CONTENTS

______________________________________

Part I Macro Issues Page No

Chapter 1 An Overview 1-20

Chapter 2 Macroeconomic Framework 21-44
Chapter 3 Governance 45-58
Chapter 4 Agriculture 59-103
Chapter 5 Industry 104-122

Part II Social Sector

Chapter 6 Education 123-149

Chapter 7 Health 150-169
Chapter 8 Social Justice 170-208
Chapter 9 Employment and Skill 209-228
Development
Chapter 10 Handloom and Handicrafts 229-240
Chapter 11 Women’s Agency and Child Rights 241-258
Chapter 12 Rural Development 259-289
Chapter 13 Special Area Programmes 290-297

Part III Infrastructure

Chapter 14 Investment in Infrastructure 298-310

Chapter 15 Energy 311-352
Chapter 16 Transport 353-383
Chapter 17 Telecommunications 384-393
Chapter 18 Urban Development 394-409

Part IV Science and Environment

Chapter 19 Science and Technology 410-432

Chapter 20 Innovation 433-441
Chapter 21 Water Resources 442-468
Chapter 22 Environment and Forest 469-490
______________________________________

Acronyms
AABY Aam Admi Bima Yojana ANUSAT Anna University Satellite
ACA Additional Central Assistance AORC Assured Opportunity for
ACSS Antenna Control Servo System Research Careers
ADRTC Agricultural Development And APCTT Asian and Pacific Centre for
Rural Transformation Centre, Transfer of Technology
Institute For Social And APDP Accelerated Power
Economic Change, Bengalore Development Programme
ADS Accelerator Driven Systems APDRP Accelerate Power Development
ADSL Asynchronous Digital & Reform Programme
Subscriber’s Loop APMC Agricultural Produce Marketing
AE Adult Education Committee
AERCs Agro Economic Research APSSAT Andhra Pradesh Society for
Centres Social Audit
AERUs Agro Economic Research Units ARC International Advanced
AGILE Association of Geographic Research Centre for Powder
Information Laboratories for Metallurgy and New Materials
Europe ASC Academic Staff College
AGRI GDP Gross Demostic Product From ASHA Accredited Social Health Activist
Agriculture ASHWAS A Survey of Household Water
AGRI R&D Agricultural Research And and Sanitation
Development ASI Archaeological Survey of India
AHWR Advanced Heavy Water Reactor ASTROSAT Astronomy satellite
AIC Agriculture Insurance Company AT&C Aggregate Technical &
Of India Commercial
AICOPTAX   All India Coordinated Plan for  ATCM Antarctic Treaty consultative
Taxonomy   Meeting
AICTE All India Council for Technical ATCS Area Traffic Control System
Education ATI Advanced Training Institutes
AIE Alternative and Innovative ATM Asynchronous Transfer Mode
Education ATM Automated Telling Machine
AIIMS All India Institute of Medical AVI Accredited Vocational Institutes
Sciences AWS Automatic Weather Stations
AIMMP Area Intensive and Madarsa B2B Business-to-Business
Modernisation Programme B2C Business-to-Customer
AIR All India Radio BARC Bhabha Atomic Research
AISES All India School Education Centre
Survey BARCOM BARC containment model
ALICE A Large Ion Collider Experiment BBIL Bharat Biotech International
ALSAT Algerian Satellite Limited
AMPC Automatic Mail Processing BBSRC Biotechnology and Biological
Centre Sciences Research Council
AMPC Automated Mail processing BC Banking Correspondent
Centers BDO Block Development Officer
 Acronyms ii

BE Budget Estimate Development Units

BELIEFII Bringing Europe’s electronic CCE Centre for Continuing Education
Infrastructures to Expanding CCE Continuous Comprehensive
Frontiers Evaluation
BHU Banaras Hindu University CCMB Centre for Cellular and
BIPP Biotechnology Industry Molecular Biology
Partnership Programme CCRF Code Of Conduct For
BMTPC Building Materials and Responsible Fisheries
Technology Promotion Council CCTS Closed Cycle Thermal Systems
BOSS Open Source Software CDB Coconut Develoment Board
BOSS Bharatiya Operating System CDC Consultancy Development
Software Centre
BOYSCAST Better Opportunities for Young CDFD Centre for DNA Fingerprinting
Scientists in Chosen Areas of and Diagnostics
Science & Technology CDM Clean Development Mechanism
BPL Below Poverty Line C-DOT Centre for Development of
BRPSE, Board for Reconstruction of Telematics
Public Sector Enterprises C-DOT Centre for Development of
BSL-4 Biosafety Level 4 Telematics
BSNL Bharat Sanchar Nigam Limited CE Continuing Education
BTISnet Biotechnology Information  CEA Central Electricity Authority
System Network  CEL Central Electronics Limited
BU Billion Units CEP Continuing Education
C & AG Comptroller and Auditor General Programme
C DAPs Comprehensive District CERN European Organization for
Agriculture Plans Nuclear Research
CABE Central Advisory Board of CICT Central Institute of Classical
Education Tamil
CAC Central Apprenticeship Council CIDR. Central Identity Data Repository
CAG Comptroller and Auditor General CIET Central Institute of Educational
CAIPEEX Cloud Aerosol Interaction and Technology
Precipitation Enhancement CII Confederation of Indian Industry
Experiment CIL Coal India Limited
CAL Computer Aided Learning CITES  Convention on International 
CAPART Council for Advancement of Trade in           Endangered 
People’s Action and Rural Species     of wild fauna and flora
Technology CKMNT Centre for Knowledge
CAPIO Central Assistant public Management of Nano Science
Information officer and Technology
CAPIOs Central Assistant Public CLIC Compact Linear Collider
Information Officers CLTS Community Led Total Sanitation
CARE Centre for Advanced Research CMC Christian Medical College
and Education CMS Centralized Monitoring System
CBM Coal Bed Methane CO2 Carbon Dioxide
CBMC Capacity Building Management CoE Centers of Excellence
Cell CRO Clinical Research Organisation
CBRI Central Building Research CRV Coastal Research Vessels
Institute C-SAP Comprehensive State
CBSE Central Board of Secondary Agriculture Plans
Education CSCs Common Service Centres
CCDA Coal Conservation and CSIR Council of Scientific and
Development Act Industrial Research
CCDU Communication and Capacity CSO Central Statistical Organisation
iii Acronyms

CSS Centrally Sponsored Scheme Aid

CSS Centrally Sponsored Schemes DPSSL Diode-Pumped Solid-State
CSS Centrally Sponsord Schemes Laser
CTE College of Teacher Education DRC District Resource Centre
CTSA Central Tibetan School DRDA District Rural Development
Administration Agency
CURIE Consolidation of University DRI Differential Rate of Interest
Research, Innovation and DSIR Department of Scientific and
Excellence Industrial Research
CW Civil Works DSLAM Digital Subscriber Line Access
CYP Commonwealth Youth Multiplexer
Programme DST Department of Science and
DAC Department Of Agriculture And Technology
Cooperation DTH Direct to Home
DAE Directorate of Adult Education DWDM Dense Wavelength Division
DAE Department of Atomic Energy Multiplexing
DAE Department of Atomic Energy EAD Elite Athletes with Disability
DAHDF Department of Animal EAP Externally Aided Project
Husbandry, Dairying and EBB Educationally Backward Blocks
Fisheries ECA Essential Commiddities Act
DARE Department of Agricultural ECCE Early Childhood Care Education
Research and Education (ECCE) Centres
DAVP Directorate of Advertising and ECS Electronic Clearance Service
Visual Publicity EDI Electro-Dialysis Ionization
DBT Department of Biotechnology EDUSAT Education Satellite
DBT- Department of Biotechnology - EDWAS Enhanced Digital Wideband
ICRISAT International Crops Research Access System
Institute for the Semi-Arid EE Elementary Education
Tropics EEZ Exclusive Economic Zone
DDWS Department of Drinking Water EGA Employment Guarantee
Suppy Assistant
DEC Distance Education Council EGoM Empowered Group of Ministers
DFP. Song & Drama Division and EGS Education Guarantee Scheme
Directorate of Field Publicity EHM Electronics Hardware
DGE&T Director General of Employment Manufacturing
& Training eMO eMoney Order
DGFASLI Directorate General of Factory EMR Extra Mural Research
Advice Service & Labour ENVIS  Environmental Information 
Institutes System 
DGH Directorate General of EO Earth Observation
Hydrocarbons EOI Expression of Interest
DGMS Directorate General of Mines EPF Employee Provident Fund
Safety ERNET Education & Research Network
DHAN Development of Humane Action EScerts Energ Saving Certificates
DIET District Institute of Education ESCO Energy Service Company
and Training ESIC Employees’ State Insurance
DIU District Implementation Unit Corporation
DLM District Level Monitor EU European Union
DoHE Department of Higher Education FADs Fish Aggregating Devices
DOS Department of Space FAIR Facility for Antiproton and Ion
DPEP District Primary Education Research
Programme FCR Feed Conversion Ratios
DPHA Digital Programmable Hearing FDI Foreign Direct Investment
 Acronyms iv

FDI Foreign Direct Investment] IAY Indira Awaas Yojana

FICCI Federation of Indian Chamber of ICAR Indian Council for Agriculture
Commerce and Industries Research
FIR First Information Report ICAR Indian Council Of Agricultural
FIST Fund for improvement of S&T Research
Infrastructure in Universities and ICDS Integrated Child Development
Higher Educational Institutes Services
FORV Fishery and Oceanographic ICGC International Cancer Genome
Research Vessel Consortium
FTII The Film and Television Institute ICGEB International Centre for Genetic
of India, Pune Enigineering and Biotechnology
FTTH Fibre to the Home ICT Information and Communication
GAGAN GEO and GPS Augmented Technology
Navigation System ICT Information, Communications
GAP Good Agricultural Practices Technology
GATE Graduate Aptitude Test in ICTS International Centre for
Engineering Theoretical Sciences
GBS Gross Budgetary Support IDMI Scheme for Infrastructure
GCF Gross Capital Formation Development in Minority
GCV Gross Calorific Value Institutions/ Schools
GDP Gross Domestic Product IDS Institute Of Development
GDP Gross Demostic Product Studies, Jaipur
GEO Global Earth Observation IEBR Internal and Extra-Budgetary
GER Gross Enrolment Ratio Resources
GIS Geographical Information IECT Information, Electronics &
System Communication Technology
GIS Geographical Information IEDC Integrated Education for the
System Disabled Children
GIS Geographical Information IEDCSS Integrated Education of the
System Disabled Children at Secondary
GITA Global Innovation and Stage
Technology Alliance IEG Institute Of Economic Growth
GoI Government of India IERMON Indian Environmental Radiation 
GP Gram Panchayat Monitoring Network  
GPS Global Positioning System IFWTs Integrated Fixed Wireless
GSAT Geo-Synchronus Satellite Terminals
GSDP Gross State Demostic Product IGCA Indian Grid Certification
GSLV Geosynchronous Launch Authority
Vehicle IGCAR Indira Gandhi Centre for Atomic
GSM Global System for Mobile Research
Communication IGNCA Indira Gandhi National Centre
HAPs   Hazardous Air Pollutants  for Arts
HIV/AIDS Human Immune Virus/Acquired IGNDPS Indira Gandhi National Disability
Immune Deficiency Syndrom Pension Scheme
HP Himachal Pradesh IGNOAPS Indira Gandhi National Old Age
HPCS High Performance Computing Pension Scheme
System IGNOU Indira Gandhi National Open
HSP Human Space Flight University
Programme IGNWPS Indira Gandhi National Widow
HUDCO Housing and Urban Pension Scheme
Development Corporation Ltd IGVdb Indian Genome Variation
HYV High Yielding Variety database
I&B Information and Broadcasting IHHL Individual Household Latrine
v Acronyms

IIIT Indian Institute of Information Organisation

Technology IT Information Technology
IIM Indian Institute of Management IT&ITeS IT & IT Enabled Services
IIMC Indian Institute of Mass IT-BPO Indian Information Technology-
Communication Business Process Outsourcing
IISc Indian Institute of Science ITCs Industrial Training Centres
IISER Indian Institute of Science ITER International Thermonuclear
Education & Research Experimental Reactor
IISER Indian institute of Science ITI Indian Telephone Industry
Education and Research ITIR Information Technology
IISER Indian Institute of Science Investment Regions
Education and Research ITIs Industrial Training Institutes
IIT Indian Institute of Technology ITRA IT Research Academy
ILO International Labour ITRA. Technology Research Academy
Organization IUAC Inter University Accelerator
IMC Institute Management Centre
Committees IUU Illegal, Unregulated And
IMD Indian Meteorological Unrecorded
Department IYN India Youth Network
IMRB Indian Market Research Bureau J&K Jammu & Kashmir
IMRT Intensity Modulated JC Jagdish Chandra
Radiotherapy JNCASR Jawahar Lal Nehru Centre for
IMS Multimedia Subsystem Advanced Scientific Research
IMSc Institute of Mathematical JNV Jawahar Navodaya Vidyalayas
Sciences JRLM Joint Review and Learning
INCOIS Indian National Centre for Missions
Ocean Information Services JSS Jan Shikshan Sansthan
INM Integrated Nutrient Management JSY Janani Suraksha Yojana
INO India-based Neutrino KCC Kisan credit cards
Observatory KGBV Kasturba Gandhi Balika
INSAT Indian National Satellite Vidyalaya
INSPIRE Innovation in Scientific Pursuit KMoMA Kolkata Museum of Modern Art
for Inspired Research KVS Kendriya Vidyalaya Sangathan
IOR Improved Oil Recovery KYC Know Your Customer
IP Internet Protocol KYR Know Your Resident
IPIRTI   Indian Plywood Industry Research  LB Local body
and Training Institute   LBE Lead-Bismuth Eutectic
IPM Integrated Pest Management LCG LHC Computing Grid
IPR Intellectual Property Rights LEHIPA Low Energy High Intensity
IPR Institute of Plasma Research Proton Accelerator
IPR. Intellectual Property Rights LEP Life Enrichment Programme
IRDP Integrated Rural Development LHC Large Hadron Collider
Programme LIDAR Light Detection and Ranging
IRNSS Indian Regional Navigational  LINAC Linear Accelerator
Satellite System   LNG Liquefied Natural Gas
LNUPE Laxmibai National University of
IRS Indian Remote Sensing Satellite
Physical Education
ISA International Seabed Authority
LTTD Low Temperature Thermal
ISEC Institute For Social And
Desalination
Economic Change
LWR Light Water Reactor
ISI In-Service Inspection
LWR Light Water Reactor
ISOPAM Integrated Scheme Of Oilseed,
M&E Monitoring and evaluation
Pulses, Oil Palm And Maize
MANAS Multiple Analog Signal
ISRO Indian Space Research
 Acronyms vi

MAP   Management Action Plan  MTL Millenium Telecom Limited

MBCs Mail Business Centres Mtoe Million tones of oil equivalent
MDD Met. Data Dissemination MU Million Units
MDG Millennium Development Goal MW Mega Watt
MDMS Mid-Day-Meal Scheme MYRADA Mysore Resettlement and
MEMS Micro-Electrical Mechanical Development Agency
Systems MYT Multi Year Tariff
MEMS Micro-Electro-Mechanical NABARD National Agricultural Bank for
Systems Rural Development
MES Modular Employable Skills (MES NABARD National Bank for Agriculture
MHRD Ministry of Human Resource and Rural Development
Development NADA National Anti-Doping Agency
MIS Management Information NAIP National Agricultural Innovation
System Project
MIS Management Information NAIS National Agricultural Insurance
System Scheme
MKSS Mazdoor Kisan Shakti NAPCC National Action Plan on Climate
Sangathan Change
MM IV (Processing) MINI MISSION NARS National Agricultural Research
IV (PROCESSING) System
MM - I Mini Mission i (research) NAS National Accounts Stastics
(Research) NATP Nationa Agricultural Technology
MM - III Mini Mission iii (Post Harvest Project
(PHM & Management & Marketing) NBFIs Non Banking Financial
Marketing) Intermediaries
MM- II Mini Mission ii (Production & NCC National Cadet Corps
(Production Productivity) NCCS National Centre for Cell Science
& NCERT National Council of Educational
Productivity) Research and Training
MMP Mission Mode Projects NCEUS National Commission for
MMSCMD Million Standard Cubic Meters Enterprises in the Unorganized
per Day Sector
MMT Metric Million Tonnes NCHER National Commission for Higher
MNRE Ministry of New and Renewable Education and Research
Energy NCLP NationalChild Labour Project
MoA Memorandum of Agreement NCPA National Centre for Performing
MOA Ministry of Agriculture Arts
MOC Ministry of Coal NCT National Capital Territory
MoCP Ministry of Chemicals and NCTE National Council of Teacher
Petrochemicals Education
MOLE Ministry of Labour & NCVT National Council for Vocational
Employment Training
MOP Ministry of Power NDTL National Dope Testing
MoU Memorandum of Understanding Laboratory
MP Madhya Pradesh NE North East
MPCC Multipurpose Cultural Complex NEERI National Environmental
MS Mahila Samakhya Engineering Research Institute
MSK Mahila Shikshan Kendra NeGP The National e-Governance
MSME Micro Small and Medium Plan
Enterprises NEHU North East Hill University
MSP Minimum Support PRICE NELP New Exploration Licensing
MT Million Tonnes Policy
MTA Mid Term Appraisal NER North Eastern Region
vii Acronyms

NET National Eligibility Test NMMS National Means-cum-Merit

NFAI National Film Archives of India Scholarship
NFBS National Family Benefit Scheme NMS Network Management System
NFDB National Fisheries Development NOAA National Oceanic and
Board Atmospheric Administration
NFDC National Film Development NOAPS National Old Age Pension
Corporation Ltd Scheme
NFE Non Formal Education NOX  Nitric Oxides  
NFSM National Food Security Mission NPEGEL National Programme for
NFSM National Food Security Mission Education of Girls at Elementary
Pulses Pulses Level
NFSM Rice National Food Security Mission NPFP National Physical Fitness
Rice Programme
NFSM National Food Security Mission NPPs/HWPs Nuclear Power Plants/Heavy
Wheat Wheat Water Plants
NGN Next Generation Networks NPR National Population Register
NGO Non Governmental Organsiation NPYAD National Programme for Youth
NGO Non Governmental Organization and Adolescent Development
NGOs Non Governmental Orginations NRAA National Rainfed Areas Authority
NGOs/VOs Non-Government NRCFOSS. National Resource Centre for
Organisations/Voluntary Free and Open Source Software
Organisations NRDC National Research and
NGP Nirmal Gram Puraskar Development Corporation
NHB National Horticulture Board NREGA National Rural Employment
NHB National Housing Bank Guarantee Act
NHM National Horticulture Mission NREGS National Rural Employment
NHRC National Human Rights Guarantee Scheme
Commission NREGS National Rural Employment
NIC National Informatics Centre Guarantee Schemes
NIOS National Institute of Open NREGS National Ruralemployment
Schooling Guarentee Scheme
NIOT National Institute of Ocean NREP National Rural Employment
Technology Programme
NIPER National Institute of NRLM National Rural Livelihoods
Pharmaceutical Education and Mission
Research NRSMMS National Radio Spectrum
NIPGR National Institute of Plant Management & Monitoring
Genomic Research System
NIRD National Institute of Rural NSA Net Sown Area
Development NSAP National Social Assistance
NISER National Institute for Science Programme
Education and Research NSD National School of Drama
NIT National institute of Technology NSDC National Skill Development
NKC National Knowledge Committee Corporation
NKN National Knowledge Network NSDCB National Skill Development
NLC Neyveli Lignite Corporaton Coordination Board
NLI National Labour Institute NSDM National Skill Development
NLM National Literacy Mission Mission
NLM National Level Monitor NSG Nuclear Supplier Group
NMBA National Mission on Bamboo NSNIS Netaji Subhas National Institute
Applications of Sports
NMEEE Nation Mission on Enhanced NSS National Service Scheme
Energy Efficiency NSS National Service Scheme
 Acronyms viii

NSSO National Sample Survey Regulatory Board

Organisation PO Post Office
NSTMIS National Science & Technology POPs  Persistent Organic Pollutants 
Management Information PPMP Powe Project Monitoring Panel
System PPP Public Private Partnership
NSVS National Service Volunteer PPP Public Private Partnerships
Scheme PPP Public-Private partnership
NTFP Non-Timber Forest Products PPP Public Private Partnership
NVS Navodaya Vidyalaya Samiti PRI Panchayati Raj Institutions
NWP Numerical Weather Prediction PRI Panchayti Raj Institutions
NWROC National Weather Radar PSLV Polar Satellite Launch Vehicle
Operating Centre PTR Pupil Teacher Ratio
NYC National Youth Corps PURSE Promotion of University
NYKS Nehru Yuva Kendra Sangathan Research and Scientific
O&M Operations and Maintenance Excellence
OBC Other Backward Classes PYKKA Panchayat Yuva Krida Aur Khel
OCM Ocean Color monitor Abhiyan
ODL Open and Distance Learning R&D Research And Development
OFC Optical Fibre Cable R&D Research and Development
OIE Office Internal Des Epizooties, RBI Reserve Bank of India
Since May 2003 Renamed As RCCF Resource Centre for Cyber
World Organisation For Animal Frensics
Health, But Retained Acronym REC Rural Electrification Corporation
Oie RGGVY Rajiv Gandhi Grameen
OMC Oil Marketing Company Vidyutikaran Yojana
OoSC Out of School Children RGNIYD Rajiv Gandhi National Institute
ORV Ocean Research Vessel of Youth Development
OSC Oversight Committee RIDF Rural Infrastructure
OSH Occupational Safety and Health Development Fund
OTS One Time Settlement RISAT Radar Imaging Satellite
OVL ONGC Videsh Limited RKVY Rashtriya Krishi Vikas Yojana
PAT Perform, Achieve an Trade RLEP Rural Landless Employment
PBI. Post Bank of India Programme
PET Positron Emission Tomography RMSA Rashtriya Madhyamik Shiksha
PFBR Prototype Fast Breeder Fast Abhiyan
Reactor RPLI Rural Postal Life Insurance
PFZ Potential Fishing Zones RRBs Regional Rural Banks
PGP Post-graduate Programme RRCAT Raja Ramanna Centre for
PHM Post Harvest Management Advanced Technology
PHT Primary Heat Transport RSBY Rashtriya Swasthya Bima
PHWR Pressurised Heavy water Yojana
Reactor RSDP Remote Sensing Data Policy
PHWRs Pressurized Heavy Water RSY Rashtriya Sadbhavana Yojana
Reactors RTDT Regional technology
PIB, Press Information Bureau Demonstration and Transfer
PIs Principal Investigators RTE Right to Education
PLF Plant Load Factor RTI Right to Information Act
PLI Postal Life Insurance RTSMN Real Time Seismic Monitoring
PLI Primary Lending Institutions Network
PLP Post Literacy Projects S&DD Song and Drama Division
PMGSY. Pradhan Mantri Gram Sadak S&T Science and Technology
Yojna SACP Special Agricultural Credit Plans
PNRGB Petroleum & Natural Gas SAI Sports Authority of India
ix Acronyms

SAP State Agriculture Plan Architecture

SARAL Satellite with Argos and Altika SPQEM Scheme for Providing Quality
SAUs State Agricultural University Education in Madarsas
SBIRI Small Business Innovative SRC State Resource Centre
Research Initiative SRFTI Satyajit Ray Film and Television
SBL SHG-Bank Linkage Institute of India, Kolkata
SC Scheduled Caste SRR Seed Replacement Rate
SC/ST Scheduled Caste/ Tribe SSA Sarva Shiksha Abhiyan
SCB Scheduled Commercial Banks SSDM State Skill Development Mission
SCCL Singareni Coal Company ST Scheduled Tribe
Limited STAC/IS- Science and Technology
SCERT State Council of Educational STAC Advisory Committy/Inter-
Research and Training Sectoral Science and
SCI Science Citation Index Technology Advisory Committee
SCL Semi conductor Laboratory STP Software Technology Parks
SDCs Skill Development Centres STQC Standardisation, Testing &
SDCs State Data Centres Quality Certification
SDSC- Satish Dhawan Space Centre, SWANs State Wide Area Network
SHAR Sriharikota TA Technical Assistant
SEAT Scheme for Early Attraction of TAF Total Available Funds
Talent TAX Trunk Automatic Exchange
SEL School Education and Literacy TBM Test Blanket module
SERB Science and Engineering TCOEs Telecom Centres of Excellence
Research Board TDIP Telecom Development and
SERC Science and Engineering Investment Promotion
Research Council TDP Technology Development
SEZs Special Economic Zones Programmes
SGSY Swarnjayanti Gram Swarozgar TE Triennium Ending
Yojana TEC Telecom Engineering Centre
SGSY Swarn Jayanti Gram Swarozgar TECSAR An Israeli Reconnaissance
Yojana Satellite,
SHE Scholarships for Higher TEDM Time Domain Electromagnetic
Education in Science System
SHG Self Help Group TEM Transmission Electron
SHG Self Help Groups Microscope
SIEMAT State Institutes of Educational TEPC Telecom Export Promotion
Management and Training Council
SIET State Institute of Educational TePP Techno Entrepreneurship
Technology Promotion Programme
SINP Saha Institute of Nuclear TEQIP Technical Education Quality
Physics Improvement Programme
SIPS Special Incentive Package TETC Telecom Equipment Testing and
Scheme Certification Centre
SIRD State Institute of Rural THSTI Translational Health Science
Development and Technology Institute
SJSRY Swarna Jayanti Shahari Rozgar TIDE Technology Incubation and
Yojana Development of Entrepreneurs
SLET State Level Eligibility Test TIFAC Technology Information,
SLSC State Level Sanctioning Forecasting and Assessment
Committee Council
SNA Sangeet Natak Akademi TIFR Tata Institute of Fundamental
SoRs Schedules of Rates Research
SPA School of Planning and TL-2 Transfer line-2
 Acronyms x

TLC Total Literacy Campaign USEP Urban Self-Employment

TLE Teaching Learning Equipment Programme
TMNE Technology Mission For USOF. Universal Service Obligation
Integrated Development Of Fund
Horticulture In North East States UT Union Territory
Including Sikkim, Jammu & UTs Union Teritorys
Kashmir, Himachal Pradesh And UWEP Urban Wage Employment
Uttranchal Programme
TPDU Technology Promotion VEC Village Education Committee
Development and Utilization VECC Variable Energy Cyclotron
TRAI Telecom Regulatory Authority of Centre
India VLSI Very Large Scale Integration
TSC Total Sanitation Campaign VMS Vessel Monitoring System
TSTO Two Stage to Orbit VO Voluntary Organization
TTC Teletracking Control VoIP Voice-Over Internet Protocol
U 233 Uranium-233 VPTs Village Public Telephones
UEE Universalisation of Elementary VRC Village Resource Centre
Education VTIP Vocational Training
UF Ultra-Filtration Improvement Project
UGA Undergraduate Associate VTPs Vocational Training Providers
UGC University Grants Commission WAR Winning, Augmentation and
UGC Underground Coal Gasification Renovation
UHV Ultimate Heat Value WBCIS Weather Based Crop Insurance
UICT University Institute of Chemical Scheme
Technology WCD Women and Child Development
UIDAI Unique Identification Authority of WDPSCA Watershed Development
India Programme For Shifting
UMA&N Undersea Cabling between Cultivationin North Eastern Area
Mainland and Andaman & WHO  World Health Organisation 
Nicobar Islands WLL Wireless in Local Loop
UM-DAE University of Mumbai- WMO Wireless Monitoring
CBS Department of Atomic Energy Organization
Centre for Excellence in Basic WMS Wireless Monitoring Station
Sciences WPC Wireless Planning and
UMPP Ultra Mega Power Project Coordination
UNDP United Nations Development WSN Wireless Sensors Network
Programme WTI Water Technology Initiative
UNESCO United Nations Educational, WTO World Trade Organisation
Scientific and Cultural XRD X‐ray Diffraction 
Organization YAP  Yamuna Action Plan  
UNICEF The United Nations Children's YAS Youth Affairs and Sports
Fund YES Young Entrepreneurs Scheme
UP Uttar Pradesh ZCCs Zonal Cultural Centres
UPE Universalisation of Primary
Education
 1
An Overview

INTRODUCTION 1.4 As in other countries, the Government

responded to the global recession by
1.1 The Eleventh Plan (2007-08 to 2011- introducing fiscal stimulus and monetary
12) sought to build on the gains achieved in the accommodation which continued into 2009-10
Tenth Plan and shift the economy to a path of when the economy was further hit by a severe
faster and more inclusive growth. Inclusiveness drought. The growth rate in 2008-09 declined to
a critical element in the strategy was to be 6.7 per cent but rebounded to about 7.4 per
achieved by ensuring that growth is broad- cent in 2009-10, despite the fact that agriculture
based and is combined with programmes aimed showed negligible growth at 0.2 percent. The
at overcoming deficiencies in critical areas drought also led to an increase in inflationary
which affect large numbers of the vulnerable pressure, especially in food prices, which were
sections of our population, particularly the also affected by the high international
Scheduled Castes (SC) and Scheduled Tribes commodity prices as well as some of the food
(ST), the Other Backward Classes (OBC), prices that were high. Bringing inflation under
women and the minorities. The Plan sought to control thus has become a short term priority.
deal with these deficiencies through
programmes aimed at providing access to Resilience of the Economy
health, education and other essential services
and programmes of livelihood support. 1.5 The relatively modest slowdown in the
face of an exceptionally sharp contraction in
1.2 The Mid Term Appraisal (MTA) reviews output in the industrialised world, has
the experience in the first three years of the established the resilience of the economy in
Plan and seeks to identify areas where terms of its ability to manage a downturn
corrective steps may be needed. This chapter despite greater openness. While the advanced
presents a broad overview of the findings of the economies saw their growth decline from a
MTA. trend rate of 2.0 - 2.5 percent to (-) 2.0 -(-) 3.0
percent, growth in India declined by only about
1. AGGREGATE AND SECTORAL GROWTH 2 percentage points. Since this reduction
applied to an underlying growth rate that was
1.3 The Eleventh Plan aimed at an average much higher, the outcome was a GDP growth
growth rate of 9 per cent per annum, beginning rate that remained relatively robust. China and
with 8.5 per cent growth in the first year and other East Asian countries also have had a
accelerating to reach 10 per cent in the last similar experience.
year. The economy exceeded expectations in
the first year of the Eleventh Plan (2007-08) 1.6 There are several reasons for the
with a growth rate of over 9 per cent but the superior performance on the growth front. First,
momentum was interrupted in 2008-09 because India’s financial system was not exposed to the
of the global financial crisis. ‘toxic’ assets which affected the financial
system in most industrialised countries. This
was the result of a traditionally conservative
2 Mid-Term Appraisal of the Eleventh Five Year Plan

approach to bank regulation and of a conscious 3.0 per cent per year. However, India’s macro-
government decision to adopt a cautious economic fundamentals suggest that 9 per
approach in liberalising capital flows, especially cent growth can be achieved despite slower
short term debt, combined with building up growth in industrialised countries provided
ample foreign exchange reserves. If the supportive policies are put in place.
financial system had suffered a severe shock,
the disruptive effects of the crisis on the real Macro-economic Fundamentals
economy would have been much greater.
1.11 The high rates of domestic savings and
1.7 Second, although the economy is much investment are important strengths of the
more open than in the past, it still is much less economy that will help ensure an early return to
dependent on exports as a demand side driver high growth. Equally important is the
of growth than some other countries. The considerable entrepreneurial and managerial
growth in demand which supported rapid capacity in the private sector. Private corporate
growth in GDP was pre-dominantly domestic investment was particularly buoyant in the
demand, particularly domestic investment years before the crisis and confidence levels
which increased rapidly in the pre-crisis years. remain high. This should help ensure an early
return to higher growth.
1.8 Third, the underlying macro-
fundamentals were strong. The level of private 1.12 Slower growth in world trade will
savings has been high and fiscal consolidation however be a problem area in the coming
in previous years had improved the public years. , Exports, which grew at an annual rate
savings performance. As a result the domestic of 25 per cent (in US $) from 2003-04 to 2007-
savings rate had increased to 36.4 percent of 08, is likely to grow at a much slower rate.
GDP in 2007-08 declining to 32.5 per cent in Export growth decelerated to 13.7 per cent in
2008-09 because of the adverse effect of the 2008-09 and (-) 4.7 per cent in 2009-10 and an
crisis on tax revenues coupled with the fiscal early return to very rapid growth is unlikely.
stimulus. However, the private savings rate was Weaker export demand will have to be offset by
more or less unchanged. Gross investment some other source of domestic demand to
declined from 37.7 per cent in 2007-08 to 34.9 sustain high rates of GDP growth. This should
per cent in 2008-09 and is expected to recover ideally be through increased investment in
to 36.2 per cent in 2009-10. Gross fixed Capital infrastructure, using a combination of public and
Formation remained at about 33 per cent private investment, and Public Private
through these years. Partnership (PPP). Enhanced investment in
infrastructure will not only provide the demand
Prospects for the Eleventh Plan needed to replace export demand in the short
term, it will also ease a critical supply constraint
1.9 Growth prospects in the remaining two on growth over the medium term.
years of the Eleventh Plan period depend to
some extent upon the global economic 1.13 A strategy of raising investment in the
prospects which remain uncertain at present. face of lower export growth implies a somewhat
However, if the industrialised countries show larger balance of payments deficit, especially
positive growth of 2.3 per cent per year in since oil prices are unlikely to drift downwards.
2010, and 2.4 per cent in 2011, as is currently However, as pointed out in Chapter 2, the
thought likely, it is possible to envisage India’s increase in the current account deficit in the
growth rate increasing to around 8.5 per cent in next two years is likely to be modest, at
2010-11, with a further increase to 9 per cent in approximately 2.5 percent or at most 3 percent
2011-12. of GDP. A deficit of this order could be financed
relatively easily through long term capital flows
1.10 Projecting a return to 9 per cent growth including foreign direct investment (FDI).
may appear optimistic since growth at this rate
in the past has only been achieved in years 1.14 Despite the crisis, FDI flows (which
when industrialised countries grew at close to exclude FII inflows) have held up well and the
 An Overview 3

estimated FDI inflow in 2009-10 was US $ 26.8 1.18 The median growth rate of GSDP in the
billion. Our prospects for attracting FDI in the States was 7.6 percent in the Tenth Plan and 8
years ahead are very good if India continues to percent in the first year of the Eleventh Plan.
be seen as a dynamic economy and the overall States for which data is available for 2008-09
macro-economic environment remains positive the median growth rate dropped to 6.4 percent
and economic policies are seen to be investor on account of the slowdown caused by the
friendly. global crisis.

1.15 An important area of concern in this 1.19 The distribution of growth across States
context is the size of the combined fiscal deficit appears to have improved in favour of the
of the Centre and States. which increased from slower growing States. The median growth rate
6.3 percent of GDP in 2006-07 to about 10 for the lowest quartile of the States (ranked by
percent in 2008-09 and remained around the descending order of growth rates) did not
same in 2009-10. A higher fiscal deficit was an exceed 4.9 per cent in the Seventh, Eighth and
inevitable consequence of the stimulus Ninth Plan. It rose to 6.3 per cent in the Tenth
strategy, but it is also necessary to signal a Plan and remained at that level in 2007-08
return to fiscal prudence. This signal has been suggesting that all States have benefited by the
given in the Budget for 2010-11, which shows improved growth climate. Although growth rates
the fiscal deficit declining from 7.8 per cent of continue to differ across States, the variation
GDP in 2008-09 to 6.9 per cent in 2009-10 and has tended to decline.
further to 5.5 per cent in 2010-11 with further
decline projected in subsequent years. Prospects for Agriculture
Adherence to this time path will contribute to
creating investor confidence and help bring 1.20 An important sectoral target of the
inflationary pressures under control. Eleventh Plan was to raise the rate of growth of
GDP in agriculture from about 2.5 per cent in
1.16 If the economy achieves 8.5 per cent the Tenth Plan to 4 percent. Higher agricultural
growth in 2010-11 and accelerates to 9 per cent growth was expected to contribute directly to
in the last year of the Eleventh Plan, the the overall GDP growth and even more so to
average rate of growth in the Plan period could inclusiveness. Since more than half of the
be a little over 8 per cent. Although below the labour force still derives its income from
original Eleventh Plan target of an average of 9 agriculture, faster agricultural growth is perhaps
per cent growth it would be better than the 7.8 the most effective instrument for reducing rural
per cent attained in the Tenth Plan period. To poverty. It would mean raising farm incomes
have achieved this outcome in an otherwise for land owning farmers and wage income for
highly unfavourable external environment would landless labourers.
be a major achievement. More importantly, the
economy would be well positioned for transition 1.21 It is difficult to judge growth
to a growth rate higher than 9 per cent in the performance in agriculture based on short
Twelfth Plan period. periods because of the volatility to which
agriculture is subjected to. The average growth
Growth in the States rate of agriculture in the first two years of the
Plan was 3.2 per cent, which was better than
1.17 The pattern of Gross State Domestic that of the Tenth Plan, but the drought in 2009-
Product (GSDP) growth across States in recent 10 reduced the average for the first three years
years has some interesting positive features. to a little over 2 per cent. In case of a normal
Such data as are available (up to 2008-09) monsoon across the country in 2010, a
suggest that all the States have experienced substantial rebound can be expected. As
some acceleration in growth and even the pointed out in Chapter 3, achieving the target of
States in the lowest quartile have experienced a 4 per cent growth in agriculture would require
significant acceleration. This pattern is also an average growth of 7 per cent per annum in
reflected in the performance in agriculture the next two years. This may be difficult but with
across States. normal weather conditions there is a good
4 Mid-Term Appraisal of the Eleventh Five Year Plan

chance of agricultural growth averaging 3.0 to 1.23 None of this should detract from the fact
3.5 per cent over the Eleventh Plan period. If that a great deal more needs to be done in the
this happens, agriculture would at least have remaining years of the Eleventh Plan. A
overcome the prolonged deceleration which detailed agenda for action is spelt out in
occurred between 1996 and 2003 and returned Chapter 3 covering improved access to water,
to the earlier high growth path from which a improvement in the supply of good quality
transition to 4 percent could be attempted in the seeds, replenishment of soil nutrients,
Twelfth Plan. improvements in agricultural research and
extension, reforms in land tenancy and
1.22 As discussed in detail in Chapter 3, improvements in agricultural marketing which is
there are several positive developments in particularly important for perishable produce.
agriculture. Most of these lie in the domain of State
Governments.
• Total public and private investment in
agriculture as a percentage of agricultural The Manufacturing Sector
GDP has improved from 14.1 per cent in
2004-05 to 19.5 per cent in 2008-09 1.24 The Eleventh Plan had noted that the
according to the new national accounts high growth of the economy recent years had
series. not been accompanied by rapid growth in
manufacturing as happened in other fast
• The write-off of farm debts in 2006 gave developing economies. The Plan called for
many farmers the opportunity to start afresh double digit growth in manufacturing and
and the flow of agricultural credit has emphasised that this is essential if we want to
expanded considerably in the Eleventh Plan shift substantial numbers of the labour force out
period with the Kisan Vikas card experiment of agriculture into the formal sector.
proving to be very successful. Performance in this dimension in the first three
• Programmes such as the Rashtriya Krishi years of the Eleventh Plan has been below
Vikas Yojana, the National Horticulture expectation.
Mission and the National Food Security
Mission are doing well. 1.25 Manufacturing grew at an average 9.3
percent during the Tenth Plan, and reached
• Minimum support prices have been raised 10.3 percent during the first year of the
to give farmers greater incentives to Eleventh Plan, but thereafter it was hit by the
produce foodgrains. global slowdown in 2008-09, causing the rate
• Investment in irrigation is being expanded of growth in the sector to decline to 3.2
significantly and the Accelerated Irrigation percent. It has recovered to 10.8 per cent in
Benefit Programme (AIBP) has stepped up 2009-10 and our objective should be to
allocations in support of state government maintain the growth of manufacturing at
efforts. double digit levels in the last two years of the
Eleventh Plan.
• The Mahatma Gandhi National Rural
Employment Guarantee (MGNREG) 1.26 Several institutional and policy reforms
programme, which is focussed on schemes are needed to achieve this objective. Improved
that improve water conservation, together power supply is particularly important since
with enhanced efforts at watershed shortages of power or poor quality of supply of
management, holds out the hope of greatly power have an adverse effect on the
improving access to water in rainfed areas. competitiveness of manufacturing. The Micro
• Improved rural road connectivity through Small and Medium Enterprise (MSME) sector
the implementation of Prime Minister’s needs special attention because it creates more
Grameen Sadak Yojana (PMGSY), has jobs than large companies do. It is also an
given farmers improved access to markets important seed bed for entrepreneurship and
supporting faster growth in farm incomes. innovation. Credit is however, a key constraint
for this sector and this calls for continued
 An Overview 5

deepening and strengthening of the financial were also 25 other parameters relating to
sector as well as the mechanisms for poverty reduction, employment, education,
expanding access to equity financing. health services, child nutrition, gender balance,
‘Clustering’ is an effective way to provide small access to basic infrastructural services and
units with infrastructure support and should be environmental sustainability. The MTA provides
encouraged. an assessment of progress made in this area,
together with suggestions about the corrective
1.27 Manufacturing units in India are also steps needed in the major programmes.
burdened by a plethora of regulations, including
many at the State level, resulting in low scores Poverty Reduction
on indices of the ease of doing business. There
is an urgent need to review these regulations in 1.31 The Eleventh Plan target was to reduce
individual States. The need for greater the percentage of poverty by 10 percentage
flexibility of labour laws also has to be points over the Plan period, or 2 percentage
addressed if labour intensive manufacturing is points per year, which is more than twice the
to be encouraged. pace observed in the past. It is not possible to
measure progress against this target at this
1.28 The fear that any change in labour laws stage because no official estimates of poverty
which increase flexibility would necessarily be are available after 2004-05. The next estimate
anti-labour is misplaced and must be overcome. of poverty will be for the year 2009-10, based
In fact, more flexibility, broadly in line with what on the NSS survey currently being conducted in
exists in other countries, would help increase the field, data from which will become available
the demand for labour and expand the size of only in 2011.
the labour force in the organised sector. This
would be in the interest of the un-organised 1.32 An issue that has attracted considerable
workers who would be absorbed in the attention is whether the poverty lines used in
organised sector in larger numbers thereby the official estimates, which were fixed in 1973-
increasing the worker base and their bargaining 74, and have been updated for inflation since
power in this sector. need to be revisited in view of the many
changes that have taken place in our economy.
1.29 Rapid industrialisation also requires A High Level Committee under Prof. Suresh
release of land for industrial projects and Tendulkar was appointed in December 2005 to
infrastructure and this has become more consider this issue.
difficult over time. The existing land acquisition
laws are widely seen to be inequitable and 1.33 The Report of the Committee has been
unfair to those from whom land is acquired, submitted and is available at
especially since acquisition is sometimes used www.planningcommission.gov.in. The
for benefit of projects being developed by the Committee has recommended that the urban
private sector. As pointed out in chapter 5 the poverty line need not be changed, but the rural
government had introduced bills to modernise poverty line should be raised to reflect the
the land acquisition laws and rehabilitation laws basket of commodities that can be purchased at
but the bill lapsed with the dissolution of the urban poverty line after allowing for the
parliament. They need to be re-introduced at an difference in urban and rural prices. The
early date. Tendulkar committee has recomputed poverty
lines for individual states for 2004-05 on this
2. INCLUSIVENESS AND THE ELEVENTH basis.
PLAN
1.34 The revised poverty lines recommended
1.30 The Eleventh Plan viewed inclusiveness by the Tendulkar Committee have been
as a multi-dimensional objective and listed 27 accepted by the Planning Commission for
monitorable targets. Of these, two were: (a) 2004-05. They indicate no change in the urban
growth of GDP and (b) the growth of agricultural poverty estimates, but the rural poverty line is
GDP, which have been discussed earlier. There revised upwards significantly and as a
6 Mid-Term Appraisal of the Eleventh Five Year Plan

consequence the percentage of the population can be verified only much later when the data
below the poverty line in rural areas is higher for the Eleventh Plan period become available.
than in the earlier estimates. The percentages
of the population in poverty in rural and urban 1.37 An important programme contributing to
areas using official estimates and the Tendulkar poverty reduction in rural areas is the MGNREG
Committee estimates are indicated in the Table Programme which began in the first year of the
1.1 Eleventh Plan and was quickly expanded to
cover the entire country. This programme is
Table 1.1 expected in 2009-10 to generate about three
Estimates of Population in Poverty times the volume of employment generated by
(Percentage below the poverty line) the rural wage employment programmes that
Official Estimates Tendulkar Committee were in place before it was introduced. There is
Urban Rural Total Urban Rural Total evidence that implementation of MGNREG
Programme has reduced distress migration and
1993- 32.4 37.3 36.0 31.8 50.1 45.3
94
improved the bargaining power of agriculture
2004- 25.7 28.3 27.5 25.7 41.8 37.2 labour leading to higher wages.
05
1.38 It must be emphasised however that
1.35 The Tendulkar Committee has while the MGNREG Programme provides much
specifically pointed out that the upward revision needed minimal employment security, it is not a
in the percentage of rural poverty in 2004-05, substitute for the long term solution to rural
resulting from the application of a new rural poverty. That requires shifting significant
poverty line should not be interpreted as numbers of labour force out of low productivity
implying that the extent of poverty has employment in the agricultural sector to higher
increased over time. To assess the underlying productivity employment in the non agricultural
time trend using the new method of computing sector such as in labour intensive
poverty lines, we should compare the poverty manufacturing and organised sector in general.
estimates in 2004-05 with those for 1993-94,
using the new methodology for both years. Access to Education
These estimates, as reported by the
Committee, are presented in Table 1.1 .They 1.39 The Eleventh Plan recognised that
clearly show that whether we use the old higher growth rates would require a large
method or the new, the percentage of the expansion in both quantity and quality of formal
population below poverty line has declined by education and skill development. It also
about the same magnitude. recognised that for growth to be inclusive, the
access to quality education must be broadened
1.36 The findings of the Tendulkar so that all sections of the population could
Committee therefore endorse the earlier benefit from the new and more productive
Planning Commission assessment that the employment opportunities generated by faster
growth process witnessed in India has led to a growth. There is substantial progress in these
reduction in poverty between 1993-94 and areas.
2004-05, though the reduction is less than what
might have been expected. More importantly, Elementary Schooling
this change tells us nothing about what has
happened to poverty after 2004-05. With GDP 1.40 The Sarva Shiksha Abhiyan, in
growth having accelerated after 2004-05, with combination with the Mid Day Meal Scheme,
its distribution across States being somewhat has succeeded in achieving near universal
better, with some improvement in performance enrolment in primary schools. The number of
in agriculture and with introduction of rural habitations with at least one primary
programmes such as the MGNREG and Bharat school has increased from 87 per cent in 2002
Nirman, there is reason to expect that there will to 99 per cent in 2008 and those with upper
be a significant reduction in poverty over the primary schools within a radius of 3 km from 78
Eleventh Plan period as a whole. However, this per cent to 92 per cent in the same period.
 An Overview 7

Enrolment has increased for both boys and girls PRIs do not have effective administrative
with a welcome narrowing of the gender gap. control over teachers in most States, in large
Similarly, the disparity between SCs/STs and part because teachers belong to State cadres
the general population in this area has and appointments are highly politicised. More
narrowed, though not entirely eliminated. effective devolution and empowerment of PRIs,
combined with better system of school
1.41 While enrolments are impressive, inspection, is needed if the quality of teaching is
dropout rates however remain high with as to be improved.
many as 43 per cent of the children dropping
out before completing elementary school. The Secondary Education
quality of schooling is also a matter of concern.
The Annual Status of Education Report (ASER) 1.44 As the flow of children completing
2010, which reports learning achievement elementary school increases, attention will have
based on a survey conducted in 2009, showed to be focussed on the development of an
that as many as 38 per cent of the children in adequate infrastructure to absorb them into
Standard V could not read a text meant for secondary and higher secondary schools. The
Standard II and 37 per cent could not do a primary responsibility for developing schools
simple division. In this regard, the percentages lies with the State Governments, but the
have not changed significantly from the past. Eleventh Plan recognises that the Centre has to
play a supporting role as it does in the case of
1.42 Several steps are necessary to improve SSA.
the quality of teaching and a number of
initiatives have been taken: 1.45 A number of steps have been taken to
assist the States fulfil their responsibilities in
• The pupil-teacher ratio in primary schools this area. These include expanding and
has improved from 45: 1 in 2006-07 to 33: increasing the number of the Jawaharlal Nehru
1 in 2008-09. Navodaya Vidyalayas and the Kendriya
Vidyalayas, and launching the Rashtriya
• The Right of Children to Free and Madhyamik Shiksha Abhiyan. The Plan also
Compulsory Education Act, which will envisaged a new initiative in the form of a
become effective from April 1, 2010, scheme for establishing 6,000 model schools
provides a framework for universalising through central assistance. Of these, 2,500
elementary education and also lays down schools will be established through public
standards which all schools must meet. private partnerships. Implementation of these
• The Thirteenth Finance Commission has programmes needs to be accelerated to ensure
provided additional grants to the States to that the last two years of the Eleventh Plan give
meet their share of the expenditure on us a good start.
education and the Central Government
has increased its allocation. Higher and Technical Education
• Efforts are being made to improve teacher 1.46 The Eleventh Plan set a target of raising
training. the Gross Enrollment Ratio (GER) for higher
education from around 10 per cent at the start
1.43 The responsibility for improving the of the Plan to 15 cent by 2015. The importance
quality of education lies with the State of these targets is underscored by the fact that
Governments. Lacunae in systems of countries in East Asia that were behind India in
governance make it difficult to enforce teacher higher education have now moved ahead.
accountability. This problem is sought to be
tackled by making schools responsible to the 1.47 Several new initiatives have been
elected Panchayati Raj Institutions (PRIs) and launched to meet the set targets. Capacity in
some steps have been taken in this direction. the existing central government institutes of
However the effectiveness of these oversight higher education such as the Central
mechanisms is often limited in practice because Universities, the Indian institutes of Technology
8 Mid-Term Appraisal of the Eleventh Five Year Plan

(IITs), Indian Institutes of Management (IIMs), increase in the number of such institutions to
the all India Institute of Medical Sciences 7984 ITIs/ITes – an increase of 56 per cent and
(AIIMS) and the Post Graduate Institute, the seating capacity has increased to 11.07
Chandigarh were expanded by 54 per cent to lakh. In the Union Budget of 2007-08, a scheme
accommodate reservation for OBCs. The for upgrading 1396 Government ITIs into
Central Government has also taken steps to Centres of Excellence through Public Private
establish eight new IITs, eight new IIMs, ten Partnership was announced in 2007-08. About
NITs, 20 IIITs, three IISERs. The Central 900 ITIs have been taken up under this
Government has also set up 16 new Central programme. Of these, 815 have already been
Universities. In addition, it is also proposed to approved and are in various stages of
set up 14 ‘innovation’ Universities, the implementation. Another 500 ITIs are to be
legislative framework for which is being worked upgraded with the help of World Bank. Under
out. These initiatives represent a massive the Modular Employable Skills Scheme, 1,103
expansion of Central government institutions of specially designed short term modules have
higher education. been introduced to train school dropouts and
informal sector workers.
1.48 The Central Government has also
decided to undertake a comprehensive reform 1.50 The Skill Development Corporation
of the regulatory structure governing higher which was set up as a vehicle to provide
education along the lines recommended by the financial support to skill development initiatives
National Knowledge Commission and the emanating from the private sector has become
Yashpal Committee. The objective is to give operational and has sanctioned assistance to
universities greater freedom and flexibility, while several projects.
also enforcing standards. It is expected that
there will be an expansion of properly regulated Health Services
private universities in parallel with the
expansion of public universities set up by the 1.51 Access to good quality health services
Centre and the States. It is also proposed to is another critical element of the inclusiveness
permit reputed foreign education providers to strategy. The deficiencies in this area are well
enter the higher education sector. Availability of known. The Eleventh Plan had noted that total
quality human resources for teaching and expenditure on health in India as a percentage
research to meet the demands of proposed of GDP was comparable to that in the other
expansion in higher education is a major developing countries, there was
constraint and calls for advance planning. disproportionate reliance on private medical
These initiatives, including the new regulatory services which many can ill afford. Total public
framework, should be in place by the end of the expenditure on health in India (Centre and
Eleventh Plan, so that the stage is set for States combined), was below 1 per cent of
transformation in higher education in the GDP at the start of the Eleventh Plan. It is felt
remaining years of the Eleventh Plan and that this needs to be increased to about 2 and
continues to take effect during the Twelfth Plan 3 percent of GDP.
period.
1.52 The greatest deficiency of medical
Skill Development services is in the rural areas, where a large part
of the population simply does not have access
1.49 The formulation of a National Policy on to functioning health centres with minimum
Skill Development and the setting up of PM’s supply of essential drugs. The Eleventh Plan
National Council on Skill Development reflect sought to address this problem through the
the importance the government attaches to skill National Rural Health Mission (NRHM), which
development. A number of initiatives have been aimed at creating the necessary physical
taken to strengthen skill development. As on 1 infrastructure of sub-centres, primary health
January 2007 there were 5114 ITIs/ITes in the centres and community health centres linked by
Country with a seating capacity of 7.42 lakh. district hospitals. An innovation in this
Three years later, there has been an impressive programme was the reliance on locally recruited
 An Overview 9

young women as Accredited Social Health be combined under an integrated National

Activists (ASHAs), who could serve as a link Health Mission. Public health specialists need
between the community and the public health to be integrated with the health system at all
service delivery system.1 levels. It is also important to consider a
paradigm shift from viewing the Government as
1.53 The NRHM has now been in operation a ‘provider of health services’ to one of
for five years which is not a long enough time to financing health care while providing choice in
judge the impact on health outcomes. The health services’ through innovative public-
Mission has made progress in expanding the private health insurance schemes which enable
physical infrastructure for health, and also the poor to be able to choose among alternative
making flexible resources available at PHCs health service providers.
and sub-centres. It has also successfully
appointed 7.5 lakh ASHAs though their training 1.56 The effort to expand the government’s
is behind schedule. Availability of doctors and role in healthcare has thus far raised the total
technicians and in particular, specialists to public expenditure on health only marginally
support the health infrastructure in the rural from 0.96 per cent of GDP in 2005-06 to 1.09
areas also remains a major challenge. Some per cent in 2009-10. This increase has occurred
States have successfully recruited health primarily because of a rise in the Central
personnel on contract, but a satisfactory Government health expenditure, with State
solution can only come from a large expansion Government expenditure increasing very little.
in trained human resources in the health sector. The target of increasing public sector
This calls for a substantial expansion of expenditure on health to between 2 and 3
capacity in medical colleges and nursing percent of GDP obviously calls for much
colleges. stronger efforts by the Central Government and
even more so by the State Governments in the
1.54 An important new initiative in the area of years ahead.
curative health care was the launch of the
Rashtriya Swasthya Bima Yojana (RSBY) Other Inclusiveness Programmes
under which State Governments provide health
insurance for the Below Poverty Line (BPL) 1.57 The Eleventh Plan contains a number of
population for in-patient treatment in approved other programmes aimed at promoting
public or private sector hospitals. The Central inclusiveness. Some such critical programmes
Government pays 75 per cent of the premium are:
and the State Government pays the rest. A key
element in the RSBY is that the patient can • The Integrated Child Development
choose from alternative providers of health Services (ICDS) focusing on pre-school
services and there is no cash transaction. As education and supplementary feeding;
many as 1.25 crore smart cards have already
been issued covering a population of more than • The Accelerated Rural Drinking Water
6 crore. When fully operational, the scheme will Supply Programme which aims at covering
provide hospitalisation cover to over 30 crore all unserved villages with a safe source of
population. drinking water;
• The Total Sanitation Programme which
1.55 The primary health care needs of the aims at providing individual household
urban poor also need to be addressed. Both latrines to combat the widespread practice
rural and urban health initiatives may need to of open defecation; and
• The Indira Awas Yojana (IAY), which
1
ASHAs receive basic training and are also allowed to provides assistance for construction of
administer some basic drugs for common maladies. An houses to those among the BPL population
important function of the ASHAs is to encourage pregnant who do not have housing.
women to go in for institutional delivery for which both the
women and the ASHA receive an incentive payment under the • The Rajiv Gandhi Grameen Vidyutikaran
Janani Suraksha Yojana.
Yojana which aims at electrifying all
10 Mid-Term Appraisal of the Eleventh Five Year Plan

unelectrified villages and providing free 1.61 Scholarships for the SCs, and STs have
connections to BPL households. been greatly expanded. Schemes of Post
Matric scholarships for SCs STs and OBCs are
• The National Social Old Age Pension
implemented with the aim to promote higher
(NSAP) which provides a pension to BPL
education among these disadvantaged groups.
population above the age of 60.
The Rajiv Gandhi National Fellowships scheme
for SCs and STs, are being implemented
1.58 The total allocation to these
through the University Grants Commission to
programmes which essentially aim at
encourage these groups to take to university
inclusiveness is budgeted at Rs. 40,490 crore
education. Students from these groups are also
for 2010-11.
encouraged to pursue higher studies including
those that lead to award of M.Phil and Ph.D
1.59 The performance of each of these
degrees.
programmes is discussed in detail in the
relevant chapter of the MTA. The overall picture
1.62 The scheme of Pre-Matric Scholarship
shows progress in many areas, but it also
for children of those engaged in unclean
reveals deficiencies in the implementation of
occupation was revised in terms of the norms,
individual programmes which need to be
value of scholarships, and by enhancing central
addressed. Progress in reducing malnutrition
assistance from 50 per cent to 100 per cent.
among children has been particularly slow
This will improve the state of education among
despite long years of effort. It is now recognised
those children thereby giving them better
that malnutrition cannot be dealt with by a
livelihood opportunities.
single instrument such as ICDS. It needs action
on multiple fronts including raising the income
1.63 A comprehensive and focused
levels of the family, age at the first pregnancy
development programme was implemented for
and the nutritional status of pregnant women,
the development of 75 Particularly Vulnerable
availability of clean drinking water and state of
Tribal Groups (PVTGs). The Government also
sanitation and knowledge of feeding practices
enacted the Scheduled Tribes and the Other
especially promoting exclusive breast feeding
Forest Dwellers (Recognition of Forest Rights)
for the first six months. There are programmes
Act in 2006 and Rules framed in 2007 with the
that are directed to each of these ends, but their
objective of recognising and vesting forest
effectiveness needs to be improved.
rights of forest lands to persons who have been
inhabiting these places for generations.
Social Justice
1.64 In pursuance of the Prime Minister’s
1.60 Inclusive growth implies delivering
new 15-Point programme for the minorities, the
social justice to all, particularly the
Government introduced three new scholarship
disadvantaged groups such as Scheduled
schemes: Pre, Post and Merit-cum-Means
Castes (SCs), Scheduled Tribes (STs), other
based Scholarship schemes to promote
Backward Classes (OBC), Minorities, persons
education among minorities. A Multi sectoral
with disabilities, senior citizens and other
development programme has also been
marginalised groups. One aspect of social
launched in 90 districts identified on the basis of
justice is that all programmes that provide
minority population percentage above the age
generalised access to essential services such
of 25 combined with backwardness criteria of
as health, education, clean drinking water,
the particular district.
sanitation etc. should be implemented in a way
that ensures that disadvantaged groups get full
1.65 The concept of a district Scheduled
access to these services. Another aspect of
Castes sub Plan and Scheduled Tribes Sub
social justice is the promotion of schemes
Plan was introduced to ensure that an adequate
specifically targeted to these groups. The
share of plan expenditure goes to the benefit of
Eleventh Plan contained several such
the Scheduled Castes. The MTA reveals that
programmes.
the manner in which these sub plans have been
implemented, both in Central Ministries and the
 An Overview 11

states, has not been satisfactory. The Planning Governments of Uttar Pradesh and Madhya
Commission is reviewing experience in this Pradesh over a period of three years – from
area to see how SC/ST sub plan 2009-10 to 2011-12. This is over and above the
implementation can be improved. New resources pooled from various ongoing
guidelines will be developed, taking into schemes of different departments.
account the practical difficulties in the existing
guidelines, so that sub-plans can be 1.69 Neglect of balanced regional
implemented more effectively in future. development including the development of tribal
areas, can lead to serious consequences such
Backward Regions as the growth of left wing extremism which is
evident in many districts in the country.
1.66 An aspect of inclusive development that Successful development in these areas is the
has received growing attention in recent years only viable solution to the underlying discontent
is the problem of backward districts, or of which leads to extremism. This calls for
regions within States. The relative levels of innovative approach, especially efforts to
development of a State as a whole are taken improve governance and peoples participation.
into account in determining the State’s share in Implementation of Panchayat Extension to
tax revenues. This aspect is also reflected in Scheduled Areas (PESA) Act is absolutely
the Gadgil-Mukherjee formula, which essential but progress has been slow. States
determines the share of normal central and the Central Government will have to pay
assistance. It is however felt that these special attention to the challenges that this
mechanisms do not take care of the special poses in terms of evolving an effective
problems of backward regions within States. development strategy and creating credible
systems of governance in those areas.
1.67 The Backward Regions Grant Fund
(BRGF), covering 250 districts in the country, 3. INFRASTRUCTURE DEVELOPMENT
was introduced in August, 2006 to address this
problem. Each district receives an amount 1.70 Weaknesses in infrastructure,
depending upon its total population size and particularly in the energy and transport sectors,
area. The allocation is untied, but its availability are perhaps the most important constraints on
is conditioned upon the preparation of a District the growth of the economy in the medium term.
Development Plan which is expected to take a Recognising the importance of infrastructure
comprehensive view of the development development, the Eleventh Plan had estimated
constraints affecting the district. The BRGF that the investment needed over the Plan
funds can be used to fill gaps after taking period was about US$500 billion, compared to
account of resources available through other a likely “business as usual” projection of
schemes. As in other local area programmes, it US$300 billion. This investment was to be
has taken time to prepare district development achieved through a combination of public
plans but these have since been prepared for investment and private initiative, including
most of the districts. The BRGF also includes a through public private partnerships (PPP).
special additional allocation for the eight Public investment was to be directed at areas
districts constituting the original Kalahandi which were not expected to attract private
Bolangir, Koraput (KBK) group in Orissa and a investment, whereas the scope for PPP was to
special allocation for Bihar. be exploited wherever feasible.

1.68 A Special Bundelkhand Drought 1.71 Experience over the first three years
Mitigation Package of Rs.7,266 crore shows that there has been a commendable
comprising Rs.3,506 crore for six districts of increase in the total investment in infrastructure.
Uttar Pradesh and Rs.3,760 crore for seven As elaborated in Chapter 14, the total level of
districts of Madhya Pradesh, has also been investment in infrastructure is likely to come
approved recently, to be implemented over close to the Eleventh Plan target. The
three years. Additional Central Plan Assistance experience has been varied across sectors with
of Rs.3,450 crore will be provided to the some performing much better than expected
12 Mid-Term Appraisal of the Eleventh Five Year Plan

and some sectors experiencing short falls. In 1.76 The capacity added by the private
general private investment in infrastructure had sector is actually running ahead of the target,
done better than expected while public whereas both the Central and State sector
investment has fallen short. Government should performance will be below target. There is
give top priority to continue the infrastructure obviously considerable room for improving
investment thrust in the remaining years of the project management in the public sector.
Plan.
1.77 Availability of coal for thermal plants will
Telecommunications be an important constraint on electricity
generation in the years ahead. Import
1.72 The Plan target for 600 million requirements for coal by the end of the
telephone connections by the end of the Eleventh Plan will be higher than originally
Eleventh Plan period is likely to be reached by targeted, but the scale is manageable. The real
the end of the third year itself and the target for problem is likely to arise in the Twelfth Plan as
doubling rural connections from 100 million to coal imports are likely to increase from 81
200 million is also likely to be met by the end of million tonnes at the end of the Eleventh Plan to
the fourth year. This expansion is being led by a 230 million tonnes at the end of the Twelfth
very dynamic private sector in the mobile Plan. Advance action is necessary to develop
telephone segment. It is taking place in an the capacity for handling coal imports of this
environment of strong competition which scale.
ensures that telecommunications charges here
are among the lowest in the world. 1.78 The distribution segment of the
electricity sector is clearly the weak link.
1.73 The introduction of 3G services, which Transmission and distribution (T&D) losses are
promises further expansion of capacity in this falling, but much more slowly than targeted.
sector was delayed because of difficulty in The system continues to suffer huge losses
getting the spectrum vacated. These problems which are estimated to be over Rs.40,000 crore
have now been overcome. Auction of 3G for 2009-10. The scale of losses in the
spectrum has been largely completed in the first distribution segment is simply unsustainable
quarter of 2010-11. Broadband connectivity, an and determined action is needed to reverse this
area that needs special attention has also been trend. However, performance in this area
expanding but progress has been modest. depends entirely on the States. It is important to
redouble the efforts to contain losses in the last
Electric Power two years of the Eleventh Plan to improve the
financial viability of the distribution segment.
1.74 Power shortages and its unreliable The recently restructured Accelerated Power
quality have been major weaknesses of our Development Programme (APDRP), which
economy and supply continues to lag behind provides Central assistance to the States to
demand. However, compared with the Tenth support efforts to improve distribution efficiency,
Plan, there has been an improvement in the needs to be closely monitored.
pace of addition of new generation capacity.
1.79 Private sector involvement in
1.75 The capacity added in the first three distribution could help improve efficiencies, but
years will be only about 20,000 MW, but a large very few States have taken initiatives in this
number of projects are currently under area. The experience of privatisation in Delhi is
construction and are expected to be completed that it has resulted in significant reduction in
in the remaining two years. As a result, the losses. The recent experiment in Bhiwandi
expected addition of capacity in the Eleventh (Maharashtra), franchising part of the
Plan period will range between 62,000 – 64,000 distribution system to a private company, has
MW. This is short of the Plan target of 78,000 been highly successful in reducing T&D losses.
MW, but it is three times the capacity added A similar franchise has been awarded to a
during the entire Tenth Plan period. private sector company for distribution in Agra.
The franchisee route is a viable option where
 An Overview 13

States are reluctant to privatise. Experiments Railways

along these lines should be encouraged
through appropriately structured concession 1.83 The Railways have steadily expanded
agreements. their freight and passengers business, but
steady expansion is no longer enough. A
Highways and Road Development radically new and more ambitious approach is
needed. A long term vision for modernisation
1.80 The Eleventh Plan envisaged an and restructuring of the Railways has been
ambitious National Highway Development spelt out in the Indian Railways’ Vision
Programme (NHDP) aimed at upgrading and Document presented to Parliament. The vision
expanding the national highways in phases. It involves substantial expansion in line capacity
also envisaged accelerated development of and rolling stock and technological
rural roads through the Pradhan Mantri Gram modernisation, including the introduction of high
Sadak Yojana (PMGSY). speed trains and upgrading of locomotive
production.
1.81 Implementation of the NHDP
programme is behind schedule but it has 1.84 Realising this vision will require a large
improved more recently. In the first two years of investment programme and financing it will
the Plan, road construction contracts on BOT present a major challenge. The Railways have
basis were awarded for only 1,800 kms. This thus far mobilised much less by way of internal
was partly due to the financial crisis that resource generation than was projected in the
adversely affected the appetite of private Eleventh Plan. Rather, the Railways have
investors. However, the situation improved in relied on budgetary resources more than
the third year and BOT contracts are expected originally envisaged. Given the other demands
to increase to 5,000 km in 2009-10. The pace is on budgetary resources financing for railway
expected to pick up further in the remaining modernisation and expansion cannot come
years of the Eleventh Plan. The Ministry of from the budget. It has to be mobilised through
Roads and Highways has set a target of greater internal resource generation and
completing 7,000 kms. per year and is building through public private partnership. Improved
up a project portfolio to achieve this. internal resource generation in turn requires a
rebalancing of fares to reduce the extent of
1.82 Construction of rural roads under present subsidy on passenger fares which has
PMGSY is satisfactory. The programme was re- now reached approximately Rs. 19,000 crore.
phased to achieve time bound targets of rural
connectivity under the overall umbrella of 1.85 The Railways have steadily lost freight
Bharat Nirman initiated in 2005-06. It aimed at to road transport and a reversal of this decline
providing all-weather road connectivity to all in share must be an important element of any
habitations, of more than 1,000 population in transition to a more fuel efficient and lower
the plains and more than 500 in hilly or tribal carbon development strategy. Two Dedicated
areas, by 2009. Although there has been some Freight corridors, one from Kolkata to Ludhiana
slippage, but about 84 per cent of the target has and the other from Delhi to Mumbai, are being
been met and the remaining 16 per cent will be implemented. Special efforts will be needed to
completed by the end of 2010-11. The resulting monitor implementation to ensure that these
improvement in rural road connectivity is a projects are completed on target by 2016.
major achievement which has already
contributed to improved market linkages for 1.86 The changes required in Railway
farmers as well as improved access to health planning and management to realise the long
and educational services for the rural term vision are far-reaching and can only be
population. implemented over two plan periods.
Nevertheless substantive progress towards it
must be made in the remaining period of the
Eleventh Plan.
14 Mid-Term Appraisal of the Eleventh Five Year Plan

Airports private sector. The Central Government policy

does not encourage privatisation of entire ports,
1.87 Faster GDP growth in recent years had but it does envisage private sector participation
brought about a rapid growth in air traffic. This in development of individual berths / terminals.
was built into the Eleventh Plan projections of Unfortunately, progress in inviting bids for such
the requirement of airport infrastructure. This capacity expansion projects in the first three
was temporarily interrupted because of the years of the Plan was disappointing. A
global slowdown in 2008-09, but it can be determined effort must be made in the last two
expected to recover as GDP growth years, with well defined annual targets, to
accelerates. Airport development and achieve the best outcomes possible.
modernisation must therefore remain a critical
part of the infrastructure agenda. Urban Infrastructure

1.88 The Eleventh Plan has seen substantial 1.92 Urbanisation in India has been relatively
initiatives in this area including the slow in the past, but is now expected to
commissioning of two new private airports in accelerate. The urban population share may
Hyderabad and Bangalore, expansion of Delhi reach 50 per cent in 25 years adding 300 to
and Mumbai airports by private investors on a 400 million people to the existing population of
PPP basis, development of Chennai and about 350 million in urban areas. Since the
Kolkata airports through Airports Authority of present urban population is seriously
India (AAI) and expansion and modernisation of underserved in terms of infrastructure such as
35 non-metro airports by the AAI. In addition water supply, sewerage, solid waste disposal
new airports are being constructed in the North and urban transport, the task of making up
East to ensure that each state capital has a existing deficiencies and providing for the
functioning civil airport. required expansion presents a huge challenge
for the future.
1.89 Work on the Delhi and Mumbai airports
is expected to be completed on schedule. Work 1.93 A start in addressing these challenges
on 9 of the 35 non-metro airports plus 13 other was made in the form of the Jawaharlal Nehru
airports have been completed and work on National Urban Renewal Mission (JNNURM)
remaining non-metro airports is expected to be that was launched in 2005 to cover the period
completed within the Eleventh Plan period. through to the end of the Eleventh Plan. Central
Restructuring of the Airports Authority of India, assistance under this scheme is linked to the
including separation of Air Traffic Control into a preparation of a Comprehensive Development
separate corporate entity to be wholly owned by Plan (CDP) for cities and to the implementation
the AAI, should be expedited. of reforms some of which are mandatory, such
as reforms in municipal accounting, rent control
Ports laws, e-governance for transparency. Some
others, such as repeal of the urban land ceiling
1.90 Efficient ports are critical for the global act, introduction of property title certification
competitiveness of an open economy but system, encouraging PPPs are optional.
progress in capacity building of ports has
lagged significantly behind target . Against an 1.94 The MTA reveals that after a slow start,
expected addition to port handling capacity of the programme has gathered pace. As of
858 million tonnes in the Eleventh Plan for September 2009, 2,523 projects have been
major and minor ports put together, the actual approved with Rs.52,687 crore of central
achievement is likely to be only about 55 per assistance already committed, with a matching
cent of the target. commitment of Rs.44,334 crore from the
States. The total investment in essential urban
1.91 Capacity expansion has been much services triggered by JNNURM is therefore
faster in the non-major ports, where many State close to Rs.100,000 crore to be implemented
Governments have adopted a strategy of over the remaining two years of the Eleventh
developing new ports entirely through the Plan. This is clearly an impressive beginning for
 An Overview 15

the first major national initiative aimed at slippage in containing the fiscal deficit can be
developing urban infrastructure. defended as a temporary response to global
slowdown, and is in line with what has been
4. FINANCING THE ELEVENTH PLAN done by most other countries. However, with
the global economy stabilising and hopefully
1.95 The Eleventh Plan programmes for resuming growth, there is concern everywhere
creating social and economic infrastructure to on the need to get back to a fiscally prudent
meet the requirements of rapid and inclusive position.
growth implied a significant increase in Plan
expenditure. Total plan expenditure of the 1.99 The pattern of fiscal consolidation
Centre and the States combined was expected envisaged in the Centre for the remainder of the
to increase from an average of 9.5 per cent of Eleventh Plan has been outlined in the 2010-11
GDP in the Tenth Plan to 13.5 per cent of GDP Budget, which projects fiscal deficit of 5.5 per
in the Eleventh Plan. This increase was to be cent of GDP for 2010-11 falling to 4.8 per cent
financed primarily through an increase in the in 2011-12. The projected compression in the
balance from current revenues in the budgets of fiscal deficit will pose financing challenge to find
the Centre and the States and from improved the resources needed for Plan expenditure.
internal resource generation in the public
sector. 1.100 Three factors are critical in this context.
First, it is essential to keep control over non-
1.96 Three years of the Plan have been plan expenditure, most notably subsidies. The
completed and the Central budget estimates for major Central Government subsidies in the
2010-11 are known. Based on available data, system at present are on food, petroleum
and making some assumptions about 2011-12, products and fertilisers. The main subsidies at
it is possible to say that in the case of Centre, the State level are due to power sector losses
the realisation of Plan expenditure is likely to be and losses on irrigation. While there is a role for
between 95 and 100 per cent of the Eleventh targeted subsidies to help the poor meet their
Plan target. In the case of the States it will be essential requirements, the present system of
lower, but much better than in the Tenth Plan. subsidies has evolved in an ad hoc manner and
the extent of the total subsidy is much larger
1.97 The main weakness in performance is than any benefit that reaches the genuinely
that the financing of plan expenditure departs deserving. Several of the subsidies are also
significantly from the pattern originally dysfunctional leading to wasteful use of scarce
envisaged. The increase of 4 percentage points resources. It is necessary to review the system
of GDP in the Eleventh Plan compared with the comprehensively to ensure that subsidies are
Tenth Plan was to be achieved primarily efficiently designed to reach the target group
through higher balance of current revenues and and the resources saved from this restructuring
greater internal resource mobilisation. This could be devoted to meet essential plan
objective could not be met, partly because the requirements in health and education.
economic slowdown meant a lower growth in
revenues, some of which was itself due to tax 1.101 Second, it will be necessary to adopt an
reduction measures introduced as part of the aggressive programme of disinvestment in
stimulus. Public Sector Undertakings (PSUs). Even if the
government share of equity must not go below
1.98 The result has been a much larger 51 per cent, there is very substantial scope for
volume of borrowing than was envisaged in the disinvestment to mobilise resources for plan
Eleventh Plan to support desired levels of Plan expenditure through the budget.
expenditure. This is reflected in the fact that the
combined deficit of the Centre and the States, 1.102 Third, the scope for PPP needs to be
which was to have been contained at 6 percent vigorously explored wherever possible in a
of GDP by 2009-10 was actually around 10 per manner consistent with the overall development
cent of GDP and only a gradual reduction will objectives. The past few years have shown that
be possible over the next few years. The investments through PPP are possible and both
16 Mid-Term Appraisal of the Eleventh Five Year Plan

the Centre and the States have taken a number at that level. Empowerment of Panchayati Raj
of initiatives in this area. These initiatives need Institutions (PRIs) and Urban Local Bodies
to be expanded keeping in mind the need for (ULBs) combined with effective participation of
transparency and competition in awarding the people can create points of monitoring and
concessions. intervention. Progress in empowering PRIs to
perform the functions entrusted to them has
5. GOVERNANCE been far below expectations. While most States
have transferred the necessary functions, there
1.103 Poor governance is often at the heart of has been very limited transfer of functionaries
poor outcomes from government policies and who in most cases remain departmental
programmes. Poor governance includes a wide employees sent to PRIs on deputation.
range of failings, e.g., (i) inability to ensure law Progress in transferring finances has been even
and order which is an essential requirement for less. The situation varies across States, but
investment and economic expansion, (ii) lack of except for a few cases empowerment, is much
efficiency in executing government programmes below what is needed.
to achieve end results, (iii) lack of an
environment in which business – both in the 1.107 Along with empowerment there is need
private and public sector – can be conducted to build capacity of people’s representatives to
efficiently with minimum transaction cost. perform the monitoring and oversight functions
Inevitably, each of these weaknesses is linked they are supposed to perform.
to corruption in the sense of being caused by
corruption and giving rise to it. 1.108 In the absence of effective participation
and in situations where empowerment is weak,
Simplifying Procedures and Transparency the effectiveness of programmes in the field will
be low and the scope for leakage and
1.104 There is no magic wand to resolve all corruption correspondingly high. This is
these problems. Each one has to be taken up at especially true in the case of tribal districts
the relevant level and addressed on a sustained many of which are affected by Left Wing
basis. The easiest steps are those aimed at Extremism.
making procedures less cumbersome and more
transparent. There is considerable scope for Monitoring and Evaluation
such simplification of procedures at both the
Central and State government levels. 1.109 We also need much better systems of
Implementation of the recommendations of the monitoring and evaluation of programmes with
Second Administrative Reforms Commission a view to generating MIS feedback and creating
should receive priority. The states should be a base for auditing. At present, many
encouraged to take similar action. programmes in the social sectors as well as
other programmes aimed at inclusiveness are
1.105 The Right to Information Act is a critical funded as Centrally Sponsored Schemes.
building block to increase transparency and These schemes involve substantial
shed light on the functioning of government. disbursements by the Centre to the States or to
state level implementing agencies. However
Empowering PRIs and ULBs reliable information within an acceptable time
on whether the money transferred from the
1.106 A more difficult governance challenge Centre has actually been spent by the
relates to creating a system which can implementing agency at the state level is
efficiently deliver critical services, e.g., health difficult to obtain. This problem is being
services, education and skill development addressed by an improved expenditure tracking
services, anganwadi centres, sanitation and system which is being developed by the
drinking water which are the focus of a great Controller General of Accounts in consultation
deal of government’s efforts today. These with the Planning Commission. Once
services are all delivered at the local level and operationalised, it would help monitor actual
hence the importance of effective governance
 An Overview 17

expenditure on plan schemes and also sectors has not been based on common
strengthen audit. principles. For example, pricing policy differs
across different sources of energy, with no clear
1.110 There is also need for much stronger relationship with world prices. Policies related to
ex-post evaluation to ascertain whether the energy production also differ, for example,
expenditure on a programme is delivering the between coal which is nationalised, and
outcomes intended. Centrally Sponsored petroleum and natural gas which are not. The
Schemes today account for more than half of tax subsidy structure also varies across
the Central Plan budget. While there are different energy sources.
approximately 150 such schemes, the largest
25 account for 93 per cent of the total CSS 1.114 The Integrated Energy Policy outlines a
expenditure. These large schemes must be large number of policy changes needed for
subjected to systematic and scientific ex post rationalising energy policies across different
evaluation to determine whether expenditures energy groups. Many of these changes though
incurred have actually had the impact intended approved by the Cabinet, have yet to be
on outcomes. To undertake such evaluation, it implemented. A determined effort should be
has been decided to establish an Independent made to complete implementation of this
Evaluation Organisation linked to but distinct agenda in the remaining two years of the
from the Planning Commission. Eleventh Plan so that the economy enters the
Twelfth Plan period in a much stronger position
6. SOME FUTURE CHALLENGES on the energy front.

1.111 The MTA has also thrown up some Management of Water

issues the importance of which was not fully
recognised at the time that the Eleventh Plan 1.115 Management of scarce water resources
was drafted. Addressing these issues goes poses a major challenge. The total annually
beyond making mid-course corrections. It calls usable water resources available in the country
for an in-depth review of our policies in these is fixed and depends upon total precipitation
areas and may require restructuring of policies after allowing for the minimum flow in the rivers
which can be fully achieved only in the Twelfth which must be maintained. Calculations
Plan. suggest that the total demand given the
present population and production structure is
Integrated Energy Policy already close to the available usable water
resources. Since demand is bound to rise as
1.112 At the time the Eleventh Plan was population expands and growth of GDP
finalised, the Planning Commission had generates higher demand from agriculture and
received the report of an Expert Group on industry, we could face a water crisis if the
Integrated Energy Policy but the report was still problem is not addressed holistically,
under consideration. Since then, the recognising the limited options for expanding
recommendations of the group have been supply and the consequent need for managing
considered inter-Ministerially and an Integrated demand and increasing water use efficiency.
Energy Policy, based on the recommendations
of the Group was approved by Cabinet in 2009. 1.116 Unfortunately, the problem is currently
handled by different departments operating in
1.113 The policy draws attention to a number silos. The traditional approach on the supply
of issues in the energy sector relating to energy side has been on building dams to store water,
pricing, regulatory structures and issues related with very little focus on ensuring optimal use to
to energy production and energy security. Since maximise productivity of this scarce resource.
the responsibility for energy policy is As a result, head end canal users adopt far
fragmented among several different Ministries more water intensive cropping patterns than are
dealing with individual energy sub sectors (e.g., optimal, leaving very little water for the tail end
electric power, coal, petroleum and natural gas farmers. The tendency to grow water intensive
and, renewable energy). The policy in different crops is unavoidable as long as canal water is
18 Mid-Term Appraisal of the Eleventh Five Year Plan

severely under priced. In this situation, there is 1.120 Since total supply of water is limited, a
need for a statutory mechanism to enforce large part of the solution to water scarcity
equitable distribution over the entire command problems lies in the management of demand.
area as has been done in Maharashtra, where The greatest scope is clearly in agriculture
the Water Regulatory Authority is empowered which uses 80 per cent of the water. More
enforce equitable distribution with active scientific cultivation practices (e.g. the SRI
involvement of the stakeholders through water system of rice cultivation) and the use of
users associations which collect water charges sprinkler and drip irrigation can cut water use to
and are also responsible for maintenance. less than half. However with canal water and
electric power seriously underpriced, farmers
1.117 Management of ground water resources have little incentive to use alternative
also poses serious problems. Ground water is a technologies which involve an extra cost.
common property resource, but the law as it
stands allows a farmer to extract any amount of 1.121 Managing the water crisis clearly
water from a bore well dug on his own land, requires action on multiple fronts. We have to
even though such withdrawal affects the water increase usable supply through means such as
table. Free or very cheap power for agriculture construction of large storages, harvesting of
compounds the problem leading overdrawal of rain water wherever possible, recharging
water beyond the annual recharge of the ground water through afforestation and
aquifer. This is evident in States such as watershed management programmes. We also
Punjab and Haryana and in the hard rock have to act on the demand side, encouraging
regions in southern India. This “water mining” less water intensive production patterns and
has resulted steadily falling water tables and a managing demand by encouraging recycling.
serious increase in water pollution. These objectives have to be pursued through
combination of regulatory control, rational
1.118 The usual response of limiting the pricing and increased peoples awareness and
boring of new wells is ineffective since it only participation. These different instruments have
confers a monopoly on existing well owners, different costs associated with them and an
allowing them to sell water to others at premium optimal strategy for bridging the water gap must
prices. Efforts must be made to obtain collective identify least cost solutions for doing so. These
agreement to limit the use of ground water to vary according to hydro-geological conditions
sustainable levels though participatory which are area specific. The optimal mix may
processes. A cess on the use of power for therefore vary from place to place.
agriculture in all areas where ground water is
under stress, with the proceeds earmarked for 1.122 Tackling all these problems requires co-
water conservation in the same watershed, is ordinated action by different Ministries and also
well worth considering. intensive consultation with State Governments.
The Planning Commission is working on
1.119 The problem of pollution of our rivers preparing an Integrated Water Management
and water bodies has reached alarming Policy which can identify key policy issues. This
proportions. The “polluter pays” principle is must be done before the Twelfth Plan begins.
widely asserted in our policies but is not
enforced in practice. Our cities and industries Climate Change
dump large quantities of untreated sewage and
untreated industrial effluent in the rivers. We 1.123 Climate change has emerged as an
need much stricter monitoring and enforcement area of concern world wide. Changes in rainfall
to ensure that untreated waste is not dumped and temperature which may occur have the
into the rivers, with strict penalties for violation. potential of generating serious adverse
In principle, these penalties would have to be consequences in most parts of the world
applied to Government agencies also, such as including India.
those responsible for sewage disposal. There is
also need for much stronger regulation to 1.124 An ideal response to climate change
ensure recycling of industrial water. has to be anchored in a globally agreed co-
 An Overview 19

operative framework which ensures a fair strengthen in order to deal with the challenges
distribution of the burden of mitigation and of adaptation.
adaptation between different groups of
countries. India is actively engaged in the 1.128 All these initiatives will have to be
ongoing international negotiations to achieve a strengthened in the remaining period of the
satisfactory and fair outcome. However, Eleventh Plan and more thoroughly
pending the evolution of a global consensus it is mainstreamed in the Twelfth Plan to constitute
also necessary to take national steps to combat a credible national response to climate change.
climate change. Accordingly a National Action The Planning Commission has set up an Expert
Plan for Climate Change has been announced Group on Low Carbon Development under the
which lays down initiatives that the government Chairmanship of Dr. Kirit Parikh to outline the
will take in both mitigation and adaptation. scope of action we can consider to pursue a
low carbon development strategy without
1.125 As far as mitigation is concerned our compromising our basic development goals.
objective must be to increase energy efficiency The report of the Group will be an important
and reduce emissions intensity consistent with input into the Twelfth Plan.
our basic goal of increasing our per capita
income to improve the living standards of our Science and Technology
people. India has one of the lowest levels of per
capita use of energy among large developing 1.129 Science and technology has a critical
countries and we will certainly need an increase role to play as the economy moves to a higher
in total energy use to sustain rapid growth. and sustainable growth path. We must be open
However, it should be our endeavour to to absorb technology from wherever it is
increase energy efficiency as much as possible, available, economic maturity and industrial
and also shift to non-fossil fuel energy. depth also requires the building up of high
quality indigenous capability which is globally
1.126 The government has indicated that competitive. The MTA indicates that the S&T
emissions intensity per unit of GDP could fall by effort in the various scientific departments and
20 percent by 2020. Several steps have been laboratories is proceeding broadly as envisaged
taken to achieve this outcome. We are in the Eleventh Plan, though there are cases
committed to expand the base of nuclear power where implementation has been slow, notably
generation. A National Solar Mission with an in meteorology. The government laboratories
ambitious programme of adding 20,000 MW of and scientific institutions have a major role to
solar power over the next two decades. State play in developing our technological capability
electricity regulators have laid down that and deserve full support.
distributing companies must purchase 5 per
cent of the electricity from renewable sources 1.130 Research and Development cannot
thus introducing an implicit cross subsidy to however be left only to government effort. Much
support green energy. The introduction in the greater investment in this area is needed by the
Budget for 2010-11 of a cess on coal to fund corporate sector, including both public sector
green technology development is an important and private sector corporations. There is need
initiative for financing clean energy for a much larger S&T input in a wide range of
technologies. fields including agriculture, water management,
medicine, clean energy, transport, and looking
1.127 Much of the agenda in the Integrated ahead, to bring about a more environmentally
Energy Policy serves the basic objective of sustainable development strategy.
improving energy efficiency and reducing Technological capacity in all these areas needs
dependence on fossil fuel energy. Similarly our to be accelerated based on our own efforts as
programmes of forest conservation help reduce well as through global partnerships between
net CO2 emissions. Programmes of watershed Indian and foreign research institutions.
management and water conservation are
precisely the programmes we need to
20 Mid-Term Appraisal of the Eleventh Five Year Plan

Innovation cent growth by the terminal year of the Eleventh

Plan. For this, macro-economic policies have to
1.131 To achieve growth that is both inclusive ensure that fiscal consolidation takes place as
and sustainable within the constraint of limited planned, the investment environment remains
resources it is necessary to promote supportive, and in particular, that investment in
innovations on the wide scale. Innovations are infrastructure is given renewed thrust,
needed in products and services which reduce especially through PPP.
costs, economise on energy and serve the
needs of the common man in an affordable 1.134 Rapid growth will also promote the
manner. Innovations are also needed in inclusiveness agenda if the growth is
processes and delivery mechanisms, especially associated with faster growth in agriculture and
in government delivery mechanisms which greater absorption of labour in manufacturing.
need to be redesigned so that they can deliver The latter requires a special thrust in the MSME
outcomes commensurate with the considerable area. Inclusiveness will also be promoted by the
resources they now absorb. large number of programmes aimed specifically
at the weaker sections, notably the MGNREG,
1.132 To some extent, openness and PMGSY, NRHM, SSA, MDM, ICDS, IAY
competition combined with a strong technical RGGVY and RSBY. These programmes are
scientific base spurs innovation and these also having an impact though weaknesses are
aspects of policy must be maintained. However, being identified in the course of monitoring and
Government can also play a pro active role in evaluation and these need to be addressed
creating an environment that supports through mid course correction. An area of
innovation. India needs to stimulate its entire special concern is malnutrition among children
innovation eco-system – the formal scientific- where progress is far too slow. This calls for a
industrial system, as well as its large informal multi-pronged approach relying not just on
eco-system – to develop solutions for the supplementary feeding practices but on multiple
country’s agenda of inclusive and sustainable socio-economic determinants of nutritional
growth. These issues are examined in detail in status.
Chapter 20. Government purchase policies in
certain areas are an instrument that can 1.135 Finally, a much greater effort is needed
promote innovation consistent with efficiency to improve the implementation of social sector
and cost minimisation. Financial institutions are programmes in the field. These programmes
another important element promoting receive assistance from the Central
innovations by providing capital through various Government but they are implemented by State
stages of product development. agencies. Much greater devolution of power to
PRIs and ULBs, together with effective
7. A summary Assessment participation by the local community is needed
to achieve better oversight and accountability.
1.133 To summarise, the Mid Term Appraisal Progress in governance agenda is critical to
reveals that the economy has weathered an achieve the goal of inclusiveness and should be
exceptionally difficult global environment very given high priority by State Governments.
well and is now well poised to return to 9 per
 2
Macro Economic Framework

2.1. The Eleventh Five Year Plan (2007–12) per cent can be achieved if the slower growth in
had set a target of 9 per cent average growth exports is offset by rapid growth in some
over the 5 years of the Plan. This was an element of domestic demand. Ideally, this
increase from the target of 8 per cent that had should be investment in infrastructure where
been set for the Tenth Five Year Plan (2002- India has a large deficit. The critical
07). The higher target was entirely consistent requirement for policy in the next two years
with the very strong performance in the last two therefore is to ensure a healthy growth in
years of the Tenth Plan which had recorded investment in infrastructure.
growth in excess of 9.5 per cent. The levels of
investment and saving that were felt to be Elevated Investment Level
necessary for 9 per cent growth had been
achieved to a great extent in the very first year 2.4. The Eleventh Plan document had
of the Eleventh Plan. projected that the investment rate would rise
from an estimated 32.4 per cent in the Tenth
Global Crisis Plan period to 36.7 per cent in the current Plan
period (see Table 2.1). The revised data of the
2.2. The global economic and financial crisis Central Statistical Organisation (CSO) show
that developed during 2007-08 and blew up into that the investment rate during the Tenth Plan
a crisis in the summer of 2008 undermined the period actually averaged 31 per cent of GDP,
ability of the Indian economy to achieve the that is, slightly lower than what had been
eminently realisable 9 per cent growth estimated when the Eleventh Plan document
trajectory. The growth rate fell from 9.2 per cent was finalised. Nonetheless, the investment rate
in 2007-08 to 6.7 per cent in 2008-09 and is in the first three years of the Eleventh Plan has
estimated to be 7.4 percent in 2009-10. averaged over 36 per cent, which is
comparable to the target set for the Eleventh
2.3. There is no reason to revise the Plan period, despite some erosion in the pace
estimate of an average 9 per cent growth rate of investment in both 2008-09 and 2009-10 due
as being achievable for the Indian economy to the effects of the global crisis. However, with
under more or less normal global conditions. Of a continued favourable economic climate and
course, global conditions are not expected to be policy supportive of investment, there is a good
normal for some time and the recent chance of the Plan target being realised, if not
emergence of a possible sovereign debt crisis exceeded.
especially in the European region has
increased this uncertainty. Nevertheless, it is 2.5. Investment in the creation of fixed
the assessment of the Planning Commission assets (GDFCF or Gross Domestic Fixed
that with the world economy slowly recovering Capital Formation) as a proportion of GDP rose
to normal we should be able to achieve a higher from 23.1 per cent of GDP in the Ninth Plan to
rate of growth approaching 8.5 per cent in 28.2 per cent in the Tenth Plan and has
2010-11 and return to the 9 per cent growth averaged 33 per cent in the first three years of
trajectory in 2011-12. The return to growth at 9
 22 Mid-Term Appraisal of the Eleventh Five Year Plan

Table 2.1
Broad Macroeconomic Parameters for the Indian Economy
Averages for Plan Periods XI Plan
VII Plan VIII Plan IX Plan X Plan Expectation Annual Likely
1985- 1992- 1997- 2002-07 2007- 2007- 2008-09 2009-10 2007-
90 97 2002 12 08 12
Growth over period in per cent per annum
GDP - rate of
1 growth 5.7 6.5 5.5 7.8 9.0 9.2 6.7 7.2 8.1
Farm sector GDP
1.1 3.0 4.8 2.5 2.3 4.0 4.7 1.6 –0.2 3.0
Industrial sector
1.2 6.6 7.3 4.3 9.4 10.0–11.0 9.5 3.9 8.2 8.0
GDP
Services sector
1.3 GDP 7.4 7.3 7.9 9.3 9.0–11.0 10.5 9.8 8.7 9.6
Per capita real
1.4 3.4 4.4 3.5 6.2 7.5 7.7 5.2 5.7 6.6
GDP
Investment in
2 Fixed Assets 7.1 8.0 6.4 14.3 15.2 4.0 5.2 10.3
of which Private
2.1 Corporate 4.4 18.2 –4.3 28.4 20.6 –5.1 4.5* 9.9

Proportion to GDP at market and current prices

3 Investment Rate 22.3 24.2 24.3 31.0 36.7 37.7 34.9 36.0* 37.0
of which Fixed
3.1 Investment 21.4 22.7 23.1 27.9 33.0 33.0 32.4 33.5
Investment in
3.2 4.6 5.2 7.3 6.0 6.2
Infrastructure
4 Savings Rate 20.0 23.1 23.7 31.2 34.8 36.4 32.5 34.0* 34.7
of which Private
4.1 Sector 16.8 20.8 24.3 29.4 30.3 31.3 31.0 31.8* 31.8
Current Account
5 0.0 –1.2 –0.6 0.2 –1.9 –1.3 –2.4 –2.4* –2.3
Balance
of which Trade
5.1 Balance 0.0 –2.6 –2.6 –2.3 –9.6 –4.3 –5.9 –6.0* –5.7
Capital Account
6 Balance 0.0 2.4 2.1 3.4 3.5 8.6 0.5 3.7* 4.6

Average Annual Rate of Inflation

7.1 WPI Inflation Rate 6.7 8.7 4.9 5.0 4.7 8.5 3.9 6.0

7.2 of which: Primary 6.4 10.2 5.2 3.6 5.6 8.0 14.5 6.8
Food
Manufactured
7.3 goods 7.5 8.3 3.0 4.4 5.0 8.0 3.0 5.4

CPI IW Inflation
7.4 8.0 9.3 6.3 4.6 6.4 9.0 12.5 7.3
Rate
Note: * Estimated
the Eleventh Plan period. It is pertinent to economy. Thus, the average annual rate of
mention that the acceleration in overall growth in fixed asset creation (at constant
investment derived largely from the increase in prices) rose sharply from 6.4 per cent during
the rate of growth of fixed assets which the Ninth Plan period to 14.3 per cent in the
underpins the productive capacity of the Tenth Plan. This was the prime mover for the
 Macro Economic Framework 23

acceleration in the growth momentum during 2.9. The global crisis and the changed
the Tenth Plan which recorded an average economic circumstance slowed down the
growth of 9.6 per cent in the penultimate two expansion (at constant prices) of private
years. corporate investment to 4 per cent in 2008-09
and initial estimates suggest that it may have
2.6. In the first two years of the Eleventh lifted to just over 5 per cent in 2009-10. It is
Plan, the increase at constant prices of GDFCF expected that there will be some recovery of
was 15 per cent which dropped to 4–5 per cent fixed investment in the private corporate sector
in the two subsequent years. The decline in the in the closing months of 2009-10 and a full and
pace of growth in fixed asset creation in 2008- complete recovery from 2010-11 onwards.
09 and 2009-10 was largely a consequence of Continued growth in investment activity in the
the global crisis but from 2010-11 onwards the private corporate sector is expected to
economy should see a restoration of more rapid contribute to the demand expansion needed to
growth. However, the overall investment rate, restore economic growth towards 8.5 per cent
as well as the proportion of fixed asset creation and 9.0 per cent in the final two years of the
to GDP, has reached a level where it may not Eleventh Plan respectively (see Table 2.2)
be realistic to expect sustained acceleration in
coming years. At slightly higher than the current Investment in Physical Infrastructure
levels, we should be able to generate economic
growth in the region of the target of 9 per cent 2.10. The Eleventh Plan fully recognised the
and do so in a sustained fashion. large deficit in physical infrastructure such as
electricity, water supply, roads, transportation
2.7. Fixed asset creation in the private and sewage & sanitation that needed to be
corporate sector has been a driving force aggressively tackled. Accordingly, it
underlying the faster pace of capital formation. emphasised the need to increase investment in
This sector averaged annual rates of growth in infrastructure. It also recognised that since
GDFCF creation (at constant prices) of 18.2 per public resources were limited, the achievement
cent during the Eighth Plan following on of the ambitious infrastructure target required
economic liberalization, but it slumped to (–) 4.3 full exploitation of the scope for private
per cent in the Ninth Plan (1997 to 2002) as a investment in this area. The initiative to
result of a multitude of factors especially the enhance the involvement of private sector to a
effects of the Asian Currency Crisis and the greater extent was through new forms of
collapse of world commodity prices. In the engagement, of which the Public Private
Tenth Plan (2002-07), real private corporate Participation (PPP) Model was proposed as a
fixed investment increased at an average pace principal candidate.
of 28.4 per cent, a remarkable upturn that was
primarily responsible for pushing up the 2.11. The Eleventh Plan had envisaged that
aggregate investment rate of economy. As a investment in physical infrastructure would rise
ratio of GDP, private corporate fixed investment from 5 per cent of GDP in 2006-07 to 9 per cent
increased from 5.7 per cent in 2001-02 to 13.6 for the terminal year of the Eleventh Plan. In
per cent in 2007-08. the National Accounts Statistics, infrastructure
does not form a standard category and the
2.8. Public sector fixed investment Planning Commission, at the time of formulation
increased at an average annual rate of 10.4 per of the document, got the estimates compiled
cent (at constant prices), with its proportion to and prepared. The current estimates indicate
GDP going up from 6.5 per cent in 2001-02 to that investment in physical infrastructure was
8.0 per cent in 2006-07. Though significantly less than 4.5 per cent of GDP in the Ninth Plan,
slower than the pace of pick-up in the private which went up to 4.8 per cent during the Tenth
corporate sector, it has nevertheless been Plan. In the first two years of the Eleventh Plan,
accelerating. This dynamism continued into the investment in physical infrastructure has risen
Eleventh Plan till the crisis erupted in the further to over 6 per cent of GDP. In 2009-10
second year. the level is likely to have been around 6.5 per
cent of GDP. While the pickup is commendable,
 24 Mid-Term Appraisal of the Eleventh Five Year Plan

Table 2.2

Investment & Savings by Institutional Classes

Averages for Plan Periods XI Plan

VII Plan VIII Plan IX Plan X Plan Expectation Annual Likely

1985-90 1992-97 1997-02 2002-07 2007-12 2007-08 2008-09 2009-10 2007-12

Expressed as percentage of GDP at market prices

Gross Fixed Capital 21.4 22.7 23.1 27.9 33.0 33.0 32.4 33.5
Formation
of which: Public sector 10.6 8.5 6.7 7.0 8.1 8.6 8.5*
Private corporate sector 3.7 7.5 6.8 9.0 13.6 12.2 12.5*
Household sector 7.1 6.7 9.7 11.8 11.3 12.2 11.5*
Gross Investment 22.3 24.2 24.3 31.1 36.7 37.7 34.9 36.0 37.0
of which: Public sector 10.8 8.6 7.0 7.2 8.0 8.9 9.4 9.5*
Private corporate sector 4.6 8.0 6.8 10.2 28.7 16.1 12.7 13.8*
Household sector 7.8 6.9 10.0 12.5 11.5 12.2 12.7*
Gross Domestic Savings 20.0 22.9 23.6 31.2 34.8 36.4 32.5 34.0 34.7

of which: Households 14.9 17.0 20.3 23.3 23.0 22.6 22.6 23.2*
Private corporate sector 1.9 3.8 4.0 6.1 7.3 8.7 8.4 8.6*
Public sector 3.1 2.1 –0.7 1.8 4.5 5.0 1.4 2.2*
of which: Govt. Admin. –0.4 –1.7 –4.7 –2.8 0.5 0.6 –2.5 –2.4*
Memo – Composition of household savings shown as per cent of GDP

Total Household savings 14.9 17.0 20.3 23.3 22.6 22.6 23.2*

Savings in physical assets 7.8 6.9 10.0 12.5 11.5 12.2 11.8*

Net Financial Savings** 7.1 10.1 10.3 10.8 11.2 10.4 11.5*
Gross Financial Savings and its composition as per cent GDP

Savings in financial assets 8.5 11.8 12.1 14.3 14.7 13.4 15.1*
(gross of liabilities)
of which: Bank & other 4.2 5.3 4.9 6.1 7.6 7.8 8.3*
deposits
Insurance, Provident & 2.1 3.1 4.0 3.9 4.1 3.9 4.1*
Pension funds
Claims on government 0.9 1.0 1.7 2.3 –0.6 –0.4 0.6*
Increase in Liabilities / –2.3 –1.9 –1.8 –3.6 –3.5 –3.0 –3.7*
borrowings

Note: * Estimated
** Gross financial savings adjusted for the increase in liabilities gives the Net Financial Savings
 Macro Economic Framework 25

it does appear that even with a further rise in fertilizers that expanded subsidies as well as
investment in 2010-11 and 2011-12, the higher salary and pension commitment of
investment in physical infrastructure is unlikely Government. Government dis-savings have
to exceed 8 per cent of GDP by the terminal increased in 2008-09 and 2009-10 due to
year of the Eleventh Plan. extraordinary fiscal expenditure and depressed
tax revenue growth, to (–) 2.5 per cent of GDP
2.12. It is heartening to note that much of the in 2008-09 and about the same level in 2009-
incremental investments in infrastructure in 10. The beginning of fiscal consolidation from
recent years have indeed come from the private 2010-11 onwards will see an improvement in
sector, some of which is through the PPP the level of government dis-savings and to that
Model. The share of private investment in extent in overall domestic savings rate as well.
infrastructure has almost doubled from 1.3 per
Household savings
cent of GDP in 2004-05 to nearly 2.5 per cent in
2008-09. The successful enhancement of the 2.15. The second important ingredient in the
desired total investment in creating new rise in the rate of savings from the 1990s to the
infrastructure assets to 9 per cent of GDP current levels is the higher savings by the
should see a further increase in the private household sector (which in India includes
sector contribution to this important economic unincorporated businesses). Household
parameter. savings rose from 20 per cent of GDP in the
Ninth Plan to about 23 per cent in the Tenth
Higher Level of Savings Plan as well as in the first two years of the
Eleventh Plan. The savings of households are
2.13. Alongside the increase in investment made either by way of direct physical assets
and economic growth, domestic savings has (e.g., farm improvement and home building) as
also risen as a proportion of GDP. Domestic well as in the form of financial assets. They also
savings had gone up from about 23.0 percent in include investment through retained earnings in
the 1990s to 31.8 per cent in the Tenth Plan. It the unincorporated small & medium enterprises
was expected to rise further to 34.8 per cent (SME). This component of private savings is in
during the Eleventh Plan. This number was, some respect akin to private corporate savings.
almost achieved in the terminal year of the Within financial assets, bank deposits continue
Tenth Plan itself (34.4 per cent) and exceeded to be the single most important entity with
(36.4 per cent) in the first year of the Eleventh insurance, provident fund and small savings
Plan. The trends reflect somewhat different making up most of the balance. Households are
behaviour in the three major components, also now borrowing in order to purchase
namely, government savings, household homes, as well as durable goods like motor
savings and private corporate savings. vehicles. However, since the level of household
savings has increased dramatically, their
Government savings borrowings as the proportion of their savings in
recent years is actually comparable with the
2.14. A major factor that was responsible for
levels prevailing before 1990.
the increase in the domestic savings rate over
the last ten years was the improvement in
2.16. It should also be noted that Gross
Government finances. Government dis-savings
Financial Savings, i.e. before being reduced to
as a proportion of GDP improved from (–) 4.7
the extent of borrowing by household, has been
per cent in the Ninth Plan to (–) 2.8 per cent in
steady at around 15–16 per cent of GDP over
the Tenth Plan and turned positive at 0.6 per
the past five years (see Table 2.2). This is an
cent of GDP in 2007-08. However, in the
increase of about 2–3 percentage points from
second and third years of the Eleventh Plan,
the first half of the decade. Household financial
the savings rate has seen significant erosion on
savings net of its own borrowing has risen
account of the sharp expansion in the
marginally to over 10 per cent of GDP in the
government dis-savings or operating deficits.
beginning of the current decade and to a little
This partly flows from the policy response to the
over 11 per cent in recent years. Government’s
global crisis and partly due to the severe
borrowing programme primarily dips into this
increase in world prices of crude oil and
26 Mid-Term Appraisal of the Eleventh Five Year Plan

pool of available savings, with the balance invisibles to grow by 28 per cent annually
finding its way to finance corporate investment during the Plan period.
in both the private and public sectors. In
assessing to what extent the Government’s 2.20. In the first year of the Eleventh Plan
financing tends to pre-empt resources, this is (2007-08), all items on the current account and
indeed the key parameter that should be borne capital account grew at a much faster pace than
in mind. With the total deficit of the Central and had been visualised. However, the onset of
State governments reaching around 10 per cent global crisis caused both merchandise exports
of GDP in 2009-10, it is evident that there would and imports to slow down to a virtual crawl in
be very little room for financing private sector 2008-09 and suffer some contraction in 2009-
investment. Hence the importance of returning 10. The growth of service sector exports and
to a path of fiscal prudence. remittances also slowed, although it did not
suffer contraction as in the case of merchandise
Private corporate savings trade. The high prices of crude oil, in the first
half of 2008-09, brought about an expansion in
2.17. The third factor behind the increase in the current account deficit to 2.4 per cent of
the savings rate over the last decade has been GDP, significantly higher than the 1.3 per cent
the private corporate sector which has seen its in the previous year. The current account
savings increase from about 4.0 per cent of deficit in 2009-10 is expected to be about 2.4
GDP in 1990s to 6.1 per cent in the Tenth Plan per cent of GDP.
and to well over 8.0 per cent in the first two
years of the Eleventh Plan. 2.21. The export of services is expected to
show recovery from 2010-11 onwards.
2.18. Higher savings by the private corporate Remittances had been affected adversely in
sector is reflected in the higher investment by 2008-09 but show signs of recovery in 2009-10
this sector which has risen from 6.8 per cent of and are expected to show stable growth in the
GDP in the Ninth Plan to 10.4 per cent in the terminal two years of the Eleventh Plan. The
Tenth Plan, the terminal year of which showed net export of services amounted to 3.2 and 4.1
private corporate investment at 14.5 per cent of per cent of the GDP in 2007-08 and 2008-09
GDP. In the first year of the Eleventh Plan, respectively. The corresponding figure for
private corporate investment stood at 16.1 per remittances was 3.4 and 3.6 per cent. these
cent of GDP. This dipped in 2008-09 on proportions are broadly expected to remain
account of the economic crisis and the unchanged in 2009-10, as also in the last two
provisional estimate places it at 12.7 per cent of years of the current Plan. Overall, the export of
GDP. services & remittances combined had
accounted for 5.3 per cent of GDP in the Tenth
External Sector Plan, which financed a large part of the
merchandise trade deficit.
2.19. The Eleventh Plan document had
visualised that the merchandise trade deficit 2.22. The overall trade deficit, expressed in
would average 12.2 per cent of GDP, reaching terms of goods and services, together was 4.3
16 per cent in the last year of the Plan and that per cent of GDP in the first year of the Plan and
the net trade balance on account of services 5.6 per cent in the second. It is estimated to be
would be at 2.7 per cent of GDP, which about 6.0 per cent in 2009-10 (see Table 2.1)
together with remittances and other items would which would result in a current account balance
result in a current account deficit of 1.9 per cent deficit of 2.4 per cent of GDP. It is expected that
of GDP. It also expected that net capital flows the trade deficit would move up slightly in the
would average 3.5 per cent of GDP in this final two years of the Plan resulting in slightly
period. Merchandise exports were expected to higher current account deficits (see paras 2.25
grow annually by 20 per cent and imports to & 2.26).
increase annually by 23 per cent, both in dollar
terms. The export of services was expected to
increase by an average of 24 per cent and net
 Macro Economic Framework 27

Outlook for Exports – Merchandise & merchandise trade deficit is expected to be

Services close to 10 per cent of GDP in both 2010-11
and 2011-12. Exports of ICT products grew in a
2.23. The outlook for the remaining years of sluggish fashion in 2009-10 due to the
the Eleventh Plan is that the slow recovery in recession in its major overseas markets. A
the advanced economies of the world would modest recovery of 10 per cent is expected in
bring about conditions conducive to renewed 2010-11 moving up to 15 per cent in 2011-12.
export expansion, but at rates that may be Private remittances which have shown stronger
significantly lower than what had prevailed in growth in the first half of 2009-10 are also
the years immediately preceding the global expected to rise in line with software exports.
crisis. The expected increase in the rate of fixed
investment in the last two years of the Plan, in 2.26. The trade deficit, including both
the context of modest growth in exports of merchandise and services, which is estimated
goods and services, is likely to result in slightly to be 6.1 per cent of GDP in 2009-10 will
higher trade deficits. consequently rise to 6.3 per cent in 2010-11
and further to 6.5 per cent of GDP. The current
2.24. Merchandise exports as reported by the account deficit which is estimated to be 2.4 per
Directorate General of Commercial Intelligence cent of GDP in 2009-10 may remain at this or
and Statistics (DGCI&S) grew rapidly in the first slightly higher level in 2010-11 and may edge
half of 2008-09 and contracted in the second; up to a somewhat higher level in 2011-12, of
for the year as a whole exports amounted to around 2.5 to 2.8 per cent of GDP.
US$185 billion. The contraction continued for
the first seven months of 2009-10 and for the 2.27. For the Eleventh Plan period as a
full year the provisional estimate for exports is whole, the merchandise trade deficit is
US$177 billion which is about 8.5 per cent expected to be 9.4 per cent of GDP, net service
higher than that achieved in 2007-08. It is exports at 3.7 per cent, remittances at around
expected that there will be further recovery in 3.9 per cent and the overall net invisibles figure
2010-11 to about US$205 billion (growth of at 7.4 per cent of GDP. The current account
about 17 per cent), which will take exports to a deficit for the Plan period as a whole is now
level only slightly more than that achieved in estimated at 2.3 per cent of GDP. This is
2008-09. A more robust recovery is expected compared to the 1.9 per cent that had been
in 2011-12 which should see exports top projected in the Eleventh Plan document. The
US$240 billion. However, this level would higher current account deficit is due to the loss
mean an average growth of barely 10 per cent of export momentum caused by the crisis
per annum from pre-crisis levels. combined with strong import demand arising
from the revival of domestic economic growth.
Outlook for Imports, Trade & Current
Account Deficit Foreign Investment Flows

2.25. Merchandise imports are expected to 2.28. The estimate of net foreign capital flows
grow faster than exports. This will be partly due made in the Eleventh Plan document of 3.5 per
to continued increase in the oil import bill on cent is likely to be greatly exceeded. In the first
account of expected hardening of crude oil year of the Plan, capital flows were as high as
prices in the context of economic recovery in 9.2 per cent of GDP. In the second crisis-
the developed world. More so, the rise in affected year, this plummeted to 0.8 per cent. In
imports ahead of exports is likely to flow from (2009-10), it is expected to recover to 3.5–4.0
the increased pace of infrastructure investment per cent of GDP, going up to 4–5 per cent in the
resulting in higher volumes of manufacturing last two years of the Plan.
activity and capacity expansion in these areas.
Imports are expected to increase from an 2.29. In-bound Foreign Direct Investment
estimated US$279 billion (DGCI&S) in 2009-10 (FDI) rose from less than US$9 billion in 2005-
to over US$350 billion in 2010-11 and to over 06 to US$23 billion in the next year. Thereafter,
US$410 billion in 2011-12. Consequently the it rose further to average US$35 billion in the
28 Mid-Term Appraisal of the Eleventh Five Year Plan

years 2006-07 to 2008-09 and is likely to be These funds generally have a lock-in provision
around this level in 2009-10 also. A step-up is for investors of between three to seven years.
seen likely in the coming years and more so in
2011-12 as the Indian economy consolidates 2.32. This is a new phenomenon in India,
economic growth. promoting the flow of funds, mostly from
foreign and some domestic investors, to bring
Private Equity / Venture Capital together Indian entrepreneurs with a promising
business model with capital and technological
2.30. Over the past few years, the private knowhow through the fund managers. It has
equity industry, which is referred to in the enabled these Indian companies to grow and
regulatory literature in India as “Venture Capital expand becoming, in some cases, industry
/ Private Equity (VC/PE)”, have been leaders. It is believed that private equity has
instrumental in facilitating the flow of Foreign considerable potential in mobilising more capital
Direct Investment (FDI) into India. Private over the coming years and which, when
Equity (PE funding) has been responsible for combined with technical and managerial
cumulative investments of approximately assistance to Indian firms and entrepreneurs,
US$50 billion made into about 1,400 companies hold out value as instruments for economic
over the past ten years. In 2007-08 it is development. Policy should take cognizance of
estimated that over half of the FDI inflows, this potential and encourage these flows.
amounting to US$34 billion, was made through
PE investments. In 2008-09, it is estimated that 2.33. Out-bound FDI began to rise from 2006-
this share fell to about one quarter of the total 07 as Indian companies began to acquire
inbound FDI flow of US$35 billion. Large productive assets overseas. Between 2006-07
beneficiaries of PE investments include telecom and 2008-09 it has ranged between US$15 and
(in excess of US$4 billion) and IT/BPO sector US$19 billion and is likely to have been at the
(over US$6 billion). Infrastructure projects have lower end of this range in 2009-10. In the
received around US$21 billion of which power, coming two years outbound FDI is likely to
road, construction equipment & services got increase to cross US$20 billion in 2011-12.
more than US$7 billion, shipping & logistics
US$1.5 billion and real estate US$8.3 billion. 2.34. The net FDI flow in 2009-10 is expected
Many prominent Indian companies that have to be around US$20 billion. This could easily
come up well in recent years have been rise to US$25 billion in 2010-11 and further to
assisted at their formative stage by PE US$30 billion in 2011-12, provided macro-policy
investments. inspires confidence. Strong portfolio flows at the
levels achieved in 2009-10 are likely to continue
2.31. The notable feature of PE investments into the next two years. Commercial loan
has been that, aside from infrastructure and raising (on net basis) will increase from current
real estate, the average size of such year’s levels to about US$20 billion in 2010-11
investments have been about Rs. 70 crore, that and US$30 billion in 2011-12. Thus, total
is, in mid-size firms. The PE investments have, capital flows could be US$80 billion in 2010-11
along with the capital, also brought in and US$90 billion in 2011-12. This would result
technology and market knowhow, which has in accretion to foreign exchange reserves of an
contributed to the success and expansion of order of 2 to 2.5 per cent of GDP (around
Indian companies. Private equity operates US$35–40 billion) in each of the coming two
across many stages from the classic venture years which can be absorbed without much
capital (seed/start up stage), investment into difficulty. The expected average net capital flow
mid-size corporates for expansion / for the entire Eleventh Plan period is, thus,
diversification and buy-outs of existing estimated at 4.6 per cent of the GDP.
companies. Many firms operate across this
continuum while some focus on specific stages. 2.35. The external balance indicators
The other notable feature of private equity is therefore present a relatively comfortable
that the investment is made with a view to picture. The current account deficit will rise to
remain in the business in the medium-term. between 2.5 and 3.0 per cent of GDP in the last
 Macro Economic Framework 29

two years of the Eleventh Plan. This will not be 2.38. The inflation rate in primary food has
difficult to finance through long term capital varied widely across Plan periods. The
flows including FDI unless there is a sharp Wholesale Price Index (WPI) for primary food
deterioration in global economic conditions. shows that the inflation rate rose from 6.4 per
cent in the Seventh Plan to 10.2 per cent in the
Inflation and Price Stability Eighth Plan, before falling to 5.2 per cent in the
Ninth and then to 3.6 per cent in the Tenth
2.36. The Eleventh Plan document had noted Plan. In the first three years of the Eleventh
that food prices, particularly foodgrain prices, Plan, including the current financial year (2009-
had begun to show a rising trend worldwide. It 10), average primary food inflation is likely to be
had also felt that this process was likely to put close to 9.5 per cent, almost as high as that in
pressure on Indian agricultural product prices. It the Eighth Plan.
had noted that while the Indian farmer stood to
gain from the higher prices, and that improved 2.39. Except the Tenth Plan period, for every
returns on agriculture would encourage other Plan period since the Seventh Plan, and
investment in the sector and improve real rural including the first three years of the Eleventh
incomes, the consumers of food, who include Plan, the inflation rate measured by the three
most of the poor in the country, would be commonly used Consuner Price Index (CPI)
adversely impacted by any undue increase in indices, namely, that for Industrial Workers,
food prices. Balancing this conflicting objective Agricultural Labour (AL) and Urban Non Manual
would pose a major problem. Employees (UNME) showed higher rates of
inflation than the Wholesale Price Index (WPI)
2.37. As seen in from Table 2.3, inflation for all commodities. (It should be noted that for
rates, no matter what index is used, tend to CPI (AL), the inflation rate in the Ninth Plan was
show a sustained trend of annual inflation of 5 lower than the WPI inflation.) The persistently
per cent and higher. This is not only more than high inflation rates, as measured by the CPI
that prevalent in the advanced economies but indices vis-à-vis the WPI, suggest that at the
also higher than that obtaining in many retail level, price mark-ups have consistently
developing countries in Asia, especially East risen. This is in all likelihood a function of an
Asia. The other significant point that emerges under-developed and antiquated system of
from Table 2.3 is that inflation in primary food collection, process, storage and distribution for
products has generally been higher than the farm products. This is underscored by the fact
overall inflation, and for that matter, inflation in that the CPI (IW) food inflation is greater vis-à-
manufactured commodities. vis that reflected in the WPI (primary food) for

Table 2.3

Inflation Rates across Plan Periods

Per cent
Wholesale Price Index Consumer Price Index
All Primary Primar Comm Manufactu Industrial CPI-IW Agricult Urban Non
Comm Food y Non- ercial red Worker Food ural Manual
odities Food Energy products (IW) Labour Employees
(AL) (UNME)
VII Plan (1985– 6.7 6.4 6.3 6.0 7.5 8.0 7.8 7.5 7.7
90)
VIII Plan (1992– 8.7 10.2 8.2 10.8 8.3 9.3 9.9 8.9 9.1
97)
IX Plan (1997– 4.9 5.2 2.8 12.7 3.0 6.3 4.9 3.9 6.7
02)
X Plan (2002–07) 5.0 3.6 4.4 7.4 4.4 4.6 4.3 4.2 4.5
XI Plan (first 3 5.5 9.4 11.9 1.9 5.4 9.3 12.6 10.6 9.1
years: 2008–10)
30 Mid-Term Appraisal of the Eleventh Five Year Plan

the first three years of the Eleventh Plan Period. Sectoral Developments

2.40. The other notable feature is that the 2.44. Along with the big increase in overall
inflation rate for manufactured products has GDP growth in the Tenth Plan to 7.8 per cent,
come down significantly. Whereas in the the average growth of per capita incomes also
Seventh and Eighth Plan periods, manufactured experienced a very significant improvement to
goods inflation was comparable or higher than 6.2 per cent from the average of 3.5 per cent
the headline rate of inflation, since the Ninth during the Ninth Plan period. In the Eleventh
Plan, manufactured goods inflation has been Plan document, the target annual growth at an
significantly lower than the WPI or CPI headline average of 9 per cent corresponded to an
inflation rate. This development certainly flows average growth rate of per capita incomes of
from greater trade openness which in turn 7.5 per cent. This was indeed achieved in 2007-
encourages modernisation and increased 08 but fell back in 2008-09 to 5.2 per cent due
efficiencies in the manufacturing sector. to the drop in overall economic growth because
of the global crisis. This adverse impact would
2.41. The other notable feature is that, be felt in the current year (2009-10) as well,
notwithstanding the big spike in food price with projected per capita income growth of 5.7
inflation in the Eleventh Plan, particularly since per cent. In the last two years of the Plan, as
2008-09, and the elevated levels of prices of growth moves up to the desired trajectory, per
energy products, the headline rates of inflation capita income growth will revert towards 7.0–
have shown a declining trend. The larger weight 7.5 per cent per annum (see Table 2.1).
of food items in the CPI index has caused a
reversal in the direction of CPI headline rates in 2.45. In the Tenth Plan, the GDP arising in
the Eleventh Plan, but the WPI index still agricultural & allied activities, i.e. the farm
displays a lower rate of inflation than was sector, was expected to increase by 4 per cent
prevalent in the late-eighties and early-nineties. per annum. However, the actual achievement
was only at 2.3 per cent per annum, about the
2.42. The principal factor behind the elevated same as that in the Ninth Plan. The Eleventh
levels of inflation in the recent period derives Plan placed considerable emphasis on lifting
from serious constraints in production and the rate of economic growth in the farm sector,
distribution especially that in farm sector upon which a majority of our population are
products. It is imperative that policy takes a directly or indirectly dependent. There was
very close look at what the nature of these robust growth in 2007-08 of 4.7 per cent, but it
constraints and deficiencies are, and find short- dropped to 1.6 per cent in the subsequent year.
term and medium-term solutions to relax these In 2009-10, due to severe drought, the GDP
constraints and thus alleviate the inflationary arising in the farm sector has been estimated in
pressure. the Advance Estimate to have expanded by 0.2
per cent. With this, the average for the last
2.43. Price stability is imperative for realising three years of the Eleventh Plan stands at 2.2
inclusive economic growth, since high inflation per cent per annum, considerably short of the
lowers real incomes in a much more desired target of 4.0 per cent average.
aggravated fashion amongst wage and low
income earners. In order to achieve price
stability, we need to target a headline rate of
inflation for both CPI and WPI indices of 5 per
cent and then progressively lower. This was
indeed achieved in the Tenth Plan and,
therefore, is quite within the realm of
possibilities.
 Macro Economic Framework 31

Table 2.4
Sectoral Rates of Growth

Averages for Plan Periods XI Plan

VII VIII IX X Plan Expect Annual Likely Weight of the sector in GDP
Plan Plan Plan ation
1985- 1992- 1997- 2002-07 2007-12 2007- 2008- 2009- 2007-12 1984-85 1994- 2004- 2008-
90 97 2002 08 09 10 95 05 09
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Growth over period in per cent per annum Measured at current prices
Agriculture 3.0 4.8 2.5 2.3 4.0 4.7 1.6 0.2 3.0 32.5 28.5 18.9 17.2
& allied
activities
Mining & 9.0 3.6 4.0 6.0 3.9 1.6 10.6 6.3 2.8 2.5 2.9 2.4
Quarrying
Manufacture 6.3 9.5 3.3 9.3 10.0 to 10.3 3.2 10.8 8.5 16.6 16.7 15.3 15.6
Electricity, 9.1 7.2 4.8 6.8 11.0 8.5 3.9 6.5 6.9 1.9 2.7 2.1 1.6
water & gas
supply
Construction 5.6 3.5 7.1 11.8 10.0 5.9 6.5 8.5 4.6 4.9 7.7 8.6
Trade, 6.6 9.3 7.5 9.6 9.5 5.3 7.0 12.3 13.2 16.1 16.2
hotels &
restaurants 9.0 to
Transport, 6.4 7.7 8.9 13.8 11.0 13.0 11.6 9.3 12.3 5.2 7.0 8.4 7.9
storage &
communicati
on
Finance, 10.0 7.0 8.0 9.9 13.2 10.1 9.7 10.5 10.9 12.0 14.7 16.2
realty &
business
services
Personal & 6.9 5.6 7.7 5.3 6.7 13.9 5.6 8.2 13.0 12.6 13.9 14.6
community
services
Aggregate 5.7 6.5 5.5 7.8 9.0 9.0 6.7 7.4 8.1 100 100 100 100
GDP
Memo
Industry 6.6 7.3 4.3 9.4 10–11 9.5 3.9 9.3 8.2 26.0 26.8 28.0 28.2
Services 7.4 7.3 7.9 9.3 9–11 10.5 9.8 8.5 9.6 41.5 44.7 53.1 54.9

2.46. Industrial activity, especially in the second half of 2009-10, is expected to

manufacturing, had picked up strong sustain and reinforced through 2010-11 and
momentum during the Tenth Plan. 2011-12.
Manufacturing averaged 9.3 per cent growth in
the Tenth Plan and the momentum continued 2.47. The Eleventh Plan document had
into 2007-08 the first year of the Eleventh Plan expected GDP arising in the industrial sector to
(10.3 per cent). However, global crisis caused grow by 10 to 11 per cent. This would have
industrial activity to stagnate in the second half been a mild acceleration from the average of
of 2008-09 and the first few months of 2009-10. 9.4 per cent during the Tenth Plan. In the first
Consequently GDP growth in the manufacturing year of the Eleventh Plan, especially during the
sector in 2008-09 was a mere 3.2 per cent. second half, there was a slight slump in
There has been significant improvement since industrial output growth. This was due to
June 2009 and the momentum that has built up various factors, including tighter monetary
32 Mid-Term Appraisal of the Eleventh Five Year Plan

policy environment and high prices of raw case of trade, hotels and restaurants, it has
material and intermediates, followed by the shown a recovery in 2009-10. These sectors of
global crisis in the second half of the year. The the economy are expected to expand at a rate
first half of 2008-09, saw an overall growth of of over 10 per cent in 2010-11 and pick up
6.1 per cent which, however, collapsed to less slightly in the subsequent year.
than 2 per cent in the second half. In the
second quarter of 2009-10, GDP arising in the Economic Growth in the States
industrial sector showed a strong recovery by
growing by 8.3 per cent and averaging 6.7 per 2.49. It is pertinent to note that, while there
cent in the first half. Strong growth of over 14 continues to be differences in both the level and
per cent was recorded in the third quarter, the rates of growth of incomes (Gross State
which is expected to be repeated in the final Domestic Product or GSDP) in the
quarter of 2009-10. The recovered momentum States/Union, the data suggests that the
is expected to continue into the two remaining benefits of growth have indeed reached all the
years of the Plan period. For the Eleventh Plan constituent States of the Union, albeit in
as a whole, the average annual growth of GDP somewhat different measures.
arising in the industrial sector, as well as in the
manufacturing component, is thus likely to be 8 2.50. Table 2.5 presents the average rates of
per cent or slightly higher. growth in Gross State Domestic Product
(GSDP) over the last four plan periods as well
2.48. The GDP arising in the service sector as in the first two years of the Eleventh Plan. It
has accelerated from 7.3 per cent in the Eighth may be noted that the median growth (other
Plan to 7.9 in the Ninth Plan and to 9.3 per cent than North Eastern hill states and Union
in the Tenth Plan. In the Eleventh Plan Territories) rate had risen from 5.7 and 5.8 per
document, the expectation was that GDP cent in the Seventh and Eighth Plan
arising in the services sector would grow at an respectively, to 8.4 per cent in the Tenth Plan,
average rate of 9 to 11 per cent per annum. In after having dropped to 4.9 per cent in the
the first year of the Plan, growth was 10.5 per Ninth. In the first year of the Eleventh Plan, the
cent and in the second 9.8 per cent. The latter median growth rate rose further to 9.1, per cent
was to a certain extent an outcome of the but it fell to 6.5 per cent in 2008-09 because of
higher pay (including arrears) for Government the general slow down. It is expected to remain
employees and pensioners, which also pushed roughly at these levels in 2009-10, before
up the service sector growth in the first half of picking up in the two terminal years of the
2009-10. Overall, for the Eleventh Plan period, Eleventh Plan period.
GDP arising in the service sector is likely to
average around 9.5 percent. Within the services 2.51. The variability between rates of growth
sector, trade, hotels & restaurants which in the different States of the Union is captured
account for nearly 17 per cent of aggregate by the statistical measure of standard deviation.
GDP has shown sustained growth of 10 to 11 This shows that the variability did not increase
per cent over the past several years, while in absolute terms during the Ninth and the
transport, storage & communication which Tenth Plan. It was 2.0 per cent in the Seventh
accounts for nearly 8 per cent of the total GDP Plan and increased thereafter to 2.6 per cent
has grown far more rapidly, by 12–15 per cent during the Eighth Plan. However, in the Tenth
in the Tenth Plan, and 12–13 per cent in the Plan it was lower at 1.8 per cent, despite the
first two years of the Eleventh Plan, due to the median value of growth having risen to 8.4 per
rapid growth of economic activities in these cent. In relative terms, 1.8 per cent standard
areas. Finance, real estate & business services, deviation on a median base of 8.4 per cent
which include the Information Technology growth is much smaller than 2.0 per cent on a
business experienced a high growth in recent median base of 5.7 per cent growth that was
years and is expected to continue on a similar experienced during the Seventh Plan. It may be
trajectory in the remaining years of the Eleventh noted that the standard deviation for 2007-08
Plan. Although there was a slump in growth in and 2008-09 are also not large.
these sectors in 2008-09, particularly in the
 Macro Economic Framework 33

2.52. All States seemed to have moved up in i.e. the bottom 25 per cent of States ranked by
respect of their growth rates and this is perhaps descending order of growth rates. The value for
best illustrated by the value of the first quartile the first quartile was 4.9 and 4.8 per cent

