Speech Part I

Sir,

I now rise to present before this august house the Annual Budget for the year 2003‑2004.

1.  Ever since October 1999 when the Democratic Government assumed power it has been demonstrating its commitment to promote all round growth and remove poverty in the state. Both the economic and human indicators of the past three years will show that this effort has borne fruit in a substantial way. The Gross state Domestic Product of the state at constant prices has risen from Rs. 1,62,680 crore in the year 1999‑2000 to Rs. 1,87,521 crore in 2002‑03 which is not only the highest in the country but is also the highest in terms of the growth rate. The human indicators put out by the Human Development Report of 2002 show that the HDI index rankings now place Maharashtra at no. 2 among the major states in India. These achievements have been possible because of the sustained efforts put in by the state government in the last few years to promote infrastructure to attract investment and implement policies assuring employment and social security to the common man.

Towards Fiscal Sustainability

. 2.  Last year I had submitted before this august house my government’s intentention to implement a reform programme which would take the state towards fiscal sustainability over a defined path. As a part of this programmme which is known as the Medium Term Fiscal Reforms Programme (MTFRP) my government committed itself to a series of major policy initiatives which were a significant departure from past practices in a number of important sectors of the economy and of government. These initiatives were and are expected to take the state towards fiscal sustainability over the next couple of years. You are aware that the programme required the government to take some difficult and to some extent politically unpopular decisions. Before I submit to this house a report card in respect of these decisions I would like to say a few words on the level of fiscal prudence achieved by this government in the immediate aftermath of the MTFRP.

Reduction in Revenue Deficit.

3.  The Revenue and Fiscal Deficits had deteriorated from Rs. 5224 crore and Rs. 8576 crore in 2000‑01 respectively to Rs. 8189 crore and Rs. 10888 crore in 2001‑02. This indicated not only a rise in expenditure but also a fall in receipts. As a result of the various measures proposed by me and subsequently adopted by this government for augmenting revenue and containing expenditure I can report that the revenue deficit this year is expected come down by Rs. 569 crore to Rs. 7619 crore from Rs. 8188 crore last year. The growth rate of revenue during fiscal 2002‑03 is 13.59% which is well above the Compounded Annual Growth Rate (CAGR) of 9.33% over the past five years. The growth in Revenue expenditure which had been held down to 2.35% in 2001‑2002 grew by 9.1% only which is well below the CAGR of 13.22% of the last five years. This will show that my government has been successful in taking the first steps towards fiscal sustainability. It is the intention of my government to continue with the good work of following the fiscal reform programme and ensure that by the time the tenure of this government ends the finances of the state are back on an even keel having recovered from the difficulties caused by the large off‑budget debt raised from the market in the last few years.

Increase in Revenue Receipts.

4.  The revenue receipts have increased from Rs. 30092.95 crore in 2001‑02 to Rs. 34182.16 crore in 2002‑03 which represents a rise of 13.59%. This increase is not merely a function of the economy picking up but also of the rationalization in tariffs and improvements in collection though various administrative measures introduced by my government. The increase has been achieved inspite of a reduction in the state’s share of central taxes as a percentage of tax revenue from 10.32% in 2001‑02 to 9.83% in 2002‑03 and is mainly a consequence of the state’s own mobilization effort. It reflects the soundness of the financial fundamentals of the state of Maharashtra. I have been trying to bring to the attention of all concerned through various forums of the injustice to this state by the centre and the Eleventh Finance Commission which reduced our share of devolutions from 6.12% to a mere 4.63% (a loss of Rs. 5600 crore during the award period) on the argument that the state of Mumbai’s economy is reflective of the economic well being of the state as a whole. I will continue to pursue this point before the 12th Finance Commission. It is necessary to keep in mind that the centre mops up more that 25% of its revenues from this state but parts with less than 4.63% through the devolution mechanism.

Establishment related Expenditure.

5.  On the expenditure side it is well known that salary related expenditure and interest payments have been taking away a large chunk of our revenue and putting a squeeze on normal administrative activity as well as development expenditure. I am glad to inform you that through a series of tight establishment related austerity measures, which I will spell out later in this speech but in which the employees and their unions have played a significant and constructive role, my government has been able to contain salary related expenditure to Rs. 17866 crore which compares favourably with the expenditure of Rs. 18188 crore incurred in 2000‑2001 and Rs. 17457 crore incurred in 2001‑02. This containment has contributed significantly to the reduction in revenue deficit.

Debt Service and Retirement.

6.  The problem of the state’s increasing debt burden has been agitating the minds of all us. Interest payments which rose to Rs. 9043 crore during 2002‑03 have been eating into the availability of funds for development. It is significant to note that out of a debt of Rs. 69800 crore (excluding off budget debt) as much as Rs. 33176 crore is owed by the state to the central government itself. This debt carries the high average interest rate of 11.5%. During 2002‑03 the centre was paid an amount of Rs. 4167 crore from state resources by way of interest. We have requested the centre to reduce this interest rate. During 2002‑03 the state government retired Rs. 1110 crore of the debt owed to the centre, Rs. 268 crore of the debt owed to FIs and banks and Rs. 552 crore of the debt owed to investors in the off budget instruments. Thus, a substantial part of this year’s receipts went towards retiring old and expensive debt. This was done inspite of the fact that Maharashtra had to remain out of the large open market borrowings programme which the centre recently arranged through the Reserve Bank of India for most of the other states to retire their debt. The debt reduction which Maharashtra managed without any help from the centre required us to tighten our belt in many ways and called for much sacrifice from all concerned both inside and outside government. Hon’ble members, please permit me to use this forum to assure all stake holders in our financial system that this government entirely upholds the sanctity attached to its borrowing programmes and is not only willing but fully capable of meeting its solemn obligations as a sub sovereign entity within the Republic of India.

Budget Estimates 2003-2004

7.  The Revenue Receipts for the year 2003‑04 are estimated at Rs. 38293.45 crore whereas the revenue expenditure is estimated at Rs. 42834.55 crore resulting in a Revenue Deficit of Rs. 4541.09 crore. The Fiscal Deficit for the year 2003‑04 is estimated at Rs. 9374.45 crore only. I will continue with my effort to bring down the level of overall borrowings to sustainable levels and I expect to be guided in this by the parameters established for Maharashtra by the Medium Term Fiscal Reform Programme.

Report Card on MTFRP.

8.  I would now like to report to this august house the various steps which my government took to keep to the reforms programme announced by me last year.

Fiscal Responsibility Bill.

9.1  You are aware that the Fiscal Responsibility and Budgetary Manage‑ ment Bill was introduced by my government during the winter session at Nagpur. I look forward to a healthy debate in the house on the various provisions of the bill. The need for a legal framework for enforcing fiscal discipline on popular governments has been recognized the world over. The Government of India has already introduced such a bill in Parliament. Maharashtra is among the first states in India to take the concrete measure of drafting an enactment and putting it up for debate. I am sure that we will not be found wanting in keeping up to our tradition of being an enlightened state which provides leadership to others.

Guarantees.

9.2  I have already touched upon the effort put in by my government in the area of debt management. An important aspect of this is the issue of contingent liabilities on account of guarantees issued to Public Sector Undertakings (PSUs) and cooperative sector entities, namely sugar factories, spinning mills and rural banks. The practice of giving these guarantees routinely in the past had the effect of increasing government’s exposure to debt without any reference to repayment capacity. Last year I had announced a policy of not issuing guarantees to PSUs except as a credit enhancement measure for loans and issues which are otherwise viable. I had also said that commercial enterprises in the cooperative sector would not be given guarantees and would be expected to raise finance for their projects based on its internal strengths. I am glad to report to this august house that this government has been able to adhere to this promise during the fiscal 2002‑03 on both counts. Guarantees have not been issued to PSUs except in circumstances where the government was convinced that the PSUs own income streams would be able to service the debt and the possibility of devolvement was low. This has meant, firstly, that very few guarantees were issued during the year, and secondly, that there has been a reduction in the cumulative amount of guarantees outstanding because for the first time in the state the guarantees expiring due to loan retirement have been more than the fresh guarantees issued. As far as the cooperative sector is concerned also no guarantees were issued to newly registered societies and only those among the existing societies were given guarantees whose projects had already been sanctioned and were in the pipeline.

