Economy to clock 7.2 % growth in Tenth Plan: Montek

New Delhi, Nov 7 (UNI) Planning Commission Deputy Chairman Montek Singh Ahluwalia today said the Tenth Plan would average a growth rate of 7.2 per cent, which would lay the foundations for a much higher growth rate for the next Plan to be launched soon.

In an interaction with the media at the two-day Economic Editors Conference here, Dr Ahluwalia enumerated the reasons for which the targetted eight per cent growth rate for the Tenth Plan(2002-06) would not be achieved.

The key reason in this regard was the lower growth rate in agriculture of 2 per cent as against the targetted four per cent growth rate. To improve agricultural growth rate on a sustainable basis the Planning Commission was looking at ways to improve irrigation facilities, primarily in dry land areas.

Dr Ahluwalia said the Eleventh Plan (2002-07) would be based on the concept of zero-based budgeting and thus many schemes that had outlived their utility would not find a place in the next Plan.

He said the Expert Group set up by the Plan Panel has recommended winding up of schemes which have an annual component of less than Rs 300 crore.

The recommendations of the Group under the consideration of the Planning Commission would lead to closure of a large number of Centrally Sponsored Schemes, which at present number about 150.

The Expert Group has suggested winding up of many schemes to ensure that resources do not get thinly spread and Dr Ahluwalia said the idea was to retain schemes which make a substantial impact on the lives of common people. "The smaller schemes can be operated by the State governments themselves", Dr Ahluwalia quipped.

Dr Ahluwalia said the Planning Commission was concerned at the rural distress and a comprehensive Plan would be unfolded in the Eleventh Plan document.

The Approach paper to the Eleventh Plan has been cleared by the full Planning Commission, which would now go before the National Development Council soon.

The Plan Panel Deputy Chief said to achieve a 9 per cent GDP growth, more needs to be done to propel the Public-Private partnership, whch has received encouraging initial response.

Saying that an investment of 320 billion dollars was needed in the Eleventh Plan for the development of Infrastructure, Dr Ahluwalia said an area specific approach was needed.

He said the Planning Commission has major plans for the development of the North Eastern Region and funding arrangements were being worked out on a 90 per cent grant and 10 per cent loan basis. Funding for other States is on the 70:30 basis, he said.

UNI GS MIR RS1946