Table 2.5

Economic Performance of the States

Growth Rate of Gross State Domestic Product
Per cent

Averages for Plan Periods XI Plan

VII Plan VIII Plan IX Plan X Plan Expectation Annual
1985-90 1992-97 1997-02 2002-07 2007-12 2007-08 2008-09
Growth over period in per cent per annum
1 Andhra Pradesh 8.0 5.5 5.5 8.3 9.5 10.7 5.0
2 Assam 3.7 2.8 1.8 5.3 6.5 5.7 6.2
3 Bihar 3.3 3.7 3.7 8.7 7.6 8.8 16.6
4 Chhattisgarh 5.7* 2.9 3.3 9.3 8.6 11.7 6.8
5 Delhi 10.1 7.0 6.6 10.2 na 12.5 na
6 Goa 6.2 9.0 5.7 9.3 12.1 11.1 na
7 Gujarat 6.1 12.9 2.8 10.9 11.2 12.8 na
8 Haryana 8.0 5.2 6.1 9.5 11.0 9.5 7.9
9 Himachal Pradesh 8.8 6.5 6.3 7.7 9.5 8.6 7.4
10 Jammu & Kashmir 2.5 5.0 4.2 5.6 6.4 6.3 na
11 Jharkhand 3.3* 0.9 5.2 8.2 9.8 6.2 5.5
12 Karnataka 5.4 6.2 5.8 7.7 11.2 12.9 5.1
13 Kerala 4.8 6.5 5.2 8.9 9.5 9.8 7.0
14 Madhya Pradesh 5.7 6.5 4.5 4.4 6.7 5.2 na
15 Maharashtra 8.3 8.9 4.1 8.6 9.1 9.2 na
16 Orissa 7.5 2.3 5.1 9.5 8.8 11.2 6.6
17 Punjab 6.0 4.8 4.0 5.1 5.9 6.9 6.4
18 Rajasthan 7.9 8.0 5.3 7.5 7.4 9.1 6.6
19 Tamil Nadu 5.1 7.0 4.7 8.5 8.5 4.4 4.5
20 Uttar Pradesh 5.6 5.0 2.5 5.4 6.1 7.2 6.5
21 Uttarakhand 5.6* 5.0* 4.4 9.2 9.9 10.4 8.7
22 West Bengal 4.5 6.3 6.5 6.3 9.7 7.7 6.3
Median 5.7 5.8 4.9 8.4 9.1 9.1 6.5
Standard Deviation 2.0 2.6 1.3 1.8 1.8 2.5 2.8
Quartile 1 4.9 4.8 4.0 6.6 7.4 6.9 5.8
Quartile 3 7.8 6.9 5.6 9.3 9.8 11.0 6.9
North Eastern Hill States and Union Territories
1 Arunachal Pradesh 7.7 5.0 6.6 6.5 6.4 6.4 5.9
2 Manipur 4.7 3.7 4.7 5.7 5.9 6.8 7.1
3 Meghalaya 6.7 4.0 7.2 6.4 7.3 8.4 8.2
4 Mizoram na na 5.7 5.1 7.1 5.5 6.4
5 Nagaland 7.5 7.2 6.5 5.9 9.3 na na
6 Sikkim 12.7 4.6 6.6 7.8 6.7 7.4 8.0
7 Tripura 7.8 6.7 9.4 6.4 6.9 4.1 na
8 Andaman & Nicobar 6.8 10.6 2.4 8.8 na 6.3 na
9 Chandigarh na 11.4 8.5 11.5 na 11.5 10.4
10 Puducherry 4.4 8.6 12.9 9.3 na 24.8 10.8
Note: * In these periods, growth rate taken to be that for parent State before division
34 Mid-Term Appraisal of the Eleventh Five Year Plan

respectively in the Seventh and the Eighth Plan, increased in absolute terms. It was 2.9
and had fallen to 4.0 per cent during the Ninth percentage points in the Seventh Plan and 2.7
Plan. Thereafter, as the country’s economy percentage points in the Tenth Plan. This
looked up in the Tenth Plan, the value for the actually means that in relative terms, since the
first quartile shot up to 6.6 per cent, which was growth rate has been rising, the relative
exceeded in 2007-08. The distance between distance has narrowed even more.
the first and the third quartiles has also not

Table 2.6
Economic Performance of the States in Agriculture & Allied Sector
Using Three Year Moving Averages
Per cent
Averages for Plan Periods XI Plan
VII Plan VIII IX Plan X Plan Expect Annual
Plan ation
1985-90 1992-97 1997-02 2002-07 2007-12 2007-08 2008-09

Growth over period in per cent per annum

1 Andhra Pradesh 3.6 2.6 3.8 5.9 4.0 6.7 3.8
2 Assam 1.9 1.4 –0.8 0.6 2.0 2.0 3.2
3 Bihar 1.6 –0.8 5.5 1.5 7.0 11.1 –3.1
4 Chhattisgarh 2.3* 2.0 –3.9 9.1 1.7 0.3 –0.8
5 Goa 3.4 1.6 –1.0 3.9 7.7 –9.3 na
6 Gujarat 2.6 6.7 –3.7 11.6 5.5 4.5 na
7 Haryana 5.4 2.2 1.7 3.6 5.3 5.9 2.5
8 Himachal Pradesh 3.8 1.0 4.0 3.6 3.0 1.5 2.9
9 Jammu & Kashmir –0.7 4.6 3.3 3.4 4.3 1.5 na
10 Jharkhand 1.6* –0.1 5.1 –0.6 6.3 4.6 2.0
11 Karnataka 2.5 3.9 0.6 1.4 5.4 2.2 2.8
12 Kerala 3.8 3.0 1.1 0.9 0.3 –2.5 –1.4
13 Madhya Pradesh 2.3 4.2 –2.3 5.8 4.4 0.0 na
14 Maharashtra 6.5 5.5 1.6 5.3 4.4 6.6 na
15 Orissa 0.8 2.4 –1.0 4.7 3.0 2.6 1.3
16 Punjab 4.5 2.6 2.2 2.5 2.4 3.4 3.7
17 Rajasthan 6.0 4.0 –1.5 6.8 3.5 6.6 –3.4
18 Tamil Nadu 2.6 2.7 1.1 3.2 4.7 0.8 –3.2
19 Uttar Pradesh 3.0 2.5 2.6 1.9 3.0 4.4 2.7
20 Uttarakhand 3.0* 2.1* 1.5 2.5 3.0 1.2 –0.1
21 West Bengal 4.3 6.2 2.4 2.6 4.0 2.4 1.5
All India total 3.0 3.3 2.3 3.0 4.0 3.3 2.0
Median 3.1 2.6 1.5 3.4 4.0 2.4 1.5
Standard Deviation 1.7 1.9 2.7 2.9 1.9 4.1 2.8
Quartile 1 2.3 2.1 –1.0 1.9 3.0 1.2 –0.8
Quartile 3 3.8 4.0 2.6 5.3 5.3 4.6 2.9
North Eastern Hill States
1 Arunachal Pradesh 7.5 2.5 1.5 2.4 2.8 7.3 4.0
2 Manipur 1.4 1.9 3.2 2.8 1.2 1.5 2.3
3 Meghalaya 0.8 3.3 6.1 4.2 4.7 4.8 3.9
4 Mizoram na na –1.9 2.1 1.6 2.4 1.8
5 Nagaland 3.6 4.0 15.0 6.3 8.1 na na
6 Sikkim 11.1 2.3 –1.5 5.1 3.3 3.1 2.3
7 Tripura 5.1 2.1 3.7 4.9 1.4 1.1 na
Note: * In these periods, growth rate taken to be that for parent State before division
 Macro Economic Framework 35

Farm sector 2007-08 the more differentiated performance

has continued. However, from the previous set
2.53. Farm sector output is characterised by of out-performers only Andhra, Rajasthan and
considerable year-on-year volatility because of Maharashtra have continued to show high
variation in rainfall and other weather-related growth, while Bihar, Jharkhand, Haryana, Uttar
phenomena. The order of volatility that is Pradesh and Punjab have shown significant
observed at the national (all India) level is improvement. The available data does not
greatly multiplied when this is examined at the cover enough States in 2008-09 and even that
level of individual States. It has been an is liable to revision not permitting many
established practice to use a moving three-year conclusions to be drawn for developments in
average to smoothen out some of this variation. that year.
The growth rates reported at Table 2.6 have
been computed using three-year moving Industrial & Service sectors
averages for GSDP arising in agriculture &
allied activities. For purposes of comparison it is 2.56. The industrial sector in the States has,
the all-India growth rate using three year of course, like the national total, grown at a rate
moving averages that has been reported in this faster than overall GDP (see Table 2.7). The
table. median value was 8.3 per cent in the Seventh
Plan and fell thereafter to 6.8 per cent and 4.9
2.54. The median value of the growth rate in per cent in the Eight and the Ninth Plan
GSDP in the States arising in the farm sector respectively, before accelerating to 10.4 per
dropped from 3.1 in the Seventh to 2.6 per cent cent in the Tenth Plan and 9.6 per cent in 2007-
in the Eighth Plan to 1.5 per cent in the Ninth 08. Figures for 2008-09 were depressed in line
Plan. There was some improvement in the with the development at the national level. The
Tenth Plan when this increased to 3.4 per cent. deceleration of median industrial growth in this
However, 2007-08 has seen a slide-back to 2.4 period was accompanied by a significant
per cent and the figure was even lower in 2008- widening in the performance as reflected by the
09. It is interesting to note that the improvement rising value of the standard deviation from 2.4
in the median value (to 3.4 per cent) of state per cent in the Seventh Plan to 4.0 and 3.0 per
farm sector growth in the Tenth Plan was a cent in the Eighth and Ninth Plans respectively.
striking improvement from the 1.5 per cent of However, in the Tenth Plan period, which saw a
the Ninth Plan and parallels a less pronounced massive elevation in the median and all-India
improvement in the all-India growth rate of the growth rates, there was also a fall in the
farm sector from 2.3 in the Ninth Plan to 3.2 per standard deviation to 3.1 per cent, thereby
cent in the Tenth Plan. indicating a broad-based revival of industrial
activity.
2.55. What seems to have happened is that
some States did particularly well in the Tenth 2.57. The median growth in the service sector
Plan – namely, Gujarat, Chhattisgarh, also saw a decline from 7.7 to 5.8 per cent
Rajasthan, Madhya Pradesh, Orissa, Andhra between the Seventh and Eighth Plan periods,
Pradesh and Maharashtra. In fact as many as before recovering somewhat to 6.9 per cent in
six States (excluding NE States) registered the Ninth Plan period (see Table 2.8). The
average annual farm sector growth rates in Tenth Plan period saw a significant acceleration
excess of 5 per cent in the Tenth Plan, whereas of the median value to 8.5 per cent that was
in the Seventh Plan, where the overall growth sustained in the first two years of the Eleventh
performance was comparable, only three States Plan. The variance across states as measured
recorded over 5 per cent annual average by the standard deviation was more stable than
growth. In the Tenth Plan period there were in the case of the industrial sector at around 2
many out-performers, but there were several per cent across these Plan periods.
States lagging. This is why we see that the
standard deviation for the Tenth Plan period is 2.58. It is noteworthy that the growth rate of
higher than that in the Seventh and the spread both industrial and service sector for the first
between the first and third quartiles larger. In quartile of States (bottom 25 per cent) has
36 Mid-Term Appraisal of the Eleventh Five Year Plan

shown a dramatic improvement from the Eighth pointed out that many States which generally
and Ninth Plan to the Tenth. Thus, for the had not been strong performers in previous
industrial sector the growth rate of the first Plan periods did well in the Tenth Plan, besides
quartile improved from 3.4 and 3.0 per cent in performing strongly in the early years of the
the Eighth and Ninth Plan to 8.8 per cent in the Eleventh Plan period for which data is available.
Tenth Plan and 7.9 per cent in 2007-08. The Of particular note in this category of strongly
improvement in the service sector was performing states in the Eleventh Plan are
significant if not so pronounced, rising from 5.2 Bihar, Jharkhand, Orissa, Chhattisgarh,
and 6.0 per cent in the Eighth and Ninth Plan Gujarat, Tamil Nadu, Himachal, Haryana,
periods to 7.3 per cent in the Tenth Plan period Kerala, Uttarakhand and Uttar Pradesh. Several
and 8.2 per cent in 2007-08. It may also be of these States have also been the ones to
Table 2.7
Economic Performance of the States in the Industrial Sector
Per cent
Averages for Plan Periods XI Plan
VII Plan VIII Plan IX Plan X Plan Expectation Annual
1985-90 1992-97 1997-02 2002-07 2007-12 2007-08 2008-09
Growth over period in per cent per annum
1 Andhra Pradesh 8.1 6.6 4.9 11.5 12.0 10.4 0.2
2 Assam 3.1 3.2 1.9 7.9 8.0 3.4 3.8
3 Bihar 6.0 –0.6 10.6 17.7 8.0 17.0 19.6
4 Chhattisgarh 10.2* 2.5 4.3 14.7 12.0 13.5 10.7
5 Delhi 9.6 3.6 5.0 10.9 na 4.6 na
6 Goa 6.3 7.8 12.3 9.0 15.7 8.8 na
7 Gujarat 7.6 15.6 1.8 13.1 14.0 10.7 na
8 Haryana 10.8 6.0 6.7 10.4 14.0 9.5 5.4
9 Himachal Pradesh 11.8 14.2 5.6 10.2 14.5 9.1 12.5
10 Jammu & Kashmir 4.6 1.9 3.0 8.4 9.8 11.3 na
11 Jharkhand 6.0* –0.3 3.2 13.5 12.0 4.4 4.4
12 Karnataka 7.7 6.0 7.8 11.1 12.5 13.1 5.0
13 Kerala 6.0 8.4 4.3 12.5 9.0 11.2 10.3
14 Madhya Pradesh 10.2 9.0 8.2 5.5 8.0 6.9 na
15 Maharashtra 8.6 8.0 1.0 8.6 8.0 8.0 na
16 Orissa 9.4 3.4 4.2 16.1 12.0 20.0 0.7
17 Punjab 8.7 7.1 4.8 7.8 8.0 9.8 8.0
18 Rajasthan 8.5 9.2 8.1 10.0 8.0 7.8 2.8
19 Tamil Nadu 4.2 8.4 2.0 10.5 8.0 2.2 1.0
20 Uttar Pradesh 8.6 7.7 0.8 9.7 8.0 9.2 6.2
21 Uttarakhand 8.6* 7.9 5.7 15.9 12.0 13.4 14.1
22 West Bengal 3.9 5.3 6.6 8.7 11.0 10.4 7.2
Median 8.3 6.8 4.9 10.4 11.0 9.6 5.8
Standard Deviation 2.4 4.0 3.0 3.1 2.6 4.2 5.3
Quartile 1 6.0 3.4 3.0 8.8 8.0 7.9 3.6
Quartile 3 9.2 8.3 6.8 12.9 12.0 11.3 10.4
North Eastern Hill States
1 Arunachal Pradesh 7.0 10.0 16.2 12.1 8.0 4.3 3.0
2 Manipur 6.6 2.7 6.5 14.1 8.0 9.8 9.7
3 Meghalaya 6.1 4.3 10.4 8.8 8.0 15.8 11.0
4 Mizoram na na 9.6 8.6 8.0 7.1 11.2
5 Nagaland 19.8 21.5 0.0 9.7 8.0 na na
6 Sikkim 22.8 7.5 12.4 10.2 8.0 9.8 10.6
7 Tripura 9.5 9.2 24.2 6.7 8.0 3.0 na
Note: * In these periods, growth rate taken to be that for parent State before division
 Macro Economic Framework 37

record strong improvement in farm sector GDP these States, such as Meghalaya, Arunachal
as well. Pradesh and Sikkim. In the industrial sector
signs of a strong pick-up in the Tenth and
2.59. The North Eastern hill states for the Eleventh Plan are evident in almost all of these
most part show sustained growth rates for States. Growth in the service sector has also
aggregate GSDP in excess of 6 per cent, but no been strong.
significant acceleration. In the farm sector,
strong growth has been recorded in some of

Table 2.8
Economic Performance of the States in the Services Sector
Per cent
Averages for Plan Periods XI Plan
VII Plan VIII IX Plan X Plan Expect Annual
Plan ation
1985-90 1992-97 1997-02 2002-07 2007-12 2007-08 2008-09
Growth over period in per cent per annum
1 Andhra Pradesh 11.1 5.8 7.5 8.9 10.4 8.0 9.6
2 Assam 4.5 4.4 3.9 7.3 8.0 9.1 6.9
3 Bihar 5.7 4.9 6.9 7.3 8.0 15.0 16.6
4 Chhattisgarh 6.8* 5.6 5.9 6.8 8.0 11.9 11.6
5 Delhi 10.2 5.8 7.1 10.2 na 14.4 na
6 Goa 7.4 11.5 2.8 10.5 9.0 17.0 na
7 Gujarat 8.2 9.0 7.8 10.1 10.5 13.3 na
8 Haryana 9.5 6.7 10.6 11.8 12.0 13.5 11.2
9 Himachal Pradesh 9.3 5.1 8.4 8.7 7.5 5.9 7.6
10 Jammu & Kashmir 4.6 6.0 5.6 5.7 6.4 6.3 na
11 Jharkhand 5.7* 1.5 6.9 7.9 8.0 9.6 7.7
12 Karnataka 7.8 8.5 8.7 9.0 12.0 11.9 8.7
13 Kerala 5.7 7.9 7.9 10.0 11.0 12.6 7.0
14 Madhya Pradesh 6.8 5.3 5.0 4.2 7.0 8.2 na
15 Maharashtra 8.2 8.5 7.6 9.5 10.2 9.5 na
16 Orissa 8.2 5.1 6.7 10.1 9.6 8.9 13.6
17 Punjab 5.2 5.7 6.3 6.0 7.4 7.4 7.6
18 Rajasthan 11.3 7.7 6.3 7.7 8.9 12.0 10.4
19 Tamil Nadu 8.2 8.7 7.2 8.9 9.4 8.2 7.6
20 Uttar Pradesh 7.7 5.1 4.1 5.5 7.1 8.0 7.9
21 Uttarakhand 7.7* 5.8 6.4 8.2 11.0 10.2 8.3
22 West Bengal 4.2 8.0 8.6 7.8 11.0 9.3 9.0
Median 7.7 5.8 6.9 8.5 9.0 9.5 8.5
Standard Deviation 2.0 2.1 1.8 1.9 1.7 3.0 2.7
Quartile 1 5.7 5.2 6.0 7.3 8.0 8.2 7.6
Quartile 3 8.2 8.0 7.8 9.8 10.5 12.5 10.6
North Eastern Hill States
1 Arunachal Pradesh 8.7 5.3 9.4 6.3 7.2 7.5 10.1
2 Manipur 7.1 5.4 4.6 3.3 7.0 6.6 7.0
3 Meghalaya 9.9 4.5 6.8 6.2 7.9 6.3 6.5
4 Mizoram na na 7.9 5.0 8.0 5.7 5.9
5 Nagaland 5.9 4.8 4.6 4.5 10.0 na na
6 Sikkim 14.8 6.4 9.7 7.7 7.2 7.7 8.0
7 Tripura 11.2 8.7 7.9 7.7 8.0 6.2 na
Note: * In these periods, growth rate taken to be that for parent State before division
38 Mid-Term Appraisal of the Eleventh Five Year Plan

Financing the Eleventh Plan issuance of more Government debt and in fact
was consistent with a reduction in the extent of
2.60. The Eleventh Plan had estimated the deficit financing to fund expenditure, including
total resources available for financing the Plan Plan expenditure.
at Rs. 36.4 lakh crore (at 2006-07 prices) from
the Centre and the States together. This 2.64. However, slippages on the revenue
translated to a figure of 13.5 per cent of account of both the Centre and the States
expected GDP over the five-year period. In the began to surface from the second year of the
first three years of the Eleventh Plan, for the Eleventh Plan, i.e. 2008-09. Thus, as against
Centre and the States combined, it is estimated the Eleventh Plan estimate of Centre’s BCR at
that the total available financial resources for 2.3 per cent of GDP, the figure for 2007-08 at
the Eleventh Plan was Rs. 17.9 lakh crore (at 1.7 per cent of GDP was fairly close to target.
2006-07 prices) amounting to 12.0 per cent of However, in 2008-09 it slipped to (–)1.1 per
GDP. It is not feasible to expect that the entirety cent and to (–)1.8 per cent of GDP in 2009-10
of the balance 50.8 per cent of the originally (RE), on account of higher subsidy outgo,
estimated total Plan resources would be expenditures related to the Sixth Pay
available in the remaining two years of the Commission and the large fiscal stimulus
Eleventh Plan. injected in the second half of 2008-09 in
response to the global crisis. The position is
2.61. The Eleventh Plan had visualised a 4.1 expected to improve somewhat to (–) 0.3 per
percentage point of GDP increase in Plan cent of GDP in 2010-11 (BE), but even with
resources from the level of 9.5 per cent in the further improvement in the BCR in 2011-12 it is
Tenth Plan to 13.5 per cent in the Eleventh quite clear that the availability of resources for
Plan. Of this, the Centre’s resources were financing the Plan flowing out of the BCR is
expected to increase by 2.6 percentage points going to be much less than was originally
of GDP while that of the States was expected to envisaged.
go up by 1.5 percentage points. This was a
significant increase between the two Plan 2.65. A somewhat similar situation obtains in
periods and was felt necessary to support the case of the States. As against an estimated
inclusive growth at the elevated rate of 9 per BCR of 1.4 per cent of GDP in the Eleventh
cent per annum. Plan, while the actual for 2007-08 and 2008-09
were above the target, that for 2009-10 (LE)
2.62. It is however to be noted that the showed a slippage to 0.4 per cent. Here too, it
increase of total Plan resources amounting to is likely that there would be an improvement in
4.1 percentage points of GDP was to be more the circumstances for the remaining two years
than financed out of higher Balance from of the Eleventh Plan but the overall position is
Current Revenues (BCR) which was expected going to be weaker than was originally
to increase by 4.7 percentage points of GDP in envisaged.
the Eleventh Plan compared to the Tenth Plan.
It needs to be noted that the Tenth Plan had a 2.66. If the resources flowing from BCR, that
negative BCR amounting to 1 per cent of GDP. is the primary source of non-debt funds
This was visualised to improve to 3.7 percent of available to Government, has fallen so sharply,
GDP in the Eleventh Plan. Of the total increase it therefore follows that the ability to persist with
of 4.7 percentage points of GDP flowing out of Plan expenditures have been restricted from
BCR, 3.1 percentage points was expected from the financing side. This is notwithstanding the
the Centre while 1.6 percentage points was higher borrowings. Borrowings of the Centre
expected from the States. were projected at 2.9 per cent of GDP in the
Eleventh Plan. In 2008-09, 2009-10 (RE) and
2.63. In other words, the objective was not 2010-11 (BE) the Centre’s borrowings
only to raise the rate of economic growth in an (including net MCR) were at 6.0, 6.9 and 5.7
inclusive fashion and do so by increasing the per cent of GDP respectively.
size of the Plan with respect to GDP, but also to
do so in a fashion that did not depend on the
 Macro Economic Framework 39

2.67. While the pressure from weaker BCR, proportion of GDP. The sharp contraction in the
both at the Centre and the States, has reduced availability from BCR may be observed. The
the pool of resources for financing the Eleventh table shows the average for the first four years
Plan, Central assistance to States have, of the Plan as well as the projected value
however, risen by greater amount than was including the remaining one year of the
originally projected. During the first four years Eleventh Plan. It may be noted that the decline
(including 2010-11 BE) of the Eleventh Plan, in GBS, as well as in other heads (Central
the amount of Central Plan Assistance provided Assistance is higher), is much smaller than the
to States and Union Territories aggregated to difference in the absolute value of the estimated
85 per cent of the Plan projections at 2006-07 and projected Plan size. This is because GDP
prices as against the Gross Budgetary Support growth slipped in 2008-09 and 2009-10 due to
(GBS) available for Central Plan which was 67 the crisis and to that extent the denominator
per cent of the targeted amount. term has also fallen short of what was originally
expected for the Eleventh Plan.
2.68. Resources from Public Sector
Enterprises (Centre) including IR and EBR 2.70. It is pertinent to note that the
amounted to 72 per cent of the targeted amount borrowings of the Centre is not only much
during the first four years. higher than originally projected in the first four
years of the Eleventh Plan but that the
2.69. Table 2.9 shows the projected and projected value for the entirety of the Plan
actual resources position of the Centre as a period will also be much higher. In other words,

Table 2.9
Eleventh Plan Projection and Realisation of Resources of the Centre
Per cent of GDP
Sources of Eleventh Realized MTA Projection
Funding Plan
Projection 2007-08 2008-09 2009- 2010- Average MTA Differ
(2007-12) (Actual) (Actual) 10 11 2007-11 Projection ence
(RE) (BE) 2007-12 (8-2)
(Average)
1 2 3 4 5 6 7 8 9
1 Balance from
Current Revenues 2.31 1.69 –1.07 –1.82 –0.31 –0.38 -0.17 –2.48
2 Borrowings Incl.
Net Miscellaneous 2.86 2.46 6.01 6.94 5.69 5.27 5.22 2.36
Capital Receipts
(MCR)
(a) Borrowings
-- 2.57 6.05 6.68 5.46 5.19 5.10 --
(b) MCR (Net)
-- -0.11 -0.04 0.26 0.23 0.08 0.11 --
3 Gross Budgetary
Support to Plan 5.17 4.14 4.94 5.11 5.38 4.89 5.04 –0.13
(1+2)
4 Central Assistance
to States and UT’s 1.20 1.25 1.38 1.40 1.33 1.34 1.33 0.13
5 Gross Budgetary
Support for 3.97 2.90 3.55 3.72 4.05 3.55 3.71 –0.26
Central Plan (3-4)
6 Resources of
Public Sector 4.02 2.92 3.73 3.73 4.32 3.67 3.93 –0.09
Enterprises
7 Resources for
Central Plan (5+6) 7.99 5.82 7.28 7.44 8.36 7.23 7.64 –0.35
 40 Mid-Term Appraisal of the Eleventh Five Year Plan

the objective of funding a larger Plan size 2.71. Table 2.10 shows the principal financial
through the generation of non-borrowed numbers for the Eleventh Plan as originally
resources will not materialise. Some of the projected and as realised in the first four years
shortfall in non-borrowed resources has been of the Plan besides estimates for the balance
offset by larger than envisaged borrowings in one year, computed at constant (2006-07)
order to maintain GBS at a level that was higher prices. In this framework, the order of shortfall
than could have been supported from the in resource generation is significantly larger
realised BCR, supplemented by disinvestment than when it is viewed as a proportion of the
proceeds. size of the economy. The estimates that have
been made here suggest that the GBS for the

Table 2.10
Realised Financing Pattern of the Plan Outlay of the Centre (including UTs)
Rs. Crore at 2006-07 prices
Eleventh Realized MTA Projection
Plan
Projectio 2007-08 2008-09 2009-10 2010-11 Realized Realizat MTA MTA
n (2007- (Actual) (Actual) (RE) (BE) 2007-11 ion Projection Projecti
12) (2007- 2007-12 on to XI
11) Plan
Target
1 2 3 4 5 6 7 8 9 10

Balance from
Current 653,989 79,300 –52,859 –96,173 –17,416 –87,148 –13.3% –47,893 –7.3%
Revenues
Borrowings
Including Net
Miscellaneous
767,722 115,372 296,626 365,669 321,243 1,098,910 143.1% 1,402,974 182.8%
Capital
Receipts
(MCR)
(a) Borrowings -- 120,743 298,700 352,060 308,172 1,079,675 140.6% 1359131 --

(b) MCR (Net) -- -5,371 -2,074 13,609 13,071 19,235 2.5% 43,843 --

Gross
Budgetary
1,421,711 194,672 243,767 269,496 303,827 1,011,762 71.2% 1,355,081 95.3%
Support to
Plan (1+2)
Central
Assistance to
324,851 58,487 68,263 73,547 75,321 275,617 84.8% 353,434 108.8%
States and
UT’s
Gross
Budgetary
Support for 1,096,860 136,185 175,504 195,950 228,506 736,145 67.1% 1,001,648 91.3%
Central Plan
(3-4)
Resources of
Public Sector 183,949 196,427 243,884 761,230 71.8% 1,063,646 100.4%
Enterprises 1,059,711 136,970

Resources for
Central Plan 2,156,571 273,155 359,453 392,377 472,390 1,497,375 69.4% 2,065,294 95.8%
(5+6)
 Macro Economic Framework 41

Central Plan for the duration of the Eleventh 2.75. The principal reason for the differential
Plan at 2006-07 prices may not exceed 92 per movement in financial resources, available at
cent of what was originally envisaged. This is the Centre and in the States, flows from several
despite an 83 per cent increase in borrowing factors. First, the burden of the stimulus
which has partially compensated for the nearly extended to insulate the economy from the
107 per cent shortfall in the BCR at the Centre’s global crisis was borne largely by the Centre
level. and thus were felt on Centre’s finances.
Second, the large increase, above the
2.72. The position of State resources anticipated subsidies, particularly in fertiliser,
projected and actual, expressed as a proportion fuel as well as food subsidies, were also borne
of GDP is at Table 2.11 State’s resources have by the finances of the Centre. Third, the
also been compressed, but by a smaller Centre’s revenue streams were more variable
amount. Thus, the resources available from depending more on underlying economic
BCR which was projected at 1.4 per cent of conditions and to that extent it took a larger hit
GDP for the Eleventh Plan was actually because of the deterioration in these economic
significantly larger in 2007-08 and 2008-09, conditions on account of the global crisis.
before sliding in 2009-10. The average for the
three year period 2007–2010 is estimated at 1.3 Thirteenth Finance Commission
per cent of GDP which is slightly less than what
was projected. The resources from PSEs are 2.76. The Thirteenth Finance Commission
estimated to be somewhat lower, while Central has submitted its report for the period April
Assistance will actually be at the projected 2010 to March 2015. The principal
level. Borrowings by the State governments in recommendations of the Commission have
2007-08 and 2008-09 were slightly lower than been accepted by the Government and some
that projected, but higher in 2009-10. However that relate to initiatives those are yet to begin
for the first three years as a whole, borrowings have been accepted in-principle. The broad
by the State governments is likely to be around recommendations are as follows.
2.2 per cent of GDP, which is lower than the 2.4
per cent projected in the Eleventh Plan. i. An increase in the share of net proceeds of
Central taxes to be assigned to the States
2.73. The States’ resource position in to 32 per cent from the previous figure of
absolute terms expressed at constant (2006-07 30.5 per cent that had been recommended
prices) is shown in Table 2.12. by the Twelfth Finance Commission. In
addition, the Thirteenth Finance
2.74. Thus, for the first three years of the Commission has indicated a ceiling for total
Plan, the aggregate resources available for transfers from the Centre to the States on
Plan of the States and the Union Territories account of tax share and revenue grants,
amounted to 5.1 per cent of the GDP as against which has been placed at 39.5 per cent of
the projected figure of 5.6 per cent. However, in net proceeds from Central taxes.
financial terms, and at constant prices, the sum
ii. Substantial grants-in-aid to the States
of aggregate Plan resources available to the
amounting to Rs. 318,581 crore. Of
States in the first three years of the Plan, stood
particular note is the grant for local bodies
at 51 per cent of the Eleventh Plan total. Even
aggregating to Rs. 87,519 crore. The post-
on an optimistic basis it is unlikely that the
devolution Non-Plan Revenue Deficits
aggregate for the entire Eleventh Plan period
(NPRD) of eight special category States
including 2010-11 and 2011-12 will be equal to
have been assessed to be Rs. 51,800 crore
the initial plan projection of Rs. 14.9 lakh crore.
and the grant accordingly provided. Grants
However, it needs to be recognized that the
have been provided for elementary
extent of the shortfall at the level of the Sates
education to finance additional requirement
would be somewhat less than the shortfall that
of 15 per cent for the Sarva Siksha Abhiyan
is likely to accrue at the Centre.
in-line with the proposed increase in the
share of States from 35 per cent to 50 per
 42 Mid-Term Appraisal of the Eleventh Five Year Plan

Table 2.11
Eleventh Plan Projection and Realisation of Resources of the States and UTs
Per cent to GDP
Sources of Funding Eleventh Realised
Plan 2007-08 2008-09 2009-10 Average
Projection Actual P LE (2007–10)
(2007–12)
1 Balance from Current
Revenues (BCR) including
1.41 2.02 1.57 0.42 1.34
Miscellaneous Capital
Receipts (MCR)
(i) BCR -- 1.89 1.50 0.30 1.23
(ii) MCR -- 0.13 0.06 0.12 0.11
2 Resources of PSEs* 0.49 0.35 0.24 0.56 0.38
3 Borrowings 2.45 1.47 2.24 2.87 2.19
4 State Own Resources
4.35 3.84 4.05 3.85 3.91
(1+2+3)
5 Central Assistance (Grant) 1.20 1.06 1.17 1.36 1.20
6 Aggregate Plan Resources
5.55 4.89 5.22 5.21 5.11
(4+5)
Note: * Includes resources of Local Bodies., P-Provisional Actual, LE-Latest Estimates

Table 2.12
Realized Financing Pattern of the Plan Outlay of the States
Rs. crore at 2006-07 prices
S. Sources of Funding Eleventh Realized
No Plan 2007-08 2008-09 2009-10 Realization Realization
Projection Actual P LE (2007-10) (2007–2010)
(2007–12) relative to XI
Plan target
1. Balance from Current
Revenues (BCR) including
385,050 94,901 77,381 22,335 1,94,617 50.54%
Miscellaneous Capital
Receipts (MCR)
(i) BCR -- 88,699 74,210 15,996 1,78,905 --
(ii) MCR -- 6,202 3,171 6,338 15,712 --
2. Resources of PSEs* 128,824 16,435 11,863 29,412 57,709 44.80%
3. Borrowings 649,422 68,808 1,10,483 1,51,237 3,30,529 50.90%
4. State Own Resources
1,163,296 1,80,144 1,99,727 2,02,984 5,82,855 50.10%
(1+2+3)
5. Central Assistance (Grant) 324,851 49,611 57,858 71,609 1,79,077 55.13%
6. Aggregate Plan
1,488,147 2,29,755 2,57,584 2,74,593 7,61,932 51.20%
Resources (4+5)
Note: * Includes resources of Local Bodies., P-Provisional Actual, LE-Latest Estimates

cent by the terminal year of the Eleventh for the award period. For the Centre, it has
Plan. recommended that the revenue deficit
should be eliminated and the fiscal deficit
iii. A combined debt target for the Centre and should be brought down to 3 per cent of
the States of 68 per cent of GDP to be GDP by 2013-14. For States, the fiscal
achieved by 2014-15. It has worked out a roadmap for each State has been
roadmap of fiscal deficit and revenue deficit separately worked out on the basis of
 Macro Economic Framework 43

current deficit and debt levels. States are recommended that based on its assessments of
required to eliminate revenue deficit and revenue receipts, non-plan expenditure
achieve fiscal deficit of not more than 3 per consistent with the fiscal consolidation path and
cent of their respective GSDP in stages, targets, the resultant GBS is quite consistent
such that all States achieve this target by with the estimates that were made by the
2014-15. The Thirteenth Finance Planning Commission independently and
Commission has recommended that the provided to the Finance Commission.
Centre should fix the borrowing limits of
States within these targets. Accounting, Monitoring and Auditing of Plan
Expenditure
iv. Recommendations on debt relief relate to
interest resets on loans taken from the 2.79. The Eleventh Plan document had
National Small Savings Fund (NSSF) highlighted that the existing system of
subject to conditions relating to Fiscal accounting for Plan Schemes, both for Centre
Responsibility and Budget Management and the States, did not adequately support
(FRBM) Acts and targets. The estimated informed planning, budgeting, effective
interest relief is Rs. 13,517 crore. It has monitoring and decision making regarding
recommended the waiver of Central loans these schemes. The current accounting system
to States that are not administered by the does not distinguish between transfers to
Ministry of Finance and remain outstanding States, final expenditure and advance
as of 2009-10 end. It has further payments against which accounts have to be
recommended complete avoidance of any rendered. The extant accounting framework is
further Central loans to the States under also not structured to generate State-wise and
any Centrally Sponsored Scheme scheme-wise releases of funds by the Central
henceforth. The quantum of expected debt Government to States and other recipients and
relief on this account is estimated at Rs. also the actual utilisation for the intended
4,506 crore. It has also recommended purpose.
continuing with the debt consolidation on
the lines that have been recommended by 2.80. Accordingly, a Plan scheme in the
the Twelfth Finance Commission. Central Sector i.e. Plan Accounting and Public
Finance Management System (PAPFMS) has
v. A model Goods & Services Tax (GST) been initiated in 2008-09. It is being
structure has been recommended, which implemented by the Controller General of
will help in the introduction of GST in 2011- Accounts (CGA). The objectives of this
12 as proposed. Scheme include a reporting framework for
actual plan expenditures, scheme-wise and
2.77. Government has accepted most of the state-wise, incorporation of Special Purpose
main recommendations. The recommendations Vehicles and rationalisation of transfer of funds
on the GST fiscal roadmap and debt relief for Centrally Sponsored Schemes.
through interest reset on NSSF have also been
2.81. In this project, the CGA plans to set up
accepted in-principle.
a Core Accounting System (CAS), which will be
linked to the Core Banking System (CBS) that
2.78. The Thirteenth Finance Commission
most banks have now rolled out. Under the
was also asked to consider the demands on the
CAS, sanctions will move down the line to the
resources of the Centre, especially on account
final implementing authority without any
of the Gross Budgetary Support (GBS) to the
corresponding flow of funds. In parallel, the
Central and State Plans. After examining the
sanctions will also move down the CBS to the
issue, the Thirteenth Finance Commission has
bank branch that will make the payment upon
arrived at the conclusion that taking into
the authorization of the field level implementing
account many practical difficulties it is
agency.
preferable to continue with the present practice
of arriving at the Gross Budgetary Support in a 2.82. In 2008-09, the CGA implemented as a
residual fashion. The Finance Commission has pilot scheme, a mechanism of attaching a
44 Mid-Term Appraisal of the Eleventh Five Year Plan

sanction ID to each sanction of Plan funds by 2.85. There is a need to address these
the Central Government. CGA is in the process weaknesses by amending Scheme Guidelines
of preparing to fully roll out the scheme by to incorporate format of accounts, specific
which the ID sanction tags will enable requisite mandate for C&AG and selection of Chartered
reporting. Accountants for audit of SPVs from a panel
recommended by C&AG with pre-determined
2.83. The PAPFMS must be rolled out in a scale of audit fees.
time-bound manner to cover all implementing
agencies of Central and State Governments Rationalisation of expenditure classification
and their different agencies including Special and scope of Public Sector Plan
Purpose Vehicles (SPVs). It will require a pro-
active engagement of PAPFMS project 2.86. Eleventh Plan document has brought
authorities with office of C&AG, AG’s of different out several deficiencies in the existing
States, Finance/Treasury Departments of State classification of expenditure, the treatment of
governments, RBI and other banks. investment of PSUs financed by IEBR under
the Plan, and the role of SPVs/PPPs and other
2.84. It is also observed that auditing is weak innovative methods of raising additional
in respect of many Centrally Sponsored resources for investment. The Plan document
Schemes(CSS) implemented through SPVs suggests that a High Level Committee should
such as autonomous bodies or societies in the be set up to look into the entire gamut of issues
absence of prescribed format of accounts as arising from the present classification of
well as specific mandate for Comptroller and expenditure, suggest measures for efficient
Auditor General (C&AG) in the guidelines management of public expenditure and define
prescribed for the CSS. Besides, there are the Public Sector Plan.
problems of quality and depth of audit of SPVs
inherent in the present methodology of 2.87. Following this recommendation, a High
selecting Chartered Accountants through a Level Expert Committee will be constituted
bidding process. under the Chairmanship of Dr. C. Rangarajan,
Chairman, Economic Advisory Council to Prime
Minister, to look into these issues.
 3
Governance

INTRODUCTION • Strengthening the accountability of

regulators and promoting their
3.1. The Eleventh Plan had emphasised
autonomy; and
the need for significant improvement in the
quality of governance to achieve inclusive • Strengthening the rule of law with
growth, reduce poverty and bridge the many reforms in police and judiciary.
divides that fragments Indian society. It is
commonly understood that good governance Measures Taken During Eleventh Plan
implies giving effect to the Constitutionally 3.3. Several measures have been taken
protected right to elect governments at various during the Plan to ensure better service
levels in a fair manner, Additionally delivery and good governance. These are
accountability, transparency, elimination of
(i) The Administrative Reforms Commission
corruption and ensuring effective and
efficient social and economic public services (ARC) has given 15 Reports covering all
facets of administration, viz. Right To
is integral to good governance. Equally
Information, unlocking human capital,
important is the need for decentralization of
crisis management, ethics in governance,
power and strengthening Panchayati Raj
public order, local governance, capacity
Institutions, establishing firmly the rule of law
building for conflict resolution, combating
both for individuals and running businesses.
terrorism, social capital, refurbishing
3.2. The strategy identified in the Eleventh personnel administration, promoting e-
Plan to achieve good governance included the governance, citizen centric administration,
following:- organizational structure of Government of
India, financial management systems and
• Decentralisation and strengthening of
State and District Administration. This is
Panchayati Raj Institutions (PRIs);
the Second Commission after
• Critical assessment of performance of
Independence to take a comprehensive
Centrally Sponsored Schemes and
look at a entire range of administrative
removing deficiencies and altering the
issues. Its implementation in the coming
architecture of these schemes;
years would strengthen the governance
• Development and strengthening of structures.
District Planning; (ii) Large expenditure of resources without
• Participation and harmonisation of commensurate outcomes, in public
community-based organisation with services, amounts to unconscionable
voluntary organisation; waste of resources, apart from indicating
• Shift in focus from inputs to outputs sizeable leakages. Based on the
and ultimately to outcomes; recommendations of the Thirteenth
• Strengthening of the monitoring and Finance Commission (TFC), there is a
evaluation mechanism; proposal to give incentives to the States
• Promoting e-governance for better which are able to use the resources
service delivery; effectively. This provision for incentive
• Measures to reduce corruption; grant has been made for local bodies and
• Civil services reforms; the general purpose grants to be given
based on improved outcomes in Infant
Mortality Rates. Improvement in
46 Mid-Term Appraisal of the Eleventh Five Year Plan

Box 3.1

Need for Enactment of Law Mandating Timely Provision of Basic Services

and Punishment for Defaulting Officials

Some of the most commonly required services for all citizens were emphasized by the
Knowledge Commission in its Report. These include easy availability of ration cards for
needy citizens under Public Distribution System (PDS), Birth and Death Certificates, proof
of residence, Passport, land rights and similar other services. In spite of various efforts
made in the past, obtaining these basic documents is still inconvenient for citizens. Apart
from the inconvenience there is corruption and harassment to people especially of those
who belong to the lower income groups. This cannot be acceptable if we want to develop
an inclusive society with development of e-governance, it is possible to provide these
services in a specified time. It will be, therefore, appropriate to enact a law which should
mandate a specific timeframe for different services. Violation of this should attract penalty
for officials who are expected to issue these documents. Such a law should also provide
for extensive monitoring of its implementation. We could learn from the experience of RTI
Act and mandate improvements. The list of services to be under such a law could be
widened gradually.

administration of justice through • Civil Society organisations and the

operation of morning and evening media have started using the Act for
Courts, promotion of alternative dispute bringing in transparency and
resolution mechanism, enhancing support objectivity.
to Lok Adalats, as well as legal aid are • Centre and State Government
also covered therein. In addition, grants departments have initiated training of
are to be given for promotion of key functionaries to assume the
innovation and increasing the efficiency of responsibilities of PIOs and FAAs.
capital assets already created. • Government employees/Public
Authorities are aware of the basic
(iii) The law on Right To Education has been elements of the Act.
enacted. This mandates right to free and • Various State Governments have
compulsory education to all children in the taken up initiatives, which go beyond
age group of 6 – 14 years and standards the stipulations of the Act, and further
of services to be made available is also the spirit of the Act.
being prescribed. This will ensure further
strengthening of the primary education • The judiciary has also taken several
system and reinforce the process of steps to provide information under the
social inclusion. Act, including publication of assets of
Judges. This infusion of transparency
(iv) The RTI Act has been gradually gaining will gradually help the process of
support and effective implementation in governance.
most of the States. An independent Study (v) A Performance Monitoring and
(June, 2009) has shown the following Evaluation System (PMES) is being set
outcomes: up for Central Ministries and
• The basic tenets of the Act have been Departments to ensure that work is more
implemented and the institutional result-oriented. As part of this, each
mechanism is in place and is in use by department will provide a Results-
citizens. Framework Document (RFD) consisting
• The institution of Information of the priorities set out by the concerned
Commission has assumed a pivotal Ministry. After six months, the
position. achievements of each
• Civil Society organisations have been, Ministry/Department will be reviewed by
and continue to be, active in ensuring a Committee on Government
the implementation of the Act in letter Performance and the goals reset, taking
and spirit. into account the priorities at that point of
 Governance 47

time. At the end of the year, all 3.4. In several other areas, however, the
Ministries/Departments will review and progress during the Plan has been slow.
prepare a report listing the achievements Some of these are:
against the agreed results in the
(a) The change in the architecture of the
prescribed format.
continuance of new Centrally Sponsored
(vi) The NGO Partnership System, a web
Schemes (CSS) so that the resources
based portal has been designed,
fund flow and the implementation at the
developed and put into operation by the
local level is strengthened.
Planning Commission, in collaboration
(b) The process of Rehabilitation &
with the National Informatics Centre
Resettlement (R&R) and land issues
(NIC) and with the cooperation of the
related to it need to be further
key participating Ministries. The
strengthened to meet the twin objective
objective is to put in the public domain a
of making land available for development
data base of Voluntary Organisations
of Projects and R&R measures getting
(VOs) and NGOs who have signed up
strong footing.
on the portal; details of grant schemes of
(c) Issuing of Smart Card for service
key Ministries / Departments ; to provide
delivery. This process, however, may
the facility of applying for grants on line
become feasible as UID is implemented.
as well as a tracking system for VOs and
(d) Re-engineering of processes to make
NGOs to know the status of their
the availability of services simpler even
applications. The data base of signed up
where these services are not being
VOs and NGOs (state-wise and issue-
provided through e-governance. This is
wise) and schemes available for NGO
critical for efficient delivery of services to
funding is now operational and is no
citizens and reducing corruption.
doubt very useful. However, making
(e) The civil service reforms and judicial
on-line applications and tracking these is
reforms need to be on a faster track.
yet to become a reality. Nearly 26,000
VOs and NGOs have ‘signed up’ with 3.5. The Mid Term Review has elsewhere
NGO-PS (February, 2010). The Civil indicated developments on several other
Society Window initiative, which fronts. These are mentioned briefly in the
provides a platform for VOs and NGOs following paragraphs.
to present their activities and views on
Decentralisation and Panchayati Raj
different development related subjects to
Institutions (PRI)
the Planning Commission has also been
well received. 3.6. The Ministry of Panchayati Raj has
(vii) As a part of the process of de- been following up on the notification of Activity
concentration of authority, Government Mapping, opening of Panchayat Windows in
has set up extensive regulatory State budgets and assigning of funds and
mechanism covering different sectors viz functionaries in accordance with the
IRDA for insurance, TRAI for devolution of functions. The situation varies
telecommunication, SEBI for securities widely across States and significant
markets, PFRAI for regulating pension devolution has been effected in only a few
funds. The latest of these is the States. While a large number of States have
Competition Commission of India which transferred functions, the concomitant transfer
has been entrusted to ensure market for functionaries and funds has not been
efficiency and consumer protection is done. Thus, almost all the 29 subjects have
now functional. For regulating the been transferred in Arunachal Pradesh, Bihar,
functioning of Airports, an Act has been Himachal Pradesh, Karnataka, Maharashtra,
passed. There is need to review and Kerala, Manipur, Tripura, Uttar Pradesh and
strengthen regulatory regime for Ports. West Bengal. In the case of Andhra Pradesh,
With private investment going up in most only one power relating to secondary,
sectors of the economy, there is need for vocational and industrial schools has been
a strong regulatory regime and effective given to the Zila Panchayats though the
accountability to ministry or the Mandals have been given a larger number of
legislature. Laws and rules regarding subjects.
this should be clearly spelt out.
3.7. Study of the status of devolution of
funds shows that the situation varies widely.
48 Mid-Term Appraisal of the Eleventh Five Year Plan

Table No. 3.1

Devolutions to Panchayati Raj Institutions by States
The Ministry of Panchayati Raj assigned a study to prepare a “devolution index” to the
Indian Institute of Public Administration in 2009. The devolution index based on mandatory
provisions in the Constitution and devolution of functions, finances and functionaries ranked
the states as follows:
Devolution Index (D) and Sub-indices
Rank States/UTs D1 D2 D3 D4 D
1 Kerala 92.59 80.76 69.62 61.25 74.73
2 Karnataka 90.74 77.95 56.11 64.08 69.45
3 Tamil Nadu 89.63 77.11 58.76 49.58 67.06
4 West Bengal 96.30 70.90 61.56 46.25 66.51
5 Maharashtra 73.52 65.52 62.78 44.17 61.49
6 Madhya Pradesh 74.44 63.52 53.50 54.17 59.78
7 Gujarat 54.44 59.78 51.56 44.58 53.07
8 Andhra Pradesh 70.74 45.01 53.77 35.83 50.10
9 Sikkim 87.04 59.11 24.59 40.17 47.43
10 Himachal Pradesh 88.15 53.89 25.30 43.83 47.01
11 Haryana 51.67 44.66 40.15 40.17 43.23
12 Orissa 67.04 56.76 27.17 31.67 42.93
13 Uttar Pradesh 80.00 42.47 35.31 23.17 41.73
14 Bihar 73.33 53.98 22.69 30.33 41.20
15 Lakshadweep 74.44 28.46 33.33 41.25 39.62
16 Rajasthan 70.37 30.72 34.83 28.00 37.56
17 Goa 64.81 29.78 25.81 34.17 34.52
18 Chhattisgarh 48.70 28.80 37.28 26.25 34.24
19 Punjab 62.41 34.25 11.07 40.17 31.54
20 Uttarakhand 41.67 28.75 22.52 30.83 28.92
21 Assam 63.70 23.08 26.56 12.67 28.31
22 Arunachal Pradesh 46.48 19.71 3.17 21.25 18.25
23 Chandigarh 33.33 23.44 5.46 16.25 17.19
National Average 69.37 47.76 36.65 37.40 45.04
Note: The following dimensions construct the sub-indices D1 = Mandatory Frames
D2 = Functions; D3 = Finances; D4 = Functionaries
The study shows that various states have moved with differential pace vis-à-vis one another.
The study finds that no state has secured the same rank in all the dimensions. However, it also
shows that high ranking states have shown a remarkable congruity in most of the indicators of
devolution

In most cases. Funds under MGNREGA and 21 departments have been deputed to
Thirteenth Finance Commission (TFC) Grants Panchayats. Transfer on deputation clearly
alone are released to PRIs. In Karnataka and does not establish accountability as much as
Gujarat funds pertaining to all the functions creation of a cadre at the PRI level. In Kerala
devolved to PRIs under Centrally sponsored staff of 14 departments has been transferred
schemes are being transferred. The situation and in Gujarat 2.2 lakh employees in 11
of devolution of functionaries is even weaker departments have been devolved to
with departmental staff in most states Panchayats. There is a clear need to ensure
answering only to their respective transfer of all functions, functionaries and
departments. However, again in Karnataka, funds relevant for governance at Panchayat
staff of all the departments for which level.
functional devolution has been undertaken
3.8. Factors that constrain the effective
have been devolved to panchayats on
working of the PRIs include:
deputation, while in Tripura staff in respect of
 Governance 49

(i) Inadequate capacity of panchayats are often missing or weak. A comprehensive

and elected representatives to perform support system for district planning is required
the envisaged role. and the District Planning units should be
positioned as the technical secretariats of the
(ii) Limited manpower, infrastructure and
District Planning Committees. This would also
resources with panchayats for
help the States to adhere to the time lines of
implementing their plans.
the national level planning cycle so that
3.9. Gram Panchayats, Block Panchayats districts plans are prepared in time for the
and District Panchayats must have the State plan exercise.
necessary infrastructure to function effectively.
3.12. Planning Commission issued
Panchayat Bhavans or buildings are essential
guidelines for district planning in August 2006.
if the rural local bodies are to be seats of local
A Task Force was also constituted for
governance as these would not only
preparation of a Manual for Integrated District
symbolise the importance of local
Planning. The Manual is a Step-by-Step
governments but also provide physical space
Guide for the preparation of District Plans and
for the office so that records can be properly
it was released in January, 2009.
maintained and people can interact with
functionaries and representatives for 3.13. An important aspect of the planning
transacting the business of PRIs. As per the process which has generally been overlooked
estimates of the Ministry of Panchayati Raj, is the consolidation of urban and rural plans.
out of the 2,32,638 Gram Panchayats, 78,868 Consolidation goes beyond compilation and
have no buildings and 59,245 require major implies value-addition through integration of
renovation. Adequate staff is also required local plans. Given the rapid pace of
particularly as the quantum of funds flowing urbanisation throughout the country, planning
through the panchayats has increased of space is critical, particularly when there is a
exponentially. Often there is only one significant urban presence in the district, with
secretary serving a cluster of small gram strong pulls on infrastructure and resources.
panchayats. Although the total expenditure The constitutional imperative of preparation of
would appear to be large, it should be District Plans cannot be achieved unless rural
possible to fund the personnel through a and urban local governments work together.
percentage of allocation from ongoing An integrated district planning exercise would
schemes which are routed through link plans of local governments and other
panchayats. Thus, instead of having a planning units and would provide a platform
separate set-up for each scheme, the for mutual consultation and collaboration
panchayats should have a secretariat with a between them.
pool of people.
3.14. The main objective in the remaining
3.10. The 73rd and 74th Amendment Acts years of the Eleventh Plan should be to
(Articles 243D (3) and 243T (3)) originally ensure that district planning becomes an
provided for 30 per cent reservation of the integral part of the planning process in the
seats for women. A major achievement has States and the draft State plans are based on
been the passing of the Bill for 50 per cent the district plans. Each district should prepare
reservation for Women in Panchayati Raj a participatory district plan as outlined in the
Institutions by the Parliament. Manual. The plans would be consolidated by
the District Planning Committees as mandated
in the Constitution.
District Planning Committees (DPC)
3.15. Planning Commission is also the
3.11. DPCs have been constituted in all the National Coordinating Agency for the U.N. –
States which are required to do so under the Government of India Joint Programme on
Constitutional Provision, except Jharkhand Convergence and is the implementing partner
and Uttarakhand. A key weakness of the for the UNDP assisted Capacity Building
existing system is the inadequacy of Programme for District Planning. The aim is
institutional and other infrastructure and multi- to prepare integrated districts plans for the 35
disciplinary teams with domain expertise, identified districts in seven States. In this
particularly at the district level. The skills endeavour, the programme would also focus
required for designing appropriate programme on the capacities of District Planning
guidelines, instruction manuals and Committees and Rural-Urban Integration.
information to support the planning process,
50 Mid-Term Appraisal of the Eleventh Five Year Plan

Strengthening of PRIs ensure quick transfer of funds and system

to enable delivery of funds to prevent
3.16. One of the major developments in
scope for corruption, parking and
strengthening the PRIs has been the
diversion of funds.
strengthening of the financial position of the
(v) Ensuring that district planning becomes
institutions. With the recommendations of the
an integral part of the planning process in
Thirteenth Finance Commission, there will be
the States and the draft State Plans are
a four-fold increase in the quantum of local
based on the district plans. Each district
body grants. This should enable PRIs to
would prepare a participatory district plan
strengthen their structure and undertake
as outlined in the Manual. The plans
development works far more effectively.
would be consolidated by the District
Governance will be further improved by
Planning Committee as mandated in the
provision of incentive grants. Strengthening of
Constitution.
their accounting systems should improve
(vi) An integrated district planning exercise
auditing.
would link plans of local governments and
3.17. Some of the issues, which need to be other planning units and would provide a
addressed are : platform for mutual consultation and
collaborations between them. It would also
(i) Strengthening conditionalities of Centrally
provide the framework for integrating the
Sponsored Schemes, to facilitate and
sectoral and spatial aspects of urban and
induce governments to further the process
rural plans.
of decentralisation.
(ii) Need for integrating policies of Ministries 3.18. To strengthen local governments
dealing with Panchayati Raj Institutions’ following measures are necessary to improve
Urban Local Bodies/ rural development/ organisational capacity :
land and local natural resources to ensure
congruence in law and policy making, Organisational Capacity of PRIs
planning, capacity building, training and
implementation. 3.19. Capacity building has two facets in the
(iii) Strengthening the institutions of State context of local government, namely, building
Finance Commission and timely the organisational capacity of the PRIs and
implementing of SFC recommendations building the capabilities of elected
(iv) State Budget should have a clear and representatives and officials, who number 32
detailed PRI window giving details of the lakhs and 10 lakhs respectively. Currently,
budgetary transfers earmarked for each staff and other capacities have only been
PRI. There should be a mechanism to partially transferred to PRIs in order to

Overall Devolution Index

80
70
60
50
40
30
20
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 Governance 51

implement the specific schemes entrusted to grassroots democracy and local planning
them. This is not enough for their effective and implementation. CBOs set up by
functioning as local governments. The government departments in the PRI
following steps must be undertaken domain must have a clearly-demarcated
immediately to build up the organisational functional space and a well-structured
capacity of PRIs: working relationship with PRIs.
(i) Estimating the number of functionaries Building Capability of PRI Elected
required by PRIs to carry out the entire Representatives and Officials
range of tasks assigned to them. They
3.20. Since there is a large turnover of
must then be transferred and made
elected representatives following elections to
accountable to PRIs. This must be
PRIs every five years, training has to be a
followed by creating local cadres,
continuous process involving meticulous
permitting lateral shifting of staff, provide
planning and execution. Apart from a few
flexibility to PRIs to outsource technical
exceptions, State Institutes of Rural
personnel from empanelled providers,
Development have not been able to handle
strengthening supervisory powers of PRIs
this task well, as they themselves lack the
over local staff and increasing the
resources and capacity and are not centres of
proportion of women staff members.
learning or excellence. Moreover, their focus
(ii) Village Panchayats urgently need is more upon the training for implementation
staff and professional support to attend to of Rural Development programmes and not on
their increasing functions. Each village training for local government functioning.
Panchayat must have a full time
3.21. The following steps must be
Panchayat Secretary, Accounts Assistant,
undertaken to improve the reach and quality
Office Assistant, Computer Operator and
of training programmes for PRI elected
technical support for any extra
representatives:
responsibilities entrusted to them. In doing
so, Panchayats may be appropriately (i) Thus far, training content and strategy
resized striking a balance between have been supply driven by institutions
intensity of representation and viability, engaged in this activity. Training must
the need for effective capacity building evolve into a demand-driven system
and giving them a substantive own- where PRIs are able to demand and
revenue base. obtain relevant and useful training at their
convenience from a choice of institutions,
(iii) At present, parallel and parastatal bodies
both from within the government and
set up by the State or Central
outside.
Governments to plan and execute
development projects in areas in the (ii) The training infrastructure needs
functional domain of local governments, considerable improvement. Resource
compete and usurp their legitimate space. centres for capacity building must be
Where these bodies function entirely established at every district, block and for
within the territorial jurisdiction of a given clusters of village Panchayats (as per
PRI, they must be merged with the PRI, need), each equipped with the necessary
brought under their direct control and facilities and access to a strong data bank
made accountable to them, with their The establishment and running of such
professionals being retained and special centres could be entrusted to Collectives
procedures designed to insulate fund or Associations of PRIs, CBOs, Academic
management and provide flexible Institutions and NGOs. Universities and
functioning. If there are compelling Research Institutions must be brought in
reasons for giving parastatals inter- to create the knowledge base for training
municipal or state-wide jurisdictions, the and capacity building. A directory of such
participating PRIs must have a controlling institutions must be created by an
presence in their composition and Autonomous Institution to be established
management. within the Ministry of Panchayati Raj.
(iv) Community Based Organisations (CBOs) (iii) Along with training of PRI elected
formed through societal process should be representatives and officials, there must
harmoniously synergized with PRIs and be a strong focus on awareness building
viewed as nurseries of learning for
52 Mid-Term Appraisal of the Eleventh Five Year Plan

of citizens, to put pressure on improving Release of Funds for Centrally Sponsored

PRI functioning. Schemes
(iv) From within the funds earmarked for 3.24. There is need to take a fresh look at
administrative support in every CSS, a the way funds for Centrally Sponsored
certain proportion must be separately Schemes are released. Consideration should
allocated for training, evaluation and be given to moving away from a system of
research. In the case of NREGA itself, 1 releases based on utilisation certificate to a
per cent of the 6 per cent earmarked for system of audit report linked releases. Such
administrative costs must be specifically audits could be done either through the CAG
allotted to training. or through empanelled chartered accountants
in the country. While it is understandable that
Public Accountability and Transparency
central assistance would be released in two
Proliferation of Centrally Sponsored installments to take care of the cash
Schemes: management problem at the Centre, the
installments a state or a state agency is
3.22. Centrally Sponsored Schemes today
eligible for in a particular financial year should
account for more than half (56 per cent in
be computed on the basis of audited
2010-11 BE) of the Central Plan budget.
utilization of the second preceding financial
While the total number of such schemes is
year. Subject to this, the two releases in a
(approx. 150), only 20 centrally sponsored
year should be automatic and pre-declared.
schemes account for 91 per cent of the CSS
Discipline can be imposed a little later by
expenditure. This raises serious doubts over
temporarily holding back releases if audited
the relevance and desirability of continuing
results show large unspent balances from
with other schemes. While Ministries/
earlier releases. This will not only introduce
Departments continue to press for introduction
certainty in assistance allocation in a given
of new schemes, requests are hardly ever
financial year, but also enhance financial
received for discontinuation of existing
discipline by preventing clustering of releases
schemes that have lost relevance over time.
towards the end and false reporting through
In the spirit of zero-based budgeting, we
utilization certificates merely to prevent lapse
urgently need to consolidate small and
of funds.
splinter schemes which cannot make any
substantive difference on the ground. Any Independent Evaluation Office (IEO)
Ministry/Department which proposes a new
3.25. The Development Evaluation Advisory
Centrally Sponsored Scheme should also be
Committee (DEAC), which is the apex body of
asked to indicate which existing scheme it
Programme Evaluation Organization (PEO)
proposes to replace or consolidate as the new
for taking decision in respect of all aspects of
scheme is introduced. A major rationalisation
programme evaluation discussed and
needs to be attempted in the Twelfth Plan.
approved the proposal of setting up of IEO in
Accounting and Audit Systems for January, 2010. The IEO would be an
Centrally Sponsored Schemes. independent entity as a governance unit to be
funded directly by the Planning Commission
3.23. Accounting and audit systems for
and not by the various line Ministries whose
Centrally Sponsored Schemes leave much to
programmes would be evaluated by the IEO.
be desired. Efforts are being made to evolve a
It would be permitted to engage the services
comprehensive central plan monitoring and
of leading social science research/other
accounting system. All centrally sponsored
knowledge institutions to evaluate the impact
schemes, will be given minor budget codes
of flagship programmes and place the findings
which the centre and the states will follow on
in the public domain. The IEO will have a
uniform basis, so that expenditure on centrally
Governing Board chaired by Deputy
sponsored schemes can be tracked and
Chairman, Planning commission and have as
monitored through the financial systems till the
its Members, inter alia, the Director General
end-point and also related to the finance
(IEO), Secretary, Planning commission,
accounts prepared by the CAG and the State
Representatives of PMO, Ministry of Finance,
Accountants General.
Chief Statistician/Secretary (Statistics) and
two experts from the field.
 Governance 53

E-GOVERNANCE communicate with each other. Each

department remains an island.
3.26. Several governments across the
Technology initiatives have been adapted
world, including in India, have devised e-
to the existing design, built to handle the
governance strategies and are employing
specific needs of specific departments.
technology applications in the delivery of
Such tailor-made systems are not portable
public services. When implemented
outside the projects for which they have
effectively, technology in government can
been developed, and are therefore badly
fundamentally alter a citizen’s relationship
suited for achieving expansion and scale.
with the state.
As a result, such projects cannot be
3.27. Within the Central Government, the expanded at a national level, inter-
Department of Information Technology (DIT) department collaboration is limited, and
has been spearheading many projects there is little learning from previous
including the computerisation of passport implementations and innovations.
applications and pension settlements. State Departments and states are forced to
governments have also undertaken mission- repeat earlier efforts – and mistakes – in
mode projects such as land record digitization their e-Governance initiatives. Many
and e-enablement of agriculture outreach applications come with design and
initiatives. Parallel with these efforts, architecture limitations that make them
integrated initiatives like the Common Service rigid, and unable to make changes in
Centre (CSC) scheme are being implemented terms of addition of more citizen data,
across India to make all Government services connecting to similar initiatives or
accessible to citizens. All these projects are expanding the scope of the system to
tied to the larger vision of e-Governance – include more services. This lack of
using technology to improve governance and emphasis on scale and portability in India
to transform the relationship between the has created preponderance of ‘showcase’
Government and its citizens. projects, pilot implementations by
governments that fail to take off, due to
3.28. Despite efforts, e-Governance
their successes being limited to small,
projects in India have achieved only partial
controlled environments.
success. There are two key challenges that
have so far, constrained the effectiveness of 3.29. While governments have increasingly
our e-Governance initiatives. adopted a positive attitude towards
technology, there has been a reluctance to
embrace technology in its more
(i) Insuffficient emphasis on service delivery: transformational role. This, in a way, is a
Technology initiatives in India have largely broader challenge. The focus of the
concentrated on the back-end, automating traditional government organisation in India
the internal functioning of departments has been based on files and individuals, with
and processes, rather than on improving work proceeding along traditional, hierarchical
service delivery for people. Existing lines. In such a system, technology
initiatives worked to automate department applications support the movement of files
systems, creating efficiencies within the and the work of officials, but are not mission-
department. However, these changes critical. Such an approach views technology
have not trickled down to citizens in the primarily as a means to improve efficiencies in
form of improved access to information the public sector, and as complementary to
and services. The focus in these existing systems. However, as technology
implementations has been on applications becomes more central to government
rather than on information flows. functioning, it is necessary to reorient our
approach, and rethink how technology can be
(ii) Inadequate emphasis on Portability or
used to improve the way government
Scalability: Another important challenge
agencies interact, deliver services, and
for our e-Governance projects has been
connect with citizens. In other words
the customised nature of existing
technology should be viewed as a tool that
technology initiatives. Government in India
can transform and democratise government.
has long functioned in silos, which rarely
54 Mid-Term Appraisal of the Eleventh Five Year Plan

3.30. E-Governance 1.0 has had its at affordable costs to realize the basic needs
advantages – it has helped create a broad of the common man”. The Plan is under

BOX 3.2
Moving from E‐Governance 1.0 to  E‐Governance 2.0 

E‐Governance 1.0  E‐Governance 2.0 

Primary goal is to improve internal administration  Primary goal will be to improve public service delivery 

Applications  are  built  on  inaccurate  citizen  data  Applications will be built on the foundation of Unique ID 

with duplicate and ghost beneficiaries  and have the most accurate resident data 

Excludes end beneficiaries from the system  End beneficiaries will be at the core of the system 

Applications exist in silos  Applications will be interoperable 

Adopts custom software  Will be based on web 2.0 technologies 

Applications  have  limited  applicability  outside  the  Applications will be highly scalable and will require very 

scope of a certain project  limited localization 

Technology is highly customized  Technology will be open and interoperable 

Systems are static and do not allow users to openly  Systems  will  be  dynamic  and  facilitate  real  time  data 
edit and share data  updation among users  
Discourages  collaboration  among  Government  Will  encourage  collaboration  and  information  sharing 
departments  among departments 

Driven by technology vendors / developers  Will largely be user driven 

Will involve low cost of set up and maintenance brought 
Involves high cost of set up and maintenance  
about by cost amortization 

buy-in for technology in government. It is time implementation and various developments e-

to leverage this to usher in a more infrastructure, Common Services Centres and
transformational approach to e-Governance implementation of Mission Mode Projects, are
2.0, one which establishes an interactive, enumerated below.
responsive face of government to the people.
State Wide Area Networks (SWANs)
Moving to e-Governance 2.0
3.33. The Government has approved the
3.31. A critical difference between e- Scheme for establishing State Wide Area
Governance 1.0 and e-Governance 2.0 (see Networks (SWANs) across the country, at a
Box 3.1) is in where the implementation total outlay of Rs.3,334 crore to be expended
begins. While technology efforts in the former under Grant-in-Aid of Rs. 2,005 crore, over a
were top-down and driven from the back-end, period of five years. Under this Scheme,
e-Governance 2.0 begins with the citizen, and technical and financial assistance are being
involves public participation. provided to the States and Union Territories
for establishing SWANs to connect all States
3.32. The National e-Governance Plan was
and Union Territory Headquarters up to the
approved in May, 2006 with a vision to “Make
Block level via District/ sub-Divisional
all Government services accessible to the
Headquarters, in a vertical hierarchical
common man in his locality, through common
structure with a minimum bandwidth capacity
service delivery outlets and ensure efficiency,
of 2 MBPS per link.
transparency and reliability of such services
 Governance 55

3.34. SWAN proposals from 33 States and 3.39. Since the approval of the SDC
Union Territories have been approved, with a Scheme, DPRs for a large number of States
sanctioned total outlay of Rs. 1,965 crore. have been approved involving a total
Goa and Andaman & Nicobar Islands have expenditure of Rs. 1,379 crore. Request For
implemented Wide Area Networks outside Proposals (RFP) has been issued by many
SWAN Scheme. States and have also been approved. The
process of bid evaluation is on and some
3.35. The SWANs in 19 States i.e Haryana,
States have already awarded the contract. It
Himachal Pradesh, Punjab, Tamil Nadu,
is expected that about 12–15 SDCs will be
Gujarat, Karnataka, Chandigarh, Delhi,
operational by the end of 2010 and the rest
Tripura, Puducherry, Lakshadweep, Kerala,
will be completed by the end of 2011. As the
Jharkhand, West Bengal, Chattisgarh, Uttar
network becomes larger, there is a need for
Pradesh, Sikkim, Maharashtra, and Orissa
creating enhanced level of secure and reliable
have been rolled out as on 31 March 2010.
storage. This is imperative in order to ensure
SWANs in other States and Union Territories
real-time and online availability of data and
are in various stages of implementation. All
services to the citizens.
the SWANs are expected to be completed by
September, 2010. Out of sanctioned amount 3.40. The Department of Space currently
of Rs. 1,965 crore, so far, Rs. 562.41 crore to implements Village Resource Centre (VRC) in
33 States and Union Territories has been about 473 locations and it will be necessary to
released. integrate this facility with the SDC Scheme.
3.36. To monitor the performance of Common Services Centre (CSC)
SWANs, Third Party Auditor (TPA) agencies
3.41. Government has approved the
have been mandated for the States and UTs.
Common Services Centre Scheme for
As on 31 March 2010. 11 States i.e. Haryana,
providing support to establish one lakh CSC in
Himachal Pradesh, Punjab, Gujarat,
the villages. The scheme envisages that these
Karnataka, Kerala, Tripura, Orissa,
CSCs will operate as the delivery point for
Maharashtra, Arunachal Pradesh, and West
public and private services to rural citizens.
Bengal have empanelled the TPA agencies
The scheme has been approved at a total
for monitoring the performance of the SWAN
cost of Rs. 5,742 crore with contribution from
in their respective State.
both the Central and State Governments as
State Data Centres (SDCs) well as the private sector, which is expected to
bring in the bulk of the funding.
3.37. The State Data Centre Scheme for
establishing Data Centres across 35 States / 3.42. It has been decided that the CSC will
Union Territories across the country was be suitably positioned to being a network of
approved by the Government on 24 January Panchayat level Bharat Nirman Common
2008 with a total outlay of Rs.1,623 crore Services Centres. The CSCs will be leveraged
towards the Capital and Operational expenses for various services for Bharat Nirman and
over a period of five years. It envisaged flagship programmes such as MNREGA,
creating State Data Centres for the States to NRHM and SSA. Necessary steps have been
consolidate infrastructure, services and initiated to establish CSCs in all of the 2.5
application to provide efficient electronic lakh Panchayats over the next three years.
delivery of G2G, G2C and G2B services.
These services can be rendered by the States Mission Mode Projects and India Portal
through common delivery platform seamlessly
supported by core Connectivity Infrastructure 3.43. Projects that have been achieved
such as State Wide Area Network (SWAN) success relate to income tax, customs,
and Common Services Centre (CSC) at the banking and insurance. The amendments to
village level. the IT Act made in December 2008 (especially
3.38. State Data Centre would serve as the Section 6A) have enabled delivery of services
Central Repository of the State, provide to private sector service providers and allowed
Secure Data Storage, provide Online Delivery them to retain service charges. Over the last 3
of services, manage Citizen years, MCA21, a new electronic reporting
Information/Services portal, State Intranet format for public and private limited
Portal, Remote management and Service companies has been fully implemented and
Integration etc. has created a large database which is useful
56 Mid-Term Appraisal of the Eleventh Five Year Plan

to both the business entities concerned as an individual and as a member of statistically

well as to the Government. well-defined cohort, it becomes possible to
take informed decisions in a different manner.
3.44. The India Portal project has been
Innovations, such as the treatment of
taken up under NEGP to provide a single-
warehouse receipts as negotiable
window access to all information, services and
instruments, further enrich the possibilities
levels of Government for the general citizen,
that may become available. Finally, the large
business entities and overseas Indians. The
initiative taken up by Government in setting up
India Portal hosts a large archive of
the Unique Identification Authority offers the
retrievable forms, details of services as well
prospect of an entirely new information
as Acts and other legislative information.
network, on which many of these financial
3.45. Steps have been taken to use solutions can be layered.
technology in improved provisioning of judicial
3.47. One of the major innovations in
services to citizens. Under the first phase of
Financial Inclusion can be through the use of
this project, a total of 1,600 courts of metro
Mobile Technology for delivering basic
and capital cities have been computerized.
financial services. The proposal assumes
This is expected to be extended at all other
significance considering the growing number
locations. In the second phase of this project,
of mobile subscribers among the rural
citizens will be able to obtain greater
population and the disadvantaged sections.
information including judgments, case lists
With mobile subscribers in rural areas far
and the like from this facility. The Transport
outnumbering bank account holders, a large
departments are also proposed to be
section of rural population now has access to
interlinked with this network for the purposes
mobile telephony but not to financial services
of vehicle registration, driving licenses,
through banks. With the rural mobile
registration certificates and the like.
subscriber base expected to grow significantly
Financial Inclusion over the next few years, a delivery mechanism
that enables provision of basic financial
3.46. The report of the Committee, chaired
services on the individual’s mobile would be a
by Dr. C. Rangarajan, on Financial Inclusion
major step in the direction of reaching out to
(January, 2008) has dealt in-depth on the
the “unbanked” population of the country.
current status of financial inclusion and
identified future course of developments. It is 3.48. An Inter Ministerial Group (IMG) set
widely appreciated that the availability of up by the Government for this purpose in
capital is important in lifting productivity and November, 2009 evolved a framework for
incomes at every level of organization. The leveraging mobile technology for financial
Report finds that, using a reasonable inclusion. In March, 2010 the IMG submitted
definition of exclusion, as much as 51 per cent its final report proposing a model that enables
of farmer households are outside the credit basic financial services to be made available
network. Access to banking facilities extend to in every location in the country covered by
only one quarter of the farm population. The mobile telephony irrespective of whether there
constraints obtain both on the supply as well is a bank branch in the immediate vicinity of
as on the demand side. The conventionally the village. The model allows persons with
supervised credit model of the banking system mobile phones to deposit and draw cash
is not very suitable when it comes to small instantly into or from their “mobile-linked no-
credits and especially to small rural credits. frills” bank accounts through a banking
There are also associated issues of security correspondent (BC) having a mobile phone in
and collateral. However, at the same time, a the village. Also, the model enables any two
wealth of alternative institutional channels mobile users, irrespective of the bank or
such as Micro Finance – Non-Banking mobile operator providing services, to transfer
Finance Companies, Self-Help Groups and money to each others’ “no-frills” accounts
Credit Cooperatives – have sprung up across specifying only their mobile numbers without
the country with differing success rates. the necessity of any intermediary including
Technological change is also opening up new banking correspondents. When fully
kinds of solutions that involve much lower cost implemented, the model would enable the
overheads and offer a potential escape from same BC in the village to be shared by all the
the conventional limitations of documented banks for supporting basic deposit and
security and collateral. Clearly, if there are withdrawal transactions. The model would
better ways of knowing the customer, both as
 Governance 57

allow even users without mobile phones to issue UIDs to the residents through the
undertake such transactions using biometric- agencies in the Government, both at the
based authentication through a BC. This States and Central level which interact with
framework based on mobile phones and residents in course of their own activities.
biometric-based authentication can form the
core micro-payment platform for electronic Strategy and Approach of UIDAI
benefit transfers, micro-payment services and
financial inclusion for the target groups of our 3.51. The primary focus of the UIDAI’s
social sector programmes. strategy is inclusion, especially of the
Unique Identification (UID) marginalised sections of the Society with a
view to effectively target service deliveries to
3.49. The inability to identify end- them. The approach proposes to leverage the
beneficiaries of public services and to detect technology and the existing infrastructure at
the existence of duplicate and ghost identifies the State and the Central level to enrol the
are major stumbling blocks in delivering public residents into the UID system. There are a
services in India. The UID project can help number of existing data-bases in the country,
deal with this problem by providing, accurate eg: ECI database of voters, BPL Data-bases,
and de-duplicated data on all residents. It is PDS data-bases in some of these States. The
also the only project that can positively existing data-bases suffer from two major
establish the identity of every resident through problems. These are existence of ‘duplicates’
biometric authentication, thus transferring the and ‘ghosts’. Both the problems are proposed
burden of proof from the individual to the to be tackled through use of biometrics and
Government. Ease in identification through de-duplication technology. This will ensure
the UID number would improve access to that at the enrolment stage itself the system
services; it would also pave the way for better rejects all duplicates.
information access by the resident. The UID
can be the bridge between front-end 3.52. The broad features of the strategy are
technology applications and back-end as follows:
digitization in public services – data can be
linked across the department’s internal • The UID number will only provide
processes using the UID number, so that identity
residents can get information on their • The UID will prove identity, not
application, delays and other concerns. The citizenship
UID would also provide public services with a
single view of the resident, enabling • A pro-poor approach
governments to make applications and service • Enrolment of residents with proper
delivery seamless for individuals across verification
departments. Once the UID number allows
governments to identify residents uniquely • A partnership model
and with confidence, and enables applications
• The UIDAI will emphasize a flexible
for seamless delivery of services,
model for Registrars
governments can deliver benefits directly to
residents. Individuals can collect these • Enrolment will not be mandated
through UID-linked bank accounts once they
biometrically authenticate themselves. Such • The UIDAI will issue a number, not a
an approach would allow the Indian card
government to tailor public services around • The number will not contain
resident choices, and respond effectively to intelligence
varying demands and aspirations.
• The Authority will only collect basic
3.50. The Unique Identification Authority of information on the resident
India (UIDAI) was created on 28th January,
2009 to implement the programme issuing 3.53. The first UID Numbers will be issued
unique ID numbers to the residents of India. by early 2011. In March, 2010 Government
Uniqueness of the IDs will be assured through approved the creation of the National
the use of biometric attributes (such as Population Register (alongside the census
photographs, finger prints and iris) which are 2011 operation). This exercise includes the
unique to a person. The Authority plans to collection of biometrics for the entire adult
58 Mid-Term Appraisal of the Eleventh Five Year Plan

population. The work on the NPR has position. The index of corruption identified by
commenced in April, 2010. Collection of them has improved from 2.7 (2002) to 3.4
biometrics is expected to commence by (2008). Since then it has recorded very little
August, 2010 and is expected to be largely growth and remained stationary at around this
completed in the next 12 months. This would level.
ensure near complete coverage by UID of the
3.57. The Administrative Reforms
adult population. The numbers will be issued
Commission (ARC) has made a series of
through various ‘registrar’ agencies across the
recommendations which are being processed.
country.
These measures, it is hoped, must address
3.54. Once a large part of our population is these two issues:
covered, it will be possible to leverage the
(i) A quick identification of those guilty
power of this number to accelerate the
and quick decision and deterrent
electronic benefit transfers, financial inclusion
punishment to the corrupt officials or
and micro-payment services to the target
persons.
groups of our social sector programs. Online
Authentication facilities which UIDAI promises (ii) Identifying processes which take away
to put in place will enable and drive the discretion in decision making and
micropayments platform. UIDs are also bringing more and more transparency
expected to result in substantial reduction in in the process. Enactment of Right to
the leakage in various development programs. Information law has somewhat helped
development of these processes.
3.55. The UID project promises to be a
transformational initiative that could be 3.58. A series of measures were suggested
leveraged to reach Government benefits to in the Plan covering various facets of
the unreached. Reaching the unreached corruption. Unfortunately very little progress
through this initiative must be the focus of all has been made in respect of most of these
agencies involved in this national endeavour. suggestions. These and a number of other
suggestions mentioned by the ARC needs to
be considered urgently. The degree of
CORRUPTION corruption associated with the electoral
process, and its implications for the political
3.56. The biggest challenge in improving
system, also has to be addressed firmly.
governance is to act against corruption which
has permeated the entire social fabric and has 3.59. The various measures enumerated in
led to large-scale mis-utilisation of resources. the chapter would go a long way in improving
Over last three years, while several measures the quality of citizen-centric governance. This
have been taken, there is little evidence that would also help in strengthening the delivery
corruption has gone down. Transparency mechanism facilitating the inclusiveness as
International Index ranks India at 84th envisaged in the Eleventh Plan.
 4
Agriculture
4.1 An important aspect of “inclusive 09; and a severe drought in 2009 (the worst in
growth” in the Eleventh Five Year Plan (2007– 37 years) produced virtually flat growth
12) is its target of 4 per cent per annum growth because of major losses in kharif output which
in GDP from Agriculture and Allied Sectors. also led to high food price inflation. The set
This target is not only necessary to achieve the back in the second and third years of the Plan
overall GDP growth target of 9 per cent per implies that an average growth rate of about 7
annum without undue inflation, it is an important per cent perannum will be required in the
element of ‘inclusiveness’ since the global remaining two years (2010-11 and 2011-12) if
experience of growth and poverty reduction the Eleventh Plan target of 4 per cent is to be
shows that GDP growth originating in achieved. While a robust revival from the
agriculture is at least twice as effective in drought depressed level cannot be ruled out, it
reducing poverty as GDP growth originating would be safer to assume that agricultural
outside agriculture. growth in the Eleventh Plan may fall short of the
4 per cent per annum target. However, it is a
4.2 Growth in agriculture in 2007-08, the matter of satisfaction that agricultural growth
first year of Eleventh Plan was 4.9 per cent. has accelerated compared to earlier periods. In
This continued the strong growth recovery after the period 1996-97 to 2003-04, the three year
2004-05, which reversed a prolonged moving average growth in agriculture was
deceleration since mid-1990s. However, 2.6 per cent; from. 2004-05 to 2009-10, it has
agricultural growth fell to 1.6 per cent in 2008- averaged 3.4 per cent.

Table 4.1
Growth in GDP at factor cost 1999-2000 prices

Agriculture and Total Economy

Allied Sectors
Tenth Plan
2002-03 -7.2 3.8
2003-04 10.0 8.5
2004-05 0.0 7.5
2005-06 5.9 9.4
2006-07 3.8 9.6
Eleventh Plan
2007-08 4.7 9.2
2008-09 1.6 6.7
2009-10 Revised Estimate 0.2 7.4
Triennium 2009-10 over Triennium 2004-05 3.4 8.6
Eleventh Plan Average (2007-10) 2.2 7.7
 
60 Mid-Term Appraisal of the Eleventh Plan

Source: CSO National Accounts Statistics (Various years)

 Agriculture   61

4.3 The remaining years of the Plan will (i) First, there is a definite growth recovery after
test the Eleventh Plan strategy for agriculture 2004-05 from an earlier deceleration
which had aimed to improve access of farmers irrespective of the series considered.
to technology that increases production and
ensures sustainability of natural resources; (ii) Second, despite this, the target of 4 per cent
enhance the quantum and efficiency of public growth has not been achieved except in case of
investments; increase systems support while purchasing power of agricultural GDP which
rationalising subsidies; encourage factors in an improvement in agriculture’s terms
diversification towards higher value crops and of trade. Although year-on-year annual growth
livestock while at the same time protecting rate between 2002-03 and 2007-08 averaged
against food security concerns; and achieve over 4 per cent for all series, as indeed was the
inclusiveness through a more decentralised case in earlier five year spells ending in 1984-
decision-making that focuses on solving 85 and 1992-93, all these spells involve a very
specific local problems and also fosters a group poor base year. Calculations based on moving
approach by which the poor get better access averages, which average out such extremes,
to land, credit, skills and scale. There was show no five year spell involving more than 4
considerable optimism with this strategy during per cent growth of Agriculture GDP at constant
the three years from 2005-06 to 2007-08 when prices. The best that can be said is that growth
agriculture grew consistently at around 4 per performance during the Eleventh Plan period
cent or more. has returned to the previous best range of 3 –
3.5per cent observed during 1992-98.
4.4 The Mid Term Appraisal reveals that not
all aspects of the strategy are doing equally well (iii) Third, the year-to-year variation in annual
and that much more needs to be done on the growth rates of output and GDP as measured
supply side. Not only are current rates of overall by their standard deviation over five year
GDP growth increasing agricultural demand periods have now dropped to an all-time low
and putting pressure on food prices, this is although the absolute level remains high. This
occuring in a decade which has been the reflects not only better public-sector response
hottest ever and also one of the driest since to the 2009-10 drought but also probably a
metreological data are available. general improvement in the ability to adapt to
the adverse climate trends noted earlier.
Longer Term Growth Trends
(iv) Finally, the charts bring out two points
4.5 Longer-term growth trends in Indian stressed in the Mid-Term Appraisal of the Tenth
agriculture are presented in Charts 1 to 3. Plan: that growth deceleration was much more
These plot annualised five-year growth rates of for food grains than for agriculture as a whole;
agriculture GDP using different methods of and that farm income variability rose after
estimation, viz. year-on-year, three-year moving agriculture trade was opened under WTO since
average, and five-year moving average growth. this ended the negative correlation between
The charts also plot (on a secondary axis) the output and prices natural in a closed economy
standard deviation of annual growth rates over and existing measures for price stabilisation
the previous five years. The data relate to food were inadequate to cope with high world price
grain output, GDP from Agriculture & Allied volatility. Matters have certainly improved since
sectors at constant 1999-00 prices and the then, with food grains growth trending up and
purchasing power of Agricultural GDP (i.e. income variability having reduced. But these
Agricultural GDP at current prices deflated by remain areas of concern because per capita
the deflator for Private Consumption food grains production is still below the level
Expenditure). reached in the late 1980s and because the
standard deviation of annual growth in the
4.6 Several important features of purchasing power of GDP during 2004-10 was
agricultural growth emerge from charts 1, 2 & 3. twice that of annual growth in GDP at constant
prices.

 
62 Mid-Term Appraisal of the Eleventh Plan

4.7 Further details of growth revival and but did not accelerate over these periods.
variability are presented in Table 4.2 which Instead, large heterogeneous sectors such as
gives sub-sector wise details of output growth cereals and horticulture (comprising 38 per cent
since 2005-06, comparing this to both the of total output) which were the focus of two
previous five year period and Eleventh Plan missions in the plan strategy have recorded
projections. State-wise growth rates of GSDP more than 1 percentage point increase in
from Agriculture & Allied sectors has been growth rates. Further, the crop sector that bore
presented in tabular form in Chapter 2. the brunt of 2009-10 monsoon failure had
actually grown faster than plan projection during
4.8 As far as sub-sector growth rates are 2005-09 despite fall in sugarcane, cotton and
concerned, the big picture is that average oilseeds output in 2008-09. This gives hope of a
growth during 2005-10, though lower than strong rebound in 2010-11 as was observed
Eleventh Plan targets for every sub-sector, was after the two previous droughts in 1987-88 and
significantly higher for most sub-sectors than 2002-03 If this happens, average agricultural
their average achievement for 2000-05. Since growth during the Eleventh Plan may be able to
monsoon rainfall in 2009-10 was much more exceed 3.0 and perhaps 3.5 per cent.
unfavourable than in 2004-05, this suggests
that the near doubling of overall output growth 4.9 State-wise data buttress this picture of
between these two periods cannot be attributed variable but broad-based recovery. Overall
to weather alone. Table 4.2 also shows that the agricultural GSDP in the 18 major States
growth revival was not due to dramatic sector- actually grew at over 4 per cent during 2005-09,
only to specific innovations, e.g. BT in case of up from 2 per cent during 2000-05. And,
cotton, a crop where output growth was high although year-to-year variations are much

Table 4.2
Sub-sector wise Growth rates of Gross Value of
Output in Agriculture & Allied sectors
(Per Cent)
Average Year on Year Growth Average
Share Growth Projected 2005- 2006- 2007- 2008- 2009- 2005-06
in Value 2000-01 to growth for 06 07 08 09 10 to
of 2004-05 Eleventh 2009-10
Output Plan
1.Crops 42.4 1.0 2.7 6.3 4.0 6.1 -2.5 -5.5 1.7
1.a Cereals 18.6 -0.5 5.4 5.5 4.9 1.7 -8.8 1.8
2.3
1.b Pulses 2.7 1.7 3.0 5.4 7.4 -1.9 1.1 3.0
1.c Oilseeds 6.2 6.2 4.0 14.5 -11.1 17.2 -3.7 -4.6 2.5
1.d Sugarcane 3.7 -3.0 11.7 17.9 -1.6 -21.3 -11.8 -1.1
1.e Fibres 2.8 7.7 3.0 7.8 18.7 17.0 -10.3 0.2 6.7
1.f Other Crops 8.4 2.5 1.0 1.4 1.1 1.3 0.1 1.0
2. Horticulture 19.8 2.0 5.0 5.0 3.9 3.8 3.9 4.0 4.1
2.a Fruits &
15.1 1.7 6.4 3.6 5.2 3.7 4.8 4.7
Vegetables
2.b Condiments &
2.1 5.9 6.6 1.6 6.7 5.9 0.0 4.2
Spices
2.c Drugs and
1.5 -3.0 -8.2 3.2 -8.4 0.5 2.4 -2.1
Narcotics
2.d Floriculture,
Kitchen Garden & 1.1 4.8 4.9 13.6 -2.6 6.9 3.5 5.3
Mushroom
3. Livestock 23.8 3.3 6.0 3.9 4.2 4.5 4.9 3.1 4.1
4. Forestry &
9.6 1.4 0.0 2.0 3.0 2.2 2.9 2.7 2.6
Logging
5. Fisheries 4.5 3.7 6.0 6.1 2.0 5.9 5.9 4.2 4.8
Total 100.0 1.7 4.0 5.1 3.8 4.9 1.3 -0.3 3.0
 Agriculture   63

larger at State-level, as many as 13 of these increased as a proportion of agricultural GDP

states either recorded significant acceleration or after 2003-04.
maintained growth at over 3.5 per cent. The
best performing states during 2005–09 included 4.11 The allocation to agriculture and allied
Andhra Pradesh and Maharashtra (which sectors in Centre’s Plan has been substantially
during the previous decade had faced much increased from Rs. 21,068 crore in the Tenth
stress leading to the largest number of farmer Plan to Rs. 50,924 crore in the Eleventh Plan.
suicides), the poor states of Bihar and However, as percentage of the Total Central
Chhattisgarh, and the relatively dry regions of Plan the share of agriculture and allied sector’s
Gujarat and Rajasthan. Indeed, an interesting continues to be around 2.4 per cent, which
aspect of the recovery are signs of renewed increased to around 3 per cent in 2007-08 see
dynamism in rain-fed areas and some evidence Table 4.4).
that at least some state governments are taking
innovative steps: e.g. involvement of self-help 4.12 The total projected Gross Budgetary
groups and integrated pest management Support (GBS), at current prices, for the
(especially in Andhra Pradesh), and minor Eleventh Five Year Plan for the Ministry of
works to improve water use and conservation Agriculture is Rs. 61,979 crore which includes
(Chhattisgarh and Gujarat). Rs. 41,337 crore for Department of Agriculture
and Cooperation, Rs. 8,054 crore for
Investment in agriculture Department of Animal Husbandry, Dairying &
Fisheries and Rs. 12,588 crore for Department
4.10 The share of investment in agriculture of Agricultural Research & Education. The
(in terms of gross capital formation in utilisation of Eleventh Plan outlay by the
agriculture sector) from 1999-2000 to 2008-09 Ministry of Agriculture, so far, i.e. in first 4 years
is presented in Table 4.3 . It may be seen that (including provision made in Budget in 2010-11)
in recent years i.e. since 2003-04, public is likely to be around 61 per cent, leaving a
investment in agriculture sector has large balance amount for the last year of
accelerated leading to a higher share of public Eleventh Plan. In the case of Department of
sector gross capital formation. It has increased Animal Husbandry, Dairying and Fisheries the
from 17 per cent to 28 per cent (see Table 4.3). utilisation in the first four years is in the order
Gross Capital Formation in agriculture has also 47 per cent and for Department of Agricultural

Table 4.3
Gross Capital Formation in Agriculture and Allied Sectors
(Rs. Crore at 1999-00 prices)
GCF in Agriculture & Allied Sectors
Year GDP in Public Private Total Share of per cent of
Agriculture & Sector Sector Public GCF
Allied Sector Sector in agriculture
Total GCF in
Agriculture Agriculture
GDP
1 2 3 4 5 6 7
1999-00 4,46,515 8,668 41,483 50,151 17.3 11.2
2000-01 4,45,403 8,085 37,395 45,480 17.8 10.2
2001-02 4,73,248 9,712 47,266 56,978 17.0 12.0
2002-03 4,38,966 8,734 46,934 55,668 15.7 12.7
2003-04 4,82,677 10,805 42,737 53,542 20.2 11.1
2004-05 4,82,910 13,019 44,830 57,849 22.5 12.0
2005-06 5,11,114 15,947 50,118 66,065 24.1 12.9
2006-07 5,31,315 18,755 54,530 73,285 25.6 13.8
2007-08 5,57,122 22,107 57,221 79,328 27.9 14.2
2008-09 5,66,045 24,197 61,367 85,564 28.3 15.1
Source: National Account Statistics 2009
 
64 Mid-Term Appraisal of the Eleventh Plan

Research and Education at 55 per cent. Thus budgetary support to agriculture during the
large shortfall in utilisation of expenditure is current Plan, even if the quantum and pace of
expected in the case of Department of Animal increase varies greatly across States. This
Husbandry, Dairying and Fisheries and the development is in line with the expectations of
Department of Agricultural Research and the Planning Commission’s condition when
Education. RKVY was designed.

4.13 An important reason for shortfall in the Role and Performance of Critical Inputs
case of Department of Animal Husbandry,
Dairying and Fisheries has been the slow 4.16 The Eleventh Plan acknowledged that
progress in formulation of schemes, large slowdown in agriculture growth after mid 1990s
number of small schemes and the need for was due to multiple factors including the lack of
capacity building for project formulation at a breakthrough in technology of major crops ;
different levels. A cafeteria approach with low replacement rate of seeds/varieties; slow
merger of small schemes of the Department of growth or stagnation in area under irrigation
Animal Husbandry, Dairying and Fisheries and fertiliser use, decline in power supply to
providing flexibility to the States in selection of agriculture, and slowdown in diversification. It
activities according to their felt needs with a was assumed that the large gap between
decentralised sanctioning procedure, like in the attainable level of productivity achieved in
case of Rashtriya Krishi Vikas Yojana, is frontline demonstration plots and actual
required to expedite expenditure in the sector. productivity at farm level offers a ready option
Simultaneously, a step–up is required in to raise productivity and production by pushing
allocation of funds to these Departments in the use of quality seed, fertiliser, and water
remaining period of the Eleventh Plan. (irrigation). The plan emphasised balanced use
of fertiliser, application of micronutrients,
4.14 During Eleventh Plan the Rashtriya increase in seed replacement rate, and speedy
Krishi Vikas Yojana (RKVY) has an allocation of dissemination of improved and potential
Rs. 25000 crore which is in addition to the technology.
above mentioned allocation of Rs. 61,979 crore
for the Ministry of Agriculture. The releases/ 4.17 A summary assessment of performance
outlay under RKVY during the first four years with regard to each of these is given below.
amount to Rs.14,586 crore which is 58 per cent
of the Eleventh Plan outlay. A substantial Technology Generation and Delivery
increase will be required in 2011-12 to achieve
the Eleventh Plan allocation of Rs. 25,000 4.18 Past experience in India, as well as
crore. worldwide, shows that technology is one of the
prime movers of agricultural productivity and
4.15 States have generally responded growth. India currently spends about 0.6 per
positively to the enhanced focus of the Planning cent of agri-GDP on agri-R&D. It is widely
Commission and Ministry of Agriculture on the believed by experts that India needs to raise
sector during the current Plan. The States have this to at least 1 per cent of agri-GDP, which is
shown a trend towards increasing State an average of the developing countries, if it has
to raise productivity in a sustained manner.
 Agriculture   65

Table 4.4
Central Plan outlay for Agriculture and allied sectors
(Rs. in crore)
Plan outlay for Agriculture and allied sectors
Total Plan Outlay Agriculture & Allied Activities
Tenth Plan (2002-07) @ 9,45,328.00 26,108.00 (2.4 per cent)
Eleventh Plan (2007-2012)@ 21,56,571.00 50,924.00 (2.4 per cent)
Annual Plan 2007-08 (RE)* 2,92,337.01 8,544.33 (2.9 per cent)
Annual Plan 2008-09(RE)* 3,88,077.90 9,969.33 (2.6 per cent)
Annual Plan 2009-10 (RE)* 4,25,590.05 10,123.04 (2.4 per cent)
Annual Plan (2010-11) BE* 5,24,484.31 12,308.47 (2.4 per cent)
Source: @ Eleventh Plan Document, Volume I at 2006-07 prices
* At current prices from various issues of Expenditure Budgets Volume 1
 
Table 4.5
The outlay and expenditure of three Departments of
Ministry of Agriculture during Tenth Plan and Eleventh Plan including ACA to States
(Rs. in crore at current prices)
DAC RKVY WDPSCA TOTAL DAHDF DARE TOTAL
Tenth Plan Outlay
A
(2002- 07) 13,200 2,500 5,368 7,868
2002-03 to 2006-07
(BE) 15,963 90 16,053 2,546 5,100 23,700
2002-03 to 2006-07
(Expenditure) 14,821 89 14,910 2,335 4,658 21,903
Eleventh Plan
B
(Current Prices) 41,337 25,000 240 66,577 8,174* 12,588 87,339
2007-08
(Expenditure) 5,772 1,247 40 7,059 784 1,284 9,127
2008-09
(Expenditure) 6,545 2,880 39 9,464 865 1,630 11,959
2009-10 RE 7,018 3,704 40 10,762 930 1,760 13,452
2010-11 BE 8,280 6,755 40 15,075 1,300 2,300 18,765
X Eleventh Plan
2007-08 to 2010-11
(Expenditure) 27,612 14,586 159 42,357 3,877 6,970 53,205
Eleventh Plan BE
2007-08 to 2010-11
67% 58% 66% 64% 47% 55% 61%
as percentage to
Eleventh Plan Total
* Includes Rs 120 crore for EAP
 

4.19 The generation and dissemination of Bank assistance through National Agricultural
technology is hampered not only by lack of Technology Project (NATP) and National
investible resources but also by its sub-optimal Agriculture Innovation Project (NAIP) has
priorities across crops, regions and institutions, further supplemented financial support to ICAR
and lack of incentives and autonomy in most of in a big way. But just pouring in more
the public research institutions. Out of the two resources in public R&D, without
major Institutions viz Indian Council of commensurate institutional reforms, is not likely
Agricultural Research (ICAR) and State to make the existing system deliver efficiently.
Agricultural Unverisities (SAUs) that comprise
National Agricultural Research System (NARS), 4.20 Broadly, the issues related to
there has been a substantial increase in technology can be put in two categories. One,
budgetary support to ICAR but most of SAUs where productivity levels are high and moved
are facing a serious resource crunch. World closer to the economic potential like wheat and

 
66 Mid-Term Appraisal of the Eleventh Plan

paddy in North West India, castor and cotton in while the number of holdings have increased
Gujarat. Two, where productivity levels are low almost four-fold. Further, with increasing
and far below the economic potential of feminisation of agriculture, it is important that
available technology as seen in most parts of extension models address the needs of women
Eastern and Central India. The former require farmers. In the absence of any such
breakthrough in technology and the latter improvements, the input dealers have donned
require extension and favourable policy the role of extension workers and it has been
environment like remunerative prices, supply of left to the dealers of inputs to provide advice to
inputs, and infrastructure back up, etc. the farmer. Given their poor grasp of
technological issues and more importantly their
4.21 In many areas farmers have been using interest in selling the inputs, this development is
almost the same varieties and techniques for inappropriate and possibly counter-productive.
more than a decade now. Technology There is an urgent need to innovate extension
generation in India is largely under public models built on public-private partnership (PPP)
domain though private sector participation has mode, that specifically integrate the needs of
been increasing. Public sector technology the many farm households that are found to be
generation consists of a supply driven process run today by women, give the farmers the latest
of putting technologies on the shelf of the information about an array of technologies, and
scientists without adequate regard to farmers’ let them choose the best.
needs and perceptions and with insufficient
marketing of the technology. This has led to a Seeds
significant gap between the varieties released
by public sector institutions and the incremental 4.23 Considering the importance of seeds in
number of varieties actually used by the improving the productivity of different crops,
farmers. On the other hand the private sector focused efforts are essential in ensuring their
varieties and seeds like BT cotton, hybrids of timely availability as also increasing the Seed
maize, rice, sunflower, etc. are gaining Replacement Rate (SRR). Inadequate seed

Table 4.6
Production of breeder and foundation seeds and
distribution of certified seed
(lakh quintal)
Breeder Foundation Distribution of certified/ quality
Year seed seeds seeds
2004-05 0.665 6.90 113.10
2005-06 0.687 7.40 126.74
2006-07 0.738 7.96 155.01
2007-08 0.920 8.22 179.05
2008-09 1.000 9.69 190.00
Source: Economic Survey, 2009-10
popularity without much support from public availability continues to be a chronic problem,
extension system. This indicates clearly that mainly due to production shortages by agencies
the private sector is responding to the demand involved in making available certified seeds
of the farmers much more effectively than the from the breeder seeds.
public system.
4.24 Table-4.6 provides the data for 2004-05
4.22 The public sector has to depend on its to 2008-09 on the availability of breeder seeds
extension system to commercialise its and certified seed. There seems to be a good
technology. Extension is the responsibility of progress in production of certified seeds as well
state governments and is the weakest link in as breeder seeds. However, supply of breeder
the chain. There are large unfilled vacancies seeds is invariably much higher than the
and the number of extension workers has indented quantities both for the Central
marginally declined over the last three decades, released varieties as well as state released
 Agriculture   67

varieties. This implies that available breeder a strategic analysis of the trade-offs between
seed is not used to its potential to produce domestic production and imported fertilisers
certified seed. It is high time that private sector with a view to ensure that domestic industry
is invited to participate in large scale faces a policy environment conducive for
multiplication of breeder’s seeds into certified growth and expansion on efficient and
seeds so that replacement rates can be sustainable basis.
significantly increased.
4.30 In some areas excessive use of
4.25 During last 10-12 years, private sector chemical fertilisers has led to degradation of
companies have shown significant growth natural resources such as land and water,
especially in Hybrid varieties, both in crops as which needs an urgent attention. On the other
well as horticulture sectors. Despite this the hand, still one-fourth of the districts use less
seed replacement ratio is quite low and varies than 50 kg/ha of fertilisers, which is much lower
widely across states and crops. The efforts to than the recommended level. Therefore, there
raise the seed replacement rate need to be is a need to have two-pronged strategy, one to
redoubled, as this is the foundation for monitor districts with high intensity of
accelerating productivity growth. consumption and take corrective actions to
reduce environmental degradation and on the
4.26 There is also urgent need to check the other hand to promote fertiliser consumption in
supply of spurious seeds by many companies low-use districts to improve crop productivity.
by improving governance of regulatory bodies,
and also keep an eye on the monopoly 4.31 Fertiliser use in most parts of the
practices of seed companies, if any. country is highly concentrated towards
nitrogenous fertiliser and imbalance in use of
Fertilisers fertiliser is observed almost everywhere. This
imbalance in use of plant nutrients and neglect
4.27 Chemical fertilisers have played a vital of micro nutrient deficiencies in Indian soils has
role in the success of India's green revolution led to declining fertiliser response and
and consequent self-reliance in food-grain deterioration of soil health. The extent and
production. However, the association between nature of the problem differ in different parts of
fertiliser consumption and foodgrains the country. This needs to be addressed by
production has weakened during the recent designing appropriate products and by
years due to imbalanced use of nutrients and rationalising subsidies on fertiliser.
deficiency of micro-nutrients, which demands a Implementation of the new policy of nutrient
careful examination and policy action. based subsidy which has now been announced
is likely to provide price incentive for balanced
4.28 After a stagnation for five years the per use of fertilisers.
hectare fertiliser consumption in the country has
shown a consistent increase during the last four 4.32 Fertiliser subsidy has lately risen very
years (from 130kg/ha during 2004-05 to around fast partly due to increases in fertiliser
175 kg in 2008-09). However, there are large consumption and partly due to increase in per
inter-region, inter-state, and inter-crop unit subsidy element. Fertiliser subsidy as a
variations on fertiliser consumption in India. ratio to the value of crop output, which hovered
between 3 to 3.5 per cent during 2000-06 has
4.29 Almost the entire increase in risen to 4.8 per cent in the year 2007-08, and
consumption of fertiliser in the recent years was to more than 10 per cent in 2008-09 due to a
met from import as domestic production has spike in the price of imported fertilisers(see
been almost stagnant or even declined in some annexure IV). Since a major reason for high
years since 2002-03. Imports of fertilisers, fertiliser subsidy has been the constant
which accounted for about 10 per cent of nominal prices for a long period of time, any
consumption in 2002-03 now account for more correction in this respect will have to be gradual
than 40 percent (see annexure III). This keeping in view its impact on the fertiliser use
increasing dependence on imports necessitates and profitability of farmers. However, it must

 
68 Mid-Term Appraisal of the Eleventh Plan

also be acknowledged that during the last five 2003-04 is welcome but it is small compared to
years, the MSP of wheat and rice have gone up the increase in public and private investments
by more than 50 per cent, but the urea price witnessed after 2003-04. This increase in
has remained constant for the farmer. As a public investment in agriculture, more than
policy correction, it would be better to link the 80per cent of which is in irrigation, should have
price of fertilisers with the MSP of wheat, rice resulted in sizeable increase in area under
and sugarcane, the three crops which use irrigation. However, despite large increase in
much of the fertilisers. From 2010-11, the public investments, net irrigated area under
Government of India has decided to introduce canal irrigation did not increase at all. It appears
nutrient-based subsidy regime wherein the that additional area brought under irrigation by
subsidy of fertilisers other than urea will remain new projects is offset by decline in existing area
fixed based on the nutrient composition and the not receiving irrigation. There are reports from
retail prices of fertilisers will be decided by the the field that many distributaries linked to old
manufacturers / importers. To safeguard the canals are running dry and not providing any
interests of farmers, the Government will irrigation; and that the money is going to
intervene in a manner to keep farm gates prices several hundred uncompleted projects, and will
of these fertilisers as far as possible near the bear fruit only in due course when some of
current prices while allowing a small increase in them get completed. In order to accelerate
urea prices, which will remain controlled. growth in agriculture as well as bring about
stability in agri-growth the following policy
Irrigation and Watershed Development changes are called for in this mid-term review.

4.33 Area under irrigation remained stagnant Watershed Development

for five years between 1998-99 and 2003-04,
but increased by over 4 million hectares in the Path-breaking Initiatives of the Eleventh
next three years for which data is available. Plan
This has raised the percentage of irrigated net
sown area from 40 per cent to 43 per cent. 4.35 Towards the end of the Tenth Plan
(Table 4.7) period, watershed development was poised for
a new beginning. The Technical Committee on
4.34 The increase in irrigated area after Watershed Programmes in India (Parthasarathy

Table 4.7 : Net irrigated area under various sources

(Million hectare)

Year Canals Tanks Tube- Other Other Total Net NSA

Wells Wells Sources Sown irrigat
area ed per
cent
1997-98 17.397 2.597 19.68 12.431 3.106 55.211 141.95 38.89
1998-99 17.311 2.795 21.394 12.606 3.329 57.435 142.76 40.23
1999-00 17.045 2.540 22.053 12.593 2.912 57.143 141.06 40.51
2000-01 15.965 2.455 22.569 11.26 2.885 55.134 141.36 39.00
2001-02 15.266 2.191 23.241 11.731 4.359 56.788 141.41 40.16
2002-03 14.042 1.804 23.479 10.66 3.667 53.652 132.59 40.46
2003-04 14.413 1.914 24.514 11.612 4.292 56.745 140.94 40.26
2004-05 14.649 1.725 23.063 11.834 7.546 58.817 141.07 41.69
2005-06 15.284 2.080 23.419 11.648 7.447 59.878 141.81 42.22
2006-07 15.351 2.044 24.056 11.853 7.554 60.858 140.29 43.38
Source: DAC, Ministry of Agriculture
 Agriculture   69

Committee) set up by the Ministry of Rural ix. Creation of a national authority for rain fed
Development submitted its report in January areas, which would be a quasi-
2006. The report contains a comprehensive independent authority to manage the
review of the programme, the lessons that watershed programme, endowed with the
emerge from the experience of the previous two autonomy and flexibility to respond
decades and provides a road map for the next innovatively to local needs, with clear
generation of watershed projects. The report accountability for performance. The
highlights the fact that for the first time since the proposal was for setting up a totally new
mid-sixties, the 1990s witnessed a rate of professional and outcome-oriented
growth of foodgrain production that was lower organisational structure geared to meet
than the rate of growth of population. It these requirements.
suggests that while irrigated agriculture appears
to be hitting a plateau, rainfed farming has 4.37 The National Rainfed Areas Authority
suffered neglect. Without developing the (NRAA) was subsequently set up in November
productivity of rainfed agriculture, it would be 2006. The NRAA in coordination with the
difficult to meet food security demands of the Planning Commission issued a new set of
year 2020. An increased thrust to rainfed areas Common Guidelines for Watershed
through greater emphasis on a reformed Development Projects in February 2008, which
watershed programme may hold the key to are applicable to all watershed development
meeting this challenge. projects in all Departments/Ministries of the
government. These guidelines have many
4.36 Drawing upon the lessons of the last remarkable features which draw upon the
two decades, the Parthasarathy Committee reforms suggested by the Parthasarathy
outlines the key reforms to be carried out in the Committee. These include:
watershed programme. These include
4.38 Delegating Powers to States: States are
i. Dedicated full-time implementation now to be empowered to sanction and oversee
structure run by professionals, especially the implementation of watershed projects within
at the district-level and below the parameters set out in these guidelines
ii. A 3-phase programme, which includes an
initial Preparatory Phase of 2 years 4.39 Dedicated Institutions: There would be
focused on building local capacities and dedicated implementing agencies with multi-
institutions that would run the programme disciplinary professional teams at the national,
in the subsequent years state and district level for managing watershed
iii. Central emphasis on Capacity Building, projects. A dedicated State Level Nodal Agency
involving the best available expertise from (SLNA) will be constituted by the State
the voluntary sector Government with an independent bank account.
iv. Recognising Local Institution Building as a The SLNA will sanction watershed projects for
key activity under the programme the State on the basis of approved state
v. Much greater emphasis on monitoring, perspective and strategic plan as per procedure
evaluation, learning and social audit in vogue and oversee all watershed projects in
vi. Building a livelihoods perspective into the the state within the parameters set out in these
programme from day one rather than as an Guidelines.
afterthought at a late stage, with special
emphasis on the interests of asset-less 4.40 In districts covering at least 25,000 ha
families under watershed projects, a separate dedicated
vii. Enhancing the per hectare norm to Rs. unit, called the District Watershed Development
12,000 from the prevailing Rs. 6,000. Unit (DWDU) will be established at the district
viii. Watershed works to be carried out on level, which will oversee the implementation of
clusters of micro-watersheds from 4,000 to the watershed programme and will have
10,000 ha rather than the earlier 500 ha separate independent accounts for this
micro-watershed. purpose. The DWDU will be a separate unit
with full time Project Manager and 3 to 4

 
70 Mid-Term Appraisal of the Eleventh Plan

subject matter specialists on Agriculture, Water the partners of the states in the capacity
Management, Social Mobilisation and building effort.
Management & Accounts. The Project • Monitoring and Evaluation: For the first
Manager, DWDU could be a serving time a separate allocation of 1per cent
government officer on deputation or recruited each has been made for monitoring and
from the open market by means of a evaluation, to infuse the programme
transparent process. The Project Manager, with quality.
DWDU will sign a contract (for a period not less • Smoother Release of Funds: To reduce
than three years) with SLNA that will spell out needless delays in implementation, the
well-defined annual goals, against which his/her instalments for fund release will only be
performance will be consistently monitored. three compared to seven and five in the
Similar professional arrangements are earlier programmes.
envisaged at the watershed level.

4.41 Duration and Phasing of the 4.43 New watershed projects were to be
Programme: The project duration has been implemented in accordance with these
enhanced to 4-7 years, spread over three Common Guidelines with effect from 1st April
distinct phases viz., preparatory phase, works 2008. In January 2008, for the first time, a
phase and consolidation phase. Secretary was posted in the Department of
Land Resources. In February 2009, the Desert
4.42 Livelihood Orientation: Productivity Development Programme (DDP), Drought
enhancement and livelihoods will be planned to Prone Areas Programme (DPAP) and the
promote farming and allied activities for local Integrated Watershed Development
livelihoods while ensuring resource Programme (IWDP) were merged into the
conservation and regeneration. The new Integrated Watershed Management Programme
approach would systematically integrate (IWMP). A cost norm of Rs. 12,000 per ha was
livestock and fisheries management as a focal adopted for the IWMP in line with the
intervention, among others. A special allocation recommendations of the Parthasarathy
of 10 per cent of project costs has been made Committee. For hilly and difficult terrains the
for livelihood activities for asset-less families norm is Rs.15,000 per ha. The Eleventh Plan
and 13 per cent for production systems and provided an outlay of Rs. 15,359 crore for
micro-enterprises IWMP and Rs. 3,095 crore (at 2006-07 prices)
for the Rainfed Areas Development Programme
• Cluster Approach: Clusters of micro- of the Ministry of Agriculture. In addition, there
watersheds of average size of 1,000 to are the huge possibilities of convergence with
5,000 hectares will be the unit of the NREGS, whose primary focus is on
intervention. Smaller size projects will watershed-related activities. Thus, there has
be sanctioned in the hilly/difficult terrain been a massive hike in outlays compared to the
areas. past (Ninth Plan Rs. 2,179 crore and Tenth
• Institution Development and Capacity Plan Rs. 8,256 crore). Indeed, the Eleventh
Building: A separate provision of 5per Plan outlay is nearly as much as the entire
cent has been made for local institution expenditure on watershed programmes since
development and capacity building and their inception in India.
training of all functionaries and
stakeholders. Local institutions include Performance Review and the Way Forward
the watershed committee, self-help
groups and user groups which will all 4.44 Given these ambitious objectives , the
function under the purview of the Gram performance so far has been most
Panchayat and Gram Sabha. The disappointing. Till 31 August 2009, an
Common Guidelines also provide a expenditure of nearly Rs. 5,000 crore had been
roster of outstanding training incurred during the Eleventh Plan period but
organisations in India with a proven this was entirely on old projects. No watershed
track record of excellence who would be projects under the new IWMP had been
 Agriculture   71

sanctioned till then. There are still about 16,744 Phase of the IWMP has to have any meaning.
ongoing projects at various stages of Especially the emphasis on and special
completion, which have been unduly delayed allocation for Institution Building requires a
on one count or the other. This poses a serious radically new approach to social mobilisation
question over where the massively raised that has been absent in most watershed
outlays for the new IWMP in the Eleventh Plan projects so far and demands partnerships with
are going to be spent. What is even more institutions who have experience in this activity.
worrisome is that the steps that need to be Indeed, these institutions will need to be
taken to actualise the potential inherent in the deployed to develop many other Master Trainer
new guidelines have yet to be put into place. Organisations (MTOs) specially dedicated to

Finalised R&D Packages

Support
R&D Initial R&D Voluntary Grassroots
Institutions inputs Organisation Partners
(SVO)
Universities •Empowerment
•Field support
Technical
Consultants
Communities Grassroots
Partners

Feedback
4.45 The increase in the duration of the this task if this massive national effort has to be
programme owes mainly to its emphasis on a) brought to a successful conclusion. A model in
institutional development and capacity building; this regard is the multiplier-upscaling Support
b) monitoring and evaluation and c) a Voluntary Organisation (SVO) concept
livelihoods orientation from the start of the pioneered by CAPART in the 1990s. SVOs will
programme. Each of these are quality and need to be identified in each state and each
process-oriented activities, which demand a SVO will need to develop at least one MTO in
whole series of initiatives and partnerships to each district for proper upscaling without
be put into place. For one, major partnerships compromising on quality.
have to be built with not only those
organisations already listed in the Common 4.46 Similarly, empanelment of credible
Guidelines but many others who can play a institutions from academia and the voluntary
crucial role in the national capacity building sector for monitoring, evaluation and social
effort required for the watershed programme. audit is necessary to infuse the programme with
None of this has been done so far, but is accountability and quality. The special financial
absolutely vital if the expanded Preparatory allocations for each of these activities will lose

 
72 Mid-Term Appraisal of the Eleventh Plan

all meaning if we continue with business-as- credit to agriculture sector within a period of
usual. Finally, the differentia specifica of the three years. The actual disbursement by banks
new IWMP approach is its emphasis on exceeded the targets. For the years 2007-08, a
livelihoods, especially for asset-less families. target was fixed for Rs. 2,25,000 crore
This requires a complete reorientation way disbursement by banks, while adding 5 million
beyond the merely engineering thrust of most farmers to their portfolio. As against this, all
watershed projects. There are many banks (including cooperative banks and
government and non-government organisations Regional Rural Banks) disbursed Rs. 2,54,657
in India who have done pioneering work in this crore forming 113 per cent of the target. During
regard. The DoLR will need to facilitate 2007-08, 7.5 million new farmers were
partnerships of each state government with financed by commercial banks and RRBs. For
carefully selected institutions to carry this the year 2008-09 the target was kept at the
process forward with momentum. level of Rs. 2,80,000 crore against which the
amount disbursed is placed at Rs. 2,92,437
4.47 Ideally, of course, these functions crore The flow of credit has been facilitated to
should be the role of the NRAA. Unfortunately a large extent by the Kisan Credit Cards (KCC)
NRAA continues to face a number of teething scheme introduced in 1998-99. Till November
problems which have prevented it from 2009, a total of 878.3 lakh KCCs have been
performing to full potential. While the NRAA has issued by the banking system with the amount
undertaken a number of useful studies in its sanctioned aggregating to Rs. 3,81,070 crore.
short tenure, it is yet to play the kind of The public sector banks have been formulating
overarching role of guidance to the watershed Special Agricultural Credit Plans (SACP) since
programme that was visualised at its inception. 1994-95 with a view to achieving distinct and
Part of the difficulty is administrative, it has not marked improvement in the flow of credit to
had full co-operation with implementing agriculture. Under SACP, the banks are
ministries. But part lies with the human required to fix self-set targets showing an
resource profile of the NRAA which althuogh increase of about 20 to 25 per cent over the
multi-disciplinary does not have the full disbursements made in the previous year. The
complement of the disciplines and has so far SACP mechanism was also made applicable to
unable to rise to the expectations of giving private sector banks from the year 2005-06.
intellectual leadership demanded by an
ambitious, inter-sectoral and inter-disciplinary 4.50 The government has been providing
program like watershed development. relief of two percentage points in the interest
rate on the principal amount up to Rs. 1 lakh on
4.48 There are some difficulties with the each crop loan granted by commercial banks
Common Guidelines as well. A reform-oriented during Kharif and rabi of 2005-06. With effect
document places needless and quite arbitrary from Kharif 2006-07, interest subvention is
restrictions on the choice of the Project being provided at the rate of 2 per cent per
Implementing Agency (PIA). Despite it being a annum to Public sector banks, Regional Rural
well-established fact that voluntary Banks and rural cooperative credit institution in
organisations have done some of the best work respect of short-term production credit up to Rs.
under the watershed programme, the guidelines 3 lakh provided to farmers. Government of India
mark them out for the harshest conditions, had provided Rs. 1100 crores for reimbursing
restricting their role in a somewhat capricious the claims submitted by Banks in this regard.
manner. The sooner these restrictions are lifted, This subvention is available on condition that
(even while maintaining the strictest scrutiny of the banks make available short-term credit at
all PIAs), the better. ground level at 7 per cent per annum.

Agricultural Credit 4.51 The Government also decided to

provide additional subventions, as a one time
4.49 Financial inclusion is vital for growth to extension (April 1 2007 to June 30 2007) in
be inclusive. The Union Finance Minister had respect of those farmers/borrowers in the
on 18 June 2004 announced doubling of flow of Vidarbha region, who could not repay on the
 Agriculture   73

due date, i.e. 31 March 2007 but repaid or banks, besides RRBs and cooperative credit
would repay before 30 June 2007. The institutions. The scheme covered direct
extended subvention up to 30 June 2007 agricultural loans extended to “marginal & small
covered repayment of Kharif loans. The 2 per farmers” and “other farmers” by SCBs & RRBs,
cent subvention scheme for short term crop cooperative credit institutions (including urban
loans is being continued for the years 2007-08 cooperative banks) and local area banks.
and 2008-09.
4.53 There is steady progress in formation
4.52 A scheme of agriculture debt waiver of the Self Help Groups. Under the SHG bank
and debt relief for farmers with the total value of linkage programme, as on 31 March 2009,
overdue loans being waived estimated at Rs. 61,21,147 SHGs held saving bank accounts

BOX 4.1
ACCELERATING AGRICULTURAL GROWTH BY INCREASING
GROWTH IN CROP SECTOR: RECOMMENDATIONS
• Raise public expenditure on agri-R&D to 1 per cent of agri-GDP, re-energise the public institutions
(especially SAUs) with adequate funding and commensurate institutional reforms to incentivise the
research system, including ICAR institutions.
• The success of Bt cotton and hybrid maize in the last 6-7 years, primarily driven by the private
sector, should encourage policy makers to create greater space for the private sector in technology
generation and diffusion. Leading agri-companies (domestic and foreign) should be invited to
establish a top notch Centre of Excellence for agri-technology, extension and agri-business
management, of international standards to tap the potential of the country in new technologies
(especially bio-technology, including transgenics), to be developed and released under the
Regulatory Authority System of the country, ensuring and adhering to bio-safety norms. The
objective should be to make India as a regional hub for technology generation and diffusion.
Innovative models of PPP in extension and seed multiplication should be scaled up fast with due
government support.
• Higher investment in irrigation of all types, from check dams and watersheds to drips and
groundwater “banking” (recharging) to medium and large scale storages and irrigation schemes.
The current allocations are much lower than the need of more than 300 major and medium
irrigation projects waiting for completion; but investments must be transparent and accountable to
scrutiny, ensuring commensurate outcomes in terms of increase in irrigated area.
• In order to raise resources for investments in agri-R&D and irrigation etc, and to promote
efficiency, rationalise and contain the subsidy regime. Fertiliser subsidy should be on nutrient
basis, and if possible, directly to farmers. If this is not feasible, flat rate per unit subsidy on
fertilisers produced should be given to fertiliser plants, abolishing the Retention Price Scheme, and
freeing the fertiliser industry from price controls, and opening the fertiliser imports private sector at
low import duty.
• Incentivise states to carry out institutional and pricing reforms in water and energy to promote
efficiency in their usage. This can be done by innovating a scheme of “water and power credits” to
states for reforming their water and power sectors showing clear savings.
• Impose an export tax of say 5-10 per cent on exports of sugar and common rice to discourage
exports of “virtual water”; and to keep the imports of sugar and rice open at low tariffs, say 0-10 per
cent.

50,000 crore and a onetime settlement (OTS) with total saving of Rs. 5,545.6 crores as
relief on the over due loan at Rs. 10,000/- crore against 50,09,794 SHGs with saving of Rs.
was announced in the Union Budget, 2008-09, 3,785.39 crores as on 31 March 2008 indicating
for implementation by all scheduled commercial

 
74 Mid-Term Appraisal of the Eleventh Plan

growth of 22 per cent and 46 per cent speedy settlement of claims etc. WBCIS was
respectively. implemented in Kharif 2007 and Rabi 2007-08
and is being continued since then. To make the
4.54 The Credit Cooperative with its scheme competitive, premium actually charged
significant presence in the rural areas have an from farmers have been restricted to at par with
important role; but all the States have still not NAIS. The difference between actuarial rates
implement in full the short-term credit and premium actually paid by farmers are borne
cooperative reforms suggested by the by the Government (both Centre and State
Vaidyanathan Committee and approved by the concerned). To provide competitive service to
Government. It has been reported that 25 the farmers, private insurance companies such
States and Union Territories have accepted the as ICICI-Lombard and IFFCO-TOKIO General
reforms suggested by the Vaidyanathan Insurance Companies besides Agriculture
Committee and have signed the MoU with the Insurance Company of India (AIC) have also
Government of India and NABARD to been involved for implementation of the scheme
implement the reforms. Of these States / UTs, which is still in its early days. In Kharif 2008,
14 have amended their respective co-operative ten states were covered. About 1.4 lakh
acts to carry forward the reforms. farmers with 1.87 lakh hectares of crop area
were insured for a sum of Rs. 309 crore
4.55 Therefore, despite the achievements, generating a premium of Rs. 31.5 crore
there is still strong presence of money lenders (including subsidy farmers share of premium is
in the rural credit markets charging exploitative Rs. 11.82 crore).
interest rates and a key challenge continues to
be the outreach of institutional credit especially Agricultural Marketing
to small and marginal farmers.
4.58 The Department of Agriculture and
Risk Management Cooperation had formulated and circulated a
Model Agricultural Produce Marketing
4.56 Appropriate strategies are required for Committee (APMC) Act in 2003 on marketing of
agricultural risk mitigation and management agricultural produce for guidance and adoption
particularly in view of the increased by the State Governments. The model
capitalisation of farming and enhanced legislation provides for establishment of Private
perceived risk due to climate change. The Markets/Yards, Direct Purchase Centres,
National Agricultural Insurance Scheme (NAIS) Consumer and Farmers Markets for direct sale
introduced during Rabi 1999-2000 at present is and promotion of Public Private Partnership in
being implemented in 25 States and 2 Union the management and development of
Territories. During the last 17 crop seasons (i.e. agricultural markets in the country. The Act also
from Rabi 1999-2000 to Rabi 2008-09), 1347 provides for constitution of State Agricultural
lakh farmers have been covered over an area Produce Marketing Standards Bureau for
of about 210.09 million hectares insuring a sum promotion of Grading, Standardisation and
amounting to about Rs. 1,48,250 crore under Quality Certification of agricultural produce.
the scheme. In view of the nature of the This would facilitate pledge financing, direct
scheme it may be taken up as non-plan purchasing, forward and future trading and
programme with larger coverage of farmers. exports.

4.57 A Pilot Weather Based Crop Insurance 4.59 Twenty fives States Union Territories
Scheme (WBCIS) intended to provide have amended their APMC Acts/made varying
insurance protection to the farmers against provision for the purpose while other states are
adverse weather incidence, such as in the process of doing so. However the manner
deficit/excess rainfall, temperature variation in of implementation in most states reveals
the extreme, frost etc. which are deemed to serious weaknesses which discourage the
impact adversely the crop production. It has the entrance of new players. In many cases the
advantages such as minimising moral rules have yet to be notified. In some cases
hazards; lowering of administrative costs; permission for direct purchase from farmers is
 Agriculture   75

being given for a year at a time which is a address their priorities in agriculture through
clear discouragement to anyone wishing to these new programs, even as the older, more
undertake a sizeable investment. structured schemes were continued.

