Plan panel approves Rs 48,935 crore outlay for Andhra Pradesh in 2012-13

NEW DELHI: The Planning Commission today approved a plan size of Rs 48,935 crore for Andhra Pradesh for the year 2012-13, an increase of 13.8 per cent over the previous fiscal.

The plan size was finalised here in a meeting between Commission's deputy chairman Montek Singh Ahluwalia and Andhra Pradesh chief minister Nallari Kiran Kumar Reddy.

"We have had a very good and through discussion with the chief minister ... we have approved for Andhra Pradesh plan size for the year 2012-13 Rs 48,935 crore," Ahluwalia told reporters here.

For 2011-12, government had approved plan size of Rs 43,000 crore for the southern state.

Commenting on the performance of the state during the meeting, Ahluwalia lauded state's efforts to make development truly inclusive and also for the efforts aimed at promoting public private partnership in the development of both social and physical infrastructure.

He said better involvement of private sector would be needed during 12th plan period as state funds would not be enough to meet the needs of infrastructure development.

It was pointed out by the Commission that the share of the primary sector had fallen over the years while that of tertiary sector had been continuously increasing.

In percentage terms the agriculture and allied sector had declined from 25.07 per cent in 2004-05 to 19.22 per cent in 2011-12. The share of secondary sector remains around 24- 26 per cent from 2004-05 to 2011-12.

The state was advised to take necessary steps to further enhance coverage of beneficiaries from the minority community as per guideline for the Swarnjayanti Gram Swarozgar Yojana (SGSY) scheme. Attention was also drawn to the decline in credit disbursement which was still better than the national average.

Briefing the Commission, Reddy said that priority has been given to irrigation that will get of 30.6 per cent of the outlay. Next in priority are rural development and welfare of SCs, STs and minorities with each being allocated 10.54 per cent of plan allocation.

He said the state has given special incentives to the large and medium scale industries. An industrial promotion fund with adequate provision will be created for the purpose. He also said poverty eradication was satisfactory as during last decade around nine per cent population have crossed poverty line.

In rural areas the poverty line has come down to 22.8 per cent from 32.3 per cent in 2004-05 During the same period the urban poverty number has come down to 17.7 per cent from 23.4 per cent in the state.