Uttarakhand Annual Plan 2010-11 Finalized

The Annual Plan outlay for Uttarakhand for the year 2010-11 was finalised at a meeting, here today, between Deputy Chairman Planning Commission, Shri Montek Singh Ahluwalia and Chief Minister of Uttarakhand Shri Ramesh Pokhriyal. The Annual Plan size was agreed at Rs.6800 crores.

Mr. Ahluwalia congratulated the State Government on successful completion of Maha Kumbh Mela. He said this historical event which requires major infrastructure development and organizational skills has been conducted in a manner that has been widely appreciated. Efforts to restore the pristine character of the sacred Ganga River as well as the ancient city of Haridwar, must be continued. He Stated that the centre and the State should work together to implement the on-going projects of the Ganga Action Plan.

He said, it is commendable that Uttarakhand is among the three special category States which have been reorganized by the TFC for prudent fiscal management, despite non-cost disabilities, in recognition of which a special performance grant of Rs.1000 crores has been provided by the TFC. Therefore, the State Government must reinforce this good track record and ensure that the fiscal deficit is brought down to 3 per cent and its total debt to 30 per cent of GSDP as early as possible.

Appreciating the efforts to place the State on sound economic path, Mr Ahluwalia said that Uttaranchal has great potential in terms of natural resources which should be harnessed to generate sustainable growth and income opportunities for the people. The State has registered economic growth with GSDP averaging over 9 per cent in both the Tenth Plan and the completed years of the Eleventh Plan. The State has estimated that, to achieve growth envisaged by the Thirteenth Finance Commission, it would require investment of approximately Rs.75,000 crore of which Rs.40,000 crore must come from private sources. Therefore it is critical that the State Government puts in place policies that enable private investment of this magnitude to materialise.

In the farm sector, the average growth rate of agriculture has been less than 1 per cent in the first two years of the Eleventh Plan. Despite large riverine network and high rainfall, only 44 per cent of the arable area is under irrigation. The poverty level is also high at nearly 40 per cent in 2004-05 and compares poorly with other hill States. It points to a need to place great emphasis on livelihood programmes, and improvement of farm productivity and income opportunities in rural areas.

There is also an uneven development between the hill districts and the plain districts of the State, with much of the growth concentrated in the latter. Bharat Nirman and other flagship programmes as well as NABARD funded programmes should be used to bridge this gap. Literacy rates in the State have shown big improvement according to 2001 census, but yet remain relatively low. The gap between female and male literacy is also quite high and it appears to be more serious in certain districts.

Briefing the Commission on the development strategy, the Chief Minister said that thrust areas of Annual Plan would be physical infrastructure including roads, bridges, power projects and drinking water. Fallow land would be brought under cultivation in hill areas for growing horticulture, herbal and organic agriculture crops. Emphasis will be on water conservations and enhancing livelihood options. Public private partnership would be encouraged in infrastructure both physical and social. He said that Uttarakhand Government has launched new programme with the objective of achieving balanced regional development and providing basic infrastructure in all neglected areas.

He said efforts are on to further improve tourism related infrastructure and to get education hub status to the State. He wanted Planning Commission’s help in restoring industrial package benefit to the State.