Plan outlay pegged at Rs 15,650 cr

The Planning Commission on Thursday approved a plan size of Rs 15,650.77 crore for Andhra Pradesh for the year 2005-06, the highest allocated to any state so far.

This is an increase of Rs 22.36 per cent over the last year's plan outlay of Rs 12,790.43 crore.

In a major relief to the state government, the Planning Commission has protected the original size of the plan outlay despite asking the government to treat the power subsidy of Rs 1,620.86 crore which was included in the outlay as non-plan development expenditure.

This is for the first time in the last 10 years that the Planning Commission has advised to transfer the power subsidy into non-plan expenditure.

The power subsidy was shown as part of the plan outlay by the previous government and also by the present Congress government in the first year.

These details were disclosed to the media in Delhi on Thursday by chief minister Y S Rajasekhara Reddy, who held a customary annual meeting with Planning Commission's deputy chairman Montek Singh Ahluwalia to determine the state's annual plan.

During the course of discussion with the deputy chairman, the state government has agreed to treat the subsidy to the power sector as non-plan expenditure.

Even after doing this, the plan size of Rs 15,650 crore is protected by adding resources to the extent of Rs 2,069 crore.

According to an official press release, the chief minister convinced the Planning Commission to include the structural adjustment loan of Rs 1,610 crore in the current year's plan outlay.

In addition, the Planning Commission agreed to increase the allocation to Rs 600 crore from Rs 275 crore, which was originally planned under the Accelerated Irrigation Benefit Programme (AIBP). The Planning Commission also agreed to provide a one-time additional central assistance of Rs 134.33 crore.

According to the chief minister's office, the deputy chairman has assured the Planning Commission's support in getting structural adjustment loan and other externally-aided programmes.