4.60 Development of Agricultural Marketing Rashtriya Krishi Vikas Yojana

Infrastructure, Grading and Standardisation is a
Central Sector credit linked back-ended subsidy 4.62 The RKVY in particular has been well
scheme for strengthening and development of received, especially for its flexibility in giving
marketing infrastructure. An allocation of States the power to choose interventions and
Rs.380 crores has been made under this set targets. However, there are reservations
scheme during Eleventh Five Plan, aganist regarding the highly complex and detailed
which expenditure during the first four years of planning process and the size of funding
the Eleventh Plan is likely to be Rs.413 crores. compared to requirements assessed. While
anecdotal evidence of early successes is
Performance of Centrally Sponsored available, a detailed impact assessment of the
Schemes (CSS) scheme will have to undertaken soon to allow
for further experience and learning.
4.61 CSS are the main instruments of
promoting growth in agriculture, covering the 4.63 Judged by the allocation made by the
entire gamut of activities ranging from land and States to agriculture and allied sectors during
water resources development, seed production, the past three years, the objective of Rashtriya
extension, crop production, soil health, Krishi Vikas Yojana (i.e. to incentivise States
mechanisation and post-production issues. into making higher expenditure on agriculture
While most of the CSS of the Department of and allied sectors) seems to have been
Agriculture and Cooperation are under achieved to some extent. More specifically we
implementation for at least the last two Plan have States like Manipur (2.5 per cent), West
periods in one form or another, a major initiative Bengal ( 3.2 per cent), Punjab (2.8 per cent),
to assist the States through substantially Rajasthan (3.8 per cent), Jammu & Kashmir
increased outlays in this sector was launched at (3.4 per cent), and Goa (3.8 per cent) which
the beginning of the current Plan. Releases have made an average allocation of less than 4
made under some of the major Centrally per cent to agriculture and allied sectors during
Sponsored Schemes are give at Annexure II. the past three years ( 2007-08 to 2009-10) i.e.
Two major new schemes, the National Food since inception of RKVY. On the other hand
Security Mission (NFSM) and the Rashtriya there are States like Himachal Pradesh ( 11.1
Krishi Vikas Yojana (RKVY) were introduced per cent), Nagaland ( 9.7 per cent),
during 2007-08 to provide the States with Uttarakhand ( 9.8 per cent), Meghalaya ( 9.7
additional resources on 100 per cent grant per cent), Mizoram ( 8.3 per cent) and Tripura (
basis. Most importantly, States were given the 10.9 per cent) which have been making high
freedom (especially in the case of RKVY) to average expenditure on agriculture and allied

Table 4.8
Share of Expenditure on Agriculture and Allied Sector by States (excluding UTs)
in state plan outlay
(Rs. in crore)
Sl.No. Year Share of Agriculture and Allied
Sector in actual expenditure
1 2004-05 5.48
2 2005-06 4.90
3 2006-07 5.22
4 2007-08 5.76
5 2008-09 6.34
6 2009-10 (RE)/Approved Outlay 5.87

 
76 Mid-Term Appraisal of the Eleventh Plan

sectors in the past three years. interactions, meetings and visits to the States to
guide preparation of C-DAPs. However, the
4.64 The combined status of expenditure by States have not been overly enthusiastic with
all states (excluding UTs) to agriculture and the idea of pre-paring C-DAPs. The status of
allied sector during last five years is given in formulation of C-DAPs, as obtained from DAC,
Table 4.8, and the status in respect of each in various districts and states is given in
state is given in Annexure-I. Annexure- V. It shows C-DAPs for 535
districts out of 626 districts and SAP for 11
4.65 Based on the representations made by States have been prepared in the country. But
States at various fora, it may be desirable to different states are at different levels in
revisit the formula of RKVY for allocation of adopting guidelines and preparing a quality C-
funds to states. These are as follows: DAPs.

i) Punjab and Tamil Nadu would like that 4.67 For the process to be in a participatory
due weightage be given to the and have a bottom-up approach requires two
percentage of irrigated area in the main criteria a) information collection for
State. This refers to Parameter I that preparation of C-DAPs should start from these
gives weightage up to 20 per cent of the Gram Sabhas in villages as they are basic units
allocation to un-irrigated areas. The of planning, and b) Plans for each local body
contention of States like Punjab and (LB) need to be prepared, discussed and
Tamil Nadu on this score is that RKVY integrated in the plan of upper Local Body.
is looked upon as a source of additional States like Madhya Pradesh, Uttarakhand,
availability of funds to boost activities Kerala, Tripura, Punjab, and West Bengal have
for agriculture development by way of adopted the approach to some extent while
supplementing the already available others are still dragging their feet in this regard.
strong net work of water input available
in the form of irrigation. 4.68 Comprehensiveness and convergence
was the other important objective of C-DAP
ii) States like Himachal Pradesh,
preparation. Madhya Pradesh, Uttarakhand,
Uttarakhand and others have been
Haryana, Andhra Pradesh, Himachal Pradesh
steadfastly making high allocation to
has achieved this objective to some extent. But
agriculture and allied activities during
convergence of non-governmental programmes
the past three years. The percentage of
has been invariably omitted by the states.
allocation to agriculture & allied sectors
in these states has always been more
4.69 Efforts are continuing to improve the
than 10 per cent. These States point
quality of C-DAPs and bring uniformity in
out that it would be difficult to allocate
approach through out the country. Agro
higher allocations each year to
Economic Research Units (AERUs) viz Institute
Agriculture & Allied Activities sacrificing
of Economic Growth (IEG), New Delhi,
the equal demands of other sectors
Agricultural Development and Rural
regarded as priority sector in the State.
Transformation Centre (ADRTC), Bangalore
and Institute of Development Studies (IDS),
Comprehensive-District Agriculture Plans
Jaipur have been entrusted with the task of
(C-DAPs)
peer review of the C-DAPs prepared by the
states. Peer review for 27 C-DAPs of districts
4.66 It was expected that RKVY would draw
has been completed, for others it is in progress
out realistic District/State Agriculture Plans. A
(AnnexureVI). In addition MANAGE, Hyderabad
manual on guidelines for preparation of C-DAPs
has joined hand in giving training to officers
was developed and provided as a technical
involved in preparation of C-DAPs and SAP in
support to states. It was circulated to all the
the States. In September 2009, MANAGE
districts/states. A financial assistance of Rs. 10
arranged workshop at Hyderabad for
lakh per district was provided to the states to
Karnataka, Tamil Nadu, Kerala, Chhattisgarh
facilitate preparation of C-DAPs. This effort was
and Andhra Pradesh. It also arranged a
further supplemented by organising workshops,
 Agriculture   77

workshop at Lucknow exclusively for Uttar under NFSM relate to demonstration of

Pradesh during November 2009. improved production technology, distribution of
High Yielding Variety (HYV) seeds and,
4.70 A good C-DAP is sound in consitutional popularisation of newly released varieties,
as well as technical aspect. The consitutional support for micro nutrients, gypsum, zero
aspect emphasises on participatory bottom up tillage, rotavators, conoweeders, seed drills,
approach taking ‘Gram Sabha as a basic unit Integrated Pest Management (IPM), Integrated
for planning. The technical aspect demands Nutrient Management (INM), extension, water
comprehensiveness in respect of district’s lifting and moisture saving devices, training and
potential, problem, needs, their prioritisation mass media campaign. This scheme is being
and so on; convergence and a good write-up of implemented in 312 districts of 17 states viz.,
the document based on appropriate data and its Andhra Pradesh, Assam, Bihar, Chhattisgarh,
analysis. Technical Support Institutes were to Gujarat, Haryana, Jharkhand, Karnataka,
play a major role in this aspect. States like Kerala, Madhya Pradesh, Maharashtra, Orissa,
Assam, Madhya Pradesh, and Himachal Punjab, Rajasthan, Tamilnadu, Uttar Pradesh
Pradesh could do comparatively better in this and West Bengal.
regard.
4.72 NFSM has also been generally well
received by the States. While the design and

BOX 4.2
SOME FINDINGS OF PEER REVIEW OF C-DAPs
 
Peer Review of C – DAP Indicates that : 

¾ The states vary  greatly in following the C‐ DAP guidelines with respect to a) bottom up 
participatory approach, b) comprehensiveness c) convergence, and d) write‐up 
¾ Institutionalisation  & Operationalisation of C‐ DAPS is still partial 
¾ Participatory approach:  Assam, Kerala, Tripura, MP, Rajasthan, UP & Punjab made efforts in 
this regard. HP, West Bengal & Karnataka adopted selective participation. 
¾ States were not overly enthusiastic to prepare C‐ DAPs. Techincal Support Institutes were 
mostly used to prepare C‐ DAPs rather than to use them as facilitators. 
¾ Majority of States focused C‐ DAP on RKVY programme. All programmes were not converged. 
Non‐ governmental efforts were invariably not accounted for. 
¾ Most importantly there is still very little awareness among farmers regarding C‐ DAPS 

National Food Security Mission (NFSM) implementation of NFSM have received an

overall positive response from the States, the
4.71 The National Food Security Mission is a specific choice of districts has been contested
new centrally sponsored scheme, which was by many states suggesting the potential
launched starting with Rabi 2007—08. This success of NFSM could have been higher if the
scheme included three components viz. NFSM- States were given a greater say in choosing the
Rice, NFSM-Wheat and NFSM-Pulses. The site of the scheme’s interventions. The varieties
main objectives of the NFSM are to increase supplied were almost the same as those being
production of rice, wheat and pulses through popular earlier and many States have asked for
area expansion and productivity enhancement flexibility in extending the scheme to other
in a sustainable manner in certain identified districts.
districts of the country. The major interventions

 
78 Mid-Term Appraisal of the Eleventh Plan

4.73 It was reported that the production of Chief Secretary, with representation from the
wheat has increased from 71.27 million tons at Planning Commission and Ministry of
Triennium Ending (TE) 2006-07, the terminal Agriculture, is considered by the States as an
year of the Tenth Plan to 80.28 million tons in effective method of implementing all CSS. A
2009-10. The production of rice has increased similar flexible, decentralised arrangement
from 89.42 million tons for TE 2006-07 to 99.18 needs to be examined for adoption in respect
million tons in 2008-09 before declining to 87.56 other CSS.
million tons in 2009-10 due to drought. The
production of pulses has also increased from 4.76 The pattern and methodology of
13.57 million tons for TE 2006-07 to 14.74 releasing financial assistance by MoA to the
million tons in 2009-10. This mission has States also needs to be more efficient. Norms
helped to widen the food basket of the country for certifying expenditure need to be made
with significant contributions coming from the more efficient. Despite some tentative
NFSM districts. The increase in seed beginnings, paperless, electronic reporting and
distribution reportedly ranges from 43 per cent certification of expenditure has not become the
in Rajasthan to as high as 10 times in Bihar. In norm, with most States still dispatching hard
pulses also the increase in improved seed copies of utilisation certificates. As a result of
consumption ranged from 29 per cent in these process related bottlenecks, a large
Rajasthan to more than 400 per cent in percentage of funds meant for CSS is being
Chhattisgarh. From the year 2009-10, nearly 80 released in the last quarter of the financial year,
per cent of the pulses have been brought under and in fact, even as late as the month of
NFSM. March. It is a known fact that State
Governments keep a tight leash on expenditure
4.74 An area of concern is the sketchy
during this period leading to the end of the
nature of baseline data for both NFSM and
financial year and each withdrawal has to be
RKVY projects and the weak monitoring and
cleared by the State Finance Departments.
evaluation (M & E) systems in the States to
Considerable unspent amounts are thus being
track the performance of these major
carried over into the next financial year and
interventions. Lack of strong benchmarking
States have to seek revalidation of these
data and a common M & E system across
monies from MOA to be able to use them, an
States will reduce feedback on these
exercise that can stretch till the end of the first
programmes to expenditure statements and
quarter of the new financial year (i.e. 30 June).
physical inventories consumed. This output,
while necessary for budget controllers, will miss
4.77 There appears to be a disconnect
the outcomes of these schemes, and to that
between overarching strategic goals for the
extent leaves us poorer in understanding of
agriculture sector at the State level and the
how they worked and, no less important, in
linking of interventions (both under CSS and
whose favour.
supported by State funds) to the achievement
Centrally Sponsored Schemes - Some of these strategic goals. Further the States do
General Issues not have a clear targeting strategy. Ministry of
Agriculture can help the States and Union
4.75 The mechanism of the State Level
Territories, to define certain clear strategic
Sanctioning Committee (SLSC) created for
goals for agriculture and prepare a choice of
clearing RKVY projects, which is chaired by the
Table 4.9
Per hectare value of output from different crop groups, 2007-08.
Crop Group Output per Ratio of productivity of crop group to
hectare (Rs.) average of crop sector
Pulses 13,061 0.39
Cereals 19,498 0.58
Oilseeds 25,901 0.77
Cotton 33,977 1.01
Sugarcane 66,061 1.96
F&V 122,657 3.63
All Crops 33,754 1.00
Source: Basic data from NAS and Agricultural Statistics at a Glance.
 Agriculture   79

tactical interventions to achieve these goals. sources of growth have to come mainly from
This can be followed up with greater support, non-grain sector, which have to grow at much
especially in the field of capacity building for higher rate than 4 per cent. This is also well
monitoring and evaluation and project recognised and spelt out in the Eleventh Plan
formulation (two areas in which States have document. After ensuring a stable growth rate
considerable gaps). The attempt should be to of 2.0–2.5 per cent per annum in foodgrains,
align the State’s own perception of its problems and building up adequate stocks the focus
and priorities with the choice of projects should be on diversification to augment farmers’
supported both through CSS (especially RKVY) income and to accelerate growth.
as well as with State budgetary funds.
4.80 Commercial crops like cotton have
4.78 A key assumption underlying Centrally displayed dramatic growth since 2002/03 (by
Sponsored Schemes is that Central financial more than 10 per cent p.a), doubling its
assistance can be efficiently channelled at the production and yields, and making India as the
State level through departmental functionaries second largest exporter of cotton (more than 8
to reach intended beneficiaries with minimum million bales) in 2007-08.
delay and without leakages. This would require
a combination of administrative, technical and Diversification to high value agriculture and
financial management capacity on the State farm incomes
side. Wherever necessary, new capacities
would have to be created to match higher 4.81 However, it is the high value segment
outlays to meet new responsibilities. Large staff (fruits and vegetables, livestock and fishery)
vacancies are known to exist in field cadres, that holds the key to future sources of growth in

BOX 4.3
IMMEDIATE ACTION POINTS TO STRENGTHEN FOODGRAIN SECURITY
• Significantly higher investments are needed in modern bulk handling storage of basic
foodgrains, preferably under the private sector or under PPP model. The current storage
capacity with state agencies is much lower than the stocks they often carry, leading to large
wastages (8-10 per cent); Re-assessment of optimal level of storage of foodgrains in the wake
of increasing volatility needs to be taken up on a high priority;
• Special focus group, including reputable agri-business leaders, on eastern India needs to be set
to harness groundwater to help raise rice, wheat and maize yields with a combination of
incentives and infrastructure investments.

especially in extension, in most of the large agriculture, given its higher expenditure
States, burdening existing personnel with new elasticity compared to food grains. This is also
challenges, even as training and a segment where a great deal of employment
computerisation of work processes remain for women is generated, especially in livestock,
weak areas of performance. and is dominated by small holders. Per hectare
productivity of major crop groups in the country
Future sources of growth in agriculture and ranges from Rs. 13,000 for pulses to Rs. 1.23
augmenting farmers’ incomes lakhs for fruits and vegetables (see table 4.9).
Shifts in crop pattern from low productivity
4.79 Food security at the national level crops to high productivity crops in value terms
remains a paramount concern of the offers vast scope for raising agricultural output
government and therefore growth in foodgrains and gross returns.
production must be a central focus of
policy.However, foodgrains account for less 4.82 The share of high value agriculture in
than 25 per cent of the value of output in total agriculture (crops, livestock and fisheries)
agriculture and allied sector. So the future has gradually increased over years and today it

 
80 Mid-Term Appraisal of the Eleventh Plan

accounts for more than half the value of NHM during the Eleventh Plan has been good
agriculture. This segment of agriculture is in area expansion, development of nurseries,
perishable in nature, and therefore needs a rejuvenation, IPM and adoption of organic
very different approach than has been the case farming. However, adequate attention to post
in foodgrains. It must be recognised that harvest management and market development
development of this high value segment of and processing has yet to pickup, and is the
agriculture will be possible only when it is weakest aspect of the NHM.
pursued as a demand led strategy, closely
linked to modern logistics, processing and NATIONAL HORTICULTURE MISSION
organised retailing, all as a part of one
integrated agri-system in the form of value 4.86 The Mission was launched in 2005-06
chains. with the objective to provide holistic growth of
the horticulture sector adopting end to end
4.83 With only about 5 per cent share in approach involving production, post harvest
total area under cultivation in the country, fruits management, processing marketing, capacity
and vegetable account for more than 25 per building and human resource development. It is
cent of value of output of crop sector, and about operative in 357 districts covered in 18 states
18 per cent of the total value of agriculture and 2 union territories. Under NHM a number of
output (including livestock and fisheries). crops such as fruits, cashew, spices, flowers,
Regional picture reveals that in North West medicinal and aromatic plants are covered.
Himalayan states and in West Bengal, Bihar Vegetable are covered for seed production,
and Orissa fruits and vegetables accounts for protected cultivation, INM/IPM and organic
more than 45 per cent of output of crop sector. farming. The approach is cluster based crop
development .This approach is meant to
4.84 With increasing per capita income, develop a production base not only for fresh
Indians are consuming more of fresh and consumption but also to provide raw material
processed horticultural products. Exports and for setting up of infrastructure for post harvest
imports of horticulture products are rising, management, processing and marketing.
although lately imports are rising faster than
exports. This indicates a growing scope of 4.87 The allocation and expenditure made
horticulture not only for exports but also for during 2007-08 to 2009-10 are given in Table
import substitution by improving crop 4.10. During the Eleventh Plan an allocation of
productivity and efficiency in the value chains. Rs. 3350 crores was made during the first three
years of the plan, which is about 35 per cent of
4.85 Several initiatives were taken in the the Eleventh Plan allocation leaving a large
horticulture sector during the Tenth Five Year unutilised amount for the remaining two years.
Plan. These include National Horticulture
Mission, Technology Mission for Integrated Table 4.10
Development of Horticulture in North East and Plan allocation and expenditure under NHM made
during 2007-08 to 2009-10
Northern Hill States, National Bamboo Mission
Year Outlay Expenditure
and a Central Institute of Horticulture. These (RE) (Rs. Crore)
and other programmes like National Horticulture ( Rs.
Board (NHB), Coconut Development Board Crore)
(CDB), Micro- irrigation, Development of Oil Eleventh 8809
Palm as a part of Technology Mission on Plan
Oilseeds were continued in the Eleventh Plan. 2007-08 1150 917.32
2008-09 1100 1010.49
Special focus on planting material, organic
2009-10 1100 800 (BE)
horticulture, protected cultivation, modern Total 3350 2727.81
methods of post harvest management, contract
farming, setting up of a central certification
agency and a planting material authority to take
care of good quality planting material was
proposed. In general the performance under
 Agriculture   81

Performance of the NHM 4.91 For better performance of NHM certain

aspects require greater attention. Some of
4.88 The targets for Eleventh Plan for some these are: including certain crops and activities
of the activities and achievements made during like pineapple and mushroom and activities like
the first three years in given in Table 4.11. high density planting, mechanisation, cool chain
management, GAP certification which was not
Table 4.11 kept in the original scheme, vigorous pursuit for
Physical Achievement of NHM (2007-08 to development of post harvest and market
2009-10)
infrastructure, more attention to trained
Activities Target Achievement
for 2007-08 to manpower at district level, modification in the
Eleventh 2009-10 guidelines of NREGS to include NHM activities;
Plan ensuring convergence at the department level
Area coverage (lakh ha) 9.93 12.15 with schemes like micro-irrigation, RKVY and
Establishment of nurseries 946 1523 watershed development programmesrural road
(No.) connectivity to NHM clusters etc convergence
Rejuvenation of senile 5.20 2.04
with programmes of Ministry of Food
orchards (lakh ha)
Protected cultivation (ha) 356.86 526.00 Processing Industries for processing of
IPM (lakh ha) 15.00 5.70 horticultural produce and value addition, and
Community tanks (No.) 2450 13,120.00 prioritising infrastructure needs to be linked with
Honey Bee colonies (lakh) 340 1.59 clusters being developed under NHM;
Whole sale market (No.) 15 8.00 convergence with programmes of the Ministry
of Commerce to promote coordinated
Rural markets (No.) 599 54.00 development of agri- export zones; with
National Medicinal Plant Board in respect of
4.89 There has been a positive impact of the development of medicinal plants; and with
programme resulting in 12.4 per cent increase Ministry of Railways to provide necessary
in area under horticulture and increase in yield wagon facilities at nearest railway heads of
of annual crops like banana, spices & production clusters.
vegetables resulting in increased availability of
horticultural produce. Many farmers are Technology Mission for Integrated
reported to have ventured into horticulture for Development of Horticulture in North-East
the first time due to NHM. Development of including Sikkim, J&K, H.P and Uttarakhand
nurseries under NHM has led to better access (TMNE)
to planting material of improved varieties.
Organic farming in horticulture is also gaining 4.92 The Centrally Sponsored TMNE
popularity. Investment on community tanks has scheme is operational since 2001-02 in the
improved water conservation and ground water eight NE states of Arunachal Pradesh, Assam,
recharge in some of the places. Manipur, Meghalaya, Mizoram, Nagaland
Implementation of NHM has also resulted in the ,Tripura. & Sikkim. During Tenth Plan (2003-
take off of the micro-irrigation scheme. 04) , the scheme was extended to other three
Himalayan states of J&K, H.P and
4.90 The Mission has not been able to get Uttarakhand, in addition to NE states making
adequate attention from the States to post the TMNE operational in 11 states. The TMNE
harvest management and market development. comprises of four Mini missions viz. MM-
As a result, processing has yet to pickup and is I(Research), MM-II(Production and
the weakest aspect of the NHM. While only 11 Productivity), MM-III(Post Harvest Management
states have taken initiative in establishing 109 and Marketing) and MM-IV(Processing). The
cold storage and eight states have established scheme has 100 per cent financial assistance
51 apni mandi, there is virtually no progress in from the Centre. The TMNE envisages
establishment of wholesale markets except in harnessing the potential of Horticulture,
Kerala. maximise economic, ecological and social
benefits through desirable diversification,
develop infrastructure for production of planting

 
82 Mid-Term Appraisal of the Eleventh Plan

material , storage and processing and to ANIMAL HUSBANDRY AND DAIRY SECTOR
generate skill- full employment.
4.96 The Eleventh Plan has set a growth
4.93 Out of the allocation of Rs 1500 crore target between 6 to 7 per cent per annum for
for Eleventh Plan expenditure during first four the sector as a whole, with milk group achieving
years has been around Rs. 1372 crore i.e. 91 a growth of 5 per cent, meat and poultry
per cent utilisation. The TMNE has become achieving 10 per cent. As against these
quite popular in all the NE states as is evident targets, actual growth in GDP of livestock
from the achievements under area expansion during 2007-08 and 2008-09 at 2004-05 prices
and other production related components. was 4.9 and 5.1 percent.
There has been promotion of commercial
cultivation of several potential crops in the 4.97 Milk sub sector which contributes to
Northeast namely citrus, banana, pineapple, about 70 per cent of the total output of the
strawberry, kiwi, apple, passion fruit, anthurium, livestock sector showed a growth of 3.93
rose, lilium, orchids and high value vegetable percent during 2007-8. Quantum jump in output
crops eg. Cherry, tomato, bird eye chilli, king of milk group is possible through increase in
chilli and coloured capsicum. As a result there productivity, and linking small holders to large
has been significant improvement in the income scale processors. This require innovative
of farmers engaged in horticultural activities. approach in breeding, feeding and
management aspects on production side and
4.94 A large number of apple plantations in more emphasis on marketing and processing.
the Northern hill states have become overaged,
with senile and unproductive trees. There is, 4.98 Currently, only about 18 per cent of the
therefore, an urgent need for launching a fluid milk is being processed through the
replanting programme in this crop on the organised sector, shared equally by
pattern of coconut, tea etc. There has been cooperatives and the private sector. The
very little progress in PHM and creation of projections for the next 5-10 years indicate an
market infrastructure. The objectives of increasingly larger share of the private sector.
increasing area under perishable horticulture There is obviously tremendous scope for value
crops will only be served if adequate post- addition in milk and dairy sector. Experience
harvest management infrastructure is created. shows that market linkage between milk
producers and buyers either through
4.95 One of the important oil yielding cooperative or private organised sector is
horticultural crops, oil palm is a part of critical to raise milk production and processing
Integrated Scheme of Oilseed, Pulses, Oil Palm in the country. But such linkages are not
and Maize (ISOPOM) w.e.f. 1st April, 2004 expanding at the expected rate, and therefore,
(Tenth Five Year Plan). The objective of the sustainable high growth rates in milk production
scheme is to promote cultivation of oil palm with remain a challenge.
a view to augment the domestic supply. The
progress made in area expansion in Eleventh 4.99 No Central assistance or schemes are
Plan shows the acceptance of oil palm as a available currently for meat sector and even the
commercial crop in several states. Being the incentives given to this sector in the form of
highest oil yielding crop, it has a potential of export subsidy etc. have been gradually
producing five million tonnes of palm oil and 1.5 withdrawn. The restrictions imposed by World
million tonnes of kernel oil. Keeping in view the Organisation for Animal for Animal Health
increasing population and the present and (which retains its acronym OIE from its earlier
future gap in oil availability, oil palm cultivation name Office Internal des Epizooties) are posing
needs priority attention in Eleventh Plan. It can hindrance to export. The certification process
be done by transferring it from ISOPOM to the needs to be streamlined.
Horticultural Division of the Ministry for its
systematic and scientific development with an
independent budgetary allocation.
 Agriculture   83

4.100 Value addition in meat sector has been Rs. 8000 crores. The National Fisheries
almost non-existent except in the case of Development Board (NFDB) has become fully
buffalo meat processing which is primarily functional and has reached out to the States.
meant for the export market. Livestock markets However, some of the areas that need attention
and abattoirs are mostly in unorganised sector. are: implementation of Model Inland Fisheries
For the meat sector to be more vibrant, and Aquaculture Bill; adoption of fish seed
profitable, export oriented and provider of safe certification and hatchery accreditation
meat, it is necessary that a perceptible shift guidelines; installation of quarantine system for
from unorganised to organised sector takes
place.
BOX 4.4:
4.101 Poultry sector in India over the years Accelerating Agri-Growth through High
has slowly transformed from backyard farming Value Segment
to a well structured organised industry on (Horticulture, Livestock And Fisheries)
commercial lines. Poultry meat (4.7 per cent)
and eggs (5.1 per cent) were among the Accelerating agri-growth through high value
segment (horticulture, livestock, and fisheries)
highest growing components in the gross value
of output, at 1999-2000 prices, of the livestock • Incentivise the states to ensure that APMC is
sector during last 5 years (i.e. 2003-04 to 2007- reformed and notified in all the states for
08). Eggs production is increasing at over 6 per direct buying from farmers; encourage
cent per annum (2003-04 to 2007-08) with India “clustering” of farmers in groups through
NGOs, be it in the form of cooperatives,
being the fourth highest producers of the eggs
farmer clubs, or contract farming, etc.
in the world. Further growth in this organised
segment requires focus on improved Feed • Promote a model land lease act to free up the
conversion ratios (FCR) and tackling of lease market,
outbreak of diseases like Avian Influenza and • Encourage NABARD to re-finance SHGs at 7
other newer emerging diseases. per cent interest rate with a condition they will
not charge more than 11 per cent from
Fisheries farmers;
• Encourage organised logistics players,
4.102 Fish production is targeted to reach 10 processors and modern retailers (both
million tonnes by the end of the Eleventh Plan domestic and foreign) by freeing them from
from base level of 6.87 million tonne during any restrictions, and supporting them to link
2006-07. Out of the two segments of fish directly with clusters of farmers;
production, the marine fish production has
• Rationalise taxes and commissions by
reached stagnation at around 3.0 million tonnes
abolishing them on fresh produce and
and there seems to be no further scope to raise replacing them by taxes only on value
this output. Inland fish production has been addition.
growing steadily and has reached a level of 4.2
million tonne during 2007-08. India has fish and shellfish; establishment of brood-fish
considerable scope to raise production of a bank and seed bank for carps and catfish;
variety of inland fish species and aquaculture. implementation of Code of Conduct for
There are a number of areas where private Responsible Fishing (CCRF) and regulations in
sector investments or projects in the PPP mode coastal fisheries; greater facilitation of fishing
can be promoted. These include, composite fish harbours and provision of facilities at jetties;
culture, ornamental fisheries, establishment of installation of Vessel Monitoring System (VMS)
extruded pellet production plants, commercial and Fish Aggregating Devices (FADs); evolving
venture of cage & pen culture, domestic guidelines for Illegal, Unregulated and
marketing and management of fishing harbours. Unrecorded (IUU) fishing in compliance with the
EU requirements effective from January, 2010;
4.103 An analysis of fisheries sector shows Marine fisheries census, 2010, along with
that it has grown by 5.9 per cent during the first assessment of income, health and literacy
two years of the Plan. Its exports have crossed levels of fishers; strengthening domestic

 
84 Mid-Term Appraisal of the Eleventh Plan

markets for fish and fish products; Reforming Incentives

strengthening data base and GIS in both
marine and inland fisheries; and more focused 4.107 Price and Marketing Policy: The main
programmes by NFDB towards reservoir government intervention in agricultural markets
fisheries and domestic marketing. currently comes through its policy of minimum
support prices (MSP) for some 24 crops. In
4.104 As indicated earlier, the growth of this practice however, it works for rice, wheat,
high value segment (horticulture, livestock and sugarcane, and cotton, where in there is some
fishery) has to be demand led, from plate to significant degree of procurement. Over time,
plough, and very closely coordinated between this MSP has become de-facto an incentive
input suppliers, farmers (especially small price and discourages farmers to diversify into
holders by “clustering” them into groups), high value crops that do not have such a
logistics players (including cold storages and support orprocurement price.
warehouses), large scale modern processers
and organised retailers in an integrated value 4.108 To make the system more market
chain of the modern agri-system. The major oriented, it is critical to de-link the support price
players driving this change will come from the from procurement price, where the latter can be
private sector. The role of government policy is changed (up or down) depending upon market
to create an enabling environment for private conditions and in full competition with private
entrepreneurs to enter this agri-system, trade within the same marketing year. This calls
coordinate the sourcing of their supplies from for abolition of all levies (on rice or sugar), free
millions of farmers, and deliver them to movement of goods across the country (one
consumers in processed or fresh forms. This unified national market), abolition of stocking
requires high degree of coordination all along limits, of export bans, of bans on future
the value chain, and only then the risks are markets, etc. on private trade. The country has
minimised and benefits accrue to farmers, been debating this for a number of years, but
which incentivises them to produce more. the system remains full of strangling controls
dissuading any major private sector
Priorities for the remainder of the Eleventh investments in logistics and storage. The net
Plan result is a huge wastage and losses in the
fragmented value chains. State governments
4.105 Since rapid growth of high value must recognise that these controls persist
segment of agriculture is essential for achieving because of vested interests and they must be
4 per cent agricultural growth, it is necessary to removed in the interest of both the farmers and
evolve a comprehensive strategy to achieve the final consumer.
this objective.
Reforming Institutions
Work on reforming the three “I”s:
Investments, Incentives and Institutions 4.109 Marketing and Warehouse Facilities
Improving marketing conditions and
4.106 While public investment in agriculture is encouraging private sector participation require
critical and important, in reality it forms only less reforming the Agricultural Produce Marketing
than one-third of the total investment in Committee (APMC) Act and abolishing the
agriculture, two-thirds coming from the private Essential Commodities Act (ECA). What started
sector including as farm investmernt. The as a protective regime to prevent exploitation of
private sector depends critically on the incentive farmers in marketing their produce and
structures in agriculture. Thus, reforming the ensuring fair price has resulted in excessive
incentives in agriculture is as important, if not government control. Cleaning up these archaic
more, as public investments in agriculture, to provisions can trigger private sector investment
spur private investments that can transform in developing regularised markets, logistics and
agriculture. warehouse receipt system, futures markets,
and in infrastructure (such as cold storage,
grades and standards, quality certification, etc.)
 Agriculture   85

for large domestic markets as well as imports farmers is through the cluster approach.
and exports. According to the 2003 estimates of NSSO,
farmer households with less than 2 hectares of
4.110 These steps are particularly relevant for land accounted for 80 per cent of the indebted
the high value segment that is currently hostage farmer households, and availed nearly 50
to high post harvest losses and weak farm-firm percent of their loan requirements from non
linkages. The introduction of the Model APMC institutional sources. What aggravates their
Act in 2003 was directed towards allowing plight is that nearly 38 percent of it is acquired
private market yards, direct buying and selling at a staggering rate of 30 percent. One could
and also to promote and regulate contract think of bringing the traditional moneylenders
farming in high value agriculture. Several states into the organised network as Non-Banking
(about 16) have passed a new Act but only the Financial Intermediaries (NBFIs), wherein
States of Andhra Pradesh, Rajasthan, NABARD can take the responsibility of
Maharastra, Orissa, Himachal Pradesh, refinancing them, say at an interest rate of 7
Karnataka, Madhya Pradesh (only for special percent, while they can still charge farmers up
licence for more than one market), and to 12 per cent rate of interest. Similar approach
Harayana (only for contract farming) have can be adopted with SHGs to bring down the
notified the amended rules so far. Tamilnadu rates of interests for farmers.
already has provisions for the envisaged
reforms and Bihar (act repealed), Kerala, 4.113 Freeing the restrictions on
Manipur, and the UTs (except Delhi and Organised retail, mainstreaming kirana
Puducherry) do not have the APMC Act hence stores through franchise, and clustering
do not require these reforms. Planning farmers in groups: For the agri-system to be
Commission should undertake an evaluation demand led, restrictions on FDI in organised
study of the way APMC reforms is being retail (multi-brand) need to be eased to create a
implemented in different states with a view to good competition for domestic players, but
make specific recommendations for the Twelfth more importantly to bring in new technologies
Plan. and management practices. The concerns of
kirana stores can be accommodated by
4.111 Reforming Land and Credit Markets: mainstreaming them in modern value chains
Linking small and fragmented farms with large through franchise route (say by reserving 20
scale processors and retailers remains a per cent space for franchise). The small farmers
challenge in the high value sector, and need to be “clustered” through cooperatives, or
restricted land (lease) markets tend to farmers clubs or contract farming etc., to create
compound the problem. Allaying the fears of a a scale in marketing their produce. The
farmer from possible alienation from his own government policy needs to encourage this
land on leasing out land to the retailer and through NGOs, which will also help correct the
processor require freeing up land lease power balance within the value chain.
markets. Legalising lease markets protects the
interests of the retailer and processor and 4.114 Rationalising taxes and
enables him to undertake larger investments. In commissions on fresh and processed agri-
this context, it may be helpful to ensure produce: Although agriculture income is
registration of land deeds and computerise land supposed to be free from income tax, there are
records (as Karnataka and Andhra Pradesh several taxes and commissions that are
have done) for bringing about greater imposed on fresh agri-produce and they
transparency and reliability. become even bigger as the produce is
processed. In Azadpur market, e.g., the
4.112 The land and credit markets are commission rates range from 6 to 10 per cent,
intricately linked and improving the land in Vashi market in Mumbai from 8 to 14 per
markets will enhance farmers’ access to cent. As these goods get processed, the tax
institutional credit that requires pleading of burden goes up further making the processed
collaterals. One of the most cost effective ways goods out of range for a large mass of
of reaching credit or insurance services to the consumers. These taxes need to be cut down

 
86 Mid-Term Appraisal of the Eleventh Plan

drastically, and commissions and purchase Land Records

taxes on fresh produce need to be brought to
less than 1 per cent, to give a major boost to 4.117 Accurate and updated land records are
this high value segment. Private sector should a veritable lifeline for millions of small and
be encouraged to set up its own mandis to marginal farmers in India. They secure them
attract commission and tax free transactions. against a range of vulnerabilities and allow
This will encourage large investments to them to access credit and agricultural inputs, as
modernise the deteriorating and messy mandi also the benefits of various anti-poverty
system, saving billions worth of fresh produce programmes. In most states a multitude of
from rotting. departments are involved in land record
management. People need to approach several
The Land Question agencies to obtain complete land records –
Revenue Department for textual records and
4.115 India has had a long history of social mutations; Survey and Settlement (or
discrimination, especially against scheduled Consolidation) Department for maps;
castes and women, which has denied them Registration Department for verification of
access to land. Specific land tenure systems encumbrances and registration of transfer,
prevailing at the time of independence also mortgage, etc. and Panchayats for mutation.
created their own set of problems. The The harassment they potentially suffer can be
deteriorating quality of land records imagined. Also because these departments
administration over the last four decades has work in relative isolation from each other,
compounded the hardships of the poor. And in updation by any one of them makes the records
the recent past, the drive to acquire land for of others outdated. Absence of integration of
development has posed fresh challenges, most textual and spatial records makes it hard to get
especially for the scheduled tribes. The last few maps-to-scale with the records of rights (RoRs).
years have also witnessed a number of new
government initiatives, including the Hindu 4.118 Unambiguously recorded land rights,
Succession (Amendment) Act, 2005, the firm in law, are the foundation for investments in
Scheduled Tribes and Other Traditional Forest higher farm productivity. On the other hand,
Dwellers (Recognition of Forest Rights) Act, chaotic land management results in sporadic
2006 and National Rehabilitation and encroachments and fratricidal litigation, at great
Resettlement Policy, 2007, which are a cost to the poor. It also creates a governance
response to both historical injustices and recent regime within which rent-seeking and
challenges. exploitation of the weak flourish unchecked.

4.116 A Land Acquisition (Amendment) Bill 4.119 Once land revenue began to decline in
and a Rehabilitation and Resettlement Bill have significance as an element in state income,
also been proposed and are under especially in the 1970s, land record
consideration by Parliament. In January 2008, administration underwent great neglect. The
the Prime Minister approved the constitution of most important activity for updating land
two High Level bodies – the National Council records – original survey for cadastral mapping
for Land Reforms under the Chairmanship of – has been neglected by many States. In many
the Prime Minister and a Committee on State areas, especially the tribal hinterlands, land
Agrarian Relations and the Unfinished Tasks in records have not been updated for decades.
Land Reforms under the Chairmanship of the Mutation of names in the records does not
Union Minister for Rural Development. happen (invariably as it should) upon transfer of
Expeditious and effective action on these possession and ownership of land. Millions of
initiatives is of the utmost importance, given the cases of mutation and measurement remain
growing disenchantment with the state, pending across the country.
especially in the remote hinterlands of tribal
India, where governance is breaking down and 4.120 The current system of land registration
Maoism poses a stern challenge to Indian in India is based on the Registration Act, 1908,
democracy. which provides for registration of deeds and
 Agriculture   87

documents, and not titles. Only the transaction • To ultimately replace the present deeds
is recorded. The transfer of ownership title registration and presumptive title system
remains merely presumptive. The massive with that of conclusive titling with title
time-lag between registration and mutation guarantee.
gives space for fraudulent transactions such as
Citizen Services and Benefits
in land and litigation. An alternative and more
direct system used in many other countries
4.123 Real-time records will be available,
(such as the US, UK, Australia, New Zealand,
which will be tamper-proof. Automatic and
Canada, Switzerland, Singapore, Kenya and
automated mutations will significantly reduce
Malaysia) is that of ‘conclusive titles’ (Torrens
scope for fraudulent deals. Since records will be
System) which confers a legal indefeasible title
placed on the website with proper security IDs,
to the holder of the land.
land owners ill have free access to their records
while maintaining confidentiality. Single window
4.121 The system of conclusive titles is based
service or web-enabled anytime-anywhere
on four fundamental principles: a) a single
access will save time and effort. Due to IT inter-
agency to handle land records to ensure
linkages, time for obtaining RoRs and maps
consistency and reduce conflicts between
drastically reduced. Free access will decrease
different sources; b) the “mirror” principle,
interface with officials, thereby reducing
whereby the cadastral records mirror the reality
corruption and harassment
on the ground; c) the “curtain” principle, which
indicates that the record of the title is a true
4.124 Abolition of stamp papers and payment
depiction of ownership status, so that mutation
of stamp duty and registration fees through
is automatic following registration, referring to
banks etc. will also reduce interface with the
past transactions is not necessary and the title
registration bureaucracy
is a conclusive, rather than a mere presumptive
proof of ownership; d) title insurance, which
4.125 Conclusive titling will reduce land
guarantees the title for its correctness and
disputes and litigation. E-linkages to credit
indemnifies the title holder against loss arising
facilities will become possible. Certificates
on account of any inaccuracy in this regard. At
based on land data (domicile, caste, income
present, land records in India do not reflect any
etc) will become available through the web.
of these principles.
Issue of land passbooks will become easier
National Land Records Modernisation
Implementation and Time-frame
Programme (NLRMP)
4.126 A district will be taken as the unit of
4.122 In order to move decisively in the
implementation, where all activities under the
direction of a Torrens System of land records in
programme will converge. The NLRMP is to be
India, the NLRMP was launched in 2008. The
implemented in a time-bound manner and all
NLRMP merges the two pre-existing Centrally
the districts in the country are expected to be
Sponsored Schemes -- Strengthening of
covered by the end of the Twelfth Plan. The
Revenue Administration and Updating of Land
country could move into a Torrens System
Records (SRA&ULR, started in 1987-88) and
during the Thirteenth Five Year Plan.
Computerisation of Land Records (CLR,
launched in 1988-89). The main aims of the
Progress So Far
NLRMP are:
4.127 The manual distribution of RoRs has
• Usher in real-time land records
stopped in eight states. In 18 states legal
• Automated and automatic mutation sanctity to the computerised copies of RoRs
have been accorded. In 11 states RoRs have
• Integration between textual and spatial been placed on internet websites. Twenty
records states have taken up digitisation of cadastral
maps, while 15 have begun effecting mutations
using computers.

 
88 Mid-Term Appraisal of the Eleventh Plan

4.128 Computer centers have been set up in 4.130 Establishing Ground Control Points
4,434 tehsils / taluks, 1,045 sub-divisions, 392 (GCPs) across India over 3.29 million sq.km.
districts and 17 state headquarters Monitoring will be a major challenge. So far, 300 GCPs
Cells. 16 states have completed construction of (satellite) have been established at a spacing of
about 1200 land record rooms, while nine 200-300 kms; 2220 points at a distance of 30 to

Box4.5:
Core Activities under the NLRMP

1) Computerisation of all land records. Including data entry/re-entry/conversion of all textual

records (current land records, mutation and & other land attributes data), digitisation of cadastral
maps, integration of textual and spatial data, data centres at tehsil/district/state and inter-connectivity
among revenue offices
2) Survey/re-survey and updating all survey and settlement records using various modern
technology options, including high resolution satellite imagery (HRSI) and global positioning system
(GPS)
3) Computerisation of registration. Computerisation of the Sub-Registrar’s offices (SROs), Data
entry of valuation details, Data entry of legacy encumbrance data, scanning & preservation of old
documents
4) Modern record rooms/land records management centers at tehsil/taluk/circle/block level
5) Creating a core Geographic Information System. Village index base maps by geo-referencing
cadastral maps with satellite imagery, for creating the core GIS.
6) Training & capacity building. Training, workshops, etc., strengthening of the Survey and
Revenue training institutes
7) Necessary Legal changes (amendments to Registration Act, 1908 and Indian Stamp Act, 1899
and a new model law for conclusive titling)
8) Programme management activities like Programme sanctioning and monitoring committee, Core
technical Advisory Group, IEC activities and evaluation
9) Establishing inter-connectivity among revenue and registration offices using appropriate
technology

states have completed the construction of about 40 kms (aerial) have to be undertaken in the
2000 Patwari / Talathi office-cum-residence. In second phase; the third phase will have GCPs
19 states revenue/survey training institutes at a spacing of 8 to 10 kms (cadastral). 42
have been strengthened by construction, million field measurement books and 1 million
renovation, up-gradation, providing modern village maps to be digitised
equipments etc.
4.131 Of the 4,018 registration offices in the
The Upcoming Challenges country, 1896 are yet to be computerised.
Nearly all of them have to be inter-linked with
4.129 There are several challenges that will the state revenue departments. As many as 1.5
need to be tackled in the coming years. As lakh patwaris, the staff of 5,000 tehsils and
much as 2.16 million sq km of cultivable area 4,000 registration offices and 50,000 survey
has to be surveyed. The Survey and Settlement staff need to be trained.
have to be done for 140 million land owners
with 430 million records. There are 92 million 4.132 These challenges demand a greatly
ownership holding each with 4-6 parcels of stepped up order of preparation on the part of
land. Around 42 million field measurement the Department of Land Resources and the
blocks and around 1 million village maps are to States. The most critical bottleneck that is likely
be digitised. to arise is in the capacity building of human
resources. There is need to both strengthen the
profile of personnel deployed, as also to train
 Agriculture   89

those currently in service, whose skill sets are 4.135 The balance of power in rural India is so
currently completely out of sync with the heavily weighed against the landless and the
demands posed by the radically new poor that implementing land ceiling laws has
architecture visualised for the NLRMP. become a virtual non-starter. It is clear that
without massive mobilisation of the rural poor
Land Ceiling and a deepening of democratic governance in
rural India, very little can be achieved in this
4.133 Ever since independence, land reforms direction. West Bengal, with more than half of
have been a major instrument of state policy to India’s ceiling surplus land beneficiaries,
promote both equity and agricultural provides an example of what could be
investment. Unfortunately, progress on land achieved. The Eleventh Plan outlines a charter
reforms has been slow, reflecting the resilience of reforms that could help achieve some
of structures of power that gave rise to the progress:
problem in the first place. 2003 NSS data
shows that 14 million (10 per cent) rural • Speedy disposal of court cases to
households in India are landless. Independent release and distribute land locked in
estimates suggest the figure may actually be litigation.
much higher. While the average land holding
size over the last 30 years has halved from 2 ha • Where land has been distributed but
to 1 ha, inequality in land holdings has grown there is lack of a well-defined title,
with the Gini coefficient rising from 0.583 in survey and re-open the cases and
1960-61 to 0.624 in 2003. Over 80 per cent of restore the land to the entitled family.
farmers are small and marginal but they own
only around 40 per cent of the operated land • Special squad of revenue functionaries
area, whereas the largest 3 per cent farmers and Gram Sabha members to identify
own 38 per cent of land. benami and fictitious transactions in a
time bound manner.
4.134 The main instrument for realising more
equitable distribution of land is the land ceiling • Survey of government land encroached
laws. These laws were enacted by several by ineligible persons and distribution to
states during the late fifties and sixties, and the the landless
early 1970’s saw more stringent ceiling laws to
plug loopholes in the earlier laws. But the • Inventory of government lands so that
record of implementation has been dismal. surplus land could be distributed to the
Around 3 million hectares of land has been landless.
declared surplus so far, which is hardly 2 per • Purchase of land by the state for
cent of net sown area in India. About 30 per distribution to the poor.
cent of this land has not yet been distributed,
being caught up in litigation. Besides, a number
of benami and clandestine transactions have Tenancy Reform
resulted in illegal possession of significant
amounts of land above ceiling limits. There are 4.136 Unfortunately, most tenancy laws have
widespread reports of allotment of inferior driven tenancy underground or made it even
unproductive, barren and wasteland to landless more informal. Micro-studies from different
households, many of whom have been forced states show that the proportion of leased-in
to sell it off, in the absence of resources to land is significantly higher than reported by both
make it productive. In many instances lands the NSS and Census. In some cases, it is as
allotted to the rural poor under the ceiling laws high as 20–25 per cent of the gross cultivated
are not in their possession. In some cases, area. Tenancy contracts are oral and for a short
pattas were issued to the beneficiaries but period. The proportion of leased-in land is
possession of land shown in the pattas was not higher in agriculturally developed regions
given or corresponding changes were not made compared to backward regions. All classes of
in the records of rights. households participate in the lease market both

 
90 Mid-Term Appraisal of the Eleventh Plan

as lessors and lessees. However, while in Women and Agricultural Land

backward agricultural regions, the traditional
pattern is more common wherein the small and 4.139 The Hindu Succession (Amendment)
marginal farmers dominate the lease market as Act (HSAA), 2005 makes significant
lessees and large and medium farmers as amendments in the Hindu Succession Act,
lessors, in agriculturally advanced regions, the 1956 correcting existing inequities in women’s
lease market is in a state of transition where all rights to agricultural land, Mitakshara joint
classes of households participate. The trend family property, parental dwelling house and
towards reverse tenancy is more pronounced in certain widow rights. This is a landmark
these regions. legislation which lays the foundation for
correcting gender inequality in property rights
4.137 The Report of the Eleventh Plan Sub over land.
Group on Land Related Issues suggests that
there is, therefore, a strong case for legalising 4.140 The challenge now is to ensure the
tenancy and allowing leasing-in and leasing-out implementation of these provisions. This will
land with adequate safeguards to protect the require a major drive towards awareness
interests of small and marginal farmers. generation, not only among women but also
Liberalisation of the lease market does not revenue officials. Women’s groups and civil
mean abrogation of existing tenancy society organisations must first acquaint
legislations. These must be suitably amended themselves of the changes made under HSAA
to permit leasing-in and leasing-out of land, and then play a major role in this drive,
while making ownership rights non-alienable ensuring that awareness is followed up by
and secure, fixing tenure of lease, recording of action on the ground.
lease and allowing landowners to resume land
for cultivation after expiry of lease. Reforming Forest Rights Act
tenancy laws would allow all sections to
appropriately participate in the lease market 4.141 The passage of the Scheduled Tribes
depending upon their resource endowment. and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act, 2006 has
4.138 Studies have shown that in states like set the scene for the correction of the historical
Punjab and Haryana, large and medium injustice suffered by India’s forest dwellers and
farmers who lease in land from small and tribal people. The effective implementation of
marginal farmers invest in modern inputs, reap the Forest Rights Act holds out the promise that
economies of scale and raise farm productivity. finally the enormous bounty of natural
The small and marginal farmers who lease out resources that India’s tribal areas are endowed
their land also gain in terms of occupational with can be harnessed for the holistic
mobility and higher incomes. In other states like development of the tribal people themselves.
Bihar and Orissa, with low wages and fewer However, there are many concerns regarding
employment opportunities, small and marginal the implementation of the Act on ground.
farmers lease in land, enlarge their holding size Overcoming these is vital if state power has to
and thus afford a reasonable level of living with regain legitimacy in the eyes of the tribal people
all attendant benefits of tenancy like borrowing who have experienced growing alienation from
from financial institutions. The medium and the mainstream and have been caught in the
large farmers in these states migrate to urban internecine cross-fire of the Maoists and
areas to take non-farm employment security forces.
opportunities without any risk of losing their
land. When their livelihoods become secure in 4.142 The long history of tensions between
the non-farm sector, they could sell their land. the Forest Department and the tribal people are
Liberalising tenancy also helps in consolidation casting a shadow over the process of
of holdings as farmers prefer to lease out rather verification of claims to land. There is a need to
than sell the piece of land that is inconveniently also strengthen capacities of the Gram Sabha
located. Long-term tenancy contracts would to handle the onerous responsibilities it has
also help raise agricultural productivity. been charged with, in this process. As per the
 Agriculture   91

Box 4.6:
Four Categories of States Based on Legal Restrictions on Leasing of Land

Sl. State Sections under which Leasing is Category of Persons Permitted

No. Permitted
1 Andhra Pradesh The Andhra Pradesh (Telangana Disabled; Armed Forces Personnel;
(Telangana Area) Area) those land owners who own not more
Tenancy and Agriculture Lands Act, than three times a “family holding”
1950. may lease out.
(Section 7)
2 Bihar Bihar Land Reforms Act, 1961 Disabled; Armed forces; SC/ST/OBC
may lease out
3 Karnataka Karnataka Land Reforms Act, 1961 Soldiers and seamen
(section 5)
4 Madhya Pradesh Madhya Pradesh Land Revenue Disabled, Armed forces personnel, or
Code, 1959 those imprisoned, others many also
lease out for one year in any three
years
5 Uttar Pradesh Uttar Pradesh Zamindari Abolition Disabled; armed forces personnel,
and Land Reforms Act (section 1957) imprisoned or bona fide students
6 Himachal Pradesh Himachal Pradesh Tenancy and Land Minor unmarried women, widow,
Reforms Act, 1972. divorce, disabled or defence
personnel.
A. Leasing of land totally prohibited irrespective of any category: Kerala, J&K, Manipur
B. Leasing of land permitted to the following category of persons
C. States where there is no general restriction on leasing of land Andhra Pradesh (Andhra area), Orissa,
Rajasthan, Haryana and Punjab
D. States where leasing is permitted but the tenant acquires right to purchase land
i) Assam: An ordinary tenant acquires right to occupancy after three years continuous possession and
occupancy tenant has a right to purchase leased land.
ii) Gujarat: Every tenant has a right to purchase leased land within one year of tenancy.
iii) Haryana: Tenant acquires right to purchase leased land after six years of continuous occupation.
iv) Maharashtra: Every tenant has a right to purchase leased land within one year of tenancy.
v) Punjab: Tenant acquires right to purchase leased land after six years of continuous occupation. 

Act, the Gram Sabha's recommendations have villages of Mendha-Lekha and Marda in the
to go through two screening committees at the Maoist affected Gadchiroli district of
block and district levels. The district level Maharashtra became the first two villages in
committee makes the final decision. There are India to be handed over the Record of Rights
complaints that the procedures followed by for community ownership of surrounding forests
these supra-local committees, which screen the under the Act. This achievement reflects the
decisions of the Gram Sabha, are often non- many years of peaceful mobilisation of the tribal
transparent. It is important that no changes are people there.
made in Gram Sabha decisions without placing
the proposed changes before the Gram Sabha Security of Homestead Rights
for consultation and approval. The verification
by the block committee should be done 4.144 NSS data indicate that around 7.70
transparently before the Gram Sabha. million households in rural India do not have
homestead sites, without which they are unable
4.143 The Act is not solely or even primarily to fulfil their need for shelter and avail benefits
about individual land claims. The most powerful under various government housing schemes.
sections of the Act concern the community right The Eleventh Plan set a target of providing
to manage, protect and conserve forests, the homestead sites to all by 2012. In 2009 a
first step towards a genuinely democratic proposal for providing homestead sites to rural
system of forest management. But action on BPL households has been approved.
this has been extremely slow. Recently, the Beneficiaries will be selected from the

 
92 Mid-Term Appraisal of the Eleventh Plan

Permanent Indira Awas Yojana (IAY) Waitlists 4.147 This becomes especially important
as per priority in the list. Only those BPL because the last two decades have seen major
households, who have neither land nor house contention over the issue of land acquisition
site, will be eligible. In the first instance, the and the rights of those displaced by
State Government will regularise the land as a development projects. Independent estimates
homestead site if it is presently occupied by a place the number of people displaced following
BPL household and if regularisation is development projects over the last sixty years
permissible as per the existing acts and rules. If at 60 million, only a third of whom have been
this is not the case, the State Government will resettled in a planned manner. Most of these
allot suitable Government land as homestead people are the assetless rural poor, marginal
site to the eligible BPL household. In case farmers, poor fishermen and quarry workers.
suitable Government land is not available for Around 40 per cent of those displaced belonged
allotment as homestead sites, private land may to STs and 20 per cent to SCs. Given that
be purchased or acquired for this purpose. 90per cent of our coal, more than 50per cent of
most minerals and most prospective dam sites
4.145 Financial assistance of Rs. 10,000 per are in tribal regions, there is likely to be even
beneficiary or actual, whichever is less, will be more contention over issues of land acquisition
provided for purchase/acquisition of a in areas inhabited by some of our most
homestead site of an area around 100-250 deprived people. The National Rehabilitation
sq.m. Funding will be shared by Centre and the and Resettlement (R&R) Policy is a landmark
States in the ratio of 50:50 while in the case of initiative that lays the foundation for more
UTs Central Government will fund 100 per cent. satisfactory solutions to these conflicts in the
The total Central Allocation for the Scheme for future.
the Eleventh Plan period would be Rs.1000.00
crore (Rs. 200 cr. for 2009-10, Rs. 300 cr. for 4.148 The Preamble to the Policy enunciates
2010-11 and Rs. 500 cr. for 2011-12). This the three minima that must become the charter
amount is sufficient to meet about 25per cent of for all land acquisition processes hereon:
the total requirement. State Governments are
expected to meet the remaining 75per cent of • Minimise the displacement of people
the requirement by regularising the presently due to the acquisition of land for the
occupied land, if any, or by allotting surplus project
Government land, to fulfil the target set by the • Minimise the total area of land to be
Government for providing homestead sites to all acquired for the project; and
by 2012. State Governments will be • Minimise the acquisition of agricultural
incentivised by sanctioning additional houses land for non-agricultural use in the
under IAY to the extent homestead sites are project.
provided to the landless rural BPL households.

Shift in Land Use from Agriculture to Non- 4.149 The R&R Policy constitutes a major
Agriculture step forward in protecting the interests of the
weakest sections of our society. The real
4.146 As can be seen from Table 4.7, there challenge is the implementation of this Policy in
has been a decline in net sown area of accord with its true spirit, which is to make
approximately 2 million hectares over the last displacement of people the option of the last
decade. While this can be seen, on the one resort and to safeguard the livelihoods of those
hand, as an expected outcome of diversification displaced, if it were to be regarded as the
of growth in rural India towards the non- completely unavoidable option. This demands a
agricultural sector, there is an equally valid number of facilitating provisions to give teeth to
concern regarding the future of agricultural the Policy.
output and agriculture-based livelihoods. An
effort needs to be made to smoothly resolve the
resulting trade-offs.
 Agriculture   93

4.150 These include ensuring that definition of PAFs, which is a hallmark of the
R&R Policy. Thus, the inclusion of agricultural
• The search for alternatives is a tangible labourers and non-agricultural labourers, SC/ST
process carried out transparently and families, vulnerable persons (disabled,
involving all stakeholders destitute, orphans, widows, unmarried girls,
• The meaning of public purpose is very abandoned women, or persons above fifty
carefully defined in a way that has years of age, without alternative livelihoods)
unambiguous credibility and the landless, is a very significant provision
• The Social Impact Assessment is in the R&R Policy which must become part of
conducted by a credible independent the LAAB. The LAAB and the SEZ Act also
agency with multi-disciplinary professional appear inconsistent with land ceiling laws and
capabilities do not incorporate the special protection for
• The compensation scheme has Scheduled Tribes in the Indian Constitution,
unquestioned credibility. This requires that whether those under Schedules V and VI, the
an Independent Regulatory Commission Panchayats (Extension to the Scheduled Areas)
with judicial powers oversees the whole Act, 1996 or the Scheduled Tribes and Other
process. All officials sought to be appointed Traditional Forest Dwellers (Recognition of
under the policy would be answerable to Forest Rights) Act, 2006.
this Commission
• The entire R&R process is completed 4.153 These are not minor matters of detail or
before displacement/submergence takes legal inconsistency. They go to the very heart of
place what is being attempted through the R&R
Policy. It needs to be clearly understood that
the process of industrialisation or infrastructure
4.151 A major question that has arisen over development in rural India cannot be sustained
the R&R Policy is its compatibility with the in the long-run if opposition by the PAFs
proposed Land Acquisition (Amendment) Bill continues unabated or and they are not made
(LAAB) and earlier land acquisition initiatives the very first beneficiaries of its outcomes. It
such as the SEZ Act. The key issue appears to has been estimated that 70 per cent of 190
be the doctrine of “eminent domain”. The infrastructure projects in the pipeline have been
Supreme Court traces the doctrine to Hugo delayed due to land acquisition problems. An
Grotius (De Jure Belli et Pacis, 1625): enlightened state policy aimed at ensuring long-
term sustainability of the process must gain
“The property of subject is under the eminent decisive ground over a short-sighted recourse
domain of the state, so that the state or he who to available legal loopholes. Only a win-win
acts for it may use and even alienate and scenario can give momentum to the entire
destroy such property… for ends of public process. There are many possibilities here,
utility, to which ends, private ends should give which need to be regarded as very small
way. . . the state is bound to make good the investments that ensure the long-term
loss to those who lose their property.” sustainability of the development process. One
is to provide land in the command area of
4.152 This doctrine is reiterated in the LAAB. irrigation projects, as mentioned in the R&R
A blanket sanction to “public purpose” is, policy. The other is to utilise the long period that
therefore, a serious weakness. The fact that the separates project initiation and land acquisition
Supreme Court has held that the state is the as also the gap between first notification,
“trustee of all natural resources” must be displacement and project construction to train
regarded as posing a challenge to the doctrine PAFs in skills that could be used on the project.
of eminent domain, for it qualifies the assertion Facilities and products created by the project
of absolute sovereign power by the state over could be made available to PAFs.
natural resources. Of course, everything hinges Compensation could also be tied more closely
of the meaning given to public purpose. The to future valuations in an inflation-adjusted
LAAB also does not include the three minima of monthly pension combined with a savings bond.
the R&R Policy. Nor does it have an inclusive The pension could be partially tied to the profits

 
94 Mid-Term Appraisal of the Eleventh Plan

of the project. The best way could be to make under strain in the remote hinterlands of India.
PAFs shareholders in the proposed project The way forward is to move away from the
given their contribution to a key element of vision of “subjects” inherent in the eminent
share capital. The safest way to disincentivise domain doctrine towards that of citizens, whose
land acquisition from degenerating into a real rights are guaranteed under the Constitution.
estate proposition (as it has, reportedly in quite Ultimately, we have to go beyond narrow
a few cases) is to resort to leasing or temporary legality to seek broader legitimacy. This
alienation which will not severe the relationship demands giving a cutting-edge to the many
of the landowner with her land. This would generous provisions of the R&R Policy, making
mean that if the project does not take off or each of them mandatory and not reducing them
shuts down or comes to a close, the land would to what they are in effect – conditionalities
be returned to the original landholder. without consequences. But it also requires an
unequivocal commitment to imaginatively
4.154 It is only these kinds of win-win exploring ways of rebuilding the livelihoods of
scenarios that can help reinforce the faith of those adversely affected by development
people in the democratic process, which is projects.
 Agriculture   95

ANNEXURE I

RASHTRIYA KRISHI VIKAS YOJANA AND PLAN EXPENDITURE ON AGRICULTURE AND ALLIED
SECTORS BY STATES / UTs
(Rs in crore)

Revised/ Approved Outlay

Actual Expenditure 2007-08 Actual Expenditure 2008-09 Average
2009-10
Expenditu
Sl States/ Agri. & Release RKVY Agri. & Release RKVY Agri. Release RKVY re on
N UTs Allied d under as a Allied d under as a & d under as a Agricultur
o Sector RKVY per Sector RKVY per Allied RKVY per e & Allied
cent of cent of Sector cent of Sectors
Agri Agri Agri during
Expen Expen Expen 2007-08 to
dr dr dr 2009-10

1 2 3 4 5 6 7 8 9 10 11 12
Andhra
1 994.04 61.08 6.14 2636.62 297.17 11.27 854.86 410.00 47.96 5.0
Pradesh
Arunachal
2 89.26 1.90 2.13 96.49 0.00 0.00 134.21 15.98 3.00 6.8
Pradesh
3 Assam 222.71 0.00 0.00 381.62 144.12 37.77 517.54 79.86 15.43 8.1

4 Bihar 283.74 57.77 20.36 657.69 148.54 22.59 765.30 110.79 1.54 4.4
Chhattisga
5 876.24 52.96 6.04 655.44 117.45 17.92 975.00 131.78 13.52 10.4
rh
6 Goa 54.49 1.70 3.12 65.34 0.00 0.00 77.75 0.00 0.00 3.8
1359.6
7 Gujarat 925.91 49.81 5.38 1144.85 243.39 21.26 386.19 28.40 5.7
7
8 Haryana 204.36 21.52 10.53 309.10 39.50 12.78 409.68 112.77 29.97 4.0
Himachal
9 213.75 16.17 7.56 248.98 15.11 6.07 327.72 33.02 10.08 11.1
Pradesh
Jammu &
10 104.12 0.00 0.00 142.68 1.20 0.84 246.61 42.05 17.05 3.4
Kashmir
11 Jharkhand 336.29 55.68 16.56 283.47 29.31 10.34 357.00 70.13 19.64 4.8
1805.5
12 Karnataka 1415.05 154.30 10.90 1638.43 314.14 19.17 410.00 22.71 7.3
6
13 Kerala 536.82 55.40 10.32 575.92 30.06 5.22 697.30 110.92 15.91 7.9
Madhya
14 619.08 101.62 16.41 580.77 146.05 25.15 944.33 247.44 18.87 5.3
Pradesh
Maharasht 2589.8
15 964.80 128.20 13.29 1324.84 261.77 19.76 404.39 13.36 6.8
ra 7
16 Manipur 22.59 0.00 0.00 38.48 0.90 2.34 52.01 5.86 11.27 2.5

17 Meghalaya 98.07 6.37 6.50 126.29 6.77 5.36 165.55 24.68 14.91 9.7

18 Mizoram 71.42 0.00 0.00 79.98 0.80 1.00 74.90 0.00 0.00 8.3

 
 
 
 

 
96 Mid-Term Appraisal of the Eleventh Plan

ANNEXURE I CONTD
RASHTRIYA KRISHI VIKAS YOJANA AND PLAN EXPENDITURE ON AGRICULTURE AND ALLIED
SECTORS BY STATES / UTs
(Rs in crore)

Revised/ Approved Outlay Average

Actual Expenditure 2007-08 Actual Expenditure 2008-09 Expenditu
2009-10
re on
Sl States/ Agri. & Releas RKVY Agri. & Releas RKVY Agri. & Releas RKVY
Agricultur
N UTs Allied ed as a Allied ed as a Allied ed as a
e & Allied
o Sector under per Sector under per Sector under per
Sectors
RKVY cent of RKVY cent of RKVY cent of
during
Agri Agri Agri
2007-08 to
Expen Expen Expen
2009-10
dr dr dr
1 2 3 4 5 6 7 8 9 10 11 12

19 Nagaland 88.86 3.19 3.59 101.82 6.95 6.83 130.77 20.38 15.58 9.7

20 Orissa 269.39 39.30 14.59 415.14 115.44 27.81 449.68 121.49 27.02 5.2

21 Punjab 142.64 36.05 25.27 165.25 87.52 52.96 224.00 43.23 19.30 2.8

22 Rajasthan 449.96 55.76 12.39 604.71 233.76 38.66 760.45 186.12 24.47 3.8

23 Sikkim 50.77 2.77 5.46 71.00 5.68 8.00 72.00 15.29 21.24 7.4
1335.4
24 Tamil Nadu 1307.65 153.60 11.75 1307.65 140.38 10.74 127.90 9.58 8.0
1
25 Tripura 96.69 4.16 4.30 129.71 16.08 12.40 243.67 31.28 12.84 10.9
Uttar 2280.7
26 1805.89 103.99 5.76 2130.75 316.57 14.86 390.97 17.14 6.5
Pradesh 5
Uttarakhan
27 444.60 28.25 6.35 458.52 10.30 2.25 324.13 71.36 22.02 9.8
d
West
28 257.50 54.93 21.33 364.45 147.38 40.44 459.66 147.38 32.06 3.2
Bengal
Total 12946.6 16735.9 18635.
1246.39 9.63 2876.34 17.19 3751.26 19.38 6.0
(States) 9 9 38
UTs
A&N
1 32.26 0.00 40.00 2.26 5.65 54.96 1.28 2.33 4.6
Islands
2 Chandigarh 8.28 0.00 16.48 0.14 0.85 6.52 0.42 6.44 2.5
Dadra &
3 Nagar 7.65 0.00 8.02 0.00 0.00 8.54 0.00 6.8
Haveli
Daman &
4 1.83 0.00 2.87 0.26 9.06 5.33 0.00 2.7
Diu
5 Delhi 14.97 0.10 0.67 0.00 0.24
Lakshadwe
6 32.88 0.00 17.69 6.14 34.71 20.34 1.09 5.36 9.6
ep
7 Puducherry 69.84 0.40 0.57 78.96 0.00 0.00 107.64 0.00 0.00 6.1

Total (UTs) 167.71 0.50 0.30 164.02 8.80 5.37 203.33 3.03 1.49 4.2
Distt. Agri.
Plans+NIR 1.98
D
Grand 13114.4 16900.0 18838.
1246.89 9.51 2886.80 17.08 3756.27 19.19 5.9
Total 0 1 71
 Agriculture   97

ANNEXURE II

PROGRESS OF EXPENDITURE UNDER THREE MAJOR PROGRAMMES OF DEPARTMENT OF

AGRICULTURE AND COOPERATION (DAC)
(Rs in Crores)

Sl States/ Macro Management of

N UTs NHM/TMNE Agriculture National Food Security Mission
o
2007-08 2008-09 2009-10 2007-08 2008-09 2009-10 2007-08 2008-09 2009-10
Release Release *Release Release Release Allocatio Expenditu Expenditu Allocatio
d d d d d n re re n

1 2 3 4 5 6 7 8 9 10 11
Andhra
1 Pradesh 78.36 129.68 95.66 46.43 34.28 65.35 26.07 83.78 147.15
Arunachal
2 Pradesh 28.30 17.65 28.50 26.50 20.50 20.50

3 Assam 26.80 36.75 39.00 15.94 8.12 16.26 2.75 30.42 27.28

4 Bihar 2.69 31.22 24.35 30.42 45.93 39.00 13.31 42.82 105.20
Chhattisga
5 rh 62.52 30.00 60.00 24.55 21.70 21.7 1.98 53.71 85.79

6 Goa 0.03 1.00 1.50 4.32 1.40 1.00

7 Gujarat 19.54 35.31 25.21 57.71 50.45 38.45 0.79 7.40 26.82

8 Haryana 64.76 33.00 56.00 22.5 23.00 16.90 3.62 22.99 39.40
Himachal
9 Pradesh 24.00 21.00 17.00 22.14 25.85 20.00
Jammu &
10 Kashmir 20.00 18.15 17.00 25.54 30.26 36.60

11 Jharkhand 7.81 50.00 30.84 8.50 5.32 10.65 0.00 4.49 11.93

12 Karnataka 85.71 125.36 80.01 73.46 48.85 50.25 2.21 18.71 62.49

13 Kerala 61.47 75.17 17.25 9.07 12.75 0.00 1.89 3.47

Madhya
14 Pradesh 55.37 60.00 35.45 47.89 58.34 62.85 8.97 58.54 105.60
Maharashtr
15 a 132.24 130.21 91.73 120.34 103.13 92.75 7.42 68.90 104.40

16 Manipur 22.28 25.00 30.50 33.09 20.50 20.50

17 Meghalaya 27 28.62 30.00 30 27.16 14.60

18 Mizoram 30.95 30.50 35.00 9.25 14.25 23.25

19 Nagaland 25.00 24.50 39.50 23.84 23.25 23.25

20 Orissa 38.12 23.41 35.00 37.36 43.60 32.80 3.81 63.34 65.11

21 Punjab 24.09 14.12 25.78 6.5 17.50 17.50 24.29 43.52 56.88

22 Rajasthan 56.73 40.97 25.00 78.35 37.75 57.50 4.08 27.22 57.64

23 Sikkim 31.10 26.75 37.50 23.35 18.50 18.50

24 Tamil Nadu 85.36 96.88 61.80 66.62 42.70 34.80 1.67 29.59 42.95

25 Tripura 24.00 17.00 30.00 14.44 18.50 18.50

Uttar
26 Pradesh 94.25 63.72 91.43 71.53 108.93 113.10 49.64 125.82 264.94
Uttarakhan
27 d 28.39 20.00 17.00 23.53 23.00 23.00
West
28 Bengal 6.81 6.07 33.64 38.11 44.25 9.23 38.52 88.08
Total
(States) 1163.68 1212.04 1060.76 994.99 919.95 946.56 159.84 718.54 1295.14

 
98 Mid-Term Appraisal of the Eleventh Plan

 
Sl States/ Macro Management of
No UTs NHM/TMNE Agriculture National Food Security Mission

2007-08 2008-09 2009-10 2007-08 2008-09 2009-10 2007-08 2008-09 2009-10

Release Release *Releas Release Release Allocati Expenditu Expenditu Allocati
d d ed d d on re re on

1 2 3 4 5 6 7 8 9 10 11

UTs
A&N
1 Islands 2.00 0.20 0.08 0.08

2 Chandigarh 0.10 0.00 0.00

Dadra &
Nagar
3 Haveli 0.06 0.06
Daman &
4 Diu 0.00 0.00

5 Delhi 0.00 0.40

Lakshadwe
6 ep 0.29 0.15 0.06 0.06

7 Puducherry 0.33 0.25 0.17 0.40

Total (UTs) 0.29 0.29 0.7 0.37 1.00

Grand
Total 1163.97 1061.05 995.69 920.32 947.56 159.84 718.54 1295.14

Source:-Draft Eleventh Plan Mid-Term Review document of DAC

* Information provided by the DAC

 Agriculture   99

ANNEXURE III
CONSUMPTION, PRODUCTION AND IMPORTS OF FERTILISERS: 2002-03 TO 2008-09
(In lakh tonnes)

Year Consumption Production Imports

16.74
2002-03 160.94 144.74
(10.4)
20.18
2003-04 167.98 142.66
(12.0)
27.52
2004-05 183.99 154.05
(14.9)
52.53
2005-06 203.40 155.75
(25.8)
60.80
2006-07 216.51 160.95
(28.1)
77.21
2007-08 225.70 147.07
(33.6)
101.51
2008-09 (E) 249.09 143.34
(40.9)
Figures in parentheses show share of imports in total consumption
Source: Ministry of Chemicals and Fertilizers, Department of Fertilisers (2009)

 
100 Mid-Term Appraisal of the Eleventh Plan

ANNEXURE IV
CENTRAL SUBSIDY ON FERTILISER

(Rs. Crore)
Subsidy at Deflated by implicit price index of As per cent of Value
Period
current price crop sector of crop output
2001 to 2005 13027 12129 3.15

2005-06 18460 16952 3.52

2006-07 26222 22503 4.4

2007-08 32490 25600 4.8

2008-09 76603 54956 10.3

2009-10 RE 52980 -

2010-11 BE 49981 -
 Agriculture 101

ANNEXURE V

STATUS OF C-DAP IN DIFFERENT STATES

S.No. State No. of Districts No. of C-DAPs C-SAP

prepared --y/n--
1 Andhra Pradesh 22 22 Y
2 Arunachal Pradesh 16 2 In prog
3 Assam 27 27 In prog
4 Bihar 38 38 Y
5 Chhattisgarh 18 13 Y
6 Goa 2 In prog In prog
7 Gujarat 26 26 In prog
8 Haryana 20 20 Y
9 HP 12 11 Y
10 J&K 22 14 Y
11 Jharkhand 24 24 In prog
12 Karnataka 29 20 N
13 Kerala 14 14 In prog
14 Madhya Pradesh 48 48 Y
15 Maharashtra 35 35 In prog
16 Manipur 9 9 In prog
17 Meghalaya 7 In prog In prog
18 Mizoram 8 In prog In prog
19 Nagaland 8 In prog In prog
20 Orissa 30 30
21 Punjab 20 20 In prog
22 Rajasthan 32 28 In prog
23 Sikkim 4 In prog Y
24 Tamil Nadu 29 29 Y
25 Tripura 4 4 Y
26 Uttarakhand 13 13 N
27 Uttar Pradesh 71 71 Y
28 West Bengal 18 18 In prog
Total 606 535

Y= C-DAP prepared

In prog= In progress
102 Mid-Term Appraisal of the Eleventh Plan

ANNEXURE VI

PROGRESS OF PEER REVIEW OF C-DAPS BY AERU’s and AERC’s

Sl. AERU
AERC State Districts
No.
1 IDS, Jaipur AERC, MP & Chhattisgarh 1. Durg
Chhattisgarh 2. Rajnandgaon
2 IDS, Jaipur AERC, MP & Madhya Pradesh 1. Jabalpur
Chhattisgarh 2. Sagar
3. Bhopal
4. Chhindwara
5. Hoshangabad
3 IDS, Jaipur AERC, Vallabh Gujarat 1. Anand
Vidyanagar 2. Junagandh
3. Bharuch or
Banaskantha
4. IDS, Jaipur AERC, Vallabh Rajasthan 1. Udaipur
Vidyanagar 2. Kota
3. Sirdhi
5 IDS, Jaipur AERC, Bhagalpur Bihar 1. Nawada
2. Samastipur
3. Katihar
6 IDS, Jaipur AERC, Bhagalpur Jharkhand 1. Ranchi
2. Dumka
7 ADRTC, ISEC, GOA Not identified
Bangalore
ADRTC, ISEC, Karnataka 1. Bidar*
Bangalore 2. Raichur*
3. Dakshna
Kannada*
4. Chikkamagalur*
5. Udupi*
6. Chamarajanagra*
7. Mysore*
9 ADRTC, ISEC, AERC, Andhra Andhra Pradesh 1. Srikakulam
Bangalore Pradesh 2. West Godavari
3. Chittoor
4. Anantapur
5. Warangal
6. Nizamabad
10 ADRTC, ISEC, AERC, Andhra Orissa 1. Parlakimundi
Bangalore Pradesh 2. Cuttack
3. Jajpur
4. Sambalpur
5. Ganjam*
6. Koraput*
7. Bhadrak*
8. Sundergarh*
9. Bolangir*
11. ADRTC, ISEC, AERC, Chennai Kerala 1. Palakkad
Bangalore 2. Karaikkal
3. Puducherry
12 ADRTC, ISEC, AERC, Chennai Tamil Nadu 1. Thanjavur
Bangalore
 Agriculture 103
 

Sl. AERU
AERC State Districts
No.
13. ADRTC, ISEC, Gokhale Institute of Maharashtra 1. Ratnagiri
Bangalore Politics & 2. Amaravati
Economics, Pune 3. Nagpur
4. Parbhani
5. Aurangabad
6. Jalgaon
Total 7 32
14 IEG, N. Delhi Jammu & Kashmir Not identified
15 IEG, N. Delhi AERC, Allahabad Uttar Pradesh 1. Jhansi
2. Meerut**
3. Hardoi
4. Allahabad
16 IEG, N. Delhi AERC, Delhi Haryana 1. Karnal*
2. Kaithal*
17 IEG, N. Delhi AERC, Delhi Uttarakhand 1. Dehradun*
18 IEG, N. Delhi AERC, Jorhat Assam 1. Kamrup**
2. Nowgong
19 IEG, N. Delhi AERC, Jorhat Meghalaya 1. Ribhoi
2. West Garo Hills
20 IEG, N. Delhi AERC, Jorhat Tripura 1. N. Tripura**
2. Dhalai**
21 IEG, N. Delhi AERC, Ludhiana Punjab 1. Amritsar*
2. Kapurthala*
3. Patiala*
4. Bathinda*
5. Hoshiarpur*
6. Ludhiana**
22 IEG, N. Delhi AERC, Shimla Himachal Pradesh 1. Shimla*
2. Solan*
3. Kinnaur**
** Studied by Agricultural Economic Research Units (AERU)
* Studied by Agro-Economic Research Centres (AERCs) only

 
 5
Industry
this includes modern corporations, many of
5.1. The Eleventh Plan thrust for which compare well with global companies and
accelerated and inclusive growth requires rapid some of whom are now acquiring or developing
growth in the manufacturing sector with assets abroad. It also includes an extensive
generation of quality employment. The Eleventh sector in the medium range with companies
Plan had envisaged the manufacturing and which could easily grow in strength. At the other
general industrial sector growing at an average end it includes small and micro enterprises who
rate of 10–11 per cent which was about 2 per often struggle to survive in an inhospitable
cent more than that achieved in the Tenth Plan. environment. A successful industrial policy must
Manufacturing grew at 9 per cent in 2007-08, encourage each of these segments to
the first year of the Tenth Plan, but slipped to contribute their best while at the same time
2.6 per cent in 2008-09 on account of the encouraging competitive and openness.
adverse effects of the global economic and
financial crisis. In the first eleven months for Industrial Policy Eleventh Plan
2009-10 there was a strong recovery with
manufacturing output touching 10 per cent. 5.4. The major focus areas for improving the
Nevertheless manufacturing output growth industrial climate during the Eleventh Plan
during the Plan period will still be far short of were:
the double digit target set out in the Eleventh
• Creation of world class infrastructure and
Plan.
devising regulatory mechanisms to reduce
5.2. How to bring about a more rapid growth transaction costs.
in manufacturing remains a major challenge. • Promotion and facilitation of industrial
Old fashioned “protection” of Indian industry investments, particularly Foreign Direct
against competition is not an option as it will Investment (FDI), non-resident investment
only reduce competitiveness and dynamism in and foreign technology transfers/
industry. The approach must be to identify the collaborations.
constraints that hold back growth and devise
policies to overcome them. It has to be • Improvement in business regulatory
recognised that some of the constraints that environment of Central and State
must be eased, such as land and labor matters, Governments
that are often mentioned, are of a different • Development of industrial infrastructure
nature than the licensing constraints that were through PPP initiatives
addressed in the first round of industrial
reforms. They are more complex and require • Removal of regional industrial imbalance
partnership with people . This calls for a wider • Development of industry relevant skills
process of consultation and greater
inclusiveness. • Addressing environmental issues emerging
out of industrial activities
5.3. The strategy must take into account that
our industrial structure at present contains an
entire spectrum of industrial units. At one end
 Industry 105

5.5. During the first two years of the Plan, in maintenance and repair organisations
the following important policy modifications and other related activities allowed.
were carried out.
• FDI policy in the petroleum and natural
i. The earlier restriction on location of gas sector rationalised to do away with
industry in cities with population of one the condition of compulsory divestment
million and above (1991 census) has of up to 26 per cent equity in favour of
been done away with. Entrepreneurs are Indian partner(s)/ public within five
now free to select the location for setting years, for the actual trading and
up of industry subject to permissibility in marketing of petroleum products.
zone /land use regulations and
environmental legislations. • FDI up to 100 per cent (with prior
government approval) allowed in mining
ii. In order to instil healthy competition and mineral separation of titanium-
amongst producers, the list of items bearing minerals and ores, its value
reserved for small scale sector is addition, and integrated activities.
reviewed from time to time. At present
only 21 items are reserved for the small
scale sector. Manufacturers other than PLAN OUTLAYS AND EXPENDITURE
small scale manufacturers may also
manufacture these items provided they 5.6. Plan expenditure in the industrial sector
undertake export obligation of 50% of the is a small part of the total investment in this
annual production. sector which is now dominantly driven by the
private sector There are 11 departments and
iii. Government has put in place a liberal and ministries that deal with different segment of
transparent regime, where FDI upto 100 industry and the likely expenditure on the
per cent is allowed in most of the sectors schemes of these ministries during the first four
and activities. Liberalisation measures years of the Plan period would be about Rs
taken on this front during first two years of 29,056 crore (Gross Budgetary Support) , which
Eleventh Plan are summarised below: is 69.6 per cent of the Plan Budgetary Support
for the Five Year Plan. The Ministry-wise
• FDI up to 49 per cent allowed in credit
expenditure is shown in Annexure-5.1
information companies and credit
reference agencies excluded from the 5.7. The Eleventh Plan’s focus on inclusive
list of the NBFC activities where FDI is growth resulted in great attention to micro and
allowed. small enterprises in Industry. These generate
most of the employment in industry since they
• FDI up to 26 per cent and FII
are less capital-intensive, entrepreneurial, and
investment up to 23 per cent was
dispersed. The Ministry of Small, Medium, and
allowed in commodity exchanges,
Micro Enterprises is dedicated to the growth of
subject to no single investor holding
this sector. One of the flagship schemes of the
more than 5 per cent equity and FII
Ministry of MSME is the Prime Minister’s
purchases being restricted to the
Employment Generation Programme (PMEGP)
secondary market only.
through which its is expected to generate
• FDI up to 100 per cent under the additional self employment opportunities of
automatic route allowed both in setting around 37 lakhs during the Eleventh Plan.
up and in established industrial parks, Another important scheme of the Ministry of
provided they meet with certain MSME is the Micro and Small Enterprises
specified conditions. Cluster Development Programme (MSE-CDP)
which is to be undertaken in around 400
• FDI cap in the civil aviation sector clusters in the country. The Programme
relaxed - 74 per cent FDI in non- envisages interventions for capacity building,
scheduled airlines, chartered airlines skill development, technology upgradation,
and cargo airlines and 100 per cent FDI market support, setting up of common facilities
centres etc. on a cluster basis, in labour
106 Mid-Term Appraisal of the Eleventh Five Year Plan

intensive industries. A number of initiatives for II. Micro and Small Enterprises
skill development and improvement of business
5.10. The role the MSE sector plays, not only
skills and management practices are also being
in the inclusiveness of industrial growth, but in
undertaken by the Ministry through its various
the quantum of growth too, has to be noted. It
autonomous institutions and development
contributes 8 per cent of the country’s GDP,
Institutes to cater to the needs of small industry.
accounts for 45 per cent of the manufacturing
The National Manufacturing Competitiveness
sector’s output and 40 per cent of its exports.,
Programme is also being implemented through
Therefore, the Prime Minister appointed a high-
the Ministry for developing the competitiveness
level Task Force in 2009 to examine ways to
of Indian MSMEs. The major components are
overcome the handicaps in the growth of this
related to quality improvement technology,
sector. The Task Force’s recommendations are
upgradation, marketing and information and
now being implemented (Box.5.1). They
communication technology.
address the critical issues that organisations in
INDUSTRIAL SECTOR: THE PATH AHEAD this sector face viz. credit flow, improvement of
skills, access to markets and raw materials,
coping with a multiplicity of regulations and
5.8. While the specific schemes of many of inspectors. High level committees have also
the industry related Ministries have some been set up to monitor the progress of these
impact on industrial productivity and recommendations.
competition, a real take-off to high industrial
III. Industrial Clusters and Collaborative
growth calls for broader policy action on several
Enterprises
fronts.
5.11. The need to improve the performance
I. Better Infrastructure
of huge numbers of small scale business
5.9. There is no doubt that India’s enterprises presents an organisational
manufacturing competitiveness is adversely challenge. Their performance suffers due to
affected by weaknesses in infrastructure their small scale and insufficient capital. They
especially in energy and transportation. These are too small to afford the investments in
are discussed in detail in Chapters 15 and 16. improving human capital, quality improvement,
The point underscored in this chapter is that marketing, etc that are necessary to improve
poor infrastructure hurts small and medium their competitiveness and performance.
industry the most since these are the categories Therefore, there is a need to aggregate these
that cannot afford their own infrastructure. small units into clusters of various forms
Large capital intensive industries are less whereby they can share infrastructure for
affected by poor power supply because they Human resource development quality
can set up their own power plants and obtain management, marketing etc.
power more economically compared with
5.12. The benefits of aggregation, to
sourcing power from utilities. Smaller units on
overcome the handicap of small scale as well
the other hand are forced to rely on diesel
as poor infrastructure, have induced several
powered generating sets which provide power
Ministries, covering many different industrial
at three or even four times the unit cost of
sectors to promote clustering in many forms to
power from the utilities. Similar considerations
improve competitiveness of Indian enterprises.
apply for other infrastructure also such as roads
This strategy is evident in the approaches of the
and ports if only because large capital intensive
Ministries such as those promoting textiles,
units can locate themselves where the
handicrafts and handlooms, food processing,
infrastructure is good whereas smaller units by
chemicals, pharmaceuticals, machine tools,
their nature are dispersed and need good
auto components, and Medium, Small, and
infrastructure everywhere.
Micro Enterprises in general.
 Industry 107

Box 5.1
Summary of Recommendations of Prime Minister’s Task Force on Micro,
Small and Medium Enterprises

Measures that need immediate action

i. Strict adherence to the stipulated credit targets by the commercial banks for the micro
enterprises.
ii. A separate fund with SIDBI, using the shortfalls against the MSE credit targets set for the
commercial banks.
iii. A Public Procurement Policy for MSMEs as envisaged in the Micro, Small and Medium
Enterprises Development Act, 2006.
iv. Offset policy of the government should give priority to MSMEs.
v. Additional public spending to the tune of Rs.5000 - 5500 crore over the next 3-5 years to
specifically target deficiencies in the existing infrastructure and institutional set up

Medium Term Institutional Measures

i. Improve the institutional set up at the national level for the promotion and development of
MSMEs.
ii. A Standing Review Committee to monitor flow of credit to MSME sector.
iii. Micro Finance Institutions (MFIs) to finance micro enterprises.
iv. The District Industries Centres (DICs) should be strengthened.

Legal and Regulatory Structures

i. The establishment of a SME Exchange

ii. Legal options for the securitization of trade credit receivables and for the promotion of
factoring services
iii. Wider adoption of new formats like Limited Liability Partnerships and Single Person
Companies.
iv. The insolvency legislation should be comprehensively reviewed.
v. Labour laws should be simplified, especially those applicable to enterprises in the MSME
sector.

5.13. Reviews with the Ministries of their amongst the many parties involved. These
progress against plans, and discussions about parties include many private sector participants,
how the Plan objectives may be better the state government, and central government
achieved, have pointed to some common agencies. Hence, skills to find solutions
themes across industries. One of these, as together and structures for collaborative
mentioned, is the strategy of aggregation of management are keys for success.
units to achieve benefits of scale. The Ministries
have also pointed to some common challenges 5.14. In a learning session in the Planning
in implementing this strategy, a principal one Commission different Ministries/ Departments
being collaboration. Clusters obtain the benefit and other agencies including some of the SPVs
of scale through aggregation when the many involved in implementation of various cluster
parties involved work together. When they do schemes shared their experiences and insights
not collaborate, the numbers of parties involved on how certain elements could be better
are a problem to manage, rather than a source designed or implemented and mistakes
of strength. The success of clusters is very avoided for achieving better outcomes. What
often determined by the quality of collaboration resulted was a diagnosis of factors for success
 108 Mid-Term Appraisal of the Eleventh Five Year Plan

of interventions by Ministries & Departments / company, or conglomerations of small

SPVs for clustering. These lessons are enterprises into production clusters, or
reproduced in the Box-5.2 cooperatives, or producer companies.
Innovation here is in the form of the enterprise
5.15. Industrial enterprises that combine that enables aggregation of many smaller
many smaller, independently owned businesses independent units into a larger one. Such
into a larger productive enterprise can enable
Box-5.2
Learning Experiences for Achieving Better Outcomes of Cluster Schemes
Learning Action Step
• Study all schemes to see whether they have a clear and specific provision for
1. Combination of soft and hard
soft interventions and make modifications to the scheme design to ensure soft
interventions
components are comprehensively and adequately addressed as necessary for
the situation
• Ensure that the implementation plan proposed during approval stage or
subsequently has sufficient priority for soft interventions
• Study all schemes to see whether they have a clear and specific provision for
2. Flexibility in design and
activity wise financial limits and redesign them to consider embedding flexibility
implementation of the
to reallocate budgets across activities within total assistance based on local
schemes
situation and demand
• Rework implementation guidelines to allow inter-se reallocation of funds under
different components during implementation subject to suitable justification
3. Developing trust and • Presence of a strong cluster development agency/ partner should be reviewed
cooperation among cluster at the time of approval of the project
participants
• While approving schemes in sectors/ industries with strong backward and
4. Targeting the entire value
forward linkages, consideration should be given to how the project intervention
chain of the product
will improve the value chain for the product
• Study whether alternative modes of implementation through for profit, not-for
5. Suitability of mode of
profit companies (section 25), NGOs should be allowed in the same scheme
implementation
• Lay down the roles and responsibilities of all the stakeholders clearly in the
schemes
• Consider flexibility in structure of SPV to allow a few majority stakeholders for
driving the project. Incorporate safeguards for ensuring larger public benefit of
the project
• Develop a suitable model for longer term engagement of a professional
6. Longer term engagement of a
service provider who will be compensated on outcome based parameters
service provider
• Gather the knowledge of experience of similar arrangements with on-going
and past schemes
• Higher allocation of funds for engaging such a service
• Allow some provision for financial support for
7. Maximising asset usage
management of common facilities during the initial period of operation
during operation and
maintenance
• Develop clear metrics for defining and measure
8 Promoting inclusiveness in
inclusiveness in project
projects remains a challenge
• Work out an incentive framework for implementing agencies to address
inclusiveness including linking future disbursements to enhancing
inclusiveness
• Incorporate social impact assessment as part of monitoring and evaluation of
projects in a manner that inclusiveness dimension is clearly addressed

more people to own their businesses. In such innovations have special value in India where,
‘industries of the people’ entrepreneurs are as mentioned before, many small enterprises
financial stakeholders in their enterprises and are sprouting, whose competitiveness and
not merely employees. Such enterprises can sustainability can be improved through
take many forms—as supply chains to a large
 Industry 109

aggregation into larger enterprises whereby SEZ Act 2005 and the SEZ Rules 2006. The
they can obtain benefits of scale too. investment in setting up SEZs comes from the
private sector and there is no commitment from
5.16. Government can make the formation of Government in this regard. Out of total
collaborative enterprises and clusters easier in investment of Rs.1,28,385 crore as on 31
two ways. First, it can develop appropriate December, 2009 in these SEZs, the major
legislative frameworks and remove disabilities chunk of investment of Rs. 115603 crore have
in present laws and regulations. been made by SEZs notified under the SEZ
Act, 2005 since the coming into force of the Act
5.17. Second, Government and Industry in February, 2006.
Associations can catalyze programs for
improving techniques and skills for 5.19. By January 2010, 571 SEZs had been
collaboration. ‘Soft skills’ are required for accorded formal approval out of which 346
improvement of enterprise performance, just as have been notified, and 105 are actually
they are for improvement of individual operational. Many more are expected to
performance. The Total Quality Movement that become operational in the next year. There are
permeated large and small firms in almost all 2,761 units in these 105 SEZs. Of the 105
Japanese industries in the 1970 transformed operational SEZs, 15 are multi-product SEZs
their capabilities. Simple techniques were and the remaining are in IT/ITES, Engineering,
learned by Japanese managers and workers to Electronic Hardware, Textiles, Biotechnology,
improve quality that they applied to their own Gems and Jewellery, etc.
work settings. They were disseminated by
many institutions, government and private, and 5.20. These SEZs have provided direct
employment to 4.9 lakh persons of which 3.6
even through newspapers and the radio! Their
lakh is incremental employment after the
adoption was promoted by competitions. Thus
the nation adopted a new language and new enactment of the law. Exports from these SEZs
ways for quality management. Later, companies in 2009-10 until Dec ’09 were Rs. 151,000
in other nations adopted these same crores: 66 per cent of this was manufactured
goods, 21 per cent IT/ITES, and 13 per cent
techniques to catch up with Japanese
competitors who had surpassed them. Similarly, trading. Thus, SEZs have contributed
a campaign is required to improve the soft skills significantly to growth of manufacturing,
for collaborative management, in clusters and employment, and exports. Whereas the SEZs
have proved their value as a concept, a major
otherwise, for Indian industry, especially small
industry, to improve its competitiveness and problem with the expansion of this idea is
grow. A strategy to build this infrastructure acquisition of land particularly agricultural land.
derived from success stories in India is
V. Balancing scale and depth across
described in Box 5.3. industries
IV. Special Economic Zones
5.21. For any manufacturing economy,
5.18 Special Economic Zones (SEZs) are a building “deep” manufacturing capabilities in
special form of industrial cluster in which the specific industries is an important aspect of
units within it, in addition to the benefits of a sustainable growth. “Depth” is defined as
shared and better quality infrastructure, get capability and expertise in all aspects of a
special tax benefits also to offset high product value chain – from R&D and product
transaction costs in the domestic economy to design, to manufacture of components and final
enable them to improve their competitiveness products, and further to installation and service
with international competitors. A policy for SEZs where appropriate. Depth is important for
was formulated in 2005 underpinned by the multiple reasons.
110 Mid-Term Appraisal of the Eleventh Five Year Plan

5.22. In certain industries such as defence 5.23. However, it is also important to note
and telecommunications, national security that the right balance of scale and depth will be
requires that the value chain is indigenous. required across industries. Over the last two
Controlling upstream value chain in some decades, RDEs (Rapidly Developing
industries is critical to safeguard growth in the Economises) including India have grown their
downstream segments. Depth allows for greater share of global trade through greater off-shoring
value capture along the chain. Greater depth to RDEs, by companies in developed markets,

Box-5.3
Soft Infrastructure: Counsellors and Industry Associations

The achievements of the Indian auto component industry in the last 15 years are noteworthy.
According to traditional wisdom, scale is necessary to succeed in the auto industry. The domestic
automobile market was small until recently. Nevertheless, several Indian auto component
manufacturers began to compete for business internationally. What made them attractive were not
only their low costs compared with Western suppliers but also their quality and engineering
capabilities. The industry made a concerted effort to build the capability of its members in quality
and productivity and engineering, including the small ones of whom there are many in the industry,
and the fruits of that effort were the commercial successes of its members in exports and within the
country too against foreign producers.

The industry-wide focus on systematic development of capabilities of its members took root with
the formation of two clusters in 1998 under the guidance of Prof. Tsuda, a quality expert from
Japan, working with ACMA and CII. It led to 11 of the companies winning international recognition
by getting the Deming Prize for quality, the highest international recognition for quality. This was
the highest number of Deming Prizes won by any country after Japan!

The cluster-based capability building programme has now been running for over ten years.
Companies who participate in this program—many of whom are small, with turnovers less than Rs
10 crores per annum—value the services they get. They pay for the services with hardly any
complaints. Clusters include companies that are business competitors who have established
boundaries of what they will share and what they may not. Thus they have created a ‘commons’
from which they all gain if they use it well.

Two lessons can be gleaned from this experience. The first is the critical role of trained
counsellors. The biggest bottleneck in ramping up this initiative is the shortage of good, motivated,
and capable experts for helping the companies. However, the programme has developed a profile
and a curriculum for training good counsellors. With this, the number can now be multiplied, and
with a larger number the benefits of this successful cluster-based approach can be expanded.

The second lesson is in the role of industry associations. One of the difficulties in getting clusters
to form and then perform, is the difficulty of getting the beneficiaries to cooperate with each other.
They do not have the ‘soft infrastructure’ of trust and systems, which must be built for them to
cooperate. Industry associations provide an infrastructure for engendering co-operation amongst
companies. They are also good conduits of assistance into the clusters.

makes the industry position more stable and of lower value mass production or assembly,
less exposed to shifting global demand-supply driven primarily by the labour cost advantage of
situations and increasing volatility. This has RDEs. The high value parts of the chain e.g.
consequence for key parameters like GDP R&D, design and production of core
growth and employment generation. components, were often not outsourced as
 Industry 111

these companies were keen to retain their spending. More spending need not translate
technology and value creation in their home into more results. Therefore, merely calling for
countries, and also because these parts of the an increase in the spending to catch up with
chain were more competitive in the developed other country’s levels is not a smart strategy.
markets. Very often investments are driven The productivity of R&D and the effectiveness
only in a specific part of the value chain due to of the spending are more important and must
higher competitiveness of RDEs in that part of be the focus of policy-makers as well as the
the chain – it is important that these R&D organisations. Issues related to R&D are
investments are not discouraged in the policy addressed in the Chapters on Science and
framework to promote depth. Technology, as well as Innovation.

5.24. India's challenge is to do both – Table. 5.1

continue to capture a large share of the off- R&D expenditure as % of GDP in 2007
shoring space by building scale in assembly
and production of some basic parts in relevant Brazil 1.02 ( 2006)
industries; and at the same time, build deeper China 1.5
manufacturing capabilities which allow greater Pakistan 0.7
share of the total value chain. India 0.8
Mexico 0.5
5.25. There are several sectors where India is Russia 1.1
building to global scale, but with not enough
South Korea 3.5
presence across each stage of the value chain.
Malaysia 0.6
These include mobile phones, telecom
Thailand 0.2
equipment, consumer electronics and even
Source: OECD and UNESCO Data Centre
passenger cars. For example, in telecom
equipment while a large proportion of wireless
devices and software content are now produced Policy levers to drive depth
in India, design, components and telecom
infrastructure continue to be imported from 5.27. India has progressively liberalized its
other markets and no single Indian player has industrial policy to attract investments. This has
been able to build capabilities to have a major paid off in many ways. The key question now is:
play in the domestic market, leave alone the given the current position of the Indian industry
global market. (Indeed, India has to import such and the global trends on off-shoring, should
equipment from China, where such capabilities India refine its policy stance and framework to
have been built whereas they have not in India give greater focus on building depth in target
even though telecom markets in both countries sectors?
are large enough to provide manufacturing
scale.) On the other hand, in passenger cars, 5.28. Indian manufacturing will require a
several Indian players have made a strong concerted policy agenda that should vary based
beginning and are building capabilities to on the type of industry. As a starting point, four
design and manufacture cars from scratch and main segments that require focus are:
now have an opportunity to scale up these
• The nation’s “building blocks” –
capabilities to global levels.
infrastructure, capital goods, machine tools
5.26. Finally, India currently lags behind the etc – these require focused efforts and
curve on R&D. R&D spending is only 0.8 per large investments to build technical
cent of GDP which is much lower than expertise and manufacturing capabilities
developed country or even other rapidly • Consumer-led businesses where India has
developing economy benchmarks (Table 5.1). already begun to build to scale – these are
Given that technology and R&D are critical driven by scale. The focus here will be to
drivers of depth in any industry, this is a matter continue to rapidly build scale to drive down
for concern. Two issues to consider are: the costs, and at the same time, proactively
quantum of R&D spent and the effectiveness of “learn” and transfer knowledge from more
developed markets
 112 Mid-Term Appraisal of the Eleventh Five Year Plan

• New / emerging technologies where India V. Subsidies for local manufacture, or local
could position itself as an early mover and R&D, in selected industries (with no
possibly global leader – these require discrimination between domestic and
careful assessment to identify the right foreign companies)
emerging technologies where India can
VI. Provision of special infrastructure—e.g.
display advantage. These technologies will
privileged and well equipped areas, R&D
require support through earmarked
funds, marketing funds, etc—the users of
“innovation” funds, open experimentation
which are required to meet specified
and active teaming and investment in
conditions
research institutes to gain early mover
advantage This is an illustrative list. The specific actions
• Defence – India will need focused that would be appropriate must be determined
investment to build capabilities in through a process of consultation between
manufacturing defence equipment producers and policy-makers as explained later.

5.29. There is a range of actions that 5.30. Asian countries, especially Japan,
Governments can take to facilitate the growth of Korea and China, that accelerated their
specific manufacturing industries in a industrial growth in the last few decades—
competitive manner. The objectives of these targeted policies very effectively to produce
could be to promote employment generating results. A lesson from the successes of the
industries in which the country has some large industrial Asian giants is the close
resource advantages (such as large labor cooperation between the policy sector and the
pools, raw materials and traditional skills, productive sector in the shaping of policies. The
and/or to create depth in some industries for productive sector, as it seeks to expand and
strategic reasons as mentioned before. These compete, feels the ‘pinch in the shoe’, which
actions could be in the following areas: must be eased by policy change. These
policies must be WTO compatible. This requires
I. Government’s own purchases, where these much better collaboration between industry and
are large, could be used as a lever to policy-makers to focus policy actions. Therefore
encourage domestic manufacture and the quality of the process of collaborative
transfer of technology as a condition. The learning and policy-making will be a key to the
intention should not be to simply prefer growth of industry. While industry and
domestic manufacture irrespective of cost Government in India are meeting in various
or technology but to use leverage to create forums, there is scope to sharpen insights for
a modern and competitive industry. strategic actions that can have the most impact
II. Standards of products and services that at least political cost.
may be sold in the country could be
VI. Skill Development
specified in a manner that would encourage
domestic production building to scale within 5.31. Skill Development for inclusive
these standards. industrial growth must address the vast
III. Wherever Government subsidises the numbers in the unorganised sector to improve
purchase and use of new technology (e.g. their productivity. This will have to be a
for promotion of environment friendly continuous process, leading to up-gradation of
products) it specifies standards or skills over a period of time. It would require
technologies as well as domestic production revamping technical and vocational training with
requirements the help of industry associations. Public-Private
partnership will be necessary in running and
IV. Tax benefits (and/or) interest subventions managing training institutions to meet the gap in
for selected industries along with conditions skills.
for local content (with no discrimination
between domestic and foreign companies) 5.32. The Prime Minister’s National Council
on Skill Development has set a target of 500
million persons by 2020. Out of 500 million, 45
 Industry 113

million are expected in the manufacturing achieving optimum levels of employment and
sector. The Ministry/ Department wise targets production. However evidence suggests that
are Textiles- 10 millions, Heavy Industry- 10 downsizing has taken place in response to
millions, Food Processing Industries- 5 millions, market requirements irrespective of the IDA.
Micro small and Medium enterprises- 15 million, This is in evidence particularly in the textile
Chemicals & Fertilizers- 5 million. The ambition sector which took the major hit during the
of these targets may be seen by comparing with recession when lakhs of workers were laid off.
the training capacity of institutes directly under
the five Ministries/ Departments at the 5.36. The other legislation in question, the
beginning of the Eleventh Plan which was only Contract Labour Act prohibits contract labour in
336,000 per annum. an industry where labour is seen as essential to
the main activity. However, contract labour,
5.33. The two main approaches to address when employed, helps to reduce cost and
skill development targets are to co-ordinate affords employment to those who would
private sector initiatives in the skill development otherwise not have got any regular
sector through National Skill Development employment. Employers are therefore
Corporation (NSDC) and secondly to augment generally of the view that the Contract Labour
existing Schemes as well as new programmes Act should be amended to distinguish between
within the overall strategy outlined by National ‘core’ and ‘peripheral’ work (the latter being
Skill Development Coordination Board permitted to be contracted out). Greater
(NSDCB) that has been set up to implement the flexibility to employ contract labour should be
decisions of the Prime Minister’s National supplemented with better conditions of work
Council on Skill Development. such as certain minimum level of pay and
duration of work.
VII. Labour Policy Reforms
5.37. Creation of not only more employment
5.34. Economic liberalization and opportunities but also qualitatively better
deregulation have brought closer integration of employment needs to be a priority. The
domestic and international markets, and has unorganised sector is completely outside the
increased competitive pressure on industry. A purview of most labour laws and the system of
supportive policy environment can reduce such social security. Inclusive industrialisation will
pressures considerably. It has generally been have to create more employment opportunities
perceived that rigidity in the labour policies of than hitherto and enable a large portion of the
the country codified in two principal legislations Indian work force to move out of the vast
viz. the Industrial Dispute Act, (1947) and the unorganised sector to an expanding organised
Contract Labour (Regulation & Abolition) Act, one (to which social security is applicable to a
(1970) have adversely affected employability large extent). At the same time, social security
and employment generation in organised will have to be ensured to the workers in the
manufacturing. Regular employment is giving unorganised sector. Recently, on the
way to increase in casual and contractual recommendation of the NCEUS the Ministry of
employment. The shrinkage of the regular Labour have notified the Unorganised Workers
workforce is a matter of concern and belies that Social Security Act 2008. Measures such as
benefits of growth have been inclusive. Rashtriya Swasthya Bima Yojana and Aam
Aadmi Bima Yojana and Old Age Pension
5.35. Inclusive growth requires that more and Scheme have also been introduced.
more citizens are directly included in the growth
story, with more people obtaining better 5.38. Under the constitution, Labour is a
employment opportunities. In the past it had subject in the concurrent list where both Central
generally been perceived that labour legislation and State governments are competent to enact
was a stumbling block when it came to legislation. Consequently there are labour laws
rationalization of costs (through down-sizing) enacted by the Central Government and where
and that there were inherit inflexibilities in the it is solely responsible for enforcement. Then
IDA Act that constrain the employer from there are laws that are enacted by the Central
114 Mid-Term Appraisal of the Eleventh Five Year Plan

Government and enforced by both the Central fixed, and with growth of population as well
and the State governments. Yet another set of growth of the economy, need for land is
laws are enacted by the Central Government increasing. The issues raised are central to
but enforced by the State Governments and concepts of inclusive growth. Who should be
finally there are laws that are enacted and compensated for the land acquired—only the
enforced by the State Governments. In addition, owners on record or also those who depend on
both Central Government and State the land for livelihoods even though they are
Governments have formulated Rules to not the owners? In what form should they be
facilitate implementation of these laws. compensated? Outright grants, or stakes in
future appreciation of the value obtained from
5.39. The States would remain empowered to the alternative use of the land? In what manner
enact Rules to implement the laws and indeed should rehabilitation be provided so that there is
play a more significant role in harmonising and reasonable continuity of incomes for those
streamlining procedures that would make displaced? Many land acquisition problems are
compliance transparent, less arbitrary and occurring in the context of ‘PPPs’ where land is
stressful. In this context, the recommendations sought to be acquired for projects—for
of the Anwarul Hoda Committee (2005) to shift infrastructure, industry, urban renewal, or
towards self certification and third party SEZ’s—in which private sector is involved along
inspections, joint inspections and a joint annual with Government. The people affected would
calendar of inspections need to be seem to be the missing ‘partner’ in
implemented. The Committee had also arrangements so far. Therefore, the issue of
supported proposed amendments in Labour land acquisition and its use require that the
Laws (Exemption from Furnishing Returns and concept of PPP be expanded to include another
Maintaining Registers by Certain P in the partnership viz. the People affected.
Establishments) Act, 1988 that aim to reduce Principles have to be distilled and agreed to for
the number of inspections and maintenance of public-people-private partnerships and solutions
registers as currently required under various have to be found quickly and justly.
Labour Laws. The amendments should be
enacted expeditiously. 5.42. Land acquisition processes that worked
earlier do not work now because, not only is the
VIII. Land for Industry and Mining pressure on the land more, but people’s
consciousness of their rights, and their
5.40. Land for Industry and Mining is expectations too have changed as the country
becoming more difficult to obtain and more has developed. The role of the state has also
costly, year after year. Major industrial projects become complicated. Laws that appeared fair
have been started, and some abandoned in when the land was acquired for public utilities or
several states, because they could not get public sector enterprises, in which the gains
possession of the land intended for them. Small were retained in the public sphere, do not
and micro enterprises have even greater appear just when the gains go towards
difficulties than large enterprises in obtaining enhancement of private wealth of investors. It
land at economical rates in suitable locations is worth noting that while there are many much
for industry. Clusters are a solution for providing publicised cases of projects being stalled by
land and infrastructure for small enterprises but problems of land acquisition, there are also
obtaining land for clusters is also becoming cases, often in the same states, of land being
difficult and costly. obtained by industrialists who have negotiated
issues of compensation and rehabilitation
5.41. Land acquisition and use have become directly with the people affected.
highly contested and politicized. Land stock is
 Industry 115

The National Rehabilitation and Resettlement of minerals, and efforts towards augmentation
Policy (NRRP) 2007 aims at striking a balance of resources of ferrous, non ferrous, and
between the need for land for development industrial minerals. These objectives were to be
activities andprotecting the interests of land achieved by encouraging private sector
owners, tenants and the landless etc. The investment in exploration. Other objectives of
Rehabilitation and Resettlement Bill, 2007 to the Plan included restructuring and
give a statutory basis to the policy, and the modernisation of the Geological Survey of India
Land Acquisition (Amendment) Bill, 2007 were (GSI) in the areas of instrumentation for both
introduced and passed by Lok Sabha and ground and airborne surveys, and acquisition of

Box-5.4
Some important features of National Mineral Policy, 2008
• Seamless and transparent grant of mineral concessions and Security of tenure to a holder of a
concessionaire.
• Arm’slength distances between State agencies that mine and those that regulate.
• Preference to value addition industry in grant of mineral concession.
• Development of a proper inventory of resources and reserves - priority to a mining tenement registry and
a mineral atlas.
• Strengthening of Geological Survey of India, the Indian Bureau of Mines and the state Directorates of
Mining & Geology, with manpower, equipment and skill sets up graded to state of the art.
• Development of framework of sustainable development to take care of biodiversity issues.
• Special care to protect the interest of host and indigenous (tribal) population through developing models
of stakeholder interest based on international best practice.
• Assistance to State Governments to overcome the problem of illegal mining through operational and
financial linkages with the Indian Bureau of Mines.
• Development of a comprehensive institutional framework for R&D and training.
• Development of capital market structures to attract risk investment into survey and prospecting.

referred to Rajya Sabha for consideration. state-of-the-art laboratory facilities with high –
However, due to dissolution of the 14th Lok precision capabilities, and the creation of a
Sabha, the Bills have lapsed. Early comprehensive portal giving Meta –data of
reintroduction of these legislations is essential regional exploration work done by GSI and the
to set up an appropriate statutory framework to scope for investment based on such work.
address the important areas of land acquisition, Other thrusts were the modernisation of the
and rehabilitation and resettlement. It must be Indian Bureau of Mines(IBM) and the State
kept in mind that in the absence of the new Directorates for establishment of a national
legislation we have per force to continue with registry and a mineral atlas; adoption of United
the existing laws which are manifestly Nations Framework Classification (UNFC)
inadequate. system of classification of mineral resources so
as to present reserves / resources of minerals
on an internationally uniform system to facilitate
MINERALS SECTOR the attraction of more private investment into
the sector; development of minerals in the
Eleventh Five Year Plan Objectives
North Eastern Region; and strengthening R&D
5.43. The Eleventh Five Year Plan aimed at activities in all aspects of mining.
intensification of exploration activities for low
volume high value minerals such as gold,
diamond, base metals and the platinum group
116 Mid-Term Appraisal of the Eleventh Five Year Plan

Policy Initiatives and Strategies Physical Performance

5.44. The National Mineral Policy, 2008 was 5.48. Specific production achievements of
approved by the government and has been some important mineral based industries are
tabled in the Parliament. Some of the important impressive as can be seen from Table 5.2.
features of the National Mineral Policy, 2008
are given in Box 5.4. The Government has 5.49. Production of selected minerals is given
initiated a proposal for amendments / revision in Table 5.3. The performance is mixed.
of the Mines and Minerals (Development and Whereas production of iron ore and manganese
Regulation) Act based on the National Mineral has increased, production of other minerals has
Policy, 2008 and the recommendations of the not. One reason may be, as in the case of
High Level Committee (HLC) on National chromites that the imposition of export duty to
Mineral Policy (Hoda Committee). A Bill has to discourage the export of a scarce mineral to
be introduced in the Parliament and this should conserve it for value adding domestic use, can
be expedited. result in lower production of the raw ore. So
long as the country’s industry gains overall, this
5.45. A high Powered Committee on GSI set decline in one mineral or sector need not be of
up in January 2008, submitted its report titled concern.
”Report on the functioning of the Geological
Survey of India “ to the Government on 31st 5.50. Crude steel production has been
March 2009. The Committee visualized making increasing and, with it, domestic production of
the GSI a world class Geo-Scientific Institution iron ore. However, export realisations from iron
and made 74 main recommendations which are ore exports have declined recently. The value
beginning to be implemented. of iron ore exports declined to US $ 4.8 billion in
2008-09 compared to US $ 5.8 billion in 2007-
5.46. In order to augment the revenue of 08. In the first half of 2009-10, value of exports
mineral producing States the Hoda Committee of iron ore fell by a further 34 per cent.
had recommended that the method of fixing of
royalty should move decisively to ad valorem 5.51. Modernisation and upgradation to
rates. Internationally, the ad valorem royalty provide state-of-the-art laboratory facilities with
system is more commonly used as it has the high –precision capabilities was initiated in
basic advantage of providing buoyancy to Geological Survey of India in the terminal year
revenues in line with rises in the price of of the Ninth Five Year Plan (2002-07) and
minerals. Based on the recommendations of the continued through the Tenth Five Year Plan
Study Group set up by the Ministry of Mines to (2002-07). However, progress has remained
consider the revision of rates of royalty and slow. Efforts must be made to complete the
dead rent of major minerals (excluding coal, work in the Eleventh Plan. The project on
lignite and sand for stowing), the Government establishment of a portal for dissemination of
approved the royalty rates and dead rent and geo-scientific information is in an advanced
the same were notified by the Ministry of Mines stage.
in August, 2009. These changes have resulted
in substantial increases in royalties to the 5.52. Several high cost equipments are being
states, doubling and tripling them for several, acquired for enhancing capabilities of GSI in the
and even more than that for Goa. field of marine surveys and airborne surveys.
These include a Blue Water Research Vessel at
5.47. Foreign Direct Investment (FDI) policies an estimated cost of Rs 448.00 crore, a
have been gradually liberalised in the last few Geotechnical Research Vessel at an estimated
years. With this, the FDI in the mining sector for cost of Rs 70.20 crore and a Heliborne
all non atomic and non fuel minerals, including Geophysical survey system at cost of Rs 52.00
diamond and precious stones, has now been crore.
fully opened up to 100 percent through the
automatic route.
 Industry 117

Table-5.2
Physical Performance of some important mineral based industries

Sl Item Unit 2006-07 2007-08 2008-09 2009-10 2011-12

No Apr-Dec Projected
1. Crude Steel Million tonne 50.82 53.86 58.44 52.20* 80.23
2. Aluminium ‘000 Tonne 1,152.53 1,236.70 1,348.70 1,115.08 1,250.00 @
3. Copper ‘000 Tonne 641.70 704.97 640.67 523.94 705.00 (E)
cathode
4. Zinc ‘000 Tonne 380.94 458.23 562.20 455.84 638.00
(Primary)
5. Lead ‘000 Tonne 44.55 58.25 60.32 45.97 95.00
(Primary)
Sources: Joint Plant Committee , Annual Report Ministry of Steel 2008-09, Ministry of Mines, Working Group Report on Mineral
Exploration and Development (Other than Coal and Lignite), Vol.III.for the Eleventh Five Year Plan.
E-estimated
@ excluding additional capacity of 250 th.tonnes from Vedanta Aluminum Limited (VAL) at Jharsuguda , which is under trial
run.
* April 2009- January 2010

Table -5.3
Production of Selected Minerals 2006-07 to 2008-09
Sl. Item unit 2006-07 2007-08 2008-09 2009-10
No. (Apr-Dec)
1 Iron Ore Million 187.70 206.45 222.54 156.00
tonne
2 Bauxite 000 tonne 15,733 23,085 15,250 10,388
3 Chromite 000 tonne 5,296 4,799 3,976 2,524
4 Manganese 000 tonne 2,116 2,551 2,695 1,686
5 Copper Ore 000 tonne 3,271 3,245 2,983 2,302

5.53. Indian Bureau of Mines (IBM) had taken 5.56. In 2007-08, 56 reconnaissance permits
up work in the Tenth Plan to present the covering an area of 76,482 sq.km were granted
National Mineral Inventory in line with the which indicates an encouraging response to the
UNFC system to improve the quality of policy measures in the sector. Total number of
information for assessing the economic viability reconnaissance permits granted by the State
of deposits. Government in as on 31 March 2009 was 258
out of which 22 were completed.
5.54. IBM has taken up project on
computerisation of the online tenement registry 5.57. Since the liberalisation of the FDI policy
system which includes construction of cadastral for the sector, FDI in the mining sector has
and concession related data. A pilot project has been increasing. From a total of US$ 6.6 million
already been initiated in two states, Karnataka, in 2006-07, it increased to US$34.2 million by
and Chhatisgarh. The work must be expedited 2008-09 and was as much as US$ 86.6 million
to attract more investment in the sector. in the first six months of 2009-10. In fact the
total FDI was US$ 444.3 million in 2007-08—
5.55. IBM has completed the preparation of most of that accounted for by investments by
the overlays of mineral maps and forest maps the Vedanta/Sterlite Group.
on 1:50,000 scales, in respect of Chhatisgarh,
Orissa, Jharkhand and Andhra Pradesh and Sustainable Development in Mining
preparation of maps of Rajasthan have been
taken in Annual Plan 2009-10. These maps are 5.58. Mining activities, including exploration,
critical to facilitate clearance of proposals from development, production and disposal of
the Forest angle, which is a contentious issue. minerals generally affect the environment and
118 Mid-Term Appraisal of the Eleventh Five Year Plan

ecology of the mined areas. Therefore levels Scientific and regulatory capabilities of
environmental and social concerns must be the concerned organisations must be
addressed sensitively, for which effective strengthened. A sustainable development
governance systems are required to ensure framework must be formulated.
mining in a sustainable manner. In view of this
a Sustainable Development Framework (SDF) 5.65. More emphasis must be given to
appropriate to Indian conditions should be scientific mining practices, adequate attention
developed as quickly as possible. to host populations including tribals and the
poor, affected by mining activities, prevention
Outlays and Expenditure in the Eleventh and detection of illegal mining, enforcement of
Five Year Plan mine closure plans.

5.59. An outlay of Rs.1,180 crore (GBS) was 5.66. The value-chain for mineral processing
approved for the Eleventh Five Year Plan for involves various steps, often with alternative
the Ministry of Mines against which the likely uses possible at these steps. Thus there is a
expenditure in the first three years (2007-10) of trade-off between sales/exports of the raw-
the Plan would be of Rs. 491 crore. The main material or processing it further for value
shortfall is in respect of the Geological Survey addition. Since there are different agencies
of India (GSI) where the procurement process responsible for regulations at each step, a
for high cost equipments mentioned earlier is comprehensive framework has to be formulated
progressing rather slowly. GBS and for the most sustainable use of the country’s
Expenditure for Ministry of Mines is given in mineral resources for national development,
Annexure 5.2. taking due notice of the conflicts of interests of
various agencies.
Areas of Concern
5.67. Investments in the Mineral Sector, as in
5.60. Illegal mining is rampant in many states. Industry, are affected by availability of land for
It amounts to stealing of public property, and is projects and environmental concerns. Laws and
an environmental hazard. Strong action is policies, and their administration, must be
required by the states to check such illegal improved. Mineral sector enterprises must also
activities. overcome a large ‘trust deficit’ with the social
sector. Therefore, they must voluntarily do
much more to address social and
5.61. The modernisation programme of GSI is environmental concerns.
progressing at a very slow pace and needs to
be accelerated. SHAPING FUTURE GROWTH OF THE
INDUSTRIAL AND MINERAL SECTOR
5.62. There is shortage of geoscientists in the
mineral sector due to less intake in the past in
Business Accountability
GSI and IBM and poor career progression.
Steps need to be taken for enhancing the
5.68. Private business enterprises are the
capabilities for ensuring faster growth in the
principal engines of industrialisation in India:
sector.
Government is no longer promoting public
5.63. In spite of step-up of investment in R&D sector enterprises in industry. Its principal role
since the Ninth Plan, visible impact or outcome in industry today is to enable and regulate the
has not been noticed in the sector so far. More activity of business enterprises in the private
attention is required to improve performance. sector to ensure that they may profit and grow,
and meet societal needs too. Therefore
Government must induce private enterprises to
MINERALS SECTOR: THE PATH AHEAD pay more attention to societal concerns of
inclusion and environmental sustainability.
5.64. There is need to improve management
capacity at the Central and State Government
 Industry 119

5.69. Government intends to continue the Shaping Industrial Policy

process of liberalising the economy to give
more freedom to entrepreneurial energy. The 5.72. The task of shaping industrial policy is
benefits of this approach are being realised in to elicit information on significant externalities
the faster growth of the economy at rates that and their remedies. As it advances and grows,
are now amongst the highest in the world. the industrial sector bumps into the constraints
Meanwhile societal concerns with the condition in the economy: it feels the stones underfoot, or
of the environment and climate change are the ‘pinch in the shoe’. Some of the obstacles
increasing. The country wishes to continue on in the path of industry in India—poor
its path of industrial liberalisation and infrastructure, inadequate power supply, and
progressive dismantling of government controls. the plethora of inspectors and permissions
However, regulation of business conduct in required –have been mentioned before. The
some form cannot be avoided. If voluntary lesson from all Asian countries that have rapidly
regulation is not effective, governments are grown strong industries in the last century is
pressed to step in. The more effective the that policy-makers must work closely with
industry is at self-regulation, and the more industrial managers to solve problems in the
credible its actions are , the less will be the production sphere. In Japan, Miti and the
societal pressure on government to control the Keinderan worked together; in Korea,
industry. government and the chaebol; in China, the
party and state-controlled enterprises. In its
5.70. A movement is growing around the own way, each produced an institutionalised
world, within businesses themselves, to process of collaboration that created policies
develop frameworks of accountability that go resulting in competitive industries. Not only did
beyond the responsibility of business towards these countries choose strategic sectors in
investors and customers to responsibility which they believed they could build
towards citizens and society. In such ‘triple competitive advantage, government worked
bottom line’ frameworks, business with industry to make it happen. In a world in
organisations are expected to report for public which not only companies, but states and
scrutiny the impact of their business activities countries too, are rated on their
on the environment and communities. Leading competitiveness by international agencies, and
Indian companies are part of this international a world in which all must strive to climb that
movement. scale, the only sustainable source of
competitive advantage can be a company’s or
5.71. This voluntary movement for country’s ability to learn, change, and improve
accountability must be strengthened. It must faster than any potential competition.
spread beyond the few leading firms. Business Therefore, a country’s competitive ability lies in
organizations do not want more government the capability of the collaborative process
‘control’ of their activities. They resent between producers and policy-makers to
government imposed reporting requirements, produce effective policies and not on any
especially those that are tedious and costly to particular policy.
implement. However, reporting standards
developed by business associations 5.73. India cannot return to ‘protection’ to
themselves, as the new frameworks are, should nurture industry in India. Nor can India simply
be acceptable. Government could work with copy the collaborative process used by Japan,
industry associations and put pressure for the Korea, or more recently China. Its
wider adoption of such standards. They should circumstances are different and times have
not be foot-notes to financial accounts. They changed. Nevertheless, Indian policy-makers
must be front and centre where they are must find ways to improve competitiveness and
noticed. growth of Indian industry. The processes that
will enable policy-makers to do so will include
consultation not only with large domestic
companies that has characterised the Asian
giants so far. The consultations must involve
120 Mid-Term Appraisal of the Eleventh Five Year Plan

those who represent labour rights, land owners, necessary. The Planning Commission must
and the concerns for the environment; also continue to provide this perspective.
small scale industries that generate more
employment and thus more ‘inclusive’ growth;
and even foreign companies whose 5.75. In conclusion, the key to accelerate
investments and technologies can help India. broad and deep industrial growth in India within
a competitive world, is to innovate and improve
5.74. Industrial policy requires reconciliation domestic processes for consultation and
of the interests of many inter-acting sectors consensus-building. They must work well and
within industry and between several ministries work fast. Policy makers and stake holders
too, and states. The promotion of capital goods must apply themselves to the design and
industries, so necessary for the long term, if development of these processes to find policies
done through a costly process of protection, that will propel inclusive and sustainable
can compromise the growth of domestic user industrial growth in India. Should India succeed
industries in the short term and thus affect as it must, the description of that process
domestic employment and domestic (which will be different to China’s and the
consumers. On the other hand, ‘inverted duty’ others) and the policies that it will produce
structures in favour of down-stream user (which cannot be known ex-ante) may be
industries can distort the industrial landscape, added by future economic historians to their list
and crimp growth of up-stream capital goods’ of successes in economic development. The
producers. Therefore while the tuning up is Planning Commission will focus on the
being done through direct consultations improvement of these processes in the
between producers and ministries in their remainder of the Eleventh Plan and into the
respective sectors, an overview is always Twelfth Plan.
 Industry 121

Annexure-5.1

Gross Budgetary Support and Expenditure during the Eleventh Plan

(at current prices)
( Rs Crore)
Ministry / Eleventh Annual Annual Annual Annual GBS in
Department Plan Gross Plan Plan Plan 2009- Plan first four
Budgetary 2007-08 2008-09 10 (actual) 20010- years in
Support (actual) (actual) 11(BE) Eleventh
(GBS) Plan

Department of
1. Industrial
4,183.0 925.2 524.8 886.6 1,050.0 3,386.6
Policy and
Promotion
2. Ministry of
14,000.0 2,211.3 3,824.7 4,221.9 4,725.0 14,982.9
Textiles
(A) Village and
Small 3,000.0 588.4 697.7 771.0 1,356.0 3,413.1
Enterprise
(B) Industry 11,000.0 1,622.8 3,127.0 3,450.9 3,369.0 11,569.7
3. Department of
4,093.0 82.4 191.7 157.1 370.0 801.2
Heavy Industry
4. Department of
1,492.0 37.5 40.3 199.7 215.0 492.5
Fertilizers
5. Ministry of
217.0 70.0 0.0 7.1 36.0 113.1
Steel
Department of
6.
Public 54.0 9.0 8.3 7.6 10.5 35.4
Enterprises
Ministry of
7.
Corporate 211.0 0.0 63.0 33.0 40.0 136
Affairs
8. Department of
563.8 90.1 139.8 402.9 400.0 1,032.8
Chemicals
Department of
9.
Pharmaceutica 1,396.2 76.6 110.1 102.2 165.0 453.9
ls
Department of
10. Food
4,031.0 183.0 223.1 277.5 400.0 1,083.6
Processing
Industries
11. Ministry of
11,500.0 1,101.4 1,659.6 1,376.6 2,400.0 6,537.6
MSME
122 Mid-Term Appraisal of the Eleventh Five Year Plan

Annexure -5.2

Gross Budgetary Support and Expenditure during the Eleventh Plan-Ministry of Mines
(At current prices)
(Rs crore)

Sl.No Organisation Eleventh Annual Annual Annual Likely

/PSU Plan Plan 2007- Plan 2008- Plan 2009- Expenditure
Gross 08 09 10 In first 3
Budgetary (RE) years of the
Support Eleventh
(GBS) Plan
1. Geological 1,020.00 119.94 133.80 143.00 396.74
Survey of India
(Including
Construction)
2. Indian Bureau of 90.00 16.06 20.44 20.00 56.50
Mines
(Including
Construction
3. Mineral 50.00 11.00 9.00 10.00 30.00
Exploration
Corporation
Limted
(Promotional)
4. Science 20.00 1.75 3.00 3.00 7.75
&Technology
Programme
Total 1,180.00 148.75 166.24 176.00 490.99

Source: Ministry of Mines

 6
Education
6.1 The Eleventh Plan placed great education, while the Central Government’s
emphasis on expanding access to education at expenditure (as a share of GDP) has steadily
all three levels – elementary education, increased since 2001-02 (Table 6.1), the States’
secondary education and higher education - share on the other hand has declined pari
also improving the quality of education. The passu. As a result, the total expenditure of the
Plan envisaged a substantial increase in the Centre and States combined, has registered a
share of Central Sector Plan resources devoted modest decline from 3.81 per cent of GDP in
to education and contained several initiatives in 2001-02 to 3.78 per cent of GDP in 2008-09
each of the levels mentioned above. Progress
in each area in the Eleventh Plan period is SCHOOL EDUCATION AND LITERACY
reviewed separately.
6.3 School Education and Literacy has been
6.2 With regard to public expenditure on given a very high priority in the Eleventh Plan

Table 6.1
Public Expenditure on Education
S.No Year GDP at current Total Expenditure on Education by Education & Other Departments
prices (Rs. in crore)
(at factor cost) States Centre States + States as Centre (States +
(Rs. in crore) Centre %age of as %age Centre)as
GDP of GDP %age of
GDP
1. 2001-02 20,97,726 65,746.2 14,119.5 79,865.7 3.13 0.67 3.81

2. 2002-03 22,61,415 69,350.7 16,156.6 85,507.3 3.07 0.71 3.78

3. 2003-04 25,38,170 71,978.3 17,101 89,079.3 2.84 0.67 3.51

4. 2004-05 28,77,701 78,668.1 18026 96,694.1 2.73 0.63 3.36

5. 2005-06 32,82,385 90,018.9 23,209.8 1,13,228.7 2.74 0.71 3.45

6. 2006-07 37,79,385 1,03,147.5 34,017.6 1,37,165.1 2.73 0.91 3.64

7. 2007-08 (RE) 43,20,892 1,23,325.3 38,107.2 1,61,432.5 2.85 0.88 3.74

8. 2008-09 (BE) 49,33,183 1,40,094.5 46,237.5 1,86,332 2.84 0.94 3.78

P = Provisional estimates RE= Revised Estimates BE = Budget Estimates
Note: -
1. GDP figures are on the base year 1999-00 series.
2. GDP figures are taken from National Accounts Statistics 2009 published by Central Statistical Organization(CSO).
3. Other Departments include Departments/Ministries such as Agriculture, Health & Family Welfare, Labour & Employment,
Science & Technology, Tribal Affairs, Post & Telegraphs, Home Affairs, Commerce, Railways, Defence , etc . .
Source: MHRD, D/o Higher Education, Planning, Monitoring and Statistics Bureau, 2008-09.
 124 Mid-Term Appraisal of the Eleventh Five Year Plan

as an instrument for achieving inclusive growth. Infrastructure Development in Minority

Institutions. They are briefly described in Box
Elementary Education 6.1

6.4 Elementary education covers Classes I 6.5 The allocation for elementary education
– VIII, with Classes I-V categorised as primary in the first four years of the Eleventh Plan is
and Classes VI- VIII as upper primary. However, Rs.87,171 crore and the expenditure anticipated
some States and Union Territories such as for the first three years is Rs. 58,777 crore.
Andhra Pradesh, Assam, Gujarat,
Lakshadweep, Karnataka, Kerala, Maharashtra, 6.6 Sarva Shiksha Abhiyan (SSA)
Mizoram, Orissa, Dadra and Nagar Haveli, launched in 2001-02 is implemented in
Daman & Diu and Goa and have assigned partnership with the States and is the main
Elementary cycle covering Classes I to VII. vehicle for providing elementary education to all
Major schemes in Elementary Education include children in the 6-14 age-group. It encompasses
Sarva Shiksha Abhiyan, Mid-Day Meals in all activities of school education viz. providing
Schools, Mahila Samakhya, Teacher Education, physical infrastructure, free textbooks for
Providing Quality Education in Madarsas, and children, encouraging enrolment of girls and

Box 6.1
Elementary Education (EE) Schemes at a glance
Sl. Scheme Objectives Coverage
No
1. SSA • To provide universal elementary • Universal
education • Targets geographical
• Universal access and retention areas in districts and
• Bridging of gender and social category blocks with
gaps in EE predominance of SC, ST,
• Significant enhancement in learning OBC and Minority
levels of children population (441 districts).
2. MDMS • Improving the nutritional status of children • Covers Government,
in classes I-VIII local body and
• Encouraging poor children, belonging to Government aided
disadvantaged sections, to attend schools schools and EGS/AIE
more regularly and help them concentrate centres throughout the
on classroom activities country
3. Teacher Education • To create a sound institutional • Almost Universal
infrastructure for pre-service and in-
service training of teachers
• To provide academic resource support to
elementary and secondary schools
4. Mahila Samakhya • To enhance the self image and self • Ten States viz. Andhra
confidence of women Pradesh, Assam, Bihar,
• To create an environment where women Chhattisgarh, Jharkhand,
can seek knowledge and information Karnataka, Kerala,
which empowers them to play a positive Gujarat, Uttar Pradesh
role in society and Uttaranchal.
5. (i) Scheme for • To bring about qualitative improvement in • The schemes will cover
Providing Quality Madarsas and to introduce science, the entire country but it is
Education in mathematics, social studies, Hindi and voluntary for minority
Madarsas (SPQEM) English in the curriculum institutions to seek
and (ii) Scheme for • To augment infrastructure in private central assistance.
Infrastructure aided/unaided minority
Development in schools/institutions to enhance quality of
Minority Institutions/ education
Schools (IDMI).
 Education 125

teacher training. It addresses the educational 6.8 SSA has ensured almost universal
needs of about 19.4 crore children in over 12.2 access to primary education. The following
lakh habitations through 11.07 lakh schools- achievements are worth noting:
primary (7.86 lakh) and upper primary (3.21
lakh) schools, and 0.87 lakh non-formal • The number of rural habitations with
education centres under Education Guarantee access to a primary school increased
Scheme (EGS) and Alternative and Innovative from 87 per cent in 2002 to 99 per cent in
Education (AIE). 2008, and that of an upper primary school
from 78 per cent to 92 per cent during the
6.7 The fund-sharing arrangement between same period.
the Centre and the States was 75:25 in the
Tenth Plan and 50:50 in the Eleventh Plan. • In absolute terms, the enrolments in
However, in view of persistent demand from primary classes (I-V) increased from 11.4
States, the funding pattern for the Eleventh crore in 2001-02 to 13.6 crore in 2007-08
Plan was modified to a tapering-off ratio of and that for upper primary classes (VI-
65:35 for the first two years, 60:40 for the third VIII), from 4.5 crore to 5.68 crore.
year, 55:45 for the fourth year and 50:50
thereafter. The Eleventh Plan outlay for SSA is • The Gross Enrolment Ratio (GER) at
Rs.71,000 crore (including funding obtained primary level improved from 96.3 per cent
from the education cess). The allocation for in 2001-02 to 114.6 per cent in 2007-08,
SSA in the first four years of the Eleventh Plan that for upper primary from 60.2 per cent
is Rs. 51,871 crore and the anticipated to 77.5 per cent and in the total
expenditure during the first three years of the elementary cycle (I-VIII) from 82.4 per
Plan is Rs. 37,217 crore. cent to 100.5 per cent.

