ANNUAL PLAN 2013-14

MEETING

[

Address by:

Shri Vijay Bahuguna

Hon'ble Chief Minister of Uttarakhand

At

Planning Commission,

Yojana Bhawan, New Delhi

May 23, 2013

Govt. of Uttarakahand

Hon’ble Deputy Chairman Dr.Ahluwalia Ji, Hon’ble

Members and distinguished officers of the Planning

Commission Sir,

I would like to begin by placing on record my gratitude to you

along with Hon’ble Members and officers of the Planning Commission

for the sustained and proactive support and guidance to us in

formulating and implementing the Twelfth Five Year Plan and the

Annual Plan 2012-13.

Based on our performance during the 10th and the 11th Five Year

Plan we visualized a growth rate of 11 percent for the 12th Five Year

Plan for which investment requirement was estimated to be about

Rs.65300 crores but resource constraints forced us to contain our

proposed plan size at Rs. 57252 crores.

However, the Planning Commission has fixed the target of 9

percent growth for our State during the Twelfth Plan Period and

accordingly reduced the Twelfth Plan size, to Rs.45080 crore. This is

only 52.5% above the actual expenditure during the 11th

Five Year

Plan while in case of the central plan there has been 114%

increase. Hence, I would like to request the Planning Commission

to look into this anomaly and rectify it while approving subsequent

annual plan allocations.

Our proposed Annual Plan for the year 2013-14 is before you.

Keeping in view the State’s limited plan resources, the approved 12th

Plan outlay and the minimum investment required to achieve the given

target of 9 percent average annual growth, a rational plan size of Rs.

8500 crore has been proposed for the year 2013-14 . Although the

requirement as per our Twelfth Five Year Plan stands at about

Rs.10,300 crores.

Taking all the factors into consideration we have enhanced our

annual plan outlay marginally by 3.65 percent over the previous year’s

plan which is even less than the Planning Commission’s suggested

minimum 5 % increase and not enough even to meet the price

escalation.

Salient Features

Broadly we have allotted Rs.4639 crore (54.33 percent) of total

outlay to Economic Services which includes PSE resources also,

Rs.3769 crore (44.35 percent) to Social Services and Rs.102 crore

(1.20 percent) to General Services. Due emphasis has been laid on

building socio-economic infrastructure.

Agriculture & Allied Sector

We are aware of the fact that while the growth rate in

manufacturing sector and services sector had been well above the

national average during the Eleventh Five Year Plan, the growth in

agriculture & allied sector remained 3.2% as compared to the national

average of 3.7%.

The main factor behind this low growth rate has been the

diversion of around 3% of agricultural land for industrial and

urbanization purposes during the 11th plan period and that too in the

high productivity region of the State. This loss has been made up

through appreciable increase in productivity despite lower allocations

for the agriculture and allied sectors.

In recognition of the State's efforts we have been bestowed with

the "Krishi Karman Commendation Award" constituted by the Ministry

of Agriculture, Government of India for the year 2011-12 for

registering ever highest production of food grains.

We are committed to foster higher agricultural growth as about

60% of the population is dependent on agricultural activities alone. We

have promulgated the new 'Agricultural Produce Marketing

Committees Act' on the lines suggested by Government of India, which

provides for setting up of Private Mandi Yards and contract farming

besides a number of reform measures. This enables us to take

advantage of a number of centrally sponsored schemes related to

modernization of Mandis as well as establishment of food storage

godowns.

Though we have kept the share of Agriculture and allied sector at

8.15% of the total outlay but we will review the plan shortly to enhance

it to at least 10% of the total outlay and make provisions accordingly in

the supplementary budget so as to enable us to get higher allocation

under Rashtriya Krishi Vikas Yojana.

We need sufficient funding for creation of infrastructure support

to agriculture like ropeways, collection centres, controlled atmosphere

chambers, seeds processing plants, storage godowns etc. With higher

allocation under RKVY we hope to bridge such infrastructure gaps to

some extent.

