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11th five-year plan may be delayed

The PC is not in a mood to hold talks on 11th Five Year Plan till their polls in early 2007, reports Umesh Raghuvanshi.

india Updated: Dec 28, 2006 01:45 IST

The 11th Five Year Plan would be delayed beyond April 1, 2007. So would be Uttar Pradesh’s Annual Plan for 2007-2008.

The Planning Commission appears to be not in a mood to hold discussions on 11th Five Year Plan till the elections to the assemblies of four states going to poll early in 2007.

As the new governments that take office after the poll would like to get new policies incorporated in the 11th plan the plan panel is not giving dates for plan discussions, said a senior officer of the State Government.

Besides holding discussions with various state governments and the Chief Ministers to give final shape to the 11th plan Planning Commission would have to summon yet another meeting of the National Development Council (NDC) to get its clearance. The NDC has already given its nod to Approach Paper to the 11th plan at its meeting held on December 9, 2006.

As a higher growth rate target is being proposed for Uttar Pradesh vis-à-vis the national average during the 11th plan period the Planning Commission would obviously like to know the spadework that the State Government would do to achieve the proposed targets.

The State Government proposes 10 percent growth rate for the 11th plan period. The Centre proposes to achieve a national growth rate target of 9 percent keeping in view the needs of development and performance during the 10th plan period.

As per indications the State Government would need an investment of nearly Rs 8 lakh crore during the 11th plan period if the 10 percent growth rate target were to be achieved.

This would be much higher than the target of attracting an investment of Rs 2.84 lakh crore during the 10th plan period. There are however indications that even the 10 percent growth rate may not be able to bridge the growing gap between the state’s per capita income vis-à-vis the national average.

A growth rate of 10 percent would bring down the gap to only 49 per cent while 12 per cent growth (if targeted) would bring down the gap to 44.2 per cent. A growth rate of 14 percent (if targeted) would bring the gap down to 39 per cent.
So the new State Government would have to stick to the Chief Minister Mulayam Singh Yadav’s proposal to target 10 percent growth rate if not targeting further high.

Significantly the State Government is likely to achieve a growth rate target of nearly 6 percent during the 10th plan period. If the Chief Minister’s assertions at the NDC meeting were to be believed this would be three times higher than the growth rate achieved during the 9th plan period.

Chief Minister has also pointed out that development of infrastructure facilities including power supply and construction of roads was necessary to achieve a higher growth rate.

Will the State Government be able to meet its commitments to achieve high growth rate targets? An answer to this question would come only after the Vidhan Sabha elections in Uttar Pradesh.