Annual Plan 2011-12 : Meeting with Deputy Chairman, Planning Commission

(Please download the press release: English and Kannada) pdf

  1. The meeting with the Deputy Chairman, Planning Commission, was held today, in which the Annual Plan for Karnataka for the year 2011-12 was finalized.
  2. I have recently presented the Karnataka budget for 2011-12 in the Legislature which has the total outlay increased to Rs.83,729 crore from Rs. 70,063 crore during 2010-11.
  3. Our Annual Plan for 2011-12 is fixed at Rs. 38,070 crore which is about 23% higher than the previous year’s plan size of Rs. 31,050 crore.
  4. The per capita plan outlay of Karnataka at Rs. 5,217 in 2010-11 is one of the highest among major States.
  5. As compared to the current year, we have increased the allocations considerably in 2011-12 for Agriculture (66%), Irrigation (55%), Energy (31%), and Rural Development (31%).
  6. For the first time in the entire country, we have made a novel attempt to formulate a separate budget for Agriculture and Rs.17,857 crore has been allocated to this sector.
  7. The Agriculture Sector has shown a satisfying growth of 5.9% for the year 2010-11 and the food production has reached a record level of 125 lakh tone. What is more rewarding is that the yield of Oil Seeds and Cotton has increased by 32% and 38% respectively.
  8. My government has taken many initiatives to improve agriculture incomes. Some of these measures are:

a) The State is providing agriculture loan at an interest of 1%   to farmers through Co-operative Societies.

b) Extended the Bhoo-chetna programme  to all the 30 districts to cover 30 lakh farmers from 16 districts covering 12 lakh hectares at present.

c) The State is providing Rs.1000 crore for improvement of lives of 10 lakh agriculture farmers under the Suvarna Bhoomi Yojane.

d) Establishing Agriculture Infrastructure Fund of Rs.500 crore.

e) Increasing the Agriculture Revolving Fund to Rs.1000 crore.

f) Rs.200 crore will be provided for organic farming to increase the number of organic farmers from the present level of 87,200 to 5,28,000 in the coming years, with every taluk having 3000 organic farming families.

g) The State will be launching Agri-business Development  Policy and Organizing the Global Agro Investment Meet for the first time in the country.

  1. 9. The decade 2011-20 has been declared as “Irrigation Decade” with focus on Water Resources Management in Karnataka.  Rs.7800 crore has been provided in the coming year.
  2. 10. For rejuvenation of tanks and for filling up of water in the dried tanks, an amount of Rs.1,000 crore will be provided.
  3. 11. In the last two and a half years, 14 incomplete and lingering irrigation projects have been completed and an action will be taken to complete the other projects which are ongoing since more than 2 decades on fast track.
  4. 12. The State Legislature has passed the “Karnataka Groundwater Bill”
  5. 13. Karnataka is undergoing severe power crisis and load shortages. The State is facing power deficit of 11% and peak deficit of 20%.
  6. 14. State is engaged in strenuous attempts to promote new projects in the public and private sectors. Our intention is to add a minimum of 5000-8000 MW in the next 5 years.
  7. 15. Karnataka Power Corporation has taken up the following projects: Yermarus (1600 MW), Edlapur (800 MW), Bellary (700 MW) and Godhna (1600 MW).
  8. 16. The State is setting up coal-based Regional Project by NTPC with a capacity of 4000 MW at Kudigi in Bijapur district.
  9. 17. The State has initiated development of two power projects under competitive bidding route of 1320 MW at Gulbarga and Ghataprabha.
  10. 18. For uninterrupted power supply to the villages and Cottage Industries in rural areas and also for supply of quality power for a specified period, for the Niranthara Jyothi Scheme is being implemented in a phased manner in 126 taluks at a cost of Rs.2123 crores.
  11. 19. The Industrial development has been given equal attention.  The Global Investors meet held in the month of June last year was a phenomenal success.  An investment of Rs.5.25 lakh crore has been generated and it is expected to give employment to 8.5 lakh persons.  Already 225 schemes have commenced wherein approximately Rs.2.5 lakh crore investment has been made.
  12. 20. The State has taken several measures for development of urban infrastructure by spending Rs. 6000 crore through BDA, BBMP, BWSSB and BMTC. Four major projects financed by the external funding agencies at a total investment of Rs.7,500 crore are being implemented.  Under Mukhya Mantri Nagarothana Yojane Rs.1,013 crore has been utilized in the past three years by the urban local bodies to develop urban infrastructure.
  13. 21. The Reach-1 of first phase of Bangalore Metro will be launched in April 2011.
  14. 22. A campaign has been launched to complete the incomplete works of 2009-10 under NREGA.   The State has taken up a massive Job card validation campaign.  So far, 12.50 lakh bogus cards have been cancelled.
  15. 23. Our 24X7 Ambulance Service (Arogya Kavacha) has effectively saved 9.84 lakh lives, institutional births have improved to 93.3%, 32.12 lakh families are covered under various health insurance programmes and we would like to have the support of Government of India to extend this universally.
  16. 24. To empower women through micro finance and livelihood support, we have organized them into 1.4 lakh SHG’s. To promote education and health of girl child we have supported the families under Bhagyalakshmi programme.  We have further strengthened our gender budgeting by providing  Rs.4855 crore in 2011-12 plan.
  17. 25. Our Government is committed to maintain social justice.  An amount of Rs.4730 crore was provided for Welfare of SC and ST during the year 2010-11.  This has been increased to Rs.6,500 crore in the next year.  70,000 SC,ST,BC and Minorities students have been provided residential school facilities.  4.5 lakh students are provided pre and post metric hostel facilities.  30,000 children of these communities are to be trained in Nursing, Para Medical and ITI.
  18. 26. The Department of e-Governance, has created national benchmarks in a number of applications covering e-delivery of services to the citizens like Bangalore-One, Karnataka-One etc. and also created state wide applications which have made governance more accessible to all the stake holders, enhanced transparency and accountability.

 

  1. 27. The fully integrated e-procurement platform has saved to the State exchequer an amount in excess of Rs.10,000 crore in meeting its procurement needs.
  2. 28. Karnataka is way ahead in implementation of UID and stands first in the country overtaking Maharastra and Andhra Pradesh, even though these 2 states launched UID programme well before us.
  3. 29. The Planning Commission has appreciated the Karnataka Government’s performance in the following areas :
  • Maintaining the fiscal discipline,
  • Upgradation of human skills,
  • Infrastructure Development,
  • Power Generation etc.,
  1. 30. We have sought the intervention of the Planning Commission on the following critical areas :
  • To advise the Ministry of Finance to set the borrowing limit for each State based on their debt sustaining capacity,
  • To advise the Central Government Ministries to desist from bypassing the State budget in routing of funds for centrally sponsored schemes,
  • To re-examine the issue of reduction of silk import duty from 30% to 5%,
  • To enhance Center’s contribution under AIBP,
  • Allocation of domestic gas for Gas based Power Projects at Bidadi and Thadadi,
  • To advise the Union Government for providing Coal linkage to the State’s Power Projects,
  • To provide environmental clearance for Edlapur and Godhna Thermal Power Projects and Gundya Hydro Electric Project,
  • To advise the Railways to finalize the PPP policy and also to speed up the ongoing Railway Projects in Karnataka,
  • To advise the Center to extend mid-day meal programmes for high school students (9th and 10 standard),
  • To allocate funds in the ratio of 75:25 to implement Right to Education Act,
  • To sanction I.I.T. for Karnataka besides sanctioning I.I.I.T. for Dharwad,
  • To allocate more funds under NRHM to 12 high focus ‘C’ category districts with very low health indicators.

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