Horticulture and Fisheries sectors have great potential for

development in Uttarakhand. We are charting out comprehensive

strategy and work plans to realise the same. In this regard we need

higher allocations under centrally sponsored Horticulture Mission For

North East And Himalayan States (HMNEH) and Agricultural

Mechanization Programmes.

Tourism

Being a hilly state with abundance of natural beauty, tourism

holds an important place in shaping the economy of the State. So far,

being a state of religious importance tourism has been largely based on

pilgrimage. Tourism is one sector which holds better prospects for

promoting pro-poor growth than many other sectors. Now we have

worked out a detailed Master Plan for developing new tourism

destinations across the State.

The Tehri Lake is one of the largest manmade lake which

offers ample opportunities for tourism development and income

generation potential to local population and as a pivot of the economic

and social development in the region. State Govt. has a land bank in

excess of 500 Acres around the Lake. The Hon’ble Minister of State,

Planning, Govt. of India also visited the Lake recently and was

impressed of its potential for tourism and desired that a concept note

for its development be presented to the Planning Commission.

Accordingly we have forwarded an infrastructure development plan of

Rs. 550.75 crore for approval and funding from the Planning

Commission.

Special Component Sub Plan/Tribal Sub Plan (SCSP / TSP)

For focused development of the traditionally deprived

sections of society i.e. Scheduled Castes and Scheduled Tribes outlay

proportionate to their population has been separated from the total plan

outlay. Thus 18 percent of total outlay has been apportioned under

SCSP and 3 percent under TSP and is kept at the disposal of the Social

Welfare Department which has been designated as the nodal

department for this purpose and to ensure effective use of given funds

for the welfare and upliftment of these target groups. Monitoring

mechanism has also been put in place to ensure proper use of the funds.

Women & Child Welfare

Women play a major role in the rural economy of the State.

To have their voice in the development programmes their participation

in different level PRIs is being ensured apart from gender budgeting

and plan allocations for women oriented schemes.

The Annual Health Survey Bulletin 2011-12 released

recently, has shown an improvement in the IMR of Haridwar District

which has come down from 72 to 67. Also would like to highlight that

there is a significant drop in the IMR of females in Haridwar from 75

to 70 as compared to males from 68 to 64. The State Govt has made

efforts to tackle this situation of high IMR in Haridwar by

operationalising 1 SNCU (Special New Born Care Unit), 2 NBSU’s

(New Born Stabilization Unit), 1 NRC (Nutrition Rehabilitation

Centre) and training of ASHAs/ANMs in Home Based Neo-Natal

Care focusing on immunization and early breast feeding.

The State’s IMR has also shown a steady decline which now

stands at 36 as per SRS – 2011. Also as per AHS 2012 Bulletin MMR

of the State has gone down from 188 to 162. However, still a lot needs

to be done in the field of institutional deliveries which is getting

hampered due to shortage of doctors and specialists in the State. The

State is trying to address this shortage by opening new Medical

Colleges at Dehradun and Almora and also trying to rope in private

sector by outsourcing of our CHCs. We hope this will help in

addressing the issue of supply of doctors in coming years.

The issue of decreasing child sex ratio is a cause of concern

for which the State has taken some stronger mandatory steps for the

implementation of PCPNDT Act under which State and District Level

PNDT Cells and Inspection and Monitoring Committees have been

formed, State Supervisory Board and District Supervisory authorities

have been activated and all the registered ultra sonography centres

have been inspected with the seizure of 17 machines and suspension of

licenses of 18 centres. All the registered centres have been asked to

compulsorily upload Form- F on the State Health Website and

intensive IEC and awareness activities were also done.