Table 6.2
Gross Enrolment Ratio by Social Classification for Primary and Upper Primary Classes

Year Scheduled Castes Scheduled Tribes ALL Categories

Primary (Class I –V)
Boys Girls Total Boys Girls Total Boys Girls Total
2001-02 103.1 82.3 93.0 106.9 85.1 96.3 105.3 86.9 96.3
2002-03 101.4 89.4 95.6 104.8 92.3 98.7 97.5 93.1 95.3
2003-04 93.1 83.0 88.3 94.7 87.8 91.4 100.6 95.6 98.2
2004-05 123.3 106.6 115.3 128.1 115.5 121.9 110.7 104.7 107.8
2005-06 126.3 110.2 118.6 131.4 120.0 125.8 112.8 105.8 109.4
2006-07 131.5 115.3 123.7 134.3 123.8 129.2 114.4 107.8 111.2
2007-08 132.3 116.7 124.9 134.4 124.0 129.3 115.9 113.2 114.6
Upper Primary( Class VI-VIII)
2001-02 80.3 57.7 69.6 82.1 57.3 70.3 67.8 62.1 60.2
2002-03 63.2 48.6 56.3 55.0 40.8 48.2 65.3 56.2 61.0
2003-04 79.4 63.4 71.9 84.0 66.6 75.8 66.8 57.6 62.4
2004-05 77.9 61.5 70.2 73.9 69.5 67.0 74.3 65.1 69.9
2005-06 81.0 65.1 73.5 77.5 64.9 71.5 75.2 66.4 71.0
2006-07 83.1 67.3 75.7 80.2 68.2 74.4 77.4 69.5 73.6
2007-08 84.1 67.7 76.3 80.2 68.2 74.4 80.6 74.1 77.5
Note: Gross Enrolment Ratio over 100 per cent implies enrollment of under age and over age children in a class
corresponding to the particular age group of the class.

Source: Selected Educational Statistics, MHRD (2005-06, 2006-07, 2007-08)

 126 Mid-Term Appraisal of the Eleventh Five Year Plan

• The gender gap in enrolment at implemented in 25 States and Union Territories

elementary level has impressively covering 6956 Early Childhood Care Education
declined from 17 to 7 percentage points. (ECCE) Centres, providing remedial teaching to
11.44 lakh girls, bridge course for 89,462 girls,
• The GERs in respect of SCs and STs at and providing uniforms etc. to 1.40 crore girls.
primary and upper primary levels have KGBVs are operating in 27 States/UTs through
increased at a faster rate than that for all 2,565 residential schools covering 1.96 lakh girls.
categories put together for the
corresponding period suggesting a Table 6.4
welcome narrowing of the gap (Table-6.2) Dropout Rates in Selected States
in 2007-08
• The dropout rate at primary level has (per cent)
declined from 39 per cent in 2001-02 to Sl. States Primary Elementary
25.55 per cent in 2007-08. However, the No
decline is less impressive at elementary 1 Bihar 46.89 70.69
level, where it declined from 55 per cent 2 Mizoram 45.68 60.55
to only 43.03 per cent, and continues to 3 Assam 22.19 73.54
remain high (Table 6.3 and 6.4) Girls’ 4 Jharkhand 9.40 N.A
dropout rate declined at a faster rate than 5 Rajasthan 46.57 62.33
that for boys. 6 West Bengal 35.87 63.87
National 25.55 43.03
Table 6.3 Average
Source: Selected Educational Statistics, MHRD (2007-
Trends in Dropout Rates (2001-02 to 2007-
08)
08)
Year Primary (I-V) Elementary(I-VIII)
6.10 SSA supports flexible strategies for Out
Boys Girls Total Boys Girls Total of School Children (OoSC) through bridge
2001-02 38.4 39.9 39 52.9 56.9 54.6 courses, residential camps and coaching, drop-
2002-03 35.85 33.72 34.89 52.28 53.45 52.79
2003-04 33.74 28.57 31.47 51.85 52.92 52.32
in centres, summer camps, etc. During 2008-09,
2004-05 31.81 25.42 29 50.49 51.28 50.84 34,510 EGS centres covering 26 lakh children in
2005-06 28.71 21.77 25.67 48.67 48.98 48.8 unserved habitations and 1.0 lakh AIE centres
2006-07 24.41 26.56 25.43 46.58 45.33 46.03 covering 35 lakh children were functioning. As a
2007-08 26.19 24.82 25.55 44.29 41.43 43.03 result of the enrolment drives, the number of
Source: Selected Educational Statistics, MHRD (2005-06,2006-07, OoSC declined from 3.20 crore in 2001-02 to
2007-08)
28.69 lakh in 2009. However, an independent
• The GER for SCs at elementary level study1 has estimated a higher number of OoSC
(Class I-VIII) has gone up from 85.6 per i.e. 81.51 lakh.
cent in 2001-02 to 106.9 per cent in 2007-
6.11 The progress under SSA upto March
08 and the same for STs from 88.9 per
2009 includes opening of 3 lakh new schools,
cent to 109.6 per cent. However, while
construction of 2.42 lakh school buildings, 10.33
GER for SCs/STs shows a rising trend, the
lakh additional classrooms, 1.88 lakh drinking
social gaps in dropout rates appear to be
water facilities and 2.88 lakh toilets, supply of
widening as nearly 52.62 per cent of SC
free textbooks to 9.54 crore children and an
children and 63.36 per cent of ST children
annual in-service training of 26.62 lakh
drop out at elementary level. In large
teachers.
States like Uttar Pradesh, Bihar and
Rajasthan, over 50 per cent of SC children
do not go beyond primary level of
education.
1
Indian Market Research Bureau (IMRB), Social and
6.9 SSA focuses on girls’ education through Rural Research Institute, New Delhi, 2009.
the National Programme for Education of Girls at
Elementary Level (NPEGEL) and the Kasturba
Gandhi Balika Vidyalayas (KGBVs). NPEGEL is
 Education 127

6.12 A critical element of the Eleventh Plan education. This will also require sensitization of
strategy in education was to achieve a paradigm parents through orientation.
shift from access to quality. Over 12 lakh,
teachers’ posts have been sanctioned and 6.15 Systemic issues like teacher
10.22 lakh recruitments reported. This has absenteeism, single teacher schools and multi-
improved the Pupil Teacher Ratio (PTR) in grade teaching need to be resolved. Other
primary schools from 36:1 in 2006-07 to 34:1 in issues which need to be addressed include
2008-09 while at upper primary level it improved equity concerns of disadvantaged, vulnerable
from 32:1 to 31:1 during the same period. social groups and urban-deprived groups with
Provision has been made for at least two regard to access and retention; quality issues
teachers per primary school and for subject impacting upon the learning outcomes of
teachers for mathematics and science in upper children; decentralization of recruitment of
primary schools. Temporal Student Learning teachers and decision-making, filling up the
Achievement Survey of NCERT, 2005-07 shows teacher vacancies, teacher absenteeism and
improvement across the States though it is not accountability. All these issues must be
commensurate with the investment. In view of addressed on priority and sustained efforts must
lower learning outcome in mathematics and continue so that these issues are resolved
science, as reported in the NCERT survey, urgently. Early primary dropouts (classes I and
2002 emphasis has been placed on II) around 18-20 per cent should be stemmed.
appointment of subject teachers particularly in SSA’s impact in areas listed in Schedule V and
mathematics and science. SSA has a VI of the Constitution (dealing with Scheduled
component of Computer Aided Learning (CAL), Areas and Scheduled Tribes as well as Tribal
wherein a provision of Rs 50 lakh per district Areas), SC, ST, Muslim concentration and
has been made as Innovation Fund. This is with slums has not been very significant. While the
focus on upper-primary for enhancement of educationally advanced States like Tamil Nadu,
quality in teaching of Science and Mathematics Kerala and Karnataka have considerably
and covers hardware, software, maintenance, accelerated their overall performance, some
training and resource support. This scheme is States in northern and eastern regions including
operational in partnership with 69 private NER, still have problems in terms of access,
organizations / NGOs covering over 48 lakh equity and quality. Expenditure under SSA has
students in 26,000 schools. As many as 32 been sluggish in Bihar, Jharkhand,
States/UTs have undertaken learning Chhattisgarh, Rajasthan and West Bengal with
enhancement programmes in 2009-10. higher proportion of spill-over civil works.

6.13 Innovative pedagogies like activity- Mid-Day Meal in Schools (MDMS)

based child-centric learning (adopted in Tamil
Nadu, Rajasthan and Uttarakhand) have been 6.16 The Mid-Day Meal scheme was
successful in making learning joyful and these launched in 1995 to support Universalisation of
could be encouraged for adaptation by other Primary Education (UPE) by enhancing
States. Strengthening the evaluation system enrolment, retention, attendance and
and continuous systems of evaluation should simultaneously improving the nutritional status
be encouraged. School inspection system of primary school children. MDMS was
should be revived and reward system universalised in September, 2004 by providing
introduced to incentivize performance. hot cooked meals to all children in primary
classes. It was extended to upper primary
6.14 The Right of Children to Free and (classes VI to VIII) children in 3,479
Compulsory Education (RTE) Act, 2009 is a Educationally Backward Blocks (EBBs) in
landmark legislation which completes the October 2007 and then universalized at
Constitutional progress in this regard. The RTE elementary level in 2008-09. MDMS is the
will enforce the right of the child to demand biggest programme of its kind in the world that
eight years of quality education. Accordingly, provides cooked mid-day meals to the children
flexible approaches in consultation with States and covered about 11.19 crore children during
needs to be adopted to ensure that every child 2008-09 at elementary level. Implementation of
comes to school and completes his/her MDMS rests with States/UTs and the Central
Government provides foodgrains free of cost,
128 Mid-Term Appraisal of the Eleventh Five Year Plan

transport assistance, plus financial assistance Hyderabad). Feedback on MDMS shows a

for construction of kitchen sheds and positive impact on enrolment and attendance of
stoves/utensils. The Central Government bears children, particularly from weaker sections2,
the entire cost of foodgrains, transportation cost elimination of ‘classroom hunger’3, retention of
of foodgrains in 11 Special Category States at girls in schools and better learning
Public Distribution System (PDS) rates and in achievement4 and sharing of common meal
other States and Union Territories subject to the contributing to gender and social equity5. Audit
ceiling of Rs.75 per quintal, costs of kitchen Evaluation of C&AG (2009)6 noted
devices and Management, Monitoring & overwhelming public support for continuation of
Evaluation (MME). The expenditure towards MDMS and majority of parents and teachers
cooking cost of mid-day meal, construction of have reported a positive perception of its
kitchen-cum-store and honorarium to cook – impact.
cum-helper is shared between the Centre and
the North East States on 90:10 ratio and with 6.19 The National Sample Survey (61st
other States and Union Territories on 75:25 round) results (2004-05) show that the impact of
ratio. However, some States and Union MDMS has been significant, particularly in rural
Territories contribute more than their share. areas. It is reported that MDMS has covered
73.1 per cent of rural population in the age
6.17 The Eleventh Plan outlay for MDMS is group of 6-14 of the rural population in 2008-09.
Rs.48,000 crore. The allocation during the first While States like Tamil Nadu, Gujarat and MP
four years is Rs 32,764 crore and the have been implementing MDMS with
anticipated expenditure during the first three systematised procedures and accountability at
years of the Eleventh Plan is Rs. 19,882.46 State and sub-State levels, some States,
crore. The coverage of the scheme during 2007- especially in the northern and eastern region
08 and 2008-09 has been 9.54 crore children in including North East Region (NER), are in the
primary and 11.19 crore children in primary and process of systematising their procedures fully.
upper primary taken together. During 2009-10, MDMS is monitored by 42 national level
MDMS is expected to cover 11.77 crore institutions including some of the Indian
children. So far, Central assistance has been Institutes of Management. According to reports,
released for 8.07 lakh schools for construction in educationally backward States of Bihar,
of kitchen sheds and 11.10 lakh schools for Jharkhand, Chhattisgarh, and UP as well as
kitchen devices. MDMS engages about 15.7 some of the areas listed in Schedule V and VI of
lakh cooks, of which 85 per cent are women. the Constitution, which were not implementing
Cooks belonging to Scheduled Castes and MDMS in all the schools, showed low
Tribes account for 37 per cent, those belonging attendance rates. In States such as
to Other Backward Classes for 35 per cent and Maharashtra and Gujarat where elementary
minorities 7 per cent. Assuming half a day’s education is up to Class VII, children in
work, per person in cooking, cleaning etc, secondary schools were left out of the scheme
MDMS generates about 150 million person days even though they are only in Class VIII . The
of direct employment, per annum. Though the implementation of MDMS in aided schools and
involvement of teachers and students in cooking Education Guarantee Scheme (EGS) centres
and other activities is not envisaged in MDMS, it was partial.
is found that in some cases, they too are
engaged in these activities. 2
Sen, Amartya, Pratichi Research Team “Cooked Mid-
Day meal programme in West Bengal - A study of
6.18 MDMS is managed and implemented by Birbhum district”,2005.
School Management and Village Education 3
Dreze, Jean and Goyal, A., “Future of Mid Day
Committees, Panchayati Raj Institutions, Self Meals”, Economic and Political Weekly, Vol. 38,
Help Groups and is not contractor driven. No.44, 2003
4
NGOs are also engaged for increasing NCERT, 2005
5
participation and wider reach. Some NGOs University of Rajasthan and UNICEF (2005),
“Situation Analysis of Mid- Day Meal Programme in
have already commenced centralised Rajasthan”.
automated cooking (e.g. Akshaya Patra in 6
Compendium of Performance Audit Review by
Bangalore and Naandi Foundation in Comptroller and Auditor General of India, Audit
Evaluation of Mid Day Meal Scheme, 2009.
 Education 129

6.20 Areas of concern include (i) wide knowledge and information to make informed
variations in enrolment, attendance and actual choices. MS is implemented in 9 States
coverage of children; (ii) Poor implementation in covering 83 Districts and 339 Blocks (including
States/regions like Bihar, Jharkhand, UP, 233 EBBs) and 20,380 villages and has
Chhattisgarh and Orissa; (iii) mismatch of specialised inputs for vocational and skill
foodgrains and cash fund utilization and lack of development as well as educational
transparency; (iv) cumbersome procedures for development of girls and adolescent girls in
releasing funds by States for cooking costs, particular. MS runs some of the best residential
affecting implementation adversely (v) lack of schools and bridge courses. The anticipated
quantity and quality control for meals, irregular Central expenditure in the first three years of the
and uncertain supply of meals and poor quality Eleventh Plan was Rs.114 crore against an
of grains in some States; (vi) engagement of outlay of Rs 210 crore.
teachers/children in procurement and cooking
and lack of safety measures; (vii) Lack of 6.24 The Area Intensive and Madarsa
convergence with the school health programme Modernisation Programme (AIMMP), a
for health check up and supply of micro composite scheme has been revised as two
nutrients and (viii) inadequate monitoring, distinct schemes. In order to provide the
supervision and management structures. children of the educationally backward Muslim
minorities who attend Maktabs and Madarsa
Restructuring and Reorganizing of with access to education in modern subjects,
Teacher Education Scheme: the Central Government has been implementing
the Area Intensive and Madarsas Modernisation
6.21 The Teacher Education Scheme has Scheme. The scheme as implemented during
built up a large institutional base with 571 the Tenth Plan had two components, namely
District Institutes of Education and Training infrastructure support for educational institutions
(DIETs)/District Resource Centres (DRCs), 104 catering to educationally backward population
Colleges of Teacher Education (CTEs) and 31 and introduction of modern subjects in
Institutes of Advanced Studies in Education traditional institutions of Madarsas. Two
(IASEs), of which 529 DIETs and all CTEs components of infrastructure and modernisation
/IASEs are functional. The Eleventh Plan have been separated in the Eleventh Plan as
allocation is Rs.4, 000 crore and the allocation the target groups for the two components are
for the first four years is Rs.1474.34 crore. different. (i) Scheme for Providing Quality
However, the expenditure for the first three Education in Madarsas: The objective of the
years of the Eleventh Plan was around Scheme is to encourage traditional institutions
Rs.894.95 crore, as the existing scheme of like Madarsas and Maktabs by giving financial
teacher education was under evaluation. Since assistance to introduce science, mathematics,
the evaluation of teacher education scheme has social studies, Hindi and English in their
been completed, the revised Teacher Education curriculum so that academic proficiency for
Scheme would now become operational and classes I-XII is attainable for children studying in
higher expenditure is expected. Barring these institutions. However, the process of
exceptions, the functioning of DIETs, State modernization of traditional Madarsas and
Institutes of Educational Management and Maktabs will be voluntary. The scheme will
Training (SIEMATs) and State Councils of provide opportunities to students of these
Educational Research and Training (SCERTs) institutions to acquire education comparable to
leaves much to be desired. the National Education System especially for
secondary and senior secondary levels. (ii)
6.22 Teachers’ accountability and motivation Scheme for Infrastructure Development in
remains an area of concern as the existing Minority Institutions: The scheme for
mode of recruitment of teachers and their Infrastructure Development of private
training are inadequate to ensure better aided/unaided Minority Institutes (IDMI)
learning outcomes. (elementary/ secondary/senior secondary
schools) would facilitate education of minorities
6.23 Mahila Samakhya (MS) endeavours to
by augmenting and strengthening school
create an environment for women to learn at
infrastructure at elementary/secondary/senior
their own pace, set their own priorities, seek
130 Mid-Term Appraisal of the Eleventh Five Year Plan

secondary minority schools and expand facilities Vidyalaya Samiti (NVS), National Institute of
for formal education to children of minority Open Schooling (NIOS), National Council of
communities. The scheme will, inter alia, Education Research and Training (NCERT),
encourage educational facilities for girls, Central Board of Secondary Education (CBSE)
children with special needs and those who are and Central Tibetan School Administration
most educationally deprived amongst minorities. (CTSA).
These schemes have been transferred from the
Department of Higher Education to the 6.29 Kendriya Vidyalayas (KVs) primarily
Department of School Education and Literacy. cater to the educational needs of the wards of
transferable Central Government employees
SECONDARY EDUCATION including defence personnel. There are 981 KVs
with 10.16 lakh students.. The total sanctioned
6.25 Secondary Education deals with strength of teachers in 981 Kendriya Vidyalayas
Classes IX-XII and serves as a bridge between is 40,552 and the student teacher ratio is 25:1.
Elementary and Higher Education preparing Performance of the students in Board
young persons in the age group of 14-18 years Examinations in Class X and XII has been
for entry into Higher Education. Following the above the Central Board of Secondary
RTE and success of SSA, it has become Education (CBSE) average. There are no KVs
essential to move towards Universalising in the civil sector in 275 districts in the country.
Secondary Education. The Government has set Planning Commission has supported the
its vision on making secondary education of proposal of setting up of new KVs in metros,
good quality available, accessible and extremism affected areas and such areas where
affordable to all young persons in the age group there is a concentration of defence
15-16 years. establishments and personnel as well as in the
Bundelkhand region.
6.26 There are 1.69 lakh secondary schools
in the country of which 63 per cent are under 6.30 The Jawahar Navodaya Vidyalayas
private management. The share of private (JNVs) schools are fully residential co-
unaided secondary schools has increased from educational institutions from Class VI up to
15 per cent in 1993-94 to 35 per cent in 2006- senior secondary stage providing free boarding,
07. lodging, textbooks and uniforms to all students.
There are 576 JNVs with 2.07 lakh students, of
6.27 There is considerable scope for Public
which SCs and STs constitute 24 per cent and
Private Partnership (PPP) in this sector. Public
17 per cent, respectively. Seventy JNVs have
sector should concentrate on opening new
been recently sanctioned in districts with SC
secondary schools in unserved and difficult
and ST concentration. The performance of JNV
areas, organising second shifts in thickly
students in Class X and XII examinations of the
populated areas and upgrading existing upper
CBSE has been excellent. Additional JNVs are
primary schools into secondary schools,
required in highly populated districts like
particularly in States like Uttar Pradesh, West
Midnapore (West Bengal), several districts of
Bengal where educational institutions at
Bihar and Uttar Pradesh and in some tribal
secondary level have remained largely with
districts like Bastar (Chhattisgarh).
private sector. Secondary education reforms
should include dismantling entry barriers, 6.31 National Institute of Open Schooling
revision of land norms and procedural changes. (NIOS) is an autonomous organization providing
All unrecognised schools that meet the continuing education, from primary to pre-
prescribed norms should be considered for degree, to those who have missed the
recognition. opportunity to complete schooling. NIOS
provides flexible and learner centric quality
Review of the Eleventh Plan: Central Sector
school education, skill upgradation and training
Schemes
through open and distance learning. Currently,
6.28 In the Secondary Education, there are 16 lakh students are enrolled in NIOS with an
six apex level National Institutions: Kendriya annual admission of 3.71 lakh. The Accredited
Vidyalaya Sangathan (KVS), Navodaya Vocational Institutes (AVI) for vocational
education under NIOS need to be expanded
 Education 131

and rated for infrastructure facilities and education by 2017 and universal retention by
performance. 2020. The fund-sharing arrangement between
the Centre and the States for the scheme is
6.32 National Council of Educational 75:25 in the Eleventh Plan and 50:50 in the
Research and Training (NCERT) provides Twelfth Plan. For North- East States, the fund
technical and academic support to the MHRD sharing ratio is 90:10 in both Plan periods.
and State Governments for quality improvement Major targets include (a) strengthening of
in terms of curriculum, preparation of textbooks 44,000 existing secondary schools, (b) opening
and teaching learning material for school of 11,188 secondary schools, mostly through
education. The NCERT continues to carry out up-gradation of upper primary schools, (c)
its major ongoing programmes: preparation of appointment of 1.79 lakh additional teachers,
textbooks based on National Curriculum and (d) construction of 80,500 additional
Framework 2005; Jawaharlal Nehru National classrooms. However, the progress has been
Science Exhibition for Children; support to State very slow as proposals from States and Union
level science exhibitions; National Talent Territories are still under preparation. Since the
Search Examination; National Awards for scheme targets existing government schools,
Innovations in Teacher Education and School some States like West Bengal and UP with a
Education; and National Awards for Best low proportion of Government schools in
Practices in Vocational Education. NCERT is secondary sector may not get an equitable
engaged in conducting the Eighth All India share of RMSA funds. Therefore, RMSA needs
School Education Survey (AISES). equitable fund allocation criteria, with two-third
weightage to enrolment in upper primary
6.33 Central Tibetan School
schools and one-third to child population of the
Administration (CTSA) runs about 71 schools
relevant age group. There should also be
for children of Tibetan refugees, mainly in the
flexibility to cover Government aided schools
Tibetan Settlement Areas and in 2008-09,
with infrastructure support, including library and
10,052 students were on roll. In 2009 CBSE
laboratory facilities.
examination, CTSA schools achieved a pass
percentage of 92.77 in Class X and 91.15 in 6.36 Model Schools: Out of 6,000 model
Class XII as compared to national CBSE schools to be set up under the Eleventh Plan,
average of 88.84 per cent and 81 per cent 3,500 schools have been approved in KV
respectively. template to be set up in Educationally Backward
Blocks (EBBs) in the first phase. So far, 327
New Initiatives model schools are recommended to be set
6.34 The Government of India has launched up.The fund-sharing arrangement between the
new Centrally Sponsored Schemes of Rashtriya Centre and the States is 75:25 for all other
Madhyamik Shiksha Abhiyan (RMSA), Model States i.e. excluding Special Category States
Schools, National Means-cum-Merit Scholarship (eight NE States, J&K, HP & Uttarakhand)
(NMMS), National Scheme of Incentive to Girls which has a ratio of 90:10. The progress of this
for Secondary Education, Inclusive Education of scheme is also very slow, as States are taking
the Disabled at Secondary Stage (IEDSS) and considerable time to prepare viable proposals.
Scheme for Girls’ Hostel. Setting up 2,500 Model schools in PPP mode
should be accorded priority.
6.35 Rashtriya Madhyamik Shiksha
Abhiyan (RMSA) is a major scheme launched 6.37 National Means cum Merit
in March, 2009 with the objectives of making Scholarship Scheme (NMMS) was launched in
secondary education of good quality available, June, 2008 with a provision to award one lakh
accessible and affordable to all young persons scholarships every year to selected candidates
in the age group 15-16 years, removing gender, @ Rs.6,000 per annum (i.e. Rs.500/- per
socio- economic and disability barriers, making month) for study in Classes IX – XII. The total
all secondary schools conform to prescribed number of selected candidates in 2009-10 was
norms, achieving a GER of 75 per cent in 24,521 in 27 States/UTs and it was reported
secondary education in a period of five years, that eight States/UTs did not send their
providing universal access to secondary level proposals. Presently over 75, 000 students are
132 Mid-Term Appraisal of the Eleventh Five Year Plan

availing scholarship under this scheme. This is 6.40 The Information and Communication
a Centrally Sponsored Scheme but funding is Technology (ICT) in Schools Scheme aims at
entirely provided by the Central Government. imparting computer literacy through grants to
MHRD has made state-wise allocation on the States and Union Territories. Up to 2008-09,
basis of two-third weightage to enrollment in 53,250 schools have been covered. The fund-
classes VII and VIII and one-third weightage to sharing arrangement between the Centre and
child population of the relevant age group. the States is 75:25 and while for North- East
States where the number of candidates selected States, the ratio is 90:10. Under the scheme, 31
is low or very low in comparison to their allotted KVs and 33 NVs have been assisted for
quota may require students coaching facilities converting them into SMART schools. The
either through State Plan Scheme or through scheme is revised to cover all Government and
RMSA and SSA. Government aided secondary and higher
secondary schools, in-service teachers’ training,
6.38 The National Scheme of Incentive to computer teachers, broad band connectivity and
Girls for Secondary Education aims at development of e-content. Convergence with
promoting enrollment of girls from the weaker the Ministries of Power, IT and New and
sections, to ensure their retention at least till Renewable Energy is needed.
Class X, and preferably Class XII, reducing
their drop out at secondary and higher 6.41 The Scheme of Financial Assistance
secondary stages, improving gender parity and for Appointment of Language Teachers has
empowering girls. The scheme is applicable for three components: (a) appointment and training
girls belonging to SC, ST, who pass Class VIII of Hindi teachers in non-Hindi speaking States
examination and to girls who pass from and Union Territories (b) Appointment of Urdu
Kasturba Gandhi Balika Vidyalayas (KGBVs) teachers and grant of honorarium for teaching
and join Class IX in Government, Government Urdu in States and Union Territories and (c)
aided and local body schools. A sum of Rs.3, appointment of teachers of Modern Indian
000 is deposited as a Fixed Deposit Certificate language. The scheme has been revised in
in the name of the eligible girl and the matured 2008-09, giving flexibility for appointment of
amount can be withdrawn by the girl subject to Urdu teachers in any locality where more than
her attainment of 18 years of age and passing 25 per cent are from Urdu speaking group, 100
Class X and remaining unmarried. An amount per cent central assistance for salary of Hindi/
of Rs.103.60 crore sanctioned for 3.45 lakh girls Urdu teachers and training of Urdu teachers by
from 20 States and Union Territories in 2008-09 three Central Universities (Jamia Milia Islamia,
has been released to States for depositing with Aligarh Muslim University and Maulana Azad
SBI to issue fixed deposit certificates. Under the National Urdu University).
Girls` Hostel Scheme, 287 proposals have
been recommended by MHRD to set up hostels 6.42 Vocationalisation of Secondary
either in KGBV, Model schools or in Education provides for diversification of
Government Secondary/ Senior Secondary educational opportunities for enhancing
Schools in five States. individual employability and reducing mismatch
between demand and supply of skilled
6.39 The Scheme of Integrated Education manpower. The scheme as revised in 1992-93
for the Disabled Children (IEDC) launched in has been in operation since then with an
1974 continued up to 2008-09 and during 2007- enrollment of over 10 lakh students in 9619
08 and 2008-09, 6.7 lakh children were schools and since inception total central
assisted. The scheme has been revised as assistance is Rs.765 crore. The Eleventh Plan
Inclusive Education for the Disabled at envisaged expansion of vocational education
Secondary Stage (IEDSS) and is operational coverage to 20,000 schools with an intake
from 2009-10. The issues of recruitment of capacity of 25 lakh by 2011-12. Vocational
special teachers, orientation of teachers and education faces many problems - lack of social
development of pre-service training curriculum recognition, inflexible curriculum and duration,
and involvement of NGOs have to be lack of need-based courses and trained
addressed. teachers, poor vertical mobility and linkage with
industry and absence of national competency
 Education 133

and accreditation system. The scheme which is women, while 22 per cent and 12 per cent
being restructured on the recommendations of belong to SCs and STs, respectively.
the Task Force on Skill Development (2006)
and will now aim at preparing educated, Review of the Eleventh Plan
employable and competitive human resource for
various sectors of the economy and the global 6.46 The amalgamated Scheme of Support
market, enhancing the employability of youth to Voluntary Agencies for Adult Education
through competency based modular vocational and Skill Development has two principal
courses, providing multi-entry and exit learning components viz. (i) Assistance to Voluntary
opportunities and vertical mobility and Agencies in the field of Adult Education, and (ii)
interchangeability in qualifications. Jan Shikshan Sansthans (JSSs). The merged
scheme provided for enhancement in financial
6.43 The allocation for Secondary Education support to State Resource Centres (SRCs),
in the first four years of the Eleventh Plan is Rs. establishment of 14 new SRCs, provision of one
17,041.99 crore. The expenditure during the first time infrastructure grant of Rs. 50 lakh to new
three years of the Eleventh Plan is likely to be SRCs, enhancement of financial assistance for
Rs. 7,467 crore i.e. about 14 per cent of the category A, B and C of JSS and establishment
total Eleventh Plan allocation of Rs 53,550 of additional 50 new JSSs. Neo-literates need to
crore, which is very low. This is inter alia due to be provided marketable skills so as to improve
the delayed launch of new CSS and time taken their livelihood opportunities through JSS.
by States to prepare project proposals.
6.47 The quality and performance of NGOs
ADULT EDUCATION under JSS should be regularly monitored and
evaluated by independent agencies and
6.44 Literacy is the most essential accreditation process evolved by the Central/
prerequisite for individual empowerment. The State governments to weed out the poor
National Literacy Mission (NLM) was set up in performers. JSS should run literacy linked
1988 with an aim to achieve 75 per cent literacy vocational education programmes for people not
by 2007. As per 1981 Census, the literacy rate going beyond Maktabs (Pre-Madarsa education)
in India was 43.6 per cent. Dominant strategies in Muslim concentrated districts.
of the NLM and the Total Literacy Projects
(TLP) have yielded some positive outcomes. 6.48 The constraints in the implementation of
Literacy rate moved to 52.21 per cent in 1991 adult education programmes such as
and further increased to 64.8 per cent in 2001. inadequate participation of State governments,
As per 2001 Census, urban-rural literacy low motivation and training of voluntary teachers
differential also declined and literacy rate for and preraks, lack of convergence of
females increased at a faster rate (14 per cent) programmes under CEP, and weak
than that for males (12 per cent). However, management and supervision structure for
gender and regional disparities persist. For implementation for NLM needs to be addressed.
instance, literacy rate among the Muslim
6.49 Saakshar Bharat: A new Mission
minority was six percentage points lower than
`Saakshar Bharat’ was launched by the Prime
the corresponding figure for all others. The
Minister on 8 September, 2009. It endeavors to
Eleventh Plan target for literacy is 80 per cent
create a literate society through a variety of
by 2011-12.
teaching learning programmes for neo-literates
6.45 Out of the 623 districts in the country, of 15 years and above. The new Mission has
597 have been covered under Adult Education targeted 70 million beneficiaries, of which 60
programmes and currently, 95 districts are million are women and nearly 50 per cent of the
under Total Literacy Campaigns (TLC), 174 target groups comprise SCs /STs and
under Post Literacy Programme (PLC) and 328 minorities. The programme will focus on rural
under Continuing Education Programme (CEP). areas, especially districts with low (50 per cent
There are 26 Resource Centres in various and below) female literacy rates. Nearly 1.70
States besides, 271 Jan Shikshan Sansthans lakh Gram Panchayats in 365 districts will be
(JSS) providing vocational skills to neo-literates. covered. Residual illiteracy in urban areas will
About 60 per cent of the beneficiaries are be addressed through innovative partnership
134 Mid-Term Appraisal of the Eleventh Five Year Plan

with NGOs and private sector convergence. 6.52 India being a youthful nation has the
Funding under the new Mission will be routed opportunity to benefit from the demographic
through banking institutions and implementing dividend if we can ensure support and access to
agencies will have cheque drawing powers. higher education of the right quality. A recent
Innovative strategies and technology are study based on NSSO data shows that the rate
needed to impart sustainable literacy to millions of return to university and higher education is
of non- literates in a reasonable period of time very pronounced in India9. This augurs well for
using primary school within habitations, investing in higher and technical education for
incentivising existing and retired teachers as transforming India as a major knowledge
well as National Service Scheme (NSS) and economy.
Nehru Yuva Kendra Sangathan (NKYS)
volunteers. While there could be a special focus 6.53 The university and higher education
in 365 identified districts, some activities need to system, at present, comprises 504 universities
be sustained in other districts as well so that the of which 243 are State universities, 40 are
efforts of TLC, PLP and CEP do not taper off. Central Universities while 130 are Deemed
Universities and five institutions have been
6.50 The allocation for adult education in established under State legislation. There are
the first four years of the Eleventh Plan is Rs. 53 State private Universities and 33 Institutes of
1,994 crore and anticipated expenditure for the national importance established by Central
first three years of the Eleventh plan is around legislation. In addition, there are 25,951
Rs. 813 crore. The Eleventh Plan allocation colleges including 2,565 women’s colleges.
for Adult Education Programme is Rs. 6,000
crore. 6.54 The total strength of teaching faculty in
higher education is about 5.89 lakhs. There is a
HIGHER EDUCATION significant difference in the structure of teaching
faculty in university departments and in affiliated
6.51 Expansion, inclusion and excellence colleges. While research guiding faculty
along with equity and quality are the consisting of professors and readers account for
watchwords of the Eleventh Plan. The growth over 52 per cent in the former, this category is
of higher education institutions with requisite only 32 per cent in the latter. On the other hand,
faculty and infrastructure support has not kept while lecturers account for 30 per cent in the
pace with the increase in enrolments, and even former, it was 51 per cent in the affiliated
less in relation to the apparent and latent colleges. Affiliated colleges lack adequate
demand. The GER in higher education in India research guiding faculty and have poorer
is about half the world’s average GER (24 per student-faculty ratio (25:1) compared to
cent), two thirds of that of developing countries university departments and colleges (19:1).
(18 per cent) and way behind that of developed
countries (58 per cent). India had a higher Review of the Eleventh Plan: Higher
tertiary education GER in 1999 than that of Education
China (6.0 per cent). However, China’s GER
shot up to 22 per cent surpassing India’s by 6.55 The Eleventh Plan contained ambitious
about 10 percentage points in 20077. The targets for enhancing public spending,
growth of enrolment in higher education was encouraging private initiatives and initiating the
decelerating up to 2003-04 and remained more long overdue institutional and policy reforms.
or less constant for the next three years at The Plan set a target of increasing higher
around 5.2 per cent per annum. It improved to education GER to 15 per cent by 2011-12.
6.6 per cent in 2007-08 and recorded a much
faster increase of 13.1 per cent in the second 6.56 The Eleventh Plan strategies focused
year of the Eleventh Plan (2008-09)8. on providing equitable access, improving quality
and standards; evaluation and accreditation;
expansion and strengthening of infrastructure,
networking and digitisation, research and
7
EFA- Global Monitoring Report, “Education for All
9
by 2015, Will we make it? UNESCO, 2008 World Bank Report, The Knowledge Economy and
8
UGC Annual Report, 2007-08 Education and Training in South Asia, p30-31, 2007
 Education 135

development; strengthening of open and in the Eleventh Plan. These are in different
distance education system and of research stages of implementation. The measures
institutions. Restructuring and reforming the include, inter alia, implementing the
higher education system to improve accessibility recommendations of the Oversight Committee
and quality of services offered through greater (OSC) for 27 per cent reservation of seats for
autonomy and more participative governance Other Backward Class (OBC) students and also
are also key elements of Eleventh Plan of Sachar Committee; merit scholarship to 2
strategy. per cent of total enrolled students; setting up a
Higher Education Loan Guarantee Authority for
6.57 The Eleventh Plan envisages large students’ loan programme; supporting the
scale expansion in university education by universities and colleges located in border, hilly,
setting up 1455 new educational institutions remote, small towns and educationally
comprising 30 Central universities, 8 IITs, 8 backward areas and those with larger student
IIMs, 10 NITs, 20 IIITs, 3 IISERs, 2 SPAs, 374 population of SC / ST / OBC / Minority /
Model colleges and 1000 polytechnics. Physically challenged and girls besides
construction of 2000 girls’ hostels. Two
6.58 In all, 16 new Central universities have
campuses of Aligarh Muslim University are
been set up. Of these, 14 have become
being set up in West Bengal and Kerala.
functional in Bihar, Jharkhand, Orissa, Gujarat,
Haryana, Punjab, Rajasthan, Himachal 6.62 A new scheme has been launched to
Pradesh, Karnataka, Kerala and Tamil Nadu. cover top 2 per cent of the students after Class
These include the three State universities which XII (equally divided between boys and girls on
have been converted to Central universities. the basis of Class XII results), by providing them
Two new Central Universities, one each in with scholarship of Rs. 1000/- per month for 10
Jammu and in Kashmir valley in the state of J months in a year for undergraduate studies and
&K are being set up. All the North Eastern Rs. 2000/- per month for 10 months in a year for
States have a Central university each and post-graduate studies. Students securing 80 per
special funds have been provided to introduce cent and above marks in the Class XII or
engineering and management courses. Indira equivalent exams and not belonging to the
Gandhi National Tribal University has been set ‘creamy layer’, pursuing higher studies or
up at Amarkantak, Madhya Pradesh. SAARC professional courses from recognised
University is also being set up in Delhi under the institutions as regular candidates, are eligible
Ministry of External Affairs. under this scheme. In 2009-10, over 36,000
scholarships were sanctioned under the
6.59 With a view to reducing regional
scheme.
imbalances, 374 new degree colleges would be
set up in the backward districts out of which 200 6.63 The Scheme of interest subsidy on
colleges are targeted to be financed during loans taken for professional studies in India,
2009-10. The UGC has prepared guidelines for aims to provide for interest subsidy to the
these Model colleges and has invited proposals students, not belonging to the ‘creamy layer’ of
from the States. the population, on the interest payable for the
period of moratorium by such student for the
6.60 National Eligibility Test (NET) and State
loan taken by him / her under the Educational
Eligibility Test (SET) qualification is compulsory
Loan Scheme of the Indian Banks’ Association,
for appointment as Lecturers in the university
to pursue approved courses of studies in
system except for those with Ph.D from
professional education in institutions in India,
approved universities. To meet the shortage of
recognised by the concerned Statutory Bodies,
faculty in higher educational institutions, the
the Indian Institutes of Management and other
retirement age of teachers was raised in
institutions set up by the Central Government.
Centrally-funded educational institutions to 65
This scheme has also been approved for
years. The pay package for university teachers
implementation from the academic year 2009-
has also been revised substantially.
10.
6.61 In order to promote the goals of equity
6.64 The University Grants Commission
and inclusion, several measures were proposed
(UGC) is to set up Equal Opportunity Office in
136 Mid-Term Appraisal of the Eleventh Five Year Plan

all Central and State universities to make suggest, inter alia, a road map for its
operational all the schemes related to SCs, STs, implementation. The draft legislation for the
OBCs, Minorities, disabled students, girl establishment of NCHER as prepared by the
students and economically weaker groups Task Force is hosted in public domain on the
under one umbrella. MHRD website.

6.65 A National Mission on Education 6.68 The Government has prepared a

through ICT has been launched and is expected concept paper on national policy to attract talent
to provide internet connectivity with 10 MBPS for teaching and research which is under
bandwidth to over 20,000 colleges and 10,000 consideration. As regards innovation
departments in the universities. The mission has universities, many loose ends in the conceptual
two major components viz., (a) course content stage need to be addressed by the MHRD.
generation and related issues for all subjects
and all types of learners, and (b) connectivity 6.69 UGC has devised an Action Plan for
and access issues for institutions and learners. academic and administrative reforms in respect
About 50 per cent of funds is allotted for of semester system, choice-based credit
development of e-content and the remaining for system, curriculum development, admission
providing the broadband connectivity. As procedures and examination reform and has set
regards connectivity, an important feature is its a time line of two years for the Central
synergy with the National Knowledge Network universities, State universities, colleges and
thereby enabling a higher bandwidth of 1 GBPS other educational institutions to draw a road
for Universities and providing unified fibre map and action plan for implementation. The
instead of fragmented copper based Central Universities Act, 2009 has already
connectivity within the same cost parameters. mandated these reforms for the newly
While implementing the ICT Mission, the goals established 16 Central Universities. UGC has
of bridging the digital divide must be addressed issued guidelines for all Universities under
by ensuring that all knowledge domains have e- Section 12(B) which it funds to bring in these
content and that the tertiary general education is reforms and these are in different stages of
given equal importance with science and implementation by the universities.
engineering areas. Colleges and universities
6.70 The Central funding of State institutions
must become digital campuses with online
should be linked to the reforms and a MOU
teaching and virtual classrooms, like some of
signed between MHRD, UGC, States,
the IITs and IIMs.
universities and institutions for implementation
6.66 A Central Institute of Classical Tamil of time-bound reforms and outcomes.
(CICT) has been established in Tamil Nadu. Institutions need greater academic and
National Translation Mission has been launched functional autonomy, linked with accountability.
for translation of existing knowledge books in
6.71 Academic research also needs
English, into various other languages included
extensive reforms and standards for quality
in the Eighth Schedule of the Constitution.
need to be set. Ph.D scholars should be
Bharat Bhasha Vikas Yojana is a new scheme
allowed to undertake undergraduate teaching
proposed for preservation and development of
assignments and conduct tutorial and seminar
languages not covered under the Eighth
classes as is the global practice. Inter-
Schedule.
disciplinary studies and research need to be
6.67 The National Knowledge Commission encouraged. The issues related to intellectual
(NKC) has made important recommendations property rights (IPR), patents and copyrights
on higher education and research which are should be reviewed in the changing socio-
under consideration. The Committee for technological context. Research degrees from
Renovation and Rejuvenation of Higher some of the Open and Distance Learning ODL
Education headed by Prof. Yashpal has institutions are of low standards and the issue
recommended setting up of a National needs to be reviewed by an expert group.
Commission for Higher Education and Research
6.72 Another area which needs to be
(NCHER) replacing some existing regulatory
strengthened is capacity building and teacher-
bodies. A Task Force has been set up to
 Education 137

training and the current in-service teacher- hotel management and catering technology.
training under the Academic Staff College The Eleventh Plan envisages that intake of
(ASC) needs to be reviewed thoroughly. technical education institutions grows at 15 per
cent annually, to meet the skilled human
6.73 The existing deemed universities which resource needs of the growing economy. The
do not fulfill the norms and standards should be Eleventh Plan outlay for Technical Education is
de-recognised without affecting the career of the Rs.26, 300 crore and the allocation for the first
students. The status of deemed university four years Rs. 15,053 crore. The anticipated
should be conferred on a highly selective basis expenditure for the first three years is
on recorded norms, standards and rating by Rs.7,829 crore.
independent agencies.
Review of the Eleventh Plan: Technical
6.74 A provision of Rs.84,943 crore has been
Education
made for the Department of Higher Education
(DoHE) in the Eleventh Plan representing a 6.77 As on 30 June , 2009 there were 7,272
massive increase over the Tenth Plan outlay of technical institutions including management
Rs. 9,500 crore. The allocation for the DoHE institutions with an intake of 14.10 lakh for
during the first four years of the Plan is Rs. 34, degree and 2,324 diploma level institutions with
683 crore and anticipated expenditure during a total enrolment of 5.08 lakh students, thereby
the first three years is placed at Rs. 17,753.49 making an aggregate intake of 19.18 lakh
crore. Out of the total allocation of Rs.9,600 students. Thus, the total technical education
crore of the DoHE for the Annual Plan 2009-10, enrolment at 19.18. lakh accounts for only 9.48
UGC has been provided a grant of Rs.4,375 per cent of total higher education enrolments.
crore and the actual expenditure (fund certified) This is not adequate for a country of continental
as on 31 March, 2010 was Rs.3, 589.85 crore size. Another dimension is the skewed
i.e. 82 per cent. distribution of the existing technical institutions.
While the States of Bihar, Uttar Pradesh and
6.75 The DoHE needs to reprioritise the
West Bengal have a deficit of engineering
schemes since some of those proposed in the
colleges, Tamil Nadu, Andhra Pradesh,
Eleventh Plan have not yet fructified. The
Karnataka and Maharashtra have large
Department has made inter-se re-allocation of
concentration of private institutions. The
funds to meet additional requirements for
Government has expanded the students’ intake
Oversight Committee, language development,
both through creation of new institutions as well
new initiatives/schemes, within the overall
as by augmenting the intake by 54 per cent to
Development Grant of the UGC. There is a
provide OBC reservation.
need to realistically assess the utilisation and
non-utilisation of funds under various schemes 6.78 The number of AICTE approved
since some of the schemes were approved in technical institutions which was 5,269 at the
the third year of the Eleventh Plan and some beginning of the Eleventh Plan, has increased
other schemes such as setting up Innovation to 9,596 as on June 2009. These comprise
universities and support to uncovered colleges, 2,872 engineering and technology colleges,
among others, are yet to take off. Even the 1,659 polytechnics, 1,080 institutions for degree
schemes that were approved have been and 575 institutions for diploma in Pharmacy,
delayed and consequently need re-phasing. 179 schools for degree as well as diploma in
Hotel Management, 16 institutions for Art and
TECHNICAL EDUCATION Craft and 106 institutions for Architecture. For
6.76 Our technical workforce needs high postgraduate courses, there are 1,940
levels of knowledge and skills to deal with fast educational institutions for MBA/ PGDM and
changing technologies in order to successfully 1,169 for MCA. The public sector produces only
compete in the global labour market. The a small proportion of the engineering and
technical education covers courses and management graduates. Within the public
programmes, inter alia, in engineering, sector, the State technical institutions account
technology, management, architecture, town for a significant proportion, but these have not
planning, pharmacy, applied arts and crafts,
138 Mid-Term Appraisal of the Eleventh Five Year Plan

seen much investment in the current expansion set up in 2010-11. The intake capacity per IIM is
process which is a matter of concern. slated to increase from 140 students in the post-
graduate programme (PGP) course to 560
6.79 The All India Council of Technical students per year by the end of the Eleventh
Education (AICTE) has permitted second shifts Plan. The Bhargava Committee set up by
in certain engineering colleges and polytechnics MHRD reviewed the functioning of the IIMs and
to augment the intake capacity. National Board has made various recommendations in
of Accreditation (NBA) has revised the criteria September 2008, for expansion of intake
for accreditation of institutes to bring them at par capacity and PhD fellowships.
with international parameters.
6.83 In addition to the existing 20 National
6.80 Another area of concern is the skewed Institutes of Technology (NITs) with an annual
distribution of intake in the system. Most of the intake capacity of about 15,000 in engineering
enrolments at present are in few branches of and related subjects, ten more NITs have been
engineering and the intake in some core approved under the Eleventh Plan and will be
branches has been shrinking. This imbalance is set up in Arunachal Pradesh, Manipur,
likely to create underutilisation in the institutions Meghalaya, Mizoram, Nagaland, Goa (which
and cause acute shortage in specific fields such will also cater to Union Territories of Daman and
as civil engineering, which will hamper the Diu, Dadra and Nagar Haveli and
accelerated growth of real estate and Lakshadweep), Puducherry (which will also
construction sector that makes a robust cater to Andaman and Nicobar islands) Sikkim,
contribution to the GDP. AICTE has taken some Delhi, (which will also cater to Chandigarh) and
measures to overcome the imbalances. Besides Uttarakhand. The concerned State and Union
permitting second shifts in engineering and Territories are in the process of identifying
polytechnic institutions in select areas, it is now suitable land for the institutions.
mandatory for new institutions to have the
minimum conventional three branches of 6.84 Planning Commission has already
engineering. The impact of these measures accorded ‘in-principle’ approval for 20 new
needs to be assessed. Indian Institutes of Information Technology
(IIITs) in PPP mode during the Eleventh Plan
6.81 The intake of students at undergraduate which will be high quality autonomous
level in existing seven IITs at Delhi, Mumbai, institutions specialising in IT applications in one
Kanpur, Kharagpur, Chennai, Guwahati and or more domain areas, to be set up in
Roorkee has increased from 4,977 in 2008-09 partnerships with the States and industry.
to 5,464 in 2009-10. The Government has
approved setting up of eight new IITs in the 6.85 All the five Indian Institute of Science
States of Andhra Pradesh, Bihar, Rajasthan, Education and Research (IISERs) have started
Orissa, Punjab, Gujarat, Madhya Pradesh and functioning from temporary transit campuses-
Himachal Pradesh. All the eight new IITs have Pune and Kolkata in 2006-07, Mohali in 2007-
started functioning . 08, and Bhopal and Thiruvananthapuram in
2008-09 with a total intake capacity of 559
6.82 The total intake of the existing seven students. Construction of permanent campuses
Indian Institutes of Management (IIMs) has is in progress. Similarly, the two new Schools of
increased by 17 per cent from 1,426 in 2007-08 Planning and Architecture (SPAs) have been
to 2,100 in 2009-10. The RGIIM, Shillong set up at Bhopal in Madhya Pradesh and
(Meghalaya) has commenced its academic Vijayawada in Andhra Pradesh. The new SPAs
session from 2008-09 with an intake of 64 have started functioning from academic session
students. The Government has approved the 2008-09 from temporary premises.
setting up of new IIMs in the States of Tamil
Nadu, Jharkhand, Chhattisgarh, Uttarakhand, 6.86 The Government has approved setting
Haryana, and Rajasthan. In the first phase, four up of 1,000 new polytechnics- 300 polytechnics
IIMs at Tamil Nadu (Tiruchirappalli), Jharkhand under public sector for educationally backward
(Ranchi), Chhattisgarh (Raipur), and Haryana districts, another 300 through Public Private
(Rohtak) were to be set up in the 2009-10, Partnership (PPP) mode and the remaining 400
while IIMs at Uttarakhand and Rajasthan will be as private ones. The first installment of fund has
 Education 139

been provided to 228 polytechnics in uncovered learn” schemes to enable them to pursue their
and under-covered districts. About 500 existing goals.
polytechnics are proposed for strengthening and
up-gradation during the Eleventh Plan and 55 6.89 Technical Education Quality
polytechnics have been assisted so far. Improvement Programme (TEQIP-I) continued
Construction of 500 women’s hostels in to be implemented with the assistance of World
polytechnics was targeted under the Plan. 120 Bank as a Centrally coordinated Central and
polytechnics have been assisted by the middle State sector project with a total cost of Rs.
of the Plan period. 1,339 crore from March 2003 to March 2009,
(with a Central component of Rs.306 crore and
6.87 The availability of high-quality faculty is the State component of Rs.1,033 crore). The
a major challenge for effective implementation cumulative expenditure upto 31st March, 2009
of expansion plans. Therefore, special effort was Rs.1, 321.80 crore (99 per cent of the total
needs to be made for expanding the M.Tech. project allocation). A total of 127 Institutions
and Ph.D. programmes by: participated in TEQIP-I out of which 18 were
centrally funded and remaining 109 were State
• Enhancing direct Ph.D fellowships and
institutions. The overall performance has been
assistantships for a few top Graduate
satisfactory and in a number of indicators, the
Aptitude Test in Engineering (GATE)
achievement exceeded the target or the
qualifiers,
baseline. TEQIP-II is to be implemented as a
• Encouraging institutions to evolve Integrated Centrally Sponsored Scheme (CSS) with the
Ph.D programs in engineering for GATE assistance of the World Bank.
qualifiers (undergraduates),
6.90 During the Eleventh Plan, an amount
• Making GATE assistantship schemes of Rs.910 crore has been provided for
available in larger numbers to State strengthening 200 State Technical institutions.
technical institutions as well as to identified An Expert Committee has been constituted
quality private Institutions, which will lay down the parameters for selection
• Compulsory teaching assignment for Ph.D of the engineering institutions and the scheme
scholars for undergraduate and optional for will be the part of the TEQIP-II. Another Expert
Postgraduate courses, Committee has been constituted for preparing a
draft of the scheme for establishment of 50
• Supporting research infrastructure centres for training and research in frontier
upgradation and faculty training in State areas. The Eleventh Plan has targeted to train
Technical institutions as well as in some 3.5 lakh apprentices under the Scheme of
reputed private institutions, Apprenticeship Training. From 2007 to 2009,
• Supporting faculty for M.Tech. and Ph.D in 1.13 lakh apprentices were trained.
Technical Education Quality Improvement
Programme TEQIP-II institutions with two to YOUTH AFFAIRS AND SPORTS
three assistantships or fellowships,
6.91 The population in the age of 10–19
• Encouraging all institutions, to compete for years is currently estimated at 240 million, the
contract research funding, largest ever cohort of young people to make a
• Quality assessment of research undertaken transition to adulthood. The number of youth, in
by various institutions. the age group of 13 to 35 years as defined by
Youth Policy, 2001, is 494 million (41 per cent)
6.88 In order to make the growth of quality of the country’s population. The main objective
institutions sustainable, efforts should be made of planning relating to youth affairs is to ensure
to raise resources by increasing the internal the effective pursuit of youth development
revenue generation by institutions and by programmes to promote personality
tapping other non-governmental sources of development and enhance their commitment to
revenue. It is necessary that poor students are community service, social justice, national
provided with scholarships and “earn while integration and humanism.
140 Mid-Term Appraisal of the Eleventh Five Year Plan

Box 6.2 for Commonwealth Games - 2010. As against

the increased allocation of Rs. 7,133 crore for
Objectives of Eleventh Plan
YAS for the first four years of the Eleventh
Youth Affairs Plan, the anticipated expenditure for the first
• Holistic adolescent development through three years is Rs. 5,028 crore.
convergence of schemes;
• Overall personality development of youth YOUTH AND ADOLESCENTS:
and provision of life skills;
• Youth empowerment through restructuring 6.94 The thrust of the Nehru Yuva Kendra
and expansion of youth programmes; Sangathan (NYKS) is on consolidating,
• Greater female participation in youth expanding and energising the youth club
development programmes;
movement. The services of NYKS are utilised
• Special focus on engaging rural youth in for fostering secular values and national unity
nation-building activities transcending beyond through a number of existing and new
socio, economic, religious, and linguistic programmes. A flexible approach has been
boundaries.p adopted to register the active clubs and the
reach of NYKS is planned to be extended to all
Sports and Physical Education 623 districts with emphasis on increasing
female membership and computerised
• Creation of sports infrastructure from grass-
root level in rural and urban areas;
Management Information System (MIS).
• Creating sports culture through organising
competitive events and involvement of educational 6.95 The National Service Scheme (NSS) is
institutions; being strengthened and expanded from 2.60
• Creating a pool of talented sports persons and million to 5.08 million volunteers covering
providing them world class training facilities; uncovered universities, colleges, technical
• Improving coaching facilities; institutes, and made more effective through
• Reformulating sports policy and action plan; qualitative improvements in the programme
• Involvement of corporate sector; activities. NSS is being restructured with revised
funding pattern and enhancement of cost
• Creating career opportunities and social
norms.
security for sportspersons, etc.
6.96 The Rajiv Gandhi National Institute of
6.92 Sports and Physical Education are Youth Development (RGNIYD), provides special
essential to promote good health, and a spirit of focus on youth leaders from Panchayati Raj
friendly competition, which have an impact on Institutions (PRIs) and is being developed as an
the character and personality of the youth. International Centre of Excellence. In order to
While the broad-basing of sports is primarily a encourage youth travel, Youth Hostels are
responsibility of the States, the Central envisaged at historical, cultural, and tourist
Government actively supplements their efforts in places as a joint venture between the Central
this direction. Excellence in sports enhances the and the State governments. The National
sense of achievement, national pride and Programme for Youth and Adolescent
patriotism. Several new schemes/programmes Development (NPYAD) funded under ‘Yuva
have been initiated with the broad-basing of Shakti Abhiyan’ has been restructured and four
sports facilities and provisioning of infrastructure Central sector grants-in-schemes have been
at grass-root level. merged in it. This will ensure a shift from the
prevailing welfare oriented approach to a rights
Review of the Eleventh Plan: Youth Affairs and empowerment oriented approach. The
and Sports National Service Volunteer Scheme (NSVS) and
Rashtriya Sadbhavana Yojana (RSY) are
6.93 The Eleventh Plan outlay for Youth merged under the newly formulated “National
Affairs and Sports (YAS) is Rs.6,000 crore Youth Corps” (NYC) scheme. Commonwealth
comprising Rs.1,364 crore for Department of Youth Programme (CYP) is being strengthened
Youth Affairs and Rs.4,636 crore for the while Scouts and Guides Programme is to be
Department of Sports including Rs.1,223 crore continued with renewed focus on character
 Education 141

development and inculcating a spirit of 2010 should give a fresh impetus for further
patriotism, social service, and communal investment in sports and games. In order to
harmony in youth. transform sports into a mass movement, a new
Centrally Sponsored Scheme ‘Panchayat Yuva
Krida Aur Khel Abhiyan (PYKKA)’ was launched

Box 6.3
XIX Commonwealth Games (CG) 2010
• The XIX CG (3–14 October, 2010) will be held in Delhi with an estimated outlay of Rs.10, 555
crore. The Games will be hosted in 17+1 disciplines in which 71 Commonwealth countries are
expected to participate.
• The Games Village is being set up on a 63.5 acre site with the capacity for 8,500 athletes and
officials. The residential zones of the Games are being developed on PPP basis.
• The Games will be organised at 23 competition venues including two venues – one each for
Archery and Shooting and four venues for road events – two each for Athletics and Cycling.
• The events comprise Athletics, Lawn Bowls, Weightlifting, Gymnastics, Wrestling, Cycling,
Hockey, Shooting, Swimming, Badminton, Squash, Archery, Tennis, Netball, Boxing, Rugby,
Aquatics, and Elite Athletes with Disability (EAD) events.

SPORTS AND PHYSICAL EDUCATION in 2008-09 to create basic infrastructure and

facilities for sports and games at the village and
6.97 The Eleventh Plan period is full of small town levels, to generate a sports culture
international and national sports events in the among the rural youth, organise competitive and
country. The World Military Games-2007 and non-competitive sporting activities at the village
Commonwealth Youth Games-2008 were held level, and develop a competition structure up to
at Hyderabad and Pune, respectively. The the district level. Amounts of Rs.92 crore in
Commonwealth Games are scheduled to be 2008-09 and Rs.100 crore in 2009-10 (till
held in 2010 in Delhi. The National Games-2007 October, 09) were released for holding
at Hyderabad has created a vast modern competitions and infrastructure development in
sporting infrastructure that has changed the 24,000 Village Panchayats and 650 Block
complexion of this bi-annual sporting event. The Panchayats spread over 29 States and Union
National Games in Assam was well received Territories of the country. A clear strategy is
with a renewed interest in sporting activities needed for separating broad-basing of sports on
even in non-traditional sports of the region (e.g. one hand and nurturing talents and preparing
hockey). The States like Goa, Kerala, and for championships in international competitions
Jharkhand are planning large investments for on the other. In the former, the government
the National Games to be held there. At the should play a leading and primary role and, PPP
State level, Punjab, Haryana, Tamil Nadu, mode pursued for the latter. For instance, the
Kerala, Goa, Maharashtra, Karnataka, Madhya Regional Sports Complex at Cochin runs on
Pradesh and West Bengal have been investing PPP mode (Box 6.4).
in sports infrastructure and training of sports
persons. Industrial Houses, Railways, Civil 6.98 The Sports Authority of India (SAI) with
Aviation and Armed Forces and BCCI have seven regional centres is in-charge of promoting
shown keen interest in sports and games and sports excellence, broad-basing of sports,
investing in nurturing talents. This welcome identification and development of talents, and
development needs to be sustained. India for training of athletes for CG-2010. SAI
improving its medal tally in the ensuing CG- performs academic, operational and training
142 Mid-Term Appraisal of the Eleventh Five Year Plan

activities through various institutes such as the 6.99 Considering the growing menace of
Netaji Subhas National Institute of Sports narcotic use in sporting activities, two separate
(NSNIS), Patiala. It also undertakes autonomous entities viz., National Anti-Doping
maintenance of the stadia constructed during Agency (NADA) and National Dope Testing
Asian Games held in Delhi in 1982, and Laboratory (NDTL) have been set up for
implements sports promotional schemes. The ensuring quality testing of samples. In view of
ban on recruitment in SAI for almost two 2.13 per cent of Indian population suffering
decades had adversely affected sports physical or mental disabilities, a comprehensive
promotion activities. This should be reviewed. scheme has been launched for this group in
Further, it is essential that sporting and 2009. The performance of Indian Elite Athletes
educational career of sportspersons go in with Disability (EAD) at the international level
tandem. Special provisions must be made for has been impressive.
assessment of players at the time of admissions
to institutions of higher education and ART AND CULTURE
employment. The Eleventh Plan proposed
setting up of four regional centres of Laxmibai 6.100 Indian Constitution places special
National University of Physical Education responsibility on each citizen to value and
(LNUPE), Gwalior. However, only one centre at preserve India’s rich, unique and composite
Guwahati was set up. The infrastructure being cultural heritage. This heritage covers the entire
created for holding National Games could be gamut of monuments and archaeological sites,
profitably utilised while setting up new centres. anthropology and ethnology, folk and tribal arts,
In order to meet the challenges of the fast performing arts of music-dance-drama and

Box: 6.4
R eg iona l S ports  C entre(R S C ), C oc hin
R S C  is  a  c la s s ic  ex a mple running  
a  s ports  c omplex  in a  s e lf 
s us ta ining  ma nner in P P P  
mode.T he indoor s ta dium, 
opera tiona l s inc e 1993 ha s  been 
s et up in four a c re la nd provided 
by the G overnment of K era la . It 
hous es  15 ba dminton c ourts , 3 
ba s ket ba ll/volle y ba ll c ourts , 
T a ble tennis , S qua s h, B illia rds , 
H ea lth C lub, S ports  Medic ine 
bes ides  R es ta ura nts  a nd S uits . 
R S C  a va iled a  loa n of R s . 1.25 c r 
for the c omplex  a nd ha d repa id it 
throug h g enera tion of interna l 
res ourc es . It ha d a ls o s ec ured 
s upport from C orpora te s ec tor 
(B ha ra t P etroleum). R S C  runs  
c oa c hing  a c a demies  in 16 
dis c iplines . 

developing international competitive sports, visual arts of paintings-sculpture-graphics as

restructuring and revamping of SAI, NSNIS and well as literature, libraries, archives and
National Sports Federations is essential by memorials. The UNESCO conventions to
upgrading them, making them relevant, `safeguard and protect intangible heritage’ and
marketable and accountable with transparency `cultural diversity’ urge governments to initiate
through MIS system. measures to safeguard and protect cultural
diversity and the various expressions of
 Education 143

Box 6. 5 with inadequate spatial and scheme-wise

Eleventh Plan Thrust Areas quarterly targeting of expenditure. Lack of
• Maintenance and conservation of the proper phasing of expenditure and activities
country’s heritage under various cultural organisations most of
• Ancient monuments and historic sites which are autonomous organisations, has
• Strengthening of activities in the field of hindered full utilisation of Plan allocation.
performing arts
• Strengthening and modernisation of Table.6.5
museums Plan Allocation during Eleventh Five Year
• Activities of Buddhist and Tibetan institutions Plan (2007-12)
• Capacity building and institutional (Rs. in Crore)
strengthening Year Plan Actual Exp. per
Allocation cent
• Protection of cultural diversity and intangible Expen
heritage diture
• Overhauling of the library sector 2007-12 3524.11
• Emphasis on cultural industries for 2007-08 557.00 470.46 84.46
employment generation 2008-09 600.00 525.37 87.56
• Technological up-gradation in all spheres 2009-10 700.00 533.40 76.20
and 2010-11 735.00
• Public- private partnership in implementation Source : Planning and Budget Division, Ministry of Culture
of projects
6.103 The Plan expenditure under the scheme
intangible heritage facing the risk of of promotion and dissemination of art and
disappearance. culture has exceeded the outlays for each year.
The activities under this sub sector are carried
Review of the Eleventh Plan:Art and out mainly through seven Zonal Cultural
Culture Centres (ZCCs). Major institutions like Sahitya
Akademi and Lalit Kala Akademi organised
6.101 The Eleventh Plan (2007-12) allocated cultural exchange programmes and art
Rs.3524.11 crore for Art and Culture. The exhibitions. Sangeet Natak Akademi (SNA)
allocation in the first four years is Rs. 2, 592 organised Commemoration of 150th Anniversary
crore and the anticipated expenditure during the of First War of Independence and the 60th
first three years is about Rs.1622 crore. Anniversary of India’s Independence as well as
music, dance and theatre festivals, seminars
6.102 Examination of Expenditure Budgets for and workshops and ‘Yuva utsavs’ and puppetry
the preceding six years suggests that the shows. The National School of Drama (NSD)
Archaeological Survey of India (ASI), Archives organised various theatrical activities such as
and Museums will have to streamline their 10th Bharat Rang Mahotsav (Annual National
financial management. While the Ministry of Theatre Festival of India), which initiated the
Culture has been seeking higher outlays, the Golden Jubilee celebrations of the NSD.
outlays have not been fully utilised, largely
because many of the 33 autonomous 6.104 Under archaeology, collaboration has
organisations take time to ramp up their begun with the corporate sector such as Taj
capacities. The progress of civil works has also Group of Hotels and the World Monument Fund
not been satisfactory, resulting in cost and time has been initiated. ASI, which has a good
overruns. During 2007-08, the building projects record of utilising Plan funds, has undertaken
undertaken mainly through the CPWD, could 1700 works of structural conservation, chemical
utilise only Rs. 14 crore against the allocation of preservation and horticultural operations. The
Rs. 50 crore and Rs.23 crore against Rs. 46.32 Phase-I of the Ajanta-Ellora project under JBIC
crore could be spent during 2008-09. As in the has come to a close and phase II has now
past, the Ministry of Culture has been facing commenced. It is also conducting scientific
recurrent budgetary cuts due to low pace of studies pertaining to structural and geo-
spending during the first three quarters. The technical aspects of Ta Prohm temple at
expenditure pattern remains more or less similar Cambodia under Indian Technical and
144 Mid-Term Appraisal of the Eleventh Five Year Plan

Economic Cooperation project of the Ministry of Development of Buddhist and Tibetan culture
External Affairs. ASI has carried out excavations and art has been useful but the scale of funding
at Barabati Fort at Cuttack, Begampur and needs to be enhanced.
Ghorakatora in Nalanda and St. Augustine
Complex in Goa. ASI has 19 World Heritage 6.110 The actual expenditure has exceeded
Sites and 3675 protected monuments, including the Annual Plan outlays under the scheme of
pre-historic sites. ‘Centenaries and Memorials. The project
activities for commemoration of the Dandi
6.105 The National Archives of India has March route are in progress.
revitalised its programmes of expansion of
records management and repair and 6.111 The earmarked outlay for activities
reprography. However, these efforts to acquire under Art and Culture for North East Region
30 year old documents from various central (NER) for the Eleventh Plan was Rs.352.40
ministries and state departments have not been crore. Expenditure for activities for NER has
very successful. Under museums, the thrust is been included under respective sector/ scheme
on the strengthening and modernisation of, and / organisation. Special mention may be made of
of networking among central museums, NE Zonal Cultural Centre at Dimapur
enabling these institutions to share their (Nagaland), which aims at creating cultural
experiences and resources in undertaking in- awareness in the region and identifying and
service training and organising exhibitions. promoting vanishing folk art traditions in rural
and semi-urban areas of the region. However,
6.106 The National Museum paid increased the approach towards utilisation of earmarked
attention on modernising its permanent funds, save for few activities listed above, is far
galleries. Three new galleries, viz. Nizam from satisfactory and must be improved,
Jewellery gallery, Folk and Art gallery and particularly in investing funds in the NER.
Central Asian antiquities have been set up in
the National Museum. It has organised several 6.112 Four of the ten new schemes viz. (i)
special exhibitions from India and abroad, and Fellows and Scholars in Knowledge Institutions,
has participated in a number of exhibitions (ii) Pilot Scheme for Cultural Industries, (iii)
overseas. Modernisation of Museums in Metro Cities, and
(iv) Development of Jallianwala Bagh Memorial,
6.107 Public Libraries includes the National are being implemented by the Ministry of
Library of India, the Khuda Baksh Library Culture. Details of four other new schemes viz.
(Patna) and the Rampur Raza Library. The Raja (v) Cultural Heritage Young Leadership
Ram Mohun Roy Library Foundation, Kolkata Scheme, (vi) Promotion and Dissemination of
supplies books and other assistance for Awareness about Indian Culture and Heritage,
upgrading States, Districts and other public (vii) Centre for Management of Cultural
libraries. An additional allocation of Rs. 100 Resources, and (viii) Setting up of National
crore is provided in BE 2009-10 for Mission on Libraries, are being worked out .
strengthening major libraries. The new scheme of (ix) Safeguarding of
Intangible Heritage and Cultural Diversity has
6.108 The Indira Gandhi National Centre for been transferred to Sangeet Natak Akademi
the Arts (IGNCA) has, among other things, the (SNA). The scheme of (x) National Intellectual
mandate to explore, study and revive the Property Rights (IPR) Cell for creative artists
dialogue between India and her neighbors in and artisans has been dropped, but the Multi-
areas pertaining to the arts, especially in South purpose Cultural Complex Scheme, that was
and South East Asia. earlier dropped, is being revised.

6.109 The Central Institute of Buddhist Studies THE WAY FORWARD

(Leh), the Central Institute of Higher Tibetan
Studies (Sarnath), the Tibet House (New Delhi) Elementary Education
are the three Institutions of Tibetan and
6.113 In view of the RTE Act 2009, the
Buddhist Studies.The Scheme for Financial
problems of access, equity and quality will have
Assistance for the Preservation and
 Education 145

to be addressed expeditiously in regions and measures to facilitate private participation must

States lagging behind and SSA will need to be be initiated and viable models for PPP in
harmonised with the RTE Act. The ceiling on education need to be worked out as early as
civil works for infrastructure deficient States will possible.
need relaxation.
Mid-Day Meal Scheme
6.114 Convergence with other flagship
programmes, especially in building physical 6.119 It should be ensured that teachers and
infrastructure needs to be explored. children are not involved in cooking of the mid-
Convergence with MGNREGA for school day meals. There should be web-based
infrastructure, partly or wholly, would meet the monitoring for transparency and periodical third
urgent needs of infrastructure deficient States. party evaluation to assess both impact and the
The MGNREGA guidelines should be modified actual number of beneficiaries under MDMS.
to allow such convergence.
6.120 A system of monthly central
6.115 All preparatory work for effective authorization and electronic transfer of cooking
implementation of RTE needs to start in right cost through banks for implementing agencies
earnest immediately. Monitoring mechanism would help ensure regular and timely availability
should be in place for quota seats in private of funds as in the case of Saakshar Bharat.
schools under RTE Act. Locating Government Periodical review meetings at the State level
Schools near slum areas could also be explored would help in sorting out the problems of
as an option. Central Government should work delayed release of funds.
out State-wise per child expenditure on
6.121 MDM cook’s job-chart should be
elementary education. Early Childhood Care
standardised for half a day’s work and perhaps
and Education (ECCE) must be supported in
brought under MGNREGA. Fiscal incentives like
special focus districts, Areas listed in Schedule
tax exemptions may be considered to
V and VI of the Constitution to eliminate primary
encourage private sector/ private individuals to
dropout and existing funding of Rs.15 lakh per
participate in MDMS.
district should be considerably enhanced. In
order to cater to the educational needs of tribal Secondary Education
children more Ashramshalas (Tribal Schools)
should be opened. 6.122 There should be special focus on the
creation of school infrastructure such as
6.116 A special package should be devised laboratories, libraries and sports facilities.
for out of school children, migrant children and
slum children. 6.123 Accreditation process of schools must
be initiated through autonomous accrediting
6.117 In order to ensure teacher agencies.
accountability, decentralised appointment of
teachers can improve the community’s 6.124 Incentives must be provided to boys and
interaction with the school and the commitment girls, specially disadvantaged groups and those
of teachers. Effectiveness and quality of living in isolated areas and hostel facilities
teachers can also be improved through merit- provided for nomadic and continuously
based selection processes and training needs to migrating population.
focus on motivational aspects. All teachers'
training institutions should be rated and brought 6.125 The setting up of 2500 Models Schools
under the university education system. in PPP mode should be expedited.

6.118 In keeping with the Eleventh Plan 6.126 Computer education must be made
statement that PPP in education needs to be mandatory for all teachers and computer
encouraged, private sector resources should be teacher must be appointed in senior secondary
leveraged to improve infrastructure and quality. schools.
Reforms agenda should include easing of entry
6.127 KVs must be expanded based on need
barriers and revisiting norms, including land
in extremism affected, isolated areas and for the
requirement of institutions. Necessary legislative
wards of Defence personnel.
146 Mid-Term Appraisal of the Eleventh Five Year Plan

6.128 Inter-State disparities in GER must be 6.136 Action needs to be expeditiously

reduced through special packages for the low initiated with regard to the approved schemes
GER States such as Bihar (24.42 per cent) at having a significant bearing on improving the
secondary level. GER. The Eleventh Plan proposal for
incentivising States for expansion, inclusion and
6.129 In vocational education, curriculum excellence in higher education is under
revision, appropriate certification by accrediting consideration. However, proposals for (a)
agencies, facility for horizontal and vertical additional assistance to already covered
mobility and linkage with industry for self universities and colleges; and (b) assistance to
employment/ employment should be prioritised. uncovered universities and colleges should be
treated as a package and an innovative scheme
Adult Education needs to be devised to meet the overall Plan
6.130 There is a need to design equivalence objective for higher education. Many State
to formal education through open basic universities including the old and reputed
education programme of NIOS, including universities of Kolkata, Mumbai, Chennai and
vocational subjects with extensive coverage of Pune are starved of funds and this allocation
SCs, STs and minorities. could be used for improving the conditions of
the existing State universities and colleges
6.131 Adult education programmes must which face severe paucity of resources to help
develop synergy with the National Skill them retain their excellence and competitive
Development Mission and gains of Continuing edge.
Education Programme (CEP) should be
sustained. 6.137 With regard to setting up 374 degree
colleges, it may be noted that some of the
6.132 National Literacy Mission Authority educationally disadvantaged States may
(NLMA) may enter into PPP partnerships and accelerate setting up Model colleges if there is a
also generate funds on its own. To gain from subsidy of 50 per cent for the capital cost.
global experiences, an international network Schedule V and VI areas, SC and Minorities
may be established to work with UNESCO, concentration districts deserve such special
UNICEF, etc. and arrive at bilateral and dispensation.
multilateral arrangements for mutually beneficial
partnerships. 6.138 Grants through UGC to universities,
institutions and colleges need to be rationalized
6.133 There is a need for convergence for focused intervention based on objective
between related schemes of other Departments criteria and transparency, specified outcomes
and literacy should receive a top priority. and performance. The flow of funds from UGC
to State universities must be streamlined to
6.134 Involve universities in research, training, ensure timely release of grants. A transparent
monitoring and supervision and evaluation of MIS system should be put in place by UGC.
Adult Education Programme.
6.139 The synergy between industry and
Higher Education university research must be worked out
professionally. A policy framework should be
6.135 The Task Force constituted by the formulated towards the realization of the
MHRD should clearly lay down the road map requisite synergy in a specific research area
for setting up of the National Commission for /interest.
Higher Education and Research(NCHER).
MHRD, as part of the reform process, has 6.140 Engaging retired faculty with appropriate
introduced four Bills in the Parliament which are: honorarium is a useful short-term solution for
Regulation of Entry and Operation of Foreign addressing faculty shortage. The existing ban
Educational Institutions, Establishment of on recruitment of academic and technical staff
Educational Tribunals, Prohibition of Unfair needs to be lifted, particularly for professional
Practices in Technical and Medical Educational courses such as Law, Management and
Institutions and Universities, and Mandatory Engineering where faculty shortage is a serious
Accreditation of Higher Educational Institutions problem.
 Education 147

6.141 Academic programmes of Open and 6.146 State Governments should also provide
Distance Learning (ODL) institutions need to be for adequate funds in their Plan/budget for
assessed and monitored for quality output. It setting up new technical institutions and in
would be worthwhile if Information and public and private (individual/groups)
Communication Technology (ICT) and ODL are partnership in backward areas.
integrated into, say, 100 selected institutions to
develop, implement and refine the Blended 6.147 State engineering colleges and technical
Model of Learning which can later be up-scaled. institutions need to be adequately strengthened
The number of community colleges needs to be in infrastructure and academic resources and
increased as it would open up opportunities for financial support enhanced substantially.
accessing higher education and income Selected high quality State technical institutions
generating skills to a large number of aspiring and universities should be accorded the status
learners. The convergence model operational of institution of national importance (e.g., IT,
in IGNOU can be modified and up-scaled with BHU, Varanasi and BESU, Shibpur, Howrah),
additional funding. The regulatory framework of as recommended by the Anandakrishnan
Distance Education Council (DEC) needs to be Committee.
rationalized to prevent mushrooming of poor
6.148 There is a need for a credible
quality distance education institutions.
accreditation and rating system for institutions
6.142 With regard to PPP in higher education, and courses.
“Basic Infrastructure Model” has definite
6.149 Technical institutions should have
advantages in accelerating expansion without
effective institutional/academic linkages and
budgetary constraints. The possibility of
interface with industry, for ensuring
converting existing private institutions into public
employability of successful students as well as
partnerships needs to be explored. The existing
for equipping them with industry relevant skills.
requirement of private initiative in education as
“not for profit” must be dealt with pragmatically. YOUTH AND ADOLESCENTS
6.143 For long term sustenance of high growth 6.150 The NSS/NCC may be made a
rate in Indian economy, the GER in higher and compulsory co-curricular activity in educational
technical education needs to be increased in a institutions.
demand driven manner. Therefore, a
framework should be developed to encourage 6.151 NYKS should set target for female
large scale infusion of private capital to this membership and achievement should have
sector. Lending to education sector should be weightage in grading of youth clubs. There is a
treated as priority sector lending with need for proper coordination between the
refinancing facilities. Besides, loans at low rates Centre and States to ensure convergence for
of interest should be made available to students optimal utilisation of NYKS and National Youth
pursuing higher and professional education on a Corps in implementing youth developmental
much larger scale than at present. programmes.

6.144 Setting up of Mahatma Gandhi Institute 6.152 The construction and maintenance of
of Education for Peace and Sustainable youth hostels could be taken up in a self-
Development, a Category-I institute of sustaining manner in the public private
UNESCO, which is under consideration, should partnership/franchising mode.
be accorded priority and be established early
on. 6.153 All schemes and programmes of the
Ministry should be evaluated by independent
Technical Education agencies in consultation with Planning
Commission. This could be undertaken in the
6.145 The issue of faculty crunch in technical remaining part of the Eleventh Plan period.
institutions should be addressed. Several
doctoral degree holders who are scientists in
research laboratories as well as in the private
sector should be engaged as visiting faculty.
148 Mid-Term Appraisal of the Eleventh Five Year Plan

Sports and Physical Education map should be drawn through a stakeholders’

consultative process to broad- base the
6.154 A radical beginning should be made by movement and mainstream it as a part of a
introducing Sports and Physical Education as a larger India Youth Network (IYN).
subject at the elementary level. On the lines of
Sarva Shiksha Abhiyan (SSA), a Centrally Art and Culture
Sponsored Scheme (CSS) “Sarva Krida
Abhiyan” should be contemplated in the next 6.162 The prospective role of the Central and
Plan, synergizing it with Panchayat Yuva Krida State governments, in the promotion and
Khel Abhiyaan (PYKKA). Preparatory activities dissemination of culture, needs to be redefined,
for this programme should be started forthwith. promoting private initiatives and specifying
certain exclusive areas for centre- state
6.155 NCERT recommendation to introduce operations.
Health Science, Physical Education and Yoga
as a compulsory subject at Secondary level and 6.163 The study of culture within higher
an optional subject at Senior Secondary level education needs to be directly addressed and
with equal weightage to other subjects should linkages established. Introduction of art, fine
be accepted. arts (Painting/Folk art etc.), music and theatre
should be encouraged at the school and higher
6.156 A Committee of Experts should be set levels. Inter-ministerial consultations to give
up by the Ministry of Youth Affairs and Sports to shape to this inter-disciplinary academic
chalk out modalities for promotion of rural curriculum must be initiated during the current
sports. Plan period.

6.157 National Physical Fitness Programme 6.164 A Centrally Sponsored Scheme for
(NPFP) should be re-introduced on a pilot basis protection and preservation of monuments and
and after evaluation, expanded in the next Plan. archaeological sites should be devised in
consultation with states and with enlightened
6.158 Legacy plan for Post-Games utilisation private sector participation. The new scheme
of available sports infrastructure needs to be could be with the Archeological Survey of India
chalked out to generate adequate internal (ASI) but before being conferred with newer
resources to meet Operations and Maintenance roles, this organisation also needs a thorough
expenses. The Manchester and Melbourne overhauling. ASI must increase its vigilance
Models could, perhaps, be suitably adapted for over centrally protected monuments for which
upkeep, maintenance and utilization of modern its manpower should be augmented.
sports infrastructure under PPP.
6.165 ASI would need to put greater focus on
6.159 Services of the distinguished conservation training. Epigraphy is languishing
sportspersons, should be utilized by relaxing and needs to be revived immediately as more
eligibility norms, wherever feasible. They should than a lakh inscriptions and the like are lying
be encouraged to set up their own academies in undeciphered.
their respective fields.
6.166 There is a need for establishment of
6.160 Emphasis should be given to sports National Centre for Performing Arts (NCPA) in
medicine in consultation with the Ministry of Delhi in the next Plan in PPP mode. The
Health and Family Welfare. Training preparatory work for it should be started
programmes should cover all the sports science forthwith.
disciplines and specialised courses on sports
science should be introduced in the major 6.167 The 150th birth anniversary of
universities. Rabindranath Tagore and Swami Vivekananda
should be celebrated in a befitting manner.
6.161 A new Centrally Sponsored Scheme
could be started in PPP mode in the next Plan 6.168 A committee should be constituted by
with fund sharing arrangement between Centre the Ministry of Culture to propose
and State Governments and the private sector comprehensive amendments to the Antiquities
for sports infrastructure development. A road Act 1972.
 Education 149

6.169 Education & Culture should be 6.172 Contemporary art deserves special
integrated in a manner that can infuse emphasis. There is a need to encourage setting
knowledge capital to cultural institutions with a up of international level art galleries and
view to enriching their perspective and museums of contemporary and modern art and
enhancing their research capability. In-house preferably in PPP mode. The present efforts to
expertise should also be simultaneously set up the Kolkata Museum of Modern Art
developed. (KMoMA) should be encouraged and prioritised
by the Ministry of Culture.
6.170 The ancient buildings of historical cities
in possession of individuals could be converted 6.173 Tribal and folk art should receive greater
into local heritage centres and utilized for art attention as they have the potential to empower
and theatre through a transparent and the weaker and marginalized sections of the
participative process. There could be a window society by creating opportunities for
for providing Central assistance for this employment.
purpose.
6.174 Setting up an Audio Visual Archive
6.171 The erstwhile Multipurpose Cultural should be accorded priority so that precious
Complex (MPCC) scheme should be revived heritage of India’s best performers and artistes
and restructured as a central sector scheme is restored for posterity.
with provisions for participation of private sector
along with states, with adequate flexibility in 6.175 Ministry of Culture/ASI should showcase
respect of funding as well as design, suiting the India’s rich cultural heritage to promote cultural
requirement of the proposed projects. tourism, cultural industries and dissemination of
knowledge heritage.
 7
Health
INTRODUCTION • The National Rural Health Mission (NRHM)
is a major flagship programme of the
7.1. The Eleventh Five Year Plan envisaged Government in the health sector, which
an inclusive approach towards health care that aims at inclusive health and improved
encompassed equitable and comprehensive access to quality health care for those
individual health care, improved sanitation, residing in rural areas, particularly women,
clean drinking water, nutritious food, hygiene, children and the poor by promoting
good feeding practices and development of integration, decentralisation and
delivery systems responsive to the needs of encouraging community participation in
people. It promised special attention to the health programmes.
health of marginalised groups such as
adolescent girls, women of all ages, children • The Rashtriya Swasthya Bima Yojana
below the age of three, older persons, the (RSBY) is an effort to provide protection to
differently-abled, tribals and scheduled castes. BPL households in the unorganised sector
Gender equity was to be an overarching from financial liabilities arising out of health
concern. problems that involve hospitalisation.
• Mainstreaming AYUSH into health services
7.2. The Plan recognised that while total at all levels was also an important strategy
expenditure on health in India (public plus for the Eleventh Plan.
private) as a percentage of GDP was broadly in
line with the level achieved in other countries at ELEVENTH PLAN GOALS
similar per capita income levels, it was skewed
too much in favour of private expenditure. 7.4. The monitorable targets for the
Public expenditure on health in India (Centre Eleventh Plan are the following:
plus States combined) was less than 1 per cent
of GDP indicating inadequacies in the public • Reducing Infant Mortality Rate (IMR) to 28
provision of critical health services. The Plan per 1000 live births.
therefore explicitly envisaged an increase in
public expenditure on health to at least 2 per • Reducing Maternal Mortality Ratio (MMR) to
cent of GDP. 100 per 1,00,000 live births.
• Reducing Total Fertility Rate (TFR) to 2.1.
7.3. While recognising that health outcomes
depend not just on the access to curative health • Reducing malnutrition among children of
care, but also on strengthening public health age group 0–3 to half its present level.
related services particularly access to clean
• Reducing anaemia among women and girls
drinking water, sanitation and improved child
by 50 per cent.
rearing practices which in turn depend on
education and empowerment of women, the • Raising the sex ratio for age group 0–6 to
Plan took some very important initiatives for 935 by 2011–12 and 950 by 2016–17.
increasing the outreach and quality of health
• Providing clean drinking water for all by
services:
2009 and ensuring no slip-backs.
 Health 151

MID-TERM APPRAISAL: THE PROCESS 2007-08 and therefore, it is too early to judge its
impact. Some of the relevant data, for example
7.5. The Mid Term Appraisal is based on an for MMR and IMR are only available for 2006
analysis of sectoral data, review of official and 2008 respectively, which cannot reflect the
documents and other independent reports1, impact of recent interventions.
consultations with the experts in the field,
discussions with nodal departments of the ASSESSMENT OF PROGRESS
implementing Ministries as well as the
departments in State Governments dealing with 7.7. Based on available data, this section
the subject. It also draws on five regional presents an assessment of progress towards
consultations held by Planning Commission at stated goals and monitorable targets of the
Guwahati for North-Eastern States, Jaipur for Eleventh Plan.
Western States, Bhubaneswar for Eastern
States, Chandigarh for Northern States and Public Expenditure on Health
Bangalore for Southern States. Individuals
concerned with healthcare and NGOs were 7.8. Total public expenditure on health in the
invited to participate in the consultations to country as percentage of GDP now stands
provide feedback on performance so far. around 1.1 per cent (2009-10). However, health
related expenditures like clean drinking water,
7.6. The mid-term appraisal with regard to sanitation and nutrition have major bearing on
the health schemes is however, constrained by health and if expenditure on these is counted

Table 7.1
Public Expenditure on Health as per cent of GDP
Year Health Health & Related Inputs**
Centre State Total Centre State Total
2005-06 0.29 0.67 0.96 0.53 1.21 1.74
2006-07 0.29 0.67 0.96 0.53 1.21 1.74
2007-08 0.32 0.70 1.02 0.59 1.29 1.88
2008-09 0.35 0.71 1.06 0.63 1.28 1.91
2009-10* 0.39 0.70 1.09 0.66 1.30 1.96
* Provisional
** Besides expenditure by health and family welfare departments, this includes estimated expenditure
on RSBY, water supply, sanitation and nutrition.

the fact that some of the programmes are too the total public health spending reaches around
new to measure impact in any specific manner. 2 per cent of GDP. Even so, it is strongly felt
For instance, the National Rural Health Mission that public expenditure on health needs to be
which is the most important initiative in the increased.
health sector began only in 2005. Its
expenditure began to roll out significantly in 7.9. Looking at the contributions of Centre
and States (Table 7.1), Centre’s health
1
These include reports of Comptroller and Auditor
expenditure as percentage of GDP has
General, Common Review Mission, Centre for Health increased from 0.29 in 2005-06 to 0.39 in 2009-
and Social Justice, Centre for Operations Research & 10. This is much faster than the States, where
Training, International Advisory Panel, Independent the increase has been from 0.67 to 0.70 over
Commission on Development and Health, International the same period. This pattern also holds good
Institute of Population Sciences, Institute of Economic for health related expenditure. States therefore
Growth, Jan Swasthya Abhiyan, National Alliance for
Women, National Institute of Health & Family Welfare,
have to substantially increase their health
People’s Mid-Term Appraisal, Planning Commission, budgets.
Public Health Resource Society, Registrar General of
India and Voluntary Health Association of India.
152 Mid-Term Appraisal of the Eleventh Five Year Plan

Maternal Mortality Ratio (MMR) urgent efforts are required to adopt home-
based newborn care based on validated models
7.10. To reach the MMR target of 100 by such as the Gadchiroli model (Eleventh Plan,
2012, the required rate of decline from 254 Vol. II - p 90) and make focused efforts for
(SRS 2004-06) has to be, on an average, 22 encouraging breast feeding and safe infant and
per year. Unfortunately, no data are available child feeding practices. While emphasis on
on the progress of MMR during the Eleventh early breast feeding is part of ASHAs training,
Plan period i.e. the period beginning 2007-08. special training on neonatal care for community
However, earlier data shows that MMR came and facility level health functionaries will
down from 301 (SRS 2001-03) to 254 (SRS facilitate a faster reduction in IMR.
2004-06), i.e., an average decline of 16 per
year. Achieving the Eleventh Plan target clearly Total Fertility Rate (TFR)
requires much faster progress. State wise
decline during the pre-Eleventh Plan period 7.13. TFR came down from 2.9 in 2005 to 2.6
varied from an average of 26 per year for Uttar in 2008 (SRS), a decline of 0.1 per year. With
Pradesh/Uttarakhand, 20 per year for some more effort, it should still be possible to
Bihar/Jharkhand, 19 per year for Rajasthan, 18 reach the target of 2.1 by 2012. The situation
per year for Orissa/ West Bengal to 15 per year varies across states. Out of the 20 States for
for Madhya Pradesh/Chhattisgarh. which SRS data is available, nine States have
already reached the replacement level of 2.1 or
7.11. When 52.2 per cent of the deliveries are less, while four States have TFR greater than
conducted at home (DLHS-3, 2007-8) and 2.1 and less than or equal to 2.5. The problem
comprehensive obstetric care continues to be a States are Bihar, Uttar Pradesh, Madhya
problem in many States, the scope for Pradesh, Rajasthan, Jharkhand, Chhattisgarh
expanding timely access to quality institutional and Assam which have TFR between 2.6 and
care is limited, particularly for those living in 3.9. A concerted effort will have to be made by
remote and inaccessible areas. In such a these lagging States, particularly Bihar and
scenario, the MMR goal of 100 is achievable Uttar Pradesh, in order to achieve the target by
only through appropriate area specific the end of the Eleventh Plan. This involves
interventions. These should include equipping measures such as addressing the unmet needs
the Traditional Birth Attendants (TBAs)/Dais for for contraception besides reduction in child
safe delivery-specially in remote and mortality, greater male involvement, women’s
inaccessible areas, universalising access to empowerment and delaying their age at
skilled birth attendants over a period of time marriage etc. For this, Departments of Health at
and creating better access to emergency Centre and States need to coordinate with other
obstetric care (both public and private), in case concerned departments.
of complications within two-hours travel time.
Other Monitorable Goals of Eleventh Plan
Infant Mortality Rate (IMR)
7.14. Regarding the sex ratio, information for
7.12. Although IMR is showing a downward the age group 0-6 years during the Eleventh
trend, but the rate of improvement here too has Plan period is not available to track
to be three times that in the past so as to attain achievement vis a vis the goals. The latest
the level expected by the end of Eleventh Plan. available data on sex ratio for the age group 0-4
All India IMR was 57 in 2006 and 53 in 2008 shows some improvement from 908 (2004-06)
(SRS), a decrease of 4 in two years. High focus to 914 (2005-07) and further to 915 (2006-08)
States of NRHM have shown marginally better but clearly this is not satisfactory and much
performance in rural areas, where IMR has more needs to be done. Schemes for the
decreased by 5 in two years. Tamil Nadu has welfare of girl child, implementation of Pre-
also shown marginally better performance, a Conception and Pre-Natal Diagnostics
decline of 6 in two years. To achieve IMR of 28 Techniques (PC PNDT) Act and Behavioural
by 2012, the required rate of decrease has to Change Communication (BCC) activities need
be an average of 6 per year. Intensive and to be intensified.
 Health 153

7.15. Regarding malnutrition and anaemia, focus, much more needs to be done.
there are reports about efforts being made by
different States, though specific information is Health Human Resource
yet to be available.
7.18. Shortage of human resources in health
7.16. On the goal related to clean drinking has been as pronounced as lack of
water, progress is slightly behind schedule. Out infrastructure. Table 7.3 presents the extent of
of the 55,067 habitations that did not have progress in reducing the shortfall between 2006
access to clean drinking water at the beginning and 2008. The overall shortfall of female Health
of the Bharat Nirman Programme (2005-06), Workers and Auxiliary Nurse Midwives (ANMs)
only 478 remain to be covered (as on 1 was relatively low at 10.93 per cent in 2006, but
January, 2010). However this effort continues to increased to 12.43 per cent of the total
be undermined by slippage which has been a requirement for the available infrastructure in
recurring feature of our rural drinking water 2008. In case of male Health Workers,
programme. As uncovered habitations are Radiographers, Lab Technicians and
covered, several that were covered earlier slip Specialists at CHCs, the shortfalls were very
back due to increase in population, inadequate large (54.3 per cent, 53.3 per cent, 50.9 per
source of water supply or falling ground water cent and 64.5 per cent respectively). As for
levels. There has to be a constant effort to Doctors at PHCs, there was a shortfall of 15.08
cover such habitations on priority basis. per cent. Of the sanctioned posts, a significant
percentage viz. 18.8 per cent Doctors at PHCs,
Health Infrastructure 48.6 per cent Specialists at CHCs and 28.3 per
cent Health Workers (Male) at SCs were
7.17. Shortfall of Community Health Centres vacant.
(CHCs) has decreased from 49.4 per cent in
2005 to 36 per cent in 2008. However, the 7.19. It has been reported that due to
shortfall of Sub-Centres (SCs) and Primary contractual recruitments with NRHM funds,
Health Centres (PHCs) in 2008 has been States have added 42,633 ANMs, 12,485
almost the same as in 2005 (Table 7.2). Four MBBS Doctors and 2,474 Specialists. In the
States, Bihar, Uttar Pradesh, West Bengal and last three years under NRHM 26,253 Staff
Madhya Pradesh alone contribute towards 74 Nurses, 7399 AYUSH Doctors and 3,110
per cent of the overall shortfall of SCs, 70 per AYUSH paramedics were appointed. Close to
cent shortfall of PHCs and 61 per cent shortfall one lakh service providers and managers have
of CHCs. Though consolidation and optimal been contracted into the system across the
utilisation of existing infrastructure has been the country. While the data in Table 7.3 (taken from
Health Ministry sources) needs to be

Table 7.2
Shortfall in Health Infrastructure*
S.No. Health As on September 2005 As on March 2008
Facility
R P S S in R P S S in
% %
1. Sub- 1,58,792 1,46,026 19,269 12.1 1,58,792 1,46,036 20,486 12.9
Centre
2. PHC 26,022 23,236 4,337 16.6 26,022 23,458 4,477 17.2
3. CHC 6,491 3,346 3,206 49.4 6,491 4,276 2,337 36.0
* Based on 2001 population
R: Requirements P: In Position S: Shortfall S in per cent: Shortage in per cent
Note: All India shortfall is derived by adding State-wise figures of shortfall ignoring the existing surplus in some of
the States.
Source: Bulletin on Rural Health Statistics (RHS) 2006 and 2008
154 Mid-Term Appraisal of the Eleventh Five Year Plan

supplemented by the data on contractual Family Welfare (MoHFW) (including RSBY

appointments to show the true picture regarding implemented by Ministry of Labour and

Table 7.3
Human Resources for Health – Shortages

Health Personnel All Required Sanctioned In Vacant Shortfall

India (R) (S) Position ( S-P) (R-P)
(P)
Multipurpose Workers 2006 1,67,657 1,62,772 1,49,695 13,126 18,318
(Female)/ANMs at Sub-Centres & (8.06%) (10.93%)
PHCs 2008 1,69,494 1,43,269 1,53,568 8,800 21,066
(6.14%) (12.43%)
Health Workers (Male)/MPWs (M) at 2006 1,44,998 94,924 65,511 29,437 74,721
Sub-Centres (31.01%) (51.53%)
2008 1,46,036 78,813 60,247 22,281 79,322
(28.27%) (54.32%)
Health Assistants (Female)/LHVs at 2006 22,669 19,874 17,107 2,781 5,941
PHCs (13.99%) (26.21%)
2008 23,458 19,920 17,608 2,664 6,481
(13.37%) (27.63%)
Health Assistants (Male) at PHCs 2006 22,669 24,207 18,223 5,984 7,169
(24.72%) (31.62%)
2008 23,458 23,705 17,976 6,534 8,831
(27.56%) (37.65%)
Doctors at PHCs 2006 22,669 27,927 22,273 5,801 1,793
(20.77%) (7.91%)
2008 23,458 25,086 24,375 4,708 3,537
(18.77%) (15.08%)
Specialists at CHCs 2006 15,640 9,071 3,979 4,681 9,413
(51.60%) (60.19%)
2008 17,104 8,376 4,279 4,068 11,033
(48.57%) (64.51%)
Radiographers at CHCs 2006 3,910 2,400 1,782 620 1,330
(25.83%) (34.02%)
2008 4,276 2,124 1,695 661 2,280
(31.12%) (53.32%)
Pharmacists at PHCs and CHCs 2006 26,579 22,816 18,419 4,445 4,389
(19.48%) (16.51%)
2008 27,734 24,088 20,956 4,282 7,022
(17.78%) (25.32%)
Lab Technicians at PHCs and CHCs 2006 26,579 15,143 12,351 2,792 9,509
(18.44%) (35.78%)
2008 27,734 15,223 12,886 3,308 14,134
(21.73%) (50.96%)
Note: All India shortfall is derived by adding State-wise figures of shortfall ignoring the existing surplus in some of
the States.

the human resources shortfall, prima facie, it Employment) over the Eleventh Plan period is
can be said that the human resources available described below:
are not yet in line with the Indian Public Health
National Rural Health Mission
Service Standards and the expansion that has
been made in health infrastructure.
7.21. Performance of NRHM as per available
timeframe reveals progress in certain areas, but
ASSESSMENT OF MAJOR SCHEMES
this falls short of the targets set. This is not
surprising since the programme has been in
7.20. The performance of the major schemes
and programmes of the Ministry of Health &
 Health 155

operation for only a few years. Some important Accounts Managers are in position in 581
achievements as on 31.01.10 are as follows: and 579 districts respectively.
• 7.49 lakh Accredited Social Health Activists • 356 Districts have operational Mobile
(ASHAs) have been selected though the Medical Units (MMUs) against the target of
total number of those who have completed 600 MMUs by 2009 (one for each district).
all training modules is low. Against the In addition, boat clinics in Assam & West
target of 6 lakh fully trained ASHAs by 2008 Bengal, emergency transport system in
there are 5.19 lakh ASHAs positioned with Andhra Pradesh, Gujarat, Karnataka, Goa,
drug kits, but their training is still to be Uttarakhand, Assam and Rajasthan, GPS
completed. Only about 1.99 lakh ASHAs enabled MMUs in Gujarat, Haryana and
have completed all five modules and 5.65 Tamil Nadu are operational.
lakh have completed up to fourth training
7.22. Even though a large number of MBBS
module.
doctors, AYUSH doctors, specialists, ANMs and
• 4.51 lakh Village Health and Sanitation other paramedics have been appointed on
Committees (VHSCs) have been set up contractual basis, under NRHM, a possible
against the target of 6 lakh VHSCs by 2008. shortcoming is that as contractual appointments
The operational effectiveness of the are facilitated, the States tend to decrease their
VHSCs, however, needs considerable sanctioned posts. It must therefore be ensured
improvement. by the States that they will, in the long run, bear
the expenditure for such contractual
• 40,426 Sub-centres (SCs) have been appointments.
provided two ANMs against the target of
1.05 lakh SCs by 2009. 8,745 SCs are 7.23. To address the human resource
without even a single ANM. challenge, besides short-term training in
• 8,324 Primary Health Centres (PHCs) are anaesthesia and emergency obstetric care,
functional on 24X7 basis and 5,907of them States are adopting innovative measures.
have three Staff Nurses against the target These include incentives for working in difficult
of 18,000 PHCs by 2009. areas, mandatory rural service to qualify for
post-graduation, walk-in interviews, three year
• 3,966 Community Health Centres (CHCs) rural health practitioner course, selection of
are functional on 24X7 basis. However, local women for ANM training and district
information regarding the target of specific appointment of health personnel.
strengthening 3250 CHCs with seven
specialists and nine staff nurses by 2009 is 7.24. As a result of increased expenditure
not available. In any case, the number of and interventions made under NRHM, some
CHCs/Sub-Divisional Hospitals or improvements have been reported in the form
equivalent, which have been upgraded to of increased service utilization at OPDs,
First Referral Unit (FRU) has increased increase in the number of institutional deliveries
from 750 (as on 31 March 2005) to 1934 and increased use of emergency transport and
(as on 31 December 2009). ambulances provided under the programme.
• 510 out of total 578 District Hospitals (DHs) Providing quality health care to remote,
have been strengthened to act as FRUs. inaccessible areas is the most difficult task and
all around enhanced effort needs to be made
• 29,223 Rogi Kalyan Samitis during the remaining period of the Eleventh
(RKSs)/Hospital Development Committees Plan. (Box 7.1)
have been constituted at PHC/CHC/DH
levels against the target of 37,100 RKSs by Disease Control Programmes under NRHM
2009.
• State & District Societies are in place 7.25. Many disease control programmes have
except at the State level in West Bengal. been subsumed under NRHM. Official statistics
District Programme Managers and District suggest commendable performance in some
programmes but not in others. The
156 Mid-Term Appraisal of the Eleventh Five Year Plan

Box 7.1
Major Eleventh Five Year Plan Recommendations: Yet to be Implemented

The following policy recommendations of the Eleventh Plan are yet to be implemented and need to be
considered under the NRHM:
• Adopting home-based new born care like the Gadchiroli model for reducing the IMR.
• Adopting skilled attendance at birth for home deliveries and emergency obstetric care within two
hour travel time for reducing the MMR.
• Utilising the services of RMPs available round the clock as Sahabhaagis in NRHM as an interim
measure.
• Use of indigenous low cost technology, for example water purifiers based on Ganiyari Model in
Bilaspur, could be encouraged to kick start health and sanitation interventions in an affordable
way in the remotest areas.

achievements in terms of prevalence rate/cure cent during the first two years of the
rate/mortality are as under: Eleventh Plan. Majority of deaths due to
kala-azar are from three high-focus States
Good Progress of Uttar Pradesh, Bihar and Jharkhand.
Their weak health infrastructure in these
• Tuberculosis: Target of overall cure rate of States is the likely cause of unsatisfactory
85 per cent has been achieved during the performance.
first two years of the Eleventh Plan.
• Filaria/Microfilaria: Against the target of
• Blindness: In 2007-08, as against a target filaria/microfilaria reduction by 70 per cent
of 50 lakh cataract operations, 54.05 lakh by 2010, 80 per cent by 2012 and
operations were carried out. The following elimination by 2015, the overall reduction
year, 58.1 lakh cataract operations were was only 26.74 per cent during the first two
conducted as against the target of 60 lakh. years of the Eleventh Plan. For achieving a
. better coverage of annual mass drug
• Leprosy: The overall target of reducing administration in the population at risk; it is
leprosy prevalence rate from 1.8 per 10,000 important that before initiating the round, a
in 2005 to less than 1 per 10,000 has been good rapport is established with the
achieved. As many as 510 (81 per cent) community through BCC activities. In
districts have achieved the target during the addition, States not covered in the earlier
first two years of Eleventh Plan. round (Bihar and Tamil Nadu) should also
be included.
• Dengue: The overall reduction was 56.52
per cent during the first two years of the 7.26. Immunisation under the NRHM is one of
Eleventh Plan. The Plan had aimed at the key interventions to prevent six vaccine
mortality reduction by 50 per cent by 2010, preventable diseases i.e. tuberculosis,
and sustaining that level until 2012. diphtheria, pertussis, tetanus, polio and
measles. The latest District Level Household
• Malaria: Against the target of malaria Survey (DLHS-3, 2007-08) shows that the
mortality reduction by 50 per cent by 2010, percentage of children in the age group 12-23
and an additional 10 per cent by 2012, the months fully immunised (BCG, measles and
overall reduction was 45.22 per cent during three doses of DPT and polio) has increased
the first two years of the Eleventh Plan. from 45.9 per cent during 2002-04 (DLHS-2) to
Poor Progress 54.1 per cent in 2007-08 (DLHS-3) – See Table
7.4. This represents an increase of over 8 per
• Kala-azar: Against the target of Kala-azar cent in 4-5 years.
mortality reduction by 100 per cent by 2010
and sustaining the elimination until 2012, 7.27. Assam has shown phenomenal
the overall reduction was only 21.93 per improvement from 16.0 per cent immunisation
 Health 157

Table 7.4 to 54.5 per cent), Bihar (from 20.7 per cent to
Immunisation Status 41.4 per cent), Uttarakhand (from 44.5 per cent
Per cent of Children Fully to 62.9 per cent). Union Territories of Daman &
Immunised Diu, Chandigarh and Lakshdweep also have
DLHS-II DLHS-III (2007- shown commendable improvement. On the
(2002-04) 08) other hand, Tamil Nadu and Maharashtra which
Andhra had been performing well, registered a decline
Pradesh 62.0 67.1 in coverage from 91.4 per cent to 81.8 per cent
Assam 16.0 50.9 and from 70.9 per cent to 69.1 per cent
Bihar 20.7 41.4 respectively.
Chandigarh 53.5 73.0
Chhattisgarh 56.9 59.3
Dadar & Nagar 7.28. As per the Delivery Monitoring Unit
Haveli 84.2 57.3 (DMU) Report of NRHM, 70.3 per cent children
Daman & Diu 56.1 84.5 are fully immunised till 31 December 2009.
Delhi 59.2 67.6 However, the gaps in immunisation coverage,
Goa 76.9 89.8 particularly in the high focus States of NRHM,
Gujarat 54.0 54.9 need to be addressed along with the issues of
Haryana 59.1 59.6 cold chain for improving the effectiveness of
Himachal immunisation programmes.
Pradesh 79.3 82.3
Jammu & 7.29. Whereas, Eleventh Plan aims to
Kashmir 31.7 62.5 eradicate polio, new polio cases in 2006, 2007,
Jharkhand 25.7 54.1 2008 and 2009 numbered 676, 874, 559 and
Karnataka 71.3 76.7 752 respectively. Majority of these were from
Kerala 78.5 79.5 Uttar Pradesh and Bihar. Total sanitation needs
to be intensified in the affected districts, along
Lakshdweep 61.0 86.1
with planned rounds under the Pulse Polio
Madhya
Immunisation Programme. Impact of such
Pradesh 30.4 36.2
special immunisation programmes on routine
Maharashtra 70.9 69.1
immunisation also needs to be evaluated.
Meghalaya 13.5 33.7
Mizoram 32.6 54.5 Qualitative Feedback of NRHM: Voices from
Orissa 53.3 62.4 the Field
Puducherry 89.3 83.5
Punjab 72.9 79.9 7.30. The deficiencies noticed during field
Rajasthan 23.9 48.8 visits as well as those pointed out during
Sikkim 52.7 77.8 regional consultations, need to be rectified.
Tamil Nadu 91.4 81.8 Feedback on some of the fundamental issues
Tripura 32.6 38.5 regarding healthcare is given below:
Uttar Pradesh 25.8 30.3
Uttarakhand 44.5 62.9 Basic Health Services
West Bengal 50.3 75.8
All India 45.9 54.1 7.31. Despite the intent to improve the health
infrastructure particularly at the primary level,
in 2002-04 to 50.9 per cent in 2007-08. Other gaps persist in terms of human resources,
States that have shown significant improvement drugs and equipment. While there has been a
are Jammu & Kashmir (from 31.7 per cent to substantial improvement in the appearance of
62.5 per cent), Jharkhand (from 25.7 per cent to health facilities due to availability of flexi-funds
54.1 per cent), Rajasthan (from 23.9 per cent to under NRHM, the improvement in services has
48.8 per cent), Sikkim (from 52.7 per cent to not been uniformly commensurate. People still
77.8 per cent), West Bengal (from 50.3 per cent incur substantial out-of-pocket expenses for
to 75.8 per cent), Mizoram (from 32.6 per cent purchasing medicines from the market and
158 Mid-Term Appraisal of the Eleventh Five Year Plan

there is need for provision of generic drugs Decentralisation

which cost less. The health centres labelled as
24X7, generally provide facilities only for 7.33. The implementation of NRHM has
deliveries. People spend large amounts of initiated measures for decentralisation (such as
money on travelling long distances to access district level programme implementation plans
basic health services. Though Mobile Medical and village level health and sanitation
Units are becoming operational, their number committees) but progress has been varied
and outreach is limited. The local Rural Medical across States. Paucity of local capacity for
Practitioners (RMPs), who are available round decentralised planning and decision making,
the clock close to peoples’ homes, continue to based on an informed prioritisation of needs
provide their services as usual. and effective interventions, is hindering this
process. In the absence of such capacity,
Disease Programmes interventions are largely designed on the basis
of a general framework and priority matrix. This
7.32. Disease control programmes have is provided by the Centre or the State without
received varied degrees of attention and have adequately taking into account district specific
differed in performance. Tuberculosis (TB) has features such as geographic diversity,
been receiving attention but Multi-Drug remoteness, disease profile, cultural
Resistant TB has become a public health differences, availability of health services and
challenge. Malaria remains largely unreported potential for involving local partners. There has
and is under-estimated. In a large number of not been sufficient effort to prepare the
cases, reports of the diagnostic tests are not community for its involvement.
provided or are made available after
considerable time lag (Box 7.2). Medicine Accredited Social Health Activists (ASHAs)
supply is not regular and people have no choice
but to buy them from the market. Technically, 7.34. The appointment of locally recruited
HIV/AIDS control is not an integral component women as Accredited Social Health Activists
of NRHM. However, there is a felt need for (ASHAs) who would link potential beneficiaries
better awareness, counselling services and with the health service system is an important
testing facilities. It was also suggested that element of the NRHM. The good part is that
HIV/AIDS control programme be integrated 7.49 lakh ASHAs have been appointed; but
with the NRHM facilities at the block/community several issues still need to be resolved. Not
level. only is there a lack of transparency in the
selection, ASHAs are often inadequately
trained. Besides, their only focus seems to be
Box 7.2 on facilitating institutional deliveries. The ASHA
The Road Not Taken: Practice in the
who accompanies the expectant mother faces
Hinterlands
considerable hardship because she has
The Eleventh Five Year Plan document nowhere to stay for the duration of confinement
highlighted a good practice of reducing as institutional accommodation facilities are non
turnaround time for test results, which could existent. They also often experience long
be replicated throughout the country. Jan delays in payment of incentives.
Swasthya Sahyog (JSS) have trained village
health workers in tribal areas of Bilaspur Village Health and Nutrition Day (VHND)
(Chattisgarh) for taking blood smears. These
are labelled and neatly packed in small soap 7.35. An important activity of NRHM, Village
cases, which are handed over through school Health and Nutrition Day is to promote regular
children to bus drivers. On their way, the community-oriented health and nutrition
drivers drop the smears at the Ganiyari activities. The event is held on a fixed day
hospital run by JSS. Here they are every month to sensitise the community and is
immediately tested and the reports are sent popularly known as ‘Tika Karan Divas’.
back through the same buses on their return However, implementation is ad-hoc in most
trip. This courier system has been operational villages of the high focus States. Surveys
in 21 villages in the area for several years and
has saved many lives.
 Health 159

revealed that only a few pockets in some the benefits. Recognising these shortcomings,
States like Tamil Nadu, Andhra Pradesh, West most States have initiated steps to undertake
Bengal and Assam were aware of VHND. The systemic corrections and streamline the
other drawback of the programme was that it processes.
often restricted itself to immunisation and ante-
natal check up are done on the day. There is no Committees/Societies Under NRHM
nutrition education. To have the desired impact,
VHNDs need to be implemented with the full 7.38. Although committees and societies
intended content of activities and with have been set up at the State and district health
regularity. This can be achieved through more facilities, these do not ensure substantive
active involvement of NGOs and community involvement of the community –or panchayati
based organizations. raj members. Rarely is there any record of the
Rogi Kalyan Samiti meetings. Village Health
Janani Suraksha Yojana (JSY) and Sanitation Committees (VHSCs) are
virtually unknown, even most of the sarpanchs
7.36. Launched to promote institutional are unaware of them. Besides, many States
deliveries, JSY provides cash incentive to have still to constitute VHSCs and fund them.
expectant mothers who opt for institutional
delivery. Poor women from the remote districts Mainstreaming AYUSH
in Bihar, Orissa and other States are reported
to be visiting institutions to avail JSY benefits. 7.39. NRHM has mainstreamed AYUSH into
However, except for parts of Southern States, the rural health services by co-locating AYUSH
most public health institutions are not well personnel in primary health care facilities
equipped for conducting deliveries at the resulting in increase in utilization of AYUSH
community or even at the block level. The treatment. AYUSH practitioners are also used
beneficiaries are often asked to purchase to fill in the position of Allopaths in Primary
gloves, syringes and medicines from the Health Centres particularly in States that have a
market. The general view, endorsed by visits to substantial shortage of MBBS doctors. While
the field is that the health centres and sub- this is a positive development, efforts have to
divisional hospitals remain understaffed and are be made for training AYUSH practitioners in
poorly run and maintained. A very large number public health.
are unhygienic and incapable of catering to the
patient load. Women who deliver at the health Maternal & Child Health
facility are discharged a few hours after
delivery. Sometimes, deliveries take place on 7.40. Despite positive feedback, there are a
the way to the health facility or even outside the number of shortcomings in the system that
locked labour rooms. Lack of co-ordination and inhibits pregnant women from seeking
mutual understanding between the ANM and institutional care. For instance, there is no
ASHA results in the suffering of pregnant privacy for the examination of pregnant women
women. either at the Anganwadi Centres or the Health
Camps, and the ANMs rarely pay household
7.37. The scheme is also facing operational visits. Despite the incentive for institutional
problems in the payment of incentives to the deliveries under JSY, women prefer the local
beneficiaries as well as ASHAs. The payments dais. Sometimes, even many of those living
are delayed by three to four months (at times near a public health facility, prefer dais because
even a year in some States) and often made of the bad experiences at these facilities they
only after repeated visits by the claimants. know from hearsay. It must be emphasised
There are complaints of unauthorised deduction however that for every one of these
by the disbursing functionaries. While cheque observations, there are equal number of reports
payments reduce leakages, they further delay of women receiving good quality institutional
the process. Due to lack of identity card or care and prompt treatment for complications.
proof of address, many women are unable to
open bank accounts and therefore cannot avail
160 Mid-Term Appraisal of the Eleventh Five Year Plan

7.41. NRHM has been able to provide an underprivileged population. It provides cashless
extensive network of transport facilities in health insurance cover up to Rs.30,000 per
States that have established emergency annum per family. The premium is paid by the
transport systems. On the other hand, there is Centre and State Governments on a 75:25
very little awareness about the Integrated sharing basis with the beneficiary paying only a
Management of Neonatal and Childhood registration fee.
Illnesses (IMNCI) strategy. In the event of
illness of either the mother or the neo-nate, 7.45. Twenty-five States are in the process of
RMPs (some times even local quacks) are implementing the RSBY and till February 2010,
consulted. Home-based new born care based more than 1.25 crore biometric enabled smart
on Gadchiroli model and other community cards have been issued for providing health
based innovations have yet to be made an insurance cover to more than 4 crore people,
integral part of the child health strategy. from any empanelled hospital throughout the
country. Around 4.5 lakh persons have already
Family Planning availed hospitalisation facility. The scheme is
now being gradually extended to the non-BPL
7.42. Government programmes on family category of workers as well. Linkages with
planning are known all over the country. RSBY in public sector hospitals need to be
However, very few are aware of the monetary strengthened.
compensation that is due in the event of failure
of sterilization or side effects of Intra-Uterine National AIDS Control Programme (NACP)
Device (IUD). Women find it difficult to get
compensation and if they do, it is only through 7.46. The NACP goal was to halt and reverse
interventions of an active NGO or the Court. At the epidemic in India over the five years period
many places, where condoms are available, of the Eleventh Plan. This was to be done by
there are no oral contraceptives. Supply of oral integrating programmes for prevention, care,
contraceptive Mala-D, which is one of the most support and treatment, as well as addressing
popular forms of contraception, is irregular. the human rights issues specific to people living
With no co-ordination amongst various with HIV/AIDS (PLWHA).
agencies, the huge demand for contraception
remains unmet. This necessitates a forward 7.47. Although the achievement of physical
effort on improving supply of contraceptives and targets under the programme is satisfactory,
related services. Nine States have already MoHFW has yet to introduce a HIV/AIDS Bill to
achieved a total fertility rate (TFR) of 2.1 or less protect the rights of children, women and HIV
but in seven it remains higher than the national infected persons and avoid discrimination at
average. Much greater effort needs to be made work place. A National Blood Transfusion
in these seven States. Authority is to be established during the
remaining period of the Plan. Voluntary blood
Safe Abortion/Medical Termination of donation has to be encouraged further to bridge
Pregnancy the gap in demand and supply of blood.

7.43. It is of concern that provision of safe 7.48. The objective to reduce new infections
abortion facilities has not received much by 60 per cent in high prevalence States so as
attention and even the ASHAs are unaware of to obtain reversal of epidemic and by 40 per
facilities which the rural poor could have cent in the vulnerable States in order to
accessed. This calls for immediate attention. stabilise the epidemic, can only be
substantiated through independent evaluation
Rashtriya Swasthya Bima Yojana (RSBY) studies. These need to be undertaken.

7.44. Launch of RSBY by Ministry of Labour 7.49. Expenditure under National AIDS
& Employment in 2007 has been an important Control Programme including STD control
step to supplement the efforts being made to during 2007-08 and 2008-09, has been 112.60
provide quality health care to the poor and per cent and 91.91 per cent of the approved
 Health 161

outlays respectively. During the current financial per cent during 2007-08. The anticipated
year (2009-10), the anticipated expenditure expenditure in 2009-10 has again fallen; based
based on RE is 89.10 per cent of the approved on RE it is 56.67 per cent of the approved
outlay. outlay.

National Cancer Control Programme (NCCP) National Mental Health Programme (NMHP)

7.50. In view of high cost of treatment of 7.53. Despite enhanced allocations for the
cancer, ‘Health Minister’s Cancer Patient Fund’ implementation of NMHP as per commitments
with a corpus of Rs. 100 crore was set up in made in the Eleventh Plan, the programme has
2008-09.The revised strategy has since been lagged behind. It was divided into two parts.
prepared, which aims at early diagnosis and
treatment by decentralizing such function to 7.54. Part I of NMHP relates to human
districts. Currently, the NCCP continues on the resource development, spillover schemes and
pattern of Tenth Plan. continuing 123 District Mental Health
Programmes (DMHPs). At least 11 centres of
7.51. The overall expenditure in NCCP is very excellence of mental health and neurosciences
low, 33 per cent and 28 per cent respectively of are expected to be established within the Plan
the approved outlays for 2007-08 and 2008-09. period by upgrading existing mental health
The anticipated expenditure based on RE is 50 institutions plus strengthening a number of
per cent of the approved outlay for 2009-10. institutions for human resource development.
During the rest of the Plan period, the
restructured programme will have to be 7.55. The Part II of the NMHP which is yet to
implemented to meet commitments for the be launched relates to comprehensive
Eleventh Plan. expansion of DMHPs from existing 123 districts
to 325 under served districts. This has to be
Tobacco Control Programme done based on the findings of evaluation study
conducted by the Indian Council of Market
7.52. The Tobacco Control Programme Research.
initiated in the Eleventh Plan, aims to help
implement the provisions of ‘Cigarettes and 7.56. Expenditure under the programme is
other Tobacco Products (Prohibition of very low, 20.81 per cent and 33.26 per cent
Advertisement and Regulation of Trade and respectively of the approved outlays for 2007-
Commerce, Production, Supply and 08 and 2008-09. During 2009-10, the
Distribution) Act, 2003’ and also to bring about expenditure is likely to be 78.57 per cent of the
greater awareness about the harmful effects of approved outlay (as per RE figures) . During the
tobacco consumption. All provisions of the Act, remaining period of Eleventh Plan, NMHP will
have been implemented including ban on need to be expanded to provide the much
smoking in public places, health warnings on needed basic mental health services to people
unit packs of cigarettes and other tobacco and to integrate these with NRHM.
products including pictorial warnings, except
regulation of nicotine and tar contents in Human Resources for Health
tobacco products. The district level programme,
however, is yet to be implemented in most of 7.57. A key objective of the Eleventh Plan is
the districts. Compliance with provisions of the to address the problem of shortage of basic
Act is still a major challenge as the personnel in education infrastructure and human resources
different parts of the State and District for health. The process of establishment of
Administration lack sensitisation to the ANM and Nursing Schools/Colleges and
significance of this programme. Cessation Paramedical Institutions has begun. There is a
services to encourage quitting tobacco are shortage of 1.93 lakh ANMs in the government
inadequate. Expenditure under the programme sector alone. Of the 633 districts in the country,
registered an improvement during 2008-09 with 246 districts do not have any ANM school.
112.87 per cent expenditure as against 34.95 During the remaining period of Plan, 132
162 Mid-Term Appraisal of the Eleventh Five Year Plan

Auxiliary Nursing Midwifery schools are being and hospital complexes is likely to start in the
set up in the high focus States of Bihar, second quarter of 2010-11.
Chattisgarh, Himachal Pradesh, Jharkhand,
Jammu & Kashmir, Madhya Pradesh, North 7.61. The second component of PMSSY
Eastern States, Orissa, Rajasthan, Phase 1 includes upgradation of 13 State
Uttarakhand, Uttar Pradesh and other districts Government medical college institutions. These
in the country which do not have ANM schools. are at Government Medical College, Jammu
(Jammu & Kashmir); Government Medical
7.58. The shortfall of nurses is mainly in the College, Srinagar (Jammu & Kashmir); Kolkata
Northern and North Eastern States. There is no Medical College, Kolkata (West Bengal); Sanjay
general nursing and midwifery school in 292 Gandhi Post Graduate Institute of Medical
districts of the country. In order to meet the Sciences, Lucknow (Uttar Pradesh); Institute of
shortage of general nursing and midwifery in Medical Sciences, BHU, Varanasi (Uttar
the country, 137 general nursing and midwifery Pradesh); Nizam Institute of Medical Sciences,
schools are being set up predominantly in the Hyderabad (Andhra Pradesh); Sri
high focus States. Further, Regional Institutes Venkateshwara Institute of Medical Sciences,
of Para Medical Sciences (RIPS) are to be set Tirupati (Andhra Pradesh); Government
up during the Plan followed by Pharmacy Medical College, Salem (Tamil Nadu); Rajendra
Schools/Colleges. Institute of Medical Sciences, Ranchi
(Jharkhand); B.J. Medical College, Ahmedabad
7.59. Various measures undertaken to tackle (Gujarat); Bangalore Medical College,
the shortage and adequate training of human Bangalore (Karnataka); Grants Medical College
resources have yet to show result. The & Sir J.J. Group of Hospitals, Mumbai,
approval of the Medical Council of India for the (Maharashtra) and Medical College,
short term rural health care course is expected Thiruvananthapuram, (Kerala). The outlay
to expand the pool of medical practitioners. The provided is Rs.120 crore per institution, of
existing gaps in human resources and which Rs. 100 crore would be borne by the
inequalities regarding facilities for medical, Central Government (for SVIMS, Tirupati, it is
nursing and paramedical education in the deficit Rs.60 crore) and the remaining amount will be
States should be analysed further to initiate contributed by the respective States. The State
remedial action during the remaining Plan Governments will also provide the resources
period. (human resources and recurring expenditure)
for running the upgraded facilities. Upgrading of
Pradhan Mantri Swasthya Suraksha Yojana two State Government medical college
(PMSSY) institutions is over. Another four are expected to
be upgraded by July 2010, two by December,
7.60. The PMSSY envisages substantial 2010 and the remaining in 2011.
expansion of central and state government
medical institutions. Phase 1 of PMSSY 7.62. Phase II of PMSSY, approved recently,
envisages establishment of six new AIIMS like provides for the establishment of two new
institutions at Patna (Bihar), Bhopal (Madhya AIIMS like institutions in Uttar Pradesh and
Pradesh), Bhubaneswar (Orissa), Jodhpur West Bengal and upgrading of six State
(Rajasthan), Raipur (Chhattisgarh) and Government medical college institutions at
Rishikesh (Uttarakhand). The original estimate Government Medical College, Amritsar
of each institute was Rs. 332 crore and the (Punjab); Government Medical College, Tanda
latest estimate is about Rs. 820 crore. For (Himachal Pradesh); Government Medical
these new ‘AIIMS like institutions’, construction College, Nagpur (Maharashtra); Jawaharlal
of medical colleges and hospital complexes and Nehru College of Aligarh Muslim University,
construction of residential complexes have Aligarh (Uttar Pradesh); Government Medical
been taken up as separate activities. College, Madurai (Tamil Nadu) and Pandit B.D.
Construction of housing complex at all six sites Sharma Postgraduate Institute of Medical
has commenced and work for medical colleges Sciences, Rohtak (Haryana).
 Health 163

7.63. Overall expenditure under PMSSY had care through PHCs and CHCs is fully realised.
shown improvement in 2008-09 with
expenditure of 92.86 per cent as against 58.33 7.66. The scheme has two components –
per cent in 2007-08. However, the anticipated ‘Strengthening of Maternal Health and Child
expenditure based on RE figures in the current Health wing/hospital and other wings in District
year (2009-10) is only 47.21 per cent of the Hospitals’ (this component has since been
approved outlay for 2009-10. subsumed under NRHM) and ‘Up-gradation of
District hospitals into teaching hospitals in
Redevelopment of Hospitals /Institutions underserved areas’. The latter component has
since been bifurcated into two; i) ‘Up-gradation
7.64. The process of redevelopment of of State Medical Colleges’ with an outlay of
hospitals/institutions (Box 7.3), under the Rs.1350 crore for the Plan period for meeting
Central sector is at different stages of the shortage of specialists, which is soon
completion. Redevelopment of the All India expected to be initiated as a new scheme, and
Institute of Medical Sciences is yet to be taken ii) ‘Up-gradation of District hospitals into
up in a comprehensive manner. The overall teaching hospitals in underserved areas
expenditure under the scheme has been over through Public Private Partnership’ with an
100 per cent of the approved outlay for 2007- initial outlay of Rs.150 crore, for which the
08, 2008-09 and the same is expected during proposals have yet to be formulated by
2009-10 as well. MoHFW. This must be expedited.

