Pumping up productivity

Sixty per cent hike in outlay, 20,000 water bodies to be restored.

Proposing a step up of Rs 1,494 crore over the revised estimates for 2005-06 in the central Plan outlay for agriculture and allied activities, Finance Minister P Chidambaram identified four sectors as the thrust areas for higher investment "" irrigation, credit, diversification and creation of market for agricultural produce.

The total outlay for irrigation in 2006-07 had been increased to Rs 7,121 crore, including the Centre's grant of Rs 2,350 crore as compared to last year's outlay of Rs 4,500 crore.

The water resources ministry would revamp the command area development programme to allow participatory irrigation management through water users' associations, Chidambaram said.

He announced that the corpus of the rural infrastructure development fund (RIDF) would be raised to Rs 10,000 crore. This fund had already disbursed 11 tranches, touching a disbursement level of Rs 7,301 crores till January 31, 2006.

A special feature this year was sanctioning of Rs 346 crores for the north-eastern states. This amount might go up to Rs 600 crores by the end of the current year.

The public-private partnership model is proposed to be employed for creation of markets for horticultural and fisheries products in different parts of the country. About Rs 150 crore had been earmarked for this purpose in 2006-07 Budget under the National Horticulture Mission.

A Central institute of horticulture would be established in Nagaland. A national fisheries board would also be constituted shortly, he announced.