Major Issues

Sir, I had put forward various problems and issues regarding our

plan resources in the last year’s meeting and again in the 57th meeting

of the National Development Council held on 27th December, 2012 but

there has not been much headway in resolving these issues. Hence,

even at the cost of repetition, I would like to reiterate some of them as

they are critically important for the survival of our State and its people.

1- Funding under SCA & SPA

While presenting the State’s Twelfth Five Year Plan and annual

plan 2012-13, I had highlighted the problems and issues faced by our

State in managing the desired finances for plan investment,

appreciating which the Planning Commission had approved Rs.800

crore under Special Plan Assistance (SPA) and Rs.700 crore under

Special Central Assistance (SCA). However, against submission of

Detailed Project Reports (DPR) worth Rs.1378 Crores, which has been

sanctioned by the Planning Commission and against which works have

already been started, we were sanctioned only Rs.300 crores. Thus,

there is a committed liability of Rs.1080 crores. Hence, taking into

account the committed liability, backlog and new Projects, a total of

Rs.1550 crore under SPA and Rs. 1000 crore under SCA is

genuinely expected for the year 2013-14.

2- Non Plan Expenditure :

The non plan expenditure has ballooned from Rs. 6300

crore in 2007-08 to around Rs. 14,000 crores in 2012-13 eliminating

the fiscal space for funding the plan. Given our unique geographical

situation, the economies of scale do not operate here which increases

the per capita cost of service delivery. This has considerably

handicapped our efforts in containing the increasing non-plan

expenditure that was aggravated by wiping out of the Non-Plan

Revenue Deficit Grant by the 13th

Finance Commission.

3- Regional Imbalances:

In the early years of the statehood the development,

particularly in the industrial and construction sectors, concentrated in

plain area which accounts for only about 10% of state’s total area. Hill

area, especially far flung areas, remained plagued with problems of

connectivity, dominance of forest land and its restrictive use, scattered

and low population density coupled with lower infrastructure base.

The successive governments in the State took special care for

delivery of social services and succeeded to some extent in mitigating

the gap in literacy levels and improving health indicators. However,

due to lack of livelihood opportunities and other socio economic

activities people have tended to migrate to the plain areas. This is

evident from the data emanating from 2011 Census, according to which

population in the plains of Haridwar, Udhamsingh Nagar and Dehradun

rose by about 33 percent during the decade against the State’s average

of 19.17 percent. Contrary to this, seven hill districts recorded less than

6 percent growth with Almora(-1.73) and Pauri-Garhwal (-1.51)

posting a negative growth.

The actions of the Union Ministry of Environment and Forests in

bringing entire watersheds covering 4179 sq kms (as they did recently

in the case of Uttarkashi Eco Sensitive Zone) have only served to

further restrict the scope for economic activities in the hills and

condemn the people in the hills to live the lives of second-class citizens

of India. Such notifications are not only being done in a high-handed

manner without any consultation with local people but also against the

unanimous resolution of the State Assembly. In the instant case

(Uttarkashi ESZ) not only have the principles of natural justice been

violated but none of the stated objectives in the notification are borne

out by data available in the government domain.

4- Central Plan Assistance :

Uttarakhand being a Special Category State (SCS) is entitled

for assistance from 30 percent funds earmarked in the total central

assistance. It needs to be considered that while the fund allocation

among general category states are being done according to Gadgil-

Mukherjee Formula, there is adhocism in allocation of central

assistance among Special Category States as it is being distributed

without using any explicit criteria.

The report of the Working Group on State’s Financial

Resources for the 12th Five Year Plan 2012-17 set up by the Planning

Commission has also noted that the percentage share of Uttarakhand

has decreased over the years during the Eleventh Five Year Plan. Even

if we look at the total grant in aid provided by the Centre to Special

Category States during 2012-13 the share of Uttarakhand has been

abysmally poor. While on the whole the average per capita grant

comes to Rs. 6913 for all SCSs, it was the lowest i.e. Rs. 3793 for

Uttarakhand. Further, Himachal Pradesh which has similar topography

but lesser population and better infrastructure created during last 50

years got Rs. 4230.79 crore as Plan Assistance despite its smaller

annual plan size (Rs. 3700 crore). In comparison, Uttarakhand got Rs.

