Planning Commission Deputy Chairman Montek Singh Ahluwalia asked states to pay more attention on expediting reforms in power distribution, efficient use of water and effective management of urbanisation.
On the other hand, Maharashtra, Goa, Gujarat, Madhya Pradesh and Rajasthan made a strong pitch for coordination and convergence of various schemes by the central government. The states argued the central government should not apply “one cap fits all” principle but state-specific schemes need to be implemented. Ahluwalia along with chief ministers and finance ministers of these states from the western region were meeting for the formulation of the 12th Five-Year Plan.
Ahluwalia painted a bleak picture of the power sector, especially distribution. He said states needed to make all-out efforts to expedite reforms in power distribution and do more to provide open access. He said the mounting losses of state utilities, which are of the order of Rs 65,000 crore in 2010-11, were a matter of concern. On water, Ahluwalia said the sector would be much more crucial than even energy and urban transportation in the years to come especially when there was no alternative to efficient use of water.
On growing urbanisation, Ahluwalia said the country as a whole had not even begun management of this issue. He asked states to seriously look into issues relating to the finances, management of urbanisation especially when nearly 60 crore are expected to live in urban areas in 2030, up from the current level of 40 crore.
Ahluwalia told Business Standard, “The meeting with the western region states was excellent. We made a brief presentation. States told us what they are doing and what are their expectations from the central government. Most states share that India has to grow rapidly, the growth should be inclusive and sustainable. There is a potential for capacity addition.”
He informed the Planning Commission has held similar consultations with states from north, east and south. It would hold similar consultations with north-eastern states. He informed a draft approach paper for 12th Five-Year-Plan would be ready by the third week of July and later it would be discussed at the National Development Council.
Earlier, Maharashtra chief minister Prithviraj Chavan suggested that accelerated irrigation benefit programme norms be changed and the government share be increased to 75 per cent from 25 per cent for projects other than drought-prone area programmes and tribal areas. He said supply of crushed and washed coal by domestic coal companies would result in reduction of transportation cost and improvement of performance.
According to Chavan, allocation of domestic (KG D6) gas should be considered on priority to Maharashtra, which has poor hydro potential. He called upon the central government to release more funds under Jawaharlal Nehru Urban Renewal Mission and extend support till 2013-14. He emphasised a need for a separate submission for mega cities.
Madhya Pradesh Chief Minister Shivraj Chauhan said state-specific schemes be implemented instead of one for all states. He said state had received investment proposals of Rs 1,30,000 crore and they are under various stages of implementation.
Goa Chief Minister Digambar Kamath called upon the Planning Commission to lend a timely helping hand to smaller state of Goa, which had the potential to become a role model of peaceful and inclusive development across the country.
The Gujarat government said the migration from rural to urban areas is a critical issue and there is a need to create urban infrastructure in the larger villages. Gujarat Additional Chief Secretary (Planning) V N Maira said rural initiatives of Gujarat was a step in this direction creating urban like amenities in rural areas.
