State seeks package to meet slowdown

Expressbuzz, Feb 18, 2009

BHUBANESWAR: The State Government has demanded a one-time special package of Rs 1,500 cr from the Centre to effectively deal with the adverse impacts of the economic slowdown.

The demand was raised by Finance Minister Prafulla Chandra Ghadei during the annual Plan outlay discussion with Deputy Chairman of Planning Commission M S Ahluwalia in New Delhi on Tuesday. The Plan size of the State for 2009-10 has been fixed at Rs 9,500 cr, an increase of Rs 2,000 cr from the previous year.

Ghadei said the State Government is consistently making efforts to improve fiscal and Plan performance. Besides, it is trying to create an investor-friendly atmosphere.

Ghadei represented Chief Minister Naveen Patnaik at the discussion.

He said that Orissa’s development strategies aimed at sustainable, broad-based and inclusive growth, scaling up investment in agriculture and allied sectors, creating more job opportunities and livelihood for all.

Orissa achieved an average growth rate of 9.15 per cent during the 10th Plan against targeted growth rate of 6.2 per cent. The State is taking all steps to improve the delivery mechanism of public services and increasing the annual Plan size, Ghadei said. Orissa has increased its Plan outlay from Rs 2,500 cr in 2004-05 to Rs 9,500 crore in 2009-10.

Ghadei, however, said implementation of the recommendations of the Sixth Pay Commission has put a tremendous pressure on the State’s finances. It will benefit 4 lakh employees and 2.49 lakh pensioners.

He requested the Centre to provide greater assistance to less developed States for infrastructure development including expansion of railway network and construction of expressways such as Ranchi-Vijayawada Highway.

Besides, he demanded that there should be appropriate modification in the guidelines for Accelerated Power Development and Reform Programme (APDRP) II so that states like Orissa could benefit.

Ghadei sought approval of an eight-year perspective Plan of Rs 4,550 cr for development of KBK region (undivided Kalahandi, Balangir, Koraput districts) which has been submitted to the Planning Commission.

The other demands included transfer of the entire proceeds of export duty levied on chrome ore and other minerals to the originating States.