Montek Singh Ahluwalia

Guwahati, June 5: The Planning Commission has asked Dispur to take corrective steps to improve the industrial scenario, while fixing the state’s 2012-13 Plan allocation at Rs 10,500 crore against a request for Rs 14,537.33 crore.

In his meeting with Assam chief minister Tarun Gogoi today on finalisation of the 2012-13 Annual Plan, the commission’s deputy chairman, Montek Singh Ahluwalia, pointed out the industrial growth which was at 0.7 per cent in 2007-08, had improved to 3.3 per cent in 2008-09 but declined to 2.5 per cent in 2009-10.

The overall target of the industry sector is 8 per cent. “Assam may take necessary corrective steps to improve this scenario,” Ahluwalia said, according to an official source.

Ahluwalia was impressed by the performance of agriculture and allied sector, which has shown considerable improvement.

The overall achievement of the sector during the 10th Plan period was 1.16 per cent. The annual growth in first three years of the 11th Plan had been 2.8 per cent, 6.3 per cent and 4.2 per cent.

“This is quite encouraging against a target of 2 per cent for the 11th Plan period. The state needs to focus on further improving infrastructure and particularly road connectivity,” Ahluwalia said.

On the financial situation, he said there has been significant improvement in the financial health of the state and the fiscal deficit reduction targets had been reached under the Fiscal Responsibility and Budgetary Management Act for the first three years of the 12th Finance Commission period.

Briefing the commission about the development strategy, chief minister Tarun Gogoi said the vision of his government for the Twelfth Plan period would be to create a vibrant and resurgent Assam and the acceleration achieved in the economy during the Eleventh Plan period will have to be continued in the next plan period.

“The endeavour to adopt a policy of comprehensive and effective development to further reduce poverty and economic inequality in the state would continue,” Gogoi said.

He said in view of the present acceleration trend of economy, Assam would be able to achieve a growth of around 9.38 per cent during the Twelfth Plan period.