Study On Amortisation Of States' Debt

Deputy chairman Jaswant Singh yesterday announced that the Planning Commission will carry out a study to work out a methodology for amortising states' debts.

He said a way should be found to relieve states of the burden of central loans without causing extra burden on the Centre. He said state governments should come up with suggestions on the issue. Singh was speaking at a meeting with Orissa chief minister J B Patnaik and state government officials that resulted in the finalisation of the state's annual plan for 1998-99.

The plan size has been put at Rs 3,084 crore against the 1997-98 plan of 2,529 crore. He also promised Patnaik that the Planning Commission would take up Orissa's request for a medium-term interest-free loan.

 

The Planning Commission also approved the state plans of Jammu and Kashmir and Pondicherry during a day of hectic sessions at Yojana Bhavan here yesterday.

Jammu and Kashmir's plan size for 1998-99 has been fixed at Rs 1,900 crore against Rs 1,551 crore last year. Pondicherry has been allotted a plan size of Rs 241 crore against Rs 219.85 crore last year. The plan panel advised Pondicherry to seek a joint venture partner to build an airport and port.

It promised support for the venture. The Pondicherry government also demanded central support to set up a medical and an engineering college in the state.

During discussions, Patnaik demanded that Orissa be treated as a special state in view of its infrastructure deficiencies.

Singh advised him to take up the matter at the forthcoming meeting of the National Development Council and promised to support it there.

Patnaik said the state government had taken a number of measures like increase in irrigation cess and power tariff to improve the resource position of the state. He said the Centre should consider introduction of a special plan for backward regions of the country.

In another meeting, Jammu and Kashmir chief minister Farooq Abdullah pointed out that his government had increased power tariff to improve the financial condition of the state electricity board. The state's annual plan includes a provision of Rs 87 crore for repair of damaged bridges and Rs 25 crore each for improvement of the Dal Lake in Srinagar and setting up an agriculture university in the state capital.