3837 crore against an annual plan size of Rs. 8200 Crore. The Planning

Commission was also generous in sanctioning Rs. 1000 crore in 2011-

12 and Rs. 1400 crore in 2012-13 under SCA & SPA put together to

Himachal Pradesh, while Uttarakhand was discriminately granted only

Rs. 600 crore and Rs. 1000 crore in the respective years. It is therefore

necessary to evolve a separate formula for Special Category States

giving due weightage to area under forests, protected area network,

impact of forest and environment related statutes, disaster proneness

etc. beside the traditional parameters of area, population and

backwardness.

Now the review of Special Category Status to few more States

is being contemplated by the Centre. We hope that our interests will be

safeguarded and the State will be taken into confidence before making

any changes.

5- Funding of Centrally Sponsored Schemes (CSS) on

90:10 basis :

Uttarakhand is likely to suffer a loss of about Rs.700.00

crore in the annual plan 2013-14 due to non-allocation of funds on

90:10 basis under CSS. About 36 CSSs are being funded on the ratio

applicable to general category states, which should have been at par

with other Special Category States. The first year of the 12th Five Year

Plan is already over and the issue is still pending. It is requested that

now all CSSs may be funded on 90:10 basis atleast from this year.

6- Cost of Service Delivery :

Given its topography, the per capita cost of service delivery as

well as per unit capital cost of construction in our State is one of the

highest in the country. For example, the cost of service delivery in the

school education sector is approx. Rs. 16,881 p.a. per child (the highest

in the country) against an all-India average of approximately Rs.

5206/- p.a. per child. Similarly, the per unit construction cost has been

fixed under RMSA @ Rs. 7,000/- sq m whereas the norms under the

State Schedule of Rates (SOR) is almost twice this rate. This is not

taken into consideration under the relevant CSS which follows a one-

size fits all approach. Thus, the scheme which is under 75:25

funding pattern works out to a 50:50 pattern in reality, which

further compounds the issue of non-funding on 90:10 basis.

Similarly PMGSY is stated to be 100 percent Centrally Funded

Scheme. However, the State is required to arrange funds for reasons

like NPV, Compensation for land & buildings, cost and time overrun

due to delay in Forest Clearance by Government of India, payment for

construction of bridges over 50 meter span. Owing to this, PMGSY, a

100% Centrally Sponsored Scheme is working as a 70:30 scheme in

actual practice. This reiterates the point made earlier.

7- Infrastructure Development

Railways: There is a minimal railway network in our State. Given

the current security scenario, this is alarming. I am thankful to the

Centre for accepting our request to construct the Rishikesh-Karnprayag

railway line under the defence project category. This indeed would

strengthen our border security and improve the life of people living in

these areas. However, the pace of construction needs to be stepped up

as this is the only major infrastructure project of the centre in the State.

Work on Roorkee-Muzaffarnagar railway line is also lying in

dormancy. In order to ensure balanced regional development and

strategic border security requirements, sanctioning of Tanakpur-

Bageshwar line under defence project is also necessary.

Given the fact that the State has two sensitive strategic

international borders and it is a Special Category State, the Ministry of

Railways may be asked to prepare a comprehensive Railway

Networking Plan for the State as a Defence Project and stop insisting

on contribution of free land and 75 % Project Cost from the State

Government. Planning Commission may kindly take this up with the

Ministry of Railways.

Roads: Road construction in high hills is an arduous work because of

difficult topography and inclement weather conditions. The

construction of border roads and national highways especially in the

higher regions which are underway as also those which got severely

damaged during previous monsoons also needs to be expedited. I have

also discussed this matter with the Hon’ble Union Home Minister who

has kindly agreed to look into the issue of faster construction of border

roads.

