New Delhi: To uplift Bihar from bottom of
development index, the Planning Commission on Tuesday raised annual
outlay for the state by 20 percent to Rs 24,000 crore with
emphasis on power sector for 2011-12 financial year.
"Bihar is doing well. Growth rate has picked up. There is
good growth in agriculture ... we wish to promote its growth
process," Planning Commission Deputy Chairman Montek Singh
Ahluwalia told reporters after nearly two-hour meeting with
state Chief Minister Nitish Kumar to finalise plan outlay for
the state.
"We have also assured support for continuing development
work. This is the last year of the 11th Plan and we have
agreed on a plan size of Rs 24,000 crore which emphasises many
different sectors," he said.
Last year, the Planning Commission had approved the
outlay of Rs 20,000 crore.
Bihar needs to focus on the power sector. The financial
performance of the sector needs to be strengthened, Ahluwalia
said.
Kumar agreed with Ahluwalia and said the state government
is enhancing power generation capacity in both conventional
and non-conventional energy sources.
However, improvement is required in tariff collection
from the users, Kumar said.
The Bihar Chief Minister said that in order to tap
non-conventional energy sources he also met New and Renewable
Energy Minister Farooq Abdullah earlier during the day.
Kumar said he also met Finance Minister Pranab Mukherjee
for settlement of cost escalation of project undertaken by the
central government post Bihar restructuring in 2000.
The central government has agreed to fund the cost
escalation and the sanctioned Rs 3,100 crore against the
earlier estimate of Rs 1,450 crore.
As part of Bihar restructuring package, the central
government had initiated certain key projects under Rashtriya
Sam Vikas Yojana and additional support was given to the
project. However, due to delay on part of implementing
agencies, there was cost escalation, Kumar said.
During the meeting with Ahluwalia, it was also emphasised
that the state needs to improve pace and meet targets set.
Attention was also drawn to the poverty level which was much
higher -- both in rural and urban areas -- than the national
average.
Even literacy level was low as compared to all India
level. Special attention was drawn to the female literacy rate
which is far below than national average, Ahluwalia said.
The meeting also reviewed implementation of UPA's
flagship schemes including MGNREGA and Mid-Day Meal scheme and
asked the state to further streamline their execution.
Kumar requested the Planning Commission that some of
social sector programmes need review of guidelines to make
them implementable.
For this annual plan of Rs 24,000 crore, the state
government will use its savings to finance 41 per cent (Rs
9934.49 crore) of the plan, borrow 27 per cent (Rs 6,342
crore) and remaining 32 per cent (Rs 7,723.51 crore) from
central assistance, Kumar said.
Main development priorities will continue to be
infrastructure including roads with 23.88 per cent, power with
a share of 7 per cent, education with a share of 12.56 per
cent and other social service like health, water-supply,
sanitation, rural housing and empowerment of women and social
security with a share of 22.13 per cent, he said.
Kumar said efforts are on to improve investment climate
and accelerate pace of infrastructure development by
encouraging public-private partnership in both physical and
social infrastructure development.
The initiatives taken by the State Government has shown
results and Central Government should help him in bringing the
state at par with other better developed states, he added.
Not missing to score a political point over his
arch-rival Lalu Prasad, Bihar CM said unlike the RJD
government going for vote on account, the NDA government is
coming out with Budget every year.
He also boasted better financial management under the
present regime and speedy execution of developmental scheme.
PTI
First Published: Tuesday, February 15, 2011, 22:21