"I do not think there is much of cooperative federalism because the Central government has slashed funds to the states," he said during an interactive session at a literary conclave here this evening.
The Chief Minister said the state was facing much difficulties due to cut in Central funds for a number of programmes and schemes.
On whether BJD's base being eroded due to growth of BJP in Odisha, the party supremo said a little more than two and a half years ago, BJD had won 116 out of the 147 seats in the state Assembly, while BJP had managed only 10.
Ruling out the possibility of any alliance with Congress in future, the BJD president said his regional party would stick to its stance of maintaining equi-distance from both Congress and BJP.
Patnaik also ruled out the likelihood of him playing a major role in national politics, saying he has no plans to move to Delhi, where he has had a stint as a Union Minister. He said his foremost concern now was the state where there was a lot of unfinished agenda.
Regarding flow of investments into the state, the Chief Minister maintained that about two years ago Odisha was a leader in attracting investments for many projects, but subsequently certain firms like Posco faced problems because the Central government changed its policies in giving mines.
The present investment scenario and sluggish industrial climate was a global phenomenon and the situation was the same all over, he said.
Odisha is weighing legal steps and in all probability would move court on the matter, he said.
Patnaik said the overall image of the state has improved during BJD rule as a number of welfare and developmental programmes were being implemented for the last several years.
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