Power Sector Reforms.

9.3  In the power sector, as promised last year, my government came out with a white paper in which we chalked out a detailed programme for bringing MSEB out of the red. The paper was a result of detailed and exhaustive discussions with all stakeholders including the unions. The draft Maharashtra Electricity Reform Bill has now been updated based on the suggestions and comments received from various sources. An understanding has been arrived with the unions whereby a programme has commenced to clean up the corporation’s balance sheet. My government had already taken some steps in this direction in the previous years by converting MSEB’s loan liabilities to government into equity and by providing the Board with ROR subvention. Cleaning up MSEB’s balance sheet is necessary for taking the important decisions relating unbundling and corporatisation. I am glad to state that for the first time after many years the six monthly results of MSEB beginning 1.4.2002 have shown a cash surplus. We now expect MSEB to set off on the road to becoming a self sustaining organization operating well within the limits imposed by MERC. Government will of course continue to subsidise those services of MSEB which it feels are in the public interest such as supply to electricity to farmers. However, this will have to be within MTFRP limits.

Water Users Associations.

9.4  In the irrigation sector the state has been able to significantly progress its policy of formalizing farmer participation in water distribution and management. As many as 346 Water User Associations are now operating in the state on a total irrigated area of 1,13,907 hectares. Another 1163 Water User Associations are in various stages of formation. These will cover an irrigated area of 3,57,240 hectares. This work will be continued vigorously in the coming year.

Cotton Procurement Scheme

9.5  As mentioned in my speech last year the cotton federation entered the raw cotton market with a minimum support price scheme based on the price offered by the central government through the Cotton Corporation of India. However, all hon’ble members are aware that the crop failures in Vidarbha and the consequent hardship to the farming community led to a popular demand for compensating cotton growers who had counted on the assured prices given in the previous years. My government, therefore, agreed to compensate these farmers to the extent of their sales to the cotton federation through a suitable scheme. I have accordingly made a provision in the budget for this purpose. The cotton purchased by the cotton federation this year was about 25 lakh bales as against 155 lakh bales purchased last year. Fortunately, the cotton prices in both the domestic and international markets are firming up and I do not expect any significant loss to government due to the proposed scheme.

Cooperativisation of Dairies and Chilling Centres.

9.6  It may be recalled that in my budget speech last year I had announced that a major initiative would be launched to cooperativise the government owned dairies and chilling centres and especially those which are being run by government at a loss. I am glad to announce that a significant breakthrough has been achieved in this direction. The milk dairies at Latur and Sangamner and the chilling centre at Kadegaon have been handed over to the cooperative unions to run. This will not only help the milk producers by giving them the freedom to process and market their milk on the best terms available in the market but will set the course for government to get away from this business which is now fully developed and ready to be taken out of government’s hands in the interest of the milk producers in the state. During 2003‑04 it is proposed to cooperativise some more government dairies and chilling centres.

Maharashtra Board for Restructuring of State Enterprises.

9.7  The Maharashtra State Enterprises (Restructuring and Other Special Provisions) Act, 2000 was notified on 16th August, 2001. The Maharashtra Board for Restructuring of State Enterprises (Conduct of Business) Regulations, 2001 were notified on 8th January, 2002. Upto 15th March, 2003 a total of eight references were made to the Board by the state government. In the case of the Maharashtra State Fisheries Development Corporation the Board has recommended that the corporation should complete the projects in hand and then come for disinvestments. In respect of MAFCO five bidders have been shortlisted and the process of due diligence is underway. In respect of the Chitali Distillery the process is expected to be completed by August 2003. The Maharshtra Land Development Corporation has been recommended for closure under section 560 of the Companies Act. In the case of the MSRTC the Board has given its final recommendations for restructuring. In the case of Haffkine Bio‑pharma the Board has recommended induction of a strategic partner because Rs. 70 crore is required for new projects. The hearings in respect of the Maharashtra Mendhi Va Sheli Vikas Mahamandal have been completed and the final orders are expected by 15th April, 2003. In the next year the Board is expected to take up at least another 10 PSEs for hearing.

Downsizing the Bureaucracy.

9.8  The work of downsizing the bureaucracy continued to make substantial progress during 2002‑03. The number of employees transferred to the surplus cell rose from 3397 to 7000. In the process comprehensive reviews of the organizational structures of departments have happened. Many departments have been significantly downsized. Redeployment of staff from the surplus cadre cell to vacant posts has led to substantial savings. Salary related expenditure as percentage of revenue earned has come down from a high of 69% in 1998‑99 to 51% in 2002‑03. In real terms this entire exercise resulted in a saving of Rs. 279.24 crore during 2002‑03.

Computerisation of Treasuries.

9.9  In my last budget speech I had announced that the programme for computerization of treasuries was making good progress. I am happy to state that the Koshwahini website is now in operation on the intranet. It makes available voucher and wise challan wise information to every one and provides an innumerable variety of reports. It gives unprecedented control to each Mantralaya department over its budget allocations and brings about complete transparency in the working of the treasuries not to mention accuracy and speed in the compilation of accounts. A word of appreciation of the work done by the NIC team and the staff of the Directorate of Accounts & Treasuries on this pioneering task will not be out of place here.

Sick units of Co-operative Sector.

9.10   The Cooperative Sector which has been the pride of Maharashtra and has brought the fruits of industrial and technological development to the doorstep of the farmer is now on its way to becoming globally competitive.  Last year I had promised a regulatory mechanism which would take care of the excess capacity in the sugar and spinning mill sectors since this was impacting the good industries adversely.  In the current year, 11 sugar factories were brought under liquidation of which evaluation of assets has been completed in respect of 6 factories.  All procedures will be completed by June 2003.  Further, 20 spinning mills have been brought under liquidation of which final orders have been issued in respect of 20 units.  Interim orders are passed in respect of 12 mills. 9.10     The Cooperative Sector which has been the pride of Maharashtra and has brought the fruits of industrial and technological development to the doorstep of the farmer is now on its way to becoming globally competitive.  Last year I had promised a regulatory mechanism which would take care of the excess capacity in the sugar and spinning mill sectors since this was impacting the good industries adversely.  In the current year, 11 sugar factories were brought under liquidation of which evaluation of assets has been completed in respect of 6 factories.  All procedures will be completed by
June 2003.

Annual Plan 2003-04

10.  With the various steps enumerated above and the encouraging results which they have shown my government believes that the time has now come for concentrating its resources on the areas of direct relevance to the people who need them most, that is the poor and the needy. One of the prime benefits of inviting private participation in physical infrastructure is the release of resources for social infrastructure. My government proposes to make the best use of this opportunity. The size of the Annual Plan for 2003‑04 has been fixed at Rs. 12,650 crore which is larger than last year’s Plan size of Rs. 11,135 crore , that is by 11.97%, and the same is being sent to the Planning Commission for approval. I would like to especially invite the attention of the hon’ble members to the large outlays in both the plan and non plan segments of the budget for the sectors relating to the social services, elementary education, primary health care and housing for the poor. It will be noted that within the social services the segments relating to backward classes, tribal affairs and women & child welfare have received special attention. I would like to go into these initiatives in some detail.

Project Unite

11.  Our government believes that the Medium Term Fiscal Reforms Programme, on which it has bestowed so much attention during the past year, cannot be an end in itself. When additional resources become available they should be diverted to those core areas of responsibility where they are most needed. Our government believes that social justice is a core responsibility of government. While the financial stringency of the last couple of years was being vigorously addressed many in our government were also burning the midnight oil on preparing Maharashtra’s first Human Development Report. The Report, prepared in consultation with the Planning Commission and the United Nations Development Programme is an in depth analysis on the status of various aspects of human welfare in our state. The objective of the report is to serve as a guide for future planning to achieve social and economic justice. In line with the basic thrust of the report our government would like to launch a direct assault on poverty and deprivation and initiate a new process of “Budgeting for Human Development”. Our government has, therefore, decided to comprehensively define social justice, evolve a concept of social justice index and design and implement a scheme to be known as “Project Unite” which will seek to focus on the needs of the weak and disadvantaged sections of society, to pull them into the mainstream, to enable and empower them and thereby attempt to do away with the various divides in society of poverty, age, gender, health, occupation, location and caste.