Considering the sensitive international border and the recent

incidents thereon, it is necessary that construction of all border roads be

delinked from the restrictions of the FC Act and special permission be

given to the Border Roads Organisation (BRO) to set up stone crushers

in the higher reaches as also to use stone aggregate etc. available

locally.

Further, keeping in view the suggestion given by Planning

Commission last year, I have issued instructions to PWD to keep the

distance between two points and the length of road to cover this

distance in the ratio of 1:8 or 1:10.

Power : Power generation although undoubtedly the most critical

input because of its overarching impact on all socio-economic sectors

has been facing unnecessary restrictions and many projects are pending

for clearance from the centre while some of them have been forced to

close. Thus against an identified potential of 27,000 MW we have been

able to develop only 3618 MW.

Stalling of our power projects, many of them after proper

clearances has not only shaken investor’s confidence in the Power

Sector but in the entire Public Private Partnership (PPP) initiative in the

State. It has also deprived us of a potential further annual revenue

stream to the tune of Rs. 1651 crore which ought to be given as

recurring annual ACA till these projects are cleared as we have to

purchase electricity for our own use during the peak seasons from

outside on higher rates. Restrictions are now being imposed on Mini-

Hydel Projects (25 MW) on grounds of Eco-Sensitive Zones which

bodes ill for the development of the State.

While the centre has given its nod to the 300 MW Lakhwad

Dam Project which would help improve the power scenario, I would

request for an early decision on other projects languishing for clearance

from the centre.

8- Forest Issues

Despite facing severe disabilities and deprivations on account

of 65% of the total area under forests, our state and its people are

undeterred in their efforts to strengthen its forest and wild life. Our

efforts in this direction are borne out by the total forest area increasing

to 70% due to further survey and mapping of Van Panchayat areas by

the State Forest Department, increase in forest covered area by 1141

Km2, and declaration of a new Sanctuary and a Conservation Reserve

last year.

But herein lies our dilemma. While we are utilizing our

every bit in the interest of the nation even by sacrificing our gains, we

are being denied use of our forest land even for critical infrastructure.

Deputy Chairman Sir, I remember that a couple of years ago in

a letter you had rightly mentioned that Uttarakhand holds ample

opportunities for development by utilizing its rich natural resources

which should be harnessed to generate sustainable growth and

income opportunities for the people but paradoxically, even projects in

progress have been banned on the grounds of protests from certain so-

called religious and environmental activists.

Now to add to our woes, as already mentioned, a notification

has been issued to declare about 4179 sq.km. in Uttarakashi district as

eco sensitive zone, thereby imposing prohibitions and restrictions on

certain activities. This sort of a one-sided prescriptive approach

adopted by the Union Ministry of Forests and Environment baffles us.

While they have not held consultations with the State and have not

responded to the concerns expressed by the State Governments in the

past, they expect us to enforce this unenforceable notification with

Participatory Rural Appraisal.

Why such concern with environment in this State only? The

same river flows through Uttar Pradesh, Bihar and West Bengal. The

environmental stress on the river is greater in these States due to the

pressure of population and industrial activities. Then, why is

Uttarakhand being singled out for this treatment ? Why no eco-

sensitive zones are notified in these States ?

Such ill thought out notifications while ruining the State

economy are also bound to hurt the sentiments of crores of people all

over the country who will now be stopped from entering the Gangotri

Dham (one of the Char Dhams). Eco-Friendly activities like trekking

have been restricted. How will the villager earn his living if he can’t

even walk as this would be covered under trekking ? The prescription

given by the Union Ministry to use traditional architecture would lead

to green felling and also slate mining which are not environment

friendly activities.

We need to understand that the Constitution guarantees the

Right to Equality and Right to Livelihood which implies a Right to a

Dignified life. Before promulgating such notifications having a wide

impact on the economy, law and order and environment of the State,

the Centre should hold extensive discussions with all stake-holders.

