U.P. to focus on economic infra in Rs 69,200-cr Plan outlay

New Delhi: The Plan outlay for Uttar Pradesh for 2013-14 was on Thursday finalised at Rs 69,200 crore, including Central assistance of about Rs 11,225 crore. The Plan size was finalised at a meeting between Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, and Chief Minister of Uttar Pradesh Akhilesh Yadav.

In addition, Rs 18,000crore is likely to flow from the Centre to the State through various Centrally-sponsored schemes.

Briefing the Commission on the State’s development strategy, Yadav said infrastructure and industrial policies were being implemented to attract private investment and all district headquarters are being connected by four-lane roads. By the end of the Plan, all 500 plus habitations will be connected with all-weather roads in two years, Yadav said.

The Chief Minister said the State Government will earmark more than 20 per cent of the outlay for economic infrastructure. On social infrastructure, the State Government proposed to spend 32 per cent of the outlay.

Ahluwalia complemented the State Government for restoring economic activity and focusing on the development of social and physical infrastructure. He said the State needed to further encourage private participation by creating an atmosphere conducive to investment. Education and health should be given priority while working out the development strategy, he added.

Ahluwalia drew attention to the share of manufacturing sector/industry in gross state domestic product and pointed out that it was declining due to unfavourable macro-economic conditions. The proposed new industrial policy aimed at creating investor- friendly environment was a step in the right direction, but private investment had to be incentivised to revive the industrial, he added.

Regarding the State Government’s proposal to connect all district headquarters by four-lane roads and construct 300 bridges, Ahluwalia suggested that State may use PPP (public-private partnership) mode for these projects so that they could avail of benefits under Viability Gap Funding Scheme.