12.  The budget being a primary policy document of government has to operationalise the intent of the government to attack these divisions in society. The overriding cause of these divisions remains the condition of acute poverty affecting large sections of the population. The World Bank in its study of the finances of the government has also stressed the need for reorienting the budget to alleviate poverty. The emphasis in the budget is, therefore, to attack directly the vulnerabilities of the deprived sections and put in place a framework which will enable the vulnerable sections to look forward to a life which will give them a chance to recognize their potential and strive towards its fulfillment.

13.1  Project Unite is based on the economics of social justice . The concept predicates the development of the weakest as the driver of development and views funding for social justice as investment with the highest potential for socio‑economic returns rather than as charity or social security. As per the views of Dr. Amartya Sen this government will, through Project Unite, institute a mechanism for integrating social justice with development planning. The Project shall have a philosophical side and a physical side with the former driving the latter. With regard to the former my government will take the following steps

Social Responsibility Bill.

13.2  Recognizing that fiscal responsibility and social responsibility are two sides of the same coin, as instruments for ensuring social justice, our government will work towards formulating and presenting for debate a Social Responsibility Bill. Fiscal responsibility is essential to achieve social responsibility which in turn brings pressure for fiscal responsibility. Social justice is the responsibility of every societal unit of civil society, home, office, public place, service delivery and regulatory institution. Social Responsibility Legislation will complement Fiscal Responsibility Legislation for assuring the constitutional guarantees of equality, fraternity and dignity. The law will seek to provide a process mechanism for identification and measurement of divides and a plan for bridging the divides. It will also provide for determination of a Social Justice Index, linkage and redirection of resources to various targets of social justice fixing responsibility of each societal unit, social justice audit and punishment for avoidance of responsibility, leakage and corruption

Social Justice Day.

13.3  The 26th of July, the birthday of Rajrishi Shahu Maharaj will be celebrated every year as Social Justice day. A Social Justice Report, on the lines of the Human Development Report will be released on that day every year. The Report shall indicate the extent and trend of various divides, specific actions taken and proposed to be taken to bridge those divides, time bound action plans and their impact on society. A Social Justice Cell will be set up in the Planning department for the compilation of data for putting out the report and attempts will be made to associate the best sociologists and economists in the state with the report. An amount of Rs. 25 lakhs has been provided in the budget for work relating to the Social Justice Report including determination of the social justice index, involving regular intensive research, surveys and studies of various types

Phule-Shahu Ambedkar Award.

13.4  Institutions have to play a key role in promoting social justice and our government feels that there is a need for establishing a prestigious prize in the field of social justice. Ourr government will, therefore, institute the Phule Shahu Ambedkar Award for Social Justice. The award will be distributed every year to the institution selected from among urban local bodies, rural local bodies, government departments, NGOs and cooperative institutions. I have made a provision of Rs. 1 crore in the budget for this purpose.

14.1  On the physical side, Project Unite will concentrate the resources of government on providing access to education, health care and housing for the poor on a massive scale

14.2  Education among the weaker sections will be facilitated through the three‑fold strategy of scholarships, hostels and residential schools. These will be extended to cover all sections and groups left out of current reach.

Scholarship for girls - classes VIII to X

14.3  At the outset, our government believes that education of girls belonging to the weaker sections has to be the backbone of socio‑economic reform in society. Currently, girls belonging to the backward classes in the standards of V to VII are being given scholarships of Rs. 30 per month. The drop out rate from standard VIII onwards is more than 70%. The scholarship scheme will, therefore, be extended to also cover 3 lakh girls from standard VIII to X. The scholarship amount will be raised to Rs. 100 per month. The annual cost to the exchequer of this component of Project Unite will be Rs. 30 crore. It is our hope that as a result of this girls will be able to play a more fruitful role in development of society.

Rajshri Shahu Maharaj Excellence Prize Scheme

14.4  While freeships & scholarships are necessary for upkeep there is a need to provide incentive for excellence. Government has decided that students belonging to backward classes and the disabled may be given the following benefits to enable them to compete with the rest. Students in junior colleges who have achieved distinction in S.S.C. shall be given an excellence grant of Rs. 300 p.m. Students who stand first in the general list in the State for S.S.C. and H.S.C. shall be paid an amount of Rs. 2.5 lakhs each while those standing first in each Board shall be paid an amount of Rs. 1 lakh. Students who qualify for the general merit list shall be paid Rs. 50,000 each. The student standing first in the district shall be paid Rs. 25,000. One hundred students belonging to backward classes shall be selected through a competitive examination and the cost of their education in the best professional courses in the country shall be paid by the Government. Ten best students from families with incomes below Rs. 2.5 lakhs per annum will be selected on a competitive basis and sponsored by the government for higher education to the best foreign universities. I have kept an outlay of Rs. 6.50 crore for this purpose. The Scheme will be known as Rajrishi Shahu Excellence Prize Scheme.

Hostel Capacity & Grants

14.5  Currently, the State Government runs 243 backward class hostels which provide facilities to 19028 students. The hostels provide the basic needs of food, shelter and some education related expenses. However, the available hostel capacity, especially hostels for professional course students, is grossly inadequate in relation to demand. Our government will increase the capacity of government hostels by 4000 seats during 2003‑2004. In addition it will offer grants between Rs. 500 to Rs. 1000 per student to an estimated 17,000 backward classes students to meet unmet demand of students eligible for hostel accommodation but unable to get the same due to non availability. This benefit will also be applicable to disabled students. I have made a provision of Rs. 10 crore for this purpose in the budget.

Ashram Shalas.

14.6  To meet the unmet demand for ashram shalas it has been decided to start ashrams shalas for the backward classes on a large scale. There is a backlog of 169 primary ashram shalas and 102 middle ashram shalas for VJNTs. The backlog has emerged due to lack of adequate funding during the last several years. My government has decided that the entire backlog of ashram shalas for VJNT will be cleared during the next year. For the scheduled castes also one ashram shala will be sanctioned in each taluka in the state. Government has sanctioned grant‑in‑aid to some schools for the disabled during the current year. The remaining schools which fulfill norms shall be provided grant‑in‑aid during financial year 2003‑2004. An amount of Rs. 6.95 crore has been earmarked for this purpose.

Hostel Upgradation.

14.7  Unlike ashram shalas the hostels do not provide any educational support. It is not possible to convert all hostels into ashram shalas on the required scale. My government has therefore decided to upgrade hostels by providing them with an adequately equipped library, supplemental coaching, some sporting facilities and a computer cell. An amount of Rs. 25 crore will be spent for this purpose.

Public Schools.

14.8  In their turn the best ashram shalas in the state will be upgraded to the level of public schools inn stages. These schools will seek to provide quality education on par with that available in the best private schools in the country. It is expected that in course of time there will be at least one such public school in each district in the state. For 2002‑03 I am making a provision for Rs. 9 crore to convert 6 ashram shalas to public schools, one in each division, during 2003‑04.

English Medium.

14.9  Our government has decided to permit English as the medium of instruction in all aided educational institutions for the weaker sections. This would be applicable for the existing institutions as well as new institutions. Select institutions will also be utilised to provide inclusive education to disabled children.

Dr. Babasaheb Ambedkar Social Justice Educational Excellence Prize.

14.10  All government and aided institutions will be graded and a system of performance based grant in aid as well as the incentives and disincentives introduced. Excellence incentives of Rs. 5 lakhs, Rs. 3 lakhs and Rs. 2 lakhs each shall be paid to the first 3 institutions at the State Level and Rs. 1 lakh for institutions at the divisional level. Institutions not improving inspite of being provided with the opportunity to do so shall be closed. A provision of Rs. 1 crore is made for the above purpose. The scheme will be known as Dr. Babasaheb Ambedkar Social Justice Educational Excellence Prize.

Monitoring Delivery.

