Plan panel scales down investments

The Planning Commission has scaled down investments by 12.5 per cent in crucial areas including agriculture, power and manufacturing mainly due to resource constraints.

The sectors identified by the national common minimum programme as thrust areas for boosting economic growth and investments will now get only Rs 3,582.2 crore in the remaining two years of the Tenth Plan as against the original allocation of Rs 4,081.5 crore. The mid term appraisal (MTA) of the Tenth Plan has reduced the public investments by 19 per cent to Rs 981.1 crore from Rs 1,209.3 crore.

‘‘Public investment has fallen seriously short of targets in the first two years of the plan, especially in agriculture, manufacturing, electricity, and public administration, community, social and personal services, and it appears unlikely that these backlogs can be made up in the remaining three years,’’ the MTA said justifying its reduction. The MTA will be placed before the National Development Council for approval at its meeting scheduled for June 27-28.