Mps Annual Plan Finalised At Rs 4,450 Cr, Hike Is 11%

The Planning Commission yesterday finalised the annual plan of Madhya Pradesh at Rs 4,450 crores which is 11 per cent more than last year. The budgetary support for the plan has been pegged at Rs 4,218 crores. The plan will, however, include the allocation for the new state of Chattisgarh also. Chief Minister Digvijay Singh said this allocation "will have to be modified substantially at the end of the year." Singh asked for a special package for Madhya Pradesh on the lines of Bihar. He said the financial burden stemming from the creation of the new state can be handled only by additional central funds for its pending capital projects. Madhya Pradesh will also need enhancement of ways and means facility, said Singh. Deputy chairman of Planning Commission K C Pant said the state has recorded better progress in the 90s compared to the 80s. This includes progress in female literacy, now 41 per cent, and effective decentralisation of power under which it has transferred 18 subjects to panchayati raj institutions. He also welcomed the announcement of a population policy by MP and its ambitious coverage targets for health services and birth rates. The problem areas for the state include a wide gap between the cost of production and average tariff for power and especially so in the agro sector which accounts for 43 per cent of the electricity consumption in the state. The per capita income of the state is also one of the lowest at Rs 196. 1997-98. (The national average is Rs 2849) The figures are worse for the new state of Chattisgarh which accounts for 40 per cent of the people below the poverty ratio in Madhya Pradesh. Singh informed the commission that MP has recently introduced user charges for electricity and the Asian Development Bank has signed a $ 250 million loan for reform of the state finances and public sector enterprises.