14.11  For the various components of Project Unite I am making a provision of Rs. 125 crore in the budget for the year 2003‑04. However, I may say that our poor delivery system is the single largest problem facing all our programmes for the poor. Our government will pay careful attention to this aspect of administration and will try to adopt a participatory mode wherever feasible. Recurring complaints of leakages in implementation are a betrayal of the poor and a negation of social justice. Our government will deal with this seriousness. Special social audit cells will be set up to monitor the implementation of social justice schemes. These will report directly to the Collector in the districts and to the Chief secretary in Mantralaya. A helpline will be established to these cells for direct access. Our government will initiate criminal action against organizations found indulging in irregularities. Such organizations will be blacklisted and not allotted any work in the future.

Rajrishi Shahu Maharaj Health Scheme for upgradation of PHCs and Rural Hospitals

15.  Project Unite will include a special health care component. This will be presented in the form of the Rajrishi Shahu Maharaj Health Scheme for improving the health of the marginalized sections of Society. Hon’ble members are aware that the government has attempted to create a network of health infrastructure comprising Primary Health Centres and Rural Hospitals in the hilly, tribal and rural areas so as to service the needy and vulnerable sections of society. The Rajrishi Shahu Maharaj Scheme will augment these peripheral institutions by providing them with equipments, instruments and material supplies which were hitherto either not available or inadequately available. Apart from making available adequate supply of essential drugs the scheme envisages augmenting the services of safe blood supply at selected first referral units and providing emergency obstetric and pediatric care at these institutions. Further, it will be the endeavour of my government to build the capacity of health care providers such as doctors, nurses and other para‑medical staff working in these institutions to provide quality care. An amount of Rs. 25 crore has been earmarked for this scheme. It will benefit lakhs of underprivileged people living in the backward regions of rural Maharashtra.

Dalit Vasti and Tanda Vikas.

16.  The housing component of Project Unite in based on the recognition that shelter is an important aspect of social security. Government has decided that the coverage of the Rural Dalit Vasti scheme shall be expanded and funds will be provided under this scheme for being used on priority for providing water and sanitation. Project Unite will ensure, inter alia, that drinking water is available in the Dalit Vastis within the next 2 years. Similarly, a tanda vikas yojana will be implemented for the VJNT on the lines of the Dalit Vasti scheme. People belonging to backward classes form a predominant part of the population in slums. Government would, over a period of time, move towards a holistic and time bound development of slum areas to provide housing to people belonging to these classes. Funds under the Dalit Vasti Scheme in urban areas shall also be redirected and used on identified Dalit Vastis. There are 27519 houses in various stages of completion under the backward class housing scheme. A suitable mechanism will be devised for completion of these houses expeditiously.The schemes of Lok Awas Yojana and Gramin Nivara Yojana will be extended to the VJNT. Appropriate outlays have been proposed for all the purposes meentioned above.

Education of Tribal Students.

17.  Members are aware that the tribal population of Maharashtra has been receiving special focus through the tribal sub‑plan. For the educational development of tribals 53 new Government Hostels and 10 new ashram schools were opened during the year 2002‑03 in addition to the existing 191 Hostels and 416 Government Ashram Schools. Construction of 28 hostel buildings was completed, construction of 26 more buildings is in progress and work on 5 more buildings will be taken up during the year 2003‑04. Construction work of 56 Ashram school buildings is in progress and will be completed in 2003-04. The maintenance allowance for students studying in aided Ashram Schools run by voluntary organisations has recently been increased from Rs. 335/‑ to Rs. 500/‑ per month per student benefiting about 1,38,800 students. The maintenance allowance provided to the students of Government Hostels at the Divisional, District and Taluka levels has also been increased from
Rs. 150/‑ to Rs. 200/‑, Rs. 25/‑ to Rs. 75/‑ and
Rs. 25/‑ to Rs. 50/‑ per month per student respectively. This has benefited about 18,685 students in all.

Integrated Tribal Development-thousand families project.

18. Despite the work enumerated above our Government is not satisfied with the outcome and would like to adopt tribal welfare as one of the thrust areas of development. In order to promote integrated welfare of the tribal population in the districts of Nagpur, Nandurbar, Dhule, Thane, Amravati, Nashik, Gadchiroli, Gondia, Chandrapur, Raigad, Pune and Ahemednagar, it is proposed to target 1000 tribal families in each district through a holistic approach. The programme components will include horticulture and forestry plantation programme for smaller and marginal farmers, cattle development centres, veterinary health care and fodder development programme for those owning livestock, supporting interventions for landless labour, community health and empowerment of women. This project spread over 5 years, would cost Rs. 144 crore for a target population of 12000 families. The project, on the lines of “Wadi” programme implemented by the “BAIF” will be implemented by reputed NGOs. An outlay of Rs. 20 crore has been earmarked for this purpose.

Improvement of Tribal Infrastructure

19.1  It is proposed to provide funds to the tune of Rs. 1 crore per annum for construction of low cost hydro electric projects and development of alternative energy sources like solar and wind powers to energies villages in remote and inaccessible tribal areas.

19.2  A special action plan for Akkalkuwa and Dhadgaon for strengthening infrastructure will be taken up. For this purpose , an outlay of Rs. 10 crore has been earmarked.

19.3  The tribals in urban areas like greater Mumbai are marginalised communities. There are 72 tribal hamlets in suburbs of Mumbai. It is proposed to undertake a survey to ascertain the nutritional, health, educational and occupational status of these communities with a view to devise suitable programmes to bring them above the poverty line. An outlay of Rs. 10 lakhs has been proposed for this purpose.

19.4  To improve the qualify of education of tribal residential schools, it is proposed to impart in‑service training teachers to improve their teaching and communication skills and upgrade subject knowledge. To this end, 4 regional in‑service training centres with faculty drawn from outside experts will be established at an estimated recurring cost of Rs. 40 lakhs per annum. Capital expenditure required is Rs. 50 lakhs. An outlay of Rs. 1 crore is proposed for this purpose.

19.5  It is proposed to equip the Tribal Research and Training Institute to undertake research in selected areas to assess the socio‑economic status of the tribal communities, sectoral evaluation of Governmental efforts so far to improve their livelihood and suggest suitable remedial measures in service delivery, provision of infrastructure, training and educational, health and employment programmes. An outlay of Rs. 1 crore is earmarked for this purpose.

19.6  It is proposed to establish a Gondwana Museum and Research Centre at Nagpur to showcase the rich traditions of tribal communities in Vidarbha. An amount of Rs. 25 lakhs will be spent on this.

19.7  For effective implementation of the Restoration of Lands to Tribals Act, and to monitor, guide and render legal help to tribals, it is proposed to establish regional legal cells. An amount of Rs. 25 lakhs has been earmarked for this work.

20  Providing Employment and self employment opportunities is an over riding priority of my government. Besides improving living standards it gives every individual self confidence and such citizens strengthen democracy. The 2 major groups needing support for employment and self‑employment are youth and destitute women.

Guaranteed Vocational Training.

21.  Government will implement the Guaranteed Vocational Training, (magel tyala prashikshan) for youths belonging to backward class, Other Backward Class and EWS families below the poverty line. The training will be given in the various Lok Seva Kendras of the Technical Education Department and Krishi Lok Seva Kendras run by State and Agricultural universities. After training they shall be provided a kit to enable them to start earning their living. One lakh youths shall be covered under the scheme during the next year at an estimated cost of Rs. 25 crores at an average of Rs. 2,500 per person

Self-employment schemes through Corporations.

22.  Schemes of various corporations established for the development of backard classes and weaker sections shall be recast for effective implementation. Government will take steps to facilitate flow of funds from various Central Corporations for direct lending. As loans for small amounts of upto Rs. 25,000 are currently not covered under loan schemes of Central Corporations, soft loans of upto Rs. 25,000 will be given by the State Corporations from their own funds at an interest rate of 2% but without subsidy. It is proposed to cover 50,000 youths from the weaker sections under the scheme. Government will also streamline the procedure for sanction of loans to beneficiaries to cut down delays and avoid harassment. A special procedure will be designed for loans upto Rs. 5,000 for women. An additional outlay of Rs. 43.75 crore crores has been sanctioned in the budget for Corporations under Department of Social Justice. Government would like these Corporations to be able to assist every unemployed person belonging to weaker sections. This is only possible if the corporations are given adequate funds and there is complete recovery of loans. If the corporations ensure recovery of past loans government will ensure that they do not fall short of funds. I am sure that the honorable members will assist the Government in creating the right atmosphere for recovery

Enablement of the disabled.

