PlanComm nod for TN's Rs 37,128 cr outlay for '13-14

In addition to the central assistance of about Rs 3,165 cr, an amount of Rs 9,000 cr is likely to flow from the Centre to Tamil Nadu through various centrally-sponsored schemes

The Planning Commission today approved Tamil Nadu's Rs 37,128 crore annual Plan expenditure for the current fiscal, which is 32.8 per cent higher than the approved outlay for 2012-13.

The state's annual Plan outlay for 2013-14 was finalised here at a meeting between Commission's deputy chairman Montek Singh Ahluwalia and Tamil Nadu chief minister J Jayalalithaa.

According to an official statement, the Plan size has been agreed at Rs 37,128 crore, which includes the central assistance of about Rs 3,165 crore. In addition to the central assistance, an amount of Rs 9,000 crore is likely to flow from the Centre to Tamil Nadu through various centrally-sponsored schemes, it said. Thus, the Plan assistance from the Centre to Tamil Nadu is expected to be over Rs 12,000 crore during 2013-14.

During the meeting, the Commission pointed out that state's economy or Gross State Domestic Product (GSDP) decelerated from 7.3 per cent in 2011-12 to 4.6 per cent in 2012-13, which was lower than national average of 5 per cent.

The meeting discussed the steps to be taken to accelerate the growth rate, including revival of investment and development of infrastructure.

It was also noted that power sector performance would be critical as the state was currently suffering from a large deficit in the sector.

Later talking to the media, Ahluwalia said, "..Like everybody else they had a slowdown in growth this year. I think they have problems in the power sector, they have difficulties in getting coal supplies." "...Like in the rest of the country, water is going to be very big issue (in the state). Tamil Nadu is urbanising very rapidly and their own forecast according to the vision documents they have prepared (is that) by 2023 Tamil Nadu will be 67 per cent urban," he added.

To set up 5 desalination plants
Tamil Nadu chief minister also put proposals for additional central assistance of Rs 210 crore during 2013-14 for desalination plants, announcing her plan to establish five desalination plants for 20 mld each along the coast line of the state.

She suggested that instead of implementing parallel schemes on the health care sector, the Centre should facilitate the integration of Rashtriya Swasthya Bima Yojana and the health insurance schemes already operating in states like Tamil Nadu and urged it to finalise the modified guidelines for the Jawaharlal Nehru National Urban Renewal Mission - II.

Direct Benefit Transfer

Pointing to the central government's plans to implement Direct Benefit Transfer Scheme, as example for unilateralism, the chief minister put forward an alternative "win-win" proposal - The Centre should route its funds through the state government, which is already progressively switching over to the bank mode of disbursement for all beneficiary oriented schemes, and the Centre can monitor the implementation through the data available seamlessly.

"This would not only make the roll out of Direct Benefit Transfer faster but will also enable the inclusion of large schemes like the disbursement of Social Security Pensions," she added.

Referring to the Group of Ministers' recommendations to merge 170 schemes into 79 schemes, she said it appeared to be a watering down of the recommendations of the BK Chadurvedi Committee.

While appreciating the proposed move to include more flexible state-specific guidelines, she said all funds under centrally sponsored schemes should be released only to the consolidated fund of the states and not to other special entities at the state or district level.