He also suggested that an officer be identified in state governments to monitor and ensure a smooth resolution of pending issues so as to expedite projects implementation.
Addressing the first meeting of the Governing Council of NITI Aayog, the Prime Minister identified "alleviation of poverty" as the biggest challenge before the county and said the newly formed body will forge a model of co-operative and competitive federalism".
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"Forgetting all our differences, let us focus on the cycle of investment, growth, job creation and prosperity," he said at the meeting attended by several Chief Ministers and representatives of 31 states and Union Territories.
The Prime Minister announced constitution of three sub-groups comprising Chief Ministers to suggest rationalisation of 66 central schemes, on skill development and to make Clean India a continuous programme.
The first sub-group will suggest which of the central schemes should be continued and those which need to be curtailed or transfered to states for better implementation.
"We will move away from 'one size fits all' schemes and forge a better match between the schemes and the needs of states," Modi said.
Noting that projects are often held up for want of timely decisions, Modi asked Chief Ministers "to give personal attention" to factors slowing down projects and asked them to "focus on the cycle of investment, growth, job creation and prosperity".
He also asked states to set up two task forces each to help the country get out of problem of poverty and increase agricultural production.
West Bengal Chief Minister Mamata Banerjee skipped the meet, but Bihar Chief Minister Jitan Manjhi, who is facing a political turmoil back home, was present.
Others who attended the meeting included Akhilesh Yadav (Uttar Pradesh), Tarun Gogoi (Assam), Prakash Singh Badal, O Panneerselvam (Tamil Nadu), Oommen Chandy (Kerala) and Virbhadra Singh (Himachal Pradesh), as well as Chief Ministers from BJP ruled states.
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