New Delhi, Feb. 15: The Planning Commission today accepted Bihar’s demand and approved a plan size of Rs 24,000 crore for the year 2011-12, an increase of 20 per cent over the previous year but pulled up the state for poor financial performance in the power sector.

Chief minister Nitish Kumar expressed happiness over the plan size and said the thrust areas of his government would continue to be “development with justice, ie building basic infrastructure and social sector schemes”.

For this annual plan of Rs 24,000 crore, the state will use its savings to finance 41 per cent (Rs 9934.49 crore) of the plan, will borrow to meet 27 per cent (Rs 6,342 crore) and the remaining 32 per cent (Rs 7,723.51 crore) will be met from central assistance.

“From Rs 4,000 crore in 2005-06, we have come a long way and reached Rs 24,000 crore in the sixth year. It has been possible due to prudent fiscal management,” Nitish pointed out.

Highlighting the achievement of his government, he said that earlier Bihar had to borrow even for meeting its non-plan expenditure like salaries and wages but now it was meeting these expenditures and even saving.

Planning Commission deputy chairman Montek Singh Ahluwalia lauded the state for its performance in various sectors, but said Bihar needs to get its act together in managing the finances of the power sector.

Asked about the state’s weak points, Ahluwalia referred to financial performance in the power sector but pointed out that the malady was not limited to Bihar. “The problem was with many other states too,” he said.

Nitish too acknowledged the problem and said that realisation of power dues was poor and assured steps to fix it. He, however, expressed happiness that the plan panel had highlighted the area. “I am happy that the Planning Commission has showed concern for the power sector. It will help us in solving the coal linkage problems faced by us,” Nitish said.

Bihar had been repeatedly accusing the Centre of not extending cooperation in providing coal linkages for the proposed thermal power units.

After the two-hour long meeting, Ahluwalia also thanked Nitish for providing valuable suggestions that will help in making the “procedures more flexible”.

Deputy chief minister Sushil Kumar Modi termed the plan size a victory for the state as its demand had been met and stressed that it would go a long way in strengthening the growth atmosphere.

The Opposition chose to be cautious. “Last year when the plan size was Rs 20,000 by December 31, 2010, the government had only spent Rs 3,500 crore. The rest of the amount is to be spent in the next three months. I welcome more funds. But I hope the spending will be more judicious this time,” said leader of Opposition Abdul Bari Siddiqui.