Orissa Review * May-June - 2010

Chief Minister's Discussion with Union Ministers and Deputy Chairman, Planning Commission at New Delhi

Orissa's Annual Plan Size Fixed at Rs.11,000 Crore Aims at Sustainable Broad Based Inclusive Growth.

In the meeting with Deputy Chairman, Planning Commission at New Delhi held on 20th April, 2010, Hon¶ble Shri Naveen Patnaik discussed proposals for Annual Plan : 2010-11 and stated that Orissa has made commendable efforts to improve fiscal health and plan performance and to create investor- friendly environment for attracting private investments. He informed that Orissa¶s development strategies aim at sustainable broad-based inclusive growth, scaling up investments in agriculture and allied sectors, creating more opportunities for employment and livelihoods for all and particularly for youth, strengthening social security net particularly for people Below Poverty Line and marginalized communities, reducing regional and social disparities, and improving productive infrastructure including Bijli, Sadak and Pani.

Hon¶ble Chief Minister stressed that because of consistent and focused efforts, Orissa was able to achieve an average annual real growth rate of 9.51 per cent during the 10th Plan against the target of 6.20 per cent per annum and aims to maintain the tempo during the 11th Plan period. He highlighted several initiatives undertaken by the State Government to achieve higher broad-based inclusive growth, faster overall development of the people of Orissa and accelerated poverty reduction. He stated that Orissa has taken specific steps to improve the delivery mechanism and outreach of public services resulting in progressively increasing Annual Plan sizes. Orissa has increased its Annual Plan Outlays by more than four times from Rs.2,500 crore in 2004-05 to Rs.11,000 crore in 2010-11.

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He endorsed the initiative on right to education and urged Planning Commission to convene a meeting of National Development Council (NDC) as early as possible to discuss and devise modalities for substantial central funding for this rights based human development initiative.

He requested for a special dispensation of Rs.300 crore a year for Orissa portion of Ranchi- Vijayawada Highway till the completion of the project. He further stressed the following issues: (i) Expeditious approval of an 8-Year Perspective Plan of Rs.4,550 crore for development saturation of the KBK region of Orissa, that has been prepared in consultation with Planning Commission and submitted to them for approval and pending approval of the Perspective Plan, immediate increase in the Special Central Assistance from Rs.130 crore to Rs.500 crore a year for the KBK region for the year 2010-11. (ii) Appropriate modifications in the guidelines for APDRP-II so that the States like Orissa which have been adversely impacted because of pioneering Power Sector Reforms should also benefit.

(iii) Inclusion of Orissa for implementation of the Central Government initiative for development of pulses and oilseeds.

(iv) Allocation of 500 MW of power from the Central Un-allocated Share and NTPC Kaniha Stage II to Orissa to help address the current power deficit situation in the state.

Hon¶ble Deputy Chairman and other Members of the Planning Commission lauded the initiatives and efforts of Orissa Government for achieving significantly higher growth rates and cent percent utilization of Plan funds. They held that some of the initiatives such as System of Rice Intensification (SRI) as undertaken by the State, which aims to increase productivity while lowering costs of production, deserves to be scaled up and replicated by other States. While appreciating significant achievements in almost all sectors, Hon¶ble Deputy Chairman / Members of the Planning Commission noted that the State has the potential to further improve by focusing and enhancing its efforts in social sectors. Deputy Chairman, Planning Commission also advised that accomplishments of the State during last five to seven years need to be disseminated to the larger public through awareness drives.

Hon¶ble Chief Minister thanked the Planning Commission for supporting Orissa¶s development efforts and the increased plan size.

Hon¶ble Chief Minister, Orissa meets Hon¶ble Union Agriculture Minister

In the meeting with Hon¶ble Union Minister for Agriculture, Shri Sharad Pawar, at New Delhi held on 21st April 2010, Hon¶ble Chief Minister, Orissa, Shri Naveen Patnaik, discussed various issues of concern facing the State.

Hon¶ble Chief Minister informed the Union Minister that the State was facing an acute storage constraint on account of inadequate movement of surplus rice by Food Corporation of (FCI). In addition, he stated that the States¶ resource capacity to provide relief to the calamity affected population

105 Orissa Review * May-June - 2010 has been seriously constrained because of non-release of Rs.2687 crore for 2008 floods affected population and Rs.2257 crore sought for 2009 drought/flood affected population under the National Calamity Contingency Fund (NCCF). Hon¶ble Chief Minister informed that even the committed amount of Rs.500 crore announced by the Central Govt. for 2008 victims has not been released and that the State has been provided with just about Rs.99 crore.

Chief Minister requested the Union Minister to appreciate the difficulties faced by the State and take urgent action in respect of the following:

‡ Moving out of the surplus procured rice of about 9 lakh MT to outside the State during next 8 months starting from April 2010 in view of severe storage capacity in the State.

