New Delhi: The Planning Commission on April 11 fixed the annual plan size for Karnataka at Rs 8610.61 crore for the year 2002-03.

The 10th Plan outlay was projected at Rs 43,558.23 crore at 2001-02 prices, an official statement said.

The plan was finalised at a meeting between the Deputy Chairman of the Planning Commission K C Pant and Karnataka's Chief Minister S M Krishna.

Pant asked the state to contain net borrowing to sustainable level as suggested in the medium term fiscal policy signed between Karnataka and the Department of Expenditure.

The pension liabilities should also be accommodated within the corpus of pension fund, he said, adding the state should strive to increase the share of project-based finance in aggregate plan resources and progressively reduce the share of untied grants and loans in aggregate plan resources.

He drew the attention of the state towards stagnating crop productivity and pointed out that cropping pattern needed to be diversified. In power sector, it was pointed out that with the prevalent tariff structure, the state would be providing a subsidy of Rs 2389.48 crore.

The 10-year financial restructuring plan prepared with a commitment to extend financial support of Rs 8999 crore upto 2005 would help in restoring sector's health, he said.

Pant advised the Karnataka government to take urgent steps to prepare a vision document and introduce legislation to restrict further exploitation of ground water and take suitable measures for drain water harvesting.

PTI