Maharashtra's annual plan freezed at Rs 9,700 cr

Maharashtra government on Friday said the annual plan of the state for 2004-05 has been freezed at Rs 9,700 crore, forcing it to reorganise the economic planning activity.

The state government had made an annual plan of Rs 19,500 crore for 2004-05 and sent it to the Union government for approval, state finance minister Jayant Patil said.

The interaction between the state and centre could not take place due to various reasons, including model code of which was inforce during Assembly and Lok Sabha elections, Patil said adding, "The Centre later communicated to the state government that its plan has been freezed at Rs 9,700 crore."

Due to this, the state will have to reorganise its planning accordingly, the finance minister said.

On the estimated plan for 2005-06, Patil said the state had already had a meeting on it and the report was being sent to the centre for approval.

"The plan includes provision for development of metropolis and other issues," the minister said adding, he would not disclose any details on the plan before it gets approved by the Centre.

On his reaction to the Twelth Finance Commission recommendations, Patil said the state would benefit over Rs 1,000 crore from it as the interest loans taken by the state government would reduce from average 11 to 7.5 per cent.