‡ Release of balance committed amount of about Rs.401 crore under NCCF, committed for 2008 flood victims.

‡ Consider providing adequate resources under NCCF for 2008 flood affected population (Rs.2687 crore) and for 2009 drought/flood affected population (Rs.2257 crore).

‡ Sanction additional 25000 households under Antodaya Anna Yojana (AAY) for .

Hon¶ble Union Minister appreciated the concerns of the State and assured that FCI would take necessary measures to move out the surplus rice to ensure that further Rabi procurement does not get hampered in the State. He informed that the matter regarding adequate release of funds under NCCF is under active consideration of the High level Committee headed by the Union Finance Minister. On the issue of additional beneficiaries under AAY, the Union Minister assured to look into the matter favourably.

Hon¶ble Chief Minister, Orissa meets Hon¶ble Union Rural Development Minister

In the meeting with Dr. C. P. Joshi, Union Minister for Rural Development and Panchayati Raj at New Delhi held on 21st April 2010, Hon¶ble Chief Minister, Orissa. Shri Naveen Patnaik, discussed various issues of concern facing the State. He informed that the State has been making concerted efforts to implement all Rural Development Programmes aimed at creating rural infrastructure, generating employment, alleviating poverty and providing basic minimum needs to the people including social security to the vulnerable with the objective to achieve balanced and equitable development of the State.

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Hon¶ble Chief Minister stated that despite best efforts by the State, performance under some of the rural development programmes has been adversely affected on account of either delay in the release of funds or inadequate releases by Government of India. He brought to the attention of the Union Minister that the State was facing an acute resource crunch under many Central Government programmes including Pradhan Mantri Gram Sadak Yojana (PMGSY), National Rural Employment Guarantee Act (NREGA) and National Rural Drinking Water Programme (NRDWP). He mentioned that there exists a need to review some of the ongoing programmes as these require scaling up or change in norms to achieve optimal results.

The Chief Minister requested the Union Minister to appreciate specific concerns of Orissa and to take urgent action in respect of the following:

‡ Release of Rs.2,500 crore during 2010-11 under PMGSY and immediate release of Rs.500 crore during April, 2010.

‡ Revision of project costs for projects sanctioned under PMGSY to account for increase in cost of material etc. over last 10 years.

‡ Provision of Rs.1,908 crore during 2010-11 under NREGS taking into account the revised wage rate for unskilled labour.

‡ To double the assistance under Backward Region Grant Fund (BRGF) from existing Rs.20 crore per district to Rs.40 crore.

‡ Reduction in age limit to 60 years under Indira Gandhi National Old Age Pension (IGNOAP) Scheme and to 18 years under Indira Gandhi National Widow Pension (IGNWP) Scheme along with amending definition of disabled, for wider coverage.

‡ Sanction at least Rs.400 crore under NRDWP.

Hon¶ble Union Minister while appreciating the concerns raised by Hon¶ble Chief Minister assured to consider the specific concerns of Orissa. He assured that the central funds will flow fimely to the State as per the norms.

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Hon¶ble Chief Minister, Orissa meets Hon¶ble Union Minister for Road Transport and Highways

In the meeting with Shri , Hon¶ble Union Minister for Road Transport and Highways at New Delhi, held on 23rd April 2010, Hon¶ble Chief Minister, Orissa, Shri Naveen Patnaik, discussed various issues of concern facing the State for development of Road infrastructure.

Hon¶ble Chief Minister informed the Hon¶ble Union Minister that the State has taken all possible measures to develop the road network within the State, for the balanced development of all sectors and for removing regional disparities. He added that adequate funds are being provisioned in the State Budget each year to ensure uninterrupted implementation of various on-going road projects in the State.

Hon¶ble Chief Minister stated that despite sincere efforts made by the State during last 5 to 7 years, there still exists large gaps in the road infrastructure, adversely affecting the process of industrialization and development in the State. He added that Left Wing Extremism in certain parts of the State has caused additional requirement of road network requiring substantial resources on priority. Hon¶ble Chief Minister accordingly requested Hon¶ble Union Minister to consider the following specific requests favourably:

‡ Sanction Four-laning of National Highway (NH-203) -Puri as a Special Project and its completion well before Nabakalebar Utsav to be observed in 2015.

‡ Sanction pending seven projects of 2009-10 and approve new projects for 2010-11 under the Central Road Fund (CRF).

‡ Sanction projects under Economic Importance Scheme for Rs.65 crore and projects under Inter State Connectivity Scheme for Rs.100 crore.

‡ Sanction Rs.425 crore for Vijaywada ² Ranchi Corridor in 2010-11.

‡ Sanction 19 road projects entailing costs of Rs.762 crore to develop State Roads in Left Wing Extremism (LWE) affected districts.

