PM for more private sector participation in 12th Plan

New Delhi: Concerned over paucity of resources to step up growth, Prime Minister Manmohan Singh on Thursday called for greater participation of private sector in scaling up economic development in the 12th Five Year Plan (2012-17).

"A critical issue in any Plan is availability of resources… we do know that resources will be a constraint.

This underlines the need to focus more on efficiency of resource use, and also supplement public resources with private investment, wherever feasible", he said in his opening remarks at the meeting of the full Planning Commission here.

Against 8.2 per cent economic growth estimated for the ongoing 11th Plan, the growth target for the next Plan is being envisaged at 9-9.5 per cent.

According to the Planning Commission it would be realistic to aim for a double-digit growth rate in the 12th Plan. "Even 9 per cent will need strong action to solve sectoral problems", the Plan panel said in a presentation to the meeting on the preparations for the 12th Plan.

The objective of the next Plan, Singh said, should be faster, more inclusive and also sustainable growth.

"For this we need to define new targets…We need to identify the critical areas where existing policies and programmes are not delivering results, and should, therefore, be strengthened or even restructured", he said.

Singh asked both the Planning Commission and the Finance Ministry to work out available resources for the 12th Plan consistent with the fiscal viability.

The Prime Minister also asked the Commission to prepare the estimates of poverty based on the 2004-05 data as it would provide the extent of poverty reduction achieved in the 11th Plan.

"The latest data for 2009-10 have just become available and will provide the first authoritative measure of the extent of progress in poverty reduction during the 11th Plan period.

"I urge the Commission to prepare estimates of poverty based on the latest data, which can then be compared with 2004-05, and make them available for public discussion as soon as possible", Singh said.

As per the formula suggested by Tendulkar Committee the poverty had stood at 37.2 per cent in 2004-05.

According to the preliminary estimates prepared by Commission member Abhijit Sen, the poverty has declined to 32 per cent in 2009-10.