District Hospitals Assistance to States for Capacity Building

in Trauma Care
7.65. During the Eleventh Plan, upgradation
of District hospitals is envisaged as a key 7.67. Under this scheme, trauma care
intermediate strategy, till the vision of health facilities of 140 identified State Government
hospitals located along the golden

Box 7.3
Redevelopment of Hospitals/Institutions

Lady Hardinge Medical College & Smt. S.K. Hospital and Kalawati Saran Children(KSC) Hospital,
New Delhi: Comprehensive Redevelopment Projects comprise of 3-4 phases. Phase I during the Plan,
involves increasing existing bed strength of Smt. S.K. Hospital from 877 to 1397 (additional 520 beds)
and increasing bed strength of KSC Hospital from 370 to 420 (additional bed strength of 50).
Regional Institute of Medical Sciences (RIMS), Imphal, Manipur: Upgradation involves
repair/renovation of hospital building, construction of academic complex, new OPD building, nursing &
dental wings, hostel accommodation etc.
Lokapriya Gopinath Bordoloi Regional Institute of Mental Health, Tezpur, Assam: Upgradation
involves construction for the main hospital building, residential quarters, hostels, mortuary, incinerator
building, sewerage treatment plant, renovation of existing building, procurement of equipments &
machinery and additional human resources.
Regional Institute of Paramedical & Nursing Sciences, Aizwal, Mizoram: Upgradation involves
construction of new academic building, library cum examination hall, hostel, purchase of lab.
instruments, computerization etc.
Safdarjang Hospital & College, New Delhi: The redevelopment plan includes upgradation of
specialties and superspeciality departments and to increase the bed strength from 1531 to 3000.
Post Graduate Institute of Medical Education & Research, Chandigarh: The upgradation involves
modernization of Nehru Hospital, modernization of research block, advanced cardiac centre, advanced
trauma centre, advanced eye centre, advanced mother centre, Institute of Paramedical Sciences,
renovation of hostels for doctors & nurses and augmentation of equipments.
Jawaharlal Institute of Post Graduate Medical Education & Research, JIPMER, Puducherry:
Comprehensive Redevelopment project comprises of construction of teaching block, 400 bedded
women and children hospital, upgradation of existing departments, construction of new hostel complex
and procurement of equipments.
All India Institute of Medical Sciences (AIIMS), New Delhi: Comprehensive proposal yet to be
submitted by the Ministry of Health & Family Welfare.
164 Mid-Term Appraisal of the Eleventh Five Year Plan

quadrangle/north-south corridor and east-west complemented by the services under the

corridor are under different stages of up- system.
gradation. The network for trauma care and
emergency management is expected to be fully 7.69. There has been steady and systematic
operational by the end of Eleventh Plan. The progress for conservation and cultivation of
National Programme on Burn Injuries is also to medicinal plants. During the balance plan
be launched within the existing budgetary period, support will have to be given to farmer
provisions for the Department of Health & clusters. A start has been made to support
Family Welfare. During 2007-08 and 2008-09, common quality control facilities in eight
the expenditure has been 90.10 per cent and AYUSH industry clusters in different regions. To
91.95 per cent of the approved outlay ensure internationally acceptable standards for
respectively. For 2009-10, the anticipated AYUSH, a Pharmacopeial Commission is being
expenditure based on RE is lower at 66.12 per established as envisaged in the Plan. Steps
cent. have also been taken to establish a Council for
International Cooperation to promote AYUSH in
AYUSH foreign countries. However, the progress has
been slow on projects related to reforms in
7.68. Though AYUSH personnel are being AYUSH undergraduate and postgraduate
co-located and co-posted at the health facilities education, AYUSH and Public Health,
under NRHM for mainstreaming, yet the Revitalisation of Local Health Traditions,
infrastructure status of AYUSH rural cataloguing and digitisation of manuscripts and
dispensaries and hospitals is generally AYUSH IT network. Overall expenditure of the
deplorable. For creating public awareness Department of AYUSH has been gradually
about the strengths of AYUSH, major picking up during the Plan period (see Table
campaigns have been launched through mass 7.5).
media. However, these still need to be

Table 7.5 Department wise Allocation of funds and Actual Expenditure *

(Rs. in crore)
S.No. Departments 2007-08 2008-09 2009-10 @ 2010-11
D/O Health & Family welfare
1 (a) NRHM
Funds allocated 10,890.00 11,930.00 13,930.00 15,440.00
Actual Expenditure 10,380.25 11,260.18 13,377.75 -
% utilisation 95.32 94.39 96.04 -
(b) Health (Non-NRHM)
Funds allocated 2,985.00 3,650.00 4,450.00 5,560.00
Actual Expenditure 2,183.71 3,008.22 3,825.25 -
% utilisation 73.16 82.42 85.96 -
(c) Total
Funds allocated 13,875.00 15,580.00 18,380.00 21,000.00
Actual Expenditure 12,563.96 14,268.40 17,203.00 -
% utilisation 90.55 91.58 93.60 -
2 D/O AYUSH
Funds allocated** 488.00 534.00 734.00 800.00
Actual Expenditure 382.54 471.12 680.00 -
% utilisation 78.39 88.22 92.64 -
3 D/O Health Research (New Department)
Funds allocated - 420.00 420.00 500.00
Actual Expenditure - 390.56 400.00 -
% utilisation 92.99 95.24 -
4 D/O AIDS Control ( New Department)
Funds allocated - - *** ***
Actual Expenditure - -
% utilisation
@ Actual Expenditure figures for 2009-10 are the Revised estimates (RE) figures.
* Including releases to States
** Including AYUSH’s contribution towards NRHM as Rs.120 crore each for 2007-8 as well as 2008-09, Rs.197 crore for 2009-10
and Rs. 232 crore for 2010-11.
*** Provision of Rs.1100 crore for 2009-10 and Rs.1435 crore for 2010-11 for National AIDS Control including STD Control under
the Department of H&FW available for the new Department
Source: Ministry of Health & Family Welfare
 Health 165

Health Research • International cooperation in medical and

health research;
7.70. The Department of Health Research
(DHR) was established in the Ministry of Health • Matters relating to epidemics, natural
& Family Welfare on 18 September 2007. calamities and development of tools to
Activities of Indian Council of Medical Research prevent outbreaks;
(ICMR), a component under the ongoing • Matters relating to scientific societies and
scheme of Medical Education, Training & associations, charitable and religious
Research are now subsumed under DHR. endowments in medicine and health
Against the agenda set during Eleventh Plan, research areas; and
ICMR has 1,346 extramural projects (645 new)
under the extramural research programme • Coordination in the field of health research
through funding to medical colleges, research with governments, organisations and
institutes and universities. As many as 98 institutes.
extramural projects including 24 new are under 7.72. While these are important, health
progress or have been initiated in the North systems research, particularly operations
East region. Under the programmes for research, needs both national attention and
development of indigenous diagnostic reagents, funding support. Zoonotic diseases must also
raw materials and vaccines for H1N1, three be prioritised among emerging infections, with
molecular assays have been developed. Study appropriate linkages to veterinary, agricultural,
on climate change and vector-borne diseases forestry (wildlife) and environmental research
has found that vector distribution has been systems.
changing which leads to transmission in new
areas. A study to develop capacity building of 7.73. With the development of sophisticated
primitive tribes for health care has been tools of modern biology, a better understanding
operational in 15 districts of seven States of the of complex interplay between the host, agent
country. Under the study, link persons (one and environment is emerging. This is resulting
Tribal Welfare Volunteer and one Dai in a new generation of knowledge where bio-
Volunteer) have been identified for every 500 markers and the immunological as well as the
population and trained respectively for genetic basis of disease assume great
treatment of minor ailments and safe delivery. significance. This scientific knowledge is to be
As part of project evaluation, these have been used further by the Department along with other
found to be potentially useful for future health departments like the Department of Bio-
care interventions. Technology and the Council for Scientific &
Industrial Research to develop drugs,
7.71. The Department has proposed nine diagnostics, devices and vaccines that could
schemes for the remaining period of Eleventh find a place in the health system of the country.
Plan for which detailed proposals are to be A vibrant interface is required to be developed
submitted. Indian Council of Medical Research between the research community, the industry
(ICMR) is an on-going scheme while the other and the delivery systems for health care.
eight are new. These are:
7.74. Since the Department of Health
• Promotion, co-ordination and development Research (DHR) was created after the
of basic, applied and clinical research; commencement of the Eleventh Plan, there was
• Promotion and guidance on research no separate plan allocation for the Department,
governance issues; apart from the allocation for ICMR, which was
transferred to the new Department. The Plan
• Inter-sectoral co-ordination in medical, allocation for ICMR was Rs. 4306 crore. The
biomedical and health research; expenditure against the allocations made to
DHR has been good till now (Table 7.5). Based
• Advanced training in research in medicine
on the progress, allocations for the remaining
and health;
period of the Eleventh Plan will be made for the
Department.
 166 Mid-Term Appraisal of the Eleventh Five Year Plan

Others 7.78. Details of schemes addressing the

nutrition status and health related issues are
7.75. Eleventh Plan is committed to initiating given in other Chapters.
certain other schemes for which budgetary
provisions have been made. The schemes FINANCING AND EXPENDITURE OF THE
which have not picked up after initiation during H&FW PLAN SCHEMES
this Plan are e-Health (including Telemedicine)
(see Box 7.4) as well as the National 7.79. The Gross Budgetary Support (GBS)
Programme for Prevention and Control of envisaged for the Eleventh Plan for Department
Diabetes, Cardiovascular Diseases (CVDs) and of H&FW and AYUSH was Rs.1,36,147 crore
Strokes. There is a need to integrate this and Rs.3,988 crore respectively, making a total
programme with the National Cancer Control of Rs.1,40,135 crore for the Ministry of H&FW.
Programme and the Tobacco Control Two new departments, namely, Health
Programme, because of the common Research and AIDS Control have been created
determinants and convergent pathways for during this period.
prevention.
7.80. The expenditure by the Department of

Box 7. 4
Telemedicine
The country already has the advantage of a strong IT fibre backbone and indigenous satellite
communication technology with trained human resources in this regard. With enhanced efforts,
telemedicine could help to bring specialised health care to the remotest corners of the country.
Telemedicine is likely to provide the advantages of tele-diagnosis, especially in the areas of cardiology,
pathology, dermatology and radiology besides continuing medical education (CME). It will also be of
immense use for diagnostic and consultative purposes for patients getting treatment from the
secondary level health care facilities and below. Models for empowering frontline workers with IT
enabled connectivity should also be evaluated and modified appropriately.

7.76. The schemes which are yet to be H&FW in the first three years of the Plan under
properly designed and launched by the Ministry NRHM has been 95.32 per cent, 94.39 per cent
of Health & Family Welfare are the National and 96.04 per cent respectively of the funds
Centre for Disease Control, Advisory Board for allocated, whereas under non-NRHM it has
Standards, Programme for Blood & Blood been lower at 73.16 per cent, 82.42 per cent
Products and Health Care of Older Persons. and 85.96 per cent respectively (Table 7.5).
Models should be evaluated and developed for Overall expenditure for the Department has
delivery of urban health care, especially been 90.55 per cent, 91.58 per cent and 93.60
focusing on establishing an efficient primary per cent respectively in 2007-08, 2008-09 and
health system and providing adequate 2009-10. Department of AYUSH has been able
coverage to the urban poor. Since rural and to spend 78.39 per cent, 88.22 per cent and
urban health care converges at the secondary 92.64 per cent of the funds allocated for the
and tertiary levels, and both are parts of the respective years. As newer initiatives take time
same supervisory and management structure at to become operational the initial fund utilisation
the State Government level, the Ministry could is low.
contemplate establishing an Integrated National
Health Mission. 7.81. Under NRHM, utilisation of funds by
States has shown improvement but the
7.77. Provision has also been made in the situation is still not satisfactory. As per
Eleventh Plan to initiate certain pilot projects calculations based on MoHFW’s data, utilisation
(Box 7.5). of funds by all States increased from 59.03 per
cent (2005-06) to 64.97 per cent (2008-09). In
 Health 167

Box 7.5 Pilot Projects

Sports Medicine: Construction work at Safdarjung Hospital, New Delhi is under progress and is
expected to be completed by May, 2010 for the establishment of Sports Injury Centre in a time
bound manner keeping in view the ensuing Common Wealth Games, 2010.
Deafness: The pilot programme comprising of capacity building of PHCs, CHCs and District
Hospitals, IEC as well as provision of supplies for treatment & rehabilitation of hearing disorders
launched in 25 districts of ten States and one Union Territory, will be expanded to 203 districts
covering all the States/UTs by 2012 in a phased manner by including about 45 new districts each
year.
Leptospirosis: Pilot project is under implementation in identified districts of Gujarat (four), Kerala
(two) and Tamil Nadu (two) to strengthen diagnostic labs & patient management facilities, train
human resources and create awareness regarding timely detection and appropriate treatment of
patients.
Human Rabies: The project to prevent human deaths due to rabies and reducing the
transmission of disease in animals has been launched in five cities viz. Ahmedabad, Bangalore,
Pune, Madurai & Delhi. Training is being provided to health personnel and labs are being
strengthened for diagnosis of rabies. To be effective, the programme must also engage animal
husbandry and veterinary agencies for providing technical support to Municipal and District
authorities, to prevent animal to animal, and animal to human transmission as well as strengthen
surveillance systems.
Medical Rehabilitation: Eleven medical colleges have been identified during 2007-08 to 2009-10
for setting up of Department of Physical Medicine & Rehabilitation for meeting the needs of
persons suffering from various disabilities. The project will provide training for medical
rehabilitation services at various levels.
Oral Health: AIIMS, New Delhi has conducted a study on assessment of safety profile for dental
procedures and components of the project will include oral health education by involving health
workers, school children, teachers and mass media.
Fluorosis: The project launched in six districts viz. Nellore (Andhra Pradesh); Jamnagar
(Gujarat); Nagaur (Rajasthan); Nayagarh (Orissa), Ujjain (Madhya Pradesh) & Dharmapuri (Tamil
Nadu) is for assessing the intake of fluoride and imparting training to medical doctors and
paramedics for early diagnosis of fluorosis.
Organ Transplant: Yet to be initiated.

case of high focus States, the utilization level budget planning, further release by the States
has increased from 56.35 per cent (2005-06) to to the districts for which the expenditure has not
62.11 per cent (2008-09). In the non-high focus been reported, poor absorptive capacity of the
States; the increase is from 62.62 per cent to system and delays in execution of civil works.
69.23 per cent during the same period, All such lacunae need to be examined in order
indicating relatively higher utilization than in to take corrective measures.
high focus States.
THE ROAD AHEAD
7.82. There is large amount of unspent
balance with States under NRHM. Unspent 7.83. A determined effort needs to be made
amount of Rs 8,639.12 crore is lying with States in the last two years of the Eleventh Plan to
against an amount of Rs.40,820.46 crore meet Plan targets. Most of the institutional
released during the period from 2005-06 to arrangements under NRHM are in place but the
2009-10 (MoHFW’s Data Sheets on NRHM as processes required to achieve the outcomes
on 31 January 2010). This could be due to poor need to be strengthened. Special efforts need
168 Mid-Term Appraisal of the Eleventh Five Year Plan

to be made for the excluded/vulnerable areas draw up the scope and limitations of rational
and groups. Rather than mechanically cross medical practice and train medical
establishing health facilities on the basis of personnel accordingly. The fourth implication is
population norms, there is need to re-visit for introducing integrative medicine modules
these; as most of the neglected groups reside both as part of CME (Continuing Medical
in far flung areas or are difficult to reach. The Education) for doctors working in NRHM and in
area covered by a Sub-Centre should be co- the professional medical education curriculum
terminus with the jurisdiction of Gram of all systems of medicine. All these four
Panchayat. Besides, the Community Health implications need to be operational for the
Centres should be located at Block integration to become fruitful.
headquarters so that there is convergence of
services and also an environment for health 7.87. As there are large unspent balances
personnel to stay there. with the States under NRHM, the MIS of the
Ministry of the Health and Family Welfare
7.84. An effective health care delivery system should go beyond allocations and capture the
can only be achieved if the programmes are situation and expenditure at the grass-roots
administered judiciously and implemented in level. For this, it is necessary to institute an
transparent and efficient manner. The role of online monitoring system.
governance is crucial as are technical and
social audits. If all available resources are 7.88. There is equal need to upscale
properly utilised and quality governance is community monitoring for accountability and
provided by the local leadership, we may be improving access for the poor and deprived
able to achieve many of the health targets of (Box 7.6).
the Eleventh Five Year Plan.

7.85. Issues related to human resources for Box 7.6

health as envisaged in the Eleventh Plan have Upscale Community Monitoring
still not been adequately addressed. Besides
The first phase of community monitoring under NRHM
improving governance and accountability, the was implemented in partnership with NGOs. It covered
existing measures being taken to meet the 1600 villages in 35 districts of 9 States. During this
shortage of ANMs/Nurses, other Paramedics, process, Village Health and Sanitation Committees
Doctors, Specialists etc, need to be were trained by NGOs to prepare Village Health report
supplemented with measures such as opening cards and PHC report cards using traffic lights (red,
of new training institutions, public-private yellow and green) to assess the services that they
have been receiving. These report cards were shared
partnerships etc. The need for expanding para- at public events (Jan Sanwai). Follow up has shown
medical human resources, particularly the non- improvement in service delivery through changes in
physician health providers, is to be both colour of traffic lights reflected by them.
explicitly recognised and acted upon. The
health system needs public health specialists at
all levels. In the long run, every State could
have a public health cadre like Tamil Nadu, 7.89. Appropriate matching contribution
which is integrated with the health department towards NRHM by all States and Union
hierarchy at all levels. Territories during the Eleventh Plan must be
ensured and a path should be paved for higher
7.86. The policy of integrating AYUSH into contribution by the States during the Twelfth
NRHM has at least four implications. The first is Plan.
training AYUSH personnel in public health and
epidemiological perspectives on which their 7.90. Integrated Disease Surveillance
exposure is negligible. The second is Programme (IDSP) should form the backbone
developing an informed code of conduct for of information systems for providing rapid
cross referrals based on an understanding of response to infections and must be the basis for
the strengths and limitations of modern monitoring and evaluation of all disease control
medicine and AYUSH respectively. Third is to programmes. Besides, the IDSP has to be
 Health 169

developed through public-private partnership to the deficiencies pointed out here need to be
act as a platform for integrating disease and corrected. The Government is committed to
risk factor relevant information. This will curtailing out-of-pocket expenses of the poor to
contribute to building a comprehensive health keep their health expenditures under control. In
information system to inform the policy makers this regard, it is pertinent to mention that the
and the concerned programme managers. time is ripe for a paradigm shift from being a
‘pure provider of services’ to ‘providing a choice
7.91. There is a need to exploit new of services’ by creating a regulated quasi-
opportunities in health care delivery offered by market for health care through carefully tailored
telemedicine and rural telephony. The public-private partnerships. This will ensure that
programmes should be ‘consumer based’ and the poor, as much as the rich, can exercise a
not ‘provider based’. It is essential that health degree of choice in utilisation of health care
programmes are structured on the basis of services. Towards this end, RSBY and other
feedback from household surveys, which better health insurance schemes initiated by a few
indicate the extent of community satisfaction as States need a closer look so that appropriate
compared to purely departmental statistics. models can be evolved and implemented
nation-wide.
7.92. An independent national data collection
process for mapping of health and nutritional 7.94. A shift in approach is required towards
status at frequent intervals is needed to identify ‘area specific interventions’ rather than
states and districts with greater public health ‘universalisation of programmes/schemes’ to
problems. This will facilitate planning and achieve the desired goals.
execution of area specific strategies. Besides
the Annual Health Survey being initiated, 7.95. Finally, the total allocation of plan and
National Nutritional Monitoring Bureau (NNMB) non-plan resources for health for the Centre
could be expanded to all the States as and States combined remains low compared to
suggested in the Eleventh Plan. the target of taking it to 2-3 per cent of GDP. A
very strong effort will be needed in the last year
7.93. NRHM has set in motion a fairly of the Eleventh Plan and mainly in the Twelfth
comprehensive process of reforms. However, Plan to achieve this goal.
 8
Social Justice
8.1. Persistent socio-economic backward- rest of the society. ‘Inclusive Growth’ is thus
ness among the Socially Disadvantaged seen as an instrument to ensure `Social Justice’
Groups viz., the Scheduled Castes (SCs), to Scheduled Castes and other similarly
Other Backward Classes (OBCs), Scheduled situated socially disadvantaged groups that are
Tribes (STs), Minorities and Other Vulnerable subjected to socio-economic disabilities,
Groups, such as the persons with disabilities, particularly those arising from untouchability
aged and the Social Defence Groups including and social exclusion. The specific commitments
victims of drug abuse and alcoholism resulting are listed in Box 8.1.
from inequality, deprivation and exclusion, has
been specifically addressed in the Eleventh 8.4. As per 2001 Census, SCs accounted
Plan through the approach, `faster and inclusive for 166.63 million (16.2 per cent); STs 84.32
growth’. million (8.2 per cent); Minorities 193.66 million
(18.4 per cent); Person with Disabilities 21.9
8.2. Despite perceptible improvement in the million (2.13 percent); and Aged 76.62 million
socio-economic status of the disadvantaged (7.5 percent). It has been estimated by Mandal
groups, much more needs to be done to ensure commission that the OBCs accounted for 52
that socially disadvantaged groups, take full percent of the country’s total population.
advantage of India’s growth story. This situation
warrants greater efforts and commitment to Social Empowerment
pursue the Eleventh Plan agenda of `inclusive
growth’. This calls for a three - pronged strategy 8.5. Education being the most effective
consisting of - i) Social Empowerment; ii) instrument for socio-economic empowerment,
Economic Empowerment; and iii) Social high priority continues to be accorded to
Justice, to ensure removal of disparities and improve the educational status of SCs,
elimination of exploitation. especially that of women and the girl children in
this category. Data regarding literacy,
SCHEDULED CASTES enrollment and dropout rates for SCs in
comparison with the general population are
8.3. The effort in the Eleventh Plan has summarized in Table 8.1. The data clearly show
been directed towards accelerating the process that there has been improvement over time but
of socio-economic development among the SCs gaps persist.
so as to bring them on equal footing with the
 Social Justice 171

Box 8.1
Commitment of the Eleventh Plan
Social Empowerment
• Pre-Matric Scholarship for children of those who engaged in unclean occupation needs to be
enhanced the funding pattern from 50:50 to 100%.
• Financial assistance to SC students to access quality education in top class educational
institutions.
• Modification of Coaching and Allied scheme is needed to ensure more coverage.
• Vocational training/skill development programmes for students who discontinued education
after schooling, through ITIs, Polytechnics, or other institutes.
• Both Pre-Matric and Post-Matric Scholarship schemes should be revised by enhancing the
income ceiling for eligibility and rate of scholarship and maintenance allowance.
• National Overseas Scholarships Scheme for OBCs to be formulated similar to those for SCs
and STs.
• Up-gradation of skills of such categories so that they can compete better in the market.
• There is an imperative need to carry out a census of OBCs now or in the next census in
2011.
• The income ceiling of Rs.2.5 lakh per annum for purposes of obtaining OBC certificates may
be periodically reviewed to make it more realistic.
Economic Empowerment
• A Commission on Land Reforms will be set up look into issues of: (i) continued possession
and effective uses of land distributed earlier to SCs under various programmes/legislative
interventions; and (ii) availability of land for distribution to SCs/STs/landless families.
• State Governments to revise agricultural wages every five years.
• Financial institutions should restructure the schemes for more ‘sustainable’ & viable project.
Social Justice
• In the Self Employment Scheme for Rehabilitation of Manual Scavengers, rehabilitation
should be in missionary mode with commitment and zeal.
• The implementation of the Protection of Civil Rights Act, 1955 and Scheduled Castes and
Scheduled Tribes (Prevention of Atrocities) Act, 1989 has to be enforced in letter and spirit to
bring about speedy justice to the aggrieved.
• Action needs to be taken to clear backlog in filling up SC reserved posts of various
categories in the government.
• Also the private sector will have to play a proactive role in providing sufficient job
opportunities especially to the marginalized and discriminated sections of Indian society.
• Reservation for OBC students in all the Central and Centrally aided schools/
colleges/professional institutes.

8.6. The Centrally Sponsored Scheme of amounting to 119.36 per cent utilization of the
Post-Matric Scholarship (PMS) to SC Students Eleventh Plan allocation of Rs.2125 Crore. A
- involving 100 per cent central assistance to total of 38 lakh SC students are being benefited
States over and above their earlier committed under the scheme during the first three years
liability - has been accorded a high priority (2007-08 to 2009-10) of the Eleventh Plan.
during the Eleventh Plan. These scholarships
are awarded to all eligible SC students to 8.7. There is a need to develop a suitable
pursue studies beyond matriculation and in all administrative mechanism at State and District
courses. In the first three years of the Eleventh levels so as to implement this scheme more
Plan (2007-08 to 2009-10), anticipated effectively. Timely disbursement of scholarships
expenditure is of the order of Rs.2536.52 Crore, through banks across the States and UTs is
172 Mid-Term Appraisal of the Eleventh Five Year Plan

needed so as to ensure that no SC student assistance to children of the parents engaged in

faces difficulties and disruption in pursuing unclean occupations (i.e., as scavengers,
studies. There is also a need to enhance the tanners, flayers and sweepers). The scheme
stipend amount as well as the income ceiling was revised in December 2008, bringing about
limit under the scheme which have not been a change in the pattern of Central assistance
revised since 2003, linking it up with the from 50:50 to 100 per cent Central assistance
movements in the Consumer Price Index. to the State/UT Government over and above
their committed liability. In addition, there was a
8.8. The scheme of Pre-Matric Scholarships substantial increase in the stipend amount from
for the children of those engaged in unclean Rs.40/- to Rs.110/- p.m. for day scholars and
occupations launched in 1977-78 is another from Rs. 300/-. to Rs.700/- p.m. for
important scheme to provide financial hostellers.Ad-hoc grant has also been raised

Table 8.1
Educational status of Scheduled Castes- Gains and Gaps
(i) Literacy Rates of SCs and Total Population (1961 – 2001)*
Year Total Female SC SC Gap between Gap between SC
Female SCs and and general Female
general ( Col. 3-5)
(Col.2-4)
1 2 3 4 5 6 7
1961 28.30 15.35 10.30 3.30 18.00 12.05
1971 29.45 18.69 14.70 6.44 14.75 12.25
1981 36.23 29.85 21.40 10.93 14.83 18.92
1991 52.21 39.29 37.40 23.76 14.81 15.53
2001 65.38 54.16 54.70 41.90 10.68 12.26

(ii) Gross Enrolment Ratios of SCs and Total Population (1990-91 to 2007-08)**
Year Total Girls Total SCs SC Girls Gap between Gap between SC
SCs & Total Girls and Total
Population Girls
1 2 3 4 5 6 7 8 9 10 11 12 13
Classes Classes Classes Classes Classes Classes Classes Classes Classes Classes Classes Classes
(I – V) (VI – (I – V) (VI – (I – V) (VI – (I – V) (VI – (I – V) (VI – (I – V) (VI –
VIII) VIII) VIII) VIII) (Col.2- VIII) (Col.4- VIII)
6) (Col.3- 8) (Col.5-
7) 9)
1990- 83.80 66.70 71.90 51.90 106.40 52.70 86.20 35.80 -22.60 14.00 -14.30 6.40
91
2007- 114.60 77.50 113.20 74.10 124.90 76.30 116.70 67.70 -10.30 1.20 -3.50 -9.70
08
Gains 30.80 10.80 41.30 22.20 18.50 23.60 30.50 31.90 12.30 12.80 10.80 16.10

(iii) Dropout Rates of SCs and Total Population (1990-91 to 2007-08)**

Year Total Girls Total SCs SC Girls Gap between Gap between
SCs & Total SC Girls and
Population Total Girls
1 2 3 4 5 6 7 8 9 10 11 12 13
Classes Classes Classes Classes Classes Classes Classes Classes Classes Classes Classes Classes
(I – V) (I – VIII) (I – V) (I – VIII) (I – V) (I – VIII) (I – V) (I – VIII) (I – V) (I – VIII) (I – V) (I – VIII)
(Col.2- (Col.3- (Col.4- (Col.5-
6) 7) 8) 9)
1990-91 42.60 60.90 46.00 65.10 49.40 67.80 54.00 73.20 -6.80 -6.90 -8.00 -8.10
2007-08 25.55 43.03 24.82 41.43 31.85 52.62 29.47 50.98 -6.30 -9.59 -4.65 -9.55
Reduction -17.05 -17.87 -21.18 -23.67 -17.55 -15.18 -24.53 -22.22 -0.50 2.69 -3.35 -1.45
(-)
Sources: * Census of India 2001 figures quoted in Selected Educational Statistics 2004-05 (as on 30.09.2004), Statement
11.6 page XLIII Government of India, Ministry of Human Resource Development, Deptt. of Higher Education, Statistics
Division, New Delhi (2007).
** Abstract, Selected Educational Statistics 2007-08 (Provisional) - (as on 30.09.2007), Government of India, Ministry of
Human Resource Development, Deptt. of Higher Education, Statistics Division, New Delhi ( March 2008).
 Social Justice 173

from Rs.550/- to Rs.750/- p.m. for day scholars cent for expansion of the existing girls’ hostels.
and from Rs.600/- to Rs.1000/- p.m. for Funding pattern for boys’ hostels continues to
hostellers. The total expenditure in the first be on a 50:50 sharing basis between the State
three years of the Eleventh Plan is of the order and Central Government whereas, UTs receive
of Rs.142.10 Crore which amounts to 89.37 per 100 per cent Central assistance.
cent of the Eleventh Plan allocation of Rs. 159
Crore for the scheme. Allocation for Annual 8.11. There is a need to reduce the time
Plan 2010-11 is Rs. 80 Crore. taken for construction of hostels from 5 years to
2 years. Hostel facilities need to be made
8.9. This Scheme of Pre Matric Scholarship available to the SC students in rural areas.
was independently evaluated in 2008 by the Efforts also need to be made towards proper
Himalayan Region Study and Research maintenance of the hostel buildings. Evaluation
Institute, Delhi and Noble Social and studies have pointed out that infrastructure
Educational Society, Tirupati in 2008. The facilities are quite poor in most of the hostels;
findings of these evaluation studies are given in maintenance of the buildings is not up to the
Box 8.2. mark; and construction of hostel buildings is
often hampered due to non-receipt of

Box 8.2
Pre Matric Scholarship for Children of those engaged in unclean occupations-Major findings of
Evaluation Studies
i) The Himalayan Region Study and Research Institute, Delhi (2008) – Bihar and Madhya Pradesh :
• Low rates of scholarships for the hostellers and day scholars.
• There is much positive impact on enrolment, retention and dropout rates of children in Madhya Pradesh
than in Bihar.
• There is improvement in attendance of children in both the States.
• Majority (86.1%) beneficiaries intended to join higher level of studies compared to 25% of the
beneficiaries in Bihar.
ii) Noble Social and Educational Society, Tirupati (2008) - Andhra Pradesh, Tamil Nadu, Karnataka and Kerala:
• Majority of students in four States informed that the scholarship amount is not sufficient to meet their
educational expenditure.
• The problems faced by institutions or excessive documentation, delay in sanction, lack of proper
communication from the concerned officials.
• Majority of students demanded payment of scholarship in cash.
• Scholarship amount is not sufficient to meet their educational expenditure.
• Need to create awareness in the families of unclean occupation.
• Sufficient number of educational institutions may be established for the benefit of students from unclean
occupations.
• Transfer of funds from Central Government to State Governments in time to release the scholarship
amount in time.

8.10. The scheme of Hostels for Scheduled proper/complete proposals from the States.
Caste Girls and Boys launched in 1961-62 and
revised during 1997-98, was re-named as 8.12. The Centrally Sponsored Scheme of
`Babu Jagjivan Ram Chhatrawas Yojana’ in Coaching and Allied Scheme for Weaker
2008-09. In order to promote education among Sections including SCs and OBCs are being
SC girls, 100 per cent Central assistance is implemented since 1961-62 and 1997-1998,
provided for construction of new hostel respectively, to provide quality coaching for
buildings and for expansion of existing girls Group A & B services under the Central and
hostels by the Central Government for State Governments. The Scheme is
Universities of States and UTs. Central implemented through Government and reputed
assistance is also extended to NGOs and private coaching institutions/ Universities.
Deemed Universities to the extent of 90 per Students belonging to SCs and OBCs having
174 Mid-Term Appraisal of the Eleventh Five Year Plan

family income of less than Rs.2 lakh per annum provide financial assistance to the SC students
are eligible to be the beneficiaries under the who are pursuing M.Phil and Ph.D. Under this
scheme. Expenditure under the scheme is low scheme, 1,333 fellowships are annually
since in the first three years of the Eleventh provided to SC beneficiaries. The scheme is
Plan only Rs.10.70 Crore (46.52 per cent) is implemented through University Grants
utilized against the allocation of Rs.23 Crore for Commission (UGC). The response of the target
the Plan as a whole. Poor utilization of funds group has been large and growing. Therefore,
under the scheme reflects the fact that there is a justified need to increase the number
agencies are not coming forward to take of fellowships made available under the
advantage of the scheme. This results in scheme. An expenditure of Rs. 271.29 Crore
deprivation of much needed coaching to eligible (111.64 per cent of outlay) have been incurred
candidates aspiring employment. In order to in the first three years of the Eleventh Five Year
help SC and OBC candidates to compete and Plan as against the total allocation of Rs.243.08
successfully avail employment, the scheme Crore. The allocation for the Annual Plan
needs to be implemented efficiently and 2010-11 is Rs. 160.00 Crore. The RGNF,
spatially focusing on rural areas. An outlay of except for a Budget provision under the nodal
Rs. 10 Crore has been made in 2010-11. Ministry, is implemented in its entirety by the
UGC.
8.13. A new Central Sector scheme of Top
Class education for SC students was 8.15. The National Overseas Scholarship
introduced in 2007-08. The objective of the (NOS) scheme for SC students for pursuing
scheme is to provide liberal financial support to higher studies abroad leading to Master-level
a maximum 700 SC Students per year admitted courses and Ph.D. programme in specific field
in premier professional educational institutes. of Engineering, Technology and Science, was
Under this scheme 183 institutes of excellence implemented as a non-Plan scheme in 1954-55.
spread all over the country have been In the year 2007, the scheme was converted to
identified. The total family income of the as Central Sector Plan scheme under the
students from all sources should not exceed Eleventh Plan with certain amendments raising
Rs.2 lakh per annum. The total estimated the number of scholarship awards to 30 and
expenditure in the first three years of the income ceiling of Rs.25,000/- per month. The
Eleventh Plan is Rs.27.12 Crore, which is only estimated expenditure during the first three
48 per cent of the Eleventh Plan allocation of years of the Eleventh Plan is Rs.11.30 Crore
Rs.56.50 Crore. The outlay for the Annual Plan which is 80.71 per cent of the Eleventh Plan
2010-11 is Rs. 25 Crore. The total number of allocation of Rs.14.00 Crore. During first three
beneficiaries anticipated to be covered in the years of the Eleventh Plan, only 84 students
first three years of the Eleventh Plan work out have benefited under the scheme. The Annual
to 2,093 as against the Eleventh Plan target to Plan allocation for 2010-11 is Rs. 6 Crore.
cover 3,500. There is a need to increase the
coverage under the scheme. Aspiring SC Economic Empowerment
candidates should be provided with much
8.16. Accomplishment of `Inclusive Growth’ is
needed special orientation and coaching for
also envisaged through economic
succeeding at the entrance examination, thus
empowerment of the SCs living in economic
facilitating their admissions into the institutions
backwardness. Available data suggest that 36.8
of excellence. Larger coverage of SC
per cent of rural SCs and 39.9 per cent of urban
candidates with special coaching would help
SCs lived below the poverty line (in 2004-05) in
enhance the effectiveness under the scheme as
contrast to 16.1 per cent rural non-SC/ST and
more candidates would be qualified to avail
16.0 per cent urban non-SC/ST population.
admission into the designated premier
Various employment-cum-income generating
institutions.
schemes are being implemented with a view to
improve their economic conditions and to make
8.14. Yet another scheme, i.e., Rajiv Gandhi
them economically self-reliant.
National Fellowship (RGNF) for SC students
was launched in 2006 with an objective to
 Social Justice 175

8.17. The National Scheduled Castes even when the market rate of interest is more
Finance and Development Corporation than the highest lending rate charged by the
(NSCFDC) was set up in 1989 to provide soft Corporations. In this regard, there is a need to
loans to Scheduled Castes living below the consider providing interest subsidy to enable
poverty line (per capita income below them to raise funds from the market.
Rs.44,500) for taking up income generating
self-employment ventures. A total of Rs.133 8.20. The National Safai Karamcharis
Crore has been released to NSFDC in the first Finance and Development Corporation
three years of the Eleventh Plan against the (NSKFDC) was established on 24th January
Eleventh Plan allocation of Rs.133 Crore 1997 for economic development of the
accounting for 100 per cent utilization. scavengers, aimed at providing alternative
Beneficiaries covered under the scheme since source of income and employment so as to
its inception till date number 6.44 lakh of which wean them away from the clutches of the
3.38 lakh (52.5 per cent) are women. An outlay obnoxious practices of manual scavenging. In
of Rs. 50 Crore has been made for 2010-11. this case no income limit is fixed for availing
financial assistance from the Corporation.
8.18. The NSCFDC vis-à-vis, other During the first three years of Eleventh Five
Corporations working for the STs, OBCs, Safai Year Plan, a sum of Rs. 80.65 crore has been
Karamcharis, Persons with Disabilities, etc., released to NSKFDC as against the allocation
continue to depend only upon governmental of Rs. 81 crore. Corporation provides priority for
funding, whereas they are expected to work as all round socio-economic development of
independent financial supporting mechanism scavengers and their dependents by extending
with a social mandate. Over the years, the loan loans on easy terms. An outlay of Rs.40 Crore
recovery rates have remained low, although has been made for Annual Plan 2010-11.
there has been some improvement of late. Poor
recovery rates further diminish the resources of 8.21. State Scheduled Castes Development
these Corporations to enable them to extend Corporations (SCDCs) are functioning since
loans to other needy target beneficiaries waiting 1978-79. So far, SCDCs have been set up in 27
for their turn. Low recovery of loans also implies States and UTs with equity participation of
that intended economic empowerment has not Central and State Government in the ratio of
been achieved by the beneficiaries enabling 49:51, for identifying the SC families and
them to pay back the loan as expected. This motivating them to undertake economic
also raises a question regards the viability of development activities. These Corporations
economic activities identified and supported by function as the apex level bodies working for
the Corporation. SCs, STs and OBCs. They also implement
State and Central Government schemes
8.19. The role of National Scheduled Castes including Special Central Assistance (SCA) to
Finance and Development Corporation Scheduled Caste Sub Plan (SCSP) and Self
(NSCFDC) as well as other Corporations Employment Scheme for Rehabilitation of
working for the weaker sections needs to be Manual Scavengers for providing alternative
redefined. They need to focus their activities means of livelihood to Safai Karamcharis
mainly towards financing Micro Finance engaged in manual scavenging. The
Institutions (MFIs), Self Help Groups (SHGs) performance of SCDCs/SCAs has direct
and Mahila Samridhi Yojana (MSY). The bearing on the functioning of the apex level
Corporations extend loans to SCs through the corporations. Therefore, SCDCs need to focus
State Channelizing Agencies (SCAs) against on capacity building, network linking with micro
guarantee. It is very difficult for the poor SCs to financing, risk sharing and risk mitigation and
manage the guarantee and, therefore, there is a selection of viable economic ventures. The rate
need to take a view on doing away with the of recovery of the SCDC loans is exceedingly
clause of guarantee. These Corporations low-around only 45 per cent during 2004-05 to
should not perpetually depend on Government 2007-08. Accordingly, there is a need to
funding alone for expansion of their activities; introduce a recovery improvement plan. Such a
rather they need to raise funds from the market plan may have provision of training the staff of
176 Mid-Term Appraisal of the Eleventh Five Year Plan

SCDCs and computerization of its activities etc. In this regard, the activities of the apex
On the whole, there is an urgent need to bring corporations as well as SCAs should be geared
in an element of professionalism in managing up for providing required support for skill up-
the SCDCs, especially by involving people with gradation, entrepreneurial development and
professional qualifications. Moreover, adequate provision of institutional finance for
training facilities in taking up alternative rehabilitation of Safai Karamcharis in alternate
economic activities are often not available in the occupations. Major impediments in
close vicinity and the women among the Safai implementation include difficulties in
Karmacharis find it difficult to access and avail identification of eligible beneficiaries and delays
the needed training. in providing loans to beneficiaries for alternative
occupations. The procedure adopted for
8.22. In January 2007, the ‘Self-Employment disbursement of financial assistance also needs
Scheme for Rehabilitation of Scavengers to be simplified.
(SRMS)’ was launched with the objective of
rehabilitating 3.42 lakh manual scavengers and Social Justice
their dependents by March, 2009. Scavengers
and their dependents, (irrespective of their 8.24. The Scheduled Castes are subjugated
income) who are yet to be provided assistance to various discriminations, social disabilities,
for rehabilitation under any scheme of exploitation and exclusion causing deprivation
Government of India or the State Government and denial of opportunities as equals.
are eligible to avail assistance. Main Accordingly, in upholding the Constitutional
components of the Scheme are skill training commitment to have all sections of the society
and financial assistance (loan and subsidy) for on par, specific legislations and programmes
self-employment, as per following norms : (i) are being implemented specifically for SCs and
Skill training for a period upto one year, with STs which are reviewed as under:
payment of stipend @ Rs.1,000 per month; (ii)
Loan at concessional rate of interest for self 8.25. Under the Centrally Sponsored
employment projects costing upto Rs.5 lakh; Scheme, viz., Implementation of Protection of
and (iii) Capital subsidy @ 50 per cent of the Civil Rights (PCR) Act 1955 and Scheduled
project cost, for projects upto Rs.25,000 and @ Caste and Scheduled Tribes (Prevention of
25 per cent for projects above Rs.25,000 with a Atrocities) Act, since 1989, financial assistance
minimum of Rs.12,500 and maximum of is provided for strengthening the administrative,
Rs.20,000. An outlay of Rs.350 Crore is enforcement and judicial machinery related to
provided for the Eleventh Five Year Plan for the these legislations, publicity and relief &
SRMS. A total of Rs. 175 Crore is the rehabilitation of the affected persons. In the first
anticipated expenditure during the first three three years of the Eleventh Plan, i.e. 2007-08 to
years of the Eleventh Plan, accounting for 50 2009-10, the expenditure incurred amounted to
per cent utilization of the Eleventh Plan Rs. 150.76 Crore against outlay of Rs. 123
allocation. The Allocation for the Annual Plan Crore which accounted to 122.57 per cent. The
2010-11 is Rs 5 Crore. allocation for Annual Plan 2010-11 is Rs. 59.00
Crore. The magnitude of the crimes and
8.23. The slow progress in the atrocities committed against SCs and STs is
implementation of the scheme is an indication evident from the sharp increase in expenditure -
of certain impediments which are to be 15 times the Plan Outlay of Rs.10 Crore in the
overcome to achieve the target by March 2010. first three years of the Eleventh Plan.
 Social Justice 177

8.26. In order to ensure early prosecution of Pradesh – 40. State Governments such as
cases under the SC/ST Prevention of Atrocity Bihar, Jharkhand, Madhya Pradesh and
(Act), 1989, 151 exclusive Special Courts have Chhattisgarh have also set up special police
been set up in the States : Andhra Pradesh – stations for Registration of Complaints of
12, Bihar – 11, Chhattisgarh – 7, Gujarat – 10, offences committed against SCs/STs. 77 such
Karnataka – 7, Madhya Pradesh – 43, Special Police Stations have been set up so far.
Rajasthan – 17, Tamil Nadu – 4 and Uttar According to latest figures available from

Box 8.3
Commitment under the Eleventh Plan
Social Empowerment
• Establishment of requisite number of primary schools with proper school buildings, hostels, water, toilet
facilities (particularly for the girls’ schools).
• To set up residential high schools for ST boys and girls at suitable places.
• Timely distribution of fellowships, scholarships, textbooks, uniforms and school bags to students.
• Evaluation of the ICDS/Anganwadi schemes for tribal areas and eliminating their shortcomings.
• Emphasis on Adult education to be paid adequate attention.
• Ensuring affordable and accountable primary health care facilities to STs and bridge the yawning gap in
rural health care services through a cadre of ASHA.
• Ensuring PESA Act to function as institutions of self-governance, preparing and implementing schemes in
Scheduled Areas.
• Efforts to conserve the eco-system along with stress on economic programme for the PTGs. Formulation
and execution of National Plan of Action for tribal. Provision of Drinking Water Supply to uncovered tribal
areas.
• Construction of rain water harvesting structure. Electrification and telecom coverage in the tribal villages.
Setting up of National Institute of Tribal Affairs (NITA).
• Effective operationalisation of the provisions of the Fifth Schedule needs to be urgently operationalized.
The Tribes Advisory Council (TAC) to be proactive while functioning as the advisory body to the State
Government in matters relating to STs.
Economic Empowerment
• Efforts to revitalize and expand the agriculture sector. To open training Centers to impart skill development
training to the tribal in diverse occupations.
• Ensuring better coordination at higher level and efficient delivery at field level, by lending agencies such
as NSTFDC and TRIFED.
• Scheme for quality improvement, higher productivity and regeneration of MFP Species. Recruitment of ST
women in the posts of Forest Guards, Foresters and Forest Rangers by lowering the educational
qualification.
• Infrastructure development in Fifth & Sixth Scheduled Area through utilization of Grants available under
Article 275 (1) of the Constitution.
Social Justice
• Steps to Prevent Exploitation through Effective Implementation of SC/ST (POA) Act, 1989.
• Amendment of Land Acquisition Act, 1894, Forest Act 1927, Forest Conservation Act, 1980, Coal Bearing
Areas (Acquisition and Development) Act, 1957 and National Mineral Policy, 1993. Displacement and
rehabilitation of Tribals is also emphasized.
• Plugging of loopholes in implementation of laws for preventing of alienation of tribal land. Effective follow up
actions of National Rehabilitation and Resettlement Policy 2007.
178 Mid-Term Appraisal of the Eleventh Five Year Plan

National Crime Record Bureau (NCRB), the crimes and atrocities committed against the
incidents of crimes against SCs increased by SCs and STs, there is every possibility of cases
10.9 per cent in 2007 when compared to 2006. not being registered owing to their vulnerability
However, incidents of crime against Scheduled and oppression. In fact, social and economic
Tribes registered a decline of 4.5 per cent abuse of this segment of the population also
during 2006-2007. The average conviction rate needs to be assessed. A quick evaluation study
for crime against Scheduled Castes and of Working of the Protection of Civil Rights Act,
Scheduled Tribes stood at 30.9 per cent and 29 1955 and its impact on the Abolition of
per cent, respectively, as compared to overall Untouchability was conducted by National
conviction rate of 42.3 per cent relating to IPC School of Law, Bangalore in 2006. The
cases. Notwithstanding the statistical account of recommendations of the study include creation
Table 8.2
Educational status of Scheduled Tribes- Gains and Gaps
(i) Literacy Rates of STs and Total Population (1961 – 2001)*
Year Total Girls ST ST Girls Gap Gap
between between
STs and STs and
general general
(Col.2-4) Female
(Col. 3-5)
1 2 3 4 5 6 7
1961 28.30 15.35 8.53 3.16 19.77 12.19
1971 29.45 18.69 11.30 4.85 18.15 13.84
1981 36.23 29.85 16.35 8.04 19.88 21.81
1991 52.21 39.29 29.60 18.19 22.61 21.10
2001 65.38 54.16 47.10 34.76 18.28 19.40

(ii) Gross Enrolment Ratios of STs and Total Population (1990-91 to 2007-08)**
Year Total Girls Total STs ST Girls
Gap between Gap between ST
STs & Total Girls and Total
Population Girls
Classes Classes Classes Classes Classes Classes Classes Classes Classes Classes Classes Classes
(I – V) (VI – (I – V) (VI – (I – V) (VI – (I – V) (VI – (I – V) (VI – (I – V) (VI –
VIII) VIII) VIII) VIII) VIII) VIII)
(Col.2- (Col.3- (Col.4- (Col.5-
6) 7) 8) 9)
1 2 3 4 5 6 7 8 9 10 11 12 13
1990- 83.80 66.70 71.90 51.90 104.00 40.70 81.40 26.70 -20.20 26.00 -9.50 25.20
91
2007- 114.60 77.50 113.20 74.10 129.30 74.40 124.00 68.20 -14.70 3.10 -10.80 5.90
08
Gains 30.80 10.80 41.30 22.20 25.30 33.70 42.60 41.50 5.50 -22.90 -1.30 -19.30

(iii) Dropout Rates of STs and Total Population (1990-91 to 2007-08)**

Year Total Girls Total STs ST Girls Gap between Gap between ST
STs & Total Girls and Total
Population Girls
Classes Classes Classes Classes Classes Classes Classes Classes Classes Classes Classes Classes
(I – V) (I – VIII) (I – V) (I – VIII) (I – V) (I – VIII) (I – V) (I – VIII) (I – V) (I – VIII) (I – V) (I – VIII)
(Col.3- (Col.5-
(Col.2- 7) (Col.4- 9)
6) 8)
1 2 3 4 5 6 7 8 9 10 11 12 13
1990-91 42.60 60.90 46.00 65.10 62.50 78.60 66.10 82.20 -19.90 -17.70 -20.10 -17.10
2007-08 25.55 43.03 24.82 41.43 32.23 63.36 32.45 63.13 -6.68 -20.33 -7.63 -21.70
Reduction(- -17.05 -17.87 -21.18 -23.67 -30.27 -15.24 -33.65 -19.07 13.22 -2.63 12.47 -4.60
)
Sources: * Census of India 2001 figures quoted in Selected Educational Statistics 2004-05 (as on 30.09.2004), Statement
11.6 page XLIII Government of India, Ministry of Human Resource Development, Deptt. of Higher Education, Statistics
Division, New Delhi (2007).
** Abstract, Selected Educational Statistics 2007-08 (Provisional) - (as on 30.09.2007), Government of India, Ministry of
Human Resource Development, Deptt. of Higher Education, Statistics Division, New Delhi ( March 2008).
 Social Justice 179

of a comprehensive legislation covering both synonymous to ‘Social Justice’ as it primarily

the PCR and POA Acts as well as laws such as addresses the issues of exclusion, exploitation,
the Employment of Manual Scavengers and marginalization, unrest and governance
Construction of Dry Latrines (Prohibition) Act, concerning tribals and tribal areas.
1993 and Bonded Labour (Abolition) Act, 1976;
setting up of a Cell to deal exclusively with 8.30. As per the 2001 Census, the
caste related crimes; and establishment of population of the Scheduled Tribes (STs) was
Special Courts under the Act to deal with caste 84.33 million, constituting 8.2 per cent of the
based offences to be set up in all States and total population of the country. Out of the total
UTs with appointments of Prosecutors, Police ST population, 2.59 million (3.07 per cent)
personnel and other officials. Moreover, since belong to Particularly Vulnerable Tribal Groups
the practice of untouchability still prevails, either (PVTGs) earlier referred to as Primitive Tribal
directly or indirectly, there is a need for Groups (PTGs).
stringent enforcement of the existing
legislations along with spreading awareness. 8.31. While the Eleventh Plan commitments
for STs cut across various developmental
8.27. On the basis of the recommendations sectors and are covered under the overall
made by the Committee of Ministers on Dalit purview of implementation of the Tribal Sub-
Affairs, a new Centrally Sponsored Scheme viz. Plan, the ST specific programmes are
‘Pradhan Mantri Adarsh Grameen Yojana implemented by the nodal Ministry of Tribal
(PMAGY)’ has been conceived and is in the Affairs. In the Eleventh Plan, the `inclusive
process of being launched. The objective of the growth’ process, in respect of STs is
scheme is to ensure integrated development of operationalized through adoption of a three
44,000 SC villages having more than 50 per pronged strategy : (1) `social-empowerment’
cent SC population by providing supplementary especially through educational development, (2)
support in filling the critical gaps arising in the ‘economic empowerment’ through employment
other relevant sectoral development schemes and income generating activities ensuring
and programmes. A budgetary provision of essential livelihood; and (3) ‘social justice’
Rs.100.00 Crore has been made in 2009-10 to through prevention of exploitation, land
launch the scheme on a pilot base initially with alienation, involuntary displacement and
the coverage of 1000 villages. As the scheme is survival protection and development of
directed to address the developmental deficits endangered ‘Particularly Vulnerable Tribal
in the identified villages across the country Groups’ etc. To this effect, the Eleventh Plan
benefitting the SCs, expeditious specifically spells out certain aspirational
operationalization of the scheme is imperative. provisions as highlighted in the Box 8.3.

8.28. There are several SC settlements that Social Empowerment

are located on the outskirts of the main
habitations and are segregated. Many of these 8.32. Recognizing that educational
SC settlements do not have access to basic development provides the essential basis for
services such as safe drinking water, approach social empowerment, various schemes
roads, health facilities, sanitation, etc. Efforts extending incentives, financial assistance,
are, therefore, needed to ensure that all the coaching and hostel facilities are being
marginalized and deprived settlements, implemented for the benefit of STs. Data
especially in the remote and inaccessible areas, regarding literacy, enrollment and dropout rates
are provided with the basic amenities. for STs in comparison with the general
population are summarized in Table 5.2. The
SCHEDULED TRIBES data clearly show that there has been
improvement over time but gaps remain.
8.29. The Scheduled Tribes (STs) are among
the most backward among the similarly
8.33. There are certain parallel educational
disadvantaged groups and live in relative
development schemes implemented for the
isolation with distinct culture and identity. The
Scheduled Castes and Scheduled Tribes with
Eleventh Plan’s, Inclusive Growth approach, is
180 Mid-Term Appraisal of the Eleventh Five Year Plan

the same objective and, by and large, with the coverage of beneficiaries against the
same modalities. These include Schemes of Eleventh Plan target also reflects the fact
Post-Matric Scholarships (PMS), Top Class that the target fixed did not adequately
Education, Rajiv Gandhi National Fellowships reflect social-demographic and spatial
(RGNF) for pursuing higher studies leading to aspects and the prevailing education
M.Phil and Ph.D Post-Matric Scholarships, backwardness and demand arising
National Overseas Scholarships; Hostels and therefrom.
Coaching and Allied Scheme. Details pertaining
to these schemes are given under the review of • The Eleventh Plan allocation for the
schemes meant for Scheduled Castes. Coaching and Allied Scheme is Rs.300.00
However, the financial and physical crore. The likely expenditure during first-
achievements of these schemes in respect of three years of the Eleventh Plan would be
Scheduled Tribes are given below: to the order of Rs.129.00 crore which is
43.22 per cent of the Eleventh Plan outlay.
• The likely expenditure during first three A total of 12.91 lakh beneficiaries are likely
years of the Eleventh Plan under the to be assisted through the scheme during
scheme of PMS for STs would be of the the first three years of the Eleventh Plan.
order of Rs.699.32 crore, i.e., 46.73 per An outlay of Rs. 55 Crore has been made
cent of the Eleventh Plan outlay of for Annual Plan 2010-11. As per the revised
Rs.1,496.29 crore for the scheme. For the scheme (w.e.f. January, 2008) Construction
Annual Plan 2010-11 an amount of Rs. of Girls Hostels and Boys Hostels in the
558.03 Crore has been provided for the extremism affected areas receive 100 per
Scheme of Post-Matric Scholarships for ST cent Central funding; in other places the
students. The Eleventh Plan Physical target construction cost for ST Boys’ Hostels is
of beneficiaries has been placed at 55.00 shared between Centre and States in ratio
lakh. The actual beneficiaries during the of 50:50. Due to non-identification of
first three years are estimated to be 31.86 suitable organizations/ institutions, the
lakhs indicating nearly 58 per cent coverage scheme is not being implemented in time
so far. The State Governments often do not with the desired coverage. Therefore, there
submit complete proposals for PMS funding is need to identify accredited institutions
in time to the Ministry of Tribal Affairs. This proactively and enable them to avail
causes delay in releasing funds to the support extended under the scheme in time
States, adversely affecting the prospects of so that no aspiring ST candidate is deprived
the ST students pursuing the Post-Matric of the entitled coaching.
studies.
• The physical coverage achieved under the
• Eleventh Five Year Plan allocation for the scheme of Top Class Education, is very
scheme of Hostels is Rs.272.96 crore. The poor as only 486 (4.5 per cent) ST students
scheme has been revised on April 1, 2005 could get benefit through the scheme during
to provide 100 per cent funding for the first three years of the Eleventh Plan
construction of Hostels for both boys and against the target of covering 10,105
girls in the extremism affected areas. The beneficiaries. The likely expenditure during
likely expenditure during the first three the first three years of the Eleventh Plan
years of the Eleventh Plan would be of the would be the order of Rs.4.02 Crore which
order of Rs.166.00 crore, i.e., 60.81 per is only 5.44 per cent of the Eleventh Plan
cent of the Eleventh Plan outlay. An outlay outlay of Rs.73.80 crore for the scheme. An
of Rs. 78.00 crore has been made for the outlay of Rs. 2.50 Crore has been allocated
Annual Plan 2010-11. A physical target of for the Annual Plan 2010-11.The poor
covering 20,000 beneficiaries had been progress made both in terms of financial
envisaged during the Eleventh Plan; as and physical terms warrants a re-look into
against that, an impressive coverage of the modalities involved in implementation of
more than twice the Eleventh Plan target the scheme. The procedural delay needs to
has been achieved in the first three years. be eliminated and a congenial
Disproportionate increase in the actual
 Social Justice 181

administrative process needs to be already begun. This defeats the very purpose
developed facilitating larger coverage of for which the text books are supplied free of
beneficiaries under the scheme. cost to all these students.

• The expenditure likely to be incurred under 8.35. The Centrally Sponsored Scheme of
the Rajiv Gandhi National Fellowship ‘Educational Complexes in the Low Literacy
(RGNF) Scheme during first-three years of Pockets’ was revised in 2008-09 and renamed
the Eleventh Plan would be the order of as “Strengthening Education among ST Girls in
Rs.87.03 crore which is 58.02 per cent of Low Literacy district”. The revised scheme is
the Eleventh Plan outlay of Rs.150.00 crore being implemented in 54 identified low literacy
for the scheme. An outlay of Rs. 75.00 districts where the ST population is 25 per cent
Crore has been allocated for the Annual or more and ST female literacy rate is below 35
Plan 2010-11. As against the Eleventh Plan per cent. The revised scheme envisages the
physical target of 13,870 beneficiaries, a convergence with the schemes of Sarva
total of 4,979 ST candidates are expected Shiksha Abhiyan (SSA) and Kasturba Gandhi
to be benefited during the first three years Balika Vidyalaya (KGBV) of the Ministry of
of the Eleventh Plan. Human Resource Development (MHRD). It
meets the requirement of primary level students
• The scheme of Ashram Schools in the as well as middle/secondary level students and
Tribal Sub Plan (TSP) area is operational provides residential facility to ST girl students
since 1990-91 to promote educational facilitating their retention in schools. Besides
development in accordance with the social formal education, scheme also takes care of
and cultural milieu of the Tribals especially skill up-gradation of ST girls in various
focusing on ST girls and children of vocations. Establishment of District Education
Particularly Vulnerable Tribal Groups Support Agency (DESA) is also taken up in
(PVTGs). The likely expenditure during first each low literacy district which is required to
three years of the Eleventh Plan would be make efforts to ensure 100 per cent enrolment
of the order of Rs.91 crore, i.e., 61.65 per and also play the role of monitor, facilitator and
cent of the Eleventh Plan outlay of support linkages with various institutions. The
Rs.147.60 Crore for the scheme. An outlay Eleventh Five Year Plan allocation for the
of Rs. 75.00 Crore has been allocated for scheme is Rs.298.79 crore. The likely
the Annual Plan 2010-11. A total of 37,139 expenditure during the first three years of
beneficiaries are envisaged to be benefited Eleventh Plan would be of the order of Rs.
under the scheme during the three year 93.25 crore, i.e., 31.20 per cent of the Eleventh
period, 2007-08 to 2009-10. Plan outlay. An outlay of Rs. 40.00 Crore has
been provided for the Annual Plan 2010-11. A
8.34. A review of implementation of the target of covering 1.25 lakh beneficiaries during
scheme reveals that the delay in construction of the Eleventh Plan has been set. The actual
school buildings affect the programme and number of beneficiaries covered in the first
prospects of aspiring ST students adversely. three years of the Eleventh Plan (2007-08 to
Several schools are reported to be poorly 2009-10) is anticipated to be around 63,955
maintained with little or no infrastructural indicating physical achievements of 51 per cent.
facilities. Unless, basic facilities in the Non-receipt of expected number of proposals
residential schools with minimum standard are from the State Governments, NGOs and other
provided in the Ashram Schools, it will not only eligible agencies was the main reason behind
discourage inmates to continue in these the shortfall in achieving the targets. Concerted
schools but their focus on education and efforts need to be made in motivating the States
training could also be diverted. Upto primary and other implementing agencies to take
level, the books and teaching medium should maximum advantage of the scheme. To this
be in Tribal dialect to the extent possible and effect, procedures involved under the scheme
the teachers should also be preferably drawn need to be simplified.
from the local Tribal communities. In these
Schools, text books are either not provided or 8.36. There are 17 Tribal Research Institutes
are provided quite late when the session has (TRIs) located in various States and UTs
182 Mid-Term Appraisal of the Eleventh Five Year Plan

providing necessary inputs for formulation of of tendu leaves forms their mainstay during the
suitable policies and programmes besides lean summer period. Management, harvest and
conducting relevant research, student surveys conservation of these two most important
and training. Potentialities of these institutions livelihood sources needs to be handed over to
are not being harnessed fully. The TRIs with the elected Panchayats in conformity with
their technical and professional manpower can Panchayats (Extension to Scheduled Areas)
be directed to take up action research Act, 1996. Alternative and supplementary
participatory approach especially in respect of resources for subsistence and survival have
PVTG development, livelihood programmes, assumed priority in the context of fast depleting
etc. In order to ensure coordinated efforts of forest resources and agricultural productivity
these TRIs, it is necessary to designate a TRI and the growing population.
as a nodal agency representing the respective
region - East, West, South, North-East and 8.39. The National Scheduled Tribes Finance
Central. There are eight sub schemes under the and Development Corporation (NSTFDC) was
umbrella scheme of Tribal Research Institute set up in 2001 to provide exclusive boost to the
(TRIs). The likely expenditure during the first- economic development of STs. The Eleventh
three years of the Eleventh Plan under the TRIs Plan outlay under the scheme is Rs.260 crore
Scheme would be of the order of Rs. 28.75 but no expenditure was made during Annual
crore which is 36.80 per cent of the Plans of 2007-08 and 2009-10. An outlay of Rs.
EleventhPlan outlay of Rs.78.12 crore for the 70 crore has been allocated for the Annual Plan
scheme. An outlay of Rs. 47.00 Crore has been 2010-11. As against the physical target to cover
allocated for the Annual Plan 2010-11. 7.56 lakh beneficiaries during the Eleventh Plan
period, the number of beneficiaries during the
8.37. Under the National Overseas first three years of the Eleventh Plan are
Scholarship scheme, financial assistance is estimated to be around 4.57 lakh.
provided to selected ST students to pursue
higher studies abroad, (similar to that of 8.40. A quick evaluation study was carried
Overseas Scholarship Scheme for SCs). The out by the National Institute of Rural
likely expenditure during the first-three years of Development (NIRD) on functioning of State
the Eleventh Plan would be of the order of Tribal Development Finance Corporations
Rs.0.46 crore which is only 6.20 per cent of the (STFDCs) in the States of Karnataka and
Eleventh Plan outlay of Rs.7.41 crore for the Maharashtra. While confirming positive impact
scheme. An outlay of Rs. one crore has been of the STFDC, the study recommended that
allocated for the Annual Plan 2010-11. STFDCs need to articulate and strengthen the
‘Equity Plus’ concept in the organization,
Economic Empowerment visualizing intervention not merely in respect of
the release and repayment of loans, but as
8.38. Economic development among the investment that meets economic as well as
tribals largely depends upon the agriculture and social and wellbeing goals. The ‘Equity Plus’
its allied activities. Since more than one fifth of calls for a greater focus on the social gains and
the population intensively depends upon the opportunity cost of lending in terms of greater
agriculture and forest, their ability to cope with professionalism of the agency, a more focused
the changing economic scenario especially in approach in lending, better selection of
taking advantage of the new economic avenues beneficiaries and increased focus on
is minimal, which calls for capacity building in strengthening of the State Channelizing
diversifying their livelihood sources. Bamboo Agencies (SCAs). A necessary reform both in
and tendu leaves constitue two most important business and managerial level need to be taken
livelihood sources in majority of the tribal areas up so as to make the SCAs as an effective self-
of PESA states viz. Andhra Pradesh, reliant financial instrument to empower the
Chhatisgarh, Jharkhand, Madhya Pradesh, Tribals. In this context, there is need for a re-
Maharashtra and Orissa. Bamboo popularly engineering exercise to assess whether the
known as poor man’s timber finds its use by mandate of the Corporation could be redrawn
tribal population from cradle to grave. Collection so as to bring about structural change which will
ensure that the requirements of the STs are
 Social Justice 183

met more effectively. Unless such an action is Scheduled Tribe Finance Development
taken, there is every chance that these Corporation (NSTFDC), banks, etc. This
corporations would become a permanent scheme assumes significance, as it enables the
burden on the Government. Tribal youth to improve their skills and abilities
to take up income generating activities and also
8.41. Tribal Co-operative Marketing final placement in the open market, which
Development Federation of India Ltd., would wean them away from the influence of
(TRIFED), a Multi-State Cooperative Society, extremists. To this effect the newly initiated
was set up in 1987 with a mandate of marketing programme of `National Skill Development
tribal products as a service provider and market Mission’ provides opportunity for the Tribal
developer. A revised form of the TRIFED was youth to take advantage of the same. The likely
introduced during the year 2007-08 replacing expenditure during first-three years of the
the then existing scheme ‘Price Support to Eleventh Plan would be of the order of Rs.19.44
TRIFED’ focused on development of market for Crore which is 19.52 per cent of the Eleventh
Tribal products/produce. Under the new Plan outlay of Rs.99.56 Crore for the scheme.
scheme a comprehensive Road Map has been An outlay of Rs. 9.00 Crore has been allocated
chalked out for the Eleventh Plan period (2007- for the Annual Plan 2010-11.
12) focusing the following four activities i.e., i)
Retail Marketing Development Activity, ii) MFP Social Justice
Marketing Development Activity, iii) Vocational
Training, Skill Up-gradation and Capacity 8.44. Owing to their isolated existence, the
Building of ST Artisans and Minor Forest Tribals are not equipped to deal with the ever
Produce (MFP) Gatherers and iv) Research changing and complex socio-economic
Development,/Intellectual Property Rights (IPR) developments engulfing them. On the other
Activity. hand, adversities have made the Tribals
susceptible to exploitation, atrocities and
8.42. The likely expenditure during first-three crimes, alienation from their land, denial of their
years of the Eleventh Plan would be of the forest rights and overall exclusion either directly
order of Rs.61.08 Crore which is 87.77 per cent or indirectly from their rightful entitlements.
of the Eleventh Plan outlay of Rs.69.59 Crore
for the scheme. An outlay of Rs. 12.00 Crore 8.45. Protection of Civil Rights Act, 1955
has been allocated for the Annual Plan 2010- (PCR Act) and the Scheduled Castes and
11. TRIFED is marketing its products through Scheduled Tribes (Prevention of Atrocities) Act,
39 outlets (26 outlets are its own and 13 outlets 1989 (POA Act) are two important legal
on consignment basis in association with State instruments to prevent all types of social
level organizations). TRIFED would need to discrimination i.e., untouchability, exploitation
clearly and evidently establish as to where and and atrocities. The National Crime Bureau
how they can trigger socio-economic changes Report – 2007, states that highly endemic
among the Tribals, through its activities, thus crime/atrocities are being reported in the States
rationalizing its relevance. like, Madhya Pradesh (27.01 per cent),
Rajasthan (20.01 per cent), Andhra Pradesh
8.43. The scheme Vocational Training Centre (13.06 per cent), Chhattisgarh (11.01 per cent),
in Tribal Areas was launched in 1992-93, to Orissa (7.01 per cent) and Jharkhand (4.08 per
develop the skills of the ST youth for a variety cent). Therefore, there is an urgent need for
of jobs as well as self-employment and to effective enforcement of special legislations of
improve their socio-economic condition by PCR Act and POA Act and provisions of the
enhancing their income. The scheme was Indian Penal Code (IPC) with more stringent
revised in April, 2009. The revised scheme measures towards protection of Tribals.
provides enhanced financial norms and a time
schedule for submission of proposals. The 8.46. The provision made in the Fifth
scheme makes organization responsible to Schedule has enough strength to exercise all
establish linkages with placement services and actions that ensure survival, protection and
to arrange easy micro finance/loans for trained development of the Tribals living in the Tribal
youths through financial institutions, National Areas. Regular monitoring and surveillance of
184 Mid-Term Appraisal of the Eleventh Five Year Plan

the situation prevailing in the Fifth Scheduled Particularly Vulnerable Tribal Groups
Areas needs to be taken up followed by an (PVTGS)
action plan for effective delivery system through
the powers bestowed upon. Among others, 8.50. There are 75 Particularly Vulnerable
steps that need to be taken include – protection Tribal Groups (PVTGs) earlier known as
of forest and land rights with a road map for Primitive Tribal Groups (PTGs), in need of
restoration of lost claims; building teams of categorical attention in view of their fragile living
Tribals to do the work of administration and conditions emerging out of their prevailing
development and development of an socio-economic backwardness, vulnerability
administration without encroaching their social and diminishing numbers. In order to address to
and cultural institutions. their specific needs and problems, the `Scheme
of Development for PVTGs’ is being
Grant-In-Aid Under Article 275 (1) implemented with flexible terms. Funds under
this scheme are made available for those
8.47. Grants in Aid under Article 275(1) is a items/activities which are critical for the survival,
Central Sector Scheme under which 100 per protection and development of the PVTGs
cent financial assistance is being provided to individually. As required, long term
the States through the nodal Ministry of Tribal “Conservation cum Development (CCD) Plan”
Affairs. The funds are released based on for PVTGs under the Eleventh Plan prepared by
specific projects, such as raising the critical the States and the Union Territories is on the
infrastructure and enhancement of Human basis of requirement assessed through baseline
Development Indices of STs to bridging the surveys conducted and by adopting
gaps between STs and general population. The hamlet/habitat development approach. The
likely expenditure during first-three years of the likely expenditure during the first-three years of
Eleventh Plan would be of the order of the Eleventh Plan would be of the order of
Rs.1128.16 Crore. An outlay of Rs. 1046.00 Rs.333.55 Crore which is 49.78 per cent of the
Crore has been allocated for the Annual Plan Eleventh Plan outlay of Rs.670.00 Crore for the
2010-11. scheme. An outlay of Rs. 85.00 Crore has been
allocated for the Annual Plan 2010-11. As
8.48. The first provision of the Article 275(1) against the Eleventh Plan target of covering
of the Constitution mandates funding for raising 110 lakh beneficiaries, so far, 22.22 lakh
the level of administration in the Tribal area. beneficiaries are reported under the scheme.
Although the Seventh and the Eighth Finance
Commissions recommended assistance for this 8.51. Monitoring of the implementing
purpose, the practice has been discontinued agencies at the grassroots level is vital to
thereafter. The word ‘administration’ is referred ensure that benefits actually reach the needy
to in the Fifth Schedule of the Constitution in a PVTGs. Convergence of schemes needs to be
comprehensive sense. There is a need to made from different Ministries of Government of
initiate annual exercise to assess the financial India for the welfare of PVTGs. The knowledge
needs of States for improving the level of about the schemes needs to be disseminated
administration in the Tribal areas and the widely amongst the Tribals, NGOs, Government
agreed requirements may be treated as charge and Local Bodies. Supplementing the
on the Consolidated Fund of India. government’s efforts, the Corporate Social
Responsibility (CSR) needs be associated in
8.49. The scheme of Eklavya Model monitoring the implementation agencies
Residential School is in operation since 1997- especially at Block and Panchayat levels. In
98, out of the funds under Article 275(1) for view of prevailing nutritional deficiency, special
providing quality education to Scheduled Tribe care towards provision of required nutrition
Students in Tribal areas. To improve the should be ensured on sustainable basis.
educational infrastructure and standard of Simultaneously, food security round the year
education in Tribal areas, these schools are also needs to be ensured among the PVTGs by
modeled on the lines of Navodaya Vidyalaya. promoting farming and clearly marked reserved
areas in forests to which they can have free
access for collection of MFP and shifting
 Social Justice 185

cultivation. There is felt need for a sensitization economic development among the Tribals and
and training drive especially for forest officials, the Tribal areas, but also for proactive action
conservation and other agencies concerned plan in preventing emerging/burgeoning
with the entitlements and rights of the PVTGs adversities.
especially in collecting forest produce and
grazing. Panchayat (Extension to The Scheduled
Areas) Act, 1996
8.52. Sustainable economic rehabilitation of
PVTGs for their permanent settlement is a 8.55. The Panchayats (Extension to the
recognized need. Health care in all PVTG Scheduled Areas) Act, 1996 (PESA, 1996) was
hamlets, infrastructure development like road, enacted and came into operation on 24
drinking water and electricity, are imperatively December, 1996 with an objective to endowing
needed. EMRs in the PVTG areas need to be Panchayats in Scheduled Areas with such
set up ensuring quality education among powers and authority so as to enable them to
PVTGs. The PVTGs need to be made aware of function as institutions of self-government. The
their rights and entitlements as provided in the Act, which extends to the Tribal areas of nine
Forest Rights Act with special drive on States, viz., Andhra Pradesh, Chhattisgarh,
awareness generation for marketing of minor Gujarat, Himachal Pradesh, Jharkhand,
forest products, agriculture and other product Maharashtra, Madhya Pradesh, Orissa and
collected and produced by the Tribals. TRIFED Rajasthan, aims at bringing community at the
needs to give special attention to the PVTGs. In village level in the form of Gram Sabha to the
the interior areas, communication needs to be centre of governance in the Tribal areas.
improved so as to facilitate food, medicines and However, not a single State has notified rules
other medical services reaching the PVTGs in so far; Rajasthan, Andhra Pradesh have framed
time. Strict surveillance and monitoring of the rules but have not notified them. There are
utilization of funds and proper implementation several critical issues/areas wherein the
delivering desired results in PVTG areas need objectives of the Act could not be achieved
to be carried out on regular basis. even after more than one decade of its
enactment. Prominent among them are as
8.53. Extension of funds and benefits are given below:
envisaged under various other schemes.
Convergence of the efforts made through these • Irregularity of Election at three tier
schemes needs to be ensured to have greater Panchayati Raj Institutions affecting the
effectiveness. functioning of the institutions as per the
provision of the PESA Act.
Fifth And Sixth Scheduled Areas
• The PESA Act has been enforced in nine
8.54. Fifth Schedule of the Constitution deals States, however not all States are following
with the areas where the percentage of the the provisions of the Central Act uniformly.
Tribal population is 50 per cent or more. The
Fifth Schedule covers Tribal areas in nine • The prevailing violence and unrest in Tribal
States of India viz., Andhra Pradesh, areas has adversely affected various
Jharkhand, Gujarat, Himachal Pradesh, aspects of Tribal life and the functioning of
Maharashtra, Madhya Pradesh, Chhattisgarh, the Gram Sabhas/Panchayats.
Orissa and Rajasthan. The Fifth Schedule
Areas have a special position as derived from • There are some practical issues with the
the powers to the Governor especially in implementation of PESA Act, particularly
respect of preventing transfer of land from with respect to land acquisition and mining,
Tribals and private money lending. To this which need to be discussed thread bare
effect, periodic reports on the Tribal situation with the State Governments and sorted out.
and governance from the Governors of the
States are to be submitted to the President of
India. Assured submission of the Reports, not
only provides the basis for speedy socio-
186 Mid-Term Appraisal of the Eleventh Five Year Plan

Tribal Forest Rights Forests and Minor Forest Produce

8.56. The Scheduled Tribes and Other Forest 8.58. Forests are the very life support system
Dwellers (Recognition of Forest Rights) Act, of the Tribals. All aspects of their economic,
2006 and its Rules have been notified in 2007 social, religious and cultural life are closely
but its implementation was made affective from linked to the forest they inhabit. The Tribal
January, 2008. As on November 30, 2009, out people are facing serious problems with regard
of the 27 States, only 16 States had filed claims to utilization and rights over forest and land.
for the title deed under the Act, whereas the They face constant harassment from local
titles have been distributed in 11 States. The forest officials due to their inability to voice their
total number of claims received were 25,05,120 entitlements and also not possessing land
against which, 5,73,227 titles have been records. The E-Governance system needs to
distributed. The highest and lowest number of be streamlined in the Tribal Sub Plan areas, so
claims received are from the States of as to make legal record accessible online to the
Chhattisgarh i.e. 4,57,857 and Jharkhand i.e. beneficiaries at the Panchayat level.
4,539 respectively. 8.59. Another vital issue is that of Tribals
utilizing forest resources, i.e., Non-Timber
Displacement Forest Produce (NTFP). It is estimated that 70
per cent of NTFP is collected in five states i.e.,
8.57. Acquisition of land and displacement of
Maharashtra, Madhya Pradesh, Bihar, Orissa
the Tribal people by various development
and Andhra Pradesh, where 65 per cent of
projects is a persisting phenomenon in the
Tribal population lives (Repot of the Expert
Tribal areas. Several policies have been
Group on Prevention of Alienation of Land and
implemented for rehabilitation and resettlement
its Restoration, M/RD, GoI, 2004, p. 114).

Box 8.4
Objectives of Scheduled Caste Sub-Plan (SCSP) and Tribal Sub-Plan (TSP)
(i) Substantial reduction in poverty and un-employment of the SCs and STs;
(ii) Creation of productive assets in their favour and provide them with livelihood opportunities on a
sustainable basis;
(iii) Human resource development of the SCs and the STs by providing adequate educational and
health services; and
(iv) Provision of social, physical and financial security to them against all types of exploitation and
oppression.

of the affected people. In most cases, Tribals However, over the years it has been found that
have been found vulnerable in the post- the forests have suffered tremendous loss and
displacement period. The National depletion, adversely affecting the dependent
Rehabilitation and Resettlement Act, 2007 Tribals, with serious implications for their
specifically stated that compensation benefit survival and sustenance.
shall be extended to all affected families with
Shifting Cultivation
basic infrastructure facilities and amenities at
the resettlement areas in the Fifth and Sixth 8.60. The report of the Ministry of Rural
Schedule areas. It is imperative that the Act, Development indicates that only 6.5 per cent of
2007 is implemented in letter and spirit, so as to the households have been reportedly engaged
enable the displaced Tribal families resettle with in shifting cultivation in the country. The
basic facilities and other conditions that percentage of area under Jhum cultivation is
provides conducive environment for their 9.5 percent in North Eastern Region, while it is
survival, protection and development. Periodic 0.5 per cent for Central Tribal Belt. The practice
status report on the rehabilitation of the of shifting cultivation poses a threat to the
displaced Tribals needs to be prepared on ecology of the region at large. Depleting
regular basis with effective monitoring. productivity against the growing Tribal
population has also emerged as a serious
 Social Justice 187

concern. It is therefore necessary that Tribals, but can also act as an effective
alternative source of income and employment instrument in facilitating the Tribal access to the
are generated with the support of NSTFDC, facilities and services. There is also a need to
STFDCs, and other agencies. involve NGOs working in the Tribal areas in
promoting effective implementation of the
Tribal Unrest
provision of the PESA Act, 1996.
8.61. By and large, the Central Tribal belt is
Resource Position
engulfed and affected by extremism and unrest.
Effective implementation of development
8.63. The pace of progress in terms of
programmes especially in the absence of
financial achievements during first three years
agencies/personnel, requires special strategies,
of the Eleventh Plan reflect that an expenditure
otherwise the isolation and exclusion of the
of Rs.950 Crore (45.17 per cent) has been
Tribals will increase further.
incurred against a total Central Sector outlay of
Voluntary Action Rs.2,103.15 Crore; that leaves a balance of
Rs.1,153.15 Crore (54.82 per cent) for the
8.62. Voluntary Action and Non-Government
remaining for two years of the Plan. The details
Organisations (NGOs) play a role in the
of allocations made and expenditure incurred
development of Tribal areas supplementing in
are given in Table 8.3.
Governmental efforts especially in generating
awareness and capacity building among the
Tribals so as to improve their economic status SCHEDULED CASTE SUB PLAN (SCSP) &
and lead a dignified life. NGOs and voluntary TRIBAL SUB PLAN (TSP)
agencies not only can hold the institutions
accountable to people to bridge the gap 8.64. The Scheduled Caste Sub-Plan (SCSP)
between the development programmes and the was originally introduced in 1979 under the

TABLE 8.3
Outlay and Expenditure of Scheduled Tribe, Ministry of Tribal Affairs in the XIth Plan
(Rs. in Crore)
% to Annual Plan
Category Eleventh Annual Plan Annual Plan Annual Plan Total XIth (2010-11)
Plan (2007-08) (2008-09) (2009-10) Plan
Provisio Outlay
Outlay BE Expd. BE Expd. BE nal BE Expd. with 3 BE
Expd. years
Expd.
1 2 3 4 5 6 7 8 9 10 11 12
I (i) Central
Sector
464.50
Schemes 2103.15 231.01 189.59 441.00 353.08 407.33 230.28 1079.34 772.95 71.61
(CS)
(ii)
Centrally
Sponsored 95.40 735.50
2005.47 271.99 266.73 364.00 332.77 397.67 386.69 1033.66 986.19
Scheme
(CSS)
Total I
4100.62 503.00 456.32 805.00 685.85 805.00 616.97 2113.00 1759.14 83.25 1200.00
(I & ii)
II. Special Central Assistance
(i) SCA to
0 816.71 678.26 900.00 780.86 1400.50 981.24 3933.92 2440.36 62.03 960.50
TSP*
(ii) Article
0 400.00 390.28 416.00 339.79 1000.00 399.10 1816.00 1229.17 67.68 1046.00
275(1)*
Total –II (i&
0 1216.71 1068.54 1316.00 1120.65 2400.50 1380.34 5749.92 3569.53 62.08 2006.50
ii)
Total- (I &
4108.62 1719.71 1524.86 2121.00 1806.50 3205.50 1997.31 7862.92 5328.67 67.77 3206.50
II)
Note: Allocation for 2008-09 has been reduced by Rs. 150.00 Crore.
* Allocation is made on year to year basis
 188 Mid-Term Appraisal of the Eleventh Five Year Plan

name Special Component Plan which has been somewhat better under TSP wherein most
renamed as Scheduled Caste Sub Plan to bring States except Gujarat, Himachal Pradesh,
the nomenclature in line with the Tribal Sub Karnataka and Sikkim have earmarked funds
Plan (TSP) introduced in 1975. The objective is under TSP as per the percentage of ST
to build on potential strengths of the SCs & STs population.
through their overall socio-economic
• All the States/UTs except Jammu & Kashmir
development.
and Chandigarh have created separate
budget head/sub head to prevent diversion of
8.65. The strategy of SCSP and TSP
funds. Most of the State Governments / UT
envisages channelizing adequate flow of funds
Admn. have followed a sectoral approach in
and benefits to SCs/STs from all sectors of
earmarking of funds under SCSP and TSP.
development through the Annual Plans of
States/UTs and the Central Ministries at least in • Following the Planning Commission’s
proportion to their population - both in financial guidelines States of Chhattisgarh, Himachal
and physical terms. Pradesh, Madhya Pradesh, Maharashtra,
and Uttarakhand have empowered Pr.
8.66. At present 27 States/UTs are Secretary/Secretary, Department of SC/ST
implementing SCSP, while 24 States/UTs with financial powers for SCSP and TSP
implement TSP. During Annual Plan 2007-08, funds.
an amount of Rs.37,296.11 Crore was
earmarked under SCSP which accounted for • Except a few States such as Tamil Nadu and
15.92 per cent of total plan allocation. The Gujarat, other States do not seem to be fixing
earmarked allocation under SCSP was slightly realistic physical targets for the SCSP and
lower than the SC population i.e. 16.20 per TSP schemes/ programmes. Several States
cent. The earmarked allocation under SCSP in are not conducting bench mark surveys and
Annual Plan 2008-09 was Rs.42,746.94 Crore also not preparing perspective plans, vision
constituting 14.18 per cent of total plan document for long term goals and outcomes
allocation. This has also shown downward trend of the schemes/ programmes. States such as
since some of the States like Chattisgarh and Andhra Pradesh, Maharashtra, Gujarat,
Jammu & Kashmir have not indicated any Rajasthan, Orissa, Chhattisgarh, Madhya
outlay under SCSP. Under TSP, outlays of Pradesh have adopted the practice of pooling
Rs.18,478.07 Crore and Rs.23,484.27 Crore of funds from all the sectoral/line
have been earmarked for Annual Plan 2007-08 departments and placing the same under the
and Annual Plan 2008-09 respectively, nodal Department of SC and ST Welfare.
amounting to 8.65 per cent and 8.61 per cent of • Preparation of SCSP and TSP documents
the total Plan allocation, which was in earmarking funds in each Annual Plan as per
consonance with the share of ST population i.e. the guidelines with prioritized schemes that
8.2 per cent in the national total. benefit the SCs and STs is a prerequisite.
Nevertheless, States of Andhra Pradesh,
Issues with Implementation of SCSP/ TSP Assam, Bihar, Goa, Himachal Pradesh, J&K,
8.67. A review of implementation of SCSP Jharkhand, Kerala, Punjab, Tripura and West
and TSP for Annual Plan 2008-09 reveal the Bengal did not submit the SCSP and TSP
following weaknesses: documents along with their Annual Plans
2008-09.
• While most States are earmarking funds as • Though the State Governments are
per the percentage of SC population in the earmarking funds under SCSP and TSP as
State under SCSP, some States such as per the guidelines, the actual expenditure
Assam (2.01 per cent) Goa (0.78 per cent), met under SCSP and TSP is typically way
Gujarat (0.89 per cent), Karnataka (12.34 per below the desired level of expenditure. State
cent), Rajasthan (14.87 per cent), Tamil Governments need to ensure full utilization of
Nadu (14.87 per cent) have earmarked funds funds and also the intended benefits reaching
less that the corresponding share in the target groups in terms of measurable
population of the State. The situation is outcomes.
 Social Justice 189

8.68. Expenditure incurred during the first two the nodal Officer, there is no controlling and
years of the Eleventh Five Year Plan i.e., 2007- monitoring mechanism for planning,
08 and 2008-09 under SCA to SCSP was Rs. supervision and allocation of funds to these
501.15 crore & Rs.601.59 crore and that to disadvantaged sectors.
TSP was Rs.678.26 crore & Rs.780.87 crore
8.71. Even after three decades of
respectively. Grants under Article 275(1) of the
operationalization, the impression persist that
Constitution is 100 per cent Central Assistance
SCSP and TSP are still not being implemented
provided to the States to supplement the efforts
satisfactorily. There are some genuine
of the State Governments. During Annual Plans
problems regarding assignment or identification
2007-08 and 2008-09, Rs.400 Crore and
of benefit for infrastructure schemes, but even if
Rs.416 Crore respectively were made available
these are treated differently, it is not clear that
to the States for Scheduled Area Administration
the SCSP or TSP are working as well as they
and to raise their level of administration at par
should. The Planning Commission is reviewing
with other regions.
experience in this area to see how SC/ST Sub
Plan implementation can be improved. New
8.69. The Planning Commission guidelines
guidelines will be developed taking account of
clearly emphasize the need to set up SCSP
the experience thus far to guide formation of the
Cell in the Central Ministries/Departments. Yet,
Sub Plan in the Twelfth Plan.
the Ministries/ Departments have not set up the
Cells to look after the implementation of SCSP
OTHER BACKWARD CLASSES (OBCS)
and TSP. Recently, some of the Ministries/
Departments have expressed willingness to
8.72. The Centrally Sponsored scheme of
formulate schemes and earmark funds under
`Pre-Matric Scholarship for Other Backward
SCSP and TSP. The Central
Classes’ is being implemented since 1998-99
Ministries/Departments need to prepare SCSP
with an objective to enable the children of
and TSP Documents which will provide a
OBCs to pursue Pre-Matric education. The
definite plan of action and road map for sectoral
expenditure during the first three years of the
role and contributions towards socio-economic
Eleventh Plan was of the order of Rs. 89.10
development of SCs and STs.
Crore which is 104.82 per cent of the Eleventh
Plan allocation of Rs.85.00 Crore for the
8.70. The major issues relating to
scheme. Under the scheme, during the first
implementation of SCSP and TSP strategies
three years of the Eleventh Plan, as many as
are:
44.60 lakh OBC students are expected to be
benefited against the Eleventh Plan target of
• Priority sectors and need based
74.30 lakh students. An allocation for the
schemes/programmes for the benefit of the
Annual Plan 2010-11 is Rs. 50 crore.
SCs/STs such as education, health,
technical/vocational training have not been
8.73. Notwithstanding the fact that some
devised as per the needs based on equity
States have not been availing funds for the
considerations;
scheme of Pre-matric Scholarship, there is
• Schemes related to minor irrigation, asset considerable demand from the rest of the
creation, housing and land distribution have States aggregating to as much as Rs.759.00
not been given adequate importance under Crore in the year 2008-09 itself. The
SCSP and TSP. The allocations made scholarship amount provided under the scheme
typically are only notional in nature showing has remained unchanged since the introduction
supposed benefits accruing to the SCs/STs of the scheme in 1998-99. There is an urgent
welfare. The funds allocated are often not need, therefore, to bring about an upward
budgeted; revision of the scholarship amount in
accordance with the changes in cost of living.
• Since the Secretary, in-charge of SC and
ST development is often not designated as
190 Mid-Term Appraisal of the Eleventh Five Year Plan

8.74. The scheme of `Post-Matric Scholarship 350 crore.

for OBCs’ is being implemented to encourage
higher education by providing financial 8.75. Coaching facilities for the OBC
assistance to OBC students studying at post- candidates aspiring to appear for competitive
Matric/post-Secondary level and to enable them examinations is extended along with SCs under
to complete their education. The expenditure the umbrella scheme of “Coaching and Allied
during the first three years of the Eleventh Plan Scheme for SCs, OBCs and Other Weaker
was to the tune of Rs.477.75 Crore which is Sections”. The coverage under the scheme is
129.30 per cent of the Eleventh Plan outlay of shared between SCs and OBCs in the ratio of
Rs.369.00 Crore for the scheme. A total of 44.6 70:30. Financial and Physical achievement
lakh OBC students are estimated to have been have been indicated above (Para 8.12.)
receiving Post-Matric Scholarships during the
first three years of the Eleventh Plan as against 8.76. There is a considerable demand for this
the Eleventh Plan target of 74.30 lakh students. scheme for OBCs which is reflected in the
An allocation for the Annual Plan 2010-11 is Rs. States seeking very large funding i.e., to the
order Rs.528.00 Crore in 2008-09 alone. The

Box 8.5
Commitment for Persons with Disability in the Eleventh Plan
• Adoption of four-pronged approach: (i) delineate clear-cut responsibilities between the
concerned Ministries/Departments; (ii) concerned Ministries/Departments to formulate detailed
rules and guidelines within six months of approval of the Eleventh Plan; (iii) ensure that each
concerned Ministry/Department shall reserve not less than 3 per cent of their annual outlay for
the benefit of disabled persons as enjoined in the Persons with Disabilities Act, 1995; and (iv)
setting up of monitoring mechanisms at various levels and develop a review system and to
monitor progress made on a regular and continuing basis;
• Create a separate Department of Disability in the Ministry of Social Justice and Empowerment;
• Appointment of a Chief Commissioner for Persons with Disabilities (CCPD) as mandated in
Persons with Disabilities Act, 1995;
• Income ceiling for availing assistance to be raised to Rs.10,000 per month. The ceiling for
purchase/ fitting of aids and appliances also to be enhanced to Rs.25,000 per month;
• Enhance the production capacity of aids and appliances and avoid the monopolization of
ALIMCO;
• Loan for disabled people through Commercial Banks, Regional Rural Banks (RRBs) and
Cooperatives on concessional terms for undertaking self-employment ventures;
• Every disabled person to possess a disability certificate within 30 days of application, by end of
Eleventh Plan;
• Setting up of disability units in the University Grants Commission (UGC), All India Council for
Technical Education (AICTE), National Council of Educational Research and Training (NCERT),
Kendriya Vidyalaya Sangathan (KVS), and all other apex education bodies;
• Scholarships and stipends for pre-matric education to all the disabled students and support for
training/education abroad, especially in studies relating to disability;
• Backlog of vacancies to be filled up at the Centre and the States. Employment for disabled
people in the private sector as per the provision of Section 41 of the Persons with Disabilities
(Equal Opportunities, Protection of Rights and Full Participation) Act, 1995;
• Barrier-free movement in all public buildings and facilities such as schools, hospitals, public
transports etc;
• Multi-pronged, cross-sectoral approaches to identify, prevent, manage, treat and rehabilitate
persons with mental disabilities. Issues relating to hearing and/or speech impairment to receive
focused attention; and
• Sign Language Research and Training Centre to be established for development and promotion
of sign language and training;
• To amend all the four disability related legislations suitably in consonance with UNCRPD;
• To set up National Institute of Universal Design to promote greater accessibility and a barrier-
free environment.
 Social Justice 191

scheme is also due for upward revision of its Review of the Policies and Programmes
stipend amounts which have remained
unchanged since the scheme was launched in 8.79. There are seven autonomous National
1998-99. Institutes for different types of disabilities.
These Institutes are engaged in Human
De-Notified, Nomadic, and Semi-Nomadic Resource Development in the field of disability,
Tribes providing rehabilitation services and research
and development efforts. During the first three
8.77 In the Eleventh Plan, the `De-Notified, years of the Eleventh Plan a total number of
Nomadic, and Semi-Nomadic Tribes’ (DNTs), 10.31 lakh disabled persons benefited through
received a special attention not only for the these Institutes. The expenditure in the first
reason that they are the most backward and three years of Eleventh Five Year Plan was
vulnerable communities among the socially Rs.138.75 Crore accounting for 94.38 per cent
disadvantaged groups, but also for the fact that utilization of the Eleventh Plan Allocation of
the developmental process has bypassed them. Rs.147 crore. An outlay of Rs. 54 Crore has
These communities do not receive special been made for 2010-11.
attention under any welfare and developmental
programmes, nor is there any specific 8.80. These Institutes are required to be
developmental programme attending to their strengthened as Centers of Excellence on par
special problems and needs. While some of with international standards. The activities of
these communities are included in the list of these Institutes need to be decentralized so as
SCs, STs and OBCs, the rest, at large, are not to cater to the needs of the rural disabled. To
receiving any welfare and developmental this end, these Institutes need to, in close
services in exclusive terms. The DNTs who are collaboration with concerned governmental and
not listed as SCs/STs/OBCs need to be non-governmental agencies, aim at
categorically identified with location targets and development of training and service models
attended through special welfare and specially suited to the demands and needs of
developmental programmes. To this effect, the disabled in rural, Tribal and hilly areas. The
there is a need first to identify and include them National Institutes continue to focus on building
in the list of SCs, STs or OBCs as appropriate, up technical manpower by offering academic
after having resolved the prevailing differences courses leading to degree and diploma. These
and discrepancies as regards their inclusion or Institutes need to be more research and
exclusion in the lists of the notified development oriented so as to devise
communities. Secondly, there is also a need to innovative, suitable and useful rehabilitation
formulate special schemes over and above the service packages in making the persons with
schemes already operational, as would be disabilities self-dependent and productive.
required.
8.81. Artificial Limbs Manufacturing
Social Welfare Corporation (ALIMCO) was established in 1976
as a ‘non-profit’ making company for
Persons with Disabilities manufacturing and supplying durable,
sophisticated, scientifically manufactured,
8.78. Approach of `inclusive growth’ adopted modern and ISI standard quality assistive aids
in the Eleventh Plan is pursued through suitably and appliances that can promote physical,
targeting the disabled in various welfare, psychological, social and vocational
developmental and rehabilitative programmes, rehabilitation towards reducing the effect of
in tune with the fast changing socio-economic disabilities and enhancing potential for self
scenario in the country. To this effect, a dependence. The value of production and sales
strategy of ‘empowerment’ of the persons with were Rs.52.30 Crore and Rs.52.44 crore
disability was adopted mainly on the basis of respectively in 2008-09. The expenditure in the
provisions of the Persons with Disabilities first three years of the Eleventh Plan was Rs.2
(Equal Opportunities, Protection of Rights and Crore which amount to 25 per cent of the
Full Participation) Act, 1995 (PWD Act). allocation of Rs.8 crore of the three years of the
192 Mid-Term Appraisal of the Eleventh Five Year Plan

Eleventh Plan. The allocation for the Annual first three years of the Eleventh Plan works out
Plan 2010-11 is Rs. 3.00 crore. to Rs. 27.75 Crore. The allocation for the
Annual Plan 2010-11 is Rs. 100 Crore.
8.82. ALIMCO products are believed to be Recognizing the need to amend the PWD, Act
costly and also have low acceptability among 1995 so as to bring it in consonance with the
the users. As such, there is an urgent need to United Nation Convention for Rights of Persons
enhance the production capacity of assistive with Disabilities (UNCRPD), an amendment to
devices that are affordable, culture specific and the PWD Act, 1995 is being contemplated.
repairable within five kilometer distance.
Manufacturing of assistive devices in the private 8.85. Under the scheme of Incentives to
sector should also be promoted. Evaluation of Employers in the Private Sector for Providing
the functioning of the Corporation in terms of Employment to the PWD, Government of India
catering to the needs of poorer segments of the provides the employer’s contribution for
disabled and to optimization of the cost of Employees Provident Fund (EPF) and
production of various aids and appliances is Employee State Insurance (ESI) for three years
called for. for physically challenged employees engaged in
the private sector with a monthly salary upto
8.83. Under the scheme of Assistance to Rs.25, 000. The scheme was launched in the
Disabled Persons for Purchase/Fitting of Aids/ second year of the Eleventh Plan i.e. in April,
Appliances (ADIP), around 2 lakh needy 2008 and hence had no allocation for the same
persons with disabilities are provided with in the Eleventh Plan. The Total expenditure of
assistive devices every year. The likely the Annual Plans 2008-09 and 2009-10 is
expenditure during the first three years of the Rs.5.50 crore against the allocation of Rs. 30
Eleventh Plan is Rs.176.67 Crore as against Crore which is accounted to 18.33 per cent. A
Rs.228 Crore allocation of the Eleventh Plan provision of Rs.8 Crore has been made in
indicating 77 per cent utilization. The allocation Annual Plan 2010-11 anticipating full utilization.
for the Annual Plan 2010-11 is Rs. 100 Crore. Notwithstanding the objective of the scheme to
Procedures under the ADIP scheme need to be encourage private sector to provide
simplified so as to facilitate easy availability of employment opportunities to the persons with
the much needed aids and appliances to the disabilities, the response from the employers is
persons with disabilities. There should be very poor despite the incentives provided.
involvement of ‘rehabilitation professionals’ for Therefore, effort needs to be made to sensitize
designing appropriate and more viable aids and the employers in the Private Sector to come
appliances. An evaluation study of the scheme forward to provide employment to the persons
carried out by Santek Consultants Private Ltd., with disabilities as an act contributing to the
Delhi suggest that the selection of NGOs for process of `inclusive growth’.
implementation of the scheme is critical and
therefore their stringent assessment before 8.86. The National Handicapped Finance and
selection should be made a pre-requisite. Development Corporation (NHFDC) was set up
in 1997 with an objective to support persons
8.84. The Persons with Disability (Equal with disabilities to take up income generating
Opportunities, Protection of Rights and Full and self-employment ventures through
Participation) Act, 1995 is being implemented provision of loans at concessional rates for
with aim to empower the persons with taking up viable income generating activities
disabilities in equal terms with others, by and pursuing professional/technical education.
extending needed protective, promotive and An allocation of Rs.25.00 Crore has been made
rehabilitative services with a right based for NHFDC in the Eleventh Plan. As against
approach. For effective implementation of the that, a total of Rs.37 Crore has been released
Act, multi sector collaborative approach needs in the first three years of the Eleventh Plan. The
to be undertaken by all the related Ministries/ allocation for the Annual Plan 2010-11 is Rs.
Departments, State Governments and other 50.00 Crore. The NHFDC would need to
Institutions. The total likely expenditure for identify more job-oriented vocations and
implementation of the PWD Act, 1995 in the enhance the funding under their schemes for
 Social Justice 193

economic empowerment of Persons with 8.89. Development programmes for the

Disabilities. The Corporation needs to be disabled people are implemented generally in
decentralized with simplified procedures for the metropolitan cities and other urban centres
loan facilities. by the NGOs, while rural and Tribal areas
remain, by and large, unattended. Tribal and
8.87. Recognizing the special problems and hilly areas should, therefore, be given more
needs of persons with disabilities, specific focused attention especially targeting the
aspirational and actionable pronouncements women with disability. Performance of the
were made in the Eleventh Plan. An NGOs working for the persons with disabilities
assessment of the progress made as regards needs to be evaluated so as to ascertain their
the actionable points concerning welfare and prominence in the sector. SC/ST Disabled
development of Persons with Disabilities people should be given priority under all welfare
indicates a disappointing performance; most of and developmental activities. To this effect,
these have remained unattended till date. State Governments need to be persuaded to
Except for increasing the income ceiling for identify voluntary agencies in the Tribal and
availing assistance to purchase aids and rural areas for their effective involvement in
appliances, the ceiling for purchase of fittings of planning and programme implementation
aids and appliances and partial achievement as concerning the Persons with Disabilities.
regards implementation of reservation for
Persons with Disabilities in various Ministries 8.90. In order to develop a much needed data
and Departments, rest of the expected base on population and other demographic
actionable pronouncements have seen little or variables, the Registrar General of India (RGI)
no progress. needs to be persuaded to include the disability
component in the forthcoming Census
8.88. Strengthening the Office of the operations. District Rehabilitation Center and
Disability Commissioners at the State level also PRIs should also provide relevant data on
needs to be ensured by providing both Persons with Disabilities to fill the prevailing
professional and budgetary support. More data gaps.
autonomy needs to be accorded to
Commissionerates so that their 8.91. The State alone cannot provide all the
recommendations will be binding at the Center services needed by Persons with Disabilities.
as well State and local level authorities in Hardly any comprehensive service package is
delivering services and support as per the available with the Private Sector for Persons
entitlement of Persons with Disabilities. with Disabilities. Voluntary sector should play a
Concerted efforts need to be made to set up credible role to provide user friendly affordable
District Disability Rehabilitation Centers services and to supplement the endeavors of
(DDRCs) in 300 districts of the country so as to the State. Voluntary efforts should be promoted
enable them to extend all rehabilitative support and supported in a bigger way to ensure
especially for the Persons with Disabilities living effective reach out especially to the un-reached
in remote rural and Tribal areas, on priority Persons with Disabilities in the rural and Tribal
basis. There should be a clear cut guideline in areas. Networking, exchange of information and
the PWD Act 1995, towards adherence to interaction among NGOs should be facilitated
uniform norm/definition while issuing Disability and encouraged to draw and adopt minimum
Certificates and the same should be issued standards, codes of conduct and ethics.
within 30 days of submission of application. Transparency, accountability, and procedural
Scholarship provided by the State to Persons simplification should also be the guiding factors
with Disabilities should be made equivalent to in striving for improvement in the NGO-
similar scholarships and stipend extended to Government partnership.
SC and ST students. Any future infrastructure
to be created should ensure easy accessibility
provision for the benefit of the Persons with
Disabilities in all the public buildings and civil
infrastructure, which could be made mandatory.
194 Mid-Term Appraisal of the Eleventh Five Year Plan

SOCIAL DEFENCE The allocation for the Annual Plan 2010-11 is

Rs. 140 Crore. The total beneficiaries are
Senior Citizens 45,000. A study of Senior Citizens by the
Centre for Gerontological studies,
8.92. The problems of old age and especially Thiruvananthapuram conducted in 2004-05
those of indigent are growing consequent upon suggested that all older persons in the lower
breaking of joint families, weakening of family income level need to be provided with pension.
ties and social relations and migration of the It was also suggested that the old age homes
young to urban areas for livelihood. Population should offer minimum standard of living by
of the aged and the proportion of indigent ensuring provision of nutritive food, health care,
among them would continue to increase with counseling facilities and the staff attending to
improvement in the life expectancy. There is an the aged inmates should be trained in geriatric
imperative need to have a proactive cognition care.
on these emerging and enlarging problems of
Senior Citizens. Drug Abuse

8.93. During the remaining period of the 8.97. The Scheme for Prevention of
Eleventh Plan, the State Governments need to Alcoholism and Substance (Drugs) Abuse is
be sensitized to formulate the State policies for being implemented since 1985-86 with the
older persons. In order to implement the objective of reducing the drug demand. The
National Policy for Older Persons (NPOP), thrust is on preventive drug abuse and re-
State Government should set up Regional integration of the addicts back into the
Resource Training Center (RRTC). mainstream society through coordinated efforts
of the Government and NGOs. The scheme has
8.94. Non availability of resource is a major now been revised, effective from Oct 2008.
hindrance for construction of old age homes. A Changes made in the revised schemes are as
separate fund for older people could be created follows:
to meet the resource crunch by levying certain
percentage of cess under corporate tax. • The objective of the scheme has been
revised to incorporate ‘Whole Person
8.95. The persons of 80+ age group need Recovery’ of the addicts.
special protection and specific attention as their
population is growing at a faster rate. • Panchayati Raj Institutions and Urban Local
Inadequacies of trained personnel in the areas Bodies have also been included as eligible
of elderly care are major areas of concern. organizations to receive grant-in-aid under
Available training facilities of the geriatric care the scheme.
and gerontology are inadequate and require to • The Counseling Centre (CC) and Treatment
be expanded with help from Universities and Centres (TC) of the pre-revised scheme will
NGOs. Emerging problems of older persons be merged in to a composite Integrated
such as Alzheimer and Dementia are increasing Rehabilitation Centre for Addicts (IRCA) for
day by day in the country. Accordingly, suitable comprehensive treatment, rehabilitation and
proactive initiatives need to be taken to arrest social re-integration of the victims of drug
the problem. abuse.

8.96. Integrated Scheme for Older Persons is • There is a provision for a grant of Rs. 900/-
being implemented since 1992 to improve the p.m. per beneficiary for providing food for
quality of life of Senior Citizen by providing persons below poverty line and to permit
basic amenities like food, shelter, Medicare and the implementing agencies operating IRCA
entertainment facilities. An outlay of Rs.205 to charge o amount of Rs. 900/-p.m. from
crore is provided for the scheme in the Eleventh the Above Poverty Line (APL) addicts.
Plan; against that, the expenditure is Rs.53.57 • The revised scheme provides that in the
Crore during the first three years of the Plan IRCAs, the 15 and 30 beds can be
indicating 26.13 per cent utilization of funds. upgraded to 20 and 40 beds respectively in
 Social Justice 195

urban areas and North-East, depending Virtually, there is no programme or scheme

upon their actual utilization. There will be from State side to address the problems of
flexibility in authorizing the staff strength as alcoholism and substance (drug) abuse.
well as recurring cost payable to them with
the approval of the Ministry. Role of NGOs
• Maximum permissible period of stay in a
8.100. NGOs have been involved in the
De-addiction Centres was one month. In the
implementation of various Social Welfare
IRCA, this may go up to two months
programmes. Their role has been to function as
depending on the recommendation of a
motivators / facilitators to enable the community
local committee based on peculiarity of
to chalk out an effective strategy for tackling
each case.
social problems. However, there are a few
• Regional Resource and Training Centers drawbacks in the implementation through
(RRTC) have been made as an integrated NGOs, viz., i) rigid rules and procedures; ii)
component of the scheme. most of the NGOs working in social welfare are
urban based; iii) uneven spread of NGO
8.98. Against the allocation of Rs.110.00 services in various States / regions of the
Crore under the Eleventh Five Year Plan, the country; and iv) lack of NGO activities in the
expenditure during the three years i.e. 2007-08, rural and Tribal hilly areas. There is also a need
2008-09 and 2009-10 is placed at Rs. to encourage NGOs to build their capacity and
69.79Crore (63.45 per cent utilization) covering strength to stand on their own. For the existing
1.79 lakh beneficiaries. The allocation for the social welfare programmes to reach the rural
Annual Plan 2010-11 is Rs. 41.00 Crore. The unreached areas, it is imperative that the NGOs
scheme was evaluated in 2007-08 by Jai and voluntary agencies working at grass root
Prakash Institute of Social Change, Kolkata. level develop linkages with Panchayats, local
The major findings and recommendations are bodies and other agencies engaged in
given in Box 8.6. extension of social services.

8.99. In various States, social welfare Resource Position

programmes continue to be administered by
more than one Department. Adequate attention 8.101. The sector-wise financial achievements
is not given to induction of trained in terms of outlay and expenditure incurred
professionals/social workers and establishment thereto in the Eleventh Plan and Annual Plans
of linkages with grass-root level workers and 2007-08, 2008-09 and 2009-10 are furnished at
institutions. Also, the feedback from States/UTs Table 8.4. Statements showing scheme-wise
is not forthcoming on a regular basis. As a details of outlays and expenditure during the
result, no meaningful assessment of the impact Eleventh Plan are given in Annexure I & II.
of various policies and programmes is feasible.

Box 8.6
Scheme for Prevention of Alcoholism and Substance (Drugs) Abuse
Findings Recommendations
• The substances that were commonly used • The study suggested for behaviroural and
and abused by the respondents were occupational therapy by professional experts.
tobacco, cannabis, alcohol, brown sugar,
hallucinogens and multiple drugs.
• Most of the Drug abusers were in the age • The de-addiction centers should be located in
group of 18-28 years. close proximity of the hospitals, centres for
medical and psychiatric care and other support
services.
• More than 60 per cent of the clients did not • Provision for proper accommodation for the
get effective counseling services. centres, safe drinking water and proper
sanitation need to be ensured in de-addiction
centres.
 196 Mid-Term Appraisal of the Eleventh Five Year Plan

Table 8.4
Outlays and Expenditure during Eleventh Plan
(Rs. in crore)
Sector Eleventh Annual Plans Total % to Annual
Plan expds. Eleven Plan
Outlay 2007-08 2008-09 2009-10 For 3 th 2010-11
BE Expdr. BE Expdr. BE Expdr. years of outlay BE
the with 3
Elevent years
h Plan
A. Central Sector (CS)
1 Welfare 5086.21 779.00 752.77 897.00 999.46 837.00 748.84 2501.07 99.52 969.00
of SCs &
OBCs
2 Welfare 1906.80 289.00 240.37 335.00 253.86 355.00 255.41 749.64 76.57 673.00
of
Disabled,
Aged &
Other
Vulnerabl
e Groups
Total (A - 6993.01 1068.00 993.14 1232.00 1253.32 1192.00 1004.25 3250.71 93.07 1642.00
CS)
B. Centrally Sponsored Scheme (CSS)
1 Welfare 6050.00 932.00 1180.31 1168.00 1103.15 1308.00 1444.09 3727.55 109.38 2858.00
of
SC&OBC
Total (B - 6050.00 932.00 1180.31 1168.00 1103.15 1308.00 1444.09 3727.55 109.38 2858.00
CSS)
Total 13043.01 2000.00 2173.45 2400.00 2356.47 2500.00 2448.34 6978.26 101.13 4500.00
(A+B)

MINORITIES 8.103. In pursuance of the approach of

‘inclusive growth’, the Plan triggered a wide
8.102. Upholding the Constitutional range of welfare and developmental initiatives
provisions, the Government is committed to all addressing sectors like education, economic
round development and protection of the empowerment and access to amenities.
Minorities through implementation of various However, the problem of communal violence
welfare and developmental programmes and has been causing adversities and impediments
legislative measures. It has established in implementation and thus distancing the
institutions, autonomous bodies and developmental goals from bridging the schism
commissions to monitor and protect their rights. between minority and majority. As long as
Yet, these disadvantaged and marginalized deprivation continues to be a part of people’s
segments face discrimination, violence and lives and they have to keep competing for
atrocities. In view of this, the Eleventh Plan limited resources, it will be difficult to build
focused attention on the minorities especially cohesiveness in society. Notwithstanding
those living in relative socio-economic adversities, intensive efforts need to be made to
backwardness. It also recognized the need for ensure the effective implementation of our
systemic interventions through schemes and policies and schemes and move away from ad-
programmes to ensure that they fully participate hocism to a comprehensive framework which
in the process of growth and development. cumulatively addresses social-economic
inequalities.
 Social Justice 197

Box : 8.7
Eleventh Plan at a Glance
The Approach

• Improving access, retention and achievement in primary, elementary and higher education, with
particular emphasis on the education of the Minority Communities, especially Muslim girl child;
• Enhanced access to credit and subsidy for self-employment, promotion of traditional crafts,
upgradation of technical skills and equal opportunity for employment in public and private sector;
• Creation of a National Data Bank (NDB) to collect data on various aspects of Socio Religious
Communities (SRCs);
• In depth evaluation of National Minority Development and Finance Corporation (NMDFC) and
the Maulana Azad Education Foundation (MAEF) to improve their efficacy and suggest other
institutional innovations;
Monitorable Targets

• Multi sectoral Development Programme (MSDP) for Minority Concentration Districts (MCD): 90
Districts
• Pre Matric Scholarship Scheme: 25 Lakh students
• Post Matric Scholarship Scheme: 15 Lakh students
• Merit cum Means Scholarship: 2.55 Lakh students
• Free Coaching and Allied Assistance for the Minorities: 25,000 students

8.104. With the establishment of Ministry of legislations like the Communal Harmony Bill
Minority Affairs (MoMA) on 29th January, 2006, have been introduced.
various schemes were introduced for the first
time. For instance, the scheme for the 8.106. As a part of Mid Term Appraisal
Development of Minority Concentrated Districts process, five regional consultations were held
was formulated for developing infrastructure in at; Chandigarh (North Consultation),
the backward parts of the districts. The Plan’s Bubhaneshwar (East Consultation), Jaipur
recognition of the importance of access to (West Consultation), Bangalore (South
quality education resulted in the formulation and Consultation) and Guwahati (North East
implementation of Pre-Matric, Post-Matric and Consultation), in collaboration with UNIFEM,
Merit cum Means scholarship schemes. UNFPA and UNICEF. Two NGOs, Voluntary
Meanwhile, as a result of Prime Minister’s New Health Association of India (VHAI) and National
15 Point Programme, some ministries set aside Alliance of Women (NAWO), were also
a minority component in their flagship schemes associated in the process. These Consultations
such as SSA, ICDS, SGSY and IAY etc. were preceded by State Level Consultations.
Further, an Assessment and Monitoring Consultations were also held with officials from
Authority (AMA) and a National Data Bank State Governments who are the main
(NDB) were set up to improve the present implementers of the schemes. A national level
system of data collection and analysis and workshop of academics, researchers and
make available minority disaggregated data. NGOs was held to get their perspective on the
schemes. A detailed feedback was obtained
8.105. Many steps have thus been taken but from MoMA regarding schematic appraisal in
their implementation has been facing terms of physical and financial targets/outlays
difficulties. This is partly due to the fact that to and achievements. Through this process it has
be truly effective, these schemes need to be been possible to identify difficulties, bottlenecks
underpinned by a greater sensitisation and and good practices over the first half of the
change, not only in the mindsets of people but current plan. The MTA process for Minorities
in the psyche of implementing officers as well. also entailed for the first time a comprehensive
These changes are long in coming; therefore, review and analysis of the Ministry’s schemes
there has been little visible difference in the most of which were introduced in the first half of
condition of minorities. Some, important the Eleventh Plan. The assessment is also
198 Mid-Term Appraisal of the Eleventh Five Year Plan

based on the field visits by Planning expenditure incurred are furnished at Annexure
Commission team to various parts of India. The – III.
findings and feedback received through the
process of consultations have been taken into 8.108. Three new schemes have been
account in the Mid Term Appraisal. introduced during the current financial year
(2009-10): ‘Maulana Azad National Fellowship
8.107. In the Eleventh Plan, the Ministry of for Minority Students’ with a fiscal allocation of
Minority Affairs (MoMA) was allocated Rs. Rs.15.00 Crores, ‘Grant-in-aid to
7,000 Crores and the outlay for the first three Computerization of records of State Wakf
years is Rs.3,240 Crores, constituting 46 per Boards’’ with an allocation of Rs.10.00 Crores

Table 8.5
Targets and Achievements

Name of Launch Eleventh Fiscal Expenditure Eleventh Achieve- Annual

scheme Year Plan Allocation 2007- 2010 Plan ments Plan
Allocation for 2007- (Rs. in Targets 2007- 10 2010-11
(Rs. in 10 Crores) Allocation
Crores) (Rs. in
Crores)
Pre Matric 2008 1400 360 265.25 25 Lakhs 17.29 450.00
Scholarship students Lakhs
Post-Matric 2007 1150 350 229.06 15 Lakhs 3.88 265.00
Scholarship students Lakhs
Merit cum 2007 600 279 203.10 2.55 35, 982 135.00
Means lakhs
Scholarship students
Coaching and 2007 45 32 24.26 25,000 15, 151 15.00
Allied students
Assistance for
the Minorities

cent of the total proposed outlay. The expected and ‘Scheme for Leadership Development of
expenditure for the first three years is Rs. Minority Women’ with an allocation of Rs. 8
2,507.83 Crores, 77.40 per cent of the outlay. Crores which was transferred from Ministry of
Several new schemes were introduced in the Women and Child Development to Ministry of
first half of the Eleventh Plan. Pre, Post Matric Minority Affairs. Being a new Ministry it is still
and Merit cum Means Scholarship schemes early to make assessment of the performance
were introduced for the benefit of Minority of the schemes. Due to lack of previous data no
Students, Multi Sectoral Development comparisons can be made.
Programmes in 90 Minority Concentration
Districts was also introduced towards filling the Educational Measures
developmental gaps in such districts.
Meanwhile, two existing institutes- National • Pre-Matric Scholarship: For education of
Minority Development and Finance Corporation children of minority communities, a
(NMDFC) and Maulana Azad Education Centrally Sponsored Scheme was launched
Foundation (MAEF) were provided with in 2008 on a 75:25 fund sharing basis
additional funds for enhancing the equity and between the Centre and the States.
corpus fund respectively. Coaching and Allied Students with not less than 50 per cent
Assistance scheme was revised. The scheme- marks in the previous final examination and
wise details of allocations made and whose parents/guardians annual income
 Social Justice 199

does not exceed Rs.1 Lakh are eligible. An per annum. The entire cost under the
outlay of Rs.1400.00 Crores was provided scheme is borne by the Central
for the Eleventh Plan to award 25 Lakh Government. 20,000 scholarships are
scholarships of which 30 per cent are proposed to be awarded every year,
earmarked for girl students. 73.69 per cent besides renewal of old scholarships. About
utilisation was indicated for the three years 72.79 per cent of the Rs. 279.00 Crores
(2007-10) of the total outlay. For the Annual sanctioned for the scheme for the first three
Plan 2010-11, Rs. 450 Crores was of the Eleventh Plan (2007-10) were spent.
allocated. For 2010-11, Rs. 135.00 Crores have been
allocated.
• Post-Matric Scholarship: Minority
students especially those in backward • Coaching and Allied Assistance for the
areas find difficult to access higher Minorities: The scheme was launched in
education because of fees and non 2007 as a Central Sector Scheme with 100
availability of good institutions of higher per cent central funding. The objective of
education in their areas. A Centrally the scheme is to assist the candidates from
Sponsored Scheme was launched in 2007 economically weaker minority communities
to address the same which has 100 per through supplementary coaching. In the first
cent central funding. An outlay of three years of the Eleventh Plan (2007-10)
Rs.1150.00 Crores has been provided in the total outlay was Rs. 32.00 Crores and
the Eleventh Plan to award 15 Lakh the total expenditure accounted was Rs.
scholarships. Despite the huge demand, 24.26 Crores i.e. 75.81 per cent. For the
only 3.88 Lakh minority students were Annual Plan 2010-11, the allocation was
awarded Post-Matric Scholarship in the first Rs. 15.00 Crores. It is imperative that the
three years of the Eleventh Plan as against State Governments take up the scheme
the target of 15 Lakh students. and identify good coaching institutes. The
States have been falling behind in sending
• Unlike the Pre-Matric scheme, the uptake
good proposals seeking support from the
for the Post Matric scheme has been slow.
Ministry. At the same time, good coaching
This is partly because some states are not
institutes must also come forward and apply
disbursing the stipends on time. Timely
in their respective states for the students
allocation of funds by the states through
studying in their institutes.
bank accounts is essential. This should be
done at the beginning of the academic year • Maulana Azad Education Foundation
because insistence on full payment of fees (MAEF): The Foundation was set up in
at the time of admission deters students July, 1989 with a corpus of Rs 30 Crores to
from poor families. It is imperative that only promote education among backward
deserving students access this scheme. minorities in general and girl children in
Since the number of scholarships is pre- particular. In 2009 the Corpus Fund of the
determined and the demand is very high, Foundation was Rs.425.00 Crores. While
there should be meticulous handling. It is there is a need for expansion and
better that for every account opened by a strengthening the activities of MAEF on one
beneficiary for this purpose, Government is hand, on the other, there prevails a
required to pay Rs.500 as an advance resource crunch due to static or declining
deposit. It is urgent to regulate this practice rate of interest on the MAEF corpus. In
because it defeats the objective of the 2009, the Foundation initiated action for
scheme. evaluation and asset verification study
through an independent agency.
• Merit-cum-Means Scholarship: This
scheme, for Professional and Technical
Economic Measures
courses at Graduate and Post Graduate
levels, was launched in 2007 with the
• National Minority Development and
objective of providing financial assistance to
Finance Corporation (NMDFC): The
students of minority communities from poor
Corporation was set up in 1994 with an
families with parental income of Rs.2.5 lakh
200 Mid-Term Appraisal of the Eleventh Five Year Plan

authorised share capital of Rs.500.00 Banking Finance Company (NBFC) and will
Crores which has been enhanced to Rs. act as a holding company for two other
1,000 Crores, in 2009-10. It provides institutions viz. Minority Partnership (MP)
funding through NGOs and State and National Wakf Development Agency
Channelising Agencies (SCA).The NMFDC (NWDA). The Government has approved
channelises its activities through 36 State the proposal and the Ministry of Minority
Channelising Agencies (SCAs) working in Affairs is working in this direction.
different states. Despite incentives provided
• Like all other programmes of MoMA, this
in the form of funds, the performance of
one also begs for intensive awareness
SCAs remains unsatisfactory. Non-
generation and information dissemination.
submission of utilisation certificates has
Guidelines in local languages should be
prevented them from getting additional
made available. The Consultative Group
funds due to them.
stated that though the interest rate charged
• The Corporation also implements its by NMDFC is low and without complexities,
programme through non-governmental its funds are limited i.e. Rs 5-10 Lakh per
organisations under micro credit financing NGO, as is the loan repayment period.
upto Rs.25,000 which is given to each Details of term loans and micro finance
member of the Minority Self Help Group. disbursed are on the website of NMDFC.
Funds for this purpose are made available However, it averred that the Corporation
to NGOs @ 1 per cent for further loaning at does not respond to queries. The next two
an interest rate of 5 per cent per annum. In and half years should also make NMDFC
addition to loaning activity, NMDFC assists more inclusive by reaching out to all
the targeted group in skill up-gradation and minority groups. Further, a nodal
marketing assistance. Under the NGOs department/agency as a facilitator should
programme, there is also a provision of be identified to simplify all transactions and
interest free loan (adjustable as grant) for guarantee accountability.
promotion and stabilization of SHGs.
• NMDFC continues to remain heavily • As the social and economic infrastructure in
dependent on Government assistance, many Minority Concentration Districts is
even though it was expected to become severely lacking, a Centrally Sponsored
self-reliant within two to three years of its Scheme of Multi Sectoral Development
establishment. As on 31.3.2009, the Programme of Minority Concentration
Government of India has contributed Districts was launched in 2007 with 100 per
Rs.520.36 Crores towards Share Capital of cent funding from Government of India. 90
while Rs.123.41 Crores was to be Minority Concentration Districts were
contributed by State Governments. Some of identified based on population figures and
the states have failed to contribute their the backwardness parameters of 2001
balance share of Rs.131.50 crores Census. Activities for building a better
Individuals, philanthropists and industrialists infrastructure are being undertaken; for
have not come forward to contribute to the instance, critical infrastructural linkages like
Corporation either. As a result, the basic health infrastructure, Anganwadi
programmes for economic upliftment of Centres, education, sanitation, health,
minorities in some States have stagnated. pucca houses, drinking water and electricity
supply. Besides beneficiary oriented
• An Expert Committee of professional programmes, income generating activities
bankers and financial experts was like skill development are also covered. The
constituted to review the functioning of the scheme is being implemented through the
Corporation and suggest an action plan for Panchayati Raj Institutions/Line
improving its operational performance. The Departments/ Public agencies/Scheduled
Expert Committee in its Report (April, 2007) Areas Councils in accordance with the
recommended its restructuring. The implementation mechanisms in practice at
Corporation would be converted from a the States/UT’s level. Halfway through the
Company into a non-deposit taking Non-
 Social Justice 201

Plan, District Plans of only 72 districts have concentration areas for participation of
been approved. It should be ensured that Muslim children at elementary level. SSA
the Central Assistance released for was also to focus on 88 Muslim
undertaking programmes in 72 districts is concentration districts (with more than 20
utilized in a time bound manner and per cent Muslim population). For 2008-09,
remaining districts should also be motivated 22,922 Primary Schools and 20,243 Upper
to undertake the programme. Primary Schools were fixed as national
targets. Of these national targets, 4404
Social Measures Primary Schools and 4154 Upper Primary
Schools were earmarked for minority areas.
• Progress under Prime Minister’s New 15- Out of these schools for Minority areas,
Point Programme: For the first time, a 3266 and 2662 have been constructed as
comprehensive effort was made to sensitise primary and upper primary schools
Ministries/Departments on needs of minority respectively. There is a provision of opening
communities in 2006. PM’s New 15 Point Alternative and Innovative Educational
Programme directed that 15 per cent of Centres (AIE Centres) for children enrolled
funds in all the flagship schemes be in unrecognised Madarssas. In 2008-09,
earmarked for the welfare of minorities. SSA sanctioned funds for 7340
MoMA, as the nodal Ministry for unrecognised Madarrsas to cover 33,2651
coordinating and monitoring the children in 15 States. Despite the
implementation of this programme, is commitments made under PM’s New 15
ensuring that the benefits, of poverty Point Programme an assessment of SSA’s
alleviation schemes, flow equitably to the performance showed that percentage of
minorities. It has quantified a certain portion Minority students at the Upper Primary
of development projects to be located in School has declined from 99.50 per cent in
areas with concentration of minorities. All 2007-08 to 64 per cent in 2008-09.
Central Ministries/ Departments, State Construction of additional rooms in schools
Governments/UTs Administrations have has also declined from 100 per cent in
been asked to implement this programme. 2007-08 to 74 per cent in 2008-09. Further,
Six Central Ministries - Human Resources the recruitment of Urdu teachers has also
Development, Labour and Employment, declined from 86.44 per cent in 2007-08 to
Housing and Urban Poverty Alleviation, 72 per cent in 2008-09.
Rural Development, Women and Child • Kasturba Gandhi Balika Vidhyalayas:
Development, Department of Financial Out of 2578 residential schools for girls at
Services are responsible to allocate funds Upper Primary Level, a minimum of 75 per
and benefits, as fixed in the 15 Point cent seats are reserved for Minority, SC, ST
Programme, in their respective schemes. & OBC girls. 427 KGBV have been
sanctioned in blocks having over 20 per
cent Muslim population, out of which 357
8.109. Some Flagship schemes covered are currently operational, enrolling 26 per
under the 15 -Point Programme are given cent Muslim Girls. Under this scheme a
below: positive aspect has been noted, whereby
there has been a 10 per cent increase in
• Sarva Shiksha Abhiyan: The Sachar the enrolment rate of minority girls from 69
Committee Report and the Consultative per cent in 2007-08 to 79 per cent in 2008-
Meetings identified lack of access to 09.
education as the major barrier to
empowerment of Minorities. Though the • Swarnjayanti Gram Swarozgar Yojana :
enrolment of Muslim children is 10.49 per These schemes aimed at poverty
cent to the total children enrolled in alleviation, have been included for
elementary education (DISE, 2007-08), earmarking 15 per cent of their resources
MHRD focuses on innovative strategies of towards development of minorities under 15
community mobilization in minority Point Programme. During 2007-08, under
202 Mid-Term Appraisal of the Eleventh Five Year Plan

SGSY, as against the target of assisting The Road Ahead

2,02,912 Swarozgaries belonging to the
minority population, the accomplishment (a) During the Eleventh Five Year Plan
was 1,42,399 indicating 71 per cent
achievement. During 2008-09 more than 8.111. Scholarships offered by different
104 per cent achievement was indicated Ministries to weaker sections of the society,
with 2,75,121 minorities being assisted for follow different norms and criteria concerning
self-employment as against the target of the stipend amount and parental income. This
2,64,401. creates anomalies and mismatch, as a minority
• Indira Awas Yojana : In 2007-08 against can also be SC, ST or OBC and vice-versa.
the target of providing houses for 3,19,078 There is a need to harmonise the norms of all
minority families, achievement was scholarship schemes provided to offer the same
1,56,015 families indicating 49 per cent benefits in different contexts. There is a need to
achievement. In 2008-09, against the target create absorption capacity of funds by
of providing houses for 3,19,075 minority expanding the coverage, generating awareness
families, achievement was 3,84,775 families about the schemes especially in remote rural
indicating 120 per cent achievement. and inaccessible areas, providing trained and
adequate staff, infrastructure, and planning
8.110. In 2008-09, an Evaluation Study was capacity at state, district and block levels.
conducted by National Institute of Rural
Development (NIRD) on the impact of SGSY • Minority community women are doubly
and IAY programmes on minorities, covering disadvantaged, as women and as members
seven states. It included - Bihar, Jharkhand, of minority community. In the Eleventh Plan
Karnataka, Kerala, Uttar Pradesh, Uttrakhand Scheme for Leadership Development of
and West Bengal. The study indicated that Minority Women was proposed in pilot
80.14 per cent of Swarozgaries belonging to the mode to ensure that benefits of growth
minority community felt the positive impact of reach women of all minority communities.
SGSY on their economic development; 36 per Implementation of this scheme has been
cent of Swarozgaries reported that due to their commenced in 2009-10. The scheme
participation in SGSY their family’s income has needs to be implemented effectively.
increased. 43 per cent Swarozgaries reported
• Maulana Azad National Fellowship for
now they are spending more money on their
Minority Students from Minority Community
children’s education and about 21 per cent
with an allocation of Rs.15 Crores has
perceived an increase in their social status.
recently been introduced by the Ministry to
Under IAY about 85 per cent of beneficiaries
facilitate research studies at the M.Phil and
belonging to the minority community reported
Ph.D level. The scheme will be
they feel more confident to “lead an enhanced
implemented in the states through UGC.
level of socio-cultural life”, due to allotment of
houses; about 71 per cent of beneficiaries felt • Under Multi sectoral Development
they are putting more monetary resources in Programme of Minorities (MSDP) for
income generation activities. About 76 per cent Minority Concentration Districts, activities
beneficiaries are now spending more towards related to education and income generation
the education of their children. The positive need to receive greater attention. In this
outcomes accomplished should be further regard, the Minority concentration localities
optimised through coverage of more minority should be given priority focus as intended.
beneficiaries and converging these schemes
with other income generating programmes • A new scheme titled ‘Prime Minister’s
towards ensuring sustainable source of income. Employment Generation Programme
(PMEGP)’ has been approved in August
2008 through merging existing Pradhan
Mantri Rojgar Yojana (PMRY) and Rural
Employment Generation Programme
(REGP) schemes of Rural Development
 Social Justice 203

Ministry. Under PMEGP, 92,884 candidates socio-economic parameters. Ministries/

were selected by respective Task Forces Departments concerned which have
for assistance. The financial assistance for existing schemes addressing such deficits
36,287 projects have been sanctioned by should be advised to give priority in the
banks which is expected to generate an implementation of their schemes in such
estimated 3.63 lakh additional employment towns.
opportunities. An estimated 61,670 projects
• Some of the above mentioned schemes for
for generation of 6.17 lakh additional
MCDs require a large gestation period, but
employment opportunities were targeted in
with demand driven schemes like Pre and
2008-09. The scheme provides for clear
Post Matric Scholarships quick information
cut coverage of weaker sections including
dissemination throughout the year is the
minorities but there is no data to quantify
key. Majority of beneficiaries are not aware
the benefits accrued to Minorities. AMA and
of the programmes and none have
NDB need to direct organizations and
understanding of the various nuances and
Ministries concerned to collect data on SRC
contours of these schemes. Awareness
basis so that the benefits reach the
generation and information dissemination
Minorities as, envisioned in the scheme.
on all the minority-specific and minority-
related programmes is essential for which
required resources must be budgeted and
(b) Beyond Eleventh Five Year Plan
spent during the balance period.
• Under Scholarship schemes for SCs, STs, • The Handloom Sector employs over 65 lakh
OBCs and Minorities, there are several persons in weaving and allied activities with
procedural difficulties like obtaining income 35 lakh looms. This sector is weaver-
certificates from Tehsildars, (which is specific / occupational in nature, with the
mandatory for filling the application) which majority of weavers belonging to the
deters students from accessing the poorest and the marginalised sections of
scheme. There is an urgent need to simplify the society including minorities. As per the
the process and facilitate students to take Handloom Census of 1995-96, of the total
fullest advantage of the scheme. work force of 65 lakh persons, women
constitute 60.6 per cent, SC constitute 9.91
• The scope of PM’s New 15 Point
per cent, ST constitute 26.54 per cent and
Programme needs to be expanded both in
43.62 per cent weavers belong to the OBC.
terms of bringing more development
Although, a sizeable number of minorities
programmes under its ambit and optimising
are engaged in weaving, but there is no
the coverage.
disaggregated data about the number of
• The Inter-ministerial Task Force on minorities employed in this sector. This calls
`Implications of the Geographical for an urgent attention to ensure course
Distribution of Minorities’ in its report correction viz., minorities receive
identified 338 Towns with substantial appropriate opportunities for credit etc. in
minority population which lack in basic the sector. In the Handicrafts Sector, about
amenities and are backward in specified 23 per cent of the artisans belong to

Box 8.8
Research Studies Monitoring and Evaluation of Development Scheme Including Publicity
With an allocation of Rs.35 Crores, this Central Sector Scheme came into effect from November 2007.
The scheme provides professional charges to institutions with expertise to undertake situational
analysis on the position of minorities through mechanisms like baseline surveys. It also provides
assistance to private media agencies for carrying out multi media campaigns and publicity activities to
disseminate information and generate awareness. In the first two years of the Plan, there has been a
positive increase in the expenditure compared to the budgetary allocations. Since, lack of awareness
was the concern expressed at every regional and expert consultation with NGOs and academics, a
scheme like this can do immense good. The Ministry of Minority Affairs also plans to monitor
implementation of Minority Welfare Programmes like Multi sectoral Development Programme and
Minority Scholarship Schemes by employing 150 national level monitors.
204 Mid-Term Appraisal of the Eleventh Five Year Plan

minorities. However, the same condition handicrafts, small scale industries and other
prevails. There is no data available to traditional occupations. Hence, we need to
establish that the minority artisans are provide for them schemes which are
getting benefits under the programmes of specifically suited for this need of theirs.
the handicrafts sector.
Conclusion
• National Rural Health Mission (NRHM)
Programme is operationalised through out 8.112. The Minority question has been a
the country with a special focus on 18 subject of vigorous debate during the last three
States. The main aim of NRHM is to provide years. Discrimination in India is not confined to
accessible, affordable, accountable, any single community or group. However,
effective and reliable primary health care certain minorities especially Muslims have felt
facilities, especially to the poor and deprived of developmental benefits on the one
vulnerable sections of the population. Under hand, while on the other, they feel insecure in
the programme, States are spending 90 per the context of the wider global scenario.
cent of the allocations but no disaggregated Therefore, it is necessary to do all that is
data is available on the assessment of the possible to mitigate their problems. Above all,
benefits and funds being utilised by the challenge before us is to ensure that our
minorities. AMA and NDB need to advise society remains cohesive and culturally diverse.
organizations and institutions concerned to For this, there is a pressing need to bridge the
generate the requisite data on SRC basis. economic and social gaps which affect
Minorities and ensure their protection through
• Different minority communities have specific our Minority policies and programmes. This
contextual issues besides having certain has to be done in a way that integrates rather
common ones. For instance, diminishing than divides people on sectarian basis.
population of Parsis is an exclusive issue
related to the community. The demographic 8.113. Despite obstacles there is a growing
problem related to this group needs to be consciousness and assertion among minorities
attended as an issue specific to Parsis. to overcome their isolation and turn their
Similarly, there would be a plethora of such marginalization into inclusion. This process
specific issues related to each Minority needs to move in a certain natural way, in
community; Sikhs, Muslims, Christians and which they create their own, (not artificial and
Buddhists. More specifically there are controlled) mutual relations. Minorities are an
gender specific issues across community essential part of the Indian mosaic and we need
lines that would require a more systemic to constantly nurture policy that recognizes,
attention. Any developmental programmes accepts and assimilates various ethnic,
and other strategic initiatives need to be national, religious as well as linguistic
sensitive to the cultural values of minorities. minorities. While the minorities are clamoring
We need to first locate their strength and for space in the development paradigm, these
capacity and then supplement it with inputs new schemes can become significant building
that could be extended through various blocks for a new model of equality which
schemes and programmes. For instance; stresses upon issues of justice and inclusive
many of the Muslim minority communities growth.
are engaged in household based industries,
 Social Justice 205

Annexure – I
MINISTRY OF SOCIAL JUSTICE AND EMPOWERMENT
BACKWARD CLASSES SECTOR ( SCs & OBCs ) AND SOCIAL WELFARE SECTOR (SW)
SCHEME-WISE FINANCIAL OUTLAYS AND EXPENDITURE

Sl. 11th Plan 2007-08 2008-09 2009-10 2010-11

No. Schemes/Programmes (2007-12)
Outlay BE RE Expdr. BE RE Expdr. BE Expdr. BE
1 2 3 4 5 6 7 8 9 10 11 12
A CENTRAL SECTOR SCHEMES (CS)
I Backward Classes Sector (SCs & OBCs)
1 Special Central Assistance (SCA) to Scheduled 3069.7 470.0 501.4 501.2 480.0 594.1 601.6 480.0 458.8 600.0
Castes Sub Plan (SCSP)
2 National Finance Development Corporations for 431.0 98.0 95.0 94.7 110.0 110.0 111.0 110.0 110.0 130.0
Weaker Sections
3 GIA to NGOs for SCs, OBCs, Research & 325.0 52.0 52.2 46.6 52.0 52.0 35.0 53.0 18.9 69.0
Training, Information and Other Miscellaneous
4 Rajiv Gandhi National Fellowship for SCs 574.8 88.0 53.6 78.4 75.0 87.9 87.9 80.0 105.0 160.0
5 Top class Education for SCs 204.5 16.0 6.0 2.2 20.0 5.0 5.0 20.0 8.3 25.0
6 Dr. B. R. Ambedkar Foundation 6.3 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
7 Self-Employment Scheme for rehabilitation of 350.0 50.0 50.0 25.0 100.0 100.0 100.0 100.0 50.0 5.0
Mannual Scavengers
New Scheme
8 National Overseas Scholarships Schemes for SCs 125.0 4.0 4.0 2.9 5.0 5.0 5.0 5.0 3.4 6.0
Babu Jagjivan Ram Foundation 0.0 0.0 0.0 1.0 54.0 54.0 53.0 0.0 0.0 0.0
Total - I 5086.2 779.0 763.2 752.8 897.0 1009.0 999.5 849.0 755.4 996.0
II Social Welfare Sector (SW)
9 Scheme for Funding to National Institutes 359.0 55.0 56.3 48.8 55.0 55.0 53.4 55.0 49.6 70.0
10 Artificial Limbs Manufacturing Corporation, Kanpur 12.0 2.0 2.0 2.0 3.0 3.0 0.0 3.0 0.0 3.0
(ALIMCO)
11 Fitting of Aids & Appliances for the Handicapped 500.0 70.0 70.0 49.1 79.0 79.0 60.2 79.0 67.4 100.0
12 Deen Dayal Disabled Rehabilitation Scheme 500.0 70.0 77.0 70.6 70.0 70.0 64.7 76.0 61.6 120.0
13 National Handicapped Finance and Development 30.8 7.0 10.0 10.0 9.0 18.0 18.0 9.0 9.0 50.0
Corporation (NHFDC)
14 Implementation of the Persons with Disabilities 25.0 18.0 17.4 9.5 20.0 19.0 7.4 20.0 10.8 100.0
(PWD) Act., 1995.
15 Assistance to Vol. Orgns. for Providing Social Def. 275.0 40.0 31.5 29.3 40.0 35.0 23.9 40.0 25.8 46.0
Services including Prevention of Alcoholism &
Drug Abuse
16 Assistance to PRIs/ Vol. Orgns. for Programmes 205.0 22.0 20.0 16.1 35.0 35.0 17.7 37.0 19.7 140.0
related to Old Aged.
17 Grant-in-aid to Research, Information and Merged together at Sl. No. 3
Financial assistance to Women
206 Mid-Term Appraisal of the Eleventh Five Year Plan
Annexure – I contd…..