‡ Construction of additional waterways of 1500 meters on NH-60 to remedy water logging problem.

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Hon¶ble Union Minister complemented the State Govt. for timely execution of works in the on- going projects and assured that the specific requests made by Hon¶ble Chief Minister will be considered most favourably. He agreed that special efforts were required to be made for strengthening Vijaywada ² Ranchi Corridor and road networks in Left Wing Extremism (LWE) affected districts. Hon¶ble Union Minister recognized the significance of Bhubaneswar-Puri Highway and Nabakalebar Utsav and assured that by May 2010, the process of bidding will be completed. He, however, requested that the State Govt. should hold the meeting of Committee headed by the Chief Secretary urgently to resolve some issues relating to acquisition of land and sign the State Support Agreement early.

Hon'ble Chief Minister, Orissa meets Hon'ble Union Minister for Power In the meeting with Shri Sushil Kumar Shindhe, Hon'ble Union Minister for Power at New Delhi held on 22nd April 2010, Hon'ble Chief Minister, Orissa, Shri Naveen Patnaik, discussed various issues of concern facing the State in the Power Sector. Hon'ble Chief Minister informed the Hon'ble Union Minister that Orissa was the first State in the Country to undertake critical reforms in the Power Sector and yet it is experiencing severe shortages in power supply and delays in the execution of works by the Central Public Sector Undertakings (CPSUs). This is adversely affecting the rural electrification programmes and the industrialization process in the State, he added. Hon'ble Chief Minister stated that instead of rewarding Orissa for its signal contribution to power sector reforms, the on-going Central Programme-Restructured Accelerated Power Development and Reforms Programmes (RAPDRP) has, on the contrary, put Orissa into a disadvantageous position. He informed the Hon'ble Union Minister that the State has some serious concerns about abysmal performance of CPSUs including NTPC Ltd., NHPC Ltd. and Power Grid Corporation of India Ltd. (PGCIL) in implementing Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), considered critical to energise and develop rural Orissa. Hon'ble Chief Minister impressed upon the Union Minister that some concrete time bound measures require to be taken urgently to remedy the worsening situation. He requested that the Union Power Ministry should undertake the following measures on priority : ‡ Complete the works in remaining 67% villages and provide complete documentation in respect of 33% villages in Orissa, to achieve the objectives of RGGVY. ‡ Approve the revised Cost Estimate of to enable coverage of all villages in the district.

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‡ Allocate at least 300 MW of power from the Central unallocated share of the Eastern Region and restore the balance 500 MW of power surrendered by Orissa from its allocated share from NTPC Kaniha Stage II for ensuring uninterrupted power supply in the State. ‡ Review the Restructured APDRP, as decided 2 years ago, to enable private Power Distribution Companies to avail the assistance aimed at sustained reduction of transmission and distribution losses. Hon'ble Union Minister complemented Orissa for its sustained efforts and assured the Hon'ble Chief Minister that every effort will be made to address specific concerns of the State. He stated that CPSUs will be directed to complete all programmed villages under RGGVY, within a defined time frame and that efforts will be made to provide additional power supply to Orissa from unallocated Central share to meet the actual requirements of the State. The Hon'ble Union Minister also informed that Restructured APDRP is scheduled to be reviewed during July, 2010 and efforts will be made to concede to Orissa's request. He also assured that the Central Monitoring Committee will approve the revised cost estimate of Ganjam District very shortly. He advised that the State should ask the Private Distribution Companies to complete inspection and energisation of all completed villages, pending submission of documents by CPSUs, which he assured, will be submitted by them within next 30 days. Concluding the discussion and assuring the Chief Minister of all possible support, the Union Minister expressed his willingness to consider yet another Ultra Mega Thermal Power Project (UMTPP) for the coastal areas of the State. Hon¶ble Chief Minister, Orissa meets Hon¶ble Union Minister for Human Resource Development.

In the meeting with Shri Kapil Sibal, Hon¶ble Union Minister for Human Resource Development at New Delhi, held on 11th May 2010, Hon¶ble Chief Minister, Orissa, Shri Naveen Patnaik, discussed various issues of concern for the development of µHuman Resource¶ in the State, particularly in the context of Right of Children to Free and Compulsory Education (RCFCE) Act 2009, Vocational Training and Higher Education.

