This is a pro-growth Budget, says planning minister Saurabh Dalal

Saurabh Dalal, state minister for planning in the Narendra Modi government, also holds the two most important portfolios, energy and petrochemicals, even as Gujarat is aiming at being the "petro capital" of the country.

Dalal, instrumental in drafting the Budget, calls the pronouncements on Friday as "pro-industry, pro-investment, pro-agricultural sector and pro-consumers" during an exclusive interview with Business Standard in Gandhinagar, few hours after the Budget was tabled. Dalal told Joydeep Ray that the entire Budget was planned in such a way that it would "fuel growth." Excerpts:

How would you like to term the Budget? What would be your growth target for the current fiscal?

This is a pro-growth Budget aimed at clocking a 10.5 per cent growth by end of the fiscal 2004-05 so that the target set by the Planning Commission for the state could be achieved.

During the fiscal year 2002-03, Gujarat achieved 10.5 per cent growth while during last fiscal year, it recorded a whopping 15.4 per cent growth. By end of 2004-05, we hope to achieve over 10.5 per cent of growth.

Did you want to make only the industrial and commercial consumers happy with huge tax relief on electricity? What about the domestic consumers?

While the state government is aggressively working on attracting more and more investments through recently held Global Investors' Summit, we have attracted investment of over Rs one lakh crore, industry should be extended positive gestures from the government.

To promote industrial development, electricity duty in respect of the industrial units consuming high tension energy would be reduced from 20 per cent to 15 per cent.

Overall, maximum rate of electricity duty has been reduced from 45 per cent to 35 per cent and electricity duty slabs reduced from eight to four. Relief has been extended to recognised educational institutions including hostels for students in both urban and rural areas.

Further rationalisation of duty structure during the next fiscal, is not also ruled out.

The Planning Commission has recently asked the state to focus on rural development""how this budget plans to accommodate commission's advice?

Contrary to certain media reports, there was no such advice from the Planning Commission during our recent meeting in New Delhi, rather the commission was too happy with Gujarat's performance.

Anyway, we have taken enough proactive measures in this Budget to ensure significant rural growth such as earmarking Rs 1,500 crore for drip irrigation and around Rs 500 crore has been allocated for Sardar Sarovar Narmada Project and for building check dams to reach water to farms in every village in the state. We also have allocated Rs 300 crore for electrification of 10,900 villages.

Chief minister Narendra Modi claims that his dream is to make Gujarat India's "petro capital." How does this Budget plans to develop the state as a hub of India's petroleum industry?

While Gujarat has already one fully operational LNG terminal and the second one is almost ready to be commissioned, we have also tied up with Indian Oil Corporation Ltd (IOCL) for buying 5 MMTPA of LNG from the later's Iran project.

To spread the gas grid across the state, we have allocated Rs 1,300 crore which would be spent over two years for laying 620 km of pipeline in addition to the existing 435 km of gas grid already in place.

To encourage the use of CNG kits to control air pollution in the state, the CNG kits will be fully exempted from sales tax.