The Hindu Business Line : TN sets growth rate at 9%

Chennai, July 3 Tamil Nadu has set itself a overall growth rate of 9 per cent with emphasis on development in social sectors, industrial and agriculture, according to the plan document for the Eleventh Plan (2007-2012) formally submitted by the State Planning Commission today.

The State Plan outlay for the five years is fixed at Rs 85,344 crore, which is double that of the Tenth Plan Target of Rs 40,000 crore.

The total investment for the period is estimated at about Rs 6,49,330 crore of which State’s outlay is about 13 per cent. The private sector is expected to play a major role by bringing in investments of over 67 per cent (Rs 4,35,051 crore) and the Central Sector accounting for the balance about 20 per cent (Rs 1,28,935 crore).

Private partner

Outlining the main philosophy of the Eleventh Plan, the Government said the objective is inclusive growth with private sector an effective partner in the economic growth with investments channelled towards priority sectors.

The State’s economy since 1990 has been primarily driven by non-farm sectoral growth. The intervention of the Government is key to ensuring well spread industrial development, said the Plan document.

More than half the population of Tamil Nadu will be living in the urban areas by the end of this Plan period. Improving infrastructure facilities such as roads, water supply, sewerage and housing are major challenges before the urban local bodies. Innovative systems of financing urban amenities will be a test for the fiscal manager of the State.

The Planning Commission has said that sustained agricultural growth is essential to attain the high economic growth. The strategy for agriculture development would be to target increasing the area under cultivation, bringing down the yield gap, optimising water management and improving post harvest infrastructure for processing and marketing.

The Government has earmarked 43 per cent (Rs 36,732 crore) of the total outlay to social sectors including education, health, social welfare and welfare of the under privileged. A large portion of this is towards urban development including water supply and sewerage.

Infrastructure and industries get 31 per cent (Rs 26,106 crore); agriculture and allied sectors 10 per cent (Rs 7,832 crore); and rural development 11 per cent.

The resources are to be garnered from State’s own funds of Rs 17,499 crore; Central assistance of Rs 15,873 crore, State’s borrowings of about Rs 55,708 crore and contribution of local bodies amounting to about Rs 1,600 crore.

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