NDC clears 11th Plan

The National Development Council (NDC) consisting of chief ministers of all the states today approved the draft 11th Plan (2007-12) document, with the Prime Minister Manmohan Singh and Planning Commission deputy chairman Montek Singh Ahluwalia showing flexibility towards the demands of various states.

Earlier, the BJP-ruled states had expressed concern over the centre's "high-handedness" in diverting more funds towards centrally sponsored schemes (CSS) and allocating lesser fund for normal central assistance.

They were also against the Prime Minister's 15-point programme for the welfare of the minorities. The programme stipulates that wherever possible, 15 per cent of outlays under various schemes will be earmarked for the minorities.

However, an official from a BJP-ruled state said they desisted from formally opposing the Plan document, as there was no such precedence.

"In future it may create problem in the scenario of a BJP-led government trying to clear a Plan document," he said. However, the BJP-ruled states submitted a memorandum on the issue of devolution of more power to state governments.

Both the Prime Minister and the deputy chairman tried to clear the doubt of BJP-ruled states. "The Plan does not attempt to divide people on the basis of caste, creed and gender," Singh said in his closing remarks at the NDC.

On the issue of shrinking leeway for states to plan their own programmes, Ahluwalia agreed that the guidelines of CSS should be more flexible and customised for each state.

"I invite chief ministers to take up this offer in the forthcoming annual Plan discussions. We will then take up these suggestions with the concerned Ministry," Ahluwalia said.

Prime Minister also assured that there is no attempt to micro-manage planning from the central level.

On the issue of allocating more resources to accelerate the current pace of irrigation projects, Prime Minister proposed to constitute a task-force in the Planning Commission to examine the issue.

Clarifying the government's approach towards public private partnership in infrastructure, Prime Minister said, "PPP approach is only a supplement to public investment and wherever this approach faces difficulties, we will not hesitate to invest directly."

The focus of the 11th Plan is on social sectors like health and education, which have seen substantial increase in fund allocation. Other focus areas of the Plan include agriculture and infrastructure.

While emphasis in agriculture is on ensuring food security and district specific agricultural plan, in case of infrastructure the emphasis is on public private partnership.

The Planning Commission has estimated that the country would need $500 billion investment during the Plan period to meet its infrastructure deficit.