha Abhiyan’ since 2003, having appointed 1.45-lakh teachers, having built 19,000 classrooms and spent a whopping amount of Rs.16,000-cr. Under the Rights to Education Act, Gujarat has appointed another 90,000 teachers, 80,000 classrooms, having incurred an additional burden of Rs.8,000-cr. Over 90 per cent of private schools in Gujarat running on PPP model get government grants, for which the Centre has allocated just one per cent fund under National Secondary School Abhiyan.

-He said on the one hand non-major ports of the Gujarat Maritime Board (GMB) handle 73 per cent of maritime cargo and plan to increase the capacity to 1,000 MTPA, but on the other hand Centre framed a Port Regulatory Bill, put it on the website, without consulting Gujarat.

-Modi said the Centre’s is deliberately delaying announcement to lift ban on raw cotton export has caused the Gujarat farmers a loss of Rs.6,000-cr. In a similar step-motherly treatment towards Gujarat, Centre allocated 91,000 tonnes less of DAP fertilizers. Metros like Delhi and Mumbai get CNG at reduced rates from KG Basin, but expect Gujarat to get it imported. Centre imposed a 33 per cent cut in kerosene quota, showing false statistics about LPG connections.

-Mr. Modi wished the Centre adapts some of the Gujarat models of success stories for the larger benefit of the nation, such as decentralization of administration up to taluka level (ATVT), the Rs.5,000-cr ‘Mission Mangalm’ project for 2-lakh sakhi mandals (women’s self-help groups), and setting new benchmarks in poverty alleviations, empowerment of people.

-Others present from Gujarat side at the meeting included Ministers of State for Finance and Planning Saurabh Patel and Ranjit Gilitwala, Chief Secretary A.K. Joti and senior Secretaries.