New Delhi, December 09: More central funds, freedom to use them as they wish, better infrastructure, protection for SSI units and tackling terrorism that threatens the economy were some demands that States aired at the National Development Council meeting here today.

While one of India's most underdeveloped States, Bihar, sought greater flexibility in labour laws to make the industry more competitive, highly industrialised and BJP-ruled Gujarat called for steps to fight terrorism, naxalism and check illegal immigration from Bangladesh.

Addressing the meeting, called to approve the Approach Paper to the 11th Plan, Gujarat Chief Minister Narendra Modi said acts of terror were a serious threat to development and need to be addressed rising above political considerations.

Far from fighting terror, Left-ruled Kerala appeared worried about the move to allow FDI in retail sector and de-reserve items kept for SSI units.

"The revised Approach paper...

Endorses the consumerist quest in asking for FDI in retail.

Its concern for employment generation is thus belied by a number of other measures like de-reservation of items kept in small-scale sector to FDI in retail trade...," CM VS Achuthanandan said.

His West Bengal counterpart Buddhadeb Bhattacharjee sought rebate in payment of interest on outstanding small savings loan and increase in grant component of normal central assistance for 11th Plan to 50 per cent.

A sub-committee of the NDC has already recommended resetting interest rates on past loans from NSSF.

While Haryana, Himachal and North-Eastern States wanted the Centre to set up a nuclear power plant, give funds to tap hydro power potential and better infrastructure, respectively, Uttar Pradesh was peeved by the delay in central clearance to various power projects in the state.

Uttar Pradesh Chief Minister Mulayam Singh Yadav said the Petroleum Ministry had raised "unnecessary objections" regarding the Dadri project, despite the state being ready with arrangements for land and water.

"For the Dadri Project, due to unnecessary objections raised by the Petroleum Ministry, contract for gas supply has not been finalised," Yadav said.

His Tamil Nadu counterpart M Karunanidhi said States should be given the freedom to prioritise schemes for fund deployment.

"Funds should be given with flexibility to tailor the conditions to the ground realities of different states in the Centrally Sponsored and Assisted Schemes," he said at the 52nd edition of NDC here.

As the country embarks on the Eleventh plan, it is time to take a fresh look at the planning process itself, Karunanidhi said, adding that the success of the next Five Year Plan would depend on India's ability to revitalise the agricultural sector.

BJP-ruled Chhattisgarh too stressed on agriculture growth, saying the Centre should allocate more funds to states for stepping up rural credit.

"Rural credit is an important critical input and the credit flow has to take a quantum jump if we have to achieve the four per cent target in agricultural growth.

The total allocation of NABARD is only Rs 14,000 crore, from which share of our state has been pegged at a meagre Rs 142 crore," he said.

Congress-ruled Punjab suggested that the Centre release funds to states for development without imposing conditions.

Chief Minister Amarinder Singh suggested that states which have achieved more than minimum national norms be suitably assisted to improve their performance further.

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