Financial allotment of Orissa Annual Plan 2008-09

The size of Orissa Annual Plan 2008-09 was fixed at Rs 7500 crores along crores which is inclusive of an additional disbursement of Rs 100 crores meant for special projects was also allocated by the central government of India. Out of this additional disbursement of Rs 100 crores, Rs 30 crores comes as a grant from the Central government. Further, another special grant of Rs 100 crores was also allocated towards the development of the highway stretching from Vijaywada to Ranchi. This was announced at a special meeting between Mr. Montek Singh Ahluwalia, the Chairman of the Planning commission of India and Mr. Naveen Patnaik, the Chief Minister of Orissa.

Performance of Orissa in 2007-08

Mr Montek Singh Ahluwalia, the Chairman of the Planning commission of India said that the state of Orissa has been improving and trend of investments look positive. The state registered an annual growth rate of 8.59% against the target of 6.2% during the 10th plan period. He added, more efforts should be made to meet commitments. More focused approach is needed in areas like agriculture infrastructure and human development sector. Appropriate policies should be enacted to attract private sector investments and inculcate entrepreneurship. Mr. Singh also advised the state government of Orissa to explore new areas of economic activity to divert unemployed labor force from farm sector to non-farm sector. This would also protect the state from the aftermath of natural calamities, which the state is regularly exposed to. Social evils like unemployment, low per capita income and high incidence of poverty should be arrested. The Chairman pointed out, that the health care sector of Orissa is still below the national average and this gap should be bridged within the 11th plan period. Mr. Singh also advised the state government of Orissa to focus more on rural electrification, rural connectivity, skill development and logistics in the state.

Achievements and future policies of Orissa

Mr. Naveen Patnaik, the Chief Minister of Orissa, showcased his plans for Orissa Annual Plan 2008-09 before the Chairman of the Planning Commission. He said, the state has targeted a growth rate of 9% as per the requirements of Orissa Annual Plan 2008-09. The state is committed to focus more on agriculture and its allied activities. Moreover, an additional land area of 60000 hectares would be brought under irrigation. Reduction of poverty level to be given special attention and it should be curtailed by a minimum of 15% points.

Demands of the state of Orissa

• Awarding special category status to Orissa.
• Establishment of educational and professional institutions like IIT, IIM, IIIT and Central universities to meet the growing demand of quality professionals in the state.
• Revision of loyalty on coal and other minerals.
• Tax holidays on income and Central excise for a period of 10 years for the entire KBK region of Orissa.