Kerala Sets Ambitious Economic Targets for 15th Five-Year Plan

Keralam has set a target of increasing its Gross State Domestic Product (GSDP) to Rs 28 lakh crore and raising its annual economic growth rate from 5% to 7% under the 15th Five-Year Plan, reported PTI. The State Planning Board approved the approach paper for the plan at its first meeting after being reconstituted on Thursday. The meeting, chaired by Chief Minister V D Satheesan , was held at the board’s headquarters in Pattom. According to an official statement, the state’s GSDP currently stands at Rs 16 lakh crore. The proposed plan seeks to expand the economy by attracting investments from private institutions, cooperative societies and non-resident Keralites. “The plan also aims to raise the state’s annual growth rate from the present five per cent to seven per cent,” it said, reported PTI. The 15th Five-Year Plan will follow a project-based implementation model, marking a shift from the approach adopted in previous plans. Its broader objective is to reduce the economy’s dependence on remittances and encourage investment through participation from different sectors. “Its approach paper proposes a shift from a remittance-dependent economy to an investment-driven economy through a participatory economic model involving the government, private institutions, cooperative societies and expatriates,” it said. The Planning Board approved the creation of a Participatory Cell to develop project designs, guidelines, rules and frameworks for initiatives involving investments of more than Rs 10 crore under this model. It also cleared a revolving fund of Rs 100 crore to finance project preparation and related studies. The state will seek assistance under the Finance Department’s India Infrastructure Development Fund scheme for viability gap funding. Addressing the meeting, Satheesan stressed the need to accelerate development work, prevent delays in project execution and make better use of available resources. He also called for effective mobilisation of funds available through Central government schemes for the state’s development. Planning Board Vice-Chairman K M Chandrasekhar said the state would work towards a participatory economy involving local self-government institutions, cooperative societies, banks, private companies and other agencies to meet the plan’s development targets. He said the board had begun district-level consultations to bring local bodies and sectoral experts into the planning process. Seven such meetings have been conducted so far. Chandrasekhar said the government was working to strengthen coordination with state departments and Central ministries to mobilise resources for development projects. The Planning Board’s vice-chairman and members will also hold monthly joint meetings with the Chief Secretary and senior government officials to improve coordination and speed up project execution. The board approved a proposal to seek annual financial assistance of up to Rs 2.44 crore from NITI Aayog. The funding will be used to strengthen the board’s functioning, build institutional capacity and improve its evaluation and data analysis divisions. The meeting noted that other states had already received assistance under the scheme. The board also decided to set up district-level project review committees to monitor the progress of development initiatives. Each committee will be jointly led by a designated Planning Board member and the concerned District Collector, and will meet every three months. All districts will receive financial support for development projects on the lines of existing packages for Kasaragod, Wayanad, Idukki and Kuttanad. A new scheme will also be introduced in each district to provide support to civil society organisations. District Collectors will identify eligible organisations and their proposed projects, subject to approval by the State Planning Board. The assistance will cover up to 50% of the total project cost, the statement said.