Punjab, which has witnessed negative growth in agriculture (about 1.91%) and gross state domestic product (at 4.5%), is focusing on making the state power surplus during the Eleventh Plan period. No wonder, over one-third of the total allocation of about Rs 37,314 crore will go to the power sector, at Rs 12,948 crore.

Significantly, the allocation of Rs 37,314 crore for Punjab in the 2007-2012 Plan represents almost a 100% increase over the Rs 18,657 crore allocated in the 10th Plan. Initially, the Plan size was Rs 28,805 crore. However, after chief minister Parkash Singh Badal met the Planning Commission deputy chairman, this was revised. A letter by Satish Chandra, secretary to the Punjab government and department of planning and Manjulika Gautam, principal advisor, confirms this.

At present, the state has 6,000mw while the demand is 9,000mw. The government plans to have 6,000mw additional power within the next three years to make it surplus. ??The state will ensure 24-hour supply to all sectors,?? say government sources.

??To make the state power surplus, many projects are under way?a 600mw project in Goindwal Sahib, 500mw in Lehra Mohabbat, 250mw in Shahpur Kandi and 500mw in Bathinda refinery.?? For power supply, the state is looking for joint ventures with other states. ??We have already held talks with the Orissa chief minister for setting up a 1,000mw joint venture in Orissa. Punjab will draw its share out of it. In addition, talks have been held with Arunachal Pradesh chief minister for a similar project,?? Sukhbir Singh Badal, Shiromani Akali Dal MP and party president, told FE.

Allocation for the irrigation sector has also been raised from Rs 298.20 crore to Rs 650 crore in Punjab?s Annual Plan for 2007-08, showing an increase of 117.97%. The allocation for agriculture in the Eleventh Plan, including horticulture, animal husbandry and cooperatives, is Rs 1,309 crore while it is at Rs 200.09 crore for the Annual Plan, which shows a rise of 142% over the previous year?s Rs 82.68 crore.

The rural development sector gets Rs 2,544 crore in the Eleventh Plan while in the Annual Plan the allocation is Rs 350 crore. Science and technology get Rs 297 crore while in 2007-08 Plan its share is Rs 40 crore.

The increase comes on the heels of the major heat generated by Punjab?s finance minister, Manpreet Singh Badal, declaring that he was prepared to quit if subsidies to various sectors were not stopped in view of the state?s poor fiscal health . Already, the subsidised Atta Daal scheme ??involving a subsidy of Rs 253 crore per annum has been shifted from Plan side to Non-Plan side,??” said sources.

Meanwhile, the Punjab, Haryana chambers of commerce has urged the Punjab government to undertake a seven-point strategy to attract investments during the 11th Plan. The Phdcci study submitted to the government calls for giving impetus to manufacturing, agri-business exports, hosiery, light engineering and automotive components.

But for all this, availability of power is critical. Therefore, the emphasis should be on capacity addition. This can be done if Punjab ties up with Himachal Pradesh and Uttarakhand, say sources. Also, the state should try and neutralise the disadvantage that it has being away from ports, which adds to raw material import costs and export freight.