The Hindu Business Line : Assam’s annual Plan outlay fixed at Rs 5,011 cr

Accelerating growth
State advised to go for cluster approach to tap export potential in handloom sector.
Efforts must be increased to reach targets in irrigation and drinking water sectors.

— V.V. Krishnan

Plan strategy: The Assam Chief Minister, Mr Tarun Gogoi, calling on the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, to finalise the annual Plan 2008-09 in New Delhi, on Monday.

Our Bureau

New Delhi, Feb. 4

The annual Plan for Assam for 2008-09 has been pegged at Rs 5,011 crore inclusive of a special plan assistance of Rs 250 crore for identified projects of the State.

The special plan assistance release would be contingent upon the State providing fully its share of centrally sponsored schemes.

This was agreed here on Monday at a meeting between the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, and the Assam Chief Minister, Mr Tarun Kumar Gogoi.

Growth rate

In his opening remarks, Mr Ahluwalia complimented the State for improving financial health and doubling the growth rate during the Tenth Plan period.

He said the State should further step up efforts to accelerate development process and aim at bringing Assam at par with the other developed States at the earliest.

The State was also lauded for performance under Bharat Nirman programme. Efforts should be increased to reach targets in irrigation and drinking water sectors.

In view of the huge handloom sector potential, the State was advised to encourage cluster approach, necessary for tapping export potential.

Performance

Briefing the Commission on the performance of the State, the Chief Minister said Assam has achieved the objectives of eliminating the revenue deficit and reducing fiscal deficit to three per cent of the GSDP (gross State domestic product) by 2005-06.

He also informed the Commission that revenue and fiscal deficits have turned into surplus of Rs 2,210.42 crore and Rs 711.35 crore respectively in 2006 and 2007.

Mr Gogoi said that the State has achieved an industrial growth rate of 8.02 per cent in the Tenth Plan and efforts are being made to encourage growth of small and cottage industry during the Eleventh Plan period.

He said the services sector has shown promising growth and Assam is likely to achieve higher growth in the sector.

Power policy

Mr Gogoi asked the Commission to modify the power policy so that surplus power generated through the mega projects in the North-East region should be first made available on priority to deficit States in the region before being evacuated to the other States.

He said the Government should explore the possibility of opening air links between Guwahati and the Eastern countries.

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