Madhya Pradesh plan size pegged at Rs 18,014 cr

State Plan size for the year 2010-11 has been pegged at Rs 18,014 crore, which includes central support as special package on Bundelkhand and grant expected after from 13th Finance Commission recommendations.

The plan size will include 74 per cent state share and 26 per cent central share. “The state government will accord priority to its seven-pronged agenda, creation of infrastructure, power sector development, central supported schemes, district plans, and recommendation of “Manthan” (an exercise of the recent past to set a development agenda). The district plan will share 40 per cent of the total plan allocation, while schedule caste and scheduled tribe sub-plan will have 15.5 per cent and 22.6 per cent share respectively,” said a government source.

In another development, the state cabinet today approved second adjunct budget for the year 2009-10 for an approximate amount of Rs 500 crore. The MP Assembly has already proposed its budget for Rs 51,000 crore for the year 2010-11, but it is under debate in the House.

The state cabinet by exercising its powers under State Security Act 1976, has also decided to provide security to Madhya Pradesh Finance Corporation in anticipation that the company will boost entrepreneurship and venture into real-estate sector. The decision has come in a situation when a number of state public sector under takings are facing financial crisis. Another entity, Madhya Pradesh State Industrial Development Corporation had earlier been given security of Rs 210 crore so that it can promote industries but after a fraud case its closure is now imminent.

“Indore-based Madhya Pradesh Finance Corporation (MPFC) has been given a security cover of Rs 100 crore against a Hudco loan and privately placed bonds of Rs 50 crore each,” a government source said.

The MPFC has to repay the loan at 9.75 per cent in eight years. The MPFC now will be able to raise funds to promote commercial activities and will also be able to enter into housing sector,” a government spokesperson said. According to the source, Hudco will also issue privately placed bonds at 8.50 per cent to 9 per cent payable in ten years.