9- Urban Growth :

As I have stated earlier, people from the remote and border

areas are tending to settle in plains. During the last decade, large

number of people including the people retired from defence forces

have settled in the periphery of existing larger towns in plains for

whom all urban facilities have to be provided.

Besides, Uttarakhand being a land of pilgrimage and

religious festivals, people from all over the country and abroad visit

the State at different occasions. This floating population soars up to

2-3 times than the native population of the State. Since a larger

number of pilgrims belong to lower economic category and depend

on public utilities only, their transportation, comfortable stay and

safe return puts pressure on our already limited civic amenities and

resources. During Char Dham Yatra and many other seasonal

occasions, creation of additional facilities becomes inevitable for

which extra funds are required.

10- Monsoon Disaster :

Risk management is one of key component of a sustained

development strategy. Our State witnessed unprecedented rains

successively during last three years which wrecked havoc with the

infrastructure created painstakingly during the past one decade. In

addition about 233 villages are on the verge of disaster due to

landslides and need immediate resettlement and rehabilitation. We,

therefore, seek a Comprehensive Road Replacement Package

amounting to Rs. 800 crore and a Resettlement & Rehabilitation

package of Rs. 500 crore in this financial year in the form of ACA.

Our Achievements

Despite all the constraints mentioned above we have been able

to maintain a good track record and have done remarkably well on

many fronts.

1. We have achieved about 13 percent average growth in GSDP

during the Eleventh Five Year Plan which has been rated second

highest among all the States by the Planning Commission.

2. Comparative data between 1999-2000 and 2007-08 of Human

Development Index (HDI) of various states as given in the

national Twelfth Five Year Plan, depicts highest percentage

change (44.54) in Uttrakhand among all states. The HDI in the

State was 0.339 which was lower than the national average

(0.387) in 1999-2000 has exceeded the national average in 2007-

08. However, it is still much lower (0.490) than many states like

Himachal Pradesh (0.652), Goa (0.617), Punjab (0.605), North-

East states (excluding Assam) (0.573), Maharashtra (0.572),

Haryana (0.552) and Gujarat (0.527).

3. Uttarakhand has a Protected Area Network (PAN) of over 15% of

its geographical area as compared to the national average of 4%.

This comprises of 6 National Parks, 7 Wildlife Sanctuaries and 3

Conservation Reserves, including the Nandhaur Wild Life

Sanctuaries and Pawalgarh Conservation Reserve, which were

notified only recently on 14 December, 2012. The Kotri and

Dugadda ranges of Lansdowne Forest Division has been decided

to be declared a buffer zone of Corbett Tiger Reserve. Rajaji

National Park has also been decided to be proposed to be declared

as a Tiger Reserve.

4. The Lansdowne Forest Division acts as a corridor between Rajaji

National Park on the west and Corbett Tiger Reserve on the east.

There has been several evidences and sightings of tigers, elephants

and other wild animals. Hence to have a integrated protection of

the corridor, it has been decided to annex the reserved forests of

Laldhang and Kotdwar ranges of Lansdowne forest division to

Rajaji National Park as a buffer zone and annex the reserved

forests of the Kotri and Dugadda ranges of Lansdowne forest

division as a buffer zone of the Corbett Tiger Reserve. The

Shyampur range of Haridwar forest division has already been

ordered to be annexed under the administration of Rajaji National

Park.

5. To ensure smooth passage of wild animals, it has been proposed to

construct an elevated fly over from Chillar Khal till Shyampur

instead of strengthening the existing forest road from Chilar Khal

to Laldhang. This fly over will reduce the distance from Kotdwar

to Haridwar by 25 Km resulting in saving of fuel, double taxation

at State border of Uttar Pradesh & Uttarakhand and also

decreasing traffic load.

6. Our performance on environment protection has been recognized

by the Planning Commission as the State tops the list of

performing states and union territories in terms of environment

well being.