23.  My Government has decided to implement a comprehensive programme of Enablement over the next 3 years. Various components of enablement of disabled shall be provided on a Mission Mode basis. This will include enrolment of disabled students in general schools, improved their access to public places, assistance in corrective surgery where possible, provision of aids and appliances and facilitation of socio‑economic rehabilitation. To promote all round participation in the programme a campaign will be taken on the same pattern as Sant Gadge Baba Gram Swacchata Abhiyan for which outlay of Rs. 5 lakhs has been earmarked. Rehabilitation will be done in j in collaboration with civil society. Funds for the scheme will be transferred a District Enabling Agency to be headed by the Collector. A State level Funds will be set up to be run jointly by Government and various donors. I will earmark an amount of Rs. 5 crore for the proposed mission.

Protection of Women.

24.  Women, especially from the weaker sections, continue to be neglected, exploited and victimised in every way. In development strategy and funding, as in real life, they continue to be on the fringes. Such development is neither meaningful nor sustainable. Destitute women and women in difficult circumstances are most vulnerable to deprivation, and sexual exploitation. My government attaches great importance to this problem and proposes to tackle it in a serious way. All the women and child development schemes have been reviewed. Outdated schemes are being closed and the remaining schemes will be implemented in an integrated manner. The consolidated provision under the women’s component of the plan will receive an additionl outlay of Rs. 35 crore.

Indira Gandhi Women Protection Scheme.

25.  Indira Gandhi Mahila Saurakshan Yojana will cover various groups of destitute women, women in distress and women under difficult circumstances including widows, deserted women, orphan girls, w devdasis, victims of sexual exploitation and atrocities. These women will be identified, listed and issued special Identity Cards and rehabilitated on priority under special programmes of economic development through grants and soft loans. Those uncovered will be paid assistance will be paid assistance at Rs. 250 per person. Such rehabilitation will cover one lakh women in the first instance. The State will effectively implement the rehabilitation guarantee given to these women. Assistance will also be provided for the education of their children on the lines provided to children belonging to backward classes. They shall be empowered through being organised under self help groups. The Mahila Arthik Vikas Mahamandal has been declared as the nodal agency for women’s empowerment in the state. The empowerment capsule will include self defence.

Alliance for Social Justice.

26.  In my interactions with NRIs, industrialists and others I have found that there is an unfulfilled desire amongst corporate houses and others in civil society to contribute in some significant way to the welfare of the of our society. To provide a window of opportunity for such impulses my Government has decided to initiate a programme under the name of Alliance for Social Justice in collaboration with Civil Society. A State Level fund for Social Justice shall be set up to be funded and managed jointly by Government and eminent persons from the corporate sector and the public. The Alliance will work for empowerment, rehabilitation and welfare of women, disabled, old and children so that over a period of time Civil Society is able to take care of the various divides within itself. Government will contribute to this fund an initial contribution of Rs. 5 crores which I have earmarked in the budget towards this fund. The fund will finance various types of welfare projects on a matching basis

Lok Seva Kendra.

27.  Taking into consideration the scope of employment opportunities to unemployed youths and the various service needs of citizens 596 Lok Seva Kendras have been established with the help of Local Bodies for providing public utility services in the urban and rural areas of the State. All Employment Exchanges in the state have been computerised and for selection of viable occupations a village‑wise survey has been carried out.

Minorities & EWS.

28.  The Maulana Azad Alpasankhyank Arthik Vikas Mahamandal which has been set up to encourage self employment among the weaker sections from the minorities has so far distributed loans of Rs. 7.48 crores to 1001 beneficiaries. Similarly, the Anna Saheb Arthik Magas Vikas Mahamandal has distributed loans of Rs. 24 lakhs to 43 unemployed youths belonging to economically economically weaker sections. In order to encourage these corporations to streamline their work and expand their activities it has been decided to increase the share capital contribution to theses corporations to Rs. 10 crores each in the year 2003‑04. This is against Rs. 1.50 crore and Rs. 6 crore respectively in 2002‑03

29.  Other Backward Classes constituting the largest group in the State form the backbone of the economy. Government feels that intervention is needed to bring young persons from this group into the mainstream. The scheme of post matric scholarship will, therefore, be extended to cover O.B.C. students on the lines of scheme applicable to the backward classes. This will benefit nearly 4 lakh students and cost the Government Rs. 120 crores per year. The scheme of freeship applicable to backward classes will also be extended to an estimated 4 lakh students of Other Backward Classes within the Creamy Layer at a cost of Rs. 58 crores annually. These two schemes shall cost the State annually Rs. 178 crores. A provision of Rs. 125 crores has been made in the Budget and the remaining provision will be made during the course of the year. Government will also give additional share capital assistance to the OBC Development Corporation for increasing the self employment potential among OBC youth.

Government is fully aware that in the State there is a large group of persons belonging to economically weaker sections while they have been given benefit under some schemes, there is no comprehensive programme designed exclusively for them as in case of other categories. This is mainly because responsibility for their development was not entrusted to any specific department. The Social Justice  Department has now been entrusted with the responsibility of development of economically weaker sections and that Department will shortly declare a development programme for this group.

Krishi Saptak Programme

30.1.  Government had constituted a high level committee under the chairmanship of the internationally renowned agriculture expert Dr. M. S. Swaminathan to prepare a draft plan for agriculture for the next 25 years. The report submitted by the committee on the 31st December, 2002 has principally been accepted by the Government. The report consists of 347 recommendations out of which it is proposed to implement the following seven under Krishi Saptak Programme during the year 2003‑04.

(1) To extend the crop insurance scheme to all dry land farmers in a phased manner.

(2) Programmes of organic farming, integrated pest management, vermi composting, bio fertilisers and pesticides will be implemented on a large scale for increasing the income of dryland farmers. Soil Health Cards will be given to each farmer.

(3) To undertake Maharashtra Agricultural and Horticultural Information and Technology initiative MAHITI-in order to guide farmers about agriculture and marketing activities and establishment of a Virtual University for technology transfer.

(4) For technical analysis of agriculture produce, necessary quality control laboratories will be established and a chain of marketing information centres will be established.

(5) Strengthening of women’s participation in agriculture.

(6) Promotion of self employment will be encouraged in Agriculture and allied activities.

(7) A consortium will be set up under the Chairmanship of the Minister for Agriculture and consisting of progressive farmers, agricultural experts and scientists.

30.2.  Some of these recommendations will be implemented through existing schemes. An outlay of Rs. 20 crore is proposed during the year 2003‑04 for the implementation of some of these recommendations.

Sarva Shikshan Mohim

31. Prior to the implementation of the Sarva Shikshan Mohim, the Government had started Vasti Shalas and the Mahatma Phule Shikshan Hami Yojana Schemes. A large number of out of school children had been enrolled under these schemes. These schemes are now a part of the Sarva Shikshan Mohim.

The Sarva Shikshan Mohim has succeeded in ensuring that no child in the age group of 6 to 14 years remains without getting an education. A provision of Rs. 47.59 crore is proposed for the year 2003‑04 for this scheme.

Free School  Test  books

32. This year the Government will provide free text‑books to all girl students from the Ist to the VIIth standards in Zilla Parishad and Municipal Corporation schools. The scheduled caste and scheduled tribe boys studying from the Ist to the VIIth standards in these schools will also get free text‑books. The State Government has decided to cover all students studying in the Vasti Shalas and Mahatma Phule Education Guarantee Centres under this scheme. The expected expenditure on this account is Rs. 26 crore to be made from the provisions made under Sarva Sikshan Mohim.

Conversion of four District Leval Salary Schemes into State Level Schems

33. To ensure regular salary payments to the teachers and to achieve balanced development of education, the Government has taken a decision to convert four district level salary schemes into State Level Schemes from the year 2002‑03.

Providing cooked  mid day meals to school children

34. Under the Mid Day Meal Scheme, the State Government has started providing cooked meals to the students. An amount of Rs. 31.60 crore has been spent on this scheme during the year 2002‑03. A provision of Rs. 109.24 crore has been proposed for the year 2003‑04.

The Water Pollution Abatement Scheme.

