The Hindu Business Line : Kerala's annual Plan outlay fixed at Rs 5,369 crore

THE annual Plan size of Kerala for 2005-06 has been fixed at Rs 5,369 crore, with a tacit assurance that the projects proposed by the State over and above the outlay would be considered separately by the Planning Commission, depending upon the availability of resources.

At a meeting between the Planning Commission Deputy Chairman, Dr Montek Singh Ahluwalia, and the Chief Minister, Mr Oommen Chandy, it was stated that Kerala is likely to achieve 85-90 per cent of the outlay for the 10th Plan.

The State was lauded for sound performance in social and physical infrastructure, and was told that it must prepare to become the role model for second-generation reforms too.

In his initial remarks, Dr Ahluwalia said that Kerala should further explore the possibility of foreign investment in infrastructure and tourism, especially in the wake of upswing of interests abroad in investing in India.

Public-private partnership in these areas should be encouraged, he added.

According to him, Kerala has logged uptrend in the growth rate during the past of couple of years.

Members of the Plan panel underscored the need for more productive employment of educated youth and the need to club various Centrally sponsored schemes to get optimum benefit of Centre's initiatives.

Mr Chandy said that the State should be provided flexibility in Centrally sponsored schemes.

He added that the State must be compensated for the sacrifices in having followed a unique path of development, which the country would not adopt through the common minimum programme.

He wanted the corpus of the traditional industries fund raised to at least Rs 1,000 crore and at least two more districts of Kerala included.

Mr Chandy said that despite severe fiscal stress, the State has been pushing ahead with decentralisation and has earmarked Rs 1,375 crore in the annual Plan as untied Plan grant-in-aid to the Panchayat Raj institutions and Urban Local institutions to plan and prepare locally relevant schemes.