7. Our performance in literacy has been above the national average.

We have achieved the target of universal enrolment in primary

and are close to achieve it at the secondary level.

8. Public-Private Partnership (PPP) :

Our government has taken several steps to create an enabling

environment to promote investment through PPP. Conceptualisation,

Preparation and implementation of PPP projects requires appropriate

advisory services in terms of preparation of project agreements,

structuring of projects and so on. For this a separate dedicated PPP cell

with services of experts has been put in place in the State. So far 120

projects with estimated cost of Rs. 5746 crore of different sectors have

been taken up of which 12 are now in operation, 14 are under

construction, for 8 bid process has been completed, 29 are under

bidding and 57 are under pipeline. Thus we have initiated the process

with encouraging results which would be further strengthened during

the 12th Five Year Plan.

On our part we are toiling hard to raise our revenues and at the

same time adhering to Fiscal Responsibility and Budget Management

Act in our annual budgets. According to revised estimates Fiscal

Deficit is expected to be 3.09 percent and it is proposed to bring it

down to 2.92 percent in 2013-14 which is within the prescribed limits

of 3.00 percent.

Further, in view of the GSDP growth of about 5 percent at the

national level in 2012-13, fiscal deficit level is targeted at 4.8 percent

in the Union Budget of 2013-14. against the commitment of 5.2 percent

in 2012-13. Under such circumstances the state’s share in central taxes

and allocation in CSSs/grants may also get affected adversely. Even in

2012-13 there has been shortfall of Rs. 116 crore in the share of central

taxes, besides reduced allocations in some central flagship schemes.

Further Rs. 500 crore approved albeit subject to availability of funds,

under Special Plan Assistance were not sanctioned. Sir, I again refer to

your observation quoted earlier, that Uttarakhand has great potential in

terms of natural resources which should be harnessed to generate

sustainable growth and income opportunities for the people, but

ironically all our doors have been closed on this or that pretext. As we

cannot use the forest resources for commercial purpose due to

restrictions of Forest Conservation Act, (read with ESZ), handicapped

for industrial development in the difficult and fragile mountainous

region due to early withdrawal of CIP, cannot develop our hydro power

potential and so on, it is a Hobson’s choice for us to manage our plan

resources.

Also Government of India is now moving towards uniformity

in Taxation across the country, earlier it was VAT and now it is with

GST. This has happened in the case of Transport Sector also where

National Permits, which were earlier issued by the States, were taken

over by the Central government with a consequent loss of Revenue to

the States. Now with the introduction of GST uniformly across the

States it is feared that smaller States will further lose their tax revenue

because of smaller business scale and inflexibility of the new system.

Hence the decision on fixation of minimum annual turnover for

implementation of GST may be left to the jurisdiction of the States.

Despite all the above mentioned handicaps enumerated above we

have tried our best and even Planning Commission has rated the State

as the second best in GDP Growth rates. However, recent

developments like declaration of a large area as Eco-Sensitive Zone

without taking the people of the State & the State Government into

confidence has really demoralised us and decisions like these will be a

great impediment in sustaining our positive growth rates.

Sir, I would request that Planning Commission should bail us out

from this vicious situation by considering giving following grants over

and above Rs 8500 crores proposed plan size:

Green Bonus- Rs. 2000 crores, per annum.

Compensation for Power Projects Stalled due to

Environmental clearances- Rs 1651 crores.

Comprehensive Road Replacement Package- Rs. 800

crores.

Rehabilitation of 233 Villages in Land slide Zones- Rs.

500 crores.

In this backdrop of our performance prospects, problems

and issues relating our State I request you to approve the

presented annual plan and grant the solicited Special Package,

Special Plan Assistance and Special Central Assistance to

enforce our efforts.

Jai Hind.

(Vijay Bahuguna)

23 May, 2013

New Delhi.