35. The Environment Department has undertaken the water pollution abatement scheme under the centrally sponsored National River Action Plan. The objective of the scheme is to minimise river water pollution caused due to municipal sewage. This scheme includes the towns of Nashik, Trimbakeshwar and Nanded on the banks of the river Godavari and Karad and Sangli on the banks of the Krishna river. Works worth Rs. 92.86 crore have been sanctioned for this scheme. Works relating to the interception and diversion of sewage, a sewage treatment plant, low cost sanitation, improved crematoria and river front development have been undertaken at a total estimated cost of Rs. 55 crore. An outlay of Rs. 20 crore has been proposed for this scheme during the year 2003‑04.

Survey of viable occupations for Self Employment.

36. To help the beneficiaries in making a proper selection of viable occupations, a villagewise survey was carried out all over the State and District Employment Plans have been formulated accordingly. These will enable the youths to select viable occupations based on local needs and facilitate bankers to sanction loans to those unemployed youths preferring self employment.

Facilities for  the below poverty line card holders.

37. With a view to providing relief to people below the poverty line, rice is being supplied at a subsidised rate for such card holders. An outlay of Rs. 59.19 crore has been proposed during the year 2003‑04 for this purpose. Besides this an outlay of Rs. 38.52 crore has been proposed during the year 2003‑04 under the Antyodaya Anna Yojana for meeting the distribution and transport costs. For the distribution of food grains under the Annapurna Scheme, an outlay of Rs. 43.92 lakh has been proposed for the year 2003‑04.

I would like to state that the Government has presently decided to provide foodgrains at below poverty line rates to those workers of closed textile and spinning mills, sugar factories and private industries with a work force of more than one thousand whose annual income is less than Rs. 15 thousand per year.

Food grains purchase under the Minimum Support Price programme.

38. With a view to providing benefit of the Minimum Support Price Scheme to the farmers in the State, 750 purchase centres were opened and jowar, bajra and maize was purchased at the rate of Rs. 485 per quintal and paddy at the rate of Rs. 530 or Rs. 560 per quintal. Besides this special drought relief is also paid at the rate of Rs. 5 to Rs. 20 per quintal. Upto the 25th January 2003 about 13 lakh quintals of paddy, 5 lakh quintals of jowar and 13 thousand quintals of maize has been purchased. Although the amount of Rs. 125 crore invested in this scheme last year by the State is not yet fully reimbursed by the Central Government, the State Government has spent approximately Rs. 110 crore by the 31 st January 2003 and ensured full payment of dues to the farmers.

Information  Technology.

39.1. The Government has made great strides in the last three years in bringing E‑Governance to the people of the State and thereby further empowering them to participate meaningfully in the process of democratic decentralisation. Considering the excellent progress made by the State, the Computer Society of India, a pioneering institute in the computer field, has awarded E‑Governence Prizes‑2002 to Government of Maharashtra’s 3 services namely SETU‑Citizen’s Services Centre, the Public Works Department’s website and SARITA which is a service program of the Stamps and Registration Office.

39.2. As a result of the Government’s policy of computerisation, 7/12 records to the rural population and property cards to the urban population are available very easily. The attendance of Government employees in Mantralaya, the current position of citizen’s letters, applications and grievances through the SAHAJ program have been computerised successfully.

39.3 The I‑SETU project is implemented with the aim of providing service to citizens on an anywhere, anytime basis.

V-SAT  System.

40. Under the Disaster Management Programme the Government has erected a state wide network for comunication via V‑SAT. This V‑SAT system is available at most of the District Headquarters. The services available through this system include V‑SAT phones, video conferencing and E‑mail. The capability of this Mahanet V‑SAT Network is soon being augmented. This facility has made multipoint video conferencing possible between the control rooms situated at Mumbai and Pune and the Districts. This has led to a curtailment in administrative expenditure.

A Memorial to Krantisingh Nana Patil.

41. A memorial dedicated to the freedom fighter and founder of the shadow Government Krantisingh Nana Patil will be erected at Yede Machhindra and Kundal in Sangli District. An initial provision of Rs. 20 lakh has been proposed for this purpose in the year 2003‑04. Full neccesary funds will be made available for this purpose.

A Memorial to the poet B.S. Mardhekar.

42. A memorial dedicated to the renowned Marathi poet B.S. Mardhekar will be erected at Mardhe in Satara District. A provision of Rs. 30 lakh has been proposed in the year 2003‑04 for this purpose.

Erection of a Statue of  Chatrapati Shivaji Maharaj on Raigad Fort.

43. In order to consecrate the memory of Chhatrapati Shivaji Maharaj who spent his life for the welfare of the people, it has been decided to erect his statue under the canopy on Raigad Fort. A provision of Rs. 10 lakh has been proposed for this in the year 2003‑04.

The serial on Chhatrapati Shivaji Maharaj.

44. A television serial named Chhatrapati Shivaji made by Ad‑dict, Mumbai, is under telecast Door Darshan 1. In view of the need to spread the message of Chhatrapati Shivaji throughout the country, the Government has decided to render financial assistance of Rs. 50 lakh to this serial by way of advertisements.

Multi Modal Cargo Hub  at Nagpur.

45. For speeding up the development of the Vidarbha region the Government has taken the important step of developing a multi‑modal international hub airport at Nagpur. During the year 2002‑03 an amount of Rs. 40 crore has been provided for land acquisition. A special purpose company called the Maharashtra Airport Development Company has been established for speedy completion of the project.

Modernisation of  the State police force.

46. The scheme of modernisation of the State police force is being implemented since the year 2000‑01. The scheme includes upgradation and modernisation of equipment, communication, training, forensic science laboratories, weaponry, police housing, computerisation and so on. Up till now an expenditure of Rs. 243.67 crore has been incurred on this scheme. About 2,000 new vehicles have been purchased for the police force. The V‑SAT communication system has been upgraded. The automatic computerised finger print identification system has been installed at Mumbai to document and store the finger print record of criminals. In addition to this, bulletproof cars, walkie‑talkie sets, speed boats, as also self loading rifles for use in Naxalite affected areas have been provided. An amount of Rs. 268.36 crore has been made available in the year 2002‑03 and for the year 2003‑04 a provision of Rs. 184.20 crore has been proposed.

Police Housing.

47. The police force has the task of maintaining law and order and controlling and detecting crimes. These are arduous duties and cast a heavy responsibility on the force. It is therefore necessary that policemen are provided with convenient accommodation. The Government has therefore taken the following important decisions.

(1) An FSI of 2.5 construction of residential quarters on plots owned by the Police, The Police Housing Corporation, Prison and Home guards has been allowed.

(2) Commercial use to the extent of 40 per cent of FSI in Mumbai, New Mumbai, Thane, Pune, Aurangabad and Nagpur and 25 per cent FSI in other places has been permitted.

(3) The transfer of development rights has been allowed the owners of reserved private plots and this rule will be applied to clusters of Government plots.

It will now be possible to construct quarters on land in the use of the Police Department, Prisons, and Homeguards without providing Government funds for the same.

Strengthening of the Civil Defence and Home Guard Organisations.

48. The Government has decided to strengthen the Civil Defence and Home Guard Organisations by providing for the purchase of material and equipment, vehicles, training aids, renovation of air raid precaution siren system and increasing the rates of various allowances paid to the volunteers. For the year 2003‑04 a provision of Rs. 29.26 crore has been proposed for these two organisations.

Tourism Development

49.1. The tourism sector has tremendous potential for generating employment and bringing about rapid rural development. It is estimated that while an investment of Rs. 10 lakh generates on an average 45 jobs in agriculture and only 13 jobs in industry, it creats 89 jobs in tourism. Maharashtra has a lot to offer to tourists. It has 720 Kms. of coastline, rugged forts, pilgrim centres, metropolitan cities, hill stations, world heritage sites and an unmatched variety of culture and hospitable people. Considering the tremendus potential that the tourism sector holds for employment and rural development, the State Government has decided to give a special impetus to this sector in the coming year. For the year 2003‑04, an outlay of Rs. 101 crore has been proposed for this sector which constitutes a substantial increase over the previous year.

