Chief Minister Vilasrao Deshmukh told reporters on Wednesday that the state government would pick up 11 per cent stake either in cash or in kind in these projects.

The Maharashtra Maritime Board, which has been appointed as the nodal agency for the implementation of these projects, would sign the MoU with the developers of these two ports.

Mr Deshmukh said that the government had decided to follow the MoU route as there was no takers for the BOOT offer made by the previous government in 1995-96. Ammaline and Balaji Leasing would be exempted from stamp duty and registration fee payments.

During the first phase of Revas port development, which is expected to be operational by 2004, Ammaline would make an investment of Rs 1,300 crore. The port would handle 9 million annually. During the second phase, an investment of Rs 650 crore would be needed. The Revas port would handle cargo and container traffic.

Balaji Leasing would invest Rs 270 crore during the first phase of Dighi port, which would be ready by 2003.

It would invest Rs 70 crore during second phase to handle liquified petroleum gas and other such products.

In a related development, the Maharashtra government would prepare a Vision 2005 document with emphasis on increasing the state economy's growth at 10 per cent from the present 7.5-8 per cent.

It would also strive to further hike private sector investments in the state. The state would like to emulate the Chinese and Korean models of development and bring down the persons living below the poverty line to 15 per cent from the present 36 per cent.

Mr Deshmukh said a task force comprising experts and organisations like Maharashtra Economic Development Council, Indira Gandhi Institute of Development Studies to prepare its report in six months. Private sector would be further promoted in roads, ports, power, irrigation, airport and water conservation in a big way. Private sector investment of Rs 4,500 crore would be encouraged in the water conservation programmes to increase the irrigation level at 25 per cent in 17 districts whose irrigation level is low at present.

Meanwhile, the state government on Wednesday decided to cut the salaries and allowances of ministers by 10 per cent. As a part of austerity measure, telephone bills of ministers would also be curtailed by 35 per cent.

Bowing to the pressure from cotton growers and politicians, the state government on Wednesday decided to offer Rs 2,300 per quintal under the Monopoly Cotton Procurement Scheme, which has incurred a loss of Rs 800 crore. The state government has also decided to take a Rs 350 crore loan from the Mumbai Metropolitan Region Development Authority (MMRDA) to launch the procurement from October 24.