Hon ¶ble Chief Minister informed the Hon¶ble Union Minister that Orissa, during recent years, has made concerted efforts for improving the educational infrastructure at all levels and for enhancing the technical skills and capabilities of its human resource, with the objective to sustain the development and industrialization process in the State. He appreciated the support extended by the Union Ministry and emphasized that the magnitude of the task faced by the State has suddenly increased manifold

110 Orissa Review * May-June - 2010 primarily on account of RCFCE Act and the additional requirement of trained and technically qualified manpower necessitated by the on-going industrialization process. Hon¶ble Chief Minister impressed upon the Hon¶ble Union Minister that about half of the State is covered by KBK Region and Left Wing Extremism (LWE) affected areas, which have extremely high concentration of the vulnerable population including SCs & STs and the problem is accentuated by the fact that this vulnerable population is dispersed in scattered remote villages. He emphasized that vulnerable population in these areas require some serious special efforts and there is therefore a strong and justified need to treat KBK/LWE area in the State at par with North Eastern States and other Hill States, for the purpose of all Schemes of MHRD.

Hon¶ble Chief Minister requested the Hon¶ble Union Minister to consider and approve following specific requests of the State, on priority:

§ Approve Central-State share in the ratio of 90:10 to implement the Right of Children to Free and Compulsory Education (RCFCE) Act 2009 at least for two plan periods § Accord µSpecial Category Status¶ for 11 districts included in the KBK region and Left Wing Extremism (LWE) affected Areas for the Schemes of MHRD § Sanction all µschool buildings¶ and µadditional class rooms¶ as per the requirement of RCFCE Act during 2010-11 § Consider allotting 1/3rd Central share as envisaged under the Scheme for new colleges for upgradation of existing colleges in 18 low Gross Enrolment Ratio(GER) districts as part of the Model College Scheme § Establish a World Class University in Orissa as announced in 2008 § Establish a Regional Centre of Indira Gandhi National Tribal University (IGNTU) at Phulbani § Provide assistance for upgrading Model Degree Colleges in Districts having low Gross Enrollment Ratio (GER) in higher education § Sanction new Vocational Junior Colleges and strengthen existing Vocational Colleges

Hon¶ble Union Minister appreciated the efforts being made by the State to develop its human resource and for efficiently utilizing the central Govt. funds. He assured that all the issues as brought out by the Hon¶ble Chief Minister shall be considered favourably on priority. He informed that the Union Govt. was in the process to finalize the arrangement of sharing of funds required to enforce Right of Children to Free and Compulsory Education (RCFCE) Act 2009 and assured that efforts will be made to minimize the burden on the State. Hon¶ble Union Minister informed that the proposal to establish a World class University, now rephrased as µInnovation University¶ is under active consideration. He also shared that the proposal of the State to have a Regional Centre has been recommended to the Indira Gandhi National Tribal University. He advised that the State should take advantage of the Central Scheme for setting up new Degree Colleges in 18 Low Gross Enrolment Ratio Districts. For developing

111 Orissa Review * May-June - 2010 playgrounds, Hon¶ble Union Minister appreciated the suggestion of the State and assured to take up the matter with Ministry of Rural Development to include these under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

Hon¶ble Chief Minister, Orissa meets Hon¶ble Union Minister for Water Resources In the meeting with Shri Pawan Kumar Bansal, Hon¶ble Union Minister for Water Resources at New Delhi, held on 12th May 2010, Hon¶ble Chief Minister, Orissa, Shri Naveen Patnaik, discussed various proposals relating to development of water resources in the State. Hon¶ble Chief Minister informed the Hon¶ble Union Minister that Orissa, during recent years, has made serious efforts for enhancing the irrigation potential and for controlling floods. He expressed that recurrent floods and drought, occurring in the State almost every year, cause heavy losses and seriously dent the on-going development process. Hon¶ble Chief Minister appreciated the support extended by the Union Ministry under various on-going Programs including Accelerated Irrigation Benefit Program (AIBP), Flood Management Program (FMP) and Minor Irrigation Projects (MIP) and stressed that the State needs substantially higher resources for strengthening the irrigation network and flood control measures, to minimize the floods/drought and their impact and considered vital for sustaining high levels of growth. Hon¶ble Chief Minister requested the Hon¶ble Union Minister to expedite sanction in respect of the following proposals: ‡ Sanction on-going Rengali Irrigation Project to increase its irrigation potential from existing 40,000 hectare to 2.33 lakh hectare. ‡ Sanction 65 new Minor Irrigation Projects (MIPs) under Accelerated Irrigation Benefit Programme (AIBP) during 2010-11. ‡ Accord Technical clearance for Lift Canal System of Upper Indravati Project and Brahmani Birupa Kelua Doab project pending the environmental clearance by Ministry of Environment and Forests (MOEF). Hon¶ble Union Minister appreciated the progress achieved by the State under the on-going Centrally Sponsored irrigation/flood control programs and assured that the proposals of the State shall be considered and approved, on priority. He advised that the State should take full advantage of the Flood Management Program (FMP) by formulating large project proposals on an integrated basis and make adequate provision in the State Budget during 2010-11, to take up new Minor Irrigation Projects.

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