49.2. The first phase of the Ajanta‑Ellora Conservation and Tourist Development Project has been successfully completed. The project has been awarded the international Pacific Asia Travel Association Grand Award for the best heritage project and also the National Award of the Ministry of Tourism in the same category. The Government of Japan has again sanctioned a sum of Rs. 360 crore for the second phase for the development of roads, electrification, water supply, afforestation and the conservation of the caves. A provision of Rs. 55 crore has been proposed during 2003‑04 for this purpose.

49.3. Mumbai‑Raigad, fort Janjira, fort Kuda, Leni Shriwardhan Harihareshwar and Sindhudurg have been declared as the Konkan Riviera national tourist circuit. The development work of this circuit is being undertaken. A provision of Rs. 5 crore has been proposed during 2003‑04 for this purpose.

49.4. For the convienience of pilgrims Government proposes to take up the Ashtavinayak circuit and other pilgrim centres including the Jyotirlingas for development of requisite infrastructure. A provision of Rs. 12 crore has been proposed during the year 2003‑04 for this purpose.

49.5. To showcase the glorious history of Maharashtra, it is proposed that a fort‑circuit be taken up for development. Shivneri, the birth place of Shivaji Maharaj, would be given particular attention and special programme for its beautification, water supply and approach roads will be undertaken. A provision of Rs. 10 crore has been proposed during the year 2003‑04 for this purpose.

49.6. Large areas of Vidharbha are under forest cover and the region is well suited for the development of wild life and eco‑tourism. It is proposed to develop special wild life tourism zones with strong private sector participation. The Maharashtra Tourism Development Corporation will acquire land outside the wild life sanctuaries and offer it for development. A provision of Rs. 5 crore has been proposed for the year 2003‑04 for this purpose.

The development of wild life eco‑tourism in Vidarbha will contribute significantly to employment generation in the tribal dominated forest areas of Vidarbha.

The conservation of the meteorite impact centre of Lonar in Buldhana district will be taken up with a view to preserving this fragile and unique eco‑system and developing it as a world tourist destination.

49.7. Publicity and promotion is an integral part of tourism development across the world. Most destinations have been marketing their products very aggressively in India. Realising the importance of promotion for development of tourism, it is proposed to undertake a major national and international publicity campaign for Maharashtra. This will definitely help in attracting a larger number of tourists to the state. A provision of Rs. 7.95 crore has been proposed during 2003‑04 for this purpose.

Anti Erosion Works.

50. Every year, especially during the mansoon the erosion of soil in the vulnerable areas along the coastline causes financial loss. Therefore, to prevent the erosion of soil, it is proposed to provide Rs. 7.57 crore under the anti sea errosion works scheme and Rs. 2.97 crore under Konkan Vikas timebound Programme. A total provision amounting to Rs. 10.54 crore is therefore proposed during the year 2003‑04 for this purpose.

Special Repairs to Jetties.

51. Thousands of passengers travel every day by the sea route from the Mandva, Rewas and Mora passenger ports of Raigad District to Mumbai City. The existing Jetties of these passenger ports have been constructed long back and therefore, from the safety point of view of passengers, special repairs to these jetties have become imminent. It is proposed to provide a sum of Rs. 3 crore during the financial year 2003‑04 for this purpose.

Higher and Technical Education.

52. A provision of Rs. 1 crore has been proposed for the construction of a hostel building for girls in the 100 year old Vir Jijabai Technological Institute at Mumbai. This will enable girl students from outside Mumbai to join this prestigious institute and acquire an education in the engineering stream.

Walmiki Ambedkar Awas Yojana.

53. The Government has decided to implement the Walmiki Ambedkar Awas Yojana in 62 cities for slum dwellers living below the poverty line or belonging to economically weaker sections of society. A subsidy of upto Rs. 60,000 is provided to them for construction of new houses. A provision of Rs. 10.21 crore has been proposed for the year 2003‑04 for this purpose.

State Sector Minor Irrigation.

54. In keeping with the Government’s policy of giving priority to minor irrigation schemes 50 new such State level schemes have been undertaken and will lead to the creation of 30,000 hectares of fresh irrigation potential. An outlay of Rs. 54.83 crore has been proposed for the year 2003‑04 for this purpose.

Khar Land Development Scheme.

55.1. The European Economic Community aided Saline Land Reclamation project phase‑II for the Sindudurg, Ratnagiri, Raigad and Thane Districts has been started in October 1998. In accordance with the underlying financial agreement an amount of 15.50 Million ECU will be provided to the State by the year 2005 in the form of grant‑in‑aid. An amount of Rs. 10.66 crore will be provided by the State as it’s share .

55.2. 80 Kharland schemes are to be completed under this project reclaiming an area of 8,000 hectares. Women’s development, fisheries, rehabilitation of the mangrove eco‑system and farmers’ training are other objectives of the scheme.

55.3. An assistance of Rs. 5.20 crore has been received for this project so far. During the year 2002‑03 an amount of Rs. 2.10 crore had been made available. For the year 2003‑04 an outlay of Rs. 36 crore has been proposed.

Hydro Electric Projects.

56.1. During the current year there has been an addition of 3 MWs to the installed capacity of hydro projects through the Chaskman project. The Ghatghar and Shahanoor Hydro Electric Project are in progress. For the year 2003‑04 an outlay of Rs. 301.65 crore has been proposed for hydro electric projects.

The 250 MW capacity Ghatghar and 0.75 MW capacity Shahanoor Hydro Electric Project will be commissioned in the year 2004‑05 and 2002‑03 respectively. The annual unit generation from these project will be 467 and 2.68 million units respectively.

56.2. The Government has adopted a policy for the privatisation of hydro electric projects upto 25 MWs capacity for captive generation.

Command  Area Devopment Programme.

57. 13.49 lakh hectares of land have been covered with the construction of field channels and field drains under the Command Area Development Programme on 26 major irrigation projects that cover a total area of 18.92 lakh hectares. The Water And Land Management Institute at Aurangabad conducts farmers’ training programmes regularly and has trained about 7,500 farmers and 1,650 women farmers in irrigated agriculture so far. 50,000 hectares of land is planned to be handed over to water users’ associations. An outlay of Rs. 18 crore has been proposed for the year 2003‑04 for this programme.

Concession in  Water Rates.

58.1. From the year 2002‑03 triple penal charges on water rates have been brought down to 1.25 to 1.5 times of normal rate and a 5 per cent rebate has been offered to those farmers who pay their water bill on time.

58.2. In order to use water economically and efficiently and to increase the crop production and irrigation revenue, a separate law for farmers’ participation in irrigation management is being formulated.

Hydrology Project.

59. In view of the increasing demand for water, the World Bank aided Hydrology Project is being implemented for the accurate and dependable long term planning of scarce water in the river valleys. A provision of Rs. 10.70 crore has been proposed for the year 2003‑04 for this purpose.

The Establishment of the Maharashtra Irrigation Finance Corporation.

60. As per the directives of the Hon’ble Governor regarding the removal of the backlog the Government has constituted the Maharashtra Irrigation Finance Corporation on the 27th September 2002 for raising funds through bonds for all the irrigation corporations.

Special Concessions for Co-operative Industrial Estates.

61. To promote small scale units in co‑operative industrial estates, special concessions like 2/3 exemption in non agriculture assessment, concession in transfer fee for plots situated on Government land, exemption from audit fee on Government matching contribution on loan covered by Government guarantee, simplification of the procedure for according administrative approval to the co‑operative industrial estates which do not require Government guarantees, approval to raise 20 per cent matching contribution from the Maharashtra State Co‑operative Development Corporation, have been extended. For the year 2003‑04, a provision of Rs. 72.75 lakh has been proposed for this purpose.

Clearing backlog of incentives.

62. The Government has an accumulated backlog of various incentives offered to the industrial units in the State. It is proposed to raise the funds required for this purpose through the Net Present Value based repayment facility offered to beneficiaries of the Package Scheme of Incentives Scheme who opt for deferment in the payment of Sales tax. From the funds raised the Government will clear the accumulated backlog of all small scale and large scale industrial units during the year 2003‑04.

MIDAS Act.

63. To achieve rapid economic growth in the State by facilitating creation of high quality infrastructure through public‑private partnership, the Government has drafted a new legislation named Maharashtra Infrastructure Support and Development Act. This will be brought before the House for deliberations during the current Session of the Legislature.

