Infrastructure: Public investment in infrastructure will be enhanced, even as the role of the private sector is expanded. Subsidies will be made explicit and provided through the budget. The review of the Electricity Act, 2003, will be undertaken in view of the concern expressed by a number of states. The mandatory date of June 10, 2004 for unbundling and replacing the state electricity boards will be extended. The United Progressive Alliance government also reiterates the commitment to an increased role for private generation of power and more importantly power distribution….

The UPA government commits itself to a comprehensive programme of urban renewal and to a massive expansion of social housing in towns and cities, paying particular attention to the needs of slum dwellers….All existing irrigation projects will be completed within three-four years. Household electrification will be completed in five years.

Water resources : The UPA government will make a comprehensive assessment of the feasibility of linking the rivers in the country starting with the south-bound rivers….

The UPA will take all steps to ensure that long-pending inter-state disputes on rivers and water-sharing like the Cauvery Waters dispute are settled amicably at the earliest keeping in mind the interests of all parties to the dispute. To put an end to the acute drinking water shortage in cities, especially in southern states, desalination plants will be installed all along the Coromandel Coast starting with Chennai. Special problems of habitations in hilly terrains will be addressed immediately…

Regional development, Centre-state relations: The UPA government is committed to redressing growing regional imbalances both among states as well as within states, through fiscal, administrative, investment and other means…

Even in the Tenth five-year plan, states like Bihar, Assam and Uttar Pradesh have received per-capita allocations that are much below the national average. The UPA government will consider the creation of a Backward States Grant Fund that will be used to create productive assets in these states. The Central government will also take proactive measures to speed up the industrialization of eastern and northeastern regions.

A structured and transparent approach to alleviate the burden of debt on states will be adopted at the earliest, so as to enable them to increase social sector investments. Interest rates on loans to states will be reduced and the share of states in the single, divisible pool of taxes enhanced…

The UPA government will take special measures to ensure that regions of India like in the east where the credit:deposit ratio is lagging, is improved substantially. The UPA government will review the issue of payment of royalties to states in the area of minerals.

From time to time, previous governments have announced special packages as, for example, for the Northeast, for Bihar and for Jammu & Kashmir. For Bihar, Rajiv Gandhi had announced a special development package in 1989 and subsequently another package was announced at the time of its division in 1999 to make up for the loss of revenue. These packages will be implemented expeditiously...

The Inter-State Council will also be activated. All Centrally-sponsored schemes except in national priority areas like family planning will be transferred to states. The UPA government will consider the demand for the formation of a Telengana state at an appropriate time after due consultations and consensus….

Jammu and Kashmir, North-east: The UPA government is pledged to respecting the letter and spirit of Article 370 of the Constitution that accords a special status to Jammu & Kashmir. Dialogue with all groups and with different shades of opinion in Jammu & Kashmir will be pursued on a sustained basis, in consultation with the democratically-elected state government. The healing touch policy pursued by the state government will be fully supported and an economic and humanitarian thrust provided to it.