Performers must get funds: Modi

Modi urged the PM to take a relook at some of the schemes, such as the Rajiv Gandhi Vidyutikaran Yojana aimed at providing electricity to rural households in the states, as this scheme had no value for his state. Gujarat, he pointed out, had already achieved 100 per cent rural electrification. Instead, he said, the Centre should create a mechanism whereby the state could seek funds for those schemes which were more necessary.

Modi also pedalled Gujarat as an example other state governments should follow. He invited them to take advantage of Gujarat8217;s initiatives in the port sector. On energy, he urged the Centre to create an international grouping of countries to develop alternative sources such as solar energy. In an aside, he said it was interesting to note that the CMs of two resource-rich states, Chhattisgarh and Orissa, wanted free power from coal-based, regional power stations based on their state.

Chhattisgarh Chief Minister Raman Singh clearly said that just as 12 per cent free power is provided for a state that hosts an inter-state hydro project, a similar provision should be made for coal-based projects located in states such as his to compensate for the pollution costs associated with thermal stations. The concept of free power from hydel projects, he replied to Modi, was meant to compensate states for R038;R expenses associated with hydel projects.

Orissa Chief Minister Navin Patnaik sought free power for coal projects while stressing the need for a legislation to ensure that such states were adequately compensated for pollution and R038;R expenses incurred in undertaking such projects which were beneficial to other states as well.