SEZ Act

64. As a policy initiative, the Government is encouraging setting up of special economic zones (SEZs) in the State. Two SEZs have already been approved by the Governement of India. For creating an environment which would be hassle‑free and promote orderly and rapid development in these SEZs, the Government has formulated a draft of a new enabling legislation to be called Maharashtra Special Economic Zones Act. This proposed Act will provide for a legal framework for expeditious approvals and streamlining of procedures essential for efficient conduct of business.

The proposed legislation could also be extended to other specially designated areas outside the SEZs likes garment parks, automatic ancillary parks, food parks, floriculture parks and others to provide similar facilities to the industry and business. This will strengthen Maharashtra’s competitive position and provide investors with the long awaited supportive environment.

Non- Conventional energy sources.

65. Maharashtra has made significant strides in the generation of power from environment friendly renewable sources. I am proud to state that, due to the pioneering work done during the last three years by Maharashtra in the generation of electricity from wind power, the country has achieved the fifth place in the wind power generating countries of the world.

It is proposed to levy a Green energy tax on energy consumed by industrial and commercial establishments. The revenue will be used for further generation of renewable and non-conventional sources of energy. A bill in this regard will be introduced in the next session of the Legislature.

The establishment of new Courts.

66. Taking into account the number of cases pending in Courts and for the convinience of the people Government has established new courts at Pandharkavda, Kille Dharur, Dondaicha, Barshi, Mhaswad and Khed.

Removal of backlog of medical seats

67. The backlog of medical seats in the Vidarbha and Marathwada regions will be removed with the start of the two new Government Medical Colleges at Latur and Akola which have 100 seats each.

Special development programme for the Vidharbha, Marathawada  and Konkan Regions.

68. The goal of Government is to achieve balanced and equitable development of different regions of the State. For the rapid development of Vidarbha, Marathawada and Konkan, the Government has formulated a revised programme which is under implementation. For this purpose an additional outlay of Rs. 20,15 and 14 crore is proposed for Vidarbha, Marathawada and Konkan respectively in the annual plan for the year 2003-04.

Rashtriya Sam Vikas Yojana.

69. The Planning Commission has initiated the Rashtriya Sam Vikas Yojana in the year 2002-03. Under this scheme, an amount of Rs. 15 crore will be made available annually, for the next 3 years, for Bhandara and Gadchiroli districts, which have been identified using indicators of poverty and agriculture productivity. Schemes like drought proofing, infrastructure, education and health, handlooms, agriculture processing and information technology are included. The plans prepared for both these districts have been approved by the Planning Commission. This scheme will give momentum to the process of development of Bhandara and Gadchiroli districts.

The Employment Guarantee Scheme.

70.1. An amount of Rs. 850 crore has been provided in the year 2002-03 for the Employment Guarantee Scheme which has created 15 crore mandays of employment.

70.2   Since scarcity like conditions are prevailing in the State, some of the norms of the Employment Guarantee Scheme have been relaxed for the easy availability of work in the irrigation, soil and water conservation and road development sectors. For example the expenditure limit on road works has been extended from 30 to 50 per cent. A large number of on going soil and water conservation works have been taken up under this scheme through the Mahatma Jyotiba Phule Jalbhumi Abhiyan.

70.3. The labour attendance on 10,066 Employment Guarantee Scheme works as on the 8th March 2003 is 5,11,597. One lakh metric tonnes of foodgrains have been distributed to the labourers as a part of their wages at 5 kilogram per day in districts affected by scarcity like conditions. Recently 1,15,800 metric tonnes foodgrains have been received and the same are being distributed.

70.4. The State Government aims to complete the incomplete works in a phased manner as a part of its policy and initiative. Under this programme 7,491 incomplete Employment Guarantee Scheme works and 10,163 Jawahar wells have been completed upto December, 2002.

70.5. It is expected that during the year 2003-04, 16 crore mandays of employment will be generated. A provision of Rs. 475.32 crore has been proposed for the year 2003-04 for this purpose. The Government is committed to provide adequate funds for the Employment Guarantee Scheme as per the requirement.

Road Development Programme.

71.1. A programme to connect all villages having a population of more than 500 in hilly and tribal areas, and having more than 1000 in other areas, by all weather roads is being implemented in the State. Under this programme 20,351 out of a total of 20,845 villages have been connected by all weather roads by the 31st March 2002. A massive programme of black topping of 13,092 kilometers of roads and the construction of 1,057 bridges predominantly on rural roads has been taken up under NABARD loan assistance. Out of these, 9,296 kilometers of black topping and 692 bridges have been completed. An outlay of Rs. 179.69 crore has been proposed for the year 2003-04 for these works.

71.2. For the effective implementation of the Road Development Programme, the Government has taken up some important projects through private financing. Out of 527 works amounting to Rs. 20,723 crore proposed to be taken up under private financing, 135 works amounting to Rs. 3,626 crore have been completed and 109 works amounting to Rs. 2,152 crore are in progress. Another 283 works amounting to Rs. 14,945 crore are at different stages of planning. The upgradation of 700 kilometers of the Mumbai- Aurangabad- Nagpur road to National Highway standard is in progress. The Government had earlier taken up the integrated road development project through the Maharashtra State Road Development Corporation for Nagpur, Pune, Aurangabad and Amravati cities.

Jeevandai Arogya Yojana.

72.  The Jeevandai Arogya Yojana is being implemented in the State to enable persons below the poverty line to get treatment and surgery for heart disease, kidney transplant and brain and nervous system surgery. Financial assistance up to Rs. 70 thousand each is provided to the patients. A provision of Rs. 7 crore is proposed for the year 2003-04 for this purpose.

Maharashtra Health System Development Project.

73. Out of the 144 works started so far under the World Bank Assisted Health System Development project 36 works have been completed and remaining works are expected to be completed by the end of December 2004. For this purpose a provision of Rs. 204.75 crore is proposed for the year 2003-04.

Yashwant Gram Samruddhi Yojana.

74. The Yashwant Gram Samruddhi Yojana announced in August 2002 is an innovative scheme aimed at empowering the Gram Sabhas and Gram Panchayats through a demand driven approach with the focus on community ownership in which the local people would identify investment and participate in its execution . An amount of Rs. 42.58 crore has been made available for this scheme in the year 2002-03. Taking in to consideration the response to this scheme, an additional amount of Rs. 110.19 crore as been made available from other sources. For the year 2003-04, an outlay of Rs. 50 crore has been proposed for this scheme. This will be enhanced according to the requirement.

Development of surroundings of village Nevase.

75. The Government has resolved to develop the surrounding areas of Nevase in Ahmednagar District exalted by association with the great humanitarian Shri Sant Dnyaneshwar Maharaj. A provision of Rs. 76.78 lakh has been proposed for the year 2003-04 for this purpose.

Indira Awas Yojana.

76. The Indira Awas Yojana is being implemented with the objective of providing free houses to rural people below the poverty line. The beneficiaries include members of the scheduled castes, scheduled tribes, freed bonded labourers as also members of the other backward classes. The target of construction during the current year is 88,625 units, out of which 33,970 units have been completed by the end of December 2002 and work is in progress on 58,851 units. The expenditure on this scheme upto 31st December 2002 is Rs. 99.83 crore. An outlay of Rs. 113.93 crore has been proposed for the year 2003-04 for this purpose.

Sampoorna Gramin Rojgar Yojana.

77. The Centrally Sponsored Sampoorna Gramin Rojagar Yojana is being implemented as a fully integrated scheme in the State from the year
2002-03. Under the scheme, 5 kilogrammes of foodgrains per person per manday are being distributed at the B. P. L. rate to the labourers while the rest of the wages are being paid in cash. The objective of the scheme is to provide additional wage employment and food security to the people of rural areas willing to take up manual work in their villages. A provision of Rs. 112.17 crore has been proposed for this scheme for the year 2003-04.

Minor irrigation scheme.

78. For minor irrigation schemes with a capacity of 0 to 100 hectares, the total expenditure incurred during the year 2002-03, upto December 2002 is Rs. 28.50 crore. An outlay of Rs. 82.43 crore has been proposed for the year 2003-04 for this purpose.