The Hindu Business Line : Thrust on agriculture, traditional sector

Paddy push
Dedicated package for raising paddy output.
Quality seeds and fertilisers to be made available to farmers.
Paddy procurement at Rs 8.50 a kg will be extended to more districts.

Thiruvananthapuram March 9 Agriculture and the traditional industry sectors are the major beneficiaries in the 2007-08 Kerala Budget presented by the Finance Minister, Dr Thomas Isaac, in the State Assembly on Friday.

The new financial year will see an estimated Rs 1,000 crore being expended under various heads for agriculture development activities, including the share of the local bodies.

A major highlight of the schemes drafted for the agriculture sector is a dedicated package for raising paddy output. Quality seeds and fertilisers will be made available to farmers, who will also benefit from suitably tailored regime of loans at reasonable rates of interest.

Paddy procurement at Rs 8.50 a kg will be extended to more districts. A special scheme to ensure alternate job opportunities for farmers has also been envisaged. The overall package includes a separate scheme for plantation crops and takes cognisance of the Central package for the `distressed' Wayanad, Palakkad and Kasaragod districts.

Irrigation schemes

Watershed development is the main thrust of the Central package, the Finance Minister said, and added that this would see works worth Rs 200 crore being taken up in the three districts under the auspices of the National Rural Employment Guarantee Scheme.

A sum of Rs 215 crore will be allocated for various large and small irrigation schemes. Other notable allocations are: Rs 43.75 crore for seawall building; Rs 8 crore for revamp of Coirfed; another Rs 46 crore for the entire coir sector; and Rs 25 crore for handloom, with Rs 1 crore being set apart for branding Kerala handloom.

The long-pending drinking water project being implemented with Japanese assistance will receive Rs 800 crore in allocation during the course of the new financial year. Similarly, Rs 35 crore will be allotted for a drinking water-cum-cleanliness project supported by the World Bank.

Infrastructure, tourism

Maintenance of PWD roads will receive Rs 320 crore and revamp of electricity distribution Rs 180 crore. Another Rs 168 crore has been set apart for the Accelerated Power Development and Reforms Programme, including the share from the Centre.

The tourism sector has been earmarked Rs 100 crore, with infrastructure development and eco tourism sharing the allocation. An annual Kerala Shopping Festival has been envisaged, which will be coordinated by the departments of Tourism, Industries and Commerce and Local Self-Government.

The festival will start during the third week of October and go on until the third week of January. It will evolve in phases and reach full potential over the next five years. A separate festival authority will be set up for the purpose with an allocation of Rs 15 crore.

Healthcare

Another major thrust is the revamp of the service delivery system in the State. A comprehensive healthcare programme, which aims to reach affordable healthcare services to the poor and needy, will be rolled out.

Funds being made available from the National Rural Health Mission will be used for building infrastructure for hospitals and procuring essential equipment. Rs 168 crore will be made available as non-Plan funds during the new financial year, while an additional Rs 33.50 crore will be put aside before the current financial year ends.

IT allocation

The IT sector will get Rs 43.74 crore, which will take care of the third phase development of Technopark at Thiruvananthapuram and a new module at Info Park at Kochi. An international centre for free software will be set up in the State, for which Rs 50 lakh has been allocated.

Annual instalment of Rs 30 crore will be provided to banks for one-time settlement in the cashew industry. Khadi and rural industries get Rs 5 crore, handicrafts Rs 1 crore and other small-scale industry Rs 6 crore.