Karantaka gets 10 p c hike in 2007-08 Annual Plan

New Delhi, Feb 26 (UNI) The annual plan for Karnataka for 2007-08 was finalised here today at Rs 17,782.58 crore, a rise of 10 per cent over last year's outlay of Rs 16,166 crore.

The plan was finalised at a meeting held between Planning Commission Deputy Chairman Montek Singh Ahluwalia and Karnataka Chief Minister H D Kumaraswamy.

The amount includes additional central assistance of Rs 80 crore for projects of special interest to the state.

Stating that the state had an ''impressive record of achievements in the implementation of its plans,'' Deputy Chief Minister and state Finance Minister B S Yediyurappa said Karnataka had 112 per cent achievement in the ninth plan and it was expected to achieve 115 per cent of plan expenditure in the tenth plan too.

Minister of State for Planning M V Rajasekharan asked the state to avail the incentives for promoting public private partnership (PPP) in infrastructure.

He said viability gap funding being provided for infrastructure projects should be availed by taking up new projects in PPP mode.

''Due to fiscal constraints, infrastructure requirements are difficult to meet through public funding and states needed to encourage PPP,'' he said.

Dr Ahluwalia, complimented the state for its growth rate, but wanted the state to lay more emphasis on agriculture development and arresting the problem of regional imbalance.

On the achievement side, it was noted that tax collections were going well and resource side performance was better than most other states.

''Karnataka has emerged as a major hub for the IT sector, and now manufacturing too was taking off. The investment climate was positive and investment intentions registered are more than any other state,'' Dr Ahluwalia said.

The state officials were told to encourage foreign direct investment by laying more emphasis on development of urban infrastructure.

Initiatives taken to encourage public private partnership in infrastructure development specially setting up of PPP cell were appreciated.

On expansion of the National Rural Employment Guarantee Programme (NREGP), the state which has sought expansion of the scheme to cover more districts received indications that Karnataka was likely to benefit from the scheme.

The Chief Minister said an outlay of 35.52 per cent had been proposed for irrigation and energy sectors. Social services sector will get 34.41 per cent while transport and rural development will get 13.86 per cent and 5.26 per cent respectively.

Under district sector plan, schemes are being allocated to zila panchayats, taluk panchayats and gram panchayats.

An amount of Rs 1,980 crore has been proposed as state's share of the district sector outlay.

On the poor rating of the state under the second 'Human Development' Report, Mr Kumaraswamy said the government has decided to periodically review human indicators related to livelihood, health, nutrition, education, sanitation and housing at gram Panchayat level.

This would enable State Government to track child and maternal mortality indicators regularly and take corrective measures.

The state had sought greater outlay to meet requirements of backward areas stating as ''inadequate'' the Rs two crore earlier sanctioned for 39 most backward taluks.

The state has decided to hike the amount giving additional allocation of about Rs four crore each during next year.

Mr Yediyurappa said under the Jawaharlal Nehru Urban Renewal Mission only two cities with 10 lakh population -- Bangalore and Mysore -- were eligible for funds. But the state government has pointed out the need to include all district headquarters with a minimum of five lakh population under the scheme.

UNI