The Hindu Business Line : Kerala's annual Plan size at Rs 6,950 cr

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New Delhi Feb. 20 The annual Plan size of Kerala for 2007-08 has been fixed at Rs 6,950 crore inclusive of additional Central assistance of Rs 60 crore for projects of special importance to the State.

At a meeting between the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, and the State Chief Minister, Mr V.S. Achuthanandan, here, Mr Ahluwalia said that the Commission intends to take a review of the performance of major Centrally-sponsored schemes and invited comments of the State Government on problems being faced in their implementation. Mr Ahluwalia also said that State should encourage public-private partnerships in development of infrastructure, as it would entitle them to assistance from viability gap fund.

Complimenting the State on achieving growth rates higher than the national average and relatively higher per capita income, he said agriculture distress and unemployment needed more focused attention. He said that productivity of agriculture and industry should be improved. Modernisation of small-scale industry should also get priority. Appreciating efforts at improving irrigation efficiency, it was suggested that participatory management should be further promoted.

Briefing the Commission on the State economy, the Chief Minister said the paradox of Kerala development has been its obsession with growth. The period of high growth was associated with economic woes. Decline in per capita foodgrain output, calorie in-take and agrarian and fiscal crisis were being witnessed. Achievements in human development indicators are being threatened because of fiscal crisis. He said Debt Relief Commission has been set up to provide relief to the farmers.

Watershed management, intensive utilisation of cultivable land area, development of storage and agro processing facilities and provision of assured prices are among the measures being taken to improve agriculture economy.