Jhansi: Annoyed over the dismal performance of Uttar Pradesh government in Bundelkhand, the Planning Commission has cancelled second installment of financial aid released by the Centre for development of the region.

Planning Commission Deputy Chairman Montek Singh Ahluwalia who was in Jhansi to inspect the pace of social and economic reform in the region stated that next installment will be released only after the review of development work done under the first phase.

In a meeting of advisory committee, Ahuwalia apprised that the growth rate is slow in Bundelkhand in accordance with the funds provided to the respective state government.  Even after the release of first installment, 50 percent of the work is not yet completed.

UP has utilized funds for only 23-25 percent work while Madhya Pradesh used it for 33-35 percent, he said.

Questioning the demands raised by the state government to raise the deadline for using Bundelkhand package, Ahluwalia said, “Only three months are left for the 11th Five year plan. In such a situation time limit and allocation of second installment will be taken into consideration after reviewing the work done after the release of first installment of fund.”