The Hindu Business Line : TN annual Plan outlay fixed at Rs 9,100 cr

The Tamil Nadu Chief Minister, Ms J. Jayalalithaa, calling on the Planning Commission Deputy Chairman, Dr Montek Singh Ahluwalia, in the Capital on Tuesday. — Ramesh Sharma

New Delhi , Nov. 30

THE annual Plan outlay for Tamil Nadu for 2005-06 has been fixed at Rs 9,100 crore, against the current fiscal outlay of Rs 8,001 crore. This includes Rs 100 crore for one-time special assistance for special programme.

The annual Plan size for the State was determined here today at a meeting between the Tamil Nadu Chief Minister, Ms J. Jayalalithaa, and the Deputy Chairman of Planning Commission, Dr Montek Singh Ahluwalia, which lasted for one-and-a-half hours.

Ms Jayalalithaa told reporters at Yojana Bhawan later "we wanted Rs 9,100 crore and we got it. We are happy about the Planning Commission decision".

In his remarks, Dr Ahluwalia complimented the State Government for undertaking reforms in various sectors but voiced concern over comparatively low growth rate.

He said subsidy in the power sector should be rationalised and diversification in the farm sector should be expedited with modernisation of the farm produce marketing system.

He said Tamil Nadu could be a major tourism destination in view of the geographical location if more efforts were made to develop infrastructure by making available land for more hotel room accommodation.

He also urged the Chief Minister to adopt perspective planning for improving urban infrastructure. The Chief Minister endorsed the idea of Dr Ahluwalia on "carefully utilising a portion of the foreign exchange reserves to build infrastructure and thereby once again kick start the growth process which has been seriously affected by successive droughts."

The Chief Minister said that the strategy for rapid economic development of the State includes reinvigorating agricultural growth, improving the investment climate to facilitate accelerated growth in manufacturing and services, achieving fiscal correction and stabilisation and above all ensuring poverty reduction.

Ms Jayalalithaa told the Plan panel that a water-starved State like Tamil Nadu does not get neglected because of the current guidelines under the Accelerated Irrigation Benefit Programme (AIPB), particularly when there is a significant step-up in the allocation for this programme. She sought an annual allocation of Rs 200 crore under this programme to Tamil Nadu with a revised set of guidelines.

She also demanded the restoration of due assistance under Accelerated Power Development Reform Programme (APDRP) to the State.

Stating that the Tamil Nadu Government had forwarded two proposals for the development of the "Eastern Ghats" and the "coastal areas" at a cost of Rs 411 crore and Rs 263.50 crore respectively for special funding to the Plan panel, Ms Jayalalithaa urged the Commission to consider the proposals, which would conserve natural resources and preserve the ecology of these areas.