This was decided at a meeting between State Chief Minister Omar Abdullah and Planning Commission Deputy Chairman Montek Singh Ahluwalia at a meeting here.
“They (Planning Commission) have approved Rs 6,000 crore annual plan and Rs 1,200 crore under PMRP (Prime Minister’s Reconstruction Programme). The onus is on me and my team to deliver development in the light of funds and resources made available to us,” Abdullah told reporters after the meeting here.
The meeting started with an exhaustive Power Point presentation made by the Chief Minister himself. The Planning Commission conveyed its special appreciation to the Chief Minister for a very comprehensive and focused presentation of the case for J&K for deepening and widening the development process during the current year.
The Plan allocation decided today demonstrates focused attention on areas like roads, energy, water supply, health and education.
While appreciating efforts to develop 690 MW of power generation capacity, Mr. Ahluwalia asked the State government to exploit hydro-electric potential, as “it holds key to state’s economic growth and for generating resources to fund its development schemes.”
The plan panel however took a dig at the Jammu and Kashmir government for leaving large gaps in the delivery of health services and asked Chief Minister Omar Abdullah to take steps to fill the gaps and focus attention on inclusive growth.
Besides wind power, Mr. Ahluwalia said the state needs to promote other non-conventional sources of energy, including solar and bio-mass.
The Plan allocations also envision Public-Private-Partnership (PPP) in these sectors. Besides the plan allocations aim at building on the core competence in areas of tourism, agriculture, horticulture, fruits and flowers and industry and handicrafts to employment and employability.
In this regard, the Planning Commission noted the roll out of the Sher-e-Kashmir Employment & Welfare Policy in a very positive way, particularly the elements of the Policy framework that address the needs and aspirations of the educated unemployed in the State. The Planning Commission appreciated the central focus of sectoral allocations in current year’s plan on livelihood promotion and employment generation.
The strategic framework for 2010-11 Annual Plan includes focus on employment generation through technology transfer, skill up-gradation, multi-skilling of the youth and entrepreneurship development. The allocations signal a revival of institutional framework through re-structuring of public sector undertakings and strengthening of the credit structure. The plan outlay undertakes to pursue institutional reforms in sectors like Urban Development and Power.
On transmission and distribution losses, Mr. Abdullah said, “This is something we are working on. We are trying to put in place a turnaround plan with the help of power ministry. We are trying to bring it down to acceptable level.”
The State, he pointed out, was losing about Rs 2,000 crore annually because of transmission and distribution losses.
Mr. Abdullah further said the state government would create an investment-friendly environment and maintain fiscal discipline to make the process of development more sustainable.
Mr. Ahluwalia wanted the Jammu and Kashmir government to work out an action plan for rapid development of the state to ensure that the fruits of development reach everyone.
Accordingly, an additional Special Plan Assistance of Rs. 4606 crore will be made available by the Centre to the State, over and above the State’s entitlement for fully funding the Plan. Additionally, the State is going to receive Rs. 1200 crore under Prime Minister’s Reconstruction Plan (PMRP).
Minister for Finance, Mr. Abdul Rahim Rather, Chief Secretary, Mr. S. S. Kapur and other senior officers of the State Government accompanied the Chief Minister in the meeting. The Planning Commission team comprised, besides Dr. Ahluwalia, members Mr. Saumitra Chaudhury, Dr. (Ms) Sayeda Hamid, Mr. B. K. Chaturvedi and Principal Advisor (Power & Rural Development), Senior Advisor for Jammu and Kashmir and other Advisors.
The meeting reviewed with satisfaction the implementation of State Sector in PMRP which includes completion of Baglihar-I, Khanabal-Pahalgam Road, 11 Degree Colleges and 6 ITIs in the State. Projects like Narbal-Tangmarg Road, two-room tenements, 13 more Degree Colleges and 8 ITIs are expected to be completed by this year.
Reviewing the previous annual plan for the State, the meeting observed that highest ever plan expenditure of 96 percent (Rs. 5281 crores) was undertaken which reflects the dynamism and growth orientation of the State Government. The meeting also noted with satisfaction the 90 percent funds availability under PMRP with Rs. 732.47 crores has been expended out of allocated Rs. 813 crore. To streamline the process of planning and execution, Rs. 700 crore worth schemes have been implemented in the State under projectized mode and additionally Rs. 643 crore were made available as matching state share for availing maximum benefit of centrally sponsored schemes, the meeting was told. As for the monitoring of these schemes, the State has introduced 3rd party monitoring mechanism by NABCONS for 154 projects so far. Also, Mckinsey & Co. has been engaged for a pilot project on comprehensive monitoring of T&D project under PMRP.
The meeting also reviewed the implementation of flagship programmes currently under execution in the State. The meeting was informed that the total resource availability for these programmes has been Rs. 3606 crores and pace of expenditure has been stepped up considerably under ARWSP (537 uncovered habitations, 366 newly emerged habitations covered), under AIBP (irrigation potential of 39545 hectares created) and under NREGA (18892 works completed, 140 lakh mandays generated with emphasis of conversions on activities like water supply, irrigation, connectivity and forestry).
Appreciating the efforts of the State Government, the meeting noted an increase in tax revenues by the State alongwith an economic growth of 6.87% during 2009-10. The per capita income in the State during the period also rose by 8.54% and for the next year it is expected to rise by 9.92% along with buoyant increase in fruit production, handicraft sales and tourist arrivals, the meeting was told.
Wrapping up the deliberations, Dr. Ahluwalia appreciated the efforts of the State Government in bringing financial discipline and accountability. The members also welcomed the State Government for the power tariff recovery rate, rapid project completions, introduction of GI standards for Kani Shawls etc. They specifically pointed to the Chief Minister’s quality standards for orphan rehabilitation released by him recently.
On the occasion, the Chief Minister, invited Dr. Ahluwalia and his team of Planning Commission to visit Kashmir. He also presented to the Planning Commission the first copy of report of NABCONS on review and monitoring of projects in the State. KONS
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