18 Rehabilitation Council of India 0.0 3.00 4.7 3.00 3.00 3.0 3.00 3.00 3.0 3.0
19 Indian Spinal Injury 0.0 2.00 2.0 2.00 1.00 1.0 1.00 1.00 1.0 1.0
20 Employment of Physically Challenged 0.0 0.00 0.0 0.00 15.00 7.0 4.5 15.0 1.0 8.0
21 Financial Assistance to Women with Disability to 0.0 0.00 0.0 0.00 5.00 0.0 0.00 5.0 0.0 5.0
look after their children
Total - II 1906.8 289.0 290.9 240.4 335.0 325.0 253.9 343.0 248.9 646.0
Total - A 6993.0 1068.0 1054.1 993.1 1232.0 1334.0 1253.3 1192.0 1004.3 1642.0
B CENTRALLY SPONSORED SCHEMES (CSS)
22 Post-Matric Scholarships & Book Bank for SC 4082.0 625.0 825.0 875.1 750.0 636.0 645.5 750.0 1016.0 1700.0
Students
23 Pre-Matric Scholarships for Children of those 200.0 25.0 7.5 3.1 54.0 54.0 59.3 80.0 79.7 80.0
families engaged in Unclean Occupation
24 Hostels for SC and OBC Students. 580.0 88.0 98.0 87.8 130.0 128.8 118.8 135.0 51.1 175.0
25 Scheduled Caste Development Corporations 88.0 20.0 20.0 20.0 20.0 20.0 19.0 20.0 15.0 20.0
(SCDCs)
26 Coaching & Allied Scheme for SCs, OBCs & Other 115.0 7.0 7.0 3.9 8.0 6.0 4.0 8.0 2.8 10.0
Weaker Sections
27 Up-gradation of Merit of SC Students 10.0 1.0 2.0 1.2 2.0 2.0 1.8 2.0 2.0 4.0
28 Implementation of PCR Act, 1955 & SC/ST (POA) 10.0 40.0 40.4 39.1 40.0 44.0 43.0 43.0 68.7 59.0
Act, 1989
29 Merit based Scholarships for OBC
a Post-Matric Scholarship for OBCs 700.0 100.0 120.0 125.2 134.0 145.2 179.6 135.0 173.0 350.0
b Pre-Matric Scholarship for OBCs 265.0 25.0 25.0 25.0 30.0 30.0 32.2 30.0 31.9 50.0
30 Educational and Economic Development of -- -- -- -- -- -- -- 5.0 0.0 10.0
Denotified and Nomadic Tribes (DNTs)
31 Pradhan Mantri Adarsh Gram Yojana -- -- -- -- -- -- -- 100.0 4.0 400.0
32 Assistance to SC for pursuing study in Residential 0.0 1.0 1.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
School
Total-B 6050.0 932.0 1145.9 1180.3 1168.0 1066.0 1103.2 1308.0 1444.1 2858.0
Grand Total (A+B) 13043.0 2000.0 2200.0 2173.5 2400.0 2400.0 2356.5 2500.0 2448.3 4500.0
 Social Justice 207

Annexure – II
MINISTRY OF TRIBAL AFFAIRS - PLAN OUTLAYS AND EXPENDITURE
(Rs. Crore)

Sl. 11th Plan 2007-08 2008-09 2009-10 2010-11

No. (2007-12)
Schemes/Programmes
Outlay BE RE Expdr. BE RE Expdr. BE Expdr BE
Prov.
1 2 3 4 5 6 7 8 9 10 11 12
A CENTRAL SECTOR SCHEMES (CS)
Grant-in-Aid to NGOs for Coaching ST Students for Competitive
1 Exams 300.0 33.0 33.0 36.8 29.5 33.0 43.1 42.8 49.8 55.0
Vocational Training Centres in Tribal Areas
2 99.6 8.3 8.3 9.0 9.0 7.5 8.4 13.7 2.0 9.0
3 Educational Complexes in low Literacy Pockets 298.8 19.8 19.8 19.8 60.0 40.0 40.0 50.0 33.5 40.0
4 Investment in TRIFED and Price support 69.6 30.0 21.7 20.5 19.0 21.2 21.2 19.9 19.4 12.0
5 Grant-in-Aid to STDCs for MFP village Grain Banks 174.0 20.0 20.0 18.5 40.0 16.0 16.0 10.0 10.0 15.0
6 Development of Particularly Vulnerable Tribal Groups (PTGs) 670.0 40.0 58.4 57.9 173.0 189.0 192.1 155.0 83.6 185.0
7 Support to National ST Finance & Development Corporation 260.0 35.0 35.0 0.0 50.0 0.00 0.0 50.0 0.0
and GIA to State ST Dev. & Finance Corporation 70.0
8 Construction of Adivasi Bhavan in New Delhi 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Rajiv Gandhi National Fellowship for ST Students
9 150.0 26.0 26.0 26.0 29.0 29.0 31.0 42.0 30.0 75.0
10 National Overseas Scholarship 7.4 1.0 0.2 0.1 2.0 0.2 0.0 0.5 0.3 1.0
11 National Institute of Tribal Affairs (NITA) 0.0 1.0 1.0 0.0 0.0 0.0 0.0 0.0
12 Top Class Education 73.8 10.0 1.5 1.1 10.0 2.5 1.2 4.0 1.8 2.5
Total - A 2103.2 224.0 224.9 189.6 421.5 338.4 353.1 387.8 230.3 464.5
B CENTRALLY SPONSORED SCHEMES (CSS)
Scheme of PMS, Book Banks and Upgradation of Merit of ST
13 Students 1496.3 163.2 162.0 201.4 195.0 195.0 226.6 218.0 271.4 558.0
14 Scheme of Hostels for ST Students 273.0 34.5 34.5 37.0 61.0 60.0 65.0 59.0 64.0 78.0
15 Ashram Schools in TSP Areas 147.6 20.0 20.0 20.0 30.0 30.0 30.0 41.0 41.0 75.0
16 Research & Mass Education, Tribal festivals and Others 88.6 11.0 11.3 7.8 17.0 13.6 10.6 18.7 10.3 24.5
Total - B 2005.5 228.7 227.8 266.2 303.0 298.6 332.2 336.7 386.7 735.5
Sub - Total ( A+B ) 4108.6 452.7 452.7 455.8 724.5 637.0 685.3 724.5 617.0 1200.0
C SPECIAL CENRAL ASSISTANCE
17 Special Central Assistance to Tribal Sub-Plan * 0.0 816.7 816.7 678.3 900.0 860.5 780.9 1400.5 981.2 960.5
18 Grant under Article 275(1) of the Constitution * 0.0 400.0 400.0 390.3 416.0 392.0 339.8 1000.0 399.1 1046.0
Total - C 0.0 1216.7 1216.7 1068.5 1316.0 1252.5 1120.7 2400.5 1380.3 2006.5
Sub - Total ( A+B+C ) 4108.6 1669.4 1669.4 1524.3 2040.5 1889.5 1805.9 3125.0 1997.4 3206.5
D LUMP SUM PROVISION
19 North Eastern Areas 0.0 50.3 50.3 0.0 80.5 80.5 0.0 80.5 0.0 0.0
Grand Total (A+B+C+D) 4108.6 1719.7 1719.7 1524.3 2121.0 1970.0 1805.9 3205.5 1997.4 3206.5
* Allocation are made on year to year basis.
208 Mid-Term Appraisal of the Eleventh Five Year Plan

Annexure - III
MINISTRY OF MINORITY AFFAIRS – PLAN OUTLAYS AND EXPENDITURE
(Rs. Crore)
Sl. 11th Plan 2007-08 2008-09 2009-10 2010-11
No. Schemes/Programmes (2007-12)
Outlay BE RE Expdr. BE RE Expdr. BE Expdr. BE
1 2 3 4 5 6 7 8 9 10 11 12

A CENTRAL SECTOR SCHEMES (CS)

1 Grant-in-Aid to Maulana Azad Education 500 50 50 50 60 60 60 115 115 125
Foundation
2 National Minorities Development & Finance 500 70 70 70 75 75 75 125 125 115
Corporation
3 Free Coaching & Allied Schemes for Minorities 45 10 10 6 10 9 7 12 11 15
4 Research/Studies, monitoring & evalution of 35 6 12 10 5 9 8 13 12 22
development Schemes for Minorities including
publicity
5 Grant-in Aid to State Channelising Agencies 20 10 10 10 5 2 0 2 2 4
New Schemes
6 National Fellowship for Students from the Minority 0 0 0 0 0 0 0 15 15 30
community
7 Grants-in-aid to Central Wakf Council for 0 0 0 0 0 0 0 10 8 13
computerisation of records of State Wakf Boards
8 Scheme for Leadership development of Minority 0 0 0 0 0 0 0 8 0 15
Women
Total - A 1100 146 152 146 155 155 150 300 288 339
B CENTRALLY SPONSORED SCHEMES (CSS)
1 Merit-cum-Means scholarship for Professional 600 54 54 41 125 65 65 100 98 135
and Technical courses at undergraduate and
postgraduate
2 Pre-Matric Scholarships for Minorities 1400 80 10 0 80 80 62.31* 200 203 450
3 Post-Matric Scholarships for Minorities 1150 100 60 10 100 70 70.69* 150 149 265
4 Multi Sectoral Development Programme for 2750 120 74 0 540 280 270.96* 990 974 1400
Minorities in selected of Minority Concentration
Districts
Total - B 5900 354 198 50 845 495 469 1440 1422 2250
Grand Total ( A+B ) 7000 500 350 197 1000 650 619 1740 1711 2589
 9
Employment and Skill Development

9.1 The Eleventh Five Year Plan viewed, lakh persons to 92.7 lakh persons during the
the generation of productive and gainful same period. Employment in the organised
employment, with decent working conditions, on public sector remained stagnant at 180.1 lakh
a sufficient scale to absorb our growing labour persons.
force as a critical element in the strategy for
achieving inclusive growth. Specifically, the 9.3 The Labour Bureau of the Ministry of
Eleventh Plan (2007-12) aimed at generation of Labour & Employment (MOLE) has been
58 million work opportunities against the conducting quick employment surveys to
aggregate employment generation of 47 million assess the effect of economic slowdown on
work opportunities during the period 1999-2000 employment and the resulting job losses in
to 2004-05. The data on total employment India. So far, four quick quarterly employment
come from the results of the quinquennial surveys which focus especially on sectors
surveys conducted by the NSSO of which the where exports are important have been
last survey was for 2004-05. The next is for conducted. The first survey was conducted in
2009-10, the results of which will be available January 2009 to assess the impact during the
only in 2011. It is therefore not possible to quarter October-December, 2008. The second
provide reliable estimation at this stage of the survey was conducted in April, 2009 to assess
pace of employment creation beyond 2004-05. the impact during January-March, 2009. The
The assessment of performance on the third and the fourth surveys were conducted in
employment front in the Mid Term Assessment, July, 2009 and October, 2009 to asses the
therefore, has to be based on indirect impact of economic slowdown for the quarters
indicators, which have a bearing on April–June, 2009 and July-September, 2009
employment growth. respectively. The information in the latest
survey was collected from 2,873 units covering
IMPACT OF GLOBAL SLOWDOWN ON 21 centres spread across 11 States and Union
EMPLOYMENT Territories. Eight sectors namely textiles,
leather, metal, automobiles, gems & jewellery,
9.2 The global financial crisis, which transport, IT/BPO and handloom/powerloom
erupted in 2008 and led to a slowdown in the were covered in the latest survey. The results of
economy was bound to have an adverse effect these surveys are summarised in Table 9.1.
on the employment situation compared with
what would have prevailed under normal 9.4 Based on these small sample surveys,
circumstances. According to Economic Survey it was observed that during the first year since
2009-10, employment in the organised sector the emergence of the global economic
increased from 264.6 lakh persons in 2004-05 slowdown that is, September 2008 to
to 272.8 lakh persons in 2006-07 (i.e., an September 2009, consecutive quarters
increase of only 3.1 per cent). The entire witnessed job losses in the sectors surveyed
increase emanated from the organised private alternately with gain in subsequent surveys.
sector wherein the employment rose from 84.5 For the four quarters, as a whole, there was a
210 Mid-Term Appraisal of the Eleventh Five Year Plan

Table 9.1
Impact of Economic Slowdown on Employment
Sl. Industry/group Estimated Job loss/gain (in lakhs) during Net loss/gain
No. Dec 08 Mar 09 Jun 09 Sep 09 (in lakhs)
over Sep over Dec over Mar over during one
08 08 09 Jun 09 year(Sept.08-
Sept.09) {Col 3
+ Col 4 + Col 5
+ Col 6}
(1) (2) (3) (4) (5) (6) (7)
1. Mining -0.11 - - - -0.11
2. Textiles -1.72 2.08 -1.54 3.18 1.99
3. Leather - -0.33 0.07 -0.08 -0.34
4. Metals -1.06 -0.29 -0.01 0.65 -0.71
5. Automobiles -0.83 0.02 0.23 0.24 -0.34
6. Gems & Jewellery -0.99 0.33 -0.2 0.58 -0.28
7. Transport -0.96 -0.04 -0.01 0.00 -1.01
8. IT/BPO 0.76 0.92 -0.34 0.26 1.60
9. Handloom/ Power loom - 0.07 0.49 0.15 0.71
Total -4.91 2.76 -1.31 4.97 1.51

net gain of 1.51 lakh jobs. There were net job strategy included several schemes aimed
losses during the year in Mining, Leather, specifically at promoting employment, it would
Metals, Automobiles, Gems and Jewellery and be useful to review the contribution of specific
Transport which in the aggregate, were more employment-generation schemes and their
than compensated by net job gains in Textiles, impact.
IT/BPO and Handloom/Power loom sector.
Mahatma Gandhi National Rural
9.5 A major problem in assessing trends in Employment Guarantee Act (MGNREGA)
employment in India is the overwhelming
presence of the Informal Sector. At most, the 9.7 This scheme was launched on 2
percentage of workers (both regular and others) February, 2006 and was initially limited to 200
in the formal sector is about 13.69 per cent of of the most backward districts. It was expanded
the labour force. With non-regular employment to 330 districts in the second phase during
for the rest, variations in the demand for labour 2007-08. The remaining 266 districts were
are less likely to be reflected in the level of notified on 28 September, 2008, and the
employment than in wage or income earned. scheme has now been extended to all the
Low levels of income force people to remain districts of the country.
“employed” even if wage earnings or in the
case of self-employment, imputed wage 9.8 A detailed assessment of the
earnings fall. In this situation, focusing on the performance of the programme is given in
measured rate of employment has little chapter 12. The main points relevant for
economic significance since many people who employment generation are as follows. More
are technically employed may be under than 4.51 crore households were provided
considerable economic stress. employment in 2008-09, marking a significant
jump over the 3.39 crore households covered
EMPLOYMENT GENERATION UNDER under the scheme during 2007-08. Out of the
VARIOUS SCHEMES 216.32 crore mandays created under the
scheme during this period, 29 per cent and 25
9.6 While the bulk of the employment per cent were in favour of SC and ST
generated in the economy comes from the population respectively, while 48 per cent of the
normal growth process, since the employment total person days created went in favour of
 Employment and Skill Development 211

women. An allocation of Rs. 39,100 crore has amongst Urban Poor (STEP-UP) which targets
been made for MGNREGA in the Budget for the urban poor for imparting quality training so
2009-10 as against Rs. 16,000 crore in 2008- as to enhance their employability for self-
09. Under this scheme 3.98 crore man days employment or better salaried employment; (d)
employment has already been provided upto the Urban Wage Employment Programme
November, 2009. Moreover, as much as 49 per (UWEP) which seeks to assist the urban poor
cent of the employment created in 2009-10 by utilising their labour for construction of
(upto November 2009) has been in favour of socially and economically useful public assets,
women. in towns with less than 5 lakh population as per
the 1991 census; and (e) the Urban Community
Swarnjayanti Gram Swarozgar Yojana Development Network (UCDN) which seeks to
(SGSY) assist the urban poor in organising themselves
into self managed community structures to gain
9.9 This scheme was launched in April collective strength to address the issues of
1999 after restructuring the Integrated Rural poverty facing them and participate in effective
Development Programme (IRDP) and allied implementation of urban poverty alleviation
programmes. It is a self-employment programmes.
programme for the rural poor. The objective of
the SGSY is to bring the assisted swarozgaris 9.11 The scheme is being implemented on a
above the poverty line by providing them cost sharing basis between the Centre and
income generating assets through bank credit States in the ratio of 75:25. Budget allocation
and Government subsidy. The allocation of for the SJSRY scheme for 2009-10 is Rs
funds under SGSY is on the basis of existing 515.00 crore of which Rs 363.12 crore had
BPL families in the districts. The scheme is been utilised till 31 December 2009. In 2008-09,
being implemented on cost sharing basis of 1.8 lakh urban poor were assisted to set up
75:25 between the Centre and States other individual or group enterprises and 3 lakh
than North-Eastern States where the cost urban poor had been imparted skill training.
sharing is on 90:10 basis. Upto December, During 2009-10, (up to December 2009) 28,613
2009, 36.78 lakh Self-Help Groups (SHGs) had urban poor had been assisted in setting up
been formed and 132.81 lakh swarozgaris individual enterprises, 13,453 urban poor
assisted with a total outlay of Rs.30,896 crore. women had been assisted in setting up of group
enterprises, 27,463 urban poor women assisted
through a revolving fund for thrift and credit
Swarna Jayanti Shahari Rozgar Yojana
activities while skill training was provided to
(SJSRY)
85,185 urban poor
9.10 The scheme provides gainful LABOUR FORCE SKILLS AND TRAINING
employment to the urban unemployed and
underemployed poor, by encouraging the self- 9.12 Improved training and skill development
employment ventures by the urban poor and has to be a critical part of an employment
also by providing wage employment and strategy. Both Tenth and Eleventh Plan noted
utilising their labour for construction of socially the large gap between the number of new
and economically useful public assets. The entrants to the labour force and inadequate
Government has recently revamped the SJSRY availability of seats in vocational and
with effect from April1, 2009 and it has now five professional training institutes. The Eleventh
components: (a) the Urban Self-Employment Plan also identified various sectors with
Programme (USEP) which targets individual prospects for high growth in output, and for
urban poor for setting up of micro enterprises; generation of new employment opportunities.
(b) the Urban Women Self-Help Programme Accordingly, the Eleventh Five Year Plan
(UWSP) which targets urban poor women self- aimed, inter alia, at launching of a National Skill
help groups for setting up of group enterprises Development Mission which would bring about
and providing them assistance through a a paradigm change in handling of “Skill
revolving fund for thrift and credit activities; (c) Development” programmes and initiatives.
Skill Training for Employment Promotion
212 Mid-Term Appraisal of the Eleventh Five Year Plan

Subsequently, the Union Cabinet approved a review. The Council is chaired by the Prime
“Coordinated Action Plan for Skill Development” Minister with Ministers for Human Resource
which envisaged a target of 500 million skilled Development, Finance, Heavy industries, Rural
persons by the year 2022. Development, Housing and Urban Poverty
Alleviation and Labour & Employment as
9.13 A three tier institutional structure Members. Deputy Chairman, Planning
consisting of (i) the Prime Minister’s National Commission, Chairperson of the National
Council on Skill Development, (ii) National Skill Manufacturing Competitiveness Council,
Development Coordination Board and (iii) Chairperson of the National Skill Development
National Skill Development Corporation, has Corporation and six experts in the area of skill
already been set up to take forward the Skill development are the other Members.
Development Mission.
9.16 The PM’s National Council has
9.14 The following paragraphs will give an endorsed a Vision to create 500 million skilled
overall view and cover the important factors people by 2022 through skill systems which
leading to this paradigm shift as well as the must have high degree of inclusiveness in
future course of action in the field of skill terms of gender, rural/urban, organised /
development. The discussion here is structured unorganised and traditional/contemporary. The
around (a) the various activities carried out by Council will lay down overall broad policy
the three tier institutional structure responsible objective, financing and governance models
for laying the foundation of a skills ecosystem in and strategies relating to skill development;
India; and (b) the gaps in the evolving skills review the progress of scheme and guide mid-
ecosystem. course correction including addition and closure
of parts or whole of any particular programme
or scheme and; coordinate public /private

Box 9.1
Core Principles: PM’s National Council
• Government money must target market failure; there is no need to crowd out or compete
with private financing.
• Decentralise; encourage and incentivise States to form skill missions.
• Do not use money for buildings or hard assets.
• Focus on Modularity, open architecture and short term courses; do not reimburse for
courses more than six months.
• Separate financing from delivery; make public money available for private and public
delivery.
• Link financing to outcomes; the overwhelming metric should be jobs.
• Use candidates as financing vehicles rather than institutions; create choice and
competition.
• Create infrastructure for on-the-job-training; encourage apprenticeships.
• Create infrastructure for information asymmetry; publicise rating and outcome
information for training institutions.
• Infrastructure for effective entry/exit gate; effective assessment and credible certification;
• Restructure employment exchanges to career centres.

PM’s National Council on Skill Development: sectors initiative in a framework of a

collaborative action. The strategy to achieve
9.15 Prime Minister’s National Council on such skill systems will depend upon innovative
Skill Development has been setup as an apex mechanism for delivery through the Central
institution for policy advice, direction and Government, States, civil society, community
 Employment and Skill Development 213

leaders and public private partnerships. The operational guidelines and instructions for
Core Principles formulated by the PM’s National meeting the larger objectives of skill
Council on Skill Development are detailed in development. A State Skill Development
Box 9.1. Mission (SSDM) is also expected to be
established in each State. The various
National Skill Development Coordination functions, which are likely to be performed by
Board (NSDCB) the National Skill Development Coordination
9.17 National Skill Development Co- Board (NSDCB) are listed in Box 9.2.
ordination Board (NSDCB) has been set up
under the Chairmanship of Deputy Chairman,
Planning Commission, with Secretaries of 9.19 It was decided by NSDCB to set up five
Ministries of Human Resource Development, Sub Committees on (i) Re-orientation of the
Labour and Employment, Rural Development, curriculum for skill development on continuous
Housing and Urban Poverty Alleviation and basis, (ii) Evolving the vision on the status of
Finance as Members. Secretaries of four States vocational education and vocational training,
by rotation, for a period of two years, three (iii) Remodeling of Apprenticeship Training as
distinguished Academicians/Subject Area another mode for on the job training, (iv)
Specialists are the other Members. Secretary, Improvement in accreditation and certification
Planning Commission is the Member Secretary system and (v) Establishing institutional
of the Board. mechanism for providing access to information
of skill inventory and skill maps on real time
9.18 The Board is expected to enumerate basis. All the five Sub Committees have
strategies to implement the decisions of the submitted their reports.
Prime Minister’s National Council on Skill
Development and develop appropriate 9.20 The Central Ministries have also been

Box 9.2
NSDCB : Main Functions

• Enumerate strategies to implement the decisions of the Prime Minister’s National Council on Skill
Development and develop appropriate operational guidelines and instructions for meeting the
larger objectives of skill development of the country.
• Make appropriate and practical solutions and strategies to address the various concerns (regional
Imbalances , socio-economic, rural-urban, gender divides, dearth of quality teachers, Incentivising
private sector to develop skills etc. ), to be adopted by both the prongs – the Union and State
Governments as well as the National Skill Development Corporation – and also develop system of
institutionalising measures to this end.
• Encourage the State governments to put their activities in such structures that may be modelled
along similar lines or in any other way as deemed suitable by the State Governments.
• Assess skill deficits sector wise and region wise and plan action to bridge the gaps, and move
towards the establishment of a “National Skill Inventory” and another “National Database for Skill
Deficiency Mapping” on a national web portal.
• Coordinate and facilitate the repositioning of Employment Exchanges as Outreach points for
storing and providing information on employment and skill development, and to encourage them to
function as career counselling centres.
• Coordinate the establishment of a “Credible accreditation system” and a “guidance framework” for
all accrediting agencies.
• Monitor, evaluate and analyse the outcomes of the various schemes and programmes and apprise
the PM’s National Council on Skill Development of the same.
214 Mid-Term Appraisal of the Eleventh Five Year Plan

urged to have the relative performance of the areas, organisation structure and strategic
existing schemes evaluated so that the interventions in critical sectors of the economy.
Government could rework on withdrawal of Three major proposals, notably of the Gems
resources from non performing schemes so as and Jewellery Export Promotion Council,
to put them in the better performing schemes. It Confederation of Indian Industry and SEWA
was suggested that such a prioritisation which aim at providing skill training to about 23
exercise for all the schemes should be lakh people by the end of eight years with total
undertaken so that Skill Development System outlay of about Rs.246 crore have been given
underlining the paradigm shift could be an “in principle” approval.
financed. In this regard, the training capacity of
key Central Ministries was reviewed. In NATIONAL POLICY ON SKILL
addition, the status of the Skill Development DEVELOPMENT
Missions at the level of States and Union
Territories was extensively reviewed. The need 9.23 The formulation of a National Policy on
for complete, accurate and comprehensive Skill Development, and the launch of the
information was emphasised. It was reiterated Coordinated Action for Skill Development and
that the Government is committed to generate setting up of the Prime Minister’s National
more and better quality employment in a market Council on Skill Development and National Skill
friendly environment which puts a premium on Development Coordination Board (NSDCB)
skill upgradation. The progress of the State have been important and mutually supporting
Level Skill Development Missions in terms of initiatives. The Skill Development Policy
assessment of their capacity building needs provides an enabling environment and the
and identification of best practices is already in Council and the NSDCB provide a mechanism
progress. for implementation at the highest level. National
Policy on Skill Development also provides a
National Skill Development Corporation national policy response to guide formulation of
(NSDC) skill development strategies and coordinated
action by all concerned by addressing the
9.21 The third tier of the coordinated action various challenges in skill development:
on skill development is the NSDC which is a
non-profit company under the Companies Act • The size of the task in building a system of
with appropriate governance structure. As adequate capacity;
mandated by the National Policy on Skill
Development, NSDC will make periodic as well • Ensuring equitable access to all, in
as an annual report of its plans and activities particular, the youth, the disadvantaged groups,
and put them in the public domain. The the minorities, the poor, the women, people with
Corporation is expected to meet the disabilities, the dropouts, and those working in
expectations of the labour market including the unorganised sector;
requirements of the unorganised sector. • Reducing mismatch between supply and
demand of skills;
9.22 The Central Government has created a
National Skill Development Fund with an initial • Diversifying skill development programmes
corpus of Rs. 995.10 crore for supporting the to meet the changing requirements, particularly
activities of the Corporation. The corpus of the of emerging knowledge economy;
fund is expected to go up to about Rs. 15,000 • Ensuring quality and relevance of training;
crore as it is intended to garner capital from
Governments, the public and private sector, • Building true market place competencies
and bilateral & multilateral sources. NSDC has rather than mere qualifications;
been mandated to train about 150 million • Creating effective linkages between school
persons by 2022 under the National Skill education and skill development;
Development Policy. With a view to achieve this
target, a detailed plan of action has been • Providing mobility between education and
worked out indicating inter alia, the key focus training, different learning pathways to higher
 Employment and Skill Development 215

levels, and establishing a national qualifications • Governance of skill development system

framework; that promotes initiative, excellence, innovation,
autonomy, and participation, while ensuring that
• Providing opportunities for life-long learning
the legitimate interests of all beneficiaries are
for skill development;
protected;
• Promoting greater and active involvement
• Strengthening the physical and intellectual
of social partners and forging a strong,
resources available to the skill development
symbiotic, public-private partnership in skill
system; and
development;
• Mobilising adequate investments for
• Establishing institutional arrangements for
financing skill development sustainably
planning, quality assurance, and involvement of
stakeholders, coordination of skill development 9.24 In order to meet these challenges, the
across the country; National Policy on Skill Development has given
a framework, main highlights of which are

Box 9.3
National Skill Development System in India

Mission:
“National Skill Development Initiative will empower all individuals through improved skills,
knowledge, nationally and internationally recognised qualifications to gain access to decent
employment and ensure India’s competitiveness in the global market”.
Objectives:
• Create opportunities for all to acquire skills throughout life, and especially for youth, women and
disadvantaged groups.

• Promote commitment by all stakeholders to own skill development.

• Develop high-quality skilled workforce relevant to current and emerging market needs.

• Enable establishment of flexible delivery mechanisms that respond to the characteristics of a

wide range of needs of stakeholders.

• Enable effective coordination between different ministries, the Centre and States and public and
private providers.

Coverage:

• Institution-based skill development.

• Formal, informal apprenticeship and other training by enterprises .

• Training for self-employment/entrepreneurial development.

• Adult learning, retraining and lifelong learning.

• Non-formal training including training by civil society organisations.

• E-learning, web-based learning and distance learning.

216 Mid-Term Appraisal of the Eleventh Five Year Plan

presented in Box 9.3. the State Skill Development Missions. Twenty

one States and four Union Territories have
STATE SKILL DEVELOPMENT MISSIONS either set up State Skill Development Missions
or are in the process of setting up the same.
9.25 In line with the ”Coordinated Action on
Skill Development”, the State Governments Setting up of new ITIs and SDCs
were also requested to set up their own State
Skill Development Mission for skill development 9.26 As another step towards Skill
to address the specific problems of multiple Development Initiative, it is also proposed to set
interfaces with the States Governments in up 1,500 new Industrial Training Institutes (ITIs)
securing approval for both Central and State and also 50,000 Skill Development Centres
schemes relating to skill development. Table (SDCs), adding to the institutes that already
9.2 indicates the progress on the setting up of exist through Public Private Partnership (PPP).

Table 9.2
Status Report on Setting up of State Skill Development Missions
S. No. Name of the State Mission Headed By
1. Andhra Pradesh SSDM set up Chief Minster
2. Arunachal Pradesh SSDM set up Chief Minster
3 Assam SSDM set up Chief Minster
4. Bihar SSDM not set up
5. Chhattisgarh SSDM set up Chief Minster
6. Goa SSDM set up Chief Minister
7. Gujarat SSDM set up Principal Secretary, Education
8. Haryana SSDM set up Chief Secretary
9. Himachal Pradesh SSDM set up Chief Secretary
10. J&K SSDM set up Chief Minster
11. Jharkhand SSDM being set up
12. Karnataka SSDM set up Chief Minister
13. Kerala State Council for Skill Chief Minister
Development
14. Madhya Pradesh Council for Vocational education Chief Minister
& Training
15. Maharashtra SSDM not set up
16. Manipur SSDM set up Chief Minister
17. Meghalaya SSDM not set up ---
18. Mizoram SSDM not set up ---
19. Nagaland SSDM set up Chief Minister
20. Orissa High Powered Employment Chief Secretary
Mission
21. Punjab SSDM set up Chief Minister

22. Rajasthan Rajasthan Mission on Chief Minister

Livelihoods
23. Sikkim Directorate of Capacity Building Chief Minister
Set Up #
24. Tamil Nadu SSDM set up Deputy Chief Minister
25. Tripura SSDM being set up ---
26. Uttar Pradesh SSDM set up Chief Secretary
27. Uttrakhand SDM not set up ---
28. West Bengal SSDM set up Chief Minister

Union Territories
1. Chandigarh UT Level SDM not set up ---
2. Lakshadweep UT Level SDM set up Administrator, Lakshadweep
3. Pondicherry UT Level SDM not set up ---
4. A&N Islands UT Level SDM set up Secretary (labour)
5. D&N Haveli UT Level SDM not set up ---
6. Daman & Diu UT Level SDM set up Administrator, Daman & Diu as Chairman
7. Delhi UT Level SDM set up General Council headed by Chief Minister/Executive
Council headed by Chief Secretary
# The State has State Institute of Capicity building (SICN), setup in 2009.As per their communication (02-02-2010)
the SICB is in line with the SSDM
 Employment and Skill Development 217

These SDCs are to be set up by various Vocational Training Programmes

Ministries and Departments. The Ministry of
Labour & Employment has been given a target 9.29 Since Vocational Training is a subject
to set up 5,000 SDCs in Public Private on the Concurrent list, the Central Government
Partnership mode. These SDCs are proposed and State Governments share responsibilities.
to be set up in rural and difficult areas, border Director General of Employment & Training
areas and hilly areas in a cluster of about ten (DGE&T) under the Ministry of Labour and
villages at locations to be decided by the State Employment is the nodal department for
Governments. It is proposed to cover districts formulating policies, laying down standards,
unrepresented by ITI’s/ITC’s and then to cover curriculum development, trade testing and
unrepresented blocks. The proposal is still at an certification. At the State level, the State
early stage of implementation. Government Departments are responsible for
vocational training programmes. National
9.27 The SDCs are proposed to impart Council for Vocational Training (NCVT) and
training in short term modular courses in Central Apprenticeship Council (CAC) advise
demand driven trades of unorganised and the Government on formulation of policies and
service sectors such as banking and financial procedures, laying down the training standards,
services, health care, consumer and retail trade testing and certification at the national
sector, creative industry, logistics etc. Each level. Corresponding State Councils advise the
SDC will have an average training capacity of State government on policy and procedures.
about 300 persons per shift per annum. It is
proposed to run these SDCs in two shifts. 9.30 There are 8,039 Industrial Training
Accordingly, when all the 5,000 SDCs are made Institutes (ITIs) and Industrial Training Centers
operational about 30 lakh persons per annum (ITCs) imparting training in 114 engineering and
are likely to be benefitted. non-engineering trades. Of these, 2,133 are
State Government run ITIs while 5,906 are
9.28 Advanced Training Institutes (ATIs) private ITCs. The total seating capacity in these
which are under the administrative control of ITIs is 11.15 lakh. The courses conducted by
Directorate General of Employment and these institutes are open to those who have
Training, Ministry of Labour and Employment passed either Class VIII or X depending on the
are expected to train trainers in various trades trade and are of six months, one or two years
in order to meet the growing needs of trainers in duration, which varies from course to course. In
the country. There is also a proposal to set up addition to ITIs, there are six Advanced Training
11 Advanced Training Institutes (ATIs) in PPP Institutes (ATIs) run by the Central Government
mode during the Eleventh Five Year Plan. which provide training for instructors and two
Advanced Training Institutes for Electronics and
Process Instrumentation, offering long and
short term courses for training skilled personnel
at technician level in the fields of Industrial,
Medical and Consumer Electronics and

Box 9.4
ITIs / ITCs in the country

There were 5,114 ITIs/ITCs (1,896 – ITIs + 3,218 - ITCs) in the country with a seating capacity of 7.42
lakh (4.00 lakh in ITIs + 3.42 lakh in ITCs) as on 1st January, 2007. Since then there has been an
impressive increase in the number of such institutions in the country. As on 01.04.2010 there were
8,039 ITIs/ITCs (2,133 – ITIs + 5,906 – ITCs) with a seating capacity of 11.15 lakh (4.32 lakh ITIs +
6.83 lakh ITCs). The last three years have seen an increase of 2,925 ITIs/ITCs which was 57 Per cent
of the number of institutions set up in the first 60 years of Independence.
218 Mid-Term Appraisal of the Eleventh Five Year Plan

Process Instrumentation. Out of remaining 300 ITIs, 150 ITIs were

selected during 2007-08 and balance 150 ITIs
9.31 In the light of the mandate given to have been identified in 2008-09. The closing
NCVT through Cabinet approval of the National date for World Bank Project is December 2012.
Policy on Skill Development, the NCVT has
quickened the pace of review of the training 9.33 In addition to Upgradation of 400 ITI’s
courses so that they are in sync with the the project envisages Upgradation of 14 DGET
changing industry requirements and are institutes through World Bank Assistance under
demand driven. Table 9.3 gives details about Vocational Training Improvement Project
the deletion of various courses and introduction (VTIP). The pattern of funding involves cost
of new courses in line with the changing market sharing between the Central and State
conditions. This process of updating/deletion of Governments in the ratio of 75:25. In case of
the courses is a continuous process and is North Eastern States the ratio is 90:10. Central
based on the inputs from the industry. Government share of funding is through IDA
credit from the World Bank. The project has
Upgradation of ITIs three components: (i) Improving the Quality of
Vocational Training, (ii) Promoting Systemic
9.32 A scheme for Up-gradation of 500 ITIs
Reforms and Innovation and (iii) Project
into “Centers of Excellence (CoE)” in the
Management, and Monitoring and Evaluation.
country was announced in 2006-07.
State Level Project Implementation units
Subsequently, up-gradation of 100 ITIs was
manage the implementation of the scheme. The
taken up from domestic resources and 400 ITIs
project envisages upgradation of ITIs into
through World Bank assistance under
‘Centers of Excellence’ by providing
“Vocational Training Improvement Project
infrastructural facilities and introduction of multi-
(VTIP)” from 33 States and Union Territories.
skill courses to produce multi-skilled workforce
100 ITIs to be funded from domestic resources
of international standards. The highlights of
have been distributed in 22 States and Union
multi-skill courses are: (i) Introduction of Broad
Territories (other than J&K, Sikkim and NE
Based Basic Training of one year followed by
States). During Financial Year 2006-07, 100
six months of Advanced Modular training, (ii)
ITIs were taken up under retroactive financing.
Specialised modules mainly in industry (shop

Table 9.3
Status of Updation of NCVT Courses
Curricula Courses
No. of No. of New courses
revised deleted
S. Courses Courses introduced
Name of Scheme during during
No. covered covered in between
2002 to 2003 to
in 2003 2009 2003 to 2009
2009 2009
Craftsmen Training
66
1. Scheme 114 Trades 54 Trades 36Trades 7
Trades
(Conventional)
226
Modules in
Craftsmen Training
21 Sectors 226
2. Scheme (Multi 0 - -
(126 BBBT & Modules
Skill)
100
Advanced)
App. Training
3. 153 188 35 32
Scheme
Crafts Instructor
4. 30 30 67 modules 30
Training Scheme
Modular All new
5. 0 1108 1108 -
Employable Skill courses
Total 249 1666 1490 98 7
 Employment and Skill Development 219

floor training), (iii) multi-entry and exit provisions registered as a Society for upgrading the
and industry wise cluster approach, (iv) PPP in training infrastructure of 300 ITIs up to 31
the form of Institute Management Committee March 2010 on receipt of proposals from States
(IMCs) to ensure greater and active industry and Union Territories. Financial and academic
participation. autonomy has been granted to the IMCs to
manage the affairs of the ITI. The State
9.34 Under the project the State Government will retain the ownership of the ITI
Governments are required to enter into and will continue to regulate the admissions
Memorandum of Understanding (MoU) to and fees except that 20 percent of the
empower the Institute Management Committee admissions are to be determined by the IMC. A
(IMC) and enhance powers and commitments memorandum of agreement is signed with all
of the Principals of the ITIs for efficient project stakeholders.
implementation. The estimated Project cost is
Rs.1,581 crore out of which Rs.1,231 crore is 9.36 The total revised outlay of the scheme
Central share and Rs.350 crore the State is Rs.3,550 crore for the Eleventh Five Year
share. All 400 ITIs have been selected covering Plan. So far, an amount of Rs.282.5 crore as
33 States and Union Territories till November interest free loan has been released to 113 ITIs
2009 and a total of Rs. 665.98 crore has been and Rs.467.5 crore are expected to be released
released. Under the project, curricula of more to the remaining 187 ITIs by 31 March 2010.
than 226 modules covering 21 industrial sectors
have been developed and implemented. The Skill Development Initiative Scheme (SDIS)
progress of the scheme is monitored through
Joint Review and Learning Missions (JRLM) 9.37 The Skill Development Initiative
consisting of the representatives of the World Scheme (2007) aims at providing vocational
Bank, DGE&T, Ministry of Finance and other training to school leavers, existing workers, ITI
stakeholders including Planning Commission. graduates etc. to improve their employability by
optimally using the existing infrastructure
9.35 A scheme for upgradation of 1,396 available in Government, Private Institutions or
Government ITIs into “Centres of Excellence” Industry. Existing skills can be tested and
through Public Private Partnership (PPP) was certified under this scheme which primarily aims
announced in 2007-08. The scheme envisages at development of competency standards,
that an Industry Partner will be associated with course curricula, learning material and
each Government ITI to lead the process of assessment standards in the country.
upgradation. Under the Scheme, a Institute
Management Committee (IMC) will be 9.38 Since its inception, 5,203 Government /
constituted with Industry Partner or its private / other Vocational Training Providers
representative as its Chairperson and (VTPs) have been registered and 4,67,277

Box 9.5
SKILL DEVELOPMENT INITIATIVE (SDI)

SDI scheme was launched by the Ministry of Labour & Employment in 2007-08 with the objective
of meeting the growing requirement of skilled manpower of the industry through short-term
courses. In less than three years, 1,108 Modular Employable Skills (MES) course modules have
been developed covering 48 sectors of economy. The duration of these courses ranges from 60
hours to 960 hours and they are modular in nature so that a person can acquire skills, get
employed, come back to the institute and acquire another skill according to his or her liking and
the market requirement. The scheme has been very well received by the industry and youth.

5,203 (2574 Government, 1,241 ITCs and 1,396 others) Vocational Training Providers (VTPs)
have been empanelled from the private and public sectors and 22 independent Assessing Bodies
have been appointed to assess the competencies of the trainees trained by VTPs. So far
4,67,277 persons have been trained, tested and certified, out of which 2,42,191 have already
found employment.
220 Mid-Term Appraisal of the Eleventh Five Year Plan

persons have been trained, tested and certified Enterprises in the Unorganised Sector (based
along with the development of 1,108 course on data from NSSO 55th Round Survey), the
modules for employable skills covering 48 estimated total employment in the country
sectors. More than 2.42 lakh persons have during 1999-2000 was 396.8 million and among
found employment in the Financial Year 2009- them the estimated informal sector workers
10 (according to the data available till 12 were 342.6 million. The estimates of total
December, 2009) against the target of skilling employment and employment of informal sector
1.20 lakh persons. worker as per 61st Round Survey during 2004-
05 were 457.5 million and 394.9 million
9.39 DGET needs to examine the possibility respectively (Table 9.4).
of integrating occupational safety and health
learning objectives into the learning objectives
of various Modular Employable Skills (MES). Table 9.4
Formal Vs Informal Sector Employment
Modernisation of Employment Exchanges
(Million)
9.40 A Mission Mode Project (MMP) for NSS Round/ Total Informal Formal
upgradation and modernisation of the Year employment sector sector
Employment Exchanges was started in 2008. workers workers
The project will cover all the States and Union
Territories in one go and will encompass all
Employment Exchanges functioning across the 55th Round
(1999-00) 396.8 342.6 54.2
States and Union Territories. The MMP aims
to progressively support all the Employment
61st Round
Exchanges in the country under the
(2004-05) 457.5 394.9 62.6
administrative control of respective State
Governments and Administration of Union
Territories to make effective use of information Source : National Commission for Enterprises
technology in various activities of National in Unorganised Sector (NCEUS)
Employment Service operation. The project,
when fully implemented, is expected to help in
providing speedy and easy access to 9.42 It is time that the potential role of civil
employment services to job seekers and society groups and non-government
employers. organisations NGOs in supplementing the
efforts of the Public Sector is given due
Skill Development for the Unorganised recognition. In addition, serious thought needs
Sector to be given to the following: (a) Recognising
and formalising the informal apprenticeship
9.41 The unorganised sector consisting of arrangements in the unorganised sector which
own-account workers, workers and apprentices have been an important source of skill
in micro enterprises, unpaid family workers, development; (b) Improving and strengthening
casual labour, home-based workers, and the informal apprenticeship enabling their
migrant labour, out of school youth and adults transition into modern skill areas, if required; (c)
in need of skills, and farmers and artisans in Evolving and funding proactive partnerships
rural areas, among many others, is between the Government, Private Sector and
characterised largely by low skills, low NGOs through the National Skill Development
productivity and poor incomes. As illustrated in Corporation (NSDC).
the National Policy, Skill Development for the
unorganised sector has a great potential for Gaps in the Evolving Skills Ecosystem
ensuring that the growth process is highly
inclusive. However, the implementation of the 9.43 Gaps in the evolving skill ecosystem
policy for this sector remains a formidable which are required to be bridged towards
challenge. As per the National Commission for achieving the goal set out by the Prime Minister
Council include: (i) Absence of comprehensive
 Employment and Skill Development 221

and accurate data on number of individuals • The extent of functional autonomy to

trained through the various skill development institutes such as the ITIs needs to be
programmes; (ii) Absence of skills infrastructure enhanced to improve further the effectiveness
required to impart skills helping the youth to of Institute Management Committees (IMCs).
acquire employment in emerging sectors such
as information technology, bio-technology, • In the context of the ITIs, one finds that the
nano-technology, pharmaceuticals, alternative Public Works Departments (PWDs) in various
energy, and high-end construction & States are the only agencies in charge of
engineering, where opportunities are abundant creating necessary infrastructure. The
and wages attractive; (iii) Absence of continued possibility of strengthening the Institute
involvement of the industry in key actions of Management Committees so that they create
the ITIs such as revising ITI-syllabi, up-keep of necessary infrastructure on their own in a timely
infrastructure (e.g. machinery being utilised to manner could be explored.
teach students) in some States; (iv) Absence of 9.46 Financial Support to Skilling
an inclusive approach to have a concerted Programmes: A detailed exercise needs to be
strategy for imparting skills to large sections of conducted to compare India’s per capita
the population employed in the unorganised spending on a range of training with other
sector; (v) Absence of adequate resources and emerging economies in Asia and then to
resource focus. specifically focus on those sectors for skilling
for which funds from the private sector are not
9.44 Given these gaps in the evolving skills readily forthcoming.
ecosystem, several issues merit attention for
sharpening the implementation of various skill SOCIAL SECURITY
development programs:
9.47 An effective social security system is an
1) Implementation, Data Management and
important part of inclusiveness. With a growing
Assessment issues:
economy and active labour market policies, it is
• For ensuring effective implementation of an instrument for sustainable social and
existing programs, an implementation strategy economic development. It facilitates structural
and detailed implementation plan with and technological changes which require an
achievement targets and timelines would need adaptable and mobile labour force. With
to be put in place, in consultation with relevant globalisation and structural adjustment policies,
Ministries, State governments, and private social security assumes a renewed urgency.
sector groups. A clear indication of a
responsible agency or Ministry responsible for 9.48 The Government enacted the
implementing the policy would be important. “Unorganised Workers’ Social Security Act,
2008 and implemented various social security
• It is important that skill training provided is schemes. The Government has also constituted
of quality. In this respect, it is important to a National Social Security Board headed by the
create a labour market information Union Minister of Labour & Employment under
management system, which can be accessed the Unorganised Sector Workers’ Social
by industry as well as by other training centres Security Act, 2008 (Box.9.6)
to track information on skills availability and
skills gaps across training centres in India.
9.45 Issues in the realm of Public Private 9.49 The following initiatives are being taken
Partnerships (PPPs), ITIs and other institutional by the Ministry of Labour & Employment in the
formats: matter of social security:

• Capacity building of public officials is • Improving the delivery mechanism in the

required for skills training in ‘new economy’ Employee Provident Fund (EPF) Organisation
sectors such as biotechnology, nano- as well as the Employees’ State Insurance
technology, construction industry, oil and gas Corporation.
industry, etc. to nurture successful PPPs.
222 Mid-Term Appraisal of the Eleventh Five Year Plan

• Reducing the threshold limits for coverage 9.50 In this regard, the following issues may
of the Employee Provident Fund Organisation need attention:
and the Employees’ State Insurance
Corporation (ESIC) Schemes to extend the • There is a need for formulation of a policy

Box 9.6
The Unorganised Workers’ Social Security Act, 2008.
The salient features of the Act are as under:
Section (2) provides for the definitions, including those relating to unorganised worker, self-
employed and wage worker.·
Section 3(1) provides for formulation of schemes by the Central Government for different sections
of unorganised workers on matters relating to (a) life and disability cover; (b) health and maternity
benefits; (c) old age protection (d) any other benefit as may be determined by the Central
Government.
Section 3(4) provides formulation of schemes relating to provident fund, employment injury
benefits, housing, educational schemes for children, skill upgradation, funeral assistance and old-
age homes by the State Governments.
Section 4 relates to funding of the schemes formulated by the Central Government.
Section 5 envisages constitution of National Social Security Board under the chairmanship of the
Union Minister for Labour & Employment with Member Secretary and 34 nominated members
representing Members of Parliament, unorganised workers, employers of unorganised workers,
civil society, Central Ministries and the State Governments with provision for adequate
representation to persons belonging to the Scheduled Castes, the Scheduled Tribes, the minorities
and women. The functions of the National Board, inter alia, include: to recommend to the Central
Government suitable schemes for different sections of unorganised workers; monitor the
implementation of schemes and advise the Central Government on matters arising out of the
administration of the Act.
Section 6 has provision for constitution of similar Boards at the State level.
Section 7 relates to funding pattern of the schemes formulated by the State Governments.
Section 8 prescribes record keeping functions by the district administration. For this purpose, the
State Government may direct (a) the district panchayat in rural areas; and (b) the urban local
bodies in urban areas to perform such functions.
Section 9 provides for setting up of constitution of Workers’ Facilitation Centre to (i) disseminate
information on social security schemes available to them, and (ii) facilitate the workers to obtain
registration from district administration and enrolment of unorganised workers.

application of the schemes to establishments for social security with a focus on clearly
employing ten persons or more. defined objectives, techniques to be adopted for
providing social security to the different target
• Improving the returns on investment of the
groups and financing and administrative
balances in the Provident Fund.
arrangements;
• Reform of the Maternity Benefit Act.
• Wider coverage of beneficiaries under the
• Implementation of the Unorganised EPF Act and ESI Act;
Workers Social Security Act, 2008.
 Employment and Skill Development 223

• Further extension of social security net to Standards (Box 9.7) on occupation safety and
the unorganised sector; health.
• Efficacious implementation of provisions of 9.54 Ministry of Labour and Employment
Construction Workers Act. which is solely responsible for safety, health
Other Social Security Schemes and welfare measures concerning dock, mines
and oilfields receives technical assistance from,
9.51 Rashtriya Swasthya Bima Yojana and discharges its responsibility through
(RSBY): The Rashtriya Swasthya Bima Yojana Directorate General of Mines Safety (DGMS)
was launched on 1 October 2007, providing for and the Directorate General of Factory Advice
smart card based health insurance cover of Rs. Service & Labour Institutes (DGFASLI). The
30,000 per annum per family on a family floater DGMS enforces the safety and health
basis to BPL families (a unit of five) in the provisions for the workers in the mining industry
unorganised sector. Till 26 February 2010, 27 through its inspectors appointed under the
States and Union Territories have initiated the Mines Act, 1952. The DGFASLI, through its
process to implement the scheme. Of these, 23 Inspectorate of Dock Safety, enforces safety
States and Union Territories have started provisions in the Docks and acts as the
issuing smart cards and more than 1.27 crore coordinating agency at the national level for the
cards have been issued. Nagaland is the first Inspectorate of Factories functioning under
State in the Northeastern region to issue smart different State Governments.
cards. Remaining States except Andhra
Pradesh are also in the process of 9.55 The Government has in February, 2009
implementing the scheme. The government has prepared a Comprehensive National Policy on
extended the benefits of RSBY to all such Safety, Health and Environment at Workplace
Mahatma Gandhi NREGA beneficiaries who after intensive and wide consultations and
have worked for more than 15 days during the deliberations with all the stakeholders. The
preceding financial year and to all licensed Policy provides broad guidelines and the
porters, vendors and hawkers, who are from the required direction to the Government,
unorganised sector and are socially challenged employees and employer organisations
from the year 2010-11. including non-governmental agencies for
promotion of Occupational Safety and Health
9.52 Aam Admi Bima Yojana (AABY): (OSH) in the country. The policy is
Under AABY, a scheme launched on October 2, comprehensive in nature and consists of
2007, insurance to the head of the family of Preamble, Goals, Objectives, and Action
rural landless households in the country will be Programme. Some of the salient features of the
provided against natural death as well as policy include development of appropriate
accidental death and in the case of partial or standards and codes of practices on OSH,
permanent disability. Up to 2009, the scheme cooperation of social partners to meet the
has covered 81.99 lakh lives. challenges ahead, developing sector specific
programmes, creation of nationwide awareness
Occupation Safety & Health of Workers and arranging for the mobilisation of available
resources and expertise, financial & non
9.53 Occupational Safety and Health aspect financial incentives to the employers and
have assumed an even greater importance in employees for the promotion of the
the liberalised economic framework. Due to commitment.
proliferation and increase in severity of
hazardous economic activities, the Government 9.56 In order to improve the Occupational
objective is to keep pace with the International Safety and Health regime several issues merit
attention:
224 Mid-Term Appraisal of the Eleventh Five Year Plan

Box 9.7
ILO Conventions and Recommendations on Safety and Health Standard

• One of the key functions of the International Labour Organisation (ILO) from its inception has
been the establishment of international standards on labour and social matters. These
international labour standards take the form of Conventions and Recommendations. About 70 of
them deal with occupational safety and health matters.
• In addition to the ILO Conventions and Recommendations dealing with occupational safety and
health matters, further guidance is provided in Codes of Practice and Manuals which are used as
reference material by those in charge of formulating detailed regulations or responsible for
occupational safety and health.
• In some cases other instruments like resolutions have been introduced to address a certain
problem.
• Occupational safety and health standards broadly fall into four categories:
Guiding policies for action;
Protection in given branches of economic activity: e.g. construction industry, commerce and offices
and dock work;
Protection against specific risks: e.g. ionising radiation, benzene, asbestos, guarding of machinery;
Measures of protection: e.g. medical examinations of young workers, maximum weight of loads to
be transported by a single worker, prevention of occupational accidents on board ship, prevention of
occupational cancer, prevention of air pollution, noise and vibration in the working environment.

• India does not have an overarching law on prevention, treatment and compensation for
occupational safety and health covering all such diseases.
sectors of the economy that would make it
• A comprehensive review of reporting
obligatory for all employers to observe
system of all accidents and collection of data
occupational safety standards. In this regard,
relating to occupational injuries and diseases in
the need for an umbrella legislation covering
all sectors of the economy is called for.
different statutes of OSH in the context of the
new National Policy on Safety, Health and WOMEN LABOUR
Environment, may have to be explored. The
proposal could be revived in the context of the 9.57 The participation of women in the labour
National Policy on Safety, Health and market in India has been growing steadily in
Environment. recent years. In fact, their increasing
participation is seen as a key factor in
• Several new chemicals have come to in development policies, plans and programmes
production process whose hazardous effects aimed at women’s advancement in different
are not known, as yet. There is an urgent need spheres. Many women are working as home
to circulate information relating to the health based workers, in beedi, garments, zari,
hazards of these chemicals so that proper agarbatti making, kite making, food processing,
preventive steps can be taken. It is also leaf plate making etc. In most of these cases,
necessary that periodical surveys are carried the employer employee relationship is masked,
out in respect of all the occupational diseases which in some cases tends dilute their access
(as required in the relevant ILO Conventions) to protection in terms of wages or working
and appropriate action is taken for their conditions. The Unorganised Workers’ Social
 Employment and Skill Development 225

Security Act makes some existing welfare programme, with the amalgamation of the
schemes applicable to the unorganised schools under the INDUS Project (a joint project
workers, with schemes such as the Janani of Government of India and US Department of
Suraksha Yojana specifically covering women. Labour) in 2009, 271 districts in 21 States are
But most of these schemes are only limited to now covered under the NCLP programme. Till
the BPL category, thus a excluding vast date 6.07 lakh children from NCLP schools
majority of the unorganised workers, including have been mainstreamed into the formal
working women. The possibility of removing the education system.
BPL criterion to ensure wider coverage of the
unorganised sector workers needs to be 9.62 The problem however, has persisted
explored. since educational rehabilitation of these
children needs to be supplemented with
CHILD LABOUR economic rehabilitation of their families, so that
these families are not compelled by their
9.58 In spite of several legislations and economic circumstances to send these children
policies, the problem of child labour has to work. It also has to be recognised that even
persisted as one of the greatest challenges if schools exist, most child labour cannot avail
facing the country. As per the Child Labour of the benefits as they cannot go into a class
(Prohibition and Regulation) Act, 1986, ‘child’ that is age appropriate. Therefore, proactive
means a person who has not completed his 14th measures are needed towards convergence
year of age and is employed in hazardous between the schemes of various Ministries, like
occupations (16) and processes (65) listed the Ministry of Women & Child Development,
under the Act. Ministry of Human Resource Development,
Ministry of Rural Development, Panchayati Raj
• No. of working children and Social Justice and Empowerment so that
as per 1981 Census :1.36 crore the prevailing isolated approach is
supplemented with benefits under the various
• No. of working children schemes of these Ministries for the families of
as per 1991 census :1.13 crore child labour. As a first step towards
• No. of working children convergence, with initiative from Planning
as per 2001 census :1.26 crore Commission, mid-day meals have been now
made available to children enrolled in the NCLP
9.59 Out of 1.26 crore working children, schools as provided to children under the Sarva
approximately 12 lakh children are working in Shiksha Abhiyan (SSA).
hazardous occupations or processes.
[However, since the number of processes and 9.63 A Core Group under the Chairmanship
occupations in the list has expanded over time, of the Union Labour Secretary has been formed
the actual number is likely to be more] for convergence on a sustained national basis.
In particular, institutional convergence
9.60 In consonance with National Policy on mechanism at the national level as well as the
Child Labour, Ministry of Labour and State level, specifically dovetailing Sarva
Employment had formulated a project based Shiksha Abhiyan (SSA) and Integrated Child
Action Plan, i.e., National Child Labour Project Development Scheme (ICDS) needs to be
(NCLP) to eliminate child labour from developed. It is important to put in place
hazardous occupations and processes in a institutional structures to ensure appropriate
sequential manner. The NCLP scheme dates implementation of protocols developed by the
back to 1988 and aims to withdraw the children Ministry of Labour and Employment. The
engaged in hazardous occupations and weakest link appears to be the institutional
processes by rehabilitating them in special structure in State Governments for rehabilitation
schools in order to enable them finally to be of migrated child labour rescued from urban
mainstreamed into the formal schooling system. megapolises and/or industrial belts. There is,
therefore, a need to take the National Child
9.61 While 250 districts in 21 States were Labour Programme (NCLP) forward after
covered earlier under in the NCLPs
226 Mid-Term Appraisal of the Eleventh Five Year Plan

convergence, and such a programme could Rs.1,280.22 crore which was met through
then be taken up under a Mission Mode, supplementary provisions. Similarly, an
especially for female child labour. allocation of Rs.771.50 crore (excluding CW of
Rs.28.50 crore which was transferred to the
9.64 In addition to convergence, other Ministry of Urban Development), was made
recommendations for mid course corrections during the second year of the Eleventh Plan i.e,
include: 2008-09. This was enhanced to Rs. 1,426.00
crore at the RE stage. Against this, the
• Setting up area-specific residential schools expenditure was Rs 1388 crore which was
for child labour; again met through supplementary provisions.
The detailed outlays are given in Annexure 9.1.
• Formulating key standard curriculum and
learning materials in vernacular for the NCLP Way forward
schools to make learning a joyful and enriching
experience for these children; 9.66 Though India has demonstrated
• Training and monitoring of child labour and remarkable resilience during the unprecedented
ensuring validation of these data by Panchayati global financial crisis and slowdown, its labour
Raj institutions; and employment sector faces several
challenges which need short term as well as
• Continued emphasis on large scale public medium term policy interventions at the level of
awareness on a sustained basis; States as well as the Centre.
• Setting up of specific guidelines for
utilisation of the Child Labour Rehabilitation – 9.67 Labour market policies are based on a
cum - Welfare Fund collected through large number of statutes enacted by the Central
contribution of Rs.20,000 each paid by Government dealing with wages, social
offending employers in consonance with the security, labour welfare, occupational safety
Supreme Court order in Writ Petition (Civil) and health besides industrial relations. There is
No.465/1986. Amounts collected so far have a felt need for reforms in several of these labour
remained unutilised since no clear guidelines laws with a view to impart the much-needed
from Ministry of Labour & Employment have labour market flexibility consistent with the
been issued. transformation of the Indian economy since
these laws were enacted. Reforms in labour
• Protocols developed by Ministry of Labour laws would involve enabling provisions to
need to be revised, so that the State Labour increase production, productivity and expanding
Departments can independently conduct raids employment opportunities while protecting the
for rescue of child labour and their overall interest of labour.
rehabilitation. This is because the Police
Department often treats child labour as a low 9.68 As pointed out in the National Policy on
priority area. Skill Development, Skill Development for the
unorganised sector has a great potential for
PLAN OUTLAY AND ITS UTILISATION ensuring that the growth process becomes
inclusive. In the specific context of skill
9.65 During the Eleventh Five Year Plan requirements of this sector, the Ministries
(2007-12), an allocation of Rs.2,210.02 crore concerned need to give serious thought to: (i)
(at 2006-07 prices) was made for the Plan Recognising and formalising the informal
Schemes of the Ministry of Labour & apprenticeship arrangements; (ii) Improving and
Employment. Against this, during the first year strengthening the informal apprenticeship
of the Eleventh Plan i.e, 2007-08, the Ministry enabling their transition into modern skill areas,
was allocated Rs.325.48 crore (excluding CW if required; (iii) Evolving and funding proactive
of Rs.19.52 crore which was transferred to the partnerships between the Government, Private
Ministry of Urban Development). This was later Sector and NGOs through the National Skill
increased to Rs.1,250.00 crore at the RE stage. Development Corporation (NSDC).
The actual expenditure, however, was
 Employment and Skill Development 227

9.69 The three tier institutional structure on with the changing industry and market
Skill Development firmly put in place during the requirements. They should also examine the
Eleventh Plan period needs to bridge the possibility of integrating occupational safety and
various gaps in the evolving skill ecosystem health learning objectives into the learning
which involve interventions on various fronts objectives of various Modular Employable Skills
such as: (MES).

i. Building comprehensive and accurate data 9.71 With technological progress and
on number of individuals trained as a result changing production techniques, several new
of various skill development programmes; chemicals have come to in production process
whose hazardous effects are not yet known.
ii. Focussing on skills infrastructure required
There is an urgent need to compile and
to impart skills helping the youth to acquire
circulate information relating to the health
employment in emerging sectors such as
hazards of these chemicals so that proper
information technology, biotechnology,
preventive steps can be taken. It is also
nanotechnology, pharmaceuticals,
necessary that periodical surveys are to be
alternative energy, and high-end
carried out in respect of all the occupational
construction & engineering, where
diseases with the aim of sensitising various
opportunities are abundant and wages
stakeholders about the need to minimise the
attractive;
harmful effects on human flora and fauna.
iii. Institutionalising more proactive industry Comprehensive review of reporting system of
involvement in key actions of the training all accidents and collation of data relating to
institutes such as ITIs; occupational injuries and diseases in all sectors
of the economy would go a long way in focusing
iv. Ensuring an inclusive approach to have a
on occupational health and safety issues.
concerted strategy for imparting skills to
large sections of the population employed in
9.72 The coverage of various Social Security
the unorganised sector;
schemes in the labour and employment sector
v. Providing adequate resources focus. The needs to be enlarged for ensuring higher
Central Ministries should have relative degree of inclusivity. The possibility of
performance of the existing schemes improvements in the coverage through
evaluated so that the Government could revisiting the eligibility criteria such as removing
think of withdrawing resources from non the BPL criterion needs to be examined.
performing or relatively poor performing Moreover, creation of awareness about various
schemes and allocate them to the better programmes through the appropriate
performing ones. Such a prioritisation communication strategies needs to be accorded
exercise for all the schemes (Central as higher priority.
well as States) should be undertaken to
augment the flow of funds to the 9.73 Child Labour has been a persistent
“Coordinated action on Skill Development”. problem in the Indian context and has existed
despite the formulation of numerous legislations
vi. Ministries (like MHRD, Ministry of Finance,
and policies. A comprehensive third party
Ministry of Labour & Employment etc,.)
evaluation of the NCLP in various States needs
responsible for overseeing various
to be carried out to configure and remove the
segments of Skill Development Mission
weak links present in the implementation of
need to work under a converged mandate,
National Child Labour Programme.
the policy framework for such convergence
Convergence of schemes in a proactive and a
is being forged by the Planning
sustained manner of programmes for families of
Commission.
child labour and ultimately bringing this
9.70 The National Council for Vocational convergence into a Mission mode can go a long
Education and Training should accelerate the way in effectively addressing the problem of
pace of review of the training courses so that child labour.
they remain demand driven and hence in sync
 228 Mid-Term Appraisal Eleventh Five Year Plan

ANNEXURE 9.1

Plan Provision and Expenditure

(Rs crore)
th
11 Plan Annual Plan Annual Plan Annual Plan
Sl. Annual Plan
Name of the Outlay 2007-08 2008-09 2009-10
No 2010-11
Scheme (2007-12)
RE Exp. RE Exp. BE* Exp. BE
1 DGE&T 828.17 1,031.17 1,086.32 941.32 1,083.83 1,134.17 1,118.96 409.11#
2 Occupational Health 56.45 6.62 5.93 16.47 12.47 15.09 13.68 22.36
& Safety(DGMS &
DGFASLI)
3 Industrial Relations 41.38 5.81 5.40 8.43 7.14 6.50 7.47 11.91

4 Child Labour 579.16 152.55 155.91 146.63 157.81 100.00 95.28 135.00
5 Women Labour 2.40 0.51 0.38 0.00 0.00 0.00 0.00 0.00
(merged with
scheme No 11 from
2008-09)
6 Labour Statistics 38.02 5.59 8.41 8.32 8.00 9.00 9.22 20.28
7 National Labour 22.10 4.50 5.00 4.50 5.00 5.00 3.92 4.50
Institute(NLI)
8 Grants-in-aid 1.33 0.15 0.15 0.75 0.29 0.50 0.33 0.75
Scheme for
Research Studies
9 Workers’ Education 44.21 7.90 9.30 8.00 9.50 9.00 9.00 9.50
10 Rehabilitation of 13.26 1.50 1.09 1.00 1.20 1.00 0.88 1.00
Bonded Labour
11 Information 8.84 1.50 1.57 1.50 1.50 0.50 0.50 0.75
Technology
12 Social Security for 574.70 1.25 0.76 203.98 101.65 350.00 264.51 350.00
unorganised Sector
Workers and Health
Insurance for
unorganised Sector
Workers
13 Lump sum provision 26.50 85.10 (90.00)@ NA 100.00@
for NE
TOTAL 2,210.02 1250.00 1,280.22 1,426.00 1,388.39 1,630.76** 1,523.75 965.16
(+CW15.95) (+CW19.25)
N.B. 1. CW stands for Civil Works component which is transferred to M/O Urban Development.
**This also includes the following two:
(i) Rs.100 crore provided to RSBY, and
(ii) Rs 750.01 crore provided for 1396 Govt. ITIs through PPP on Vote of Account during 2009-10.
* This does not include the following civil components:-
i) DGE&T - 14.25 crore, ii) Industrial Relations -1.50 crore, iii) Labour bureau -1.00 crore & iv) DGMS& DGFASLI -
2.50 crore
$ This does not include the following civil components:-
(i) DGE&T – 15.75 crore, (ii) DGMS & DGFASLI - 16.00 crore, (iii) Indl Relations – 2.09 crore & (iv) Labour Bureau –
1.00 crore
# This does not include Rs. 750.00 crore provided by M/o Finance for upgradation of 1396 Govt. ITIs and civil work
components of Rs. 15.75 crore.
@This amount has been included in different schemes
 10
Handloom and Handicrafts
Overview measures like Health Insurance have been
introduced to enhance the quality of life of our
10.1. The dispersed and decentralised craftspeople. The emphasis has been on the
handloom and handicrafts sector embodies the cluster approach. Two and half years into the
traditional wisdom, cultural wealth and secular Plan, these efforts are clearly visible, at least in
ethos of our country. It is not just a source of the handloom sector and have been discussed
livelihood for 130 lakh weavers and artisans, in detail later in this chapter. The Handloom
but also an environment friendly, energy saving Weavers Comprehensive Scheme that provides
form of art that has secured India’s presence in life and health insurance has become
millions of homes across the globe; a presence increasingly popular and has provided the much
that has been crafted by dexterous hands, needed access to healthcare for the weavers
many of whom are among the most and their families. The performance of the
marginalised sections of our society. The cluster scheme has been slower, but change is
Handloom and Handicraft sectors make a beginning to take place at the micro level.
valuable contribution to our economy; they also However, the pace and extent of this change is
have the potential to play a much bigger role, too small to be visible at the macro level. In the
given the right environment. The Eleventh Plan remaining years of the Eleventh Plan it is vital
recognises this but unfortunately, two and half to formulate a comprehensive policy that
years into the plan the policy interventions addresses issues like anti-dumping duty on silk
required to promote these sectors need to be yarn, distinction between handlooms and
much stronger. This is cause for concern. handicrafts, VAT, preferential procurement etc.
Unless backed by supportive policies, our At the same time, new interventions like the
programmatic interventions will do little to Pension Scheme, Thrift Fund, special
change the reality of the lives of our weavers measures for Minority groups and women, as
and artisans. promised in the Eleventh Plan need to be
launched.
10.2. Currently, 60.6 per cent of our weavers
are women and 36 per cent belong to the Eleventh Plan at a Glance
Scheduled Caste and Scheduled Tribes.
Similarly, of the 67 lakhs artisans in rural and 10.4. Recognising the need to focus on both
semi urban areas, 47.42 per cent are women, the art and the artisans, the Eleventh Plan
23 per cent belong to religious minorities, 12.38 advocated a two pronged approach for ensuring
per cent are STs and 24.73 per cent SCs. The the growth of the Handloom and Handicraft
Eleventh Plan recognizes this. It also sector. It talked of the need for policy
acknowledges the deprivation and destitution interventions backed by suitable programmatic
faced by our skilled craftspeople and interventions. The salient features of the Plan,
emphasises the need to secure a future, both its approach, monitorable targets, and
for the art and the artisans. interventions suggested are summarised in Box
10.1.
10.3. Many of the old schemes have been
revised, enhanced and clubbed together. New
230 Mid-Term Appraisal of the Eleventh Five Year Plan

Mid-Term Appraisal: The Process official documents and other reports were
received and discussion and assessment
10.5. To review the commitments and make a meetings were held with nodal departments of
balanced assessment of the progress made in the implementing Ministries as well as the State
the Eleventh Plan sectoral data was analysed, departments dealing with the subject. A

Table 10.1
Performance of Handlooms & Handicrafts Sector during the 11th Five Year Plan
Item 2006-07 2007-08 2008-09 2009-10 (P)
(end of 10th Plan)
Handloom Cloth production (million sq m) 6,536 6,947 6,677 (P) 6,788
Handicrafts Production (Rs. Crore) 38,660 31,940 19,376 20,221.5
Employment (lakh persons) Handicrafts 67.69 69.72 71.81 73.96
Handicrafts Export (Rs. Crore) 20,963 17,536 10,891 11,224.27
Source: Offices of the Development Commissioner (Handlooms, Handicrafts), Ministry of Textiles.

Box: 10.1
ELEVENTH PLAN AT A GLANCE
The Approach
• MSEs are instruments of inclusion
• Handlooms and Handicrafts are capital saving, labour intensive engines of economic growth
• Recognize the heterogeneity and differential needs of the MSE sector
• Remove the artificial distinctions within the sector to ensure that handlooms, handicrafts can avail the
benefits and schemes launched for industry in general and MSE in particular.
• Move from competitive to complimentary relationships between various sectors like Handlooms, Handicrafts,
Powerlooms, Silk etc
• Focus on the crafts as well as craftspeople.
Monitorable Targets:
• Double the production of Handicrafts from Rs. 43,600 crore in 2007- 08 to Rs. 90,412 crore in 2011-12
• Double the exports of Handicrafts from Rs 23,400 crores in 2007-08 to Rs. 48,522 crore in 2011-12
• Create 11 lakh additional jobs in Handicrafts sector.
• Export Target of Rs 500 crore and credit flow of Rs 150 cr for NER for handicrafts sector.
• Handloom exports to grow at 15 per cent per annum and Rs. 10,000 crore by the end of the plan.
Financial Allocation:
• Outlay for Handlooms: Rs 1370 crores
• Outlay for Handicrafts: Rs.975 crores
Policy Interventions:
• Position Handlooms and Handicrafts as a value added niche product.
• Preferential procurement by the Government Institutions
• Recognize the urban presence of Handlooms and Handicrafts and ensure that the needs of these sectors are
taken into account in urban and rural planning.
• Balance Productivity Gains with interests of producers while looking at Labour laws
• Examine the anti dumping duty on Chinese silk yarn and silk cloth
• Draft a policy on export of cotton yarn.
• Put in place instruments to ensure availability of credit and working capital
Programmatic Interventions:
• Cluster based approach: Organisation of over 36.88 lakh weavers into handloom clusters; 375 new
artisanal clusters covering 4 lakh artisans
• Quality Control, Marketing and Promotion: Branding of products and launching a widespread publicity
campaign backed by style icons.
• Preservation of Knowledge: Creating a Heritage library documenting traditional designs and weaves.
• Census: Carrying out a census and a mapping exercise to determine the presence of crafts and craftspeople
across the country, along with their skills. Issue of photo id cards to weavers and artisans.
• Availability of Working Capital and Credit
• Availability of Raw material: Creating raw material banks and ensuring timely availability of raw materials to
individual weavers and artisans at reasonable prices.
• Social Security: Launching Health and Life insurance schemes with components like education to improve
the quality of life of weavers and artisans. To cover 83.92 lakh weavers/allied workers and 40.80 lakh
artisans. Launching schemes for Distress Relief, Pension and Thrift Fund.
• Technology upgradation and transfer of knowledge to weavers and artisans
 Handloom and Handicrafts 231

Consultative Group of Experts for Handloom people, most of other schemes do not show a
and Handicrafts Sectors was constituted with similar progress.
representatives from NGOs, Chambers of
Commerce & Industry, Export Promotion 10.8. For the Handicraft sector Rs.975 crores
Councils, Financing Institutions etc. In addition has been allocated and the expenditure till 31
to all this, it was decided to listen to ‘Voices March 2010 has been Rs.579.51 crore.
from the Field’. Given the Plan’s focus on
inclusiveness, concerns of SC/ST and 10.9. After two and half years, many schemes
minorities, women’s groups, elderly and others like the Pension Scheme and the Thrift Fund
belonging to the marginalised sections of the are yet to take off. The promise of making credit
society were heard. Five regional consultations and working capital available also remains
were held; at Guwahati for North-Eastern partially fulfilled. Progress on census and
States, Jaipur for Western States, mapping is tardy and we have not been able to
Bhubaneswar for Eastern States, Chandigarh create a viable brand for hand crafted products.
for Northern States and Bangalore for Southern
States. In preparation of the regional 10.10. At the same time there are examples of
consultations, state level consultations were visible progress in these sectors. Despite some
organised by national level NGOs working complaints of corruption and access, the
directly with the poor. These fed into the schemes for providing social security to the
regional consultations. weavers and artisans were praised in all our
regional consultations. In addition, there is
10.6. As the Plan had emphasised the awareness, albeit limited, about the cluster
Cluster approach, a study of two clusters under schemes. At the micro level therefore one
the new Integrated Handloom Development notices some stirrings but given the fast
Scheme was commissioned. The Crafts Revival deteriorating condition of the artisans and
Trust, New Delhi visited and studied the weavers, more progress needs to be made.
clusters at Varanasi (U.P.) and Chirala, near
Vijayawada in Andhra Pradesh and the findings 10.11. At the macro level, the picture of
of their report have been taken cognisance of in production reveals negative features,
this appraisal. production in the handicrafts sector has
dropped from Rs. 38,660 crore in 2006 - 07 to
Progress Thus Far almost half in 2008-09. In large parts, it is
because of the set back to exports due to the
10.7. During the Eleventh Plan period, 12 global crisis. Exports have declined from Rs.
schemes of the Tenth Five Year Plan for the 20,963 crore in 2006-07 to Rs. 10,891 crore in
handloom sector have been merged into five 2008-09. For carpets, the decline has been 23
namely i) the Integrated Handloom per cent on year to year basis in 2008-09.
Development scheme (IHDS) ii) Handloom Difficulties in the export market aside, there are
Weavers Comprehensive Development problems of getting adequate labour, as both
Scheme iii) Marketing and Export Promotion local labour (east UP) and migrant labour
Scheme, iv) Diversified Handloom Development (Orissa) are not showing up in adequate
Scheme and v) Mill Gate Price Scheme numbers, because NREGA and other
(MGPS). A sum of Rs 1370 crores has been development schemes are providing them jobs
set aside for these schemes. The expenditure at home. In the handicrafts sector alone 8.86
by the end of the first three years of the Plan is crores mandays1 have been lost since October
expected to be about Rs. 1027.67 crore, which 2008. Part of this can be explained by the
is about 75 per cent of the approved outlay for recession that had gripped the world economy
the period. Except for the Handloom Weavers
Welfare Comprehensive Scheme, where the
anticipated expenditure in the first three years 1 Loss of man days have been calculated based on the
will cross the total Eleventh Plan allocation and co-relation coefficient of 0.383 between per unit
has received enthusiastic response from the percentage decline in the export and number of
artisans. The calculation of loss of man days is based
on artisan population of 47.61 lakhs
232 Mid-Term Appraisal of the Eleventh Five Year Plan

which affected the handloom sector as well. is Rs. 344.48 crores covering 482 clusters. An
The level of cloth production, according to outlay of Rs. 125 crores has been earmarked
official figures, has almost stagnated during this for Annual Plan 2010-11.
period. Information on handloom exports is
unavailable. So far as the numbers employed in 10.13. The study of the Varanasi and Chirala
the Handlooms & Handicrafts sectors are clusters carried out by the Crafts Revival Trust
concerned, the Ministry of Textiles continues to and visits by members of the Planning
use 1995 - 1996 figures, which are irrelevant Commission revealed the need for some
after 14 years. There is no authentic data base amendments – (i) To avoid a conflict of interest
with Ministry of Textiles on such a vital income it is imperative that the Diagnostic Study to
generating sector one that contributes evaluate the needs of these clusters is carried
significantly to GDP and exports. out by an independent organization and not by
the implementing agency. (ii) Given the striking
The Report Card regional variations in weaving, there is need for
greater flexibility, in keeping with the needs of
A) HANDLOOMS the weavers in the local cluster (to be spelt out
in the Diagnostic Report. (iii) To direct
10.12. Integrated Handloom Development assistance to the most deprived weavers,
Scheme (IHDS): This scheme was introduced clusters should also be graded based on
in 2007-08 to focus on the formation of self parameters like access to raw materials, status
sustaining weavers’ groups, and to provide a of infrastructure and tools, current levels of
workplace to weavers. Being in a Public Private production (both quantity as well as turnover),
Partnership mode, it is a major breakthrough, per capita income generated, connectivity to
with the potential of empowering thousands of markets and awareness regarding market
weavers. The Eleventh Plan allocated Rs.605 trends. (iv) Most importantly, women and
crores to cover 36.88 lakh weavers and provide ancillary workers should be trained and made a
them with basic inputs like looms and

Box 10.2
Varanasi : Integrated Handlooms Cluster Scheme
Urban: A cluster was started six months ago for the 1 lakh weavers in Bazardiha located in the heart of
Varanasi. The office is a tiny one room structure. Most people are unaware of the scheme because
less than 1 per cent are covered under it. Just 300 weavers are members and the only benefit they
have received so far is 6 looms, 2 Jacquards and 5 accessories which were disbursed according to the
decision of a cluster consortium of nine weavers. Availability of yarn, marketing links, inability to pay
premium of ICICI Lombard Health Insurance Scheme continue to be major problems.
Rural: The cluster at Sarai Mohana is also 1 year old. Of the 10,000 weavers, 320 are members. The
cluster scheme has helped by providing worksheds to 17 families. Since most people lived in kutchcha
houses and have never got Indira Awas loans, these worksheds are doubling as homes. Eight people
have gone to Chanderi and eight to Kolkata for exposure visits. A designer has been identified but no
design has been developed because there is no money for sample development. As a result, no
marketing linkages have been formed. A yarn depot has been sanctioned but weavers are unwilling to
use it because the yarn supplied through the depot is more expensive than the open market. There are
no woman members in the cluster. (Observations of Member Handlooms and Handicrafts, on a visit
during November 2009)

accessories, working capital loans, product part of cluster committees, instead of merely
development infrastructure support, supply of being treated as “help”. These findings needed
equipments, design development and to be carefully considered and used for a mid
marketing support. Of this, the anticipated course correction.
expenditure for the first three years of the Plan
 Handloom and Handicrafts 233

10.14. Handloom Weavers Comprehensive premium paid to service providers against

Welfare Scheme: This scheme was introduced parameters like pending cases, disbursement
in the Eleventh Plan. It has two components: and period of pendency. This information
the ICICI Lombard Health Insurance and the should be put in public domain and a grievance
Mahatma Gandhi Bunkar Bima Yojana which redressal system instituted. Data on the
provides life insurance. Over 18.78 lakh disease burden vis-à-vis the age profile of the
weavers have received benefits in 2008-09 and weavers should also be obtained.
claims worth Rs.61.82 crore have been
disbursed. The Eleventh plan allocated Rs.425 10.16. Many weavers have expressed their
crores for this scheme; and Rs.433.91 crores inability to pay the premium for renewal of the
will be the anticipated expenditure in the first Health Insurance Scheme. There is a need to
three years of the Eleventh Plan. An outlay of ensure that destitution and poverty do not force
Rs. 170 crores has been earmarked for Annual weavers out of this scheme. State
Plan 2010-11. Governments should be encouraged to
contribute towards the 20 per cent premium that
10.15. Given the popularity of these schemes is due from the weavers.
and the visible difference they seem to be
making to the lives of weavers, there is a need 10.17. Diversified Handloom Development
to enhance allocation for the schemes. Scheme: The major objective of this scheme is
However, given the reports of corruption, there to hold design exhibitions and workshops and
is also a need to streamline processes. To to conduct the Third Handloom Census and
avoid misuse, the Health Insurance cards could issue photo identity cards to 50 lakh weavers.
follow the format of the Smart Card. An Though delayed, the Census is expected to be
independent third party evaluation of the Health completed by the end of March 2010. This will
and Life Insurance schemes could be help in planning for the Twelfth Plan. Uptill 15
commissioned to analyse and compare the February 2010, 24.45 lakh weaver households

Table 10.2
Physical progress made by various schemes in the Handloom Sector
2007-08 2008-09 2009-10
SCHEMES 11th Plan Targets Ach. (Upto
Target Achievement Target Achievement Target
March ’10)
Integrated 36.88 lakh weavers 13.50 15.41 lakh 9.22 11.61 lakh 9.00 13.02 lakh
Handloom lakh lakh lakh
Development
Scheme
Events: 1841 343 313 343 389 500 560
Marketing &
Export Projects:75 15 01 15 14 15 18
Export Promotion
Scheme Participation in 10 07 10 09 10 10
International fairs: 50
HIS: 83.92 lakh 17.74 17.74 lakh 18.00 18.78 lakh 14.31 16.11
Handloom weavers lakh lakh lakh lakh
Weavers
Comprehensive
Welfare Scheme MGBBY - 66.67 lakh 4.66 4.66 lakh 4.94 5.75 lakh 6.00 5.10
weavers lakh lakh lakh lakh
Mill Gate Price 2181 Lakh Kgs yarn 481.00 678.21 750.00 843.84 850.00 1076.46
Scheme to be supplied
Diversified 1250 Design 250 203 221 211 250 246
Handloom Exhibition-cum-
Development workshops
Scheme
22 lakh weavers Contract 24.45 lakh
households to be awarded on weavers
interviewed and 50 19.03.08. To households
lakh photo ID cards to be completed interviewed till
be issued in 18 months 15.2.2010
234 Mid-Term Appraisal of the Eleventh Five Year Plan

had been interviewed. It is essential to include need for a change in marketing strategy. It
female weavers and ancillary workers engaged recommended positioning of handcrafted items
in the pre and post loom operations in the as niche products and use of innovative
census and issue photo ID’s to them. These measures for their promotion. Branding of
invisible workers form the backbone of the products and use of youth icons to make
handloom industry and it is vital to ensure their handlooms into a fashion statement are two
well being if the vibrancy of the sector has to be important strategies of the Plan. Not much
retained and sustained. progress has been made on this front. There
has been a tendency to carry on with the old
10.18. Mill Gate Price Scheme: The marketing method of participating in regional,
Handloom Sector is largely dependent on the national and international fairs, often with
organized Mill Sector for supply of yarn, in the limited sales. Till March 2010, 1262 events had
form of hanks. Under the Mill Gate Price been organised in the Handloom sector against
Scheme, yarn and dyes are supplied to the target of 1841 events for the Eleventh Plan
individual weavers through 660 depots as a whole, reaching an achievement of 69 per
throughout the country. Mobile vans are also cent. For popularising handloom products the
used to supply yarn to weavers in remote Ministry of Textiles has taken a number of steps
areas. Of the Rs.92 crores allocated for this like declaration and celebration of Handloom
scheme in the Eleventh Plan, Rs.88.09 crores Week from 21st to 27th December every year;
will be the anticipated expenditure in the first release of 4 postage stamps on Indian textiles
three years of the Plan. The quantum of yarn in December 2009, publication of Handloom
distributed every year has also exceeded the Atlas in 4 foreign languages, as a sourcing
annual target. An outlay of Rs. 54 crores has guide for importers; making available a design
been earmarked for Annual Plan 2010-11. pool of ethnic and contemporary designs in 12
Indian languages on the web-portal
10.19. This scheme is popular but not because www.designdiary.nic.in There is however a
of its design or efficacy. The high utilisation is need to do even more and to ensure that
largely because it is the only scheme that deals Handlooms become a ‘must have’ in the
with supply of the most vital raw material wardrobe of every fashion, environment or
required by handlooms. On the ground, the socially conscious citizen of this country. An
scheme restricts supply of yarn to master outlay of Rs. 57 crores has been earmarked for
weavers and traders. In actual practice cotton the Annual Plan 2010-11.
yarn is sold in the minimum quantity of 2 to 3
bales. Individual weavers are unable to access B. HANDICRAFTS
the smaller quantities that they need, thereby
reinforcing their dependency on the trader and 1. Baba Saheb Ambedkar Hastshilp Vikas
the master weaver. Moreover, though the Mill Yojana:
Gate Price Scheme is designed to provide yarn
to the Handloom Weavers’ Organisations at the 10.21. The Eleventh Plan allocated Rs.246.58
price at which it is available at the Mill Gate, crores for providing basic inputs and
weavers complain that NHDC yarn is often infrastructure to 4 lakh artisans under this
more expensive than what is available in the scheme. Using the cluster approach,
market. It is therefore important to revise the approximately 75,000 artisans have been
Mill Gate Scheme to ensure that small covered under the scheme so far. The
quantities of yarns and dyes required by expenditure till end of 2009-10 was Rs.132.19
independent weavers, are supplied at crores which is 54 per cent of the total Eleventh
reasonable prices. The yarn banks could also Plan allocation. An outlay of Rs. 72.82 crores
consider supplying ready-made warps. has been earmarked for Annual Plan 2010-11.

10.20. Marketing Export and Promotion 10.22. This is without doubt one of the most
scheme: Recognising the need for market visible schemes and many of its components
linkages, the Eleventh Plan allocated Rs.175 like provision of credit guarantee, margin
crores for this scheme. It also stipulated the money, training of artisans and creation of raw
 Handloom and Handicrafts 235

material banks have the potential of providing pay a highly affordable premium of Rs 40 per
the much needed impetus to the sector. annum. So far 9.42 lakh artisans have been
However, in the regional consultations and covered under this scheme.
during field visits, artisans expressed their
inability to attend exhibitions outside the State 10.27. The Rajiv Gandhi Shilpi Swasthya Bima
as no TA/DA is provided. Few Common Yojana (RGSSBY) was launched in March 2007
Facilities Centres have been established; and on a pilot basis to provide artisans access to
only 11 Raw Material Banks have been quality healthcare. Under this scheme an
sanctioned during the Plan. The process of artisan family is covered for three years and
getting the ID cards is also very cumbersome. primacy is given to renewals. The Eleventh
To fill these gaps and ensure greater reach and Plan targeted to cover 40.80 lakh artisans
efficacy, an independent evaluation of this under this scheme. For the first two years of the
scheme and its revamping is recommended. Plan this scheme has been open to all artisans,
irrespective of their BPL status. Since the
10.23. Research & Development Scheme: health insurance scheme of the Ministry of
Rs.30.69 crores have been set aside under this Labour which covers BPL families is being
scheme for various important activities like phased in, the RGSSBY is being continued in
Artisans’ Census, GI registration of products 2009-10 as well. Under the present scheme
etc. Up to end of 2009-10, Rs.13.07 crores has artisans are required to make an annual
been spent. A website detailing all the schemes contribution of Rs 150. Those belonging to the
of handicrafts along with their performance has NE region and to SC/ST have to pay half of
been launched. This site also contains details this. Currently, a large percentage of the
about crafts clusters, products and exporters. artisans belong to the minority community
This is an important achievement. An outlay of and/or are women. Since they are also
Rs. 12 crores has been earmarked for Annual extremely deprived and vulnerable, the
Plan 2010-11. provision of halving the annual premium should
be extended to them as well. Against the
10.24. Meanwhile the census for 40 per cent of allocation of Rs.328.51 crore, Rs.226.17 crore
districts in the country and some surveys has have been spent upto end of 2009-10. An
been commissioned, but these are still in outlay of Rs. 84.11 crores has been earmarked
progress. It is imperative that the handicraft for Annual Plan 2010-11.
census and mapping be completed within the
Eleventh Plan period to ensure that our policies 10.28. Credit Guarantee Scheme: Since the
and schemes in the Twelfth Plan are based on formal financing sector has been finding it
current realities and not figures which are difficult to support artisans in the absence of
almost two decades old. fixed assets, to offer as collateral security for
loans, a scheme called ‘Credit Guarantee
10.25. Progress on the GI front has been lax. Scheme’ was launched. The Scheme provides
Although there are no targets for GI, being need Guarantee Fee and annual service charges (GF
based; only 33 crafts have been registered so & ASF) on behalf of the borrower which is
far and for 51 more crafts registration process is charged by M/s Credit Guarantee Fund Trust
underway. Progress on the GI front needs to be for Micro and Small Enterprises (CGTMSE) in
expedited. lieu of guarantee extended against the loan
sanctioned to them by Member Lending
10.26. Handicraft Artisans Comprehensive Institutions (MLI) . A sum of Rs. 2.80 crore has
Welfare Scheme: There are two components been placed with CGTMSE towards GF & ASF
under this scheme. The Janashree Bima for this purpose. With the mechanism in place,
Yojana, launched in 2003-04 provides life it has become possible to bring handicraft
insurance, accident insurance, disability artisans into formal finance sector through
insurance and some educational support up to Artisan Credit Card (ACC). Some banks have
two children of the artisans. The Eleventh Plan come forward to issue ACCs and therefore
targeted to cover 5 lakh artisans under this credit to handicraft artisans. Moradabad has
scheme. This scheme requires the artisan to been the first place where 12000 artisans have
236 Mid-Term Appraisal of the Eleventh Five Year Plan

been issued these cards with a credit of Rs. 65 10.31. Launch of the Pension Scheme and
crore. Other clusters in Tamil Nadu, the Thrift Fund: These social security
Puducherry, Rajasthan, Orissa, West Bengal measures outlined in the Eleventh Plan are
and U.P. are also being issued ACCs and credit important to ensure social security as well as
is being sanctioned to them. working capital for the weavers. Without these,
other programmatic interventions will not
The Road Ahead bear fruit. These schemes need to be launched
in the balance of the Plan period both for
For the remaining period of the Eleventh handloom weavers and artisans.
Plan
10.32. Institution of a Powerloom Mark: To
10.29. An appraisal of the Eleventh Plan prevent Powerloom cloth from masquerading as
reveals that some measures, particularly those hand woven fabric, a handloom mark is not
concerning social security, have been taken sufficient. There is need to consider introduction
and have proved to be a great success. In fact, of a compulsory Powerloom Mark on every
such has been the need and the demand for fabric woven on the machines. This could be in
the insurance schemes that the allocation for the form of a selvedge (text or symbol) on every
them needs to be enhanced. However, many metre of powerloom cloth. This distinguishing
important policy and programmatic measures mark will enable consumers to differentiate
listed in the Plan are yet to be implemented. It between the handwoven and the machine-
is important that they are carried out in the made product. The responsibility of ensuring
remainder of the Plan to ensure that the gains the selvedge should lie with the powerloom
made through the existing schemes are not lost owner. To ensure that this does not adversely
to the weavers and artisans. The Mid Term affect the already impoverished powerloom
appraisal of the Plan therefore recommends the weaver, Ministry of Textiles could consider
following measures with immediate effect. starting a parallel scheme to assist the
powerloom owners make the requisite changes
10.30. Launch of the Distress Relief Fund: in their looms.
Competition from Powerloom and Chinese
goods masquerading as Handlooms has 10.33. Enforcement of Handloom
adversely affected weavers in many parts of the reservation: It must be ensured that the items
country with severe distress in many cases. on the Handloom Reservation List are not
Many of them are winding up their looms, cannibalised by the mechanised textile sector.
pulling rickshaws and collecting garbage for a Further, at present the Handloom Reservation
living. Recognising the need for immediate List includes only items woven with cotton
intervention, the Eleventh Plan promised a and/or silk yarn. This Reserved List could also
Distress Relief Fund to ensure that weavers’ include items woven with blended yarns, such
and their families do not become victims of as viscose and other blended fibres as this is
starvation or despair. However halfway into the the current demand.
Plan, this important scheme is yet to take off. It
is imperative that it is put into operation in the
next financial year.
 Handloom and Handicrafts 237

Table 10.3
Physical progress made by various schemes in the Handicrafts Sector
Scheme XI Plan Targets 2007-08 2008-09 2009-10
Target Target Achievement Target Achievement Target Achievement
Baba Saheb 600 clusters 120 147 120 125 Clusters 120 123
Ambedkar Clusters
Hastshilp Vikas
Yojana
Design & 1186 events 220 340 197 162 237 522
Technical
Upgradation
Marketing Domestic 205 487 212 492 263 289
Support & 1070 events
Services International 743 99 59 61 65 170 63
events
Research & Census of Census Census for 20 Census Census of One time Census in
Development Handicrafts of 20 per cent of the of 20 per further 20 per survey/ progress
per cent districts for 4 cent cent districts census of
districts regions districts for six regions remaining
in the awarded awarded districts
country
Artisan Survey As 14 studies As 30 new studies 10 new
and studies as required awarded required awarded; 17 studies
per requirement workshops
Set up 6 testing 1 1 (New Delhi) 1 1 (Bangalore) 1 Nil
labs
Human Resource Training through 12 07 18 7 30 6
Development Institutions:120
Training under 70 0 70 140 77 128
Guru Shishya
Parampara: 350
Handicrafts 40,80,000
Artisans Artisans
Comprehensive Bima Yojana 1.00 97,636 1.00 9.66 lakhs 1 lakh 0.26
Welfare Scheme lakh lakh
RGSSBY: 8.00 8.82 lakhs 8.00 10.10 lakh 8 lakh 8.02
lakh lakh lakhs

10.34. Mapping of handcrafted and many other towns along the Bagh and Gambhiri
handwoven products: In addition to the rivers. These craftsmen cannot be left out.
census, a careful mapping of handloom and
handicraft products and clusters across the 10.35. Inclusion of Ancillary workers: To
country is essential. We need to know where ensure continuity of weaving traditions, the
our crafts and craftspeople are located, in what skills involved in the entire production chain
numbers and with what skills. This is important need to be preserved and supported. Ancillary
not just for directing our schemes to the right workers who perform crucial pre-loom and post-
people, but also ensuring that the items loom operations must be recognised as
registered under GI Act do not rob craftsmen of significant contributors. They need to be
their livelihoods. For instance, Bagh prints have enumerated in any mapping and diagnostic
been registered under the GI Act and cover an exercise in their own right. Ancillary workers
area of just 8 km square. However, the same should be included as beneficiaries within not
craft is carried out in nearby Khugshi (in fact, only the IHDS, but also all handlooms schemes
Bagh learnt the craft from this town) and in and should be provided with weaver as well as
insurance cards.
238 Mid-Term Appraisal of the Eleventh Five Year Plan

Box 10.3
Commonwealth Crafts connection
Kamaladevi Chattopadhyay, the doyen of Indian crafts work wrote, “The concept behind
handicrafts, as originally conceived, was imbuing everything used in daily life, no matter how
common or mundane, with a touch of beauty; to add brightness to an otherwise dull and drab
existence.” Imagine if the Games Village and the Technical Village were furnished using our
handlooms and handicrafts – curtains, the bed covers, the cushions, the statues, the paintings.
Each block could be done using the crafts and products of one state. Not only would this give the
visitors a taste of India and its rich heritage, it would also provide livelihood opportunities to lakhs
of families. Live crafts bazaars at the Villages or at the Games venue would sensitise people
about our crafts and at the same time, provide a ‘never before’ marketing opportunity for our
skilled crafts people. They could produce thousands of stoles, scarves, tweed jackets, hats,
paintings with the Games logo. They could sculpt the logo and mascot using different materials,
designing unique Chamba rumaals with them and create hundreds of big and small memorabilia.

10.36. Promotion as Niche Products: Both duty on silk fabric in April 2006, but they still
handlooms and handicrafts should be promoted feel it is inadequate. The high duty on yarn
as niche products with a creative and social makes it difficult for them to compete with
value. Celebrities, like film or sports icons Chinese fabrics despite the duty imposed
should be used to create a brand identity. For (effective till April 2011). The extension of anti-
example, traditional weaves from the NE should dumping duty on yarn (with reference price of
be used for the creation of furnishings by mixing US$ 37.32 per kg) till January 2014 is hitting
and matching instead of imposing mainland them very hard. It is important to ensure yarn
designs in parts of the country where designs availability. If the Government can’t reduce duty
are germane and unique. There is a need to it should procure the “shortfall” yarn and provide
come up with innovative marketing ideas like it to weavers at affordable rates.
preparing a small “Collectors booklet” listing the
“unique” products handcrafted in India. This can Other policy directives:
then be distributed at Indian Embassies and at
all international airports in India. The attempt 10.38. With the introduction of VAT, although
should be to encourage people to buy these cotton mill made yarn has been exempted from
items and to get a stamp on their collector’s sales tax or trade tax by a number of states, yet
guide stating the place of purchase and USP of agencies have to submit set forms.
these unique items. Unregistered firms have still to pay tax
depending on the state policy. Cotton mill
10.37. Examine the Anti dumping duty on made yarn imported from outside the state by
silk yarn and silk cloth: After a case filed by unregistered agencies/groups/firms raises the
various Silk Reelers Associations in July 2002, cost of production. Cotton or woollen mill made
Directorate General of Anti-Dumping & Allied yarn, which is the basic raw material needs to
Duties (DGAD) imposed an anti dumping duty be exempted from all restrictions in all the
on mulberry raw-silk of 2A Grade and below states. Similarly, the Government needs to
indicating a reference price of US$ 27.97 per come up with a comprehensives polity on
kilogram of raw-silk. This was to remain export of cotton yarn, keeping in mind the
effective until January, 2008. While this brought interests of cotton growers, reelers and
relief to the reelers, the weavers were hit hard. weavers.
According to figures given in the Eleventh Plan,
there is a shortfall of 10,000 metric tons of silk 10.39. Swarozgar Credit Card: Working
yarn. The weavers are forced to buy yarn at Capital Loans need to be provided at easy
high prices due to the anti dumping duties. For repayment terms to ensure weavers have
years they have been thus burdened. The working capital for a 3 month period to cover
Ministry of Commerce imposed anti dumping them during seasonal market cycles. The
 Handloom and Handicrafts 239

Swarozgar Credit card scheme provides against factory owners who breach their
flexibility to weavers and artisans to withdraw Intellectual Property Right. Currently, the
and deposit money. A Credit card can also be Textiles Committee is the main standard-setting
taken by the SHGs and loan can be provided to body, the sole implementer, and certification
members as per their requirement. This agency. There is need for an independent
scheme needs to be publicised further and Handmade in India Accreditation Board (HIAB)
made more accessible for the weavers and along the lines of the National Accreditation
artisans. Board created for implementing the Organic
Mark. The HIAB, under the Ministry of Textiles
10.40. NGO partnerships: The running refrain can have representatives from government, civil
from all the regional consultations was the lack society as well as the private sector. This body
of awareness and the limited reach of can be given the task of not only ensuring that
programmes. This calls for an urgent response the products using the Handloom mark (and
by way of developing an appropriate later crafts mark) are genuine but for also
programme for awareness generation, which registering and investigating complaints for
would involve NGO partners. They should be infringement of GI Act, and for non-compliance
involved at all levels from design and on selvedging by powerlooms.
implementation, to monitoring and establishing
linkages. Many NGOs have successfully been 10.43. Promotion of Crafts Education: Craft
running programmes for promotion of education should be introduced in schools and
indigenous crafts and have even successfully colleges One example of this is the kind of
created brands. These efforts need to be initiative taken by Craft Development Institute,
studied carefully, supported and where possible Srinagar for conducting a two year Post
expanded and replicated. Graduate Programme. Craft courses should be
recognised for formal degrees or professional
Longer Term Recommendations programmes. Further, in our country
craftsmanship has been traditionally handed
10.41. Institution of a Crafts Mark and need down from parents to children but today, for
for Handloom Handicraft Connection: The fear of being accused of encouraging child
ambiguity between Handlooms and Handicrafts labour, parents are not able to pass on their
limits benefits to artisans. There has to be a traditional knowledge to children. Training
reduction in artificial barriers that prevent one children in crafts should therefore be seen as
group of workers from accessing certain part of informal and formal education.
schemes. What constitutes “Handicrafts” needs
a clear and firm definition so that items covered Conclusion:
under this category are honoured by all
agencies including banks. There is an urgent 10.44. The handloom and handicraft sector
need for a Crafts Mark to emphasise the art and showcases our cultural wealth. It
creativity involved. The ‘nomenclature’ should encourages the co-existence of communities
also change from “handicrafts” to “Handcrafted from diverse faiths, cultures, classes and castes
in India,” to help further the branding process. on a single production cum market platform and
thereby strengthens the secular fabric of
10.42. Creation of a Handmade in India the Indian society. The Eleventh Plan
Accreditation Board: The Handloom Mark is recognises this. The first half of the Eleventh
a much needed brand identity for Indian Plan has focused on schemes that ensure the
handlooms. There is also a need for powerloom well being of our craftspeople and improvement
mark and a crafts mark. However, none of in the quality of their life. These measures need
these will be effective if they follow the same to be continued. At the same time there is a
mode of implementation as the Handloom need to re-vision the role of government in
Mark. Similarly while a scheme for registration these sectors in order to:
of Handloom and Handcrafted products under
GI has been launched, it is of little use as the
weavers are too poor to fight legal battles
240 Mid-Term Appraisal of the Eleventh Five Year Plan

a) Support preservation of traditional skill and c) Enforce quality control and put in place a
knowledge, yet enable their development in policy that enables weavers and artisans to
the contemporary context. become suppliers for big marketing chains,
without being exploited.
b) Provide financial and policy support and the
necessary regulatory framework that fosters d) Facilitate marketing linkages, instead of
the development of viable entities which doing the actual marketing.
enable artisan and micro enterprises
(individually and collectively) to access: 10.46. In the long run a quality control and
marketing mechanism needs to be put in place
(i) supply chain management services
which brings enough return to the weavers and
(ii) financing services, design and artisans to ensure that they lead a dignified life.
technology services Our endeavour in the remaining part of the plan
period should be to create an environment in
(iii) branding and marketing services, and
which these sectors (and consequently, those
most importantly
associated with them) can prosper and flourish.
(iv) socio economic services, in a manner
similar to that provided to the organised
sector.
 11
Women’s Agency and Child Rights

OVERVIEW Child Protection Scheme were started to protect

and address security needs of vulnerable
11.1. The Eleventh Plan recognised women women and children. National Commission for
as change agents and acknowledged the rights Protection of Child Rights (NCPCR) was
of children regardless of vulnerabilities of their established as a statutory body to protect,
class, caste, religion, ethnicity, regional and promote and defend child rights in the country
gender status. The Plan envisioned, inclusive related to children. To integrate the gender
growth and advocated for ending the exclusion perspective into the budgeting process a
and discrimination faced by women and scheme on Gender Budgeting was introduced.
children. It was meant to give a gender perspective to
planning, budget formulation and
11.2. The first half of the plan saw the implementation of schemes and programmes.
introduction of some new schemes to tackle
issues of declining sex ratio, trafficking and 11.4. Half way through the Eleventh Plan, the
child protection. Existing schemes were steps taken to attain inclusive growth as per the
modified to plug the gaps identified by various goals set out in the Plan are clearly visible,
organisations and experts. The past four years albeit the progress is slow. Infant Mortality Rate
have seen path breaking legislations like (IMR) for rural females has declined from 66 in
Prohibition of Child Marriage Act, 2006 and 2005 to 60 by 2008. The concomitant decline
Protection of Women from Domestic Violence for males has been from 62 to 57. In urban
Act, 2005 and Hindu Succession (Amendment) areas the decline in IMR has been more
Act, 2005. While these steps are important and significant, a reduction from 45 to 38 for
signify progress, there has been little visible females and from 37 to 34 for males. The all
change in the living realities of women and India estimates show that overall IMR has
children. At the same time, many important declined from 58 to 53 over this time period.
schemes that were suggested in the Plan Yet, while the process of systemic
document have not taken off. For instance; a transformation has started, much more needs
comprehensive scheme on single women, a to be done if the promises and targets of the
national task force for women in conflict areas, Plan are to be attained. For instance, the
scheme for internally displaced women, a High concept of gender budgeting needs to be
Level Committee to review SHG policies and extended to urban and rural local bodies to
programmes. This delay will further slow down reflect needs of women at all levels of scheme
the already long drawn process of ensuring that formulation and implementation. Procedures for
women’s development is truly inclusive. implementation of Domestic Violence Act need
to be put in place. The Maternity Benefits
11.3. The Eleventh Plan has moved towards scheme and the scheme for adolescent girls,
the concept of Women’s Agency and Child both of which were Eleventh Plan commitments
Rights. For instance; Dhanalakshmi was need to be launched at the earliest. Many
introduced to address the issue of declining schemes with limited coverage which came up
Child Sex Ratio (CSR). Ujjwala and Integrated in the first half of the Plan are too new for
242 Mid-Term Appraisal of the Eleventh Five Year Plan

impact assessment but hold out the hope that associated with the process. These
by the end of this plan they will begin to Consultations were preceded by State Level
address long standing issues. It is recognised Consultations. The Planning Commission held
that structural changes take time and their meetings with officials from State Governments
success lies in proper implementation and good who are the main implementers of the
governance. schemes. A national level workshop of
academics, researchers and NGOs was held to

Box 11.1
The Eleventh Plan at a Glance: Towards Women's Agency & Child Rights
The Approach:
• Recognised the right of every woman and child to develop to her full potential.
• Recognised the differential needs of women and children as a heterogeneous category.
• Acknowledged the need for inter-sectoral convergence as well as the need for focused measures
by MoWCD for the development of women and children
• Recognised the need for partnership with civil society to create permanent institutional
mechanisms that incorporate the experiences, capacities and knowledge of VOs and women’s
groups in development, planning and implementation.
Commitments:
• Child Protection through ICPS.
• State Commissions for Protection of Child Rights
• New scheme to combat trafficking
• Schemes to cater to the needs of children orphaned by HIV/AIDS and ensuring mental health
Of children
• Restructuring and universalising ICDS
• Scheme to address the needs of adolescent girls
• Introducing Maternity Benefits
• Gender Budgeting
• State Governments to frame rules under Child Marriage Act 2005 and appoint Child Marriage
Prohibition Officers.
• Effective implementation of legislations which address multiple forms of Violence Against Women
Monitorable Targets:
• Raise the sex ratio for age group 0–6 from 927 in 2001 to 935 by 2011–12 and
to 950 by 2016–17.
• Ensure that at least 33percent of the direct and indirect beneficiaries of all government
schemes are women and girl children.
• Ensure that all children enjoy a safe childhood without any compulsion to work.
Fiscal Allocation:
• Eleventh Plan Allocation for MoWCD: Rs 56,765 Crores
• Share of Centrally Sponsored Schemes: Rs. 55,019 Crores (97 per cent of the total allocation)
• Share of Central Sector Schemes: Rs. 1,746 Crores (3 per cent of the total allocation)
• Share of schemes related to children: Rs. 55,234 Crores (97.3 per cent of the total allocation)
• Share of schemes related to women: Rs. 1,366 Crores (2.40 per cent of the total allocation)

PROCESS OF MID-TERM APPRAISAL get their perspective on the schemes. A

detailed feedback was obtained from MoWCD
11.5. Five regional consultations were held regarding schematic appraisal including
at; Chandigarh (North), Bhubaneswar (East), scheme wise physical and financial
Jaipur (West), Bangalore (South) and Guwahati targets/outlays and achievements.
(North East), in collaboration with UNIFEM,
UNFPA and UNICEF. Two NGOs, Voluntary 11.6. The objective of the process described
Health Association of India (VHAI) and National above was to assess the ability of existing
Alliance of Women (NAWO), were also schemes and programmes to comprehensively
 Women and Child Development 243

fulfil the Eleventh Plan vision of Women’s called the ‘Anganwadi’, literally a ‘courtyard’,
Agency and Child Rights. The process helped located within the village itself. A package of the
to identify difficulties, bottlenecks and good following six services is provided under the
practices. ICDS Scheme: supplementary nutrition, non-
formal pre-school education, immunisation,
THE REPORT CARD health Check-up, referral services, and nutrition
and health education.
11.7. A sum of Rs. 31,343 Crore was
allocated for the first four years of the plan. 11.10. The Eleventh Plan recognised the need
This is 55.22 per cent of the Eleventh Plan for evaluating and restructuring the scheme to
approved outlay, even though it covers 80 per ensure that it met the goals it had set out to
cent of the plan period. Of this, during 2007-10, achieve. The outlay for the programme was
Rs. 26,998 Crores i.e. 86.18 per cent of the increased from Rs.12,147 crore in the Tenth
total plan outlay has been allocated for ICDS Plan to Rs.44,400 crore in the Eleventh Plan,
alone. The growth and development of children an increase of 266 per cent, to facilitate this
is vital and hence ICDS needs proper funding. restructuring and to ensure universalisation of
But it is a matter of concern that the 10 per cent the new, improved ICDS.
allocated for the rest, results in under funding of
other schemes which are essential for women 11.11. Some expansion and revision of norms
and without which even the goals set out for for nutrition and honorarium of Anganwadi
ICDS cannot be achieved. Most of the schemes workers (AWWs) and Anganwadi Helpers
related to women, have unrealistic cost norms. (AWHs) did take place in October 2008, The
honorarium of AWWs was raised from Rs.1,000
11.8. Scheme–wise outlay and expenditure to Rs.1,500 per month (p.m.) and that of AWH
for the first three years of the Eleventh Five from Rs.500 to Rs.750 p.m. Similarly the
Year Plan and the concomitant physical targets amount for nutrition was raised from Rs.2 per
and achievements are given in Annexure I and day (p.d.) to Rs.4 p.d. for children and from
Annexure II. Rs.2.30 to Rs.5 p.d. for pregnant and lactating
women. However, a systemic revamping of the
Integrated Child Development Services programme has yet to occur.
(ICDS):
11.12. Currently, there are 13.56 Lakh
11.9. The ICDS which currently covers 8.63 sanctioned anganwadi centres (AWC) across
crore children and pregnant and lactating the country which is supposed to be covering all
women is the world’s largest programme for the hitherto uncovered habitations. Of these
early childhood development and care. Yet, 11.42 lakhs are operational (as on 31
despite 34 years of its operation, the country December 2009). In addition to this 25,431
continues to grapple with high levels of additional AWCs/ mini-AWCs became
malnutrition. ICDS provides an integrated operational during 2009-2010 (as on
approach for converging basic services through 31.8.2009).
community-based workers and helpers. The
services are provided at a child care centre 11.13. It is significant to note that the number
Table 11.1
Status of ICDS
Year No. of No. of No. of No. of
operational operational supplementary pre–school
projects AWCs nutrition education
beneficiaries beneficiaries
2006-07 5,829 8,44,743 705.43 lakh (581.85 lakh children 300.81 lakh
and 123.58 lakh PLM)
2007-08 6,070 10,13,337 843.27 lakh (696.44 lakh children 339.11 lakh
and 146.83 lakh PLM)
2008-09 6,120 10,44,269 873.44 lakh (721.97 lakh children 340.60 lakh
and 151.47 lakh PLM)
2009-10 (up to 6,509 11.42 lakh 884.34 lakh (727.89 lakh children 354.94 lakh
31.03.2010) (7073 sanctioned) (13.56 lakh sanctioned) and 156.45 lakh PLM)
% increase
w.r.t. 2006-07 11.67% 35.19% 25.36% 18 %
244 Mid-Term Appraisal of the Eleventh Five Year Plan

of beneficiaries for supplementary nutrition Recommendations:

have increased from 705.43 Lakhs (82.5 per
cent children and 17.5 per cent pregnant & 11.17. ICDS has been in existence for about
lactating mothers (PLM)) in 2006-07 to 884.34 34 years and today covers the entire country,
Lakhs (82.31per cent children and 17.69 per but it has not been able to achieve the
cent pregnant & lactating mothers) (25.36 per outcomes expected. NCAER is conducting a
cent increase) in 2009-2010 (upto 31.03.2010). regular evaluation of the programme, initiated
Similarly, the number of children in the 3-6 year by the Planning Commission and the results are
age group attending AWCs for pre-school expected in 2010. This is clearly time for a
education has increased from 300.81 lakhs in detailed comprehensive appraisal of the
2006-07 to 354.94 lakhs in 2009-2010 (upto programme in its entirety, going beyond the
31.03.2010) recording an increase of 18 per usual periodic evaluation. The proposed
cent. appraisal / review should examine the need and
desirability of continuing with ICDS in its
11.14. A clear directive has also been given, present shape and form. Currently the scheme
last year to provide hot cooked meals as far as is treated as a panacea for all child related
possible. This is a welcome change, one that activities which it cannot be. The role of ICDS
has long been advocated by nutrition experts should first be clearly delineated and then
and civil society representatives. It is expected targets and responsibilities assigned. There is
to ensure better attendance at AWCs and also need to clearly define the specific purpose of
provide greater nutrition security to the children. the scheme and parameters against which its
At the same time, the success of this performance will be measured. The need is to
intervention will depend on the quality and kind focus on impacts and outcomes rather than
of cooked food being provided. Like in the case outputs. Alternatives like having certain
of mid-day meals, different models are being components of ICDS in certain areas only,
tried out in different states. Some have passed conditional cash transfers, PPP mode of
on the responsibility of providing hot, cooked running ICDS etc could be examined.
meals to local mothers’ groups, while others
rely on NGOs and centralised kitchens being 11.18. For the remainder of the Plan period
run by organisations like Akshay Patra and different models and success stories can be
Nandi Foundation. In most cases however, the studied, attempted and results monitored with a
responsibility of cooking continues with the view to revamp the programme." For instance,
AWW/AWH which is often problematic because a certain district may require more inputs in
of the lack of cooking infrastructure in the AWC. terms of nutrition while another district /block
(where malnutrition is not the problem) may
11.15. The AWC is most often perceived only need the same fund or pre-school education.
as a place where supplementary nutrition is This flexi mode approach may initially be
distributed. The other services under the attempted on a pilot basis in the remaining part
programme i.e. pre-school education, of the Eleventh Five Year Plan to test its
immunization, health check-up; referral and acceptability.
nutrition & health education are not of much
consequence to many beneficiaries, perhaps 11.19. The following specific initiatives need to
due to the quality of services being provided. be considered while revamping the scheme.

11.16. The multi-tasking that the AWW is (i) Ensuring adequate infrastructure - many
expected to do is phenomenal. She is most centres continue to run from rented
often ill equipped (both with skills and premises or in the open with little or no
equipment), overburdened, under paid and place for the little ones to sit, leave alone
lacks guidance and supervision. play. A large number (45 per cent) of
centres continue to have no toilets and 27
per cent lack drinking water facility.
(ii) Introduction of a second Anganwadi
worker, so that responsibility can be
 Women and Child Development 245

divided. One can ensure adequate (ix) Transparency and accountability ensured
support and care for Children under three of the AWC activities, by putting all their
years and adopt a more outreach data on their web-site. Better governance
approach by visiting children and their of the programme through proper
families in their homes while the other planning, monitoring and concurrent
could focus on the 3 to 6 year olds, evaluation (preferably by a third party) in
especially the pre-school education order to enforce accountability will be the
component. RGSEAG would add to the key to success.
burden of AWWs further.
(X) Focus on nutritional counselling and
(iii) Conversion of some AWCs into crèches education. The time has, perhaps, come
and introduction of more than one meal to make a shift in our communication
for children under three years of age. strategy and move away from sensitising
and communicating only with the women,
(iv) Greater integration but clearer
and to involve the community and the
demarcation of responsibility between
family, particularly the husband and in-
AWW, ASHA, ANM. For the field level
laws, as well.
staff of the ICDS, i.e. AWWs and
supervisors there should be dual reporting (XI) Mapping of severely malnourished
to both ICDS officers as well as health children, and providing additional funds
department officers. where needed. Ensuring regular weighing
of children. Nutrition Rehabilitation
(v) Selection of AWW and AWH needs to be
Centres should be available in PHCs for
done in consultation with the community.
severely malnourished children.
They should be appointed on tenure basis
with inbuilt provision for performance (XII) Generating awareness about the locally
based incentives. available nutritionally rich products.
(vi) The single-most important factor that (XIII) Capacity building at all levels by first
could reduce malnutrition and mortality is, determining the training needs for each
perhaps, early and exclusive breast- component of ICDS, for different levels of
feeding, which has not received sufficient staff, before imparting the training and
attention since there is no budget doing a post-training assessment. Having
attached to it and no physical monitorable a small per centage of staff as ‘training
indicators for it. This aspect needs urgent reserve’ is also strongly recommended.
attention. A Task Force comprising the
concerned ministries, experts, NNF, Dhanalakshmi
World Bank, DFID, UNICEF could be set 11.20. This is a Central Sector Scheme, fully
up to look at various options of the ‘what’, funded by the centre, which attempts to tackle
‘how’ and ‘by who’. the acute problem of declining sex ratio. It was
(vii) Collection of malnutrition and growth data launched in 2008 to bring about a change in the
from AWCs and independent monitoring mindset of the family towards the girl child. It
of this data on a regular basis. An provides cash transfers to the family of the girl
appropriate nutrition MIS for ICDS should child (preferably the mother) on fulfilment of
be developed. certain conditionalities like birth registration,
immunisation, enrolment and retention in school
(viii) Best practices, like positive deviance and marriage after attaining the age of eighteen
Aame bhi paribu (We too can), Dular, years. An amount of Rs 5,000 is provided at
Achal se Angan, etc. should be registration of birth; Rs.1,000 on enrolment for
disseminated and debated widely and education; and Rs.6,250 is provided in varying
Anganwadi Centres should be instalments as her education proceeds. The
encouraged to devise their own practices total amount provided to the beneficiary is Rs
and strategies based on this information 13,500, along with an insurance cover. The
and others’ past experience . scheme is in operation on a pilot basis in 11
blocks across seven states; Andhra Pradesh,
246 Mid-Term Appraisal of the Eleventh Five Year Plan

Bihar, Chhattisgarh, Orissa, Jharkhand, Punjab e. Repatriation: Support to cross-border

and Uttar Pradesh. The proposed Eleventh victims for their safe repatriation to the
Plan outlay for this scheme is Rs 80 Crores. country of their origin.
During the first three years of the Plan, only 31
per cent of the funds had been utilised. It is too 11.22. In the Eleventh Plan, Rs.30 Crores has
early to assess how the scheme has fared, but been allocated for this scheme. During the first
the fact is that it has received no response yet three years 37 per cent funds had been utilised.
from bigger states like Bihar and Uttar Pradesh. During 2008-09, the first year of operation of
One possible reason is that the scheme has 21 the scheme, 79 projects were sanctioned for
conditions for a benefit of merely Rs. 13,500 3950 women and girls against a target of 65
which is disbursed in 17 instalments from the projects catering to 3250 beneficiaries.
time of the child’s registration of birth until she
completes 12 years of education. Recommendations:

Recommendations: • Much greater publicity

• NGOs to be encouraged and sensitised to
• Review and revise the scheme to make it
take up the scheme.
worthwhile and less cumbersome. Reduce
conditions and instalments and ensure • Procedures streamlined to enable safe and
adequate infrastructure for fulfilment and quick repatriation of the victims. A draft
disbursement. Roadmap and Joint Plan of Action is under
preparation in the Ministry in consultation
• Increase geographical coverage to make it
with the Ministries of Home Affairs and
viable and of interest to states.
External Affairs (MoEA) and their
Bangladesh Counterparts with technical
Ujjawala:
support from UNICEF.
11.21. The problem of cross border trafficking
Integrated Child Protection Scheme (ICPS):
especially of young children and women from
Bangladesh and Nepal into India, has been
11.23. To honour international commitments
growing in recent years. This issue of trafficking
for the Rights of Child and the rising impunity in
was highlighted in the Eleventh Plan and a new
violence against children, the Eleventh Plan
Central Sector Scheme called Ujjawala was
had suggested that the multiple schemes and
launched on 4, December 2007. The scheme
new interventions for protection of children be
consists of five components:
brought under one comprehensive child
protection programme. Thus, ICPS was
a. Prevention: Formation of community
launched in 2009 for which Rs. 1073 Crores
vigilance groups and adolescent groups.
was allocated in the Eleventh Plan. The
Awareness and sensitisation of
scheme includes three existing schemes:
functionaries like police, community leaders
Programme for Juvenile Justice, Integrated
though preparation of IEC material and
Programme for Street Children and Assistance
workshops.
to Homes for Children (Shishu Greha) and also
b. Rescue: Safe withdrawal of the victim from has new interventions.
the place of exploitation.
11.24. ICPS is being implemented through
c. Rehabilitation: Provision of safe shelter for
State Governments/UT’S Administration. MOUs
victims with fulfilment of basic needs such
have already been signed with the states of
food, clothing, counselling, medical care,
Chhattisgarh, Orissa, Andhra Pradesh,
legal aid, and vocational training and
Nagaland, Madhya Pradesh, Manipur, Assam,
income generation activities.
West Bengal, Kerala, Tamil Nadu, Rajasthan,
d. Reintegration: Restoration of the victim to Goa and Tripura. Childline-1098 is to be
the family/community (only if she desires) extended to rural areas and all districts of the
and covering costs of the same. country. It will be extended to 307 cities/districts
 Women and Child Development 247

in the country by the end of Eleventh Plan. The • Explore the possibility of upgrading some of
scheme along with enabling legislations is the AWCs to full time crèches.
expected to prevent child abuse and violence.
Concomitant enforcement of laws for rape, • If the scheme is to continue, consider the
sexual harassment, trafficking, domestic desirability of converting it into a Centrally
violence and dowry will make the scheme Sponsored Scheme and revising user
effective on the ground. charges and cost norms to bring them at
par with those of ICDS. The current charges
Gender Budgeting: of the scheme are Rs. 2.08 per child per
day.
11.25. Gender Budget Cells have been set
up in 56 Ministries and have been oriented to Working Women’s Hostels (WWH):
GB. This is a continuous process and
constantly needs reinforcement. Efforts are on 11.27. In operation since 1972, this scheme
to sensitise States and local urban and rural provides grants for the construction and
bodies to the concept and practise of GB. State expansion of hostel buildings for working
Institutes for Rural Development and women. The scheme has recently been
Administrative Training Institutes are also being modified and will now also provide assistance
involved along with the NGOs and other civil to hostels that have been constructed on
society bodies. Optimum use of the gender government land. In addition to this a rent
budgeting tool needs to be made by all component has been included whereby the
ministries and departments, at the centre, the scheme can now even be run from rented
states and at lower levels of governance. premises if 3 rooms/6 beds are available.
However, in view of the difference in cost of
Rajiv Gandhi National Crèche Scheme living and rents in different cities, there is a
(RGNCS): need to provide greater flexibility of funds within
the scheme. Given the ever increasing pace of
11.26. The scheme for the children of working urbanisation and number of working women,
mothers was revamped on 1 January, 2006 and this scheme is of great significance. It is a
is being implemented by the Central Social matter of concern that only 31.5 per cent of the
Welfare Board (CSWB) with two national level funds allocated have been utilised thus far. In
voluntary organisations. The Scheme provides 2008-09 only 11 hostels were built under the
crèche services to children in age group of 0-6 scheme benefiting 933 working women. Funds
years and includes supplementary nutrition, are not released on time and this continues to
emergency medicines and contingencies. So be a major complaint. Most of the hostels are in
far, 31,737 crèches benefiting 7.92 Lakhs metros and not in towns where the need is
children have been sanctioned to the growing. The quality of services with regard to
implementing agencies. The present cost norm sanitation and hygiene need to be improved.
is Rs 42,384/- per crèche per annum. User
charges for BPL are Rs. 20 per month and Rs. Recommendations:
60 per month for Non-BPL families. The
Eleventh Plan outlay for this scheme is Rs.550 • Flexibility and timely release of funds.
Crores and 96 per cent of funds allocated could • Steps to improve security, sanitation and
be spent during the first three years of the plan. hygiene.
The Scheme has an in-built monitoring
component but no evaluation has been carried • Extend to towns
out lately.
Support to Training and Employment
Recommendations: Programme for Women (STEP):

• Evaluation of the scheme, including 11.28. A Central Sector Scheme, STEP

examining its relevance and need in view of provides training for skill up-gradation to poor
universalisation of ICDS. and asset less women in traditional sectors of
248 Mid-Term Appraisal of the Eleventh Five Year Plan

agriculture, animal husbandry, dairy, fisheries financial institutions as funding agencies.

handlooms, handicrafts, khadi and village
industries, sericulture, social forestry, and Recommendations:
waste land development. The total outlay for
the scheme in the Eleventh plan is Rs. 100 • Greater awareness about the programme
Crores; of this, the expenditure during the first needs to be generated.
three years is 62.97 per cent of the outlay. As
against the target of providing training to • Further revision in cost norms, along with
110,000 beneficiaries for the first two years of flexibility in implementation is to be
the current plan, the scheme has benefited attempted.
70,920 women. • Focusing on market linkages, along with
better inputs and market research, would
11.29. Based on the evaluation done in 2007, improve delivery.
the scheme has been revised to include training
in accordance with the market demand, Rashtriya Mahila Kosh (RMK):
enhancement of beneficiary norms, designating
RMK as the Nodal Agency and including other 11.30. The National Credit Fund for Women
Table 11.2: Status of Important Interventions
Intervention Status
1 Initiation of breast feeding within one hour of birth 40.2% 24.5%
(DLHS*-3, 2007-8) (NFHS**-3, 2005-6)
2 Exclusive breast feeding of children < 6 months 46.4%
(DLHS-3, 2007-8 & NFHS-3, 2005-6)
3 Introduction of complementary feeding at 6 months In age group 6-9 months
23.9% (DLHS-3, 2007-8)
56.7% (NFHS-3, 2005-6)
4 Appropriate infant and young child feeding practices 20.7%
among children 6-23 months (NFHS-3, 2005-6)
5 Supplementary nutrition through anganwadi centre Not at all to :
81.4% children <12 months
74.9% children 12-23 months
(NFHS-3, 2005-6)
6 Access to care for the severely malnourished Minimal for nutritional therapy
7 Iron supplements to children 4.7% in age group 6-59 months given during last 7 days
(NFHS-3, 2005-6)
8 Consumption of 100 iron & folic acid (IFA) tablets by 46.8% 23.1%
mothers (DLHS-3, 2007-8) (NFHS-3, 2005-6)
9 Households with adequately iodized salt 47.5% children 6-59 months living in households using
adequately iodized salt
(NFHS-3, 2005-6)
10 Vitamin A supplementation every 6 months for 55% received during last 6 months
children 9-59 months (DLHS-3, 2007-8)
11 Full immunization of children (BCG, measles & three For children 12-23 months
doses of DPT and polio) 54.1% (DLHS-3, 2007-8)
43.5% (NFHS-3, 2005-6)
12 Treatment of acute respiratory infection from health 70.7% for children < 6 months
care facility/ provider 76.9% for children 6-11 months
69.0% for children 12-23 months
(NFHS-3, 2005-6)
13 Oral rehydration therapy or increased fluids for 17.8% for children < 6 months
diarrhoea treatment. 34.8% for children 6-11 months
52.3% for children 12-23 months
(NFHS-3, 2005-6)
14 Deworming of children every 6 months 11.9% for children 6-59 months during last 6 months
(NFHS-3, 2005-6)
15 Safe disposal of stools 11.9% for children < 6 months
13.1% for children 6-11 months
15.9% for children 12-23 months
(NFHS-3, 2005-6)
* DLHS- District Level Household Survey,
**NFHS- National Family Health Survey.
 Women and Child Development 249

was set up in 1993 to meet the credit needs of people in difficult circumstances. Common
asset-less and poor women in the informal complaints against both these schemes are:
sector. As a channelizing agent, its primary role poor quality of services, lack of medical support
is to act as an apex organisation to direct funds and counselling and insufficient budget
from government and donors to retailing allocation, irregular fund release and non
Intermediate Microfinance Organisations availability of market oriented vocational
(IMOs), which lend to Self Help Groups. RMK training. During the first two years of the plan,
provides IMOs loans at an interest rate of eight 654 new SSH homes were sanctioned against
per cent for three to five years. However, after a target of 678.
onward lending, the women borrowers are
charged with much higher rate of interest which Recommendations:
goes up to 18 per cent per annum. As against
the proposed outlay of Rs. 108 Crores in • Merge the Swadhar and Short Stay Homes
Eleventh Plan, the utilisation for the first three schemes.
years has been 94 per cent. Total number of
beneficiaries covered is 6.94 Lakhs. Rs. 25.58 • Provide adequate funds and track its
and Rs.26.48 crores of loans have been utilisation, thorough maintenance of online
disbursed in 2007-08 and 2008-09 respectively. data base on release of funds.
The recovery per centage from 1993 to 2009 • Involve the State Government for
was 90.73 per cent. monitoring purposes.

