The growth rate in the nineties was better than that in the eighties, he said. Progress in literacy and decentralisation of power was appreciable.

Women literary grew from 28.85 per cent to 41 per cent, but literacy among the scheduled castes and tribes needs more attention, he added.

Welcoming the announcement of population policy by the state, Pant said it had set ambitious targets in the field of health services and birth rate.

The state has also done very well in the area of panchayati raj institutions, he added.

The plan panel chief drew the attention of the state to the wide gap in the cost of production and average tariff charged for power consumption in the state. It was pointed out that the differential was still higher in agriculture tariff which consumes nearly 43 per cent of power.

With the establishment of a power regulatory commission and in-principle acceptance of the Central ministry's recommendations on splitting the state electricity board, MP should accelerate power sector reforms.

The chief minister said a number of steps have been taken to improve the financial position of the state. These include the introduction of user charges and decentralisation of powers for better implementation.

The state has signed a memorandum of understanding with the ministry of finance. The Asian Development Bank has sanctioned $250 million programme loan for reform of state finances and PSUs, Singh said.

As part of administrative reforms, the state has decided to reduce 30 per cent of posts as recommended by the Fifth Pay Commission, 61,463 posts have been identified for abolition, and 37,917 posts have been surrendered, he said.

The chief minister requested revision of coal royalty to supplement the state's resources. The reorganisation of the state, as a result of the creation of Chattisgarh would cause additional financial burden, he said.