Annual plan for Karnataka agreed at Rs 31,050 crore

Karnataka Chief Minister B.S. Yeddyurappa meeting the Deputy Chairman, Planning Commission, Montek Singh Ahluwalia to finalize Annual Plan 2010-11 of the State, in New Delhi on March 09, 2010.

The Annual Plan for Karnataka for 2010-11 was fixed at Rs 31,050 crore at a meeting here today between Planning Commission Deputy Chairman Montek Singh Ahluwalia and Chief Minister B S Yeddyurappa.

An official press release said this included central assistance of Rs 65 crore for programmes of special assistance to the State.

During the discussions, Mr. Ahluwalia complimented the State for its Plan performance and achievements in the social sector. He said the innovative approach had helped the State in becoming the country’s global economic player. He said the State's performance in the information technology (IT) sector, bio-technology and software exports was laudable.

The Deputy Chairman said water shortage was becoming a matter of concern and all States needed to work towards regulating water use. He said the Planning Commission would have a major focus on this issue in its XIIth Plan and stressed the country needed an integrated water policy at the earliest.

He also pointed out that more focus should be given to non-conventional sources of energy particularly wind energy. Concerted efforts were needed to further reduce the gender gap in education and minority development, he said.

The meeting took note of the fact that the State had given priority to model supply with an allocation of 25.2 per cent in the Plan. The energy sector will get 13 per cent, transport 12.3 per cent, irrigation 11.3 per cent and education 7.8 per cent of the outlay. The social sector will have 45.4 per cent of the total outlay. In terms of increase, urban development will get 19.1 per cent more than last year's allocation while labour and employment will have 15.4 per cent additional funds.

The discussions also referred to the findings of the expert committee headed by economist Suresh Tendulkar. According to the report, Karnataka has achieved the sharpest poverty reduction amongst Southern States between 1993-94 and 2004-05. Though rural poverty levels have declined significantly, the State was unable to bring about a significant decline in urban poverty.

The per capita income has increased from Rs.18,115 to Rs.24,395 from 2002-03 to 2008-09 and the State is ranked 9th among all the States. Employment in rural areas has increased more than in urban areas. The State's literacy rate is 66.64 at the end of Eleventh Plan. Though 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.

Mr Yeddyurappa wanted the Planning Commission's intervention in captive coal block allotments various power projects. He said the Upper Bhadra Project and de-silting of Tungbhadra reservoir should be declared as national projects.

He said a special package of Rs.8500 crore should be given for taking up infrastructure projects in Bangalore and 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 in order to achieve prosperity and development.

He said the initiatives taken to improve agriculture income include providing crop loans at an interest rate of 3 per cent rate and promoting organic farming.

NNN