Recommendations: • Introduce third party monitoring by civil

society organisations
• Lower the interest rate to the final • Set up a toll-free universal helpline number
borrowers and increase duration of loans to across the country.
correspond with the period of loans given
by RMK to IMOs. • Create an on-line data-base of residents,
with photos, to ensure genuineness of
• Evaluate structure, role and functioning of residents but ensure limited access to data
RMK – explore restructuring as a bank or base to safeguard privacy of women.
NBFC with adequate human resources.
• Generate greater awareness, ensure better Interventions for better nutritional
transparency and monitoring. status:

Swadhar and Short Stay Homes (SSH): 11.33. Different surveys and reports indicate
that the progress in addressing under nutrition
11.31. Women often find themselves in difficult has been almost negligible. There has been
circumstances with nowhere to go and no one insufficient focus on children under two (the
to approach due to lack of a comprehensive critical window for development) and women in
social net. In 2001-02, the MWCD launched the the reproductive age group. We are still far
central sector Swadhar scheme for meeting the away from universalisation of interventions
safety and protection needs of such women. (Table 11.2), despite the fact that India has a
Apart from the basic shelter services the number of programmes and schemes to
scheme also provides for counselling, legal address the issues affecting nutrition. The table
support, skill upgradation and a helpline for 11.2 summarises the deficiencies in the system.
women in distress. As against the Eleventh If this situation continues, the Eleventh Plan
Plan outlay of Rs.108 crore which in itself is goals related to reduction in malnutrition among
very low, the expenditure is 85.8 per cent. children in the age group 0-3 years and
During this period 127 new homes could be anaemia among women are unlikely to be
constructed. achieved.

11.32. A similar scheme of ‘Short Stay

Homes’ (SSH) also address the critical needs of
250 Mid-Term Appraisal of the Eleventh Five Year Plan

Food & Nutrition Board (FNB): is not able to do.

11.34. The Food and Nutrition Board (FNB) Recommendations:

was constituted in 1964 to improve the
nutritional status of people by creating • Evaluation of the role and functioning of the
nutritional awareness among the vulnerable FNB and making it more relevant in the
groups. The FNB is required to monitor the present context of universalisation of ICDS
quality of supplementary nutrition supplied at and MDM and the disturbingly high levels of
AWCs. The Board also analyses samples of the malnutrition in the country.
supplementary food used in ICDS and Mid-Day
Meal Programmes to examine whether they • System for concurrent assessment and
conform to the standards approved by the monitoring the nutrition component of ICDS.
Central Government. The outlay for Eleventh • Messages for vulnerable groups and other
Plan was Rs 50 Crores and 82 per cent of this IEC activities including information
could be spent during the first three years. dissemination about correct food habits.
Since, the agency oversees the quality and
nutritional content of the food provided to • Greater involvement of NGOs and
children through ICDS and MDMs; it is appropriated funding of their activities.
expected to perform a significant role, which it

Box 11.2
Eleventh Plan Initiatives by Ministries towards creating Women’s Agency
• Agriculture: Under the National Policy of Farmers 2007, various measures have been taken for empowering
women in farming & allied areas to improve their access to land, credit and other services, such as joint
pattas for both homestead and agricultural land. Availability of Kisan Credit Cards is expected to create
multiple livelihood opportunities through crop-livestock farming systems and agri-processing.
• Health: Under Janani Suraksha Yojana (JSY), MoHFW has integrated cash assistance with delivery and
post delivery care to the pregnant women as well as the ASHAs (link workers). National AIDS Control
Programme is in its third phase (NACP III) addressing the vulnerability of HIV Positive women and also
ensuring their access to treatment, care and support. There have also strengthened initiatives to link women
living with HIV (WLHIV) with livelihood schemes and other poverty alleviation programmes.
• Unorganised Sector: Recognising the need for social security for the workers in unorganised sector, the
Unorganised Worker’s Social Security Act 2008 has been enacted. The Act provides for constitution of Social
Security Boards at the Central and the state levels which will recommend formulation of social security
schemes for unorganised workers, many of who are women. The Rashtriya Swasthya Bima Yojana was
launched on 1st October 2007 for BPL families in the unorganised sector. In the restructuring of RMK there
will be an increase in the availability of micro-credit to women in the unorganized sector.
• Education: (i) To retain girls in school and to bridge gender disparities in educational access, the Ministry of
Tribal Affairs is implementing a special scheme - ‘Strengthening Education among ST Girls in Low Literacy
Districts’ for tribal girls. (ii) The Ministry of Minority Affairs has earmarked 30 percent scholarships for girls in
their Merit cum Means scholarship scheme, Post Matric scholarship scheme and Pre-Matric scholarship
scheme. (iii) Under Sarva Shiksha Abhiyan, a two-pronged gender strategy has been adopted, to make the
education system responsive to the needs of the girls through targeted interventions which serve as a pull
factor to enhance access and retention of girls in schools and on the other hand, to generate a community
demand for girls’ education through training and mobilization. (iv) SSA works in a convergent mode with the
Integrated Child Development Scheme (ICDS) to promote pre-school education by providing for training of
Anganwadi workers, primary school teachers, and health workers for a convergent understanding.
• Minority Women: MoMA with MoWCD has proposed a Gender Action Plan for women belonging to minority
communities. MoMA is developing a new scheme for Leadership Development of Minority Women.
• Rights of Tribal Women: Under the Scheduled Tribes and Other Traditional Forest Dwellers Act, 2006,
there is a provision where rights conferred shall be registered jointly in the name of both the spouses. The
Act ensures that the rights of the forest dwelling tribal women over forest land and other resources have to
be registered jointly in the name of both the spouses.
 Women and Child Development 251

11.35. Central Adoption Resource Agency “review and restructure” CSWB “in the light of
(CARA): The Agency was set up in 1990 to current requirement”. This is yet unfulfilled.
work as an autonomous body in facilitating in
country and inter country adoptions. It regulates
and monitors the working of recognised
agencies engaged in in-country and inter- Recommendations:
country adoptions. Given the sensitive nature of
adoption, the agencies should ensure regular • Evaluation of the structure, role and working
scrutiny of their procedures. The norms which of the CSWB, critically examining its
require a long waiting period need to be revised present day relevance and rationale.
and similarly the courts also need to accelerate
their actions in adoptions cases. As against the • If the Board is to continue, weed out
target of 10,000 adoptions to be affected during unfruitful schemes and restructure others to
the first two years of the Eleventh Plan the make them more relevant, with effective
achievement has been 6,254. In a country measurable outcomes.
where there are so many abandoned children • Estimate realistic financial norms and
innumerable living in distressed circumstances provide appropriate funds.
and available for adoption and couples with no
children this number is too little. THE ROAD AHEAD

Recommendations: 11.37. A few systemic changes were made

during the Eleventh Plan but much more needs
• Since adoption is a sensitive matter, ensure to be done if we are to achieve its targets and
regular scrutiny of adoption agencies. objectives. Some schemes envisaged in the
• Revise the adoption processes and norms Plan have not begun; others are being
to reduce the red tape and long waiting formulated or awaiting approval. There is need
period. to expedite this process and ensure that the
new schemes are implemented and other steps
• As the Central Authority ensure that CARA detailed below are taken with immediate effect
is responsible, responsive and extra to ensure that we do not fall short of the
vigilant. promises made in the Plan.
• NGOs engaged in running foster
homes/adoption agencies should not be 1. New Schemes:
members of the Adoption Committees to
avoid conflict of interest. 11.38. A. Rajiv Gandhi Scheme for
Empowerment of Adolescent Girls
Central Social Welfare Board (CSWB): (RGSEAG): The morbidity and mortality rates
for women and children have shown limited
11.36. The Board was set up in 1953 with the improvement. Since, health and wellbeing of a
objective of promoting social welfare activities new born is intrinsically linked to the health of
and implementing welfare programmes for her mother, improvements in nutritional
women, children and the handicapped through standards of girl children are essential to break
voluntary organisations. In recent times the inter-generational cycle of malnutrition. The
CSWB’s role and functioning has been scheme aims at empowering adolescent girls
extensively debated. Though it is alleged that along with improving their nutritional and health
majority of CSWB schemes are under funded, status. It is in the process of approval with an
the Board is unable to spend even the small allocation of Rs.4,500 crores.
amount allocated. Of the Eleventh Plan outlay
of Rs.260 Crore, 83 per cent was spent during B. Relief to and Rehabilitation of Rape
the first three years. CSWB’s physical Victims: In 1996 the Hon’ble Supreme Court
achievements have been unsatisfactory. A had directed the National Commission for
commitment was made in the Eleventh Plan to Women (NCW) to evolve a scheme to ensure
rehabilitation of victims of sexual assault. A
252 Mid-Term Appraisal of the Eleventh Five Year Plan

scheme known as “Relief to and Rehabilitation expected to ensure better convergence,

of Rape Victims” has finally been formulated. monitoring and mainstreaming a gender
The scheme envisages a relief package of upto perspective in the functioning of all Ministries
Rs.3 Lakhs to the survivor. It has to be finalised and departments.
and launched immediately.
11.39. NGOs are the main implementers of our
C. Conditional Maternity Benefit Scheme schemes at the district level. Evidence shows
(CMBS): The Eleventh Plan had committed to they have been instrumental in developing
Conditional Maternity Benefits. The idea was to techniques for the welfare of women and
provide cash to the pregnant woman children and in evaluating existing schemes.
immediately before and after delivery to ensure Thus, there is a need to build a comprehensive
that she receives adequate rest, nutrition and is and a well defined space for this sector,
able to breastfeed her child. It was meant to besides, ensuring timely release of funds to
compensate for any loss of income that might them, a problem highlighted at every
occur when the woman had to go for regular Consultation. With the help of NGOs a third-
check-ups, take rest or nurse her child. Known party monitoring mechanism can be initiated to
as “Indira Gandhi Matritva Sahyog Yojana ensure transparency and accountability. The
(IGMSY)” the scheme is yet to be implemented information, regarding grants sanctioned by the
through the ICDS infrastructure. It is imperative Government to NGOs should be placed on the
that the CMBS has minimum transactions and web and be tracked through maintenance of an
conditions attached to it, and is launched at the online database.
earliest. Provision of Rs.4,500 crore has been
made in the Eleventh Plan. 11.40. Currently, government schemes and
programmes for women are based on the
D. National Mission for Empowerment of Women’s Empowerment Policy 2000 which
Women: Following the President of India’s drew on the Status of Women Report (1974)
address to the Parliament in June 2009, a and the Shram Shakti Report (1992-93). Thus
scheme titled ‘National Mission for Socio- they miss out on the current situation of women

Box 11.3
Recommendations for other Ministries

• Devise a specific scheme for identifying and helping women in states where agrarian crises have ravaged
families. (Agriculture)
• Promote women’s empowerment, especially in areas where the female sex ratio is low. This could entail
special tax incentives for women headed enterprises, women employees, firms employing more women and
women’s entrepreneurial ventures. (Finance, Industrial Policy)
• Work towards mainstreaming women in new and emerging areas of the economy through necessary skill
and vocational training and technology education. Work towards a social security policy that mitigates the
negative impact of globalisation on women. Encourage public private partnerships and corporate social
responsibility programmes for women’s training, capacity building and empowerment. (Labour, Education,
Commerce)
• Ensure that wage works conducive to women and their skills are included under NREGA. Guarantee that if
they demand, women will be provided employment opportunities under NREGA. (Rural Development)
• Take appropriate steps to ensure that the slum dwellers, especially women, do not lose access to livelihood
opportunities and basic amenities as a consequence of beautification etc. Provision of clean drinking water,
toilets and sanitation in urban slums is be an important challenge for ensuring gender justice. (Urban
D l )
Economic Empowerment of Women’ is being and the fresh problems that have emerged in
developed to achieve inter-sectoral the changed global scenario. Problems faced
convergence and oversee implementation of by women living in conflict zones, experiencing
schemes/programmes for socio-economic internal displacement or dealing with the
upliftment of women in a mission mode. This is increasing frequency of disasters are therefore
 Women and Child Development 253

left unaddressed. The Eleventh Plan had devolved to the states. The entire paradigm of
recognised these new vulnerabilities and needs having multiple schemes needs to be thought
but in order to tackle them it is vital for the over. Another option that can be explored is a
Ministry of WCD to conduct a periodic large umbrella scheme for women’s
assessment of the status of women. This is empowerment and protection with a basket of
important to not just carry forward the Eleventh components that the states could choose from
Plan commitments but to also measure the instead of multiple schemes. Given that a lot of
progress made against these commitments and schemes have under utilised their allocation,
to identify the need for fresh initiatives. realistic cost norms need to be set.

11.41. Following the suggestions of the 11.45. Every Consultation expressed the
Planning Commission to focus on issues of urgency of generating awareness about
women in conflict zones and internally schemes among the common people.
displaced women, the remaining two and a half
years should concentrate on constituting a 11.46. The Eleventh Plan talked of a
“National Task Force” on violence against comprehensive review through a High Level
women and establishing special courts as a Committee to analyse the efficacy of the SHG
redressal mechanism for providing speedy model. Often the SHG model is treated as a
justice. panacea for all problems and hence it needs to
be carefully examined.
11.42. A very progressive legislation on
11.47. Women and Media – Harnessing multi
Domestic Violence was enacted in 2005 but the
media for the benefit of women. Aggressive and
benefits of the legislation have not yet reached
proactive utilisation of this platform should be
the women and children survivors. This is
done to change the recalcitrant mindsets of
perhaps due to the lack of information and
society. A media unit should be set up with the
mechanisms to enforce the law. In the next half
participation of professional media consultants
plan period, DVA should actually be
and women’s media groups.
implemented. Translating the law into regional
languages and information dissemination 11.48. A policy should be framed for single
through media and IEC activities should be women, who constitute a significant per
done. The community should be involved centage of the population and face their own
besides sensitising the main service providers unique problems.
like the police force and courts. Government
should assist states in appointing independent CONCLUSION
Protection Officers and building their capacity.
Regional Consultations have revealed that the 11.49. The Eleventh Plan adopted a gender
Act in its current form is not accessible to rural lens to initiate a process of systemic
women. This lacuna needs to be filled. improvement in the lives of women and
children. But the Mid Term Appraisal reflects
11.43. Implementation of women related that while certain sectors have shown
legislations: Prevention of Sexual Harassment remarkable improvement, others are lagging
Bill, ITPA and Women’s Reservation Bill have behind. Since only 35.84 per cent of the
fallen to the wayside in a welter of views. They Eleventh Plan outlay has been allocated for the
should be passed in the current plan so that first three years of the five year plan period,
Twelfth Plan can take measures to oversee efforts must be made to realize the full outlay of
their implementation. the Eleventh plan by allocating the remaining
64.16 per cent during the next two years of the
11.44. The entire perspective behind the plan. Schemes for single and internally
scheme formulation and implementation needs displaced women, domestic workers, minority
to be reviewed. While the possibility of women, to name a few, did not find a voice in
converting the Central Sector Schemes of the first half of Eleventh Plan. Efforts must now
MoWCD to Centrally Sponsored Schemes can focus on ensuring that the resources rigorously
be explored, the responsibility of work towards the implementation of recent
implementation and monitoring can be further
254 Mid-Term Appraisal of the Eleventh Five Year Plan

schemes and preparation of new ones to fill the schemes and to transfer responsibility of
gaps. implementation to the states could be explored.
Efforts need to be made to generate flexibility of
11.50. Concerted, focused and outcome norms to address critical needs at community
oriented efforts to address malnutrition during level by creating a flexi pool of resources.
the critical window for development of children Schemes should be funded with realistic cost
under two and tackling anaemia amongst norms. Dissemination of information about
women in the reproductive age group are existing schemes is also not adequate and this
required to ensure that the Eleventh Plan goals deficiency should be remedied.
are achieved. The possibility of converting the
schemes of MoWCD to Centrally Sponsored
 Women and Child Development 255

ANNEXURE-I

MINISTRY OF WOMEN AND CHILD DEVELOPMENT

MID-TERM REVIEW OF SCHEMES IN THE ELEVENTH PLAN - FINANCIAL STATEMENT
(Rs.in Crores)
Sl. Schemes/ Programmes 2007 - 2007-08 2007-08 2008-09 2008-09 2008-09 2009-10 2009 - Outlay
No 2012 10 for 2010-
11
NDC Annual Expendit Annual Annual Expendit Annual Exp.
approved Plan ure Plan Plan ure Plan (BE) App. as
11th Plan outlay outlay (RE) on
(BE) (BE) (31.03.2
010)
1 2 3 4 5 6 7 8 9 10
CENTRAL SECTOR
A
SCHEMES
(a) Child Development
1 RGN Crèche Scheme 550.00 100.00 100.00 100.00 100.00 87.50 100.00 99.4 70
National Institute of Public
2 Cooperation for Child 35.00 6.50 6.50 20.00 8.00 7.65 10.00
Development (NIPCCD) 6.70 10.00
National Commission for
3 Protection of Child Rights 35.00 10.00 5.40 7.00 7.43 5.68 7.00
(NCPCR) 5.10 9.50
Integrated Scheme for
4 15.00 10.00 9.39 12.50 11.34 10.00
Street Children 3.35 0.00
5 Shishu Greh Scheme 5.00 3.00 2.43 2.80 2.01 3.00 1.96 0.00
20.00
Scheme for the Welfare of
6 Working children in need 10.00 7.00 5.92 8.50 8.38 7.00
of care and Protection 9.50 12.50
Child Adoption Resource
7 5.00 2.00 0.78 2.00 1.40 1.25 2.00
Agency (CARA) 0.43 2.00
Conditional Cash Transfer
scheme for the girl child
8 80.00 15.00 0.00 10.00 10.00 5.95 10.00
with Insurance cover
(Dhan Lakshmi) 5.00 10.00
Total A(a) 735.00 153.50 130.42 159.00 150.63 129.76 149.00 131.98 114.00
Women Development
(b)
Working Women Hostel
9 75.00 15.00 2.40 20.00 11.00 2.40 10.00
(WWH) 9.40 15.00
Support to Training and
10 Employment Programme 100.00 20.00 17.03 37.00 27.00 16.02 15.00
for Women (STEP) 12.29 25.00
National Commission for
11 25.00 5.00 4.03 5.00 5.00 3.87 5.00
Women (NCW) 4.85 5.00
Rastriya Mahila Kosh
12 108.00 12.00 12.00 31.00 31.00 31.00 20.00
(RMK) 16.00 15.00
13 Swadhar 108.00 15.00 13.00 20.00 15.00 14.93 15.00 14.97 34.21
Comprehensive scheme
for combating trafficking
14 30.00 10.00 0.00 10.00 6.00 4.37 5.00
of women and children
(Ujjawala) 4.99 10.00
Relief to and
15 Rehabilitation of Rape 25.00 1.00 0.00 40.00 5.00 0.00 59.00
Victims 0.00 40.00
Gender Budgeting &
16 Gender Disaggregated 20.00 3.00 0.00 3.00 1.30 0.29 2.00
data 0.29 2.00
GIA to Central Social
17 260.00 55.00 42.36 55.00 56.92 39.20 55.00
Welfare Board (CSWB) 54.96 80.00
18 Priyadarshini Scheme 95.00 10.00 0.00 23.00 23.00 0.00 27.00 0.04 29.79
Total A (b) 846.00 146.00 90.82 244.00 181.22 112.08 213.00 117.79 256.00
(c) Other Schemes
256 Mid-Term Appraisal of the Eleventh Five Year Plan

Sl. Schemes/ Programmes 2007 - 2007-08 2007-08 2008-09 2008-09 2008-09 2009-10 2009 - Outlay
No 2012 10 for 2010-
11
NDC Annual Expendit Annual Annual Expendit Annual Exp.
approved Plan ure Plan Plan ure Plan (BE) App. as
11th Plan outlay outlay (RE) on
(BE) (BE) (31.03.2
010)
1 2 3 4 5 6 7 8 9 10
GIA for Research,
19 15.00 3.50 0.53 4.12 1.58 2.00
Publication & Monitoring 0.66 2.00
GIA for Innovative Work 11.00
20 on Women & Child 20.00 7.00 2.39 6.88 1.54 3.00
Development 0.80 2.00
Information, Mass Media
21 75.00 15.00 13.86 48.00 58.00 48.15 50.00
and Publication 20.09 50.00
Information Technology
22 5.00 1.00 0.59 2.00 1.00 0.68 1.00
(IT) 1.30 2.00
Nutrition Education
23 50.00 7.00 8.24 10.00 10.07 4.85 10.00
Scheme (FNB) 9.09 12.00
Total A(c) 165.00 33.50 25.61 71.00 80.07 56.80 66.00 31.94 68.00
Total - A (a+b+c) 1,746.00 333.00 246.85 474.00 411.92 298.64 428.00 281.71 438.00
B -1 CENTRALLY SPONSORED SCHEMES
Child Development
24 ICDS 44,400.00 5,293.00 5,257.22 6,300.00 6,300.00 6,376.94 6,705.00 8,155.44 8,700.00
Scheme for Prevention
25
and Control of 7.93 0.00
25.00 21.00 22.12 20.00 22.00 21.14 20.00
Juvenile Social Mal-
adjustment 0.00 0.00
26 ICPS 1,073.00 95.00 0.00 200.00 60.00 0.00 60.00 42.64 300.00
27 NNM 1.00 0.10 0.00 1.00 1.00 0.00 1.00 0.00 1.00
Total B(a) 45,499.00 5,409.10 5,279.34 6,521.00 6,383.00 6,398.08 6,786.00 8,206.01 9,001.00
WOMEN
b)
DEVELOPMENT
28 Swayamsidha 500.00 50.90 23.31 200.00 50.08 0.00 20.00 0.00 5.00
Total B (b) 500.00 50.90 23.31 200.00 50.08 0.00 20.00 0.00 5.00
Total B-1(a+b) 45,999.00 5,460.00 5,302.65 6,721.00 6,433.08 6,398.08 6,806.00 8,206.01 9,006.00
B-2 New Schemes
Scheme for Leadership
29 Development of Minority 20.00 - 0.00 5.00 5.00 0.00 1.00
Women 0.00 0.00
Rajiv Gandhi Scheme for
30 - 110.00
Adolescent Girls 0.00 1,000.00
Conditional Cash Transfer
31 scheme for Maternity 9,000.00 - 0.00 4.00
Benefit Scheme 0.00 390.00
National Mission for
32 1.00
Empowerment of Women 0.00 40.00
126.00
33 ICDS- IV (World Bank)
(88 EAP)
Total B-2 9,020.00 0.00 0.00 5.00 5.00 0.00 116.00 0.00 1,556.00
Total B 55,019.00 5,460.00 5,302.65 6,726.00 6,438.08 6,398.08 6,922.00 8,206.01 10,562.00
Grand Total A + B 56,765.00 5,793.00 5,549.50 7,200.00 6,850.00 6,696.72 7,350.00 8,487.72 11,000.00
 Women and Child Development 257

ANNEXURE-II

MINISTRY OF WOMEN AND CHILD DEVELOPMENT

PHYSICAL PERFORMANCE

Schemes / Physical Physical Physical Physical Physical

S.No. Indicators Target Progress Target Progress Target
Programmes
2007-08 2007-08 2008-09 2008-09 2009-10
1 2 3 4 5 6 7 8
1 RGN Crèche No. of new/old crèches 31,718 31,718 31,718 31,718 31,718
Scheme to be assisted
2 National Institute of No. of 3,950 6,602 3,950 9,059 5,000
Public Cooperation trainees/participants
for Child sensitized and trained
Development
(IPCCD)
3 Central Adoption No of Adoptions 5,000 3,264 5,000 2,933 * 3,200
Resource
Agency(CARA)
4 Conditional Cash No. of Beneficiaries in Not fixed as scheme was 10,1970 79,555 1,05,029
Transfer for the girl 11 blocks launched in March 2008 (complete
child with proposals
Insurance cover - were not
Dhanalaxmi received
from 3
blocks)
5 Working Women No. of beneficiaries Nil 500 933
Hostel(WWH)
6 STEP No. of Beneficiaries 40,000 39,055 70,000 31,865 30,000
7 As on 31.3.2009, loans sanctioned - Rs. 280.03 cr; loans disbursed - Rs. 223.70 crores and
Rastriya Mahila No. of beneficiaries - 6, 58,746 poor women.
Kosh (RMK) During 2008-09, loans sanctioned - Rs. 30.30 crores, loans disbursed - Rs.26.48 crores and
No. of beneficiaries - 36,166 poor women.
8 No. of women 5,000 10,860 15,000 15,360 20,000
Swadhar beneficiaries
No. of New Homes 46 81
9 "Ujjawala" - A No. of Projects 65 79 50
Comprehensive No. of Beneficiaries 3,250 3,950 2,500
scheme for Launched in Dec., 2007
combating &
trafficking
10 Gender Budgeting No. of Training and 20 20 40
& Gender Capacity Building
Launched In Dec., 2007
Disaggregated No. of Trainees 340 340 650
Data
11 No. of Homes to be 270 339 384 384
Short Stay Home sanctioned 339
No. of Beneficiaries 13,560 13,560 27,648
12 Condensed Course No. of Courses 629 800 713 800
of Education for
adult women 800
13 Awareness No. of Camps 6,000 5,436 6,000 5,282 6,000
Generation No. of beneficiaries 90,000 1,50,000 1,32,050 1,50,000
Programme
14 No. of functionaries 14,356 15,980 15,000 16,860
sensitized/trained 15,980
Nutrition Education
No. of people 1,38,600 1,38,600 1,35,600 1,10,160
Scheme (FNB)
benefited from
demonstration 1,38,600
15 No. operational ICDS 6,237 6,070 7,076 6,120 7,073
Integrated Child
Projects
Development
No. of operational 10.10 lakhs 10.13 lakhs 12.65 lakhs 10.44 lakhs 13.56 lakhs
Services (ICDS)
Anganwadi Centres
258 Mid-Term Appraisal of the Eleventh Five Year Plan

Schemes / Physical Physical Physical Physical Physical

S.No. Indicators Target Progress Target Progress Target
Programmes
2007-08 2007-08 2008-09 2008-09 2009-10
1 2 3 4 5 6 7 8
No. of children 830.00 712.23 lakhs 954 lakhs
beneficiaries lakhs
(6 months - 6 years) of
722.00 843.27 lakhs
Supplementary
lakhs (Both (Both
nutrition (In lakhs)
children and children and
No. of women 175.00 lakhs 143.31 lakhs 201 lakhs
women) women)
beneficiaries of
Supplementary
nutrition (In lakhs)
No. of children 344.00 339.11 lakhs 398.00 lakhs 330.34 lakhs 458 lakhs
beneficiaries (3 years -
6 yrs.) of pre-school
education (in lakhs)
* Likely to increase as information from some of the agencies is awaited)
 12
Rural Development
12.1. India’s battle against rural poverty is new and unprecedented. MGNREGA enjoins
being fought on many fronts simultaneously, the state to provide a guarantee of employment
with major schemes tackling one or more for 100 days every year to each rural household
aspects of the challenge. The total budgetary that demands work. It also demands of the
allocation for all rural development programmes people that they participate actively in the
by the Government of India in 2009-10 was design and implementation of the programme.
Rs.74,270 crores which accounted for 31 per The programme started in February 2006 in the
cent of the total Central Budget Plan provision. 200 most backward districts of India. It was
Rural development programmes cover extended to an additional 130 districts in the
employment programmes such as Mahatma first year of the Eleventh Plan in 2007-08 and to
Gandhi National Rural Employment Guarantee the entire country in 2008-09. A brief overview
Act and the Swarnjayanti Gram Swarozgar of the performance of MGNREGA is provided in
Yojana, housing via the Indira Awaas Yojana, Table 12.1.
sanitation via the Total Sanitation Campaign,
provision of drinking water via the National 12.4. The works undertaken through
Rural Drinking Water Programme (described in MGNREGA give priority to activities related to
the Chapter on Water Resources), watershed water harvesting, groundwater recharge,
development via the Integrated Watershed drought-proofing, as also the problem of floods.
Management Programme (described in the Its focus on eco-restoration and sustainable
Chapter on Agriculture), road connectivity via livelihoods implies that its success should spur
the Pradhan Mantri Grameen Sadak Yojana private investment by farmers on their lands.
(described in the Chapter on Transport), This would lead over time to an increase in land
electrification via the Rajiv Gandhi Grameen productivity generating a natural demand for
Vidyutikaran Yojana (described in the Chapter labour which would automatically reduce
on Energy) and social security via the National dependence on MGNREGA as a source of
Social Assistance Programme, the Indira work. If it can strengthen Panchayati Raj as it is
Gandhi National Widow Pension Scheme and meant to, MGNREGA has profound significance
the Indira Gandhi National Disability Pension for deepening democracy and governance
Scheme. reform, especially in the remote hinterlands of
India, where the democratic fabric has come
12.2. This Chapter reviews many of these under strain in recent years.
initiatives, with special reference to progress in
the Eleventh Plan period. 12.5. Over the last four years, MGNREGA’s
performance compares favourably with any
Mahatma Gandhi National Rural other anti-poverty initiative India has ever
Employment Guarantee Act undertaken. It is estimated that in 2009-10,
nearly 5 crore families would be provided
12.3. The MGNREGA has led to the largest
around 300 crore mandays of work under the
employment programme in human history and
programme. This is more than three times the
is unlike any other in its scale, architecture and
employment created by the rural employment
thrust. Its bottom-up, people-centred, demand-
programme in 2006-07. In four years, the
driven, self-selecting, rights-based design is
260 Mid-Term Appraisal of the Eleventh Five Year Plan

Table 12.1
Overview of MGNREGA Performance, 2006-10
2006-07 2007-08 2008-09 2009-10 (till
(200 (330 (615 September;
districts) districts) districts) 619 Districts)
Households Employed (crore) 2.10 3.39 4.51 3.26
Mandays of Employment 90.50 143.59 216.32 128.24
generated (crore)
Work Provided per year to 43.00 42.00 48.00 39.00
Households who worked (days)
Central Release (Rs. crore) 8,640.85 12,610.39 29,939.60 16,006.23
Total Funds Available (including 12,073.55 19,305.81 37,397.06 28,664.31
Opening Balance) (Rs. crore)
Budget Outlay (Rs. crore) 11,300.00 12,000.00 30,000.00 39,100.00
Expenditure (Rs. crore) 8,823.35 15,856.89 27,250.10 15,737.40
Average Wage per day (Rs.) 65.00 75.00 84.00 88.00
Total Works taken up (lakhs) 8.35 17.88 27.75 25.21
Works completed (lakhs) 3.87 8.22 12.14 6.39

programme has provided nearly 600 crore work given to those who got any work. The
mandays of work at a total expenditure of national average intensity of work was 48 days.
around Rs.70,000 crores. As many as 15 states fall below the national
average. Only 14 per cent worker households
12.6. The share of Scheduled Castes (SC) completed 100 days of work.
and Scheduled Tribes (ST) families in the work
provided under MGNREGA over the previous 12.8. It is relevant to ask whether relatively
four years has ranged between 51-56 per cent low provision of work reflects lack of demand or
and 41-50 per cent of workers have been ineffectiveness in being able to meet demand.
women. As many as 8.50 lakh differently-abled In certain States, the low number of days of
workers have so far been registered for work. work is almost certainly a reflection of the
Nearly 9 crore bank/post office accounts of our universalisation of the programme to the whole
poorest people have been opened for country which led to the inclusion of districts
MGNREGA payments. Around 85 per cent of where the need and demand for MGNREGA
MGNREGA payments are made through this work is low (Kerala and Punjab are examples of
route, an unprecedented step in the direction of this). But there are many states where demand
financial inclusion. was expected to be high but which have not
performed well – such as the high out-migration
Performance across States states of Orissa and Bihar, as also states such
as Uttarakhand and Karnataka, which appear to
12.7. Table 12.2 provides a comparative
have not given the due attention to energise
picture of MGNREGA performance across
MGNREGA. It should be possible to form a
states in 2008-09, the first year when the
judgment on this if States start maintaining data
programme was extended across the entire
on how many failed to get work of those who
country for which we have data available for the
asked for it.
whole year. One indicator of the success of a
demand-driven programme would be its
12.9. One way of assessing the relative
coverage of those asking for work.
performance of different States is to compare
Unfortunately States have not maintained a
the share of States in mandays generated
record of those asking for work but who did not
under MGNREGA with their share in rural BPL
get it. This makes it difficult to judge the quality
households in India. It is reasonable to assume
of the guarantee element in MGNREGA, its
that a State’s share in mandays of work
most powerful distinguishing feature. Another
generated nationally should be commensurate
indicator of success is the intensity of work
with its share in rural BPL households. Such
provided, which refers to the number of days of
 Rural Development 261

Table 12.2
State-wise MGNREGA Performance in 2008-09
Average Days
of Work
Provided per Households
Households Mandays of Expenditure Provided with
No. State who got Work Work (Lakhs) (Rs. Crore) Work (Lakhs)
1 Rajasthan 76 4,827 22% 6,171 23% 63 14%
2 Mizoram 73 125 1% 159 1% 2 0%
3 Nagaland 68 203 1% 272 1% 3 1%
4 Manipur 64 237 1% 300 1% 4 1%
5 Tripura 60 328 2% 452 2% 5 1%
6 Madhya Pradesh 57 2,947 14% 3,551 13% 52 12%
7 Chhattisgarh 55 1,244 6% 1,434 5% 23 5%
8 Arunachal Pradesh 54 14 0% 15 0% 0 0%
9 Uttar Pradesh 54 2,341 11% 3,582 13% 43 10%
10 Sikkim 49 25 0% 44 0% 1 0%
11 Andhra Pradesh 48 2,735 13% 2,964 11% 57 13%
12 Jharkhand 48 750 3% 1,327 5% 16 4%
13 Himachal Pradesh 46 204 1% 332 1% 4 1%
14 Maharashtra 45 400 2% 338 1% 9 2%
15 Haryana 43 69 0% 110 0% 2 0%
16 Assam 40 749 3% 950 4% 19 4%
17 Meghalaya 38 86 0% 89 0% 2 1%
18 Tamil Nadu 38 1,199 6% 1,004 4% 31 7%
19 Jammu & Kashmir 36 61 0% 66 0% 2 0%
20 Uttarakhand 35 104 0% 136 1% 3 1%
21 Orissa 35 381 2% 597 2% 11 2%
22 Karnataka 32 289 1% 358 1% 9 2%
23 Punjab 31 40 0% 72 0% 1 0%
24 West Bengal 26 764 4% 911 3% 30 7%
25 Bihar 26 991 5% 1,320 5% 38 9%
26 Gujarat 25 213 1% 196 1% 9 2%
27 Kerala 22 154 1% 224 1% 7 2%
All India 48 21,479 100% 26,975 100% 445 100%
States would fall on the 45 degree line in Figure organisational and institutional capabilities, as
12.1. States which lie above the 45 degree line also in attention paid to MGNREGA.
are doing better than expected and those below
this line can be said to be underperforming. On 12.10. A major reason for poor performance in
this basis, Uttar Pradesh and Bihar emerge as states where poverty is otherwise high, could
the worst performers as their share in rural BPL be the lack of awareness among potential
households is about 10 per cent higher than MGNREGA workers regarding their
their share in employment generated under entitlements and about the unique architecture
MGNREGA. West Bengal, Orissa, Madhya of the Act. The belief among the rural poor that
Pradesh, Gujarat and Karnataka show a similar they will get work only when government
5 per cent gap. On the other hand, Rajasthan decides to “open” work is still prevalent in many
and Andhra Pradesh have a much higher share areas. Without a dedicated cadre of social
in work generated under MGNREGA than their mobilisers at the Gram Panchayat (GP) level to
share in national rural poverty. This differential make people aware of the unique demand-
performance reflects differences in driven character of MGNREGA, this situation
will prove hard to change.
262 Mid-Term Appraisal of the Eleventh Five Year Plan

Figure 12.1
Share of States in Rural BPL Households
vs. Share of States in Mandays of Work under MGNREGA in 2008-09

25
RA
%Persondays Employment Generated
15 20

MA
AP

UP
10

CHTN
BI
5

AS WB

ORMP
KR
KE GU
PU
0

0 5 10 15 20 25
% Rural Poor

12.11. An interesting aspect of the uneven 12.13. Experience thus far suggests that the
performance across States is the coverage of quality of works undertaken in MGNREGA has
women. Kerala, Tamil Nadu and Rajasthan yet to come up to expectations both in terms of
provided more than two-thirds of their work to PRI involvement and also in terms of technical
women (Table 12.3). On the other hand, nine soundness of design. Work priorities in many
states failed to meet the stipulated one-third states tend to follow orders from the state or
mark for women workers. The worst performers district level rather than reflecting the needs
were Jammu and Kashmir (6 per cent) and and aspirations of the community. The required
Uttar Pradesh (18 per cent). technical input is also inadequate. Part of the
problem is the lack of supporting technical staff.
Quality of Works During 2009-10 (upto September 2009), 25.21
lakh works have already been taken up under
12.12. A critical issue in evaluating MGNREGA
MGNREGA, which will increase further in the
relates to the quality of the work executed. The
course of the year. But, there are only 21,533
great hope (as reflected in the main objectives
Engineers/Technical Assistants (TAs) in
of the Act) was that greater water security and
position to execute these works. It means that
drought and flood proofing would be realised.
an average of 117 works per Engineer/TA.
The Act requires the choice of work to be made
Managing overwhelming numbers could be one
by the PRIs in order to ensure ownership by the
of the reasons why a high percentage of works
community and so that works reflect their needs
is left incomplete. The total number of works
and priorities. However, for the works to lead to
taken up under MGNREGA from February 2006
the creation of truly productive assets they need
to September 2009 was over 79 lakhs but only
to be well planned with adequate technical
31 lakh i.e., 39 percent were completed.
support. This demands a harmonious blending
Demanding programme like MGNREGA
of plans made by PRIs with a broad framework
requires full-time, dedicated staff. But it is
provided by district and state level agencies.
observed that while Programme Officers are in
While there have been a few successes in this
place in most blocks, many of these are holding
regard, these remain oases of excellence.
“additional charge”. A demanding programme
like MGNREGA requires full-time, dedicated
staff.
 Rural Development 263

12.14. It is also clear that without a dedicated and creation of sustainable livelihoods on
cadre of social mobilisers, the participation of the foundation of the water infrastructure
the marginalised – SC/STs, women and the created through MGNREGA
poor -- will remain peripheral to decision-
• Ensure measurement of works is more
making in Gram Sabhas and Gram Panchayats.
timely, thereby overcoming the major cause
While the target of one Employment Guarantee
of delays in payment.
Assistant (EGA) has just about been achieved,
what is required is at least one EGA per village,
Table 12.3
especially in blocks where there is high demand
Coverage of Women under MGNREGA,
for MGNREGA work. In addition, one “barefoot”
2008-09
social mobiliser would be needed in each
Women as
village for awareness generation, facilitating
per cent of
demand for work, thrashing out social aspects State
Persons
of micro-planning, forming and mobilising Employed
vigilance committees, helping in social audits, 1 Kerala 85
grievance redressal and conflict resolution. 2 Tamil Nadu 80
There is also a case for a barefoot engineer at 3 Rajasthan 67
the village level who works under the guidance 4 Andhra Pradesh 58
of the Technical Assistants to help out with the 5 Tripura 51
technical surveys and readings, worksite 6 Karnataka 50
layouts and maintenance of technical records. 7 Chhattisgarh 47
8 Maharashtra 46
12.15. The best way of ensuring that adequate 9 Manipur 46
human resources are made available is to 10 Gujarat 43
stipulate that a definite proportion of the 6 per 11 Madhya Pradesh 43
cent now allotted for administrative costs is 12 Meghalaya 41
spent on professional support at the block level 13 Orissa 40
and below. Since not more than 3 per cent of 14 Himachal Pradesh 39
administrative costs on average are being 15 Sikkim 38
utilised currently, there is ample scope to 16 Uttarakhand 37
improve performance if this money were to be 17 Mizoram 37
properly utilised. The States should have 18 Nagaland 37
flexibility in exactly how they spend this amount. 19 Haryana 31
20 Bihar 30
12.16. One way could be to deploy three 21 Jharkhand 29
Cluster Level Teams of sufficient personnel – 22 Assam 27
both technical and those involved in social 23 West Bengal 27
mobilisation – in each cluster of roughly 30 24 Arunachal Pradesh 26
villages (each block in India covers an average 25 Punjab 25
of 90 villages). Such a cluster would also 26 Uttar Pradesh 18
correspond broadly to the boundaries of milli- 27 Jammu & Kashmir 6
watersheds and aquifers, which must become All India 48
the basis of planning works under MGNREGA.
Each Cluster Level Team would service all the
GPs within its cluster. It is important to hire 12.17. The social mobilisers would:
professionals from the open market, following
established procedures for high-quality • Help generate greater awareness among
recruitment. The technical personnel would MGNREGA workers about their
entitlements thus creating more demand for
• Make bottom-up planning more effective work and
and support development of plans for • Strengthen the process of social audits,
convergence that could potentially result in thereby creating greater transparency and
improvements in agricultural productivity accountability in the program
264 Mid-Term Appraisal of the Eleventh Five Year Plan

Capacity Building for MGNREGA of adequate technical staff at the block level.
Besides, there are also bottlenecks in the flow
12.18. To implement the above reform it will be
of funds through the system, at times (as in
necessary to develop the required capacities.
Orissa) because data on the Management
However, we neither have enough people
Information System (MIS) is not being filled up
available with requisite skill-sets nor do existing
in time.
personnel have the necessary capacities,
especially at the cutting-edge level of
12.22. The MIS currently used by MGNREGA
MGNREGA implementation. For example, we
is one of the best we have ever had. More than
need nearly 6 lakh Employment Guarantee
2 crore muster rolls and nearly 9 crore job cards
Assistants and over 50,000 each of Social
have been placed online. There is however,
Mobilisers and Technical Assistants. This
scope for further improvement as shown by the
requires a national effort to build capacities of
software used in Andhra Pradesh. For instance,
MGNREGA functionaries at the block-level and
the present MGNREGA MIS used in most
below.
states is not able to raise an alert on delays in
wage payments because data are normally
12.19. To build capacities, the Government
updated post-facto. By contrast, wage
could seriously consider recognising a one-year
payments in Andhra Pradesh are increasingly
diploma course on MGNREGA, conducted by
being made within a week of completion of the
the whole range of government and non-
previous week’s work (see Box 12.1). All States
government training institutions spread across
need to move in that direction.
the country. At least 1 out of the 6 per cent
administrative costs needs to be mandatorily
Social Audits
earmarked for capacity building. This is the
standard practice in most large programmes 12.23. Initially it appeared that instances of
(Integrated watershed Development corruption under MGNREGA were less frequent
Programme provides 5 per cent of total project than in similar programmes in the past. But it
cost). MGNREGA is perhaps our only major appears that the “system” has fairly quickly
programme that does not stipulate a precise devised creative ways around MGNREGA
amount to be spent on capacity building. safeguards. There are instances both of “elite
capture” of job cards and of fake muster rolls
12.20. In addition, the National Institute of resulting in leakages to vested interests. The
Rural Development (NIRD) and State Institute problem has been compounded because
of Rural Development (SIRD), as well as workers are unable to travel long distances to
Capacity for Advancement of People’s Action get their payments from banks/post offices
and Rural Technology (CAPART), should be (POs), where they also face harassment at the
revamped, so that they work in partnership with hands of undoubtedly overworked officials. In
experienced civil society institutions in order to such cases, especially common in sparsely
lead the national training effort. Major inputs are populated tribal areas, “middlemen” have
required for the programme from agencies such stepped in. They get hold of job cards of
as the National Rainfed Areas Authority workers unable to travel to banks and in alleged
(NRAA), especially in the rainfed dry-lands of collusion with bank officials swindle the money.
India. Cases have also been reported where powerful
middlemen cornered ATM cards issued by
Delays in Payments: Use of IT banks to MGNREGA workers and drew out
cash from ATM counters. Thus, a measure to
12.21. Delays in wage payments have
reduce corruption (ban on payments in cash
emerged as the most frequently heard
and mandatory account opening of MGNREGA
complaint under MGNREGA. At times
workers) has not yielded the expected results
payments have not been made even after nine
mainly because of inadequate density of
months and workers are rarely being paid
banks/POs, as also shortage of staff in
compensation for the delay. The major reason
banks/POs. In other instances, there have been
for delay is that measurements of work are not
reports of fake and hand-written bills for
being made on time. This is, mainly due to lack
materials used in MGNREGA works,
 Rural Development 265

exaggerated claims, use of substandard as Andhra Pradesh Society for Social Audit
material and payment by cash or bearer (APSSAT). Without this two-pronged approach
cheque. These represent violations of there is a danger of a repeat of the Rajasthan
government orders outlining strict norms for experience of the MKSS, where the process
sourcing supplies only through registered firms, has been repeatedly thwarted by violent
inviting open tenders for purchases etc. opposition from vested interests. All States
need to study the Andhra experience and learn
12.24. Some malpractices are bound to to replicate it in an appropriate location-specific
surface in a highly decentralised programme manner.
but it is necessary to evolve a multi-pronged

Box 12.1
Andhra Pradesh Software Allows MGNREGA Payments within a Week

Since the computer system in Andhra Pradesh is tightly integrated end-to-end, any work
registered in the system is alive, status-visible and amenable to tracking. Delays at any stage can be
immediately identified and corrected. The system keeps track of work from when the work-ID is
generated and flags delays in the payment cycle as soon as they occur. Because the network secures
all levels from the ground up to the State headquarters and data are transparently and immediately
available on the website, a delay at any stage is instantly noticed by the monitoring system.

By the last (sixth) day in a week’s work, the measurement sheets and muster rolls of the entire
week are closed and reach the mandal (sub block) computer centre. The next day, the muster data are
fed into the computer. On day eight, the pay order is generated by the computer and the cheques are
prepared. By day ten, these cheques are deposited into the post office accounts of workers. The next
day cash is conveyed to the post office so that on days 12 and 13, workers are able to access their
wages from their accounts. All payments to labour are made only through these accounts; there are no
payments in cash. The free availability of this information on the website also facilitates public scrutiny,
thus engendering greater transparency and better social audit.

response to put an effective end to them. The Greater Space for Civil Society Action
process of social audit which is the differentia
12.26. There is an urgent need to widen the
specifica of MGNREGA has the potential to
space for civil society action in support of
deal with this problem effectively. Unfortunately
MGNREGA, whether it is helping Gram
social audit has been conspicuous by its
Panchayats to plan, implement and conduct
absence in most states. The problem seems to
social audit of MGNREGA works, or for
be deeply entrenched corruption in the field
generating greater awareness among workers
bureaucracy that resists any mechanism of
about their entitlements under the Act. The best
enforcing accountability. Where political
way to go forward on this is to convert CAPART
leadership has taken the lead and developed
into a truly professional organisation that
partnerships with civil society, social audit has
facilitates civil society action in partnership with
taken off (see Box 12.2)
the PRIs. This would help create greater
awareness among MGNREGA workers about
12.25. The success of social audits in Andhra
provisions of the Act, preparation of better
Pradesh results from the unique partnership
convergence plans by PRIs, improved quality of
between the Mazdoor Kisan Shakti Sangathan
works and strengthen the process of social
(MKSS) and the State Government.
audits, thereby creating greater transparency
Nevertheless, it remains a largely top-down
and accountability in the programme. As
approach and needs to be complemented by a
explained below, steps in this direction have
greater mobilisation from below by civil society,
recently been initiated.
which can be facilitated by organizations such
266 Mid-Term Appraisal of the Eleventh Five Year Plan

Ombudsmen at the District-level: Grievance • Issuing directions for conducting spot

Redressal investigation
12.27. An important step taken towards the • Lodging FIRs against the erring parties
end of 2009 was to appoint persons of
eminence and proven integrity as Ombudsmen • Initiating proceedings suo moto in the event
in every district to ensure redressal of of any circumstance arising within his
grievances and disposal of complaints under jurisdiction that may cause any grievance
MGNREGA. The Ombudsmen are independent • Engaging experts for facilitating the
of the jurisdiction of the Central or State disposal of the complaint and
Government. The powers of Ombudsmen will
include • Directing redressal, disciplinary and punitive
actions.
• Receiving complaints from MGNREGA Special Problems of Tribal Areas
workers and others 12.28. In tribal regions, degraded catchment
• Considering such complaints and facilitate areas needing treatment through MGNREGA
their disposal in accordance with law tend to fall in land under the Forest Department.
There has been great difficulty in working on
• Requiring the MGNREGA official these lands and progress has been very slow.
complained against to provide any In view of the growing Maoist activities in such
information or furnish certified copies of any areas, this is a matter of grave concern. Steps
document relating to the subject matter of need to be taken to ensure that this work
the complaint which is in his possession proceeds apace and the Forest Department

Box 12.2
Social Audit in Andhra Pradesh: A Success Story
Social audit in Andhra Pradesh begins with filing of applications for MGNREGA records under
the Right to Information Act by district resource persons designated by the government. Rules stipulate
that “concerned officials shall provide the information requested for without fail within seven days of the
receipt of the application.” In every village, teams of energetic literate youth, who usually belonging to the
families of MGNREGA workers themselves, are trained in social audit processes, and go from door-to-
door authenticating muster rolls, check out worksites, record written statements of workers and conduct
meetings. The social audit process culminates in a public meeting at the mandal (sub-block)
headquarters attended by people from every village, their elected representatives, the media,
MGNREGA functionaries concerned and senior government officers. At this meeting, village-wise social
audit findings are read out, workers testify and the officials concerned respond to the issues raised by
giving an explanation about their actions under complaint and by specifying the nature of remedial action
they will take in what time period. A number of corrective or disciplinary actions are taken during the
meeting itself. Social audit rules specify that an “action taken report shall be filed by the Programme
Officer within a month of the social audit being conducted and the same shall be communicated to the
Gram Sabha.” In addition, there is a rigorous follow-up where social audit teams go back to their villages
every 15 days after the mandal public meeting to ensure that the decisions taken are actually enforced.
One full round of this process has now been completed in over 50,000 habitations. In several
habitations, second and third rounds have also been concluded. Around 50,000 trained village youth are
conducting this social audit that has already covered nearly 20 million people. Around Rs.4 crore of
misappropriated funds have been recovered. On many occasions, errant officials have “voluntarily”
returned money to workers at the mandal public meeting itself. The palpable impact on rural governance
of such a spectacle, which invariably continues uninterrupted for 10-12 hours, is easy to imagine. Action
has been initiated against thousands of officials and a number of criminal cases have been instituted.
Nearly 80 lakh MGNREGA records have been publicly scrutinised under the RTI. Independent studies
reveal that awareness about the detailed provisions of MGNREGA has risen dramatically among
workers. The setting up of the Andhra Pradesh Society for Social Audit and Transparency (APSSAT) is a
major step in the direction of institutionalising the process of social audit in Andhra Pradesh and ensuring
independence of the auditor from the implementer.
 Rural Development 267

provides its fullest and most expeditious cards and muster rolls as both these
cooperation in this regard. Quicker disposal of documents will show the UID number of the
claims under the Forest Rights Act would also worker. The “non-repudiation” feature of UID
facilitate MGNREGA work on these lands. This will be a further check on leakages as the
would foster greater involvement of tribal MGNREGA worker will biometrically confirm
people in MGNREGA planning and receipt after the payment has been made. By
implementation, more water and livelihood the end of the Eleventh Plan period, BCs
security and genuine decentralisation of should cover every GP in India not serviced by
governance in tribal areas, which would a bank.
together constitute a powerful response to the
challenge posed by the Maoists. 12.30. The proposed UIDAI Civil Society
Outreach Programme will facilitate a robust
Partnership with UIDAI and the Banking UIDAI-MGNREGA partnership by ensuring
Correspondent (BC) Model inclusion of the most vulnerable sections living
in remote areas. It will also help roll out pilots
12.29. A partnership with the Unique
that could build adequate safeguards to take
Identification Authority of India (UIDAI) and
care of teething problems and concerns of civil
adopting the BC model is poised to help tackle
society and legal experts about the process.
key problems of MGNREGA. UID numbers are
expected to start rolling out in 2011(Box 12.3)
Special Needs of the Differently-Abled
The UID number, coupled with biometric
identification, will solve the problem of fake job 12.31. MGNREGA promised an Act that was

Box 12.3
Banking Correspondents and the UID
Banking Correspondents will carry a handheld computer device and a mobile phone with
biometric identification facilities. Each beneficiary will have a “UID bank account”. The UID will
maintain a translation table (with the National Payments Corporation of India) which will map the UID
number to the UID bank account. This makes everyone’s bank account addressable. The
Government of India will direct all current and future payments which are given directly to individuals
to this UID bank account MGNREGA payments, pensions, JSY payments, wages paid to ASHAs, IAY
payments etc. The GoI will also encourage State Governments to use the same ‘pipe’. This will bring
benefits (including MGNREGA wages) to the doorstep resulting in an unprecedented scale and quality
of financial inclusion.
It is important here to use an open, inter-operable architecture. The lack of inter-operability
between government programmes means that beneficiaries have to collect different payments from
different agencies. The distance beneficiaries are required to travel to various agencies for their
money incurs opportunity costs as well as travel expenses. The lack of information on when payments
have arrived gives rise to middlemen, who pass on this information to beneficiaries for a fee. The
costly cash handling processes, cumbersome identity verification processes and high transaction
volumes create inefficiencies across the system, delayed payments and long waiting times. These
limitations force the poor to withdraw the entire amount due to them from the bank, to avoid recurring
visits.
The UID number will enable banking institutions to create UID-linked, no-frills bank accounts
that allow electronic transactions, which can be accessed through the mobile phone. Such a UID-
enabled micro payments infrastructure addresses existing challenges we face in bringing finance to
the poor. Banking institutions would be able to easily and accurately verify the identity of residents.
With UID-enabled biometric authentication, such verification would be possible over phone and online.
Aligning reduced KYC requirements of no-frills accounts with UID Know-Your-Resident (KYR)
standards and biometric authentication ensures that anyone with a UID is eligible for a UID-enabled
Bank Account. The cost of customer acquisition for banking institutions would then come down
dramatically. Additionally, the UID system of biometric authentication ensures that once the UID
number is integrated with the BC model, only an eligible beneficiary and BC can transact on a given
bank account. This simplifies and strengthens the security of transactions. A back-end switch which
enables a Rs. 10 transaction for a cost of say, 10 paise would help build a high-volume, low-cost
model that all stakeholders benefit from.
268 Mid-Term Appraisal of the Eleventh Five Year Plan

friendly to the differently-abled. While 8.50 lakh Implementation has been asked to set up an
differently-abled workers have so far been Expert Group to develop a separate price index
registered for MGNREGA work, only 19 per for MGNREGA wages so that the real level
cent of them have actually got work. Madhya contributed by the central government could be
Pradesh is the only State that has moved pegged at Rs.100 per day. The SoRs also need
decisively by issuing specific orders enabling to be indexed to the wage level, so that each
people with different kinds of disabilities to be rise in inflation-indexed wages is accompanied
employed on MGNREGA worksites on carefully by an automatic adjustment in the SoRs.
specified kinds of matching work. Other states
need to follow the example set by Madhya Mission MGNREGA
Pradesh in this regard.
12.34. For all the reforms outlined above to be
carried out effectively, we need a “Mission
Statutory Minimum Wages: New Schedule of
MGNREGA” within the Ministry of Rural
Rates
Development. At present, just one Joint
12.32. One of the deficiencies in MGNREGA Secretary manages this massive employment
relates to reports from various parts of the programme. Coordinating and monitoring the
country of workers earning less than statutory implementation of the programme by the States
minimum wages. The main reason for lower should remain the function of the Department of
than statutory wages in many states is that Rural Development,although evaluation, social
payments are still based on work done that is audit, grievance redressal, IT innovations and
measured using outmoded schedules of rates human resource deployment and development
(SoRs), which were appropriate for a contactor- demand a full-fledged Mission that works
led, machine-based system of implementation. independently to support the implementer. This
In the absence of machines, the application of would enable
these SoRs inevitably leads to underpayment.
Another problem is that existing SoRs make • More credible and sustained studies and
inadequate provisions for variations in geology evaluations of MGNREGA
and climate, discriminate against women, tend
to underpay workers by lumping various • Speeding up better IT innovations resulting
activities together and do not revise rates in line in real-time monitoring
with increments in statutory minimum wages. • Deployment of more professional human
Deploying the old SoRs also makes it resources as also high quality capacity
impossible for implementers like Gram building, resulting in better assets and
Panchayats to correctly cost works undertaken improved, enduring outcomes
by them. The result is a varying combination of
malpractices -- more work is shown than • Better social audit and grievance redressal
actually undertaken on the ground, poor quality • Charting out a course for further
of work takes place, works are left incomplete MGNREGA reform
as actual costs exceed sanctions, labour is
underpaid and bogus workers are shown as 12.35. These “soft” elements will determine the
paid while machines actually do the work. quality of outcomes achieved through
Gujarat, Andhra Pradesh, Tamil Nadu, Bihar, MGNREGA works and help realise the true
Orissa, Karnataka and Uttar Pradesh have potential of the Act.
undertaken fresh time and motion studies to
revise their SoRs. Other states must also follow Ultimate Potential of MGNREGA
suit. 12.36. The ultimate potential of MGNREGA
lies in a renewed focus on improving the
12.33. The Ministry of Rural Development has productivity of agriculture and convergence to
notified revision of MGNREGA wages to Rs.100 engender allied sustainable livelihoods. Millions
per day in December 2009 for States which of small and marginal farmers forced to work
were below this level. Now 27 States and Union under MGNREGA because the productivity of
Territories are paying Rs.100 or more. The their own farms is no longer enough to make
Department of Statistics and Programme
 Rural Development 269

ends meet. Among agricultural labour structures. However, the present guidelines are
households in India, the percentage of those too focused on top-down inter-departmental
who own land is around 50 in Rajasthan and convergence. The danger presently is that
Madhya Pradesh, 60 in Orissa and Uttar either departments will be unwilling to converge
Pradesh and over 70 in Chhattisgarh and with MGNREGA because of provisions such as
Jharkhand. And if we focus on tribals, the social audit or they will do so in a manner that
proportion shoots up to as high as 76-87 per violates the radical provisions of MGNREGA.
cent in Chhattisgarh, Jharkhand and Rajasthan. The emphasis has to be on PRI-led
MGNREGA will become really powerful in the convergence that does not compromise the
real sense when it helps rebuild this decimated unique architecture of MGNREGA
productivity of small farms and allows these implementation.
people to return to full-time farming, thereby
also reducing the load on MGNREGA. The Way Forward
12.39. There is an urgent requirement for a
12.37. There are many such examples to be
clear set of guidelines on the use of the 6 per
found under MGNREGA, although they still
cent administrative costs provided under
remain small in number. For example, the First
MGNREGA. Proper utilisation of this amount
Annual Report of the National Consortium of
holds the key to infusing MGNREGA outcomes
Civil Society Organisations on MGNREGA
with genuine quality.
(2009) has reported that earthen dams on
common land have recharged wells of
12.40. The most important uses to which this
thousands of poor farmers who earlier worked
amount must be put are:
as labourers to build these dams. These
farmers are now busy making a series of
• Deployment of Cluster Level Teams for
investments to improve their own farms. Rising
each cluster of around 30 villages
incomes also improve capacity utilisation and
happier expectations act as incentives for more • Capacity building of these personnel
investment. Under MGNREGA, farmers have
come back to land they long abandoned, as • Technical support for better convergence
increased output, in an atmosphere of renewed and creation of sustainable livelihoods
hope, spurs further investment. Converging • Strengthening and improving IT systems
MGNREGA with other programmes for rural
livelihoods would carry this momentum forward • Additional personnel for banks/POs till the
in a positive upward spiral, which will broad- BC model comes up
base the growth process via downstream • Monitoring, evaluation, social audit and
multiplier-accelerator effects. grievance redressal
12.38. It has recently been notified that • Time and motion studies to revise SoRs in
MGNREGA work will now be permitted on the states where this is yet to be done
lands of small and marginal farmers, provided 12.41. Since States are not spending more
work on lands of SCs/STs has been first than 3 per cent on an average on administrative
saturated. This is a very positive step that costs, these reforms can easily be afforded and
would also help better achieve more days of put in place. Once proper use of the 6 per cent
work to more job card holders. New guidelines is achieved, the amount could be raised, with
on convergence of MGNREGA with other clear guidelines for use of the money across
government programs have also been issued. heads. These costs could also be redesignated
Convergence can help realise the MGNREGA as “professional support costs” rather than
promise of sustainable livelihoods. “administrative costs” to send out the
Convergence can also facilitate even more appropriate message.
flexibility in choice of works to suit the specific
conditions of states such as Bihar, for example,
where earthen works may be less appropriate
in flood-prone districts than stone masonry
270 Mid-Term Appraisal of the Eleventh Five Year Plan

Swarnjayanti Gram Swarozgar Yojana a year) of disciplined functioning, it becomes

(SGSY) entitled to a loan from the bank where it has an
account.
12.42. The SGSY is a self employment
programme operational in April 1999 after Physical and Financial Progress
restructuring and combining the Integrated
12.45. The financial and physical performance
Rural Development Programme (IRDP) with
of SGSY since its inception in 1999 is
other allied programmes. SGSY aims to bring
summarised in Table 12.4. About 35 lakh SHGs
the assisted poor families above the poverty
have been formed under the programme.
line by supporting income-generating activities
Around 127 lakh swarozgaris have been
through a combination of bank credit and
supported with credit and subsidy, of which 82
government subsidy. An important change from
lakhs belong to SHGs. Credit mobilised by
the IRDP approach was the shift away from
banks for SGSY beneficiaries during this period
supporting individuals towards formation of Self
was Rs. 19,600 crores. Per capita investment
Help Groups (SHGs), organisations of the poor
under the programme which was Rs. 17,000 in
at the grassroots, through a process of social
1999 has risen to Rs. 31,500 in 2009. The
mobilisation. Community action and group
percentage of women among those assisted
dynamics are expected to transform outcomes
increased from 45 per cent in 1999 to 66 per
and also make banks recognise the rural poor
cent in 2009. However, the attrition rate among
as credit-worthy and financially accountable
SHGs is very high. Groups are graded on well-
units.
defined parameters of performance such as
quality of functioning, repayment of loans,
12.43. Assistance under SGSY is given in the
maintenance of proper accounts etc, Only 65
form of credit by the banks with a back-ended
per cent SHGs graduated to Grade I, 29 per
subsidy by the government. Emphasis is laid on
cent to Grade II and 23 per cent from Grade-II
micro-enterprise development with effective
to the micro-enterprise level.
forward and backward linkages, to ensure best
returns on investment. 50 per cent benefits are
Table 12.4
reserved for scheduled castes/scheduled tribes
Financial and Physical Performance of
(SCs/STs), 15 per cent for minorities and 3 per
SGSY, 1999-2009*
cent for differently-abled people. In addition, 50
Activity Total
per cent of the groups formed in each block are
expected to be exclusively for women who will SHGs Formed (lakhs) 35
account for at least 40 per cent of the Grade-I SHGs (lakhs) 23
Swarozgaris. Grade-II SHGs (lakhs) 11
SHGs Economically Assisted (lakhs) 8
12.44. The SHG-Bank Linkage (SBL) Total Swarozgaris Assisted (lakhs) 127
approach involves the formation of self-help Total SHGs Swarozgaris Assisted 82
groups (mainly of women). These women (lakhs)
regularly save money that is placed in a local Total Individual Swarozgaris Assisted 45
(generally public sector) bank account. Many (lakhs)
studies have shown that creation of a safe Total Credit Mobilised (Rs. crores) 19,600
avenue for savings (on which interest is earned) Total Subsidy Disbursed (Rs. crores) 9,500
is an attractive feature of SHGs, which has led Total Investment (Rs. crores) 29,100
to significant promotion of savings. The SHG Per Capita Investment in 1999 (Rs.) 17,000
has a set of bye-laws devised and agreed by Per Capita Investment in 2009 (Rs.) 31,500
the members themselves. These include rules *Till October 2009
for monthly savings, lending procedures, Assessment of Performance
periodicity and timing of meetings, penalties for
default etc. Meticulous accounts and records Impact of SHGs
are maintained. The SHG itself functions like a 12.46. A number of studies document the
small bank. The group lends money to its positive economic impact of SHGs on indicators
members. After a certain period (six months to such as average value of assets per household,
 Rural Development 271

average net income per household, of scale, create value added services and build
employment and borrowing for income local human capital. It has also been shown
generation activities. It has been shown that how doing business with SHG Federations can
SHGs help inculcate the banking habit in rural help public sector bank branches in remote
women. The running of an SHG is also a great rural areas become viable entities.
lesson in governance. It teaches the value of
discipline, both procedural and financial. Well- 12.49. Since most SHGs are women's groups,
run SHGs are subject to external audits that the potential for women's empowerment is huge
enforce prudence. It broadens the horizons and and a number of studies have tried to assess
expands the capabilities of its members who the impact of microfinance interventions on
have to interact with the outside world, including women's empowerment. There is overwhelming
banks, government departments and NGOs. evidence that women-run SHGs are the best
There are reports of SHG office-bearers being managed with women showing much greater
elected to panchayats and becoming more sense of responsibility as also a commitment to
effective leaders in panchayati raj institutions. In human development objectives such as health
a word, it is not merely finance but and education of their families. However, much
empowerment that is potentially achieved in depends on the orientation and capacity of the
good SHGs. Thus, good SHGs can become an agency facilitating the formation of groups.
effective instrument of empowerment. Where groups are mere conduits for the lending
and recovery of money or when lending is to
12.47. Studies also indicate that the individuals, empowerment impacts are the
impressive figures of the fast growth of the SBL least.
model hide a lot of poor quality work. So long
as it remains largely a government "pushed" 12.50. SHGs do involve high transaction costs
model it will suffer from all the infirmities of any and SHG group meetings require an investment
top-down programme, run in a target-driven sort of time and money. But if we recognise that
of way. Many of these groups largely remain on "governance" and not just finance is a major
paper and suffer high rates of mortality. Groups "deficit" in rural India, then we must view this as
have dissolved at a rapid rate, often an investment in empowerment of women and
disappearing with the loans they had been the poor, which is not too high a price for the
provided by banks. This has led to weakening state to bear. NABARD's "promotional" costs for
the credibility of the SBL model in the eyes of SHGs, if well spent, can be an invaluable and
key stakeholders, including potential women reasonable investment for achieving this
members, as also bankers. socially desirable goal. In any case, SHGs need
support only for the initial years, after which
12.48. The real power of the SBL model lies in they become financially self-sustaining entities.
the economies of scale created by SHG
Federations (comprising 150-200 SHGs each). 12.51. There is some critique of SHGs
This is evident, for example, in bulk purchase of charging high rates of interest from their
inputs (seeds, fertilisers etc) and marketing of members. In a way, SHGs are member-run
outputs (crops, vegetables, milk, NTFPs etc). mini-banks and what they charge is also what
They can also provide larger loans for housing they earn. So the interest money earned
and health facilities to their members by tying remains with the SHGs themselves.
up with large service or loan providers.
Insurance services including life, health, 12.52. A major problem identified by the
livestock and weather insurance are also Radhakrishna Committee on Credit Related
available. A study of four large SHG Issues under SGSY (2009) is that most of the
Federations (including India's oldest one) with a SHGs remain crowded in the low productivity
total of over 18,000 members in Andhra primary sector activities. The success of the
Pradesh and Tamil Nadu, shows that programme depends on raising their ability to
Federations help make SHGs financially viable diversify into other high productive activities.
by reducing transaction and promotional costs Even in the better performing State of Andhra
as also default rates, provide them economies Pradesh, the income gain to a swarozgari from
272 Mid-Term Appraisal of the Eleventh Five Year Plan

enterprise activities under SGSY was a mere SGSY increased very moderately from
Rs.1,228 per month. The small income gain Rs.3,205 crore in 1999-00 to over Rs.3,744
was due to low productive traditional activities crore in 2007-08 at current prices (Table 12.6).
in which they were engaged and due to low Credit actually mobilised was only Rs.1,056
absorption of technology. crore in 1999-2000 and rose to Rs.2,760 crore
in 2007-08 but still much below the target. The
12.53. The Committee argues that that while ratio of credit to subsidy was about 2 during the
nearly two thirds of the total funds was given period and did not vary much from year to year.
out as subsidy (thus making the whole Thus, credit-subsidy ratio remained much below
programme subsidy-driven), only 6 per cent of the target ratio of 3:1. This is partly due to
the total SGSY funds were utilised for training failure to strengthen the demand side of the
and capacity building during the past decade credit by improving the capacity of the poor to
(Table 12.5). Ill-trained groups in SGSY would absorb credit for income generating activities
be a severe handicap in moving towards the and due to supply side failures as well. The
Eleventh Five Year Plan goal of inclusive financial services did not have the systems and
growth. Training is of vital importance in both procedures suited to the poor. On the whole,
management aspects of running SHGs and credit and related indicators show that SGSY-
their Federations, as well as in improving bank linkage is yet to take off from the
existing livelihoods options and also adopting perspective of credit facilitating the growth of
new ones. micro enterprises. It signifies the failure of both
credit delivery systems to reach the poor as
12.54. It is very important to recognise as well as that of public intervention to promote
argued by the Committee “that prior to SHG- credit-worthy swarozgaris.
Bank Linkage, substantial preparatory work
needs to be done for bringing the poor together Uneven Performance across States
through a process of social mobilisation,
12.56. An interesting feature of SGSY is the
formation of sustainable SHGs and training
very uneven distribution of SHGs across
them to pool their individual savings into a
regions, with the southern states which account
common pool for lending it among the needy. It
for 11 per cent of the poor having 33 per cent of
also includes equipping them with skills to
the SHGs, while the northern and northeastern
manage corpus fund created with their own
states which account for more than 60 per cent
savings, interest earned from lending and
of rural BPL population having only about 39
revolving fund contributed by the government.”
per cent SHGs.(Table 12.7) The performance of
Table 12.5 SGSY was unsatisfactory in states with high
Utilisation of SGSY Funds across Heads, 1999- incidence of poverty such as Assam, Madhya
2009 Pradesh, Orissa, Jharkhand, Chattisgarh, West
Bengal and Bihar. The Radhakrishna
Percentage utilisation of Funds on:
Subsi Revol Infrastr Training/ Others Committee believes that the constraints
dy ving ucture Capacity underlying their poor performance mostly relate
Fund Develop Building to the delivery system. In most of the above
ment States, functionaries of District Rural
1999- 65.40 10.34 16.23 6.18 1.88 Development Authorities (DRDA) and Block
2009* Development Officers (BDO) did not possess
*Till October 2008
adequate knowledge of the programme and
Source: Radhakrishna Committee on Credit Related
Issues under SGSY (2009) also banks had little interest in it. Line
departments were hardly involved in planning,
implementation and monitoring of the
Low Credit-Subsidy Ratio programme. Consequently, very few
12.55. The failure in the spread of the swarozgaris could avail adequate level of bank
programme and the limited absorbing capacity credit for investment. In the East and North-
even kept the targets of credit more or less at a East, credit disbursed as a proportion of credit
constant level. The target for credit under targeted in 2007-08 was low at about 40 per
cent as against the all-India figure of 73
 Rural Development 273

percent. Consequently, investment per Andhra Pradesh model which relies on

swarozgari (credit plus subsidy) was low at federations of SHGs have acquired the shape
Rs.19,700. of effective organisations of the poor.
Federations acting as financial intermediaries
Table 12.6
Credit Mobilisation and Disbursement under SGSY, 1999-2009
(Rs. crore)
Year Credit Disbursed Subsidy Disbursed Total Ratio of
Credit + Credit to
Subsidy Subsidy
SHGs Individuals Total SHGs Individuals Total
1999-2000 187 869 1,056 125 417 542 1,598 1.9
2000-2001 257 1,202 1,459 168 534 702 2,161 2.1
2001-2002 318 1,011 1,329 210 456 666 1,995 2.0
2002-2003 459 725 1,184 283 323 606 1,790 2.0
2003-2004 708 594 1,302 444 269 713 2,015 1.8
2004-2005 1,028 631 1,659 586 273 859 2,517 1.9
2005-2006 1,275 548 1,823 671 234 905 2,728 2.0
2006-2007 1,803 488 2,291 771 200 971 3,262 2.4
2007-2008 2,091 670 2,761 991 298 1,289 4,049 2.1
2008-2009 1,136 412 1,548 461 250 711 2,259 2.2
(Upto October
2008)
Total 9,262 7,151 1,6413 4,709 3,254 7,963 2,4375 2.1
Source: Radhakrishna Committee on Credit Related Issues under SGSY (2009)

Table 12.7
Financial and Physical Performance of SGSY Programme,
Region-wise, 2007-08 (per cent of All-India)
Region Population Poor Swarozgaris Total Total Total Investment per
Persons assisted Credit Subsidy Credit + Swarozgari
Subsidy (Rs)
North 11.9 6.1 6.2 9.5 6.3 8.5 39,354
Central 27.3 33.8 29.8 34.6 38.5 35.8 34,518
West 11.8 10.7 11.1 10.2 11.2 10.5 27,222
South 19.5 11.3 21.3 23.4 16.3 21.2 26,810
East 25.1 34.6 21.1 16.8 20.2 17.9 24,165
North East 4.4 2.5 9.11 5.5 7.5 6.1 19,658
All India 100.0 100.0 100.0 100.0 100.0 100.0 28,722
Source: Radhakrishna Committee on Credit Related Issues under SGSY (2009)

12.57. In contrast to the Eastern states, which is a high skill activity require investments
Andhra Pradesh, Kerala and Tamil Nadu show in training for enhancing their skill base. This
successful implementation of the programme also involves institutional partnerships of SHGs
largely because of the existence of umbrella /Federations with the bankers. The differences
organisations at the state level. These in regional and state-wise performances can
organisations promote formation of SHGs, also be attributed to the relative strength of
ensure thrift, establish bank linkage and banking institutions.
facilitate capacity building. In addition, they
federate the SHGs into effective self-governing Restructuring SGSY: National Rural
organizations with a hierarchy of appropriate Livelihoods Mission
functions, including ensuring coordination with
12.58. Based on the lessons of the last decade
the line departments. The Kudumbasree in
of SGSY implementation, the Ministry of Rural
Kerala with active linkages with the PRI and the
274 Mid-Term Appraisal of the Eleventh Five Year Plan

Development is currently in the process of year-wise physical and financial progress is

restructuring SGSY as the National Rural summarised in Tables 12.8 and 12.9
Livelihoods Mission (NRLM), which is all set to
be rolled out in 2010. The main features being Table 12.8
proposed under NRLM are Financial Performance of IAY during Eleventh Plan
Year TAF* Utilisation per cent
(Rs. crore) (Rs. crore) Utilisation
• Implementation of the programme in a 2007-2008 6,527.17 5,464.54 83.72
mission mode with greater emphasis on 2008-2009 14,460.33** 8,348.34 57.73
Federations of SHGs 2009- 9,094.44 4,927.23 54.18
• Flexibility to states for designing specific 2010***
* Total Available Funds (TAF) includes Opening Balance and
action plans for poverty alleviation through Centre & State Releases
a demand driven strategy ** Includes Rs. 3050 crore released as economic stimulus
package in February 2009
• Induction of professionals at various levels
*** Till September 2009
of the implementation machinery and
facilitators-animators at the cutting-edge Table 12.9
level of implementation Physical Performance of IAY during Eleventh Plan
Year Target Houses per cent
• Upward revision of financial support (lakh) constructed Physical
provided under the programme (lakh) Achievement
• Introduction of interest subsidy for 2007-2008 21.27 19.92 93.66
encouraging repayments of loans and 2008-2009 21.27 21.34 100.27
multiple doses of credit 2009-2010* 40.52 10.96 27.05
* Till September 2009
• Greater focus on training and capacity
building efforts, including setting up of New Initiatives during Eleventh Plan
dedicated skill training institutes in each 12.60. Several new initiatives were taken
district during the Eleventh Plan:
• Improved monitoring and evaluation
through social audits, base line studies, • From 1 April, 2008, the assistance under
concurrent evaluations and comprehensive IAY for new construction has been raised
MIS from Rs.25,000 to Rs. 35,000 per unit (20
• Upscaling special projects component of sq.m. plinth) in plain areas and from
SGSY for greater focus on skilled wage Rs.27,500 to Rs. 38,500 in hilly and difficult
employment along with self-employment areas.
efforts • A beneficiary can also borrow a top-up loan
• Creating a platform that enables industries upto Rs. 20,000 from any nationalised bank
and their associations to better integrate at 4 per cent interest per annum under
micro-enterprises set up by Differential Rate of Interest (DRI) Scheme.
SHGs/Federations into the larger macro-
economic environment in the country • NSS data indicate that around 7.70 million
households in rural India do not have
• Facilitating marketing linkages so that SHG
homestead sites, without which they are
products are able to access global markets.
unable to fulfill their need for shelter and
avail of benefits under IAY. The Eleventh
Indira Awaas Yojana (IAY) Plan set a target of providing homestead
Performance Review sites to all by 2012. A proposal for providing
homestead sites to rural BPL households
12.59. The IAY is a flagship scheme of the was approved in 2009. Beneficiaries will be
Ministry of Rural Development to provide selected from the Permanent IAY Waitlists
houses to BPL families in rural areas. Since as per priority in the list. Only those BPL
1985, nearly 223 lakh houses have been households, who have neither land nor
constructed with an expenditure of about house site, will be eligible. In the first
Rs.54,688 crore. In the Eleventh Plan, Rs. instance, the State Government will
26,882 crore has been allocated for IAY. The regularise the land as a homestead site if it
 Rural Development 275

is presently occupied by a BPL household borrowing from local sources, a significant

and if regularisation is permissible as per number of families are not able to complete the
the existing Acts and rules. If this is not the house in all respects, and most houses remain
case, the State Government will allot without plastering or flooring.” The steps
suitable Government land as homestead outlined below would help improve housing
site to the eligible BPL household. In case quality for which a minimum set of standards
suitable Government land is not available needs to be adopted.
for allotment as homestead sites, private
land may be purchased or acquired for this Dearth of Technical Inputs
purpose. Financial assistance of Rs.
12.62. One of the merits of IAY is supposedly
10,000/- per beneficiary or actual,
the fact that house construction is left entirely to
whichever is less, will be provided for
the discretion of the beneficiaries but they might
purchase or acquisition of a homestead site
not have the resources and the technical
of an area around 100-250 sq.m. Funding
expertise to build quality houses on their own.
will be shared by Centre and States in the
IAY guidelines recommend that State
ratio of 50:50 while in the case of Union
government and implementing agencies should
Territories, Central Government will fund
facilitate access to information on innovative
100 per cent. The total central allocation for technologies, materials, designs and methods,
homestead sites for the Eleventh Plan but most States do not have any mechanism to
period would be Rs.1000 crore (Rs. 200 cr. do so. There is a clear need for developing and
for 2009-10, Rs. 300 cr. for 2010-11 and popularising appropriate technology through a
Rs. 500 cr. for 2011-12). This amount is network of institutions, which could result in
sufficient to meet about 25 per cent of the low-cost, environment friendly and disaster
total requirement. State Governments are resistant houses as per local cultural
expected to meet the remaining 75 per cent preferences. Developing a menu of specific
of the requirement by regularising the designs and technology options for each region
presently occupied land, if any, or by reflecting variations in environmental and
allotting surplus Government land, to fulfill cultural conditions would be the way to go
the target set by the Government for forward.
providing homestead sites to all by 2012.
State Governments will be incentivised by Inadequacy of Unit Cost
sanctioning additional houses under IAY to
the extent homestead sites are provided to 12.63. The poor quality of houses constructed
the landless rural BPL households. is partly due to the low unit cost. State
Governments have been asking for
• Proposals for providing homestead sites enhancement of unit assistance to between Rs.
have been received from seven States 50,000 and Rs. 70,000. This is in line with the
namely Kerala, Karnataka, Bihar, recommendations of HUDCO, Auroville Earth
Rajasthan, Sikkim, Maharashtra and Institute, BMTPC and CBRI made to the
Mizoram. Funds have been released to Eleventh Plan Working Group on Rural
Kerala, Karnataka, Bihar, Rajasthan and Housing.
Sikkim.
Issues and Recommendations 12.64. The Union Budget for 2010-11 has
raised the unit cost under IAY to Rs.45,000 in
Quality of Housing plain areas and Rs.48,500 in hilly areas.
12.61. Although “high user satisfaction” is Additional costs could be provided by widening
reported under IAY, the quality of housing the ambit of the DRI scheme and increasing the
remains a problem. Several examples have amount of loan permissible to Rs.50,000 at 7
been reported of poor quality of construction, per cent interest pa (as against Rs. 20,000 per
sagging foundation, use of temporary materials unit at 4 per cent rate of interest currently
for roofing or leaving the construction allowed under IAY). The real challenge is to
incomplete because of inadequate finance.
Even after contributing their labour and
276 Mid-Term Appraisal of the Eleventh Five Year Plan

promote the DRI scheme by radically improving Jharkhand, Mizoram, Punjab, Sikkim,
its awareness and implementation. Only 10,970 Arunachal Pradesh and Lakshadweep have
IAY beneficiaries have so far availed of loans prepared the Waitlist but painting on walls has
under the scheme during 2009-10. It needs to not yet been complete. It is also necessary to
be promoted through women’s SHGs and have real-time data base of IAY beneficiaries.
dovetailed with the National Rural Livelihoods This will promote transparency and strengthen
Mission to be launched shortly. the monitoring mechanism. An IAY-MIS needs
to be developed to capture and maintain
Greater Transparency and Social Audit database of beneficiaries. The most effective
means of ensuring transparency, as also quality
12.65. The Eleventh Plan noted irregularities in
of works, is social audit. This should be made
the method of selection of IAY beneficiaries. It
an integral part of the programme and involve
stated that “25 to 50 per cent of the
both physical and financial verification.
beneficiaries are not being selected through the
Gram Sabhas. Allocation among panchayats
Habitat Development Approach
has been influenced by PRIs/MLAs. The vocal
and active segments of beneficiaries influence 12.67. The IAY must ultimately metamorphose
the selection process. The poorest among BPL into a larger habitat development programme.
households are left out and non-BPL families This needs to include at least provision of
get selected. Besides, collection of illegal domestic water, sanitation, clean fuel and
gratification of selection by PRIs is a common electricity and calls for much deeper
complaint brought out by several studies.” convergence between various departments,
currently functioning in silo mode.
12.66. One method to check corruption in
selection of beneficiaries is the creation of a Rural Sanitation
Permanent IAY Waitlist based on the 2002 BPL
Census. These Waitlists should be painted on 12.68. The drive to extend sanitation services
walls of Panchayat buildings. However, many in rural areas is spearheaded by the Total
states have been slow in doing this. Andhra Sanitation Campaign (TSC) introduced in 1999,
Pradesh, Haryana, Kerala, Manipur, which marks a break from the past in
Meghalaya, Orissa, Tripura, West Bengal, acknowledging the need for a demand-driven
Andaman & Nicobar, Daman & Diu, Dadra & approach based on behaviour change. It
Nagar Haveli and Puducherry have not yet emphasises the use of IEC for awareness
prepared the Waitlist. Uttar Pradesh, Goa, generation and health education. Efforts are

Figure 12.2
Rural Sanitation Coverage in India, 1980-2009
 Rural Development 277

being made to complete implementation of TSC 12.70. A target for construction of 72.9 million
projects in the countryside by 2012. individual household latrines (IHHLs) was
envisaged in the Eleventh Plan, of which 27.9
Table 12.10 million (38 per cent) IHHLs have been
Physical and Financial Progress of Rural constructed up to September 2009 (Table
Sanitation in Eleventh Plan Period 12.10). The maximum incentive offered
Year IHHLs Expenditure currently is Rs.2,200 per IHHL for BPL families
Constructed (Rs. Crore) (Rs.2,700 in hilly areas). Another goal of the
(million) Eleventh Plan is to ensure 100 percent
2007-08 11.5 1060 coverage of rural schools with toilet facilities by
2008-09 11.6 1200 March 2010. At least one toilet block will be
2009-10 (till 4.8 531 provided in each rural school. In co-educational
September 2009) schools, separate toilet blocks for girls will be
Total 11th Plan 27.9 2791 constructed. This coverage has increased from
30 per cent on 1st April 2007 to 76 per cent by
12.69. As can be seen from Figure 12.2, September 2009 (Table 12.11).
sanitation has grown impressively in rural India

Box 12.4
Community Led Total Sanitation (CLTS) in Haryana: A Success Story
In March 2006, Haryana shifted its implementation strategy from a conventional top-down, construction-
based approach to active involvement of village communities through Panchayati Raj Institutions, Women
Groups, Anganwadi Workers, Self-Help Groups, facilitators, motivators and school children focusing on Behavior
Change Communication. The emphasis was on capacity building for all stakeholders at state, district and village
levels and behavioral change through innovative CLTS approaches. A cadre of district level champions
(Swacchta Sainiks) was built up. IEC activities included joint exposure visits to model sanitation project sites,
celebration of Swacchta Week (Cleanliness Week) in coordination with Departments like Health, Women and
Child Development, Education, Agriculture and Animal Husbandry, Swacchta Yatras (Cleanliness Rally) involving
school children, and advocacy through print and electronic media. Rural Sanitary Marts for supply of sanitation
facilities in the state are managed by PRIs.
This innovative approach is reflected in the phenomenal and rapid increase in sanitation coverage from
a mere 29 per cent in 2001 to over 95 per cent today. 990 Gram Panchayats and 1 Block have been awarded the
Nirmal Gram Puraskar.
In the CLTS approach, through a process of participatory facilitation, community members analyze their
own sanitation status, including the extent of open defecation and the spread of fecal-oral contamination that
adversely affects each one of them. Here Walk of Shame is used as a powerful trigger. Going through the
defecation area, walking among the feces and talking about the issues related to open defecation can have a
lasting impact on people. This develops a sense of shame about the situation and often an immediate desire to
change their sanitation status.
Once people are convinced about the need for sanitation, people construct latrines on their own and
more importantly use them regularly due to a strong sense of ownership. A community-driven approach does not
require high subsidies, but it does need greater understanding of the individual and collective ‘triggers’ or factors
that motivate people to change their perceptions about the need for safe sanitation.
The CLTS campaign is driven by the following principles: facilitating communities’ own analysis;
motivating communities to take independent decisions and action; not top-down standard designs but bottom-up
innovations; not just hardware support but supporting people and processes.

following the launch of the TSC and received a Areas of Concern

special boost after the Nirmal Gram Puraskars
12.71. While these achievements are
(NGPs) were announced in 2003.More than
impressive, there remain significant areas of
22,000 NGPs have been awarded so far. By
concern. The NGPs have undoubtedly spurred
September 2009, rural sanitation coverage had
competition among PRIs to hasten toilet
grown to 62 per cent households (Box 12.4).
construction but there are also reports which
278 Mid-Term Appraisal of the Eleventh Five Year Plan

Table 12.11
Sanitation Coverage across States, 2009

State percent percent of percent of percent of percent of percent of

of BPL APL HHS APL + BPL Sanitary Schools Balwadis
HHS covered HHS covered Complex built covered covered
covered
Andhra Pradesh 61.65 57.35 60.11 100.00 86.32 35.86
Arunachal Pradesh 20.32 14.67 19.55 10.06 87.40 66.61
Assam 21.33 8.38 16.88 1.90 50.51 20.73
Bihar 24.86 10.05 18.26 24.01 54.15 14.44
Chhattisgarh 45.24 34.97 39.71 23.46 91.75 75.22
D & N Haveli 1.49 0.00 1.49 8.33 0.00 0.00
Goa 90.50 63.98 74.47 0.00 61.01 10.60
Gujarat 76.96 84.72 80.81 100.00 100.00 94.36
Haryana 96.00 97.46 97.01 77.38 97.69 84.72
Himachal Pradesh 78.80 89.10 86.47 13.52 35.88 27.45
Jammu & Kashmir 38.56 6.78 21.41 49.39 48.04 7.02
Jharkhand 41.82 8.98 29.47 8.81 76.85 27.55
Karnataka 41.93 37.78 39.65 42.30 99.37 98.83
Kerala 98.19 100.00 100.00 72.84 93.92 65.44
Madhya Pradesh 50.15 53.78 52.12 39.18 88.17 100.00
Maharashtra 56.26 55.57 55.82 42.26 92.05 96.15
Manipur 5.29 12.57 7.18 27.20 37.13 13.24
Meghalaya 18.45 48.43 25.85 20.00 22.99 12.03
Mizoram 97.50 95.50 97.06 61.43 100.00 100.00
Nagaland 28.10 5.87 24.61 66.93 41.99 38.77
Orissa 43.17 15.30 33.01 3.06 84.44 69.70
Puducherry 12.17 0.00 12.17 0.00 0.00 100.00
Punjab 17.96 70.43 42.42 15.33 93.14 23.70
Rajasthan 27.77 36.68 34.18 22.99 73.46 41.13
Sikkim 100.00 100.00 100.00 100.00 100.00 100.00
Tamil Nadu 77.28 64.22 70.89 100.00 93.06 94.17
Tripura 95.22 94.30 95.02 71.68 86.96 76.31
Uttar Pradesh 62.96 44.72 52.03 98.38 89.85 72.57
Uttarakhand 46.52 40.00 43.25 11.28 57.63 18.43
West Bengal 89.42 48.10 70.85 47.37 45.65 28.59

Table 12.12
NGP Villages with Proportion of People Going for Open Defecation, 6 States, 2008

None <20% 20-40% 40-60% 60-80% >80% Total

Andhra Pradesh 5 4 1 10
Chhattisgarh 4 5 1 10
Maharashtra 6 36 4 6 7 1 60
Tamil Nadu 11 6 9 5 2 33
Uttar Pradesh 1 7 6 1 15
West Bengal 11 18 3 2 34
Total 6 64 39 29 20 4 162
per cent of Total 4% 40% 24% 18% 12% 2% 100%
Source: UNICEF-TARU Primary Study 2008
 Rural Development 279

indicate an undermining of the demand driven were not using the toilets built for them under
approach of the TSC. UNICEF and TARU TSC and were defecating in the open (Table
conducted a study in 2008 of 162 NGP Gram 12.12).
Panchayats in six states (Andhra Pradesh,
Chattisgarh, Maharashtra, Tamil Nadu, Uttar 12.72. The ASHWAS survey conducted by
Pradesh and West Bengal), 37 of which had Arghyam in 17,200 households of 172 gram
won the NGP in 2004-05 and 125 in 2005-06. panchayats across 28 districts of Karnataka
Their survey, covering 7,100 households, found came to similar conclusions. Nearly two-thirds
that only 4 per cent of these GPs were of the NGP villages they surveyed had more
genuinely open defecation free. In 32 per cent than 20 per cent open defecation. 20 per cent
of the GPs, more than 40 per cent of the people of NGP villages had more than 50 per cent

Table 12.13
Checklist of Activities in Four Phases of TSC
Phase I: Pre-Planning Phase II: Planning and Phase III: Programme Phase IV: Sustaining the
preparatory Implementation Usage – O&M and
Governance
0-6 months 0-12 months 6-36 months From 6th month
Social mobilisation -- entry Social mobilisation -- demand Social mobilisation -- for Social mobilisation -- for
point activities, village meetings creation, awareness generation demand creation and for sustaining use and better
better O&M O&M
Software activities -- IEC, Software activities -- IEC, Software activities -- Software activities --
exposure visits, hygiene exposure visits, hygiene hygiene education, training hygiene education, training
education, identifying training education; preparation of (O&M, disposal, reuse), (O&M, emptying pits,
needs (needs and resources), communication plans and school sanitation disposal, reuse), school
school sanitation, menstrual training modules; training (staff, sanitation, menstrual
hygiene facilitators, teachers, masons), hygiene, hygiene
school sanitation, menstrual education
hygiene
Institutional process -- gram Institutional process -- Institutional process -- Institutional process --
sabha; interaction with strengthening of institutions; social audit/community community
Panchayat; village institutions, formation of watsan committees, monitoring of construction monitoring/social
SHGs; set up community area and district Resource etc pressures /triggers to
monitoring systems /social groups ; scoping for prevent slippages; end-line
pressures /triggers to ensure convergence of GP surveys
usage funds/programmes etc
Programme area Participatory planning -- PRA, Managing Material flows Activating the O&M
identification -- based on focused group discussions, – explore local strategy – roles and
demand/secondary research village mapping indicating manufacture and supply responsibilities, charges
defecation places, water logging etc
places, solid waste, incidence of
water borne diseases
Baseline studies/needs Evaluate and finalise technical Construction -- toilets, Periodic and regular
assessment -- socio-economic plans -- toilets, water supply to water supply to toilets, impact monitoring
aspects, toilets, solid/liquid toilets, solid/liquid waste solid/liquid waste -Socio-economic
waste management, school management, school sanitation, management, school -health
sanitation, vulnerable and vulnerable and specially-abled, sanitation, vulnerable and -groundwater
specially abled, menstrual menstrual hygiene. Approval by specially-abled, menstrual - Behaviour studies
hygiene, pregnancies) gram sabha hygiene -end line surveys
Survey of technical models -- Evaluate and finalise financial Managing fund/ cash Implementing post
toilets, solid/ liquid waste plan -- establish linkages for flows project strategy
management, school sanitation, funds; allocations or cost sharing Activating reporting and
vulnerable and specially abled, dissemination systems
menstrual hygiene), O&M
models
Survey of financial models -- Deployment of HR based on Preparation of O&M
government, donor, plan for software and hardware strategy /protocol etc
contributions, SHG linkages,
banks
Estimating human resources Establishing supply
chain Preparing post project
requirement linkages strategy -- exit strategy;
documentation and sharing
of learning, post project
institutional functioning
Planning for Management Activating Management Activating Management Activating Management
Information System Information System Information System Information System
Source: Arghyam (2009): Step by Step: What it Takes to Achieve Sustainable Sanitation?, Submission to the Planning Commission
280 Mid-Term Appraisal of the Eleventh Five Year Plan

open defecation. Poor quality of construction Tripura, conducted by Water Aid in 2008 argues
and absence of behaviour change were the that TSC is becoming increasingly state-led and
main reasons for the slip-back. In an ironic target-driven. It finds that “IEC activities have
twist, the institution of NGPs may have turned been implemented without any conscious effort
the clock back once again to a target-driven to create required awareness at the community
approach. Similar feedback from across the level. These activities were undertaken in a
country has recently forced the Department of routine administrative fashion as more of a fund
Drinking Water Supply (DDWS) to make the utilisation exercise, not organically linked to
criteria for selection for NGP much more awareness creation and demand generation
stringent. One simple condition that could make processes.” (Indira Khurana and Romit Sen
a big difference is to give the NGP only after 2008: Feeling the Pulse: A Study of Total
one year of continuous use of toilets by all Sanitation Campaign in Five States). Top-down
households in the GP is conclusively verified. IEC strategies of posters and brochures with no
individual contact have proven to be ineffective:
12.73. The NGP example merely illustrates the Gaps in IEC have also led to lack of awareness
larger problem plaguing the TSC. It is apparent about technology options and related
that a rush to meet targets has compromised engineering aspects, hardware maintenance
the quality and sustainability of achievements. issues, hand washing and hygiene awareness,
This requires deeper reflection on the process both at school and community level.IEC
that must guide TSC (Table 12.13). involves a specialised set of activities that
demand professionalism of a kind rather
Soft Inputs of Preparatory Phase Critical different from what line department personnel
are normally trained for. Social mobilisation for
12.74. The powerful element of TSC is the
changing attitudes is not a one-off activity. It is
emphasis on IEC activities to bring about
a complex process that takes time in the initial
behaviour change and a real demand for
stages. (See Box 12.5). There is a point of
improved sanitation, for which it earmarks 15
inflection after which the process takes off and
per cent of total cost. The unfortunate part
is led by the people themselves thereafter. But
appears to be that though enough resources
this happens only after a critical mass of
have been made available for these activities,
qualitative effort is put in. IEC cannot be a one-
their execution has not been effective at the
time affair with a rigid design. There is a need
cutting-edge level of implementation. A survey
to be flexible with space for cross learning and
in 40 GPs of 20 blocks across 10 districts in
mid-course correction.
Bihar, Chhattisgarh, Haryana, Karnataka, and

Box 12.5
Case Study of Gramalaya
According to Gramalaya, an NGO working in Tiruchirapalli district of Tamil Nadu since 1987, it takes about five
years to ensure sustained use of toilets. Gramalaya’s strength is also its women Self‐Help Groups. As the graph
shows, one third of the population generally get convinced in the first three months as a result of intense IEC
activities; the next 30 per cent after exposure visits to successful projects, where interaction with toilet users
brings about an attitudinal change. This happened within the first year. Another year sees the next 30 per cent
change after they see their neighbours using toilets. To convince the remaining 10 per cent is the hardest and
requires multiple strategies (including pressure from community) and goes into the third year.
3-Year Timeline—From Open Defecation to 100 per cent Use of Toilets

Note: Values as per cent population using toilets

 Rural Development 281

Need for Clear Time Phasing models permissible under TSC (Table 12.15).
UNICEF has supported development of cost-
12.75. A great deal of effort is required to
effective models of low cost superstructure
sustain the gains of the adoption phase to
using hollow bricks, tin sheets, bamboo,
ensure that slip-backs do not occur. Just as has
coconut leaves, palm leaves, waste wood etc.
been recognised in the new guidelines for the
These need to be more widely propagated,
Integrated Watershed Management
through partnerships with civil society.
Programme, perhaps the time has come to
develop a phased approach for the
More Imaginative Funding Options
implementation of the TSC. Such a phased
approach would make it possible to achieve 12.77. It is obvious from Table 12.14 that
universalisation with quality, based on a quality sanitation is not possible within the kind
process truly driven by demand from a of funding that has so far been provided or
community that is committed to improved encouraged for TSC. The maximum incentive
sanitation, being fully informed about its offered currently is Rs.2,200 per IHHL for BPL
benefits and, therefore, willing to take families (Rs.2,700 in hilly areas). This amount is
ownership for the campaign. clearly insufficient for even the most
rudimentary sanitation. The way forward is to

Table 12.14
Possible Choice of Technology in Rural Sanitation
Description Toilet types
Single pit Twin Pit Eco-sanitation Toilet with
bathroom
Where Not suitable in Not suitable in Suitable in water Provides for
suitable/ waterlogged, waterlogged, scarce areas/where privacy and
unsuitable shallow water table shallow water water table is deep; needs of
areas table areas waterlogged areas; women during
hard rock/impervious menstrual
soil regions, coastal periods
areas
Disadvantages Gets filled up fast; Groundwater Needs intense
while emptying pits, leaching if not behavioural/cultural
slippages can properly change; management
occur; groundwater designed inputs high
leaching if not
properly designed
Hardware Cost Rs 3000-3500 Rs 5000-6000 Rs 8000-12000 Rs 12000*
*Includes cost of twin pit and water connection

Broader Menu of Technologies Required combine the incentive amount provided by the
government with a loan amount on soft terms to
12.76. One of the limitations of the TSC is the be routed through women’s SHGs. In order to
narrow range of technology options offered in a make adoption of the above menu of
country with such immensely diverse technologies viable, it is critical that the loans
geographic, hydrologic, climatic and socio- component is actively canvassed and
economic conditions (high water table, flood converged with the new National Rural
prone, rocky ground, desert/water scarce areas Livelihoods Mission. The third component, other
and extreme low temperatures). This has led to than incentive and loan, would be the
many problems, including non-acceptance by beneficiary contribution, which would be easy to
local communities, water pollution especially in mobilize in a demand-driven programme, once
shallow water table regions, and waste of public the necessary effort has been put into the
funds. There is need to broaden the ranges of preparatory phase.
282 Mid-Term Appraisal of the Eleventh Five Year Plan

Table 12.15 Solid and Liquid Waste Management

Checklist of Parameters for a Sustainable
Sanitation Village 12.79. The TSC guidelines state that “PRIs are
Parameters required to put in place mechanisms for
a No open defecation in village leading to garbage collection and disposal and for
pollution of water sources preventing water logging. Upto 10 per cent of
b 100 per cent coverage and usage of toilets the project cost can be utilised for meeting
c Special provision for aged, specially abled, capital costs incurred under this component.
pregnant women Under this component activities like common
d 100 per cent school sanitation (separate compost pits, low cost drainage, soakage
toilets for girls and boys) channels/ pits, reuse of waste water, system for
e Water supply available for toilets collection, segregation and disposal of
f No additional burden on women for fetching household garbage etc may be taken up.” This,
water for toilets however, has been the weakest link in the TSC
g Presence of well maintained drainage system chain so far. Only 15,844 solid and liquid waste
(drain should not be clogged; water should management projects have been implemented
not stagnate; should not pollute water in the country so far. There is a serious lack of
sources) knowledge on appropriate technologies, costs
h Grey water treated and reuse and O&M procedures. A clear roster of options
i Presence of solid waste management and activities needs to be developed and
systems (like composts etc; solid waste not disseminated through the best training
found littered in the village; not clogging institutions in India. A large number of Master
drains) Trainer Organisations need to be developed
j High in hygiene behaviour (Every one within each State who would in turn build
washes hand after defecation; handles capacities of functionaries and people’s
drinking water with clean hands ) representatives at the GP level.
k Issues of menstrual hygiene addressed
l Local capacity available for operating and Capacity Building
maintain sanitation systems
m Walter quality tested by the community twice 12.80. The key to success of TSC lies in
a year [indicative] and information developing capacities for its effective
disseminated and follow up by confirmative implementation. This has two components – a)
tests and follow up action taken altering the human resource profile of the
n Reduction in water borne diseases in the implementing agency to include social workers
village validated by ASHA; No deaths and social anthropologists/psychologists who
reported could play a key role in social mobilisation as
Source: Arghyam (2009): Step by Step: What it Takes to also attitude-behaviour change and b) training
Achieve Sustainable Sanitation?, Submission to the Planning
Commission of the personnel deployed. A whole army of
masons is required to be developed and trained
Sanitation and Water Supply Together in setting up different sustainable sanitation
12.78. It is evident that the use of toilets options. PRI members have to be trained to
cannot be sustained without provision of water become change agents. Absence of requisite
supply. Many NGP villages have slipped back capacity with PRIs has impacted the social
to open defecation because the promised water mobilisation processes, as well as maintenance
supply never materialised. The TSC has of the infrastructure in the post-implementation
overlooked the water needs of sanitation. The phase.
DDWS needs to ensure that the two activities
under its charge are taken up conjointly in every 12.81. The DDWS has launched the concept
village. Otherwise, failure is in-built into the of Communication and Capacity Development
effort. Units (CCDUs) at the state level to promote the
reform initiatives in drinking water supply and
sanitation. An evaluation by WaterAid shows
that CCDUs are present in almost all the states
but not always very active or effective. They
 Rural Development 283

have not yet emerged as resources to bank on 12.85. Under IGNOAPS, a central assistance
for sanitation. Generally, capacity building has of Rs.200 per beneficiary is provided to BPL
tended to be a one-off activity, without follow-up applicants over 65 years of age. Pension is to
to ensure that the inputs of training are being be credited wherever possible in a post office or
translated into results on the ground. a bank account. The Government of India urges
State Governments to make an equal
12.82. There is a need to set up dedicated contribution, thereby increasing the pension
resource centres at the block-level, which will amount to Rs. 400 per month. The coverage
impart hands-on training to masons on various under IGNOAPS, as compared to the estimated
sustainable sanitation models as also PRI numbers is given at Annexure-I. The national
representatives and functionaries to undertake coverage of eligible beneficiaries under
social mobilisation programmes and to help IGNOAPS is about 105 percent. Only Goa has
them understand issues of O&M and less than 40 percent coverage. Kerala, Gujarat
sustainability. and Orissa cover 40-70 percent eligible
beneficiaries.
12.83. If we are able to address this entire
range of issues, we could look forward not only 12.86. The amount of pension paid per month
to meeting the MDGs but also creating including the State’s contribution is given in
sustainable sanitation villages across the length Annexure-II. At present, 18 States and Union
and breadth of India. Table 12.15 summarises a Territories are providing Rs.400 or more as
checklist of possible parameters for judging pension under old age pension. These are
whether a village has truly acquired that status. Delhi, Goa (Rs.1000), Haryana, Chandigarh
(Rs.700), Pondicherry (Rs. 600), A&N Islands,
National Social Assistance Programme Dadra & Nagar Haveli and Maharashtra
(NSAP) (Rs.500), Punjab (Rs.450), Gujarat, Jharkhand,
Karnataka, Rajasthan, Uttarakhand, Sikkim,
12.84. An integral element of India’s battle with
Tripura, Tamil Nadu, and West Bengal (Rs.
poverty and distress is to provide succour to
400). Another 11 States and Union Territories
senior citizens, differently abled people and
are providing pension between Rs.200 and
others who have suffered due to mishaps in life.
Rs.400. These are Himachal Pradesh, J&K,
The NSAP refers to a basket of welfare
Chhattisgarh, Nagaland, Uttar Pradesh, and
schemes that provide social assistance to a
Lakshadweep, Madhya Pradesh, Kerala,
wide range of people in need. At the beginning
Assam, Meghalaya, Mizoram, The remaining
of the Eleventh Plan, the NSAP comprised the
six States and Union Territories are disbursing
Indira Gandhi National Old Age Pension
pension at the rate of Rs.200 p.m. only.
Scheme (IGNOAPS), the Annapurna Scheme
and National Family Benefit Scheme (NFBS). In
12.87. Many states are contributing from their
February 2009, two more schemes were added
own funds towards pension for old people in the
under NSAP – the Indira Gandhi National
age group of 60-64, who are not covered by the
Widow Pension Scheme (IGNWPS) and the
IGNOAPS. These include Andhra Pradesh,
Indira Gandhi National Disability Pension
Chhattisgarh, Goa, Himachal Pradesh,
Scheme (IGNDPS).
Jharkhand, Madhya Pradesh, Orissa, Punjab
(for women), Rajasthan (above 58 for men and
Table 12.16
NSAP Physical and Financial Progress in above 55 for women), Uttar Pradesh,
Eleventh Plan Uttarakhand, Chandigarh, Delhi and
Year Expenditure Beneficiaries Puducherry.
reported (in lakhs)
(Rs. Crores) 12.88. Supplementing IGNOAPS since 2000-
2006-07 1967.96 98.24 2001 is the Annapurna scheme, which aims at
2007-08 3116.17 128.92 providing food security to senior citizens who,
2008-09 3874.92 164.55 though eligible, remain uncovered under the
IGNOAPS. They receive 10 kg of foodgrains
per month free of cost through Fair Price Shops
284 Mid-Term Appraisal of the Eleventh Five Year Plan

(Table 12.17). Progressive absorption under scheme. 24.30 lakh beneficiaries have been
IGNOAPS should allow this scheme to end covered so far under IGNWPS and 5.23 lakh
within the Eleventh Plan. under IGNWPS.

Table 12.17 Computerisation of Data-bases

Beneficiaries under Annapurna
12.91. In order to increase transparency and
Year Beneficiaries under accountability, it has been decided to
Annapurna (million) computerise the data base of beneficiaries
2002-03 0.78 under various schemes of NSAP. NIC was
2003-04 1.06 entrusted with the project and the software has
2004-05 0.82 been developed for all pension schemes. The
2005-06 0.85 software captures all essential processes from
2006-07 0.87 identification till termination of the pension.
2007-08 1.05 Legacy Data formats have been provided to
2008-09 1.01 States and they have been asked to upload the
legacy data of beneficiaries in a time bound
manner. The NSAP website has been launched
12.89. The NFBS provides for central
in 2009. Data of 104 lakh beneficiaries has
assistance of Rs.10,000 in the case of death of
been uploaded on the website so far.
the primary bread-winner (18 to 64 years of
age) of the family (Table 12.18). The coverage
Suggestions for Way Forward
under NFBS, as compared to the estimated
numbers is given at Annexure-III. Overall 97 • Pensions need to be indexed to inflation
percent of the beneficiaries have been covered • States need to make their share of payment
during 2008-09. States with less than 20 under IGNOAPS
percent coverage are Nagaland and NCT Delhi. • As suggested in the Eleventh Plan
document, NFBS must cover deaths of any
Table 12.18 adult member of the family in a BPL
Beneficiaries under NFBS household, without limiting it to the
Year Beneficiaries (in lakhs) breadwinner.
2002-03 0.85 • As suggested in the Eleventh Plan
2003-04 2.09 document, national schemes for
2004-05 2.61 maintenance of orphans, street children and
2005-06 2.76 other most vulnerable sections also need to
2006-07 2.43 be started.
2007-08 3.34 • Rs. 17,747 crore has been provided for
2008-09 4.23 NSAP in the Eleventh Plan out of which
Rs.12,590 crore has already been released
IGNWPS and IGNDPS to the States in first three years of the plan
period leaving Rs. 5157 crore for the
12.90. In February 2009, the IGNWPS was remaining period of the Eleventh Plan.
started to provide pension of Rs. 200 p.m. per IGNWPS and IGNDPS have been launched
beneficiary. to BPL widows in the age group 40- in February 2009. Keeping in view the
64 years. The estimated number of number of beneficiaries to be covered and
beneficiaries under Indira Gandhi National the new schemes proposed, additional
Widow Pension Scheme (IGNWPS) is 45 lakhs. outlays would be needed for NSAP in
States are in the process of identifying eligible remaining two years of the Eleventh Plan.
beneficiaries under the scheme. The IGNDPS • With the transfer of programme
was also started in the same month for BPL implementation to states from 2002-03 (and
persons with severe or multiple disabilities (in hence change from a Centrally Sponsored
the age group 18-64 years) at the rate of Rs. Schemes (CSS) to Additional Central
200 p.m. per beneficiary. It is estimated that 15 Assistance (ACA) in budgetary terms),
lakh beneficiaries are to be covered under this reporting and monitoring by the
 Rural Development 285

Government of India has weakened. These have had to suffer great hardships in the
systems need to be strengthened transition period. Aged and disabled people
• The previous fund flow model of pension may not be able to reach the PO or banks
transfers directly to DRDAs may be at all. The banking correspondent model
preferable to routing through state with UID biometrics could be a way out by
treasuries. The latter encourages diversion providing payments at the doorstep in a
of NOAPS for other purposes (Gujarat, transparent manner.
Jharkhand and Orissa made no NOAPS
Council for Advancement of People’s Action
payments in some of the early years of this
and Rural Technology (CAPART)
decade). In Bihar, Jharkhand, West Bengal
and Manipur there are reports of delays of 12.92. CAPART is an autonomous body within
many months thanks to the state treasury the Ministry of Rural Development, registered
route being adopted. as a society under the Societies Registration
Act. It is the largest single agency promoting
• Documentary requirements for proving voluntary action for rural development in India.
eligibility and identity have proved
extremely onerous to beneficiaries who are 12.93. The Eleventh Plan has seen a major
among the most vulnerable. It is to be initiative in 2009 for reform of CAPART. A
hoped that the use of the UID (once Committee headed by Member (Rural
available) will ease some of these Development), Planning Commission, is
pressures preparing a blueprint to revitalise the
• Many states have devised somewhat organisation to introduce reforms in its
arbitrary and harsh exclusion criteria which programmes and professionalise its functioning
have been applied in a mechanical manner and governing structures to build powerful
that discriminates against some of the most partnerships with civil society to promote
vulnerable. Even having a living adult son creative and innovative work that would also
meant exclusion in some cases. Such help improve implementation of various
practices must be stopped. programmes of the Ministry of the Rural
Development such as MGNREGA.
• Shifting to payment through post offices or Distinguished members of the Executive
banks is a significant step in ensuring Committee of CAPART have been divided into
transparency. But as under MGNREGA, sub-groups that will come up with detailed
where density of banks/POs is low or recommendations on a comprehensive design
because of lack of adequate staff, people for CAPART reform.
286 Mid-Term Appraisal of the Eleventh Five Year Plan

Annexure-I
Coverage of beneficiaries under IGNOAPS, 2009-10
S. No States/UTs Estimated no. of No. of beneficiaries in % coverage
beneficiaries under 2009-10
IGNOAPS as per
2004-05 poverty
estimate

1 2 3 4 5
1 Andhra Pr. 6,78,294 9,19,230 135.52
2 Bihar 15,27,246 21,92,357 143.55
3 Chhattisgarh 4,31,086 5,09,842 118.27
4 Goa 11,592 2,687 23.18
5 Gujarat 4,57,296 2,11,057 46.15
6 Haryana 1,69,400 1,30,306 76.92
7 H.P. 42,400 85,637 201.97
8 J&K 27,162 1,29,000 474.93
9 Jharkhand 4,39,673 6,43,000 146.25
10 Karnataka 7,65,500 8,34,405 109.00
11 Kerala 3,93,000 1,76,064 44.80
12 Madhya Pr. 11,31,382 10,66,051 94.23
13 Maharashtra 19,37,477 10,24,364 52.87
14 Orissa 10,16,160 6,43,400 63.32
15 Punjab 1,44,060 1,59,292 110.57
16 Rajasthan 6,17,032 5,28,322 85.62
17 Tamil Nadu 9,76,950 9,04,759 92.61
18 Uttar Pr. 26,50,568 33,00,260 124.51
19 Uttaranchal 1,91,268 1,69,102 88.41
20 West Bengal 10,36,659 11,91,716 114.96
NE States
21 Arunachal Pr. 6,096 14,500 237.86
22 Assam 2,11,184 6,28,949 297.82
23 Manipur 19,496 72,514 371.94
24 Meghalaya 14,222 37,146 261.19
25 Mizoram 4,735 23,747 501.52
26 Nagaland 12,885 28,053 217.72
27 Sikkim 4,322 18,879 436.81
28 Tripura 34,945 1,36,592 390.88
UTs
29 A & N Island* 2,938 861 29.31
30 Chandigarh 2,485 4,464 179.64
31 D&N Haveli 1,992 911 45.73
32 Daman & Diu 630 95 15.08
33 Delhi 86,289 1,21,974 141.36
34 Lakshadweep 480 36 7.50
35 Pondicherry 14,112 20,757 147.09
Total 1,50,61,016 1,59,30,329 105.77
 Rural Development 287

Annexure-II
Pensions provided under IGNOAPS by Centre and States
Name of State/UTs Amount of pension Contribution of State Mode of
provided as Central Govt. per pensioner disbursement
Assistance per month under
IGNOAPS
1 Andhra Pr. Rs. 200.00 Nil Bank/cash
2 Bihar Rs. 200.00 Nil Post Office A/c
3 Chhattisgarh Rs. 200.00 Rs. 100.00 Bank/cash
4 Goa Rs. 200.00 Rs. 800.00 Post office
5 Gujarat Rs.200.00 Rs.200.00 M.O.
6 Haryana Rs. 200.00 Rs. 500.00 Cash
7 H.P. Rs. 200.00 Rs. 130.00 MO/BANK/PO
8 J&K Rs. 200.00 Rs.125.00 BANK
9 Jharkhand Rs. 200.00 Rs.200.00 BANK/P.O./CASH
10 Karnataka Rs. 200.00 Rs. 200.00 BANK/MO
11 Kerala Rs. 200.00 Rs. 50.00 MO
12 Madhya Pr. Rs. 200.00 Rs. 75.00 BANK/PO/MO
13 Maharashtra Rs. 200.00 Rs. 300.00 BANK/PO.
14 Orissa Rs. 200.00 Nil CASH
15 Punjab Rs. 200.00 Rs.250.00 BANK/CASH
16 Rajasthan Rs. 200.00 Rs. 200.00 MO/CASH
17 Tamil Nadu Rs. 200.00 Rs. 200.00 MO
18 Uttar Pr. Rs.200 Rs.100.00 BANK
19 Uttaranchal Rs. 200.00 Rs. 200.00 BANK/PO/MO
19 Uttaranchal Rs. 200.00 Rs. 200.00 BANK/PO/MO
20 West Bengal Rs. 200.00 Rs. 200.00 BANK/PO/MO/
CASH
NE States
21 Arunachal Pr. Rs. 200.00 Nil CASH
22 Assam Rs. 200.00 Rs.50.00 BANK/CASH
23 Manipur Rs.200.00 Nil CASH
24 Meghalaya Rs.200.00 Rs.50.00 BANK/CASH/PO
25 Mizoram Rs. 200.00 Rs. 50.00 BANK/CASH
26 Nagaland Rs. 200.00 Rs.100 MO
27 Sikkim Rs. 200.00 Rs. 200.00 CASH
28 Tripura Rs. 200.00 Rs. 200.00 BANK/CASH
UTs
29 A & N Island Rs. 200.00 Rs. 300.00 PO
30 Chandigarh Rs. 200.00 Rs.300.00 BANK
31 D&N Haveli Rs.200.00 Rs.300.00 PO
32 Daman & Diu Rs. 200.00 Nil BANK
33 Delhi Rs. 200.00 Rs. 800.00 BANK/PO
34 Lakshadweep Rs. 200.00 Rs. 100.00 CASH
35 Pondicherry Rs. 200.00 Rs. 400.00 BANK/CASH/PO
288 Mid-Term Appraisal of the Eleventh Five Year Plan

Annexure- III
National Family Benefit Scheme (NFBS)
Sl. States/UTs Mortality Poverty Estimated No. of No. of % of
No. figures for estimates of number of beneficiarie benefici coverag
age group Planning beneficiaries s covered aries e 2008-
20-64 years Commission for under NFBS during covered 09
as per 2004-05 based 2007-08 during (7/5%)
projected on Uniform 2008-09
population Recall Period
as on (URP)
1.3.2006 Consumption
and SRS ( in percentage)
2003
1 2 3 4 5 6 7 8
Andhra
1 Pradesh 2,22,039 15.8 17,541 17,261 15,067 86
2 Bihar 2,01,373 41.4 41,684 27,476 22,421 54
3 Chhattisgarh# 1,00,469.6 40.9 20,546 9,782 10,343 50
4 Goa*# 6,760 13.8 466 257 282 61
5 Gujarat 1,50,976 16.8 12,682 7,128 7,554 60
6 Haryana 54,408 14 3,809 2,250 4,481 118
7 Himachal Pr. 17,078 10 854 2,000 2,000 234
8 J & K# 42,885 5.4 1,158 6,123 2,689 232
9 Jharkhand# 10,4170 40.3 20,990 4,378 19,810 94
10 Karnataka 1,66,378 25 20,797 21,246 19,054 92
11 Kerala 75,309 15 5,648 27,611 26,360 467
Madhya
12 Pradesh 1,96,703 38.3 37,669 40,000 44,924 119
13 Maharashtra 2,71,356 30.7 41,653 19,488 47,484 114
14 Orissa 13,0,914 46.4 30,372 30,453 33,384 110
15 Punjab 63,612 8.4 2,672 1,290 2,411 90
16 Rajasthan 1,37,287 22.1 15,170 703 0
17 Tamilnadu 2,12,970 22.5 23,959 6,877 17,913 75
18 Uttar Pradesh 5,36,369 32.8 87,964 41,705 87,118 99
19 Uttarakhand 36,782 39.6 7,283 5,124 70
20 West Bengal 2,05,624 24.7 25,395 48,132 35,261 139
Arunachal
21 Pr.$# 3,569 17.6 314 347 100 32
22 Assam 1,05,278 19.7 10,370 7,514 5,894 57
23 Manipur$# 7,785 17.3 673 5,419 1,670 248
24 Meghalaya$# 7,078 18.5 655 1,144 981 150
25 Mizoram$# 3,078 12.6 194 614 316
26 Nagaland$# 6,478 19 615 110 110 18
27 Sikkim$# 1,862 20.1 187 401 100 53
28 Tripura$# 11,255 18.9 1,064 4,164 8,438 793
A&N
29 Islands*# 1,664 22.6 188 4 2
30 Chandigarh*# 4,279 7.1 152 300 396 261
31 D&N Haveli*# 976 33.2 162 82 0
Daman &
32 Diu*# 766 10.5 40 0
33 NCT Delhi# 40,779 14.7 2,997 400 400 13
 Rural Development 289

Sl. States/UTs Mortality Poverty Estimated No. of No. of % of

No. figures for estimates of number of beneficiarie benefici coverag
age group Planning beneficiaries s covered aries e 2008-
20-64 years Commission for under NFBS during covered 09
as per 2004-05 based 2007-08 during (7/5%)
projected on Uniform 2008-09
population Recall Period
as on (URP)
1.3.2006 Consumption
and SRS ( in percentage)
2003
1 2 3 4 5 6 7 8
Lakshadweep*
34 # 261 16 21 12 20 95
35 Pondicherry*# 4,654 22.4 521 0
TOTAL 31,33,223 4,36,465 3,34,053 4,22,407 97
Notes :
* Total projected population of age groups 20-64 as on 1.3.2006 in respect of Goa and Uts (except NCT Delhi) is 2,652,000
which is divided among them in proportionate to their population in age group 20-64 as per census 2006.
$ Total projected population of age groups 20-64 as on 1.3.2006 in respect of NE States (except Assam) is 69,67,000 which is
divided among them in proportionate to age group 20-64 as census 2004.
#Age specific death rates in respect of these States/Uts are not available in SRS 2003. Therefore, the projected Crude Death Rate
for 2006-10 in respect of these States has been taken into account. Crude Death Rate in respect of Goa and UTs(except NCT
Delhi) are not available, therefore the All India Crude Death Rate has been taken into account for them.
 13
Special Area Programmes

13.1 The Eleventh Plan recognises that • The Districts Component covering 250
inclusive growth necessitates a sharper focus districts (including 147 RSVY districts) ,
on slower growing states, especially the implemented by the Ministry of
backward regions within these states. Higher Panchayati Raj, and
levels of public investment are required to
redress the imbalance in development of • Special Plans for Bihar and the
physical and social infrastructure, which would Kalahandi, Bolangir and Koraput (KBK)
in turn provide the basis for overall faster rates districts of Orissa, implemented by the
of growth in the economy in subsequent Plan Planning Commission.
periods. In order to supplement the efforts of 13.3 Districts Component of BRGF has the
state governments for development of areas following objectives:
with special problems, the central government
provides Additional Central Assistance under • Fill critical infrastructure gaps and other
programmes such as the Backward Regions development needs not adequately met
Grant Fund, Border Area Development through existing programmes
Programme and Hill Areas Development
Programme/Western Ghats Development • Capacity building and professional
Programme. support to promote participatory
planning, decision making,
Backward Regions Grant Fund (BRGF) implementation and monitoring at
panchayat and municipality level that
13.2 The BRGF was launched in 2006-07. reflects local felt needs
Implemented by the Ministry of Panchayati Raj • Converge, through supplementary
and the Planning Commission, it subsumes the infrastructure and capacity building, the
Rashtriya Sam Vikas Yojana (RSVY), which substantial existing developmental
was launched in 2003-04 and was being inflows into these districts
administered by the Planning Commission. The
BRGF covers 250 districts in 27 States, of The Districts Component of the BRGF has two
which 232 districts fall under the purview of Part funding windows:
IX and Part IX-A of the Constitution dealing with
the Panchayats and the Municipalities • Capability Building Fund and
respectively. The remaining 18 districts are • A substantial Untied Grant
covered by other local government structures,
such as Autonomous District and Regional 13.4 The Capability Building Fund amounting
Councils under the Sixth Schedule of the to Rs. 250 crore per annum (at Rs. 1 crore per
Constitution and state specific arrangements as district) is to be used primarily to build capacity
in the case of Nagaland and the hill areas of in planning, implementation, monitoring,
Manipur. The Fund has two components: accounting and improving accountability and
transparency which would include
arrangements for contracting and outsourcing.
 Special Area Programmes 291

13.5 The Untied Grant is to be used by • Addressing specific district-wise

Panchayats and Urban Local Bodies (ULBs) priorities identified as described by the
guided by transparent norms for filling critical guidelines of the Planning Commission
gaps vital for development remaining even after on district planning
other major interventions, identified through the
participative planning processes. The Plan • A reasonable percentage of funds may
prepared by the Panchayats and ULBs and be earmarked as performance based
consolidated by the District Planning incentives.
Committees (DPCs) is to be considered and 13.8 The Hon’ble President in her address to
approved by a High Powered Committee Parliament on 4 June 2009 spoke of
headed by the State Chief Secretary and “restructuring the Backward Regions Grant
consisting of, inter-alia, the Development Fund, which overlaps with other development
Commissioner, Planning Secretary, State investment, to focus on decentralised planning
Secretary of Panchayati Raj, State Urban and capacity building of elected panchayat
Development Secretary, State Secretaries in- representatives.” The Government is currently
charge of sectors concerned, a representative engaged in this exercise. Meanwhile, a World
of the Ministry of Panchayati Raj and State Plan Bank study on BRGF across eight States has
Adviser of the Planning Commission as well as just been completed.
other Government of India nominees.
13.9 Drawing on these sources and based
13.6 The allocation criteria of Untied Grant on the short experience of implementation of
across Districts are: BRGF across the country, certain issues need
to be highlighted:-
• Every district receives a minimum of Rs.
10 crore per annum as untied grants (a) The volume of funds provided under
• Fifty per cent of the balance allocation BRGF is insufficient to bridge development
under the scheme is allocated on the gaps and address backwardness. Most Gram
basis of the share of the population of Panchayats (GPs) get Rs. 2 - 6 lakh per
the district in the total population of all annum. Increasing the BRGF allocation is
the backward districts desirable because the distribution of the
amount allocated leads to very small amounts
• The remaining 50 per cent is distributed for each unit and smallness of the amount leads
on the basis of the share of the area of to ‘disinterest’ and lack of attention to the other
the district in the total area of backward two objectives of improving district planning and
districts capacity building.
(b) BRGF districts with a large population
• RSVY districts are continuing to receive
are at a disadvantage since they get very low
funds as per RSVY norms till the entire
per-capita funding. This is primarily a result of
amount of Rs. 45 crore (plus the
the large proportion of the development grant,
existing monitoring fee) is released to
which is allocated equally to all districts
each district. However, by 31 December
regardless of their size.
2009, all the 147 RSVY districts had
(c) The best way to improve targeting of
received their total entitlement of Rs. 45
BRGF is to move the focus of intervention
crore each.
downwards towards the block. There are many
13.7 Each state is to indicate the normative instances in India of relatively advanced
formula that will be used for the allocation of districts with pockets of backwardness within.
BRGF funds to each Panchayat and ULB This is especially the case with tribal blocks.
(excluding capital cities/cities with a population (d) The BRGF guidelines speak of
of 1 million). Components that go into the performance-based funding system but this has
formula may include: rarely been followed as a result of which there
are few incentives for improved performance.
• Any index prepared by the states to What appears to have happened is that in a
include backwardness quest for flexibility, outputs have been

 
292 Mid-Term Appraisal of the Eleventh Five Year Plan

compromised badly. The ideal approach would district. Table 13.1 shows significant delays in
be to lay down nationally, in consultation with some States, while others have shown that
states, the outcomes of a given number of timely disbursals are indeed possible down the
parameters in each district, provide the funds line.
as untied and periodically monitor and later
evaluate the implementation. Table 13.1
(e) In many states, PRIs have become Timing of Funds Release from Centre to
“petitioners” to the DPC, which carry ultimate State and State to PRIs/ULBs, 2007-08
discretion. Most of the time, the DPC technical State
From Centre From State to
secretariat is very weak or non-existent. Most to State PRIs/ULBs
st
examples of convergence are of PRIs using March 2008 (1
Andhra release);
BRGF funds as bandages to fix deficiencies of Pradesh
January 7, 2008
March 2009 (2
nd

other schemes, rather than a relationship of release)

positive synergy. PRIs/ULBs are unlikely to play Release only for
a leading role in integrated planning when its Assam
one district,
No release yet
discretionary budget is dwarfed by other (Morigaon) only
players. DPCs should focus on technical during 2009-10
Madhubani : March
support and not control PRI/ULB priorities. The
2008;
best way would be to specify a list of non- Bihar January 2008 Samastipur: May
eligible expenditures (negative list) prior to the 2008 (1
st

start of planning and then allow PRIs/ULBs full instalment)

discretion to allocate the BRGF funds within the Chhattisgarh
December 12, February 16, 2009
provided menu (positive list). It may be prudent 2008 and March 7, 2009
to specify that investments should be in public Madhya
October 31, 2007 December 7, 2007
Pradesh
services and infrastructure, rather than in
Ganjam:
private projects, which benefit only a few Ganjam : January
December 27,
individuals. It would be better to undertake an 29, 2008
Orissa 2007
Dhenkanal: July 3,
ex-post monitoring of compliance and audit, Dhenkanal: May
2009
rather than an ex-ante approval in each 8, 2009
instance, which undermines PRI/ULB March 2008 May 27, 2008
Rajasthan (90%) + March (90%) + July 2009
autonomy. An earlier start to the planning
2009 (10%) (10%)
process with a clear budget envelope and Bankura: February
planning calendar would be of great help to February 2008 21, 2008
PRIs/ULBs. West Bengal
(90%) Purulia : February
28, 2008
13.10 While the above issues are important, a Source: The First Independent Review of BRGF, World Bank,
2009
major bottleneck in planning and budgeting
processes is the flow of funds which is
13.11 The current disbursement system
impeding utilisation of BRGF funds. There is a
based on UC submission could be changed to a
one financial year (in some places two-year)
replenishment system, involving front-loading of
backlog in releases from the Centre to the
funds with regular replenishments and allowing
States due to the layers of “approval or
a higher level of unspent funds. It would be best
review/veto” of development plans. Subsequent
to directly transfer funds from state to
disbursements are further delayed by the
PRIs/ULBs using electronic bank transfers.
current requirement of submission of Utilisation
Certificates (UCs) (100 per cent for Year T-2
13.12 Resources and mandates should be
and 75 per cent for Year T-1). A major
allocated to the different tiers as per the
complication is created by the fact that well-
principle of subsidiarity and not retained at the
functioning PRIs/ULBs who utilise and account
district level. Given resource constraints and
for funds speedily, have to wait for full
the presence of relative backwardness even
compliance by their slower peers. Requiring
within a district, there should be focus on the
100 per cent UC for any year means that even
block level.
one laggard can affect the release for the entire
 Special Area Programmes 293

Restructuring BRGF Special Plan for Bihar and KBK Districts of

Orissa
13.13 In the light of experience gained, BRGF
is proposed to be restructured, to have 13.18 These are the other two components of
following components : the BRGF. The Special Plan for Bihar (SPB)
has been formulated to bring about
13.14 Development Grant to 250 Districts or improvement in sectors like power, road
identified blocks based on the following non- connectivity, irrigation, forestry and watershed
negotiable principles: development. Some of the programmes taken
up under the Special Plan for Bihar are
• Preparation of participatory District restoration of Eastern Gandak Canal,
Plans as per the Guidelines issued by development of State Highways, strengthening
Planning Commission Manual for of sub-transmission system in south Bihar and
Integrated District Planning renovation and modernisation of Barauni and
Muzaffarpur Thermal Power Station.
• Consolidation of the Plans of lower tiers
by the District Planning Committees 13.19 The KBK programme covering Koraput,
Bolangir and Kalahandi districts of Orissa is
• Priority to backward blocks within the also being given funds as part of the process
districts for developing backward areas. These districts
have since been re-organised into eight
13.15 Capability Building Grant to all the districts. The State Government had started
districts in the country, with a view to build the preparing a Special Plan from 2002-03. An
capabilities of the local governments in terms of allocation of Rs. 250 crores per year is being
basic core staff and infrastructure, including the made during the Eleventh Plan for these
ICT and Panchayat Ghars, and providing districts, which includes Rs. 120 crores under
adequate training to the functionaries of the the District Component of BRGF and Rs. 130
PRIs to enable them discharge their crores as Special Plan for KBK Districts.
responsibilities effectively and efficiently.
Border Area Development Programme
13.16 Strengthening PRIs to make them (BADP)
Effective Institutions of Local Government: This
component would include infrastructure, training 13.20 As part of the comprehensive approach
& capacity building and e- enablement. Each for border management, a programme covering
Panchayat would first make an effort to get 363 Blocks of 96 border districts across 17
funds for infrastructure from other sources and States which have international borders is being
use this component only as a last resort since implemented. Planning Commission allocated
the outlay per panchayat is likely to be relatively funds to these annually, taken into account: (i)
modest. the length of International Border, (ii) Population
of the border block and (iii) Area of the border
13.17 Incentivise States to transfer Functions, block (sq.km). Weightage of 15 per cent over
Functionaries and Funds as per the Eleventh and above the total allocation is also given to
Schedule and other matters related to States having hilly/desert/Kutch areas.
Panchayats/PESA: The States may be asked to
sign MoUs on the reforms they would undertake 13.21 While the Government of India lays
within a specified time-frame. This may not down the broad guidelines, the schemes/works
necessarily be a separate component but fund under BADP are to be finalised and approved
release under the first two components could by the State Government in consultation with
be made conditional upon States undertaking PRIs/District Level Councils/Traditional
reforms as per the MoUs signed. Councils/local people/voluntary agencies.
BADP funds are to be used for meeting the
critical gaps and to meet the immediate needs
of the border population. Planning and

 
294 Mid-Term Appraisal of the Eleventh Five Year Plan

implementation of BADP schemes should be on • In order to enhance the effectiveness of

participatory and decentralised basis thorough the programme, the institutional
the Panchayati Raj Institutions/Autonomous arrangements and staffing of the
Councils/Other local bodies/councils. planning and implementing departments
in border areas need to be
13.22 In 2007-08, Rs.580 crore was allotted. strengthened. The staff should be
The entire amount was disbursed to the States specifically trained and given a “border
during the year. A Task Force was set up orientation”. The staff may also be given
during the Eleventh Plan period to suggest a special border package as an
Comprehensive Development of Border Areas. incentive.
Based on its recommendations and the
experience of BADP so far, the following • A proper MIS including an inventory of
suggestions may be implemented to improve assets created under BADP needs to
the performance of BADP: be developed.
• Monitoring and Review of the
• The Task Force has suggested that the programme needs to be tightened and a
allocation for the programme needs to system of monitoring by senior officers
be increased to at least Rs. 1000 crore of the State should be institutionalised.
per annum. However, this can only be Third Party evaluation and social audit
considered if a comprehensive set of also need to be built into the
reforms (as specified below) are put in programme.
place first to make BADP a more
effective instrument for border area • An evaluation study would be
development. undertaken to gauge the impact of the
programme, analyse whether efforts
• The Central Ministries/Departments have been made for convergence of
should modify the guidelines of their other schemes with the programme and
schemes relaxing the norms for border put forward an agenda for reform.
areas so that all border villages are
covered irrespective of their area and HILL AREA DEVELOPMENT PROGRAMME
population. While modifying the (HADP) / WESTERN GHATS DEVELOPMENT
guidelines, the departments will also PROGRAMME (WGDP)
revise the cost norms for border areas
and provide necessary flexibility in order 13.23 The HADP/WGDP have been
to accommodate accessibility issues. formulated to deal with special problems faced
The Planning Commission has asked by identified regions due to their distinct geo-
the Department of Border Management physical structure and poor socio-economic
to draft specific changes in these development. These programmes have been in
guidelines which can then be shared operation since the Fifth Five Year Plan (1974-
with concerned departments 79) to supplement the efforts of the State
Governments in the development of
• The baseline expenditure by the States ecologically fragile designated hill
in these blocks must be specified as areas/western ghats. The designated hill
there is a tendency to replace state areas/western ghats talukas covered under
funds with central funds. HADP/WGDP include:
• The plans for border villages/blocks
(i) Two hill districts of Assam – North
must show convergence of the flow of
Cachar and Karbi Anglong
funds from all Central and State
Schemes and identify the gaps in (ii) Major part of Darjeeling District of West
physical and social infrastructure and Bengal
livelihood options which can then be
(iii) Nilgiris District of Tamil Nadu
filled through funds available under
BADP.
 Special Area Programmes 295

(iv) 175 Talukas of Western Ghats, viz. Special Central Assistance that flows to
Maharashtra (63), Karnataka (40), State Plans.
Kerala (36), Tamil Nadu (33) and Goa
• In 2008, Common Guidelines for
(3).
Watershed Development Projects have
been issued by the National Rainfed
13.24 The main objectives of the programme
Areas Authority. These must be strictly
are eco-preservation and eco-restoration with a
followed. Plans should be prepared with
focus on sustainable use of bio-diversity. The
local participation and priorities must be
programme also focuses on the needs and
locally decided.
aspirations of local communities, ensuring
community participation in the design and • Efforts should be made to keep aside 5
implementation of strategies for conservation of per cent of allocation for action research
bio-diversity and sustainable livelihoods. on livelihood options suited to hill/
Watershed based development is the thrust Western Ghats areas. In addition, up to
area of the programme based on a participatory 15 per cent of the funds can be used for
approach to ensure efficiency, transparency ecological programmes of urban
and accountability. infrastructure in urban centric hill areas,
namely, Darjeeling and the Nilgiris.
13.25 The programme has been in operation
for four decades now. There is need for a • Efforts should be made to ensure
comprehensive evaluation of its impact and convergence of resources for each area
future directions it needs to take to make it and preparation of a five year plan on
more effective. participatory basis, drawing upon a long
term vision.
13.26 The Central Government has been • Basic data and satellite imageries
funding HADP/WGDP as Special Central should be maintained for future
Assistance (SCA) for Hill Areas Development. evaluation. Expected outcomes, along
The SCA under these programmes is to be with physical and financial targets for
utilised as an additive to normal state plan each project, should be in the public
flows. The SCA is presently being apportioned domain, with a view to maintaining
between the HADP and WGDP in the ratio of transparency. These can be displayed
60:40. Under HADP, funds are distributed through boards at work sites and
amongst the States implementing the panchayat offices and through
programme by giving equal weightage to area State/district websites.
and population whereas under WGDP 75 per
cent weightage is given to area and 25 per cent • Concurrent third party monitoring
to population. Ninety per cent of the total should be made an integral part of the
approved outlay of SCA is central grant portion programme.
while 10 per cent is State share.
Bundelkhand Development Package
13.27 During the Eleventh Plan, Rs. 854 crore
has been allocated for HADP/WGDP till now. 13.28 The rainfed farming area in the country
Clearly, this is too meagre. To improve the which account for 60 per cent of the cultivated
functioning of HADP/WGDP the following area and are home to majority of our rural poor
suggestions may prove useful: and marginal farmers have not received the
required differentiated technological,
• The objective of bringing about greater institutional, infrastructural and investment
regional balance through eco- support in the past. These areas are
preservation and eco-restoration with a characterised by high incidence of poverty, low
focus on sustainable use of bio-diversity education and health status, high distress in the
and meeting the aspirations of local farming sector, distress migration, low
community must be the overriding employment opportunities, and vulnerability to a
consideration for determining the use of variety of high risks. Repeated water scarcity

 
296 Mid-Term Appraisal of the Eleventh Five Year Plan

and drought have severely affected livelihood of • To develop seven lakh hectare of land
these rural poor. The low incomes and poor in UP and four lakh hectare in MP with
growth of this region over years has led to large watershed development measures.
intra-State disparities. One such area which has
faced deficient rainfall consecutively over • Additional 60,000 hectares of forest
several years since 2004-05 is the areas in UP and two lakh hectares of
Bundelkhand region in Uttar Pradesh and forest areas in MP will be taken up for
Madhya Pradesh. Successive rain failures have integrated conservation and
further impoverished the economy of management of rainfall, soil, and
Bundelkhand. The region comprises of seven biomass in the natural sequence of
districts of Uttar Pradesh (Banda, Chitrakoot, watershed treatment from ridge to
Hamirpur, Jalaun, Jhansi, Lalitpur and Mahoba) valley.
and six districts of Madhya Pradesh • 20,000 New dug wells in each state and
(Chhatarpur, Damoh, Datia, Panna, Sagar and 30,000 farm ponds will be constructed
Tikamgarh). to store rain-water for providing
irrigation at critical stages.
13.29 Considering the hardships faced by the
people of the region due to poor agriculture • To raise and diversify farmers’ income,
growth caused by low productivity and severe extension activities on agriculture
deficiency in rainfall, an inter-Ministerial Central technology will be intensively promoted
Team led by the Chief Executive Officer, to improve the crop productivity in the
National Rainfed Area Authority (NRAA) studied region along with animal husbandry and
the issue extensively and held consultations arid horticulture
with the farmers’ representatives in • Irrigation facilities, marketing
January/February, 2008. On the basis of the infrastructure and agricultural risk
study, a Drought Mitigation Package has been management will be important areas of
approved by the Central Government at a cost focus.
of Rs. 7,266 crores. A part of the cost of the
package will be met by converging resources 13.31 The two State Governments will identify
from ongoing central programmes and their respective agencies which will draw the
schemes. To meet the gaps in availability of project proposals for implementation in their
financial resources and provide a thrust to the respective areas ensuring convergence with the
drought mitigation package an additional Plan Centrally Sponsored/ funded programmes. In
Central Assistance to the tune of Rs. 3,450 order to enhance the benefits to the region, the
crore will be provided to Madhya Pradesh and National Rainfed Area Authority (NRAA) will
Uttar Pradesh over a period of three years examine and approve these projects ensuring
commencing from 2009-10. synergy of the proposals of the State
Governments with the ongoing central
13.30 The prime mover of the package is programmes. To monitor the progress of
optimisation of water resources through implementation of the special package for
rainwater harvesting and through proper Bundelkhand, a Monitoring Group shall be
utilisation of the river systems. Intensive and constituted at the Centre with the Members,
diversified agriculture is to be promoted for Planning Commission in-charge of U.P. and
productivity gains in the crops along with M.P. as chairperson and co-chairperson; the
promoting higher sown area in the Kharif Secretaries of the concerned line departments,
season. Animal husbandry and dairy activities CEO of NRAA and the Chief Secretaries of
will be expanded as an ancillary activity to Uttar Pradesh and Madhya Pradesh as
enhance farmers’ incomes to cope with the members of the Monitoring Group; and the
drought conditions. Some of the important Principal Adviser / Senior Adviser / Adviser
components of the above scheme are given
below :
 Special Area Programmes 297

in-charge of these States in the State Plan agriculture productivity, supplementary

Division in the Planning Commission as the measures will have to be taken to develop
Member-Secretary. NRAA shall undertake visits support infrastructure to ensure optimum
to the area, and periodically submit the results. This may include development of
progress of implementation to the Monitoring Agriculture Universities, new power plants and
Group. strengthening of power distribution network,
provision of seed, fertiliser and other agriculture
13.32 While these initiatives will strengthen inputs, full utilisation of irrigation potential and
the conservation of water and increase credit to farmers.

 
14

INVESTMENT IN INFRASTRUCTURE

Introduction the sub-sectors. These figures are now

available and indicate that the actual
14.1. The Eleventh Plan emphasised the investment in infrastructure during the last two
importance of investment in infrastructure for years of the Tenth Plan were higher than the
achieving a sustainable and inclusive growth levels estimated while formulating the
of 9 to 10 per cent in GDP over the next Eleventh Plan. As a result, the total
decade. In this context, it envisaged an investment in infrastructure during the Tenth
increase in investment in physical Plan was Rs. 9,06,074 crore i.e. 3.97 per cent
infrastructure from the level of about 5 per higher than the earlier estimates of Rs.
cent of GDP witnessed during the Tenth Plan 8,71,445 crore.
to about 9 per cent of GDP by 2011-12
(terminal year of the Eleventh Plan). This was 14.4. The increase is mainly due to higher
estimated to require an investment of Rs. investment by the private sector at Rs.
20,56,150 crore (US $ 514 billion) during the 2,25,220 crore as against an anticipated
Eleventh Plan period as compared to an amount of Rs. 1,72,188 crore. This implies
estimated investment of Rs. 8,71,445 crore that the realised private sector investment in
(US$ 218 billion)1 during the Tenth Plan. infrastructure during the Tenth Plan was
Further, it was estimated that the contribution 24.86 per cent of the total investment as
of the private sector in this investment would against just below 20 per cent anticipated
rise from about 20 per cent in the Tenth Plan earlier. This increase was largely due to a
to about 30 per cent in the Eleventh Plan. higher investment realised in oil & gas
pipelines, electricity, ports, storage and
14.2. This chapter reviews the total airports during the Tenth Plan period.
investment in the major infrastructure sectors
(electricity, roads & bridges,
Projections for the Eleventh Plan
telecommunications, railways, ports, airports,
irrigation, water supply & sanitation, storage 14.5. Starting from a higher base of Rs.
and oil & gas pipelines). Developments in 2,44,495 crore in 2006-07 instead of Rs.
some of these sectors are described in 2,25,246 crore estimated earlier, the total
Chapters 15, 16, 17 and 18. investment in infrastructure during the first two
years of the Eleventh Plan has risen to Rs.
Investment in the Tenth Plan 3,03,807 crore in 2007-08 and Rs. 3,59,192
crore in 2008-09 as against the earlier
14.3. At the time of finalisation of the projected level of Rs. 2,70,273 crore and Rs.
Eleventh Plan document, information relating 3,21,579 crore respectively. The contribution
to actual investment in the terminal year of the of the private sector in the total investment in
Tenth Plan (2006-07) was not available, and infrastructure in the first two years of the
the data for private investment in the previous Eleventh Plan was 34.32 per cent and 33.73
years too was also not available for some of per cent respectively, higher than the
                                                             Eleventh Plan target of 30 per cent
1
 An exchange rate of $1= Rs.40 has been used to investment by the private sector.
ensure comparison at 2006-07 price levels.
 Investment In Infrastructure 299

14.6. Taking account of developments in oil pipelines were earlier not included. This is
the first two years, the earlier projections for expected to contribute an additional
the entire Eleventh Plan period have been investment of Rs. 1,08,190 crore during the
revised and it is now estimated that the total Eleventh Plan.
investment in infrastructure in the Eleventh
Plan would be Rs. 20,54,205 crore, which is 14.8. Table 14.2 shows that starting from a
comparable to the earlier estimates. The higher base of 5.71 per cent of GDP in the
details are shown in Table 14.1. The terminal year of the Tenth Plan (2006-07), the
assumptions underlying the projections are investment in infrastructure during the
given in Annexure 1 of this Chapter. Eleventh Plan has reached 7.18 per cent of
GDP in 2008-09. This is expected to increase
14.7. The increase in investment in the first to 8.37 per cent of GDP in the terminal year of
two years of the Eleventh Plan, above the the Eleventh Plan period, which would yield

Table 14.1
Sector-wise Investments: Tenth Plan and Eleventh Plan
(Rs. crore at 2006-07 prices)
Sector Tenth Plan Eleventh Plan
Original Actual Original Revised
Projections Investments Projections Projections
Electricity (incl. NCE) 2,91,850 3,40,237 6,66,525 6,58,630
(33.49) (37.55) (30.42) (32.06)
Roads & Bridges 1,44,892 1,27,107 3,14,152 2,78,658
(16.63) (14.03) (15.28) (13.57)

Telecommunications 1,03,365 1,01,889 2,58,439 3,45,134

(11.86) (11.25) (12.57) (16.80)

Railways (incl. MRTS) 1,19,658 1,02,091 2,61,808 2,00,802

(13.73) (11.27) (12.73) (9.78)

Irrigation (incl. Watershed) 1,11,503 1,06,743 2,53,301 2,46,234

(12.80) (11.78) (12.32) (11.99)

Water Supply & Sanitation 64,803 60,108 1,43,730 1,11,689

(7.44) (6.63) (6.99) (5.44)

Ports (incl. Inland waterways) 14,071 22,997 87,995 40,647

(1.61) (2.54) (4.28) (1.98)

Airports 6,771 6,893 30,968 36,138

(0.78) (0.76) (1.51) (1.76)

Storage 4,819 5,643 22,378 8,966

(0.55) (0.62) (1.09) (0.44)

Oil & gas pipelines 9,713 32,367 16,855 1,27,306

(1.11) (3.57) (0.82) (6.20)

Total 8,71,445 9,06,074 20,56,150 20,54,205

(100) (100) (100) (100)
Note: Figures in brackets indicate sectoral shares compared to total investment in infrastructure.
Source: Planning Commission.

levels projected earlier is due to higher levels an average of 7.55 per cent of GDP for the
of investment in oil & gas pipelines, airports Eleventh Plan as a whole. The Eleventh Plan,
and telecom. In the case of oil and gas is therefore, likely to see an increase of about
pipelines, there is a change in definition since 2.47 percentage points of GDP in the total
300 Mid-Term Appraisal of the Eleventh Five Year Plan

investment in infrastructure as compared to mainly due to lower than anticipated

the Tenth Plan. From the terminal year of the investments in the Central Sector in the first
Tenth Plan to the terminal year of the two years of the Eleventh Plan. As discussed
Eleventh Plan, this increase would be 2.66 in Chapter 15, capacity addition of 62,374
percentage points of GDP. Further, about MW is likely to be achieved during the
two-thirds of this increased investment would Eleventh Plan as compared to a target of
be on account of the private sector. 78,700 MW.

SECTOR-WISE PROJECTIONS Roads

14.11. The projected investment in road
14.9. The sector-wise projections of sector is also significantly lower at Rs.
investment during the Eleventh Plan, made in 2,78,658 crore compared with Rs. 3,14,152
accordance with the assumptions stated in crore in the original projections. The decline in
Annexure-1, are given in Table 14.3 which investment is due to a shortfall in the award of
shows investments by the Centre, the States road projects by NHAI during the first three
and the private sector separately. Some years of the Plan. It is interesting to note that
features emerging in each sector which are investment in the road sector by the States is
worth noting are discussed below. expected to increase due to higher
investments under Pradhan Mantri Gram

Table 14.2
Revised projected Investment as percentage of GDP
(Rs. crore at 2006-07 prices)
Years Tenth Plan Base year 2007-08 2008-09 2009-10 2010-11 2011-12 Total
(Actual) of XI Plan (Actual) (Actual/ (RE/BE/ (BE/ (Projected) Eleventh
(2006-07) Est.) Proj.) Projected) Plan
(Actual)
GDP at
1,78,40,877 42,83,979 47,17,187 50,03,545 53,63,800 57,92,904 63,14,265 2,71,91,700
market prices
Public
6,80,855 1,73,676 1,99,539 2,38,054 2,62,963 2,90,832 3,19,904 13,11,293
Investment
Private
2,25,220 70,819 1,04,268 1,21,138 1,39,866 1,69,227 2,08,413 7,42,912
Investment

Total
9,06,074 2,44,495 3,03,807 3,59,192 4,02,829 4,60,059 5,28,316 20,54,205
Investment

Investment as percentage of GDP

Public
Investment 3.82 4.05 4.23 4.76 4.90 5.02 5.07 4.82
Private
Investment 1.26 1.65 2.21 2.42 2.61 2.92 3.30 2.73
Total
Investment 5.08 5.71 6.44 7.18 7.51 7.94 8.37 7.55
Source: GDP data for Tenth Plan, 2007-08, and 2008-09 are from CSO. GDP growth rates for 2009-
10, 2010-11 and 2011-12 have been assumed as 7.2%, 8% and 9% respectively. 

Electricity Sadak Yojana (PMGSY).

14.10. The projected investment of Rs. 14.12. MORTH has decided to speed up
6,58,630 crore in the electricity sector is implementation of NHDP to achieve a
slightly lower than the original projection of completion rate of 20 kms of highways per
Rs. 6,66,525 crore. The figures for private day. This is likely to increase the investment
investment in the electricity sector show an during the last two years of the Eleventh Plan,
increase of 55 per cent as compared to the but the major build up in expenditure as
original projections. The contribution of the result of this acceleration will be in the Twelfth
public sector investment is likely to decline Plan.
 Investment In Infrastructure 301

Table 14.3
Revised Projections of Investment in Infrastructure during Eleventh Plan
(Rs. crore at 2006-07 prices)
Sector X Plan XI Plan 2007-08 2008-09 2009-10 2010-11 2011-12 XI Plan
(Actual) (Original (Actual) (Actual/ (RE/BE/ (BE/ (Proj.) (Revised
Projections) Est.) Proj.) Proj.) Projected)
Electricity 3,40,237 6,66,525 1,11,134 1,17,093 1,25,958 1,44,974 1,59,471 6,58,630
(incl. NCE)
Centre 1,02,665 2,55,316 29,386 36,769 39,528 49,900 54,890 2,10,474
(30.17) (38.31) (31.96)
States 1,00,738 2,25,697 27,252 30,109 31,193 34,313 37,744 1,60,611
(29.61) (33.86) (24.39)
Private 1,36,834 1,85,512 54,497 50,215 55,237 60,760 66,836 2,87,546
(40.22) (27.83) (43.66)
Roads & 1,27,107 3,14,152 42,741 48,108 54,638 63,183 69,988 2,78,658
Bridges
Centre 50,468 1,07,359 12,963 14,876 17,370 21,765 23,942 90,916
(39.71) (34.17) (32.63)
States 67,416 1,00,000 22,769 25,660 28,225 31,048 34,153 1,41,855
(53.04) (31.83) (50.91)
Private 9,223 1,06,792 7,009 7,572 9,043 10,370 11,893 45,887
(7.26) (33.99) (16.47)
Telecom 1,01,889 2,58,439 31,900 52,295 64,206 84,339 1,12,394 3,45,134
Centre 48,213 80,753 7,894 11,048 13,186 13,988 15,387 61,503
(47.32) (31.25) (17.82)
Private 53,676 1,77,686 24,007 41,248 51,019 70,351 97,007 2,83,631
(52.68) (68.75) (82.18)
Railways 1,02,091 2,61,808 31,182 39,095 42,830 40,875 46,820 2,00,802
(incl. MRTS)
Centre 98,914 2,01,453 29,594 35,863 39,548 36,675 40,343 1,82,024
(96.89) (76.95) (90.65)
States 2,508 10,000 1,128 2,554 2,048 2,253 2,479 10,462
(2.46) (3.82) (5.21)
Private 669 50,354 460 677 1,233 1,947 3,999 8,316
(0.66) (19.23) (4.14)
Irrigation 1,06,743 2,53,301 38,789 44,858 49,093 54,045 59,449 2,46,234
(incl. WS)
Centre 9,215 24,759 1,831 2,133 2,095 2,348 2,583 10,990
(8.63) (9.77) (4.46)
States 97,527 2,28,543 36,958 42,725 46,997 51,697 56,867 2,35,244
(91.37) (90.23) (95.54)
Water Supply 60,108 1,43,730 19,110 19,939 21,941 24,141 26,559 1,11,689
& Sanitation
Centre 20,261 42,003 7,201 7,764 8,541 9,395 10,334 43,235
(33.71) (29.22) (38.71)
States 38,830 96,306 11,845 12,094 13,303 14,633 16,096 67,971
(64.60) (67.00) (60.86)
Private 1,018 5,421 65 81 97 113 128 484
(1.69) (3.77) (0.43)
Ports 22,997 87,995 4,942 7,148 8,323 9,454 10,779 40,647
Centre 4,051 29,889 831 1,040 1,076 1,152 1,268 5,366
(17.62) (33.97) (13.20)
States 619 3,627 223 375 654 719 791 2,763
(2.69) (4.12) (6.80)
Private 18,327 54,479 3,888 5,733 6,593 7,582 8,720 32,517
(79.69) (61.91) (80.00)
Airports 6,893 30,968 6,912 7,522 7,092 7,178 7,434 36,138
Centre 3,811 9,288 1,888 2,287 2,386 2,463 2,709 11,732
(55.29) (29.99) (32.46)
States 712 50 424 525 91 100 110 1,251
(10.33) (0.16) (3.46)
Private 2,370 21,630 4,600 4,711 4,615 4,615 4,615 23,155
(34.38) (69.85) (64.07)
Storage 5,643 22,378 906 1,281 1,669 2,199 2,911 8,966
Centre 1,416 4,476 0 0 47 47 47 141
(25.09) (20.00) (1.57)
302 Mid-Term Appraisal of the Eleventh Five Year Plan

Sector X Plan XI Plan 2007-08 2008-09 2009-10 2010-11 2011-12 XI Plan

(Actual) (Original (Actual) (Actual/ (RE/BE/ (BE/ (Proj.) (Revised
Projections) Est.) Proj.) Proj.) Projected)
States 2,124 6,713 0 0 70 70 70 210
(37.64) (30.00) (2.34)
Private 2,104 11,189 906 1,281 1,552 2,082 2,794 8,615
(37.27) (50.00) (96.09)
Oil & Gas 32,367 16,855 16,190 21,854 27,080 29,671 32,511 1,27,306
Pipelines
Centre 31,367 10,327 7,354 12,234 16,603 18,264 20,090 74,545
(96.91) (61.27) (58.56)
Private 1,000 6,528 8,836 9,620 10,476 11,407 12,421 52,761
(3.09) (38.73) (41.44)
Total 9,06,074 20,56,150 3,03,807 3,59,192 4,02,829 4,60,059 5,28,316 20,54,205
Centre 3,70,381 7,65,622 98,941 1,24,013 1,40,381 1,55,998 1,71,593 6,90,926
(40.88) (37.24) (33.63)
States 3,10,473 6,70,937 1,00,598 1,14,041 1,22,583 1,34,834 1,48,311 6,20,367
(34.27) (32.63) (30.20)
Private 2,25,220 6,19,591 1,04,268 1,21,138 1,39,866 1,69,227 2,08,413 7,42,912
(24.86) (30.13) (36.17)
Total 9,06,074 20,56,150 3,03,807 3,59,192 4,02,829 4,60,059 5,28,316 20,54,205
Public 6,80,885 14,36,559 1,99,539 2,38,054 2,62,963 2,90,832 3,19,904 13,11,293
(75.14) (69.87) (63.83)
Private 2,25,220 6,19,591 1,04,268 1,21,138 1,39,866 1,69,227 2,08,413 7,42,912
(24.86) (30.13) (36.17)
GDP 1,78,40,877 27,044,506 47,17,187 50,03,545 53,63,800 57,92,904 63,14,265 2,71,91,700
Investment % 5.08 7.60 6.44 7.18 7.51 7.94 8.37 7.55
of GDP
Note: Figures in brackets indicate percentage share.

Telecom movement to competition and 16 entities have

been granted concessions for operating
14.13. The growth in telecom sector has container trains. However, in other areas,
been phenomenal and the investment is progress in awarding PPP projects has been
expected to be Rs. 3,45,134 crore which is 34 slow. The Ministry has identified 50 stations
per cent higher than the figure of Rs. 2,58,439 for development as world class stations
crore anticipated at the time of formulation of through the PPP route. It has also invited
the Eleventh Plan. This over-achievement is expressions of interest for the development of
due to a 60 per cent higher level of logistic parks through PPP. A 60 km elevated
investment by the private sector as compared fully air-conditioned rail system in Mumbai is
to the original projections. Competition in this also proposed to be implemented through
sector has been quite intense, resulting in PPP. These projects need to be speeded up
benefits accruing to the economy and the to improve the capacity and quality of
users through improved quality of service at services.
lower costs. In sharp contrast, investment by
the Centre in telecommunications is expected 14.16. Several PPP initiatives have been
to be 23.84 per cent lower than the original taken up for provision of metro rail systems in
projections in the Eleventh Plan. different cities. The Delhi Metro Rail
Corporation has awarded the work for supply
Railways of rolling stock and operation of the Airport
14.14. The projected investment in railways, Express Line on PPP basis. Two metro lines
including metro railways, in the Eleventh Plan in Mumbai have also been awarded on PPP
is now expected to be about Rs. 2,00,802 basis. The Hyderabad Metro project is in the
crore which is 23.3 per cent lower than the process of bidding on PPP basis while the
earlier projection of Rs. 2,61,808 crore. Both Bangalore High Speed Rail Project is also
Central sector and private investments are being structured on the PPP mode.
below the original projections. As per latest
estimates, Rs. 8,316 crore is expected by way Ports
of private investment which is only 16.5 per 14.17. Progress in the port sector has been
cent of the original projections. much below expectations. The investments
during the Eleventh Plan are now projected at
14.15. Railways have opened up container
 Investment In Infrastructure 303

a level of Rs. 40,647 crore which is less than Water Supply

half of the original projection of Rs. 87,995
14.21. The total investment in water supply
crore. Private investment in the port sector is
and sanitation in the Eleventh Plan is now
also expected to be almost 40.31 per cent
estimated at Rs. 1,11,689 crore, about 22 per
lower as compared to the projections at the
cent lower than the original projection of Rs.
beginning of the Plan. This is because very
1,43,730 crore. The Eleventh Five Year Plan
few PPP projects have been awarded by the
strategy for urban development includes a
respective Port Trusts in the first two years of
departure from the exclusive public sector
the Eleventh Plan. The Ministry of Shipping
monopoly over urban infrastructure and
has revised the original target of 545 MMT of
opening up the possibilities of private
additional capacity for the major ports
investment in this area. However, private
downwards and now proposes to develop 48
sector investment in water supply and
projects with a capacity of 393 MMT costing
sanitation is likely to be comparatively small
Rs. 29,905 crore over the Eleventh Plan
initially and may not exceed 2 per cent of the
period.
total investment in this sector.
14.18. Compared to the slow progress in
Irrigation
capacity addition in major ports, the private
sector ports in the state sector have done 14.22. Investment in irrigation and watershed
relatively well. Out of the total private management is a critical part of rural
investment of Rs. 32,517 crore projected for infrastructure. It remains a public sector
the Eleventh Plan, the share of private activity only because the sector is nowhere
investment in the state sector is Rs. 26,370 near being commercially viable since water
crore. charges account for only about 20 percent of
the operating costs. The total investment in
Airports this sector is expected to be about Rs.
2,46,234 crore in the Eleventh Plan which is
14.19. The investment in Eleventh Plan is
marginally lower than the original projections
now projected at Rs. 36,138 crore, about 17
but will be more than double the investment of
per cent higher than the original estimate of
Rs. 1,06,743 crore realised in the Tenth Plan.
Rs. 30,968 crore. Both public and private
investments in airports are likely to increase
compared to the investment projected at the RURAL INFRASTRUCTURE
beginning of the Eleventh Plan. Private 14.23. The sectoral projections presented in
investment is expected to contribute Rs. Table 14.3 cover investments in both urban
23,155 crore which is 64 per cent of the total and rural areas. The rural investment
investment in airport infrastructure. The component is important in keeping with the
investment in state sector airports has taken a thrust of the Eleventh Plan towards a broad
dip from 2009-10 onwards because of the based inclusive growth of the economy with
completion of the Hyderabad and Bangalore emphasis on bridging the rural-urban divide.
projects.
14.24. Bharat Nirman, launched in 2005 for
up-gradation of the rural infrastructure
Oil and Gas Pipelines comprehensively across its sub-sectors, aims
to provide electricity to 1,25,000 villages and
14.20. The investment in oil and gas
to 23 million households; connect the
pipelines in the Eleventh Plan is expected to
remaining 66,802 habitations with all-weather
increase to Rs. 1,27,306 crore as against the
roads and construct 1,46,185 km of new rural
original figure of Rs. 16,855 crore. The much
roads; provide drinking water to 55,067
larger figure is primarily because the data now
uncovered habitations; provide irrigation to an
includes investment in oil pipelines whereas
additional 10 million hectares; and connect
the earlier data only included gas pipelines.
the remaining 66,822 villages with
The investment in oil pipelines alone during
telephones. It is estimated that out of the total
the Eleventh Plan is projected at Rs. 1,08,190
projected investment of Rs. 13,11,293 crore
crore. This category includes large
to be incurred by the Centre and the States
investments by the Centre as well.
on all infrastructure sectors during the
Eleventh Plan, about Rs. 3,93,388 crore (or
30 per cent) would be spent exclusively
304 Mid-Term Appraisal of the Eleventh Five Year Plan

Table 14.4
Projected Investment in Infrastructure during the Twelfth Five Year Plan
(Rs. crore at 2006-07 prices)
Base Year Total
Year 2012-13 2013-14 2014-15 2015-16 2016-17
(2011-12) 12th Plan
GDP at market
prices (Rs. 63,14,265 68,82,549 75,01,978 81,77,156 89,13,100 97,15,280 4,11,90,064
crore)

Rate of growth 9.00 9.00 9.00 9.00 9.00 9.00 9.00

of GDP (%)
Infrastructure
investment as % 8.37 9.00 9.50 9.90 10.30 10.70 9.95
of GDP
Infrastructure
investment (Rs. 5,28,316 6,19,429 7,12,688 8,09,538 9,18,049 10,39,535 40,99,240
crore)
Infrastructure
investment (US 132.08 154.86 178.17 202.38 229.51 259.88 1,024.81
$ billion) @
Rs.40/$

towards improvement of the rural cent of GDP in the terminal year of the
infrastructure. Twelfth Plan, as indicated in Table 14.4.
These projections imply that investment in the
Projected Investment in the Twelfth Plan
infrastructure sector during the Twelfth Plan
would be of the order of Rs. 40,99,240 crore
14.25. The projections presented in Table or US $ 1,025 billion. At least 50 per cent of
14.4 suggest that the economy will enter the this investment would have to come from the
Twelfth Plan in a more robust condition as far private sector while public sector investment
as infrastructure is concerned. Investment in would have to increase from Rs. 13,11,293
infrastructure will be around 8.37 per cent of crore in the Eleventh Plan to about Rs.
GDP in the base year of the Twelfth Plan. 20,49,620 crore in the Twelfth Plan, at 2006-
However, the infrastructure requirements for a 07 prices. This would imply an annual
9 per cent growth in GDP will require a further increase of about 9.34 per cent in real terms.
step up in the pace of infrastructure
development during the Twelfth Plan. If GDP POLICY INITIATIVES TO PROMOTE
in the Twelfth Plan period grows at an PRIVATE PARTICIPATION
average rate of 9 per cent per annum, it
14.26. A number of initiatives were taken in
should be possible to increase the share of the course of the Eleventh Plan to accelerate
investment in infrastructure to about 10.70 per

Box 14.1
Structuring PPP Projects

PPP projects are based on long-term contracts and may involve delegation of governmental
authority such as for toll collection, besides enabling private control over monopolistic
services. The structuring of PPP contracts requires due diligence of a high order because of
the complex nature of the partnerships and the need to protect the interests of the users as
well as the exchequer. Inadequacies in the contracts/concessions can severely compromise
the public exchequer and user interests besides leading to rent seeking and exposing PPP
projects to public criticism. Badly structured contracts and inadequate regulation can often
lead to windfall gains and rent seeking by the private investors. It is, therefore, important to
ensure that PPPs are carefully structured for safeguarding user and government interests with
a view to ensuring efficient services at competitive costs.
 Investment In Infrastructure 305

the pace of investment in infrastructure. Empowered Committee/ Institution (EC/EI)

14.30. An institutional framework comprising
Committee on Infrastructure (COI) an inter-ministerial Empowered Committee
has been established for the purpose of
14.27. The Committee on Infrastructure
appraising and approving projects for availing
(COI) was constituted on 31, August 2004
the Viability Gap Funding (VGF) grant of up to
under the chairmanship of the Prime Minister.
20 per cent of the cost of infrastructure
Its members included the Finance Minister,
projects undertaken through PPP. Until
the Deputy Chairman, Planning Commission
December 2009, it had approved 55 projects
and the Ministers-in-charge of infrastructure
in the State sector involving a total capital
ministries. The objective of COI was to initiate
investment of Rs. 39,736 crore.
policies that would ensure time-bound
creation of world class infrastructure, develop
structures that maximise the role of PPPs, Viability Gap Funding (VGF)
and monitor the progress of key infrastructure 14.31. Recognising that the externalities
projects to ensure that established targets are engendered by infrastructure projects cannot
realised. always be captured by project sponsors, a
Viability Gap Funding (VGF) Scheme was
Cabinet Committee on Infrastructure (CCI) notified in 2006 to enhance the financial
viability of competitively bid infrastructure
14.28. In July 2009, a Cabinet Committee on projects. Under the scheme, grant assistance
Infrastructure chaired by the Prime Minister of upto 20 per cent of capital cost is provided
was constituted to give further impetus to by the Central Government to PPP projects
initiatives for development of infrastructure. undertaken by any Central Ministry, State
CCI approves and reviews policies and Government, statutory entity or local body. An
projects across infrastructure sectors. It additional grant of up to 20 per cent of project
considers and decides financial, institutional costs can be provided by the sponsoring
and legal measures required to enhance Ministry, State Government or project
investment in infrastructure sectors. With the authority. Up to December 2009, 199 projects
creation of the CCI the earlier COI has had been approved by the EC/EI with a
ceased to exist. capital investment of Rs. 1,70,651 crore.

Public–Private Partnership Appraisal India Infrastructure Finance Company Ltd

Committee (PPPAC) (IIFCL)
14.29. With a view to streamlining and 14.32. IIFCL was established by the Central
simplifying the appraisal and approval Government for providing long-term loans for
process for PPP projects, a Public Private financing infrastructure projects that typically
Partnership Appraisal Committee (PPPAC) involve long gestation periods. It provides
had been constituted under the chairmanship financial assistance of up to 20 per cent of the
of Secretary, Department of Economic Affairs project costs, both through direct lending to
with Secretary, Planning Commission as one project companies and by refinancing banks
of the members. PPP proposals are and financial institutions. It had raised Rs.
appraised by the Planning Commission and 18,126 crore and approved 125 projects
approved by the PPPAC. The PPPAC involving total investment of Rs. 1,72,497
conducts a thorough scrutiny and due crore by 31 December 2009. Out of these 125
diligence in the formulation, appraisal and projects, financial closure has been achieved
approval of PPP projects. It had approved 144 in 121 projects involving investment of Rs.
projects with estimated project cost of Rs. 1,58,003 crore.
1,30,915 crore by 31 December 2009.
306 Mid-Term Appraisal of the Eleventh Five Year Plan

Box 14.2
Model Concession Agreements for PPP Projects
ƒ National Highways
ƒ State Highways
ƒ Operation & Maintenance of Highways
ƒ National Highways (Six Laning)
ƒ Urban Rail Transit Systems
ƒ Non-Metro Airports
ƒ Greenfield Airports
ƒ Port Terminals
ƒ Operation of Container Trains
ƒ Re-development of Railway Stations
ƒ Procurement-cum-Maintenance Agreement for Locomotives
ƒ Transmission of Electricity
Model Bidding Documents for PPP Projects
ƒ Model Request for Qualification (RFQ) for PPP Projects
ƒ Model Request for Proposal (RFP) for PPP Projects
ƒ Model Request for Proposal (RFP) for Selection of Technical Consultants
ƒ Model Request for Proposal (RFP) for Selection of Legal Advisers
ƒ Model Request for Proposal (RFP) for Selection of Financial Consultants & Transaction Advisers
ƒ Model Request for Proposal (RFP) for Selection of Transmission Consultants
ƒ Model Request for Proposal (RFP) for Selection of Financial Consultants and Transaction Advisers
Guidelines and Manuals
ƒ Guidelines for Financial Support to PPPs in Infrastructure (VGF Scheme)
ƒ Guidelines on Formulation, Appraisal and Approval of PPP Projects (PPPAC)
ƒ Guidelines for Establishing Joint Ventures in Infrastructure Sectors
ƒ Guidelines for Monitoring of PPP Projects
ƒ Scheme for Financing Infrastructure Projects through the India Infrastructure Finance Company Ltd.
ƒ Manual of Specifications & Standards for Two-laning of Highways
ƒ Manual of Specifications & Standards for Four-laning of Highways

promote and facilitate development of

Model Concession Agreements & other infrastructure. In several cases e.g., roads
Documents and ports, the Planning Commission has
14.33. Recognising the need for a published model concession agreements that
standardised framework for PPPs, the COI could be used by state governments for
encouraged the creation of standard developing projects under PPP mode. The
documents for bidding and also for award of Commission has been involved in
concessions. Creation of a standardised consultations with state governments on PPP
framework ensures transparency in the initiatives and renders advice as and when
allocation of risk, clarity in the obligation of the desired.
concessionaire and minimisation of
possibilities of disputes arising from the 14.35. A list of the Model Concession
agreement. It enables robust competitive Agreements, Model Bidding Documents and
bidding for individual projects with a Guidelines and Manuals published by the
reasonable commonality in approach across Planning Commission is given in Box 14.2.
projects, which is an important aspect of good
governance. 14.36. The government has identified
several areas for reform of policy and
14.34. To underpin this approach, a large processes. Based on inter-ministerial
number of standardised documents have deliberations, a number of Reports have been
been developed based on extensive inter- prepared and their recommendations
ministerial consultations. These have been adopted. These are listed in Box 14.3.
published by the Planning Commission to
 Investment In Infrastructure 307

Box 14.3
Reports

ƒ Financing of the National Highways Development Programme

ƒ Financing Plan for Airports
ƒ Financing Plan for Ports
ƒ Restructuring of NHAI
ƒ Monitoring of PPP Projects
ƒ Projections of the Eleventh Five Year Plan: Investment in Infrastructure
ƒ Delhi-Mumbai and Delhi-Howrah Freight Corridors
ƒ Road Rail Connectivity of Major Ports
ƒ Customs Procedures of Container Freight Stations and Ports
ƒ Simplification of Customs Procedures in Air Cargo and Airports
ƒ Measures for Operationalising Open Access in the Power Sector
ƒ Tariff Setting for PPP Projects in Major Ports
ƒ Toll Policy for National Highways
ƒ Road Safety and Traffic Management
ƒ Reducing Dwell Time of Cargo at Ports
ƒ Norms & Standards for Capacity of Airport Terminals
ƒ Approach to Regulation of Infrastructure
ƒ Private Participation in Infrastructure
ƒ Compendium of PPP Projects Infrastructure
ƒ Selection of Consultants: Best Practices 
ƒ Frequently Asked Questions (FAQs) on Model RFQ Document 

14.37. The Planning Commission has improving infrastructure. The participation of

initiated an exercise to revise the financing states has been improving steadily over the
plans in various infrastructures sectors after years.
taking into account the progress made so far
and the likely investment during the remaining STATUS OF PPP PROJECTS
years of the Eleventh Plan and the entire
Twelfth Plan period. 14.39. A large number of PPP projects have
been taken up in various infrastructure
PARTICIPATION OF STATE sectors including roads, ports, airports and
GOVERNMENTS urban infrastructure. A summary of PPP
projects in the Central and State sectors as
14.38. In a federal country like India, on December 2009 is given in Table 14.5
participation and support of the State below which shows that a total of 937 projects
Governments is essential for development of involving an investment of Rs. 7,16,439 crore
world class infrastructure. The State are at various stages of award and
Governments’ support in maintenance of law implementation. Out of these, 241 projects
and order, land acquisition, rehabilitation and with an investment of Rs. 66,512 crore have
settlement of displaced persons, shifting of been completed and 292 projects with an
utilities and obtaining environmental investment of Rs. 2,40,040 crore are under
clearances is necessary for the projects implementation. Another 404 projects
undertaken by the Central Government or the involving an investment of Rs. 3,76,429 crore
private sector. Many State Governments have are in the pipeline.
also initiated several PPP projects for
308 Mid-Term Appraisal of the Eleventh Five Year Plan

(A) PPP Projects in the Central Sector of Rs. 41,911 crore are currently under
implementation in the roads sector while in
14.40. In the Central sector, 65 PPP projects the ports sector, 13 projects involving an
involving an investment of Rs. 25,343 crore investment of Rs. 10,509 crore are currently
have been completed up to December 2009. under implementation. The airports at Delhi
As many as 83 PPP projects with an and Mumbai are being upgraded with an
investment of Rs. 75,914 crore are currently investment of Rs. 18,777 crore. In railways,
under implementation and another 160 PPP private entities are investing Rs. 2,387 crore
projects with an estimated investment of Rs. in rolling stock for container trains and two
1,84,807 crore are in the pipeline. loco factories are also being set up with an
investment of Rs. 1,500 crore. Port
Table 14.5
Status of PPP Projects 
S. Sector Completed Projects under Projects in Pipeline Total
No. Projects Implementation
No. of Project No. of Project No. of Project No. of Project
Projects Cost Projects Cost Projects Cost Projects Cost
(Rs. (Rs. crore) (Rs. (Rs.
crore) crore) crore)
(A) Central Sector
1 National 39 13,698 64 41,911 81 76,341 184 1,31,950
Highways
2 Major Ports 23 5,762 13 10,509 29 18,466 65 34,737
3 Airports 3 5,883 2 18,777 5 24,660
4 Railways 4 4,717 50 90,000 54 94,291
Total (A) 65 25,343 83 75,914 160 1,84,807 308 286,064

(B) State Sector

1 Roads 96 6,382 69 60,864 86 39,481 251 106,727
2 Ports 20 19,704 37 51,549 18 17,436 75 88,689
3 Airports 1 500 7 4,120 8 4,620
4 Railways 1 500 3 312 4 812
5 Power 7 8,971 15 29,448 34 62,032 56 1,02,847
6 Urban 51 5,992 69 18,690 65 45,708 185 100,451
Infrastructure
7 Other 2 120 17 3,575 31 22,534 50 26,229
Sectors
Total (B) 176 41,169 209 1,64,126 244 1,91,622 629 4,30,375
(C) Grand Total 241 66,512 292 2,40,040 404 3,76,429 937 7,16,439
(A+B)

connectivity and other projects of Rs. 830

Completed Projects
crore are also under implementation. In sum,
14.41. Up to December 2009, 39 PPP projects with an estimated investment of Rs.
projects of national highways with an 4,717 crore are under implementation in the
investment of Rs. 13,698 crore and 23 PPP railways sector.
projects in the ports sector with an investment
of Rs. 5,762 crore have been completed. In
Projects in the pipeline
the civil aviation sector, airports involving a
total investment of Rs. 5,883 crore have been 14.43. It is expected that 81 national
completed through PPP mode at Cochin, highways projects envisaging an investment
Bangalore and Hyderabad airports. of Rs. 76,341 crore would be awarded within
a year. Twenty nine port projects with an
estimated investment of Rs. 18,466 crore are
Projects under implementation
also in the pipeline. The Ministry of Railways
14.42. Sixty Four projects with an investment plans to redevelop 50 railway stations in the
 Investment In Infrastructure 309

PPP mode at an estimated cost of Rs. 90,000 crisis, the performance of the infrastructure
crore. sector has shown the resilience of the
economy and its capacity to shield itself from
such external influences. Although the
(B) Status of PPP Projects in the State
projections for the Eleventh Plan have been
Sector
downsized for some sectors keeping in mind
14.44. The State Governments are the targets achieved in the first two years of
implementing several infrastructure projects the Plan, however, it is expected that with the
through the PPP mode in different sectors. revival of the economy and the upbeat
Information received from States and Union investment sentiment prevailing, the actual
Territories includes 176 completed PPP performance may turn out to be better than
projects in different sectors with a total the revised projections of the Eleventh Plan
investment of Rs. 41,169 crore while 209 PPP contained in this Chapter.
projects are currently under implementation
with an estimated investment of Rs. 1,64,126 Box 14.4
Some Illustrative PPP Projects
crore. In addition, 244 PPP projects are in the
pipeline involving an estimated investment of 1. Bangalore International Airport, Karnataka
Rs. 1,91,622 crore.
2. Rajiv Gandhi International Airport, Hyderabad
Completed Projects
3. Indira Gandhi International Airport, New Delhi
14.45. Ninety Six road projects with an 4.
investment of Rs. 6,382 crore and 20 non- Chhatrapati Shivaji International Airport, Mumbai
major ports with an investment of Rs. 19,704 5. 6 Laning of Jaipur – Kishangarh National
Highway
crore have been completed through PPP in
the state sector. 51 urban infrastructure 6. 8/6 Laning of Delhi – Gurgaon Expressway
projects have been executed through the PPP
7. Hyderabad - Vijaywada National Highway
mode involving an investment of Rs. 5,992
crore. The largest number of projects has 8. Offshore Container Berths, Mumbai Harbour
been completed in the roads sector followed Deep Draft Iron Ore Berth, Paradip Port
9.
by urban infrastructure projects.
10. Mega Container Terminal, Chennai
Projects under implementation
11. Multi-purpose Cargo Berths, Kandla
14.46. In the roads sector, 69 projects with 12. Hyderabad Metro Rail Project, Hyderabad
an investment of Rs. 60,864 crore and in non-
major ports, 37 projects with an investment of 13. Colaba Bandra Metro Corridor Line-III, Mumbai
Rs. 51,549 crore are under implementation.
14. Jhajjar Power Transmission Project, Haryana
Sixty nine urban infrastructure projects with
an investment of Rs. 18,690 crore are also 15. Mundra Port, Gujarat
currently under implementation.
16. Pipavav Port, Gujarat
Projects in pipeline 17. Gangavaram Port, Andhra Pradesh
14.47. Eigthy Six PPP projects in the road 18. Krishnapuram Port, Andhra Pradesh
sector envisaging an investment of Rs.
39,481 crore are in the pipeline. Another 18 19. Vadodara-Bharuch State Highway, Gujarat
PPP projects with an estimated investment of 20. Indore-Edelabad State Highway, Madhya
Rs. 17,436 crore in non-major ports and 65 Pradesh
PPP projects in urban infrastructure sector 21. Yedshi – Latur –Nanded State Highway,
envisaging an investment of Rs. 45,708 crore Maharashtra
are also in the pipeline. 22. Jaipur-Bhilwara State Highway, Rajasthan
14.48. An illustrative list of some of the PPP
23. Delhi Western Peripheral Expressway (KMP
projects in the Central and State sector is Expressway), Haryana
given in Box 14.4.
24. Bridge across River Godavari between Yanam -
Edurulanka, Andhra Pradesh
Way Forward
14.49 Against the backdrop of the financial
310 Mid-Term Appraisal of the Eleventh Five Year Plan

Annexure -1

Assumptions underlying the revised investment forecast

1. In making the projections for the been assumed over the 2009-10 data as
Central sector, RE figures for the year 2009- some of the PPP projects have been
10 and BE figures for 2010-11 have been completed and no new projects have been
adopted and thereafter, a growth rate of 10 awarded.
per cent has been assumed for the terminal
4. In the case of oil & gas pipelines, the
year of the Plan. For the State sector, the
data relating to private investment has been
actual expenditure for 2008-09 has been
provided by the Ministry of Petroleum and
taken into account and an annual growth
Natural Gas for 2008-09 and 2009-10 only.
rate of 10 per cent over the 2009-10 BE data
Investment in the year 2009-10 is higher by
has been assumed for making projections
about 15 per cent as compared to the
for the subsequent years of the Eleventh
investment in 2008-09. Estimated
Plan.
investment in the remaining two years of the
2. For making projections for the private Plan has been assumed by projecting an
sector, actual GCF data has been taken annual increase of 15 per cent. Similarly, the
from CSO with regard to electricity, telecom investment in 2007-08 has been estimated
and storage sectors for the period from by reducing the investment by a
2002-03 to 2008-09. While projections with corresponding rate. Private sector
regard to the telecom and storage sectors projections for water supply and sanitation
for the years 2009-10 onwards are based on during the Eleventh Plan are based on the
log linear method using the time series data total estimated investment indicated by the
of past five years, projections in electricity Ministry of Urban Development, which has
sector are based on an anticipated growth been suitably phased out over the Plan
rate of 10 per cent per annum over the 2008- period.
09 data to reflect the current pace of
5. In case of storage, due to negative
accelerated capacity addition.
gross capital formation of public sector in the
3. For making projections of private years 2007-08 and 2008-09, the data has
investment in roads, railways, ports and been taken as zero and projections for the
airports, the time series data from 2002-03 remaining three years have been retained at
to 2008-09 has been provided by the the level of 2006-07. Public sector GCF for
respective ministries. Projections in roads Centre and States has been assumed in the
and ports for the years 2009-10 onwards are ratio of 40:60.
based on a growth rate of 15 per cent per
6. The investment data for various
annum over 2008-09 in view of the
infrastructure sectors will be updated on a
accelerated programmes in these sectors.
regular basis in consultation with the CSO
Projections in railways from 2009-10
and the respective infrastructure Ministries.
onwards are based on the log linear method
using a time series of the past five years. In
airports, no growth in private investment has
.
 15
Energy
15.2. These developments highlight the
Overview urgency to maximise domestic production in the
Twelfth Plan period and manage demand more
15.1. The Eleventh Plan envisaged an effectively to increase energy security. It calls
increase in primary energy availability (i.e. from for concerted action on several fronts. The
coal, lignite, crude oil, natural gas, hydro power, priorities for action in each of the energy
nuclear power, wind power and non-commercial producing areas are indicated in this chapter.
energy) at 6.4 percent per year taking the total
availability from 550 Mtoe in the terminal year of 15.3. An Integrated Energy Policy was
the Tenth Plan to 715 Mtoe in the terminal year approved by the Cabinet in 2009, lays down an
of the Eleventh Plan. Present prospects make it agenda for policy action in the major energy
evident that the actual growth in primary energy sectors. Implementation of this agenda would
production will be lower than projected in most help to push the energy sector towards greater
sub-sectors (see Table 15.1). Demand for economic rationality and financial viability while
energy will also be lower because of the impact also promoting the objective of energy
of the global crisis on economic growth. efficiency and energy security. Sector-wise
However, it is noteworthy that the net effect will programmes and their physical & financial
be an increase in the projected import performance emerging from the Mid Term
dependence on both coal and crude oil. Review of the Plan are given in the following
Table 15.1 section.
Production, Consumption and Import
Requirement of Primary Coal & Lignite Sector
Commercial Energy in 2011-12 Introduction
Energy Resources As per As per
Eleventh MTA 15.4. Coal is the mainstay of India’s energy
Plan sector and accounts for over 50 per cent of
Coal
Production (MMT) 680.00 629.91
primary commercial energy supply. Around 74
Demand/Offtake (MMT) 731.00 713.24 per cent of coal produced in India is consumed
Import (MMT) 51.00 83.33 in the power generation. Compared to other
Lignite 55.59 sources of energy that are available in the
Production (MMT)
Crude Oil
country, known coal reserves are expected to
Production (MMT) ## 206.73 186.86 last for over 70 years at the present levels of
Demand/Offtake (MMT) 141.79 150.61 production. The growing gap between the
Import (MMT) 102.28 103.41 demand and the domestic supply of coal has
Natural Gas/LNG
made it imperative to augment domestic
Production (MMSCMD) ## 176 170
Demand/Offtake (MMSCMD) 280.00 280.00 production from public sector as well as private
Import of LNG (MMSCMD) 83.12 52.50 sector and expedite the reform process for
Electricity realising efficiency gains through increased
Hydro Capacity (MW) 15,627 8,237
competition in the sector during the Eleventh
Nuclear Capacity (MW) 3,380 3,380
Wind Capacity (MW) 10,500 9,000 Plan.
## Note:- Production figures in case of crude oil and natural
gas are for five years’ period. 15.5. The Eleventh Plan envisaged
augmenting domestic production with a long
term perspective keeping in view the sharp
312 Mid-Term Appraisal of the Eleventh Five Year Plan

increase in demand in the power sector and the • De-blocking of coal blocks not immediately
long gestation periods of the coal projects. A to be exploited by Coal India Limited (CIL)
new feature of the Eleventh Plan was the for offering them on bidding basis for both
strategy of augmenting coal production from public sector and private sector
captive sources including captive coal mines in companies.
the private sector. An important area of the Plan
concerns revival of loss making companies, • Amending the Coal Bearing Areas
restructuring of the coal sector by providing (Acquisition & Development) Act, 1957 to
autonomy, setting up a regulatory authority for allow private sector rights for coal
ensuring fair competition and facilitating private exploration on par with CIL.
sector participation in commercial coal mining • Rationalising freight rate for coal transport
by means of necessary legislative and import duty on coal for improving
amendments. competitiveness of the sector.

15.6. Some of the important key thrust areas • Intensification of exploration and up-
for development of coal sector identified in the gradation of coal reserves to the proved
Eleventh Plan are as follows: and recoverable category.

• Expedite passing of “The Coal Mines Physical Performance

(Nationalisation) Amendment Bill 2000” to
amend provisions of Coal Mines 15.7. The overview of actual physical
(Nationalisation) Act, 1973 to permit private performance of coal sector in the first two years
sector in non-captive mining to augment 2007-08 and 2008-09 and the anticipated
domestic coal production to meet the rising achievement for the third year 2009-10 of the
demand for coal. Eleventh Plan of is given below in Table 15.2.

• Setting up of a regulatory authority for Coal Production

ensuring fair competition and a level
playing field in each segment of the coal 15.8. Coal production was targeted to grow at
production and supply chain, including 9.56 per cent per annum during the Eleventh
allocation of coal blocks for exploration and Plan against an annual growth of 5.6 per cent
mining. per annum in the Tenth Plan. The estimated
growth in the first three years of the Plan was
• Change grading and pricing of non-coking
7.31 per cent, reaching 7.89 per cent in the total
coal from the existing Useful Heat Value
Eleventh Plan period. Although the growth in
(UHV) with wide calorific bands to a pricing
production growth will be lower than the
formula with narrow calorific bands as per
Eleventh Plan target of 9.56 per cent, it will be
international practice of pricing coal based
higher than that in the Tenth Plan.
on Gross Calorific Value (GCV). This is
expected to encourage efficient use and
15.9. Coal production was envisaged to reach
allocation as well as promote use of
680.0 mt. in the terminal year of Eleventh Plan
washed coal.
implying an incremental production of 249.17
• Promoting e-marketing of coal – up to 20 mt over the five - year period. CIL was expected
per cent of the domestic production is to be to add 159.59 mt, Singareni Coal Company
made available through e-marketing open Limited (SCCL) 3.09 mt and captive blocks
to traders and actual users. 86.49 mt. The projected coal production in the
terminal year of the Plan was based on
• The resources for investment for mining realising an estimated 169.22 mt of additional
operations as well as for new clean coal output from CIL from new projects to be taken
technologies, Coal Bed Methane, up during the Plan. Similarly, SCCL was also
Underground Coal Gasification etc. needs envisaged to take up 38 new projects to build
to be mobilised, for which the pricing policy the ultimate capacity for contributing 8.33 mt in
has to be made pragmatic. 2011-12. It is now estimated that 17 major
 Energy 313

Table 15.2
Physical Performance of Coal and Lignite
Sl Parameter 2006- 11th 2007- 2008- 2009- MTA 11th Plan per cent
No 07 Plan 08 09 10 Revised CAGR
Target Actual Actual Provi. Target Original MTA
2011- 2011-12 Revised
12
1 2 3 4 5 6 7 8
Physical
Performance
1 Coal Demand 463.87 731.10 504.22 545.72 597.98 713.24 9.52 8.98
(mt)
2 Coal 430.83 680.00 457.08 492.94 532.33 629.91 9.56 7.89
Production(mt)
3 Coal imports 43.08 51.00 49.80 56.08 65.65 83.33 3.43 13.47
(Total) 17.88 40.85 22.03 21.08 27.26 42.48
Coking Coal 25.20 10.15 27.77 35.00 38.39 40.85
Thermal Coal
4 Net Gap in 51.00 47.14 52.78 65.65 83.33
Demand –
Supply
5 NLC* 21.01 27.04 21.59 21.31 21.75 26.02 5.17 4.37
LigniteProd(mt) 15,787 26,077 17,457 15,768 16,600 21,129 10.56 6.00
Gross
PowerGen(MU)
Note: * NLC's plan includes lignite production and power generation.
# Original growth projection in coal demand and production for the 11th Plan were based on RE figures 2005-
06

projects of CIL, which were envisaged to imports. Out of 208 captive blocks allotted, only
contribute 100.65 mt will now contribute only 26 such blocks have started coal production. It
46.72 mt. An important reason for the shortfall is stated that some of the allottees are yet to
is the delay in getting necessary Environment start any activities on the site. Here too
and Forest clearances. Coal production in the Environment and forest clearance is an
terminal year of the Plan is, therefore, expected important constraint. Government also needs to
to reach to 629.91 mt (CIL 486.50 mt, SCCL review the situation, cancel allotment of such
47.00 mt, Others 96.41 mt) against 680.0 mt blocks to non-serious players and re-allot them
originally envisaged leading to a shortfall of 9.3 to consumers that are more credible.
per cent in production and demand–supply gap
of 83.33 mt. The Company-wise details of coal Coking Coal
production are given in Annexure-15.1.
15.11. The requirement for coking coal has
Captive Coal Blocks long exceeded availability from domestic
sources. Besides, the steel sector is largely
15.10. Government has allocated 208 coal dependent on coking coal imports both with
blocks to captive consumers with estimated regard to quality and quantity considerations.
geological reserves of around 49 billion tonnes Coking coal imports amounted to 21.08 mt
and production potential of 657 million tonnes. during 2008-09. This is expected to increase to
The Eleventh Plan envisaged 104 mt of coal around 42 mt during 2011-12. The situation is
production from 93 captive blocks by the year unlikely to change in the near future mainly
2011-12. However, the projected production because Bharat Coking Coal Limited (BCCL) is
from such captive mines is now expected to be unable to augment production of the required
around 81 mt leaving a gap of around 23 mt quality of coking coal from their mines and is
which will further exert pressure on coal also not able to supply the desired feed to
314 Mid-Term Appraisal of the Eleventh Five Year Plan

coking coal washeries. As a result, beyond this depth. Coal production from
performance of washeries is also very poor, underground mines has either stagnated or
with low percentage of yield. There is scope for declined despite significant investments aimed
improvement in coking coal supplies from at improving the technology and the working
BCCL sources provided land acquisition issues, conditions in these mines. The reasons include:
particularly in the State of Jharkhand, are inheritance of large numbers of small
addressed on priority basis. BCCL also needs underground mines at the time of
to augment domestic production by opening Nationalisation with manual workings and
new coking coalmines. where mechanisation is either not feasible or
the reserves are not such as to permit it; failure
Exploration of Longwall technology partly due to inadequate
exploration and geotechnical investigations of
15.12. Exploration activities have to be taken coal deposits; and lack of assured timely supply
up on priority basis to enhance the level of of critical spares for foreign equipment. Using
recoverable reserves. Out of 17300 sq. km of other technologies to extract these deeper
potential coal bearing area, 11865 sq. km area reserves sharply reduces the reserve recovery
has been covered by regional/promotional ratio. The proposal to increase the borehole
exploration till the end of Tenth Plan. Of the density is to enhance the level of proved coal
remaining 5438 sq. km of area, 2791 sq. km reserves so that underground mining share can
area is planned to be covered under be progressively enhanced. A strategy also
regional/promotional exploration during the needs to be worked out to encourage the
Eleventh Plan. Of this, 866 sq.km would be domestic manufacturing of underground mining
covered by the geological survey under their machinery.
regular regional exploration programmes and
1925 sq. km would be covered under Ministry of Washeries
Coal’s regional/promotional programme.
Besides, the drilling capacity of Central Mine 15.15. Present washing capacity can handle
Planning & Design Institute Limited (CMPDIL) is beneficiation of 135.18 mt of throughput, of
envisaged to be increased to 4 lakh metres which 107.80 mty is for non-coking coal and
from the existing 2 lakh metres by providing 27.38 mty for coking coal. There is an urgent
new drills and replacing the old drills to need to create about 190 mty of additional coal
enhance the detailed drilling efforts washing capacity for which huge infrastructure
departmentally. Some blocks are also being facilities will be required including land, railway
explored in detail by CMPDIL through sidings, roads, power and water and other
outsourcing under their supervision, with a view related infrastructure. CIL envisages taking up
to cover the reserves under-indicated and bring 20 nos. of new washeries (7 coking coal & 13
inferred categories into proved category. non-coking coal) for an ultimate capacity of
Ministry of Coal has also issued guidelines to 111.10 mty (coking 21.1 mty; non-coking 90
conduct detailed exploration by block holders mty) for implementation by the Twelfth Plan. A
on their own. suitable policy needs to be initiated to make
better use of rejects generated from washeries
15.13. The existing guidelines of the Ministry of both from energy and environment points of
Environment & Forests permit only 1-1.5 view.
boreholes/sq. km in forest areas without the
need for seeking forestry clearance by the Environmental Clearances and R&R Issues
drilling agencies. However, this needs to be
increased to at least 15-20 boreholes/sq. km 15.16. Environmental and forest clearances
(EC & FC) are critical statutory permissions to
Underground Mining be obtained before implementation of the coal
projects. Against the scheduled time frame of
15.14. Current economic mining practices are 210 days for EC and 150 days for FC, it takes
generally limited to a depth of 300 m but about nearly 2-6 years normally to obtain such
40 per cent of the reserves of the country are clearance, any further delays leading to shortfall
 Energy 315

in production. Other reasons for the shortfall in projected at 51.00 mt (40.85 mt of coking coal
production in the Eleventh Plan relate to land and 10.15 mt of thermal coal). How ever, as
acquisition and related R & R issues as well as a result of inadequate domestic supply,
law and order problems. State Governments it is now estimated that coal imports in 2011-
need to play a proactive role in resolving these 12 will be 83.33 mt (42.48 mt of coking coal
issues. Planning Commission is examining and 4 0 . 8 5 mt of thermal coal) accounting for
these issues in depth and will suggest a set of 11.7 per cent of the estimated demand as
policy initiatives and other measures to address against 7 per cent envisaged earlier. The
them. degree of import dependence is only going to
increase in future and the gap at the end of the
Coal Demand Twelfth Plan is likely to be much larger. Urgent
steps need to be taken at an early stage to
15.17. During the Eleventh Plan, coal demand enhance the coal handling facilities at the ports
was envisaged to grow at 9.52 per cent per with dedicated berths for coal handling; improve
annum. Against this the likely growth in the availability of railway rakes by de-
consumption/ off-take in the first three years of congestion at the identified locations; and
the Eleventh Plan works out to 8.8 per cent and address law and order issues affecting the
it is 9.0 per cent for the Plan period as a whole. unloading of railway rakes in time at certain
As a result of this, the off take in 2011-12 is power plants.
revised downward from 731 mt to 713 mt. In
case of power sector (utilities) the coal demand Coal Regulator
has been revised downward from 483 mt to 473
mt in the terminal year 2011-12 due to delays in 15.20. Independent regulation of the coal
commissioning of some projects implying an sector becomes essential to ensure that the
annual growth rate of 9.0 per cent against sector becomes competitive, is able to fix
envisaged growth rate of 9.4 per cent. Also, it is formulae for price revision for long-term fuel
indicated by Central Electricity Authority (CEA) supply agreements and fix trading margins as
that there would be a shortfall in capacity well as improve exploitation and allocation of
addition of coal based generation by about 16.5 available resources. A Bill relating to regulation
per cent as per revised plan and accordingly of coal sector is under the consideration by the
coal-based generation is also revised Government.
downward to 630 billion Units (BU) for 2011-12
against originally envisaged target of 690 BU. Coal Pricing
The details of sectoral coal demand are given in
Annexure-15.2. 15.21. Current market price for world thermal
coal is around US $ 70 per tonne, a 40 per cent
Demand Supply Gap decline from the peak US $121 in 2008 and
even below the US$ 62 thermal coal price
15.18. The gap between demand and supply is average in 2007. Because of this volatility, it is
projected to be 83.33 mt in the terminal year of difficult to compare international coal prices with
the Plan based on the lower coal-based domestic prices. However, even after the
generation capacity addition projected in the decline in international prices, the price of
MTA. The gap would have been even more, if imported coal is much higher than the price of
all the planned coal based power plants had domestic coal. Imported non-coking coal from
been commissioned in time. Indonesia landed price at Chennai port in
August 2009 was reported to be Rs. 3,389 per
Coal Imports tonne and Rs. 4,288 per tonne for coal imported
from South Africa. Against this, the price of non-
15.19. Against an overall coal import of 43.08 coking coal supplied by Mahanadi Coalfields
mt (17.88 mt of coking coal and 25.20 mt of Limited (MCL), Talcher at Chennai is reported
thermal coal) in the terminal year of Tenth to be Rs. 1,560 per tonne for Ennore power
Plan (2006-07), the imports in the terminal year station and Rs. 1,492 at North Chennai power
of the Eleventh Plan (2011-12) were originally plant (based on pre-revised prices). The
316 Mid-Term Appraisal of the Eleventh Five Year Plan

present Talcher coal cost is Rs. 640 per tonne. against the initially envisaged growth of 6.9 per
In other words, even though the cost of cent in the Eleventh Plan. The shortfall in
delivered domestic coal is more than 2.42 times growth is due to delay in commissioning of new
the cost of coal at pit head, even so it is still power projects. The total electricity production
cheaper than imported coal. by the NLC w a s projected as 26.08 BU in
2011-12 and is now likely to b e 2 1 . 1 3 BU
15.22. Part of the price difference between indicating a decline of 5.00 BU. There have also
imported and domestic coal is because been delays in implementation of downstream
imported coal has less than 10 per cent ash units mainly on account of delay in supply &
content and around 6,000 K cal per Kg of erection of equipments by BHEL, the main
calorific value; whereas the Indian coal supplied contractor.
to power plants (F and G grade is supplied to
power plants in India) has around 40 per cent of Review of Financial Performance:
ash and higher moisture content with lower
calorific value. If we compare landed cost of 15.25. Capital Expenditure in the first three
coal based on per million Kilo calories only, it years has been lower than expected because of
works out to Rs. 565 per million Kilo calories for delay in starting of new projects, delay in
the coal from Indonesia and Rs. 715 for the procurement of Heavy Earth Moving Machinery
coal from South Africa at Chennai port on CIF (HEMM) because of court cases and decision
basis. In comparison to this, the delivered cost of some of the coal companies to outsource
of coal from MCL at the above two power overburden removal/coal loading & transport
stations at Chennai works out to Rs. 446 and operations and slow progress with regard to
Rs. 426 respectively. Normally F and G grade central sector schemes. The likely expenditure
coal is supplied to power stations in India, in the first three years of the Plan will only be
which has around 40 per cent ash content. The Rs. 14,793.75 crore or 39.29 per cent (CIL
price difference of around 26 per cent after 43.94 per cent; SCCL 55.63 per cent; NLC-
adjusting for calorific value suggests that Mines 45.61 per cent; NLC-Power 26.49 per
domestic coal is underpriced. There is a need cent, Central Sector Schemes 56.64 per cent)
to bring coal prices into alignment with of the Eleventh Plan outlay of Rs. 37100.08
international prices after adjusting for calorific crore.
value.
15.26. The company-wise/scheme-wise plan
15.23. There are other pricing issues that also outlay and expenditure as projected initially and
need to be resolved. Coal prices should be as anticipated in the MTA are indicated at
more finely differentiated so that higher quality Annexure-15.3. The coal sector PSUs are likely
coal gets a higher price. This was also an to achieve only 80 per cent of the expenditure
important component of the Integrated Energy anticipated in the Eleventh Plan.
Policy and should be implemented urgently.
15.27. The approved Eleventh Plan outlay of
Lignite Production and Gross Power Rs. 37,100 crore for MoC was planned to be
Generation – Neyveli Lignite Corporation financed through an Internal and Extra-
Limited (NLCL) Budgetary Support (IEBR) of Rs. 35,774.37
crore, and a Gross Budgetary Support (GBS) of
15.24. Lignite production was projected to Rs. 1,326.00 crore. The budgetary support
grow by 5.17 per cent per annum in the sought for the Ministry’s plan schemes covered
Eleventh Plan to reach 27 mt in 2011-12, the Environmental Measures and Subsidence
terminal year of Eleventh Plan. However, actual Control scheme (EMSC), R&D schemes,
growth is now expected to be only 4.37 per Conservation and Safety measures and
cent per annum and lignite production in development of transport infrastructure in the
2011-12 will only reach 26.02 mt. The coal fields. These schemes were proposed to
anticipated growth in lignite production from be funded partly from stowing excise duty
Neyveli Lignite Corporation (NLC) in the first collected under Coal Conservation
three years of the Plan is only 1.2 per cent Development Act (CCDA), partly from IEBR of
 Energy 317

CIL and in some part through budgetary to 4.0 lakh metres (53 per cent) of drilling in the
support. first three years of the Plan period.

15.28. The review of the financial performance 15.31. It has been proposed that the blocks
of the coal sector is given in Table 15.3. outside the purview of CIL be explored in detail
to reduce the time lag between offering the
Review of the Central Sector Schemes blocks to potential entrepreneurs and start of
the operations by them through budgetary
15.29. The approved budgetary support for support. The cost of exploration, in turn, will be
central sector schemes for the Eleventh Plan recovered from entrepreneurs who have been
was Rs. 1,326 crore Covering schemes of allotted the blocks. For Eleventh Plan, the
promotional exploration, detailed drilling in non- approved outlay for this scheme was Rs.
CIL blocks, Environmental Measures and 472.94 crore to carry out 13.50 lakh metres of

Table 15.3
(Rs. crore)
th 11th Plan Cumulative
Sl 10 Plan 2007-08 2008-09 2009-10
Sector Approved Expenditure
No Expenditure Actual Actual Ant.
Outlay (2007-10)
Coal and
1 9,909.86 23,556.07 3,186.02 3,557.66 4,120.34 10,864.02
Lignite
NLC
2 1,063.32 12,218.00 1,188.17 1,159.10 844.94 3,192.21
(Power)
MOC
3 922.95 1,326.01 280.03 197.49 260.00 737.52
Schemes
Total MOC 11,896.13 37,100.08 4,654.22 4,914.25 5,225.28 14,793.75

Subsidence Control scheme (EMSC), R&D drilling in 42 Non-CIL blocks to augment coal
schemes, Conservation and Safety measures reserves under proved category. During the first
and development of transport infrastructure in three years of the Plan period, the likely
the coal fields etc. These schemes are cumulative achievement is projected to be 3.18
proposed be funded partly from subsidence lakh metres or 23.5 per cent of the target
excise duty collected under CCDA, partly from envisaged. The drilling target has been revised
IEBR of CIL and partly form budgetary support. downward to 11.85 lakh metres. This implies
completion of the balance 8.67 lakh metres of
Regional/Promotional Exploration & drilling in the next two years of the Eleventh
Detailed Drilling in Non-CIL Blocks Plan, which representing an increase in the
achievement in the first three years.
15.30. This scheme is aimed at supplementing
Geological Survey of India’s (GSI) efforts for Science & Technology (Research &
regional exploration for coal and lignite along Development)
with other components of the schemes viz.
integrated coal and lignite data base, Coal Bed 15.32. The main thrust area in this scheme are
Methane (CBM) studies etc. During the promotion of clean coal technologies including
Eleventh Plan, a drilling target of 7.50 lakh beneficiation of Low Volatile Medium Coking
metres had been set comprising of 4.0 lakh Coals (LVMC), in situ coal gasification, carbon
metres for coal and 3.5 lakh metres for lignite to capture and sequestration, coal bed
establish about 20 billion tonnes of coal and methane/coal mine methane/ abandoned mine
4.06 billion tones of lignite. In the first two methane, coal gasification, coal to oil etc. It also
years, 2.42 lakh metres of drilling has been aims to establish ways/ technology for
completed and 1.58 lakh mt is likely to be extraction of steep and thick coal seams, open
completed in the year 2009-10 taking the total cast bench slope stability, strata control etc.
318 Mid-Term Appraisal of the Eleventh Five Year Plan

The progress in Science and Technology for Rail link in Mand-Raigarh coal field of SECL
coal has not been satisfactory. However, there and Sattupalli-Badrachalam rail link in SCCL
has been some progress in Underground Coal command area has been delayed for a long
Gasification (UGC) for production of syngas. period. Commissioning of these lines and
The activity has been notified as end-use under completing them at the earliest would be
captive coal mining policy. MoC has also essential for movement of around 125-130
identified three coal blocks for Coal to Liquid million tonnes of coal to end users.
project and two of the three coal blocks
identified for coal liquefaction projects have Environmental Measures & Subsidence
already been allocated to two companies; one Control
promoted by the Tata’s and other by JSPL.
15.36. The purpose of this scheme is to
15.33. Coal Bed Methane (CBM) is available in improve environmental conditions in old mined
some deposits and if extracted separately, out areas, particularly Jharia and Raniganj
could form a supplementary source of energy. coalfields by implementing a number of
So far, 26 blocks have been allocated up to the schemes for mitigating the damage occurred
Third CBM Round and ten blocks will be due to unscientific mining carried out before
allocated in the next round. However, as of pre- nationalisation of coal mines. For this
now, there is very little production. An Expert purpose, Master Plan for Jharia–Raniganj
Committee under the Chairmanship of Adviser coalfields with a total outlay of Rs. 9,773.84
(Projects), MoC is finalising recommendations crore has been taken up to deal with fire,
to deal with the issues related to simultaneous rehabilitation and subsidence prone inhabited
coal mining and CBM operations. areas and diversification of roads/ railway lines
within command area of Bharat Coking Coal
Conservation & Safety in Coal Mines and Limited (BCCL) and Eastern Coalfields
Development of Transport Infrastructure in Limited (ECL).
Coal Field Areas
Information Technology
15.34. These two schemes are under the
statutory provisions of Coal Conservation and 15.37. In order to improve efficiency of project
Development Act (CCDA) and were being monitoring system and e-governance, the
implemented as a part of non-plan scheme Eleventh Plan has called for strengthening
during the Tenth Plan through reimbursement information technology aspects in coal sector.
of Stowing Excise Duty (SED) collected under Computerisation of various business functions
CCDA Ministry of Finance has taken a view that up to project level: coal and lignite resource
SED collected under CCDA is a revenue to the information system, resource depletion
Government of India, which is reimbursed back information system, Integrated Coal Net
to coal companies for implementation of these Application Software, GPS-based truck
schemes. Therefore, this scheme will be treated dispatched system, GIS mapping : centralized
as a Plan scheme from Eleventh Plan onwards. mail/messaging system are some of the
contemplated areas.
15.35. Development of infrastructure in
coalfields is essential to ensure the evacuation Way Forward
of coal produced in mines to the rail heads or
railway yards. It is stated that substantial time is 15.38. The Mid-Term Appraisal of performance
taken by railways to build the critical rail links in the coal sector raises a number of issues that
and that is adversely affecting the movement of need to be addressed.
coal to the end users. Implementation of four
critical rail links namely: Tori-Shivpur rail link in (i) Domestic production of coal will not be
North Karanpura coalfield Central Coalfields adequate to meet the growing demand and the
Limited (CCL) command area; Gopalpur- gap between demand and supply is likely to
Jharsguda rail link connecting coal blocks in Ib widen further to 200 MT in the Twelfth Plan.
Valley Coalfield in MCL area and Baroud-Bijuri Measures need to be taken in the Eleventh Plan
 Energy 319

itself to tie up the imports from the coal suitability for Indian conditions.
exporting countries besides enhancing the level
POWER SECTOR
of domestic production.
(ii) Development work on the captive blocks 15.39. Electricity remains a key element of
allocated to multiple users is very slow due to infrastructure, essential for delivering targeted
problems of access for mining operations; land levels of GDP growth. While the Mid Term
acquisition; E&F clearance etc. Steps also need Appraisal reveals some progress in this area,
to be initiated to cancel the allocation of non- the sector continues to face problem of energy
serious players and re-allotting such blocks to and peaking shortages, low quality of supply
interested consumers. and uneconomic electricity tariffs, all of which
adversely affect the financial viability of the
(iii) Prospecting licenses are now being
sector.
issued along with the allocation of blocks to
avoid delay in starting the implementation
Electricity Generation
activities.
(iv) The constraints on expanding supply of 15.40. Generation of electricity is expanding at
domestic coal suggest that the present a faster pace than in the Tenth Plan, though at
nationalisation of the coal sector needs to be a lower pace than the demand growth, leading
reconsidered in order to open up new coal to continued peak and energy shortages in the
mines for private sector exploitation beyond the country. The reported energy shortage for the
captive use currently allowed. Since private year 2008-09 was 11 per cent and
sector exploitation of petroleum resources, corresponding peak shortage was 12 per cent.
which are much scarcer, is freely allowed, there The generation of power during 2006-07 was
is every reason for private sector coal 662 billion units, which increased to 704 billion
development to be favourably considered. units (+6.3 per cent) in 2007-08 and to 724
billion units (+2.7 per cent) in 2008-09 and
(v) The current economic mining practices
target for 2009-10 is 789.12 billion units. The
are generally limited to a depth of 300 m and
likely growth of supply in first three years of
about 40 per cent of the reserves of the country
Eleventh Plan works out to 5.59 per cent as
are beyond this depth. Winning of coal under
compared to actual growth of 5.32 per cent in
such depths have to be done through
the Tenth Plan period. Primarily, the growth has
underground mining operations. Technologies
been in thermal power at 10.48 per cent, with
suitable to mine such reserves need to be
continuous decline in hydro power (-8.43 per
deployed to enhance the recovery level.
cent). The cumulative generation in 2009-10
(vi) Clean coal technologies will be (Apr-Dec, 2009) is given in Table 15.4.
potentially important options in the long-term.
However, there are significant issues 15.41. The growth in thermal generation has
surrounding the current relevance of these mainly been due to increased generation from
technologies for India including uncertainties in gas based projects which has been possible
technical and cost estimates along with due to increased gas availability from KG basin

Table 15.4
(in BU)
per
Target Generation April Growth
Generation April cent
Category April – 2008 - December (per
- December 2009 of
December 2009 2008 cent)
Target
Thermal 478.0 468.5 98.0 430.3 8.88
Nuclear 13.6 13.4 98.8 11.3 18.58
Hydro 93.9 85.5 90.9 92.2 -7.27
Bhutan Imp 5.8 5.2 88.2 5.6 -7.14
Total 591.3 572.5 96.8 539.4 6.14
320 Mid-Term Appraisal of the Eleventh Five Year Plan

(D-6) and LNG imports that registered a growth sector and only 16 per cent from private sector.
of 31.41 per cent during period April-December, The private sector could contribute only 8.71
2009. per cent of the actual capacity addition in Eighth
Plan, 26.6 per cent in Ninth Plan and 12.67 per
Peak & Energy Shortages cent in the Tenth Plan. Private sector
performance is likely to be much better in
15.42. Prevailing peak and energy shortages Eleventh Plan and is likely to contribute around
continue to be a cause of concern. Shortages of 32 per cent of the expected capacity addition.
this magnitude can significantly constrain The Table 15.5 shows the share of Central,
industrial activity, reduce economic growth and State and private sector in the previous three
require business and manufacturing consumers plans and the current Plan.
to utilise more expensive back up generation,
which often uses diesel fuel. Reduced Table 15.5
economic output also means that these 8th 10th Eleventh
industrial consumers pay less tax revenues to Plan 9th Plan Plan
the government at all levels. Use of expensive Plan
Central 8,157 4,504 12,165 21,222
back up power by industries adds to their costs State 6,835 9,450 6,244 21,355
and undercuts competitiveness. Private 1,430 5,061 2,671 19,797
Total 16,422 19,015 21,080 62,374
Capacity Addition in the Previous Plans –
Analysis & Trends
15.45. The share of hydro capacity in the total
15.43. Capacity addition has consistently fallen installed capacity has been around 25 per cent
below target in successive plans. In the last at the end of the Eighth Plan and remained at
three Plans (Eighth Plan to Tenth Plan), the the same level at the end of Ninth Plan and
average capacity addition has been around marginally increased to 26 per cent by the end
50.5 per cent of the targeted capacity addition. of the Tenth Plan. With the projected hydro
Actual capacity addition of 16,423 MW during capacity addition of 8,237 MW out of the total
Eighth Plan was 46 per cent less than the likely addition of 62,374 MW in the Eleventh
targeted capacity addition of 30,538 MW. This Plan (see Table 15.8 below), the share of hydro
trend continued in the Ninth Plan. The actual is likely to come down to around 23 per cent.
capacity addition of 19,015 MW during the Plan Measures need to be taken to increase the
was 53 per cent less than the targeted capacity share of hydro and plan open cycle gas based
addition of 40,245 MW performance in the projects to meet the peak demand effectively.
Tenth Plan was similar and only 51 per cent of
targeted capacity addition was achieved. Capacity Addition in Eleventh Plan

15.44. The total capacity addition in three 15.46. The Eleventh Plan originally envisaged
plans put together (Eighth, Ninth and Tenth) a capacity addition of 78,700 MW. The sector-
was 56,518 MW of which 44 per cent was from wise and source-wise break-up is given in
the Central sector, 40 per cent from State Table 15.6.
 Energy 321

Table 15.6
Original Targets for Capacity addition during 11th Plan
(in MW)
per cent
Source/Sector Hydro Thermal Nuclear Total
age
Central 8,654 24,840 3,380 36,874 47 per cent
State 3,482 23,301 - 26,783 34 per cent
Private 3,491 11,552 - 15,043 19 per cent
100 per
Total 15,627 59,693 3,380 78,700
cent
20 per cent 4 per cent 100 per cent
76 per cent
percentage per cent per per cent per per cent per
cent per cent
cent cent cent

15.47. The Eleventh Plan target implied that Table 15.8

capacity creation in the Eleventh Plan would be Capacity Addition in Eleventh Plan: Source-
more than 3.5 times the capacity actually added wise
in the Tenth Plan. Ramping up capacity addition (in MW)
takes time and the capacity commissioned upto Sector Hydro Thermal Nuclear Total
31 December 2009 was only 19,092 MW. It is 21,222 (34
Central 2,922 14,920 3,380
anticipated that additional capacity aggregating per cent)
21,355 (34
to 43,282 MW can be commissioned during the State 2,854 18,501 -
per cent)
remaining period of Eleventh Plan. The revised 19,797 (32
MTA target for total capacity addition is Private 2,461 17,336 -
per cent)
therefore of 62,374 MW which is lower than the 62,374
original target but is nevertheless about three Total 8,237 50,757 3,380 (100 per
times the capacity actually added in Tenth Plan. cent)
Summary of this capacity is given in Table 15.7. 13.21 81.37 per 5.42 per
per cent cent cent

Table 15.7 15.49. The revised MTA target of 62,374 MW

Revised Targets for Capacity addition involves a significant improvement in the pace
during Eleventh Plan of capacity addition in the remaining two years
(in MW) of the Eleventh Plan. The following factors
Comm- Likely in Total with suggest that this improved performance would
With be realised.
issioned the high
Sector Best
till 31st remaining degree of
Efforts
Dec., 2009 period certainty (a) Preparedness during the Eleventh Plan is
Central 4,990 16,232 21,222 4,530 better than before in respect of timely
State 9,112 12,243 21,355 1,130 placement of orders and increase in the
Private 4,990 14,808 19,797 6,930
manufacturing capacity of domestic
All-India 19,092 43,282 62,374 12,590
Note : The actual capacity addition as on 31st March,
suppliers. This was a result of efforts made
2010 was 22,301.7 MW. earlier to augment the equipment
manufacturing capability and development
15.48. Summary of the capacity (Fuel- of new vendors and the benefits of these
wise/Sector-wise) likely in the Eleventh Plan efforts will be visible in the latter half of the
with high degree of certainty is given in Table Plan.
15.8.
(b) More than 20,000 MW capacity is being
executed by foreign suppliers. Generally,
supply of equipment in these has not been
a problem.
322 Mid-Term Appraisal of the Eleventh Five Year Plan

(c) 15,000 MW capacity is to be Table 15.10

commissioned by private players where no Plant load factor of Generating Stations
delay is expected in execution considering (in per centage)
the progress made so far. Year Central State Private Overall
2001-02 74.3 67.0 74.7 69.9
(d) 3,160 MW nuclear capacity to be 2002-03 77.1 68.7 78.9 72.1
commissioned during 2009-10 and 2010- 2003-04 78.7 68.4 80.5 72.7
11, is achievable considering assured 2004-05 81.7 69.6 85.1 74.8
availability of nuclear fuel. 2005-06 82.1 67.1 85.4 73.6
2006-07 84.8 70.6 86.3 76.8
(e) BHEL has to execute about 2,000 MW 2007-08 86.7 71.9 90.8 78.6
Hydro Capacity and 4000 MW of thermal 2008-09 84.3 71.2 91.0 77.2
capacity during remaining period of 2009-
10, followed by 12,800 MW during 2010-11 Hydro Development
and about 5,600 MW during 2011-12.
15.52. The pace of Hydro Power development
Given its track record, BHEL should be
has been slow. As against the target of 15,627
able to fulfill this task.
MW for the Eleventh Plan, only 8,237 MW (53
per cent) is expected to materialise during the
15.50. Table 15.9 gives the total installed
Plan. The following issues need to be
capacity at the beginning of the Eleventh Plan,
addressed if the pace in generating hydro
likely capacity addition during the Plan and
power has to be increased:
anticipated installed capacity at the end of the
Plan. The total installed capacity indicated here
(i) Environment and Forest clearances
does not include generation capacity of captive
power plants. (ii) Development of Infrastructure (Roads &
Highways)
Table 15.9
Anticipated Installed Capacity at the end of (iii) Land Acquisition
Eleventh Plan
(in MW) (iv) Rehabilitation & Resettlement issues
Hydro Thermal Nuclear Total (v) Security clearance
Capacity as
on 31st March, 34,654 86,015 3,900 1,24,569 (vi) Availability of hydrological data to private
2007 developers
Eleventh Plan
15,627 59,693 3,380 78,700 (vii) Power Evacuation
Target
8,237
Likely addition
(52.71
50,757 3,380 (viii) Storage Project versus RoR Projects
during (85.03 (100 per 62,374
per (ix) Long Term Financing
Eleventh Plan per cent) cent)
cent)
Likely installed
capacity on 15.53. In order to address the above
st 42,891 1,36,772 7,280 1,86,943 mentioned issues, several policy initiatives have
31 March,
2012 been taken, including Hydro Development
Note: Figures in brackets indicate percentage of target achieved) Policy initiated by MOP; 50,000 MW hydro
power development initiative; incentives for the
15.51. The Plant Load factor (PLF) of Thermal development of small hydro projects and Inter-
Power Stations in the country has been steadily Ministerial group to develop a strategy to
increasing over the years, representing higher enhance the pace of hydro power development
utilisation of the installed capacity. The average in the North Eastern Region. Development of
PLF of Thermal power stations of Power Hydro Power, however, needs a strong push. A
Utilities during 2008-09 was 77.22 per cent. The policy to develop identified sites with all
sector-wise and overall PLF since beginning of clearances of environment for forests and land
Tenth Plan is given in Table 15.10. acquisition should be taken up on a large
 Energy 323

number of sites simultaneously. Some of these from the Russian federation in a phased
could then be bid out to private investment. manner.

Atomic Energy 15.57. The Fast Breeder Reactor programme

is set to be launched with the prototype 500
15.54. Expansion of capacity in atomic energy MWe Fast Breeder Reactor (FBR) plant being
has been limited in the past due to the lack of built at Kalpakkam and is likely to be
availability of domestic uranium or the non- commissioned by March 2012. This project is
availability of supply of international supply of the first of its kind project in India and is being
uranium fuel because of the restrictions implemented by the BHAVINI, a public sector
imposed by the Nuclear Suppliers Group. company set up to build this project and all
These restrictions have now been lifted and we future fast breeder reactor projects. Successful
can be expected and a much faster expansion commissioning of this project would go a long
in nuclear generation capacity can be expected. way in achieving the three-stage development
Department of Atomic Energy (DAE) envisages of India’s nuclear power programme for the
adding 5900 MW in the Twelfth Plan based on future.
domestic manufacturing capability and
additional 10,000 MW with the support of 15.58. DAE envisages starting work on eight
international players. units of indigenous 700 MWe PHWRS in the
Eleventh Plan. Four units have been already
15.55. Despite availability of imported uranium, approved and work has commenced. These are
priority must be given to domestic development slated for commissioning in 2016-2017. Work is
of uranium mines. This would enable faster expected to start on Light Water Reactors
development of the sector. (LWR) through international cooperation.
Permission for five coastal sites to set up
15.56. India’s nuclear power strategy has nuclear power parks of 6000 to 10000 MWe
depended on a three stage development capacity based on LWRS with cooperation from
programme consisting of conventional nuclear Russian Federation, USA and France, has
reactors in the first phase, fast breeder reactors been accorded by the Government in principle.
in the second phase and thorium based Depending upon when the actual work would
reactors in the third phase. Successful start on the reactors it is possible to add a total
transition to the third phase will enable us to LWRs capacity of 40,000 MWe is possible to be
explore India’s vast thorium resources thus added progressively by 2032. It has been
becoming much more energy-independent planned that the spent fuel of LWRs will be
beyond 2050. If we depend on domestic reprocessed and deployed in safeguarded
uranium resources, the first phase plants FBRs and additional PHWRs. This would
cannot exceed 10,000 MWe from Pressurised further enhance the FBR capacity in the long
Heavy Water Reactor (PHWR). A cap of 10,000 term and thus increase the role that nuclear
MWe would have limited the scale and pace of energy can play in long term energy security,
fast breeder reactor programme and therefore, without the need for any further import of
the production of plutonium which determines nuclear fuel. This would significantly increase
the rate at which thorium based nuclear plants the role that nuclear energy can play in our long
can be mobilised. With the lifting of Nuclear term energy security.
Supplier Group (NSG) restrictions, import of
uranium would enhance the capacity base of 15.59. The third phase of the three-phased
the first stage programme. Government has nuclear energy programme, has several
taken steps to import nuclear fuel from NSG complex technological issues to be tackled
members and reactors from the nuclear before our ability to use Thorium. A clear
equipment suppliers to enhance the capacity analysis and assessment of the need of
base in the country. Three Hundred tonnes of additional Manpower, R&D investment and new
Uranium concentrates have already been facilities are called for including the elements to
imported from France. Steps are on to get long be covered in the remaining Eleventh plan
term supply of 2,000 tonnes of Uranium pellets
324 Mid-Term Appraisal of the Eleventh Five Year Plan

period. Schedules are of serious concern on Barh-I (3x660 MW) were placed by NTPC on
this front. foreign companies (Russian and Korean) in
2004 and 2005 respectively following
Role of Private Sector in Generation Internationally Competitive Bidding. However,
Commissioning of these units has been delayed
15.60. As can be seen, higher capacity considerably because of contractual problems
addition in the current Plan is feasible because with the Russian companies.
investment in the private sector has grown
rapidly and their share in the total capacity is 15.63. Recently, Government of India has
likely to go up from less than 10 per cent in the approved a policy encouraging domestic
Tenth Plan to 32 per cent during the Eleventh production of super critical plants by bulk
Plan. While the availability of plant and tendering of supercritical units of 660 MW
equipment is going up with expansion by BHEL capacity for 11 generating units by NTPC Ltd
from a level of 10,000 MW per annum for itself and on behalf of its companies, JV
(December 2007), to around 20,000 MW per and DVC. Winning bidders are required to
annum by the end of 2012, private players like undertake domestic manufacturing in phases in
L&T & Mitsubishi JV, Toshiba & JSW JV, view of the increasing coal-based thermal
ALSTOM & Bharat Forge etc., are also going to capacity. A strategy needs to be worked such
set up new capacities, which will help the that at least 50 per cent of the capacity in the
Twelfth Plan projects. Twelfth Plan is based on supercritical
technology. Subsequently, most power plants
New Initiatives should be based only on supercritical
technology. Appropriate policy measures, have
Ultra Mega Power Projects
to be chalked out by December, 2010.
15.61. A major initiative in addition to power
generation capacity is the programme of Ultra Emerging New Challenges
Mega Power Projects (UMPPs). So far, four (4)
UMPPs of 4,000 MW each have been awarded • Chinese Equipment: As stated above,
on the basis of competitive tariff based bidding. Chinese equipment suppliers have entered
Out of these, five (5) units of 800 MW each are the Indian power sector market in a big
under construction at Mundra UMPP. Order for way. Orders have already been placed for
another UMPP at Sasan (6x660 MW) has been Chinese equipment in respect of projects
placed. Orders for Boiler & T.G. sets for other for 36,800 MW during the past couple of
two awarded UMPPs (Krishnapatnam & Tilaya) years. Import of huge quantity of Chinese
are yet to be placed. Five more super critical equipment without developing local
UMPPs have been planned. Major thrust is component vendors would mean continuing
required so that these capacities can be import of components and spare parts from
obtained in the Twelfth Plan. An important China. This will not only be a costly affair
element of this programme is that super critical but also weakens the opportunity for
technology has been stipulated thus building in developing domestic manufacturing
an important shift to energy efficiency. capability. There is need to develop
domestic manufacturing capacity and
Super Critical Projects under Construction vendors for spare parts of Chinese
equipment.
15.62. Efforts to introduce supercritical
technology in the country date back to the year • Project Implementation: Project
2000 when the Central Electricity Authority management tools must be used for timely
(CEA) gave techno-economic clearance to completion of the projects. At the national
Sipat (3x660 MW) Thermal Project of NTPC. level, a system should be developed in the
However, introduction of technology was Ministry of Power or CEA to ensure timely
delayed mainly due to non-availability of completion of projects both in public sector
technology in the country. Orders for initial and in private sector.
supercritical units i.e. Sipat (3x660 MW) and
 Energy 325

• Environmental Clearances: Environment the existing projects and projects added in the
and forest clearances sometimes take too Eleventh Plan. However, considering the
long. Procedural bottlenecks, issues present level of domestic production, availability
regarding rehabilitation and R&R have also of gas for the Twelfth Plan projects is uncertain
been causing inordinate delays in the considering the present level of domestic
implementation of several hydro and coal production. Unless production from new
projects. It takes anywhere between 3 to 5 discoveries happen, new capacity addition
years for a project to get the required based on gas may not be feasible. New plants
clearance. Timely environmental and forest based on imported LNG will have to be taken
clearance is essential for project up seriously and if required, policy changes will
implementation on schedule. have to be initiated. Policies that are the most
critical will be the one on pooled pricing of gas
• Skilled Personnel: Availability of skilled to make these imports viable.
personnel is going to be critical in view of
the large capacity addition programme in Availability of Fuel
the Eleventh and the Twelfth Plan. To
increase the pool of skilled personnel the 15.66. As noted above, availability of coal will
government had in July 2007 launched the be a critical constraint on the development of
“Adopt an ITI” Scheme. So far only 52 ITIs coal-based power plants in the Eleventh Plan. It
have been adopted by the power sector will become much more intense in the Twelfth
units. Manpower planning will have to be Plan when the projected gap between demand
accorded highest priority in the review of and supply is likely to go up by 200 mt.
activities by the Ministry of Power and
conscious efforts will have to be made to 15.67. Recently the Empowered Group of
ensure that every single power generating Ministers (EGOM) has allocated 30 Million
unit in the country adopts at least one ITI. Metric Standard Cubic Meter Per Day
(MMSCMD) additional gas supplies to power
Need for Starting Twelfth Plan Projects projects besides the existing allocation of
domestic gas. With this, the currently allocation
15.64. In view of the prevailing peak and of gas to the power sector is around 65
energy shortages, CEA has estimated a MMSCMD. This has facilitated increase in
capacity addition requirement of 1,00,000 MW electricity generation from the gas-based power
in the Twelfth Plan to meet the growing needs plants considerably. Supply of gas from LNG
of the economy. Of this around 70 per cent is terminal is currently around 36 MMSCMD and
likely to be thermal based capacity. Efforts have is likely to increase to 70 MMSCMD by the end
been initiated to place orders for the projected of Eleventh Plan. Availability of gas from the
capacity addition in the Twelfth Plan and tie up domestic resources as well as from LNG
the fuel supply and other inputs to ensure timely terminals set up in the country would be
completion of projects. However, inadequate adequate to meet the needs of the existing
availability of coal-based projects in the Twelfth capacity and the capacity addition in the
Plan continues to be a cause for concern. A Eleventh Plan.
gap of 200 mt is estimated in the Twelfth Plan
and efforts need to be initiated to increase the 15.68. Availability of gas for capacity addition
domestic production as well as enhance the plans in Twelfth Plan is uncertain unless
level of imports to ensure that adequate supply additional gas production becomes available
of coal. from the new discoveries and LNG import
capacity is fully utilised. Hence policy
15.65. The Gas based capacity at the end of interventions will need to be initiated to support
Tenth Plan was about 13,000 MW and is establishment at LNG based power plants.
expected to increase to 20,000 MW at the end
of Eleventh Plan. With the allocation of gas
from KG Basin recently, available gas from
domestic production and Liquefied natural Gas
(LNG) imports would be just adequate to feed
326 Mid-Term Appraisal of the Eleventh Five Year Plan

TRANSMISSION & DISTRIBUTION Development of National Grid

15.70. Development of a national grid
TRANSMISSION
facilitates optimal utilisation of resources by
bulk transfer of power from surplus regions to
15.69. Eleventh Plan had targeted for
deficit regions in the country as well as to
development of transmission lines at High-
facilitate scheduled/ unscheduled exchange of
Voltage Direct Current (HVDC), 765 kV, 400 kV
power between regions.
and 220 kV both in the Central and State
sectors in addition to expansion of sub stations
15.71. The inter-regional transfer capacity
for meeting the power transmission
currently available is 20,800 MW and will go up
requirements. The present status of
to 32,650 MW by the end of the Eleventh Plan
Transmission line and Sub-Stations is shown in
period. During the first two years of the
Tables 15.11 & 15.12. As is seen in Table
Eleventh Plan period, Power Grid Corporation
15.11 that the likely achievement for HVDC and
of India Limited (PGCIL) has added 5,900 MW
765 KV would fall short substantially by over 70
transmission capacities. There is a need to
per cent and nearly 48 per cent respectively.
reassess the position to ensure that there are
The main reason for shortfall has been the
no bottlenecks in power transmission as open
delay in associated generation projects which
access get operational.
suggests that the development of transmission
capacity is not a critical constraint in power
Issues concerning Evacuation of Power
development in the Eleventh Plan.
from NE Region:
Table 15.11
15.72. Currently four projects namely Lower
Targets and Achievements of Transmission Subansiri (2,000 MW), Kameng (600 MW),
Capacity Addition Bongaigaon TPS (750 MW) and Palatana
(Tripura) Gas (750 MW) aggregating to about
(in CkM)
4,100 MW are under implementation in NE
Progra Achieve Anticipated
Region. A number of hydro projects in
mme ment Achievement
Arunachal Pradesh and Sikkim are also likely to
Voltage of (upto (at the end of
come up in the near future. Since only a part of
Eleven October, Eleventh
the power from the above mentioned projects
th Plan 2009) Plan)
would be utilised in NE Region, major part of
HVDC 5,400 1,480 1,600 this power would have to be exported to power
765 kV 5,273 1,088 2,773 deficit regions like Northern Region and the
400 kV 47,446 16,982 40,000 Western Region. Considering the contingency
220 kV 30,396 10,813 24,300 and reliability needs and total power evacuation
from NE Region through Chicken neck area,
Sub-Stations: five to six HVDC lines (800 kV) and Three to
Table 15.12 four Extra High-Voltage Alternating Current
(EHVAC) lines (400 kV) would have to be
Achievement of Capacity Addition upto established to eventually evacuate about
October 2009 50,000 MW in NE Region and 15,000 MW in
(in MuA) Sikkim/Bhutan from all such future projects. The
Target Achievement Ministry of Power would be responsible for the
(upto (upto evacuation of power from North Eastern States.
Voltage MVA October, October,
2009) 2009) Private Sector in Transmission
(MVA) (MVA) 15.73. Although the power transmission
HVDC 8,500 500 500 segment has been opened to private
765 kV 24,500 4,500 4,500 investment in 1998 there has been only a
400 kV 51,960 28,190 21,095 limited success in attracting private investment.
220 kV 72,731 32,578 27,788 The only public-private partnership project – the
 Energy 327

Tala transmission system – has been 15.76. Because of the above stated
operational since May, 2007. Ministry of Power inefficiencies, the power utilities are not able to
had identified 14 transmission projects for 100 recover the cost of supply through the tariff.
per cent private investment with the approval of While the average cost of supply is likely to
all standard bidding documents in 2008, of increase from Rs. 3.68 per unit in 2005-06 to
these, only six are being taken up for private Rs. 4.29 per unit in 2009-10 (an increase of
investment. The bidding process for the first 16.2 per cent), the average tariff increased from
three projects has been completed and Rs. 2.89 per unit to Rs. 3.38 per unit in the
contracts awarded. Bids have been invited for same period (about 17.4 per cent). The gap
the remaining three projects. It is recommended between has increased to around 91 paise per
that State Governments take up projects in PPP unit in 2009-10.
mode. Recently, Haryana has successfully bid
out a PPP transmission project and this 15.77. Although the average tariff charged
experience needs to be replicated. from the consumers in India is one of the
highest in the world the utilities are not able to
DISTRIBUTION recover the cost of supply. This can be
attributed to two reasons: Firstly, tariff charged
15.74. The weakest part of the power sector to domestic and agricultural consumers is less
remains distribution which is incurring large than the average tariff for all consumers, though
losses. While T&D losses at the national level cost to supply to such consumers is generally
are expected to decline from 29 per cent in higher; and second, poor governance and low
2006-07 to 27 per cent in 2007-08, AT&C investment in the distribution network leading to
losses are reported to be over 30 per cent1. power theft and low recovery. Some State
This leads to high financial losses. The total governments partly compensate the utilities by
loss, incurred by the distribution companies, providing subsidy towards the supply to
taken together is estimated at about Rs. 40,000 domestic and agriculture consumers. However,
crore in 2009-10. It is likely rise to even higher the level of subsidy provided in most of the
levels because of the increasing share of short cases is not adequate to make good the losses
term purchase of power at high prices. Unless of the utilities. Poor regulatory practices lead to
urgent steps are taken to overcome this state regulators being unwilling to fix
problem it is difficult to imagine healthy reasonable tariff rates often reflecting pressure
expansion in the power sector. from state governments. This suggests that the
independence of the regulatory system is not
15.75. Performance varies considerably what it should be. Table 15.13 gives the gap
across States. Among the major States, Andhra between the average cost of supply and
Pradesh, Tamil Nadu and Himachal Pradesh average tariff for 20 major States. State-wise
have reported AT&C losses below 20 per cent. details are given at Annexure – 15.4
However, in States like Orissa, Madhya
Pradesh, Assam, Haryana, Rajasthan, Uttar 15.78. Application of Geographical Information
Pradesh, Uttarakhand, Karnataka and System (GIS) and effective Management
Maharashtra AT&C losses are reported to be Information System (MIS) can help in carrying
over 30 per cent. The State utilities are out load demand/supply analysis and demand
incurring huge losses due to the unsustainable forecasting; improve network planning and
level of technical and commercial losses execution skills; identifying the high AT&C loss
caused by pilferage and in efficiencies in level areas and improved billing and revenue
metering, billing and collection of revenue. collection. MIS would facilitate quick decision
making and improve governance of the
distribution sector both in terms of operational
1
While T&D losses are the technical losses incurred in and financial performance. This will lead to
transmission and distribution of electricity to the consumer, improved customer services and overall
AT&C represents aggregate technical & commercial losses
which captures commercial losses (covering theft and
reduction in service costs of the utility.
deficiencies in billing and collection) besides T&D losses and
is a true indicator of total losses in the system. It is calculated
as (1- billing efficiency X collection efficiency)*100
328 Mid-Term Appraisal of the Eleventh Five Year Plan

Table 15.13
Financial Performance of 20 Major States excluding Delhi and Orissa
2005-06 2006-07 2007-08 2008-09 2009-10
Particulars
Actual Actual Actual Provisional RE
Energy Sold (MU) 3,51,200 3,90,232 4,29,709 4,69,427 5,25,140
Energy Sold/ Energy Available ( per
65.40 65.41 72.42 74.72 76.27
cent per cent per cent)
Revenue from sale of electricity
1,01,366 1,17,267 1,32,130 1,54,242 1,77,664
(Rs.crore)
Total Expenditure (Rs. crore) 1,29,140 1,52,933 1,74,021 2,03,097 2,25,282
Commercial Losses without subsidy
20,790 28,356 33,772 40,910 38,420
(Rs.crore)
391.90 404.97 432.65 428.99
Average cost of supply (Paise/Kwh) 367.71
(6.58) (10.13) (17.49) (16.18)
300.51 307.49 328.57 338.32
Average tariff (Paise/Kwh) 288.63
(4.12) (6.77) (14.22) (17.47)
Gap between average cost of supply
79.08 91.40 97.49 104.07 90.68
and average tariff (Paise)
Note: Figures in the bracket represents increase over 2005-06. See State-wise details at Annexure 15.4.

Payment of Subsidy to State Power Utilities Re-structured APDRP in the Eleventh Plan

15.79. Section 65 of the Electricity Act, 2003 15.81. Accelerated Power Development
provides that the State Governments may give Programme (APDP) that was renamed as the
subsidy in consumer tariffs as determined by Accelerated Power Development & Reform
the regulatory commission but would be Programme (APDRP) in 2002-03 was aimed at
required to pay amount of subsidy in advance tackling the problems of the distribution sector
to the power distribution utilities concerned. in a holistic manner. Focus of APDRP was to
However, there is little compliance of these bring down the T&D losses from an
provisions. The subsidy amount in many cases unsustainable level of over 30 per cent, to an
is not being paid in advance. In some States, acceptable level of around 15 per cent, besides
the subsidy committed has either not been paid improving the distribution chain. As the grant
at all or paid partially. Though, the State under APDRP was guaranteed, the states did
Commission generally provide in their not make more efforts to reduce the AT&C
regulations the consequences of non-payment losses to the desirable levels and, hence, the
of advance subsidy in line with Section 65 of APDRP scheme fell short of expectations.
the Act, the provision is generally not
implemented in true spirit in the tariff orders 15.82. Recognising the shortcomings in
passed by them. In some cases, it is also APDRP the programme was re-designed and
adjusted against interest due or against the Restructured-APDRP scheme was
electricity duty thereby affecting the liquidity of approved in July 2008, with the aim of restoring
the discoms. the commercial viability of the distribution sector
by putting in place mechanisms that lead to a
15.80. Under the provision of the Act, the substantial reduction in aggregate technical and
power tariff for all categories of consumers was commercial (AT&C) losses with demonstrable
supposed to be brought within 20 per cent of performance in terms of sustained loss
the average cost of supply. This has not reduction with definite end-points and delivery
happen. A great deal of effort is required for timelines. Projects under the scheme are to be
revision of agriculture tariff and timely payment taken up in two parts. Part ‘A’ focuses on the
of committed subsidy by the States to ensure establishment of reliable and automated
healthy power utilities. systems for sustained collection of accurate
base line data, and the adoption of Information
 Energy 329

Technology in the areas of energy accounting & has recently decided to hand over distribution in
auditing and consumer base services. Part-B Agra and Kanpur to a private company on a
includes projects to strengthen the distribution franchise basis. Other States should try to
system including activities like automation and replicate similar models in their areas. Some of
validation of baseline data systems, project the best practices adopted by various utilities in
evaluations, capacity building and development the distribution sector are given in Box-15.1.
of franchisees in Distribution Sector, consumer
attitude surveys, etc. Projects under Part B Rajiv Gandhi Grameen Vidyutikaran Yojana
would be taken up after the establishment of (RGGVY)
baseline data.
15.86. The level of village electrification varies
considerably across the country. While 85 per
15.83. The total programme size is Rs. 51,577
cent of the villages were electrified at the
crore over a period of five years. It is expected
national level, the level of village electrification
that Rs.10,000 crore would be spent for Part A
in certain States viz: Orissa, Uttar Pradesh,
projects aimed at developing baseline data and
Bihar and Jharkhand has been far below the
about Rs.40,000 crore for Part B projects.
national average. Similarly, the level of
Power Finance Corporation Limited (PFC)
household access to electricity in the above
would be the nodal agency for operationalising
states was far below the national average of 50
the programme. As on 31December 2009,
per cent in 2001. In order to accelerate the rural
Rs.1,094 crore was released under this
electrification and enhance household access,
scheme, out of which Rs.1,068.57 crore is the
Rajiv Gandhi Grameen Vidyutikaran Yojana
loan to PFC to disburse to utilities and Rs. 25
(RGGVY), a scheme for expanding Rural
crore is grant to PFC as rolling advance against
Electricity Infrastructure was launched by the
fee to the nodal agency. The PFC in turn has
Government in March, 2005. The scheme
released Rs. 692 crore to various States.
provides 90 per cent capital subsidy for the
projects from the Central Government and the
15.84. The restructured APDRP has just
balance 10 per cent of the project cost would be
begun and most of the States have yet to
contributed by States through own
complete Part ‘A’. Since losses can reduce only
resources/loan from financial institution. Rs.
after investment in distribution begins, one will
5,000 crore outlay was provided for the last two
have to watch out in the remaining part of the
years of the Tenth Plan. The Government of
Plan for losses to go down.
India approved the continuation of RGGVY in
the Eleventh Plan in order to meet the goal of
Private Sector in Distribution
providing access to electricity to all households,
electrification of about 1.15 lakh un-electrified
15.85. Utilities wishing to involve the private
villages and electricity connections to 2.34 crore
sector efforts in reducing distribution losses
BPL households by 2009.
may either go for privatisation of certain areas,
or resort to franchise arrangement for services
15.87. A total amount of Rs. 28,000 crore for
such as metering, billing and revenue
capital subsidy has been approved for the
collection. Some of the major cities, where
Eleventh Plan period. Rural Electrification
distribution has been privatised are Kolkata,
Corporation (REC) is the nodal agency for the
Mumbai, Delhi, Greater Noida (UP),
scheme. The cumulative status (Tenth and
Ahmedabad, Surat and Orissa. T&D losses in
Eleventh Plans) of implementation of RGGVY
some of the cities managed by private
as on 1 September 2009 is given in Table
companies are noticeably lower than the
15.14.
publicly managed utilities. Reported loss levels
in these cities in 2008 are: CESC Kolkata 14.3
15.88. Out of 5,93,732 villages (as per
per cent; AEC, Ahmedabad 11 per cent; NDPL,
Census,2001), 4,39,800 villages (74 per cent)
Delhi 18.5 per cent, CESC, Noida 8.0 per cent
were electrified upto 31 March 2005. With the
(only distribution losses). Initial results of the
electrification of 64,331 villages under RGGVY,
franchising process in difficult areas like
the total villages electrified are 5,04,131 (85 per
Bhiwandi in Maharashtra are encouraging. UP
cent) as on 1 September 2009. It is to be noted
330 Mid-Term Appraisal of the Eleventh Five Year Plan

that a village is deemed electrified when 10 per electrified under the sanctioned RGGVY
cent of the households have electricity. The projects. Similarly, for providing electricity
year-wise targets and achievements are given connections to BPL households, Ministry is
in Table 15.15 focusing on 12 States namely Andhra Pradesh,
Assam, Bihar, Jharkhand, Orissa, Chhattisgarh,
15.89. The Ministry of Power is now focusing Gujarat, Madhya Pradesh, Maharashtra,
on electrification of villages in the four States of Rajasthan, Tamil Nadu and West Bengal, which
Assam, Bihar, Jharkhand and Orissa, which contain about 90 per cent of balance BPL
have 81 per cent villages remain to be connections under RGGVY.

BOX-15.1
State Name of the Theme Best Practice Key Description and benefits
utility
Business Strategy
Delhi North Delhi Revenue SAMBANDH This is an IT based application designed to
Power Limited Management and (Solution for All provide a comprehensive and centralised
(NDPL) Monitoring Modules in record of the billing and revenue recovery
Billing System from various consumer segments. It
At North Delhi enables the NDPL to assess the
Power Limited) performance of the company, Zone-wise,
district-wise and at the overall company
level.
Andhra Southern Customer Consumer This tool is used to monitor the metering,
Pradesh Power Information Analysis Tool billing and collection. The reports generate
Distribution Management and (CAT) include abnormal consumption, non
Company Analysis functional/ abnormal units, inaccurate
Limited billing, non collection of dues, revenue
(SPDCL) leakages due to unbilled, inaccurate
declaration of tariff categories, multiple
connections, under declared load details
etc. that help management urgent action on
critical issues
Functional Performance

Maharashtra Torrent Power Distribution Urban Bhiwandi is a part of Thane District in

AEC Limited Management Distribution Mumbai with a total consumer base of 1.4
(Franchisee) Franchisee – lakh consumers and a geographical area
Bhiwandi of 721 square kms. The consumer base in
Experience Bhiwandi largely comprises power looms.
The area was known for high distribution
losses, poor collections and poor state of
infrastructure. It has approx. Rs. 800 Cr
pending arrears to the utility.
Torrent Power took over this area in
December 2006 and has made a
significant impact in terms of improving
collections and reducing losses in this
area.
Assam Three Distribution Single Point The scheme termed as the SPPS, under
distribution Management Power Supply which rural consumers are provided with
companies in (Franchisee) (SPPS) Scheme quality supply and quality services through
Assam rural distribution franchisees operating on
behalf of the three distribution companies.
The scheme led to improvement in
revenue collection and management,
 Energy 331

BOX-15.1
State Name of the Theme Best Practice Key Description and benefits
utility
reduction of administrative overheads, and
regularisation of unauthorised
connections.
Karnataka Bangalore Rural Load RLM using The usage of irrigation pumping loads is
Electricity Management Programmable controlled by using Programmable Logic
Supply (RLM) Logic Controllers (PLC). PLC is used for
Company Controllers alternate switching in or out IP loads as
Limited (PLC) per demand schedule. The consumers on
distribution transformers were split up into
industrial and rural irrigation category to
facilitate continuous 3-phase power supply
to non-IP loads.
Karnataka Bangalore Energy Audit Energy Audit at DTRs are treated as separate profit
Electricity Distribution centre. Some of the benefits of the
Supply Transformer scheme were: Leakage identification;
Company Level Focused action plan for loss reduction;
Limited Scientific and reliable loss estimation;
Metered consumption increased.
Uttar Pradesh Noida Power GIS GIS System NPCL formulated an end-to-end GIS
Company Implementation solution for analysing and optimising the
Limited power distribution network Apart from
developing typical facility management
applications, an innovative application to
detect power pilferage via GIS was
developed and deployed to detect network
as well as commercial losses (power
thefts), a common problem in India and
some Asian countries. The implementation
of GIS at NPCL provided substantial
business benefits to NPCL.
Gujarat Gujarat Inventory Integrated GEB developed a comprehensive plan to
Electricity Management Inventory solve the inventory related problems
Board Management including codification of all items and
System computerisation of all records. The
measures resulted host of benefits to the
Board. Based on the success of the
programme launched in 13 locations, it
was extended to other areas as well.
Maharashtra Maharashtra Procurement e-Tendering MSETCL implemented process of e-
State tendering that involved automation of
Electricity steps involved in the tendering process.
Distribution The system involved electronic
Company preparation and exchange of tender
Limited documents and includes inviting, receiving
and opening of offers from suppliers.
Customer Service

Andhra Central Power Consumer Billing Spot Billing Spot billing is one alternative to reduce
Pradesh Distribution Process billing and collection cycle time. The spot
Company billing process helps in integrating various
Limited activities being handled by several people
at multiple locations into a single window
332 Mid-Term Appraisal of the Eleventh Five Year Plan

BOX-15.1
State Name of the Theme Best Practice Key Description and benefits
utility
operation. Initially introduced only in
selected pockets of Hyderabad and
Secunderabad, it was later extended to
the complete towns of Hyderabad,
Secunderabad and Rangareddy.
Delhi North Delhi Web Portal for Sugam – Web- NDPL makes available its billing database
Power Limited hosting hosting of to its consumers through internet. For this
Consumer Details Customer effort it was presented with “SUGAM”
Records Award by Delhi Government for
transparency in its billing database.

Table 15.14

Status of Implementation of RGGVY

Subsidy No. of Free
No. of Villages to be
No. of Cost of Released Connections to be
Electrified (Nos.)
Projects Projects (upto March, Provided (in lakhs)
Sanctioned (Rs. crore) 2009)
Target Achieved Target Achieved
(Rs. crore)
567 26,256.64 13,913.45 1,18,499 64,331 246.06 68.97
Table 15.15
Yearwise Targets and Achievements under RGGVY
Year Un-Electrified Villages (No.) BPL Households (lakh)
10th Plan Target Achmt per cent Achmt Target Achmt per cent Achmt
2005-06 10,000 9,819 98.2 per cent 3 0.17 5. per cent
2006-07 40,000 28,706 71. per cent 40 6.55 16.4 per cent
Total 50,000 38,525 77.1 cent per cent 43 6.72 15.6 per cent
11th Plan
2007-08 10,500 9,301 88.6 per cent 40 16.21 40. per cent
2008-09 19,000 12,056 63.5 per cent 50 30.85 61.7 per cent
2009-10
17,500 4,449 25.4 per cent 47 15.18 32.3 per cent
(as on 1.9.2009)
Cumulative
97,000 64,331 66.3 per cent 180 68.96 38.3 per cent per cent per cent
(as on 1.9.2009)

15.90. While progress on village electrification uncovered habitations and secondly, providing
has been satisfactory, there is clearly a very power to BPL households. Programme
slow progress in providing connections to BPL Evaluation Organisation (PEO), Planning
households (38.3 per cent). A number of Commission has planned a comprehensive
habitations in the villages however remain evaluation of the scheme and expects that this
uncovered. There is a need to reassess the would be completed by December, 2010.
programme in consultation with the States on Impact of RGGVY on village and household
two counts: Firstly, access to power in electrification is given in Box-15.2.
 Energy 333

BOX- 15.2
IMPACT OF RGGVY
• RGGVY was launched in March 2005 with the aim to provide access to electricity to all households, electrification of
about 1.15 lakh un-electrified villages and electricity connections to 2.34 crore BPL households by 2009. The scheme
provides 90 per cent capital subsidy for the projects. RGGVY was approved for continuation in the Eleventh Plan.
• Under Phase-I of the proposed target, 65,140 (56 per cent of the proposed target) un-electrified villages have been
electrified and intensification of 90,726 (26 per cent) villages has been achieved. Similarly, 83.25 lakh (21 per cent)
households have also been provided connections out of which 72.69 lakh (31 per cent) BPL households have been
provided with free connections. This has resulted 4.16 crore rural people with access to electricity.
• It is important that household electrified under the scheme should also get energised at the earliest so as to avoid de-
electrification of infrastructure created under the scheme.
• Non-availability of adequate sub-transmission system in States like Bihar, Jharkhand and Orissa would delay the
implementation of the scheme.

Status of Implementation of Open Access open access would be available to all the
consumers who require supply of electricity with
15.91. A robust trading system is very the maximum power to be made available at
important for a free and fair competitive any time exceeds 1 MW.
electricity market operation. Though most of the
supplies of electricity are under long term 15.93. Effective implementation of open
contracts, electricity is also traded on a short access is crucial for opening up consumer
term basis. The volume of such trading has choice as well as encouraging a healthy trading
increased substantially and trades are occurring function operational in the country. This is also
at very high prices. The Unscheduled expected to facilitate (i) desired market signal
Interchanges (UI) mechanism, meant to ensure for investment; (ii) inducting improved service
grid discipline, is being used by many state from the existing utilities; and (iii) enabling
power utilities as a trading platform and this is consumers to get power from any source of
one of the reasons for trading at high rates. their choice.
Trading of power at high rates has a distortion
effect since state utilities are paying very high 15.94. In order to make open access
prices for such purchased power and not operational, one of the first requirements is for
reflecting this in the tariff charged to the appropriate Commission to issue relevant
consumers. This will lead to large financial regulations and specify related charges such as
losses which will have negative consequences cross subsidy surcharge, wheeling charge and
on the sector. This problem needs to be tackled transmission charge. The CERC has issued
by state governments on a priority basis. detailed regulations for open access and 23
Ideally, surplus power available with merchant SERCs too have issued relevant regulations.
plants should be sold to large consumers via Most of these SERCs, also notified charges
open access. However, the open access relevant to open access.
provision in the Electricity Act has not been
effectively operationalised. 15.95. While these regulations have been
issued, actual transmission of power through
15.92. The Electricity Act (2003) mandates that this mode to individual consumers has been
non-discriminatory open access for inter-State negligible. One way of incentivising open
as well as intra-State transmission and access would be for the Central Government to
distribution networks be provided by the support the process by allocating 25 per cent of
Utilities. In the case of distribution utilities, Open discretionary power from Central sector
Access was to be introduced through generating projects which is available with
regulations, in a phased manner by the State government exclusively for open access. This
Electricity Regulatory Commission (SERC)s proportion should be raised to 50 per cent
and the Act mandated that by January, 2009 gradually. A Committee which was formed to
334 Mid-Term Appraisal of the Eleventh Five Year Plan

consider and operationalise Open Access (PAT) mechanism which will assign energy
under Member (Energy) was formed which has efficiency improvement targets to the country’s
finalised its recommendations. Subsequently, a most energy intensive industrial units, with the
further set of measures are being planned. provision for allowing them to retain any energy
There is need to implement these efficiency improvements in excess of their
recommendations early. target in the form of Energy Savings
Certificates, called ESCerts. Units will also be
National Mission on Enhanced Energy allowed to use purchase ESCerts to meet their
Efficiency (NMEEE) targets.

15.96. NMEEE is an initiative proposed to 15.100. Other Mission initiatives include

address national problems of inefficient energy expanded use of the carbon market to help
use. It is one of eight Missions created by achieve market transformation towards more
India's National Action Plan for Climate Change energy efficient equipment and appliances, and
and falls within the ambit of the Energy the creation of funds to help channel investment
Conservation Act, 2001. The Prime Minister’s into energy efficiency projects.
Council on Climate Change has approved “in
principle” the National Mission on Enhanced 15.101. Another major goal of the Mission is the
Energy Efficiency. The Mission will enable promotion of Energy Service Company (ESCO)
about Rs. 75,000 crore worth transactions in that would upgrade energy efficiency in
energy efficiency. In doing so, it will, by 2015, buildings, municipalities and agricultural
plans to save about five per cent of the pumpsets. Through this business model,
country’s annual energy consumption. ESCOs invest in energy efficiency investments
and are paid over several years from the
15.97. The initiative outlines several actions resulting energy savings.
needed, including:
Financial Performance
• Perform Achieve and Trade
15.102. The Eleventh Plan projected outlay for
• Market Transformation for Energy Efficiency
the power sector is Rs. 5,72,648 crore,
• Financing of Energy Efficiency representing 15.71 per cent of the total public
sector outlay. Table 15.16 given below
• Power Sector Technology Strategy
indicates the progress on Plan expenditure
• Strengthening of State Designated (Centre and States). It may be seen that
Agencies whereas the Tenth Plan realisation of Plan
expenditure was only 67 per cent of the
• Strengthening of Bureau of Energy approved allocation the percentage is likely to
Efficiency increase to 91 per cent in the Eleventh Plan.
• Awareness Programmes
WAY FORWARD:
15.98. The above strategy also includes
specific energy consumption decreasing in 15.103. The Mid Term Appraisal points to a
large energy consuming industries as well as a number of areas where policy initiatives or mid-
system for companies to trade energy savings course corrections are needed in the Electricity
certificates. Sector.

15.99. The initiatives taken in reducing the Generation

energy intensity of our growth will also reduce
the carbon intensity of our growth. This will (i) It is clear that achieving a quantum jump
have a beneficial impact on our emissions in capacity addition in the remainder plan
trajectory. The most innovative and challenging period is going to be a major challenge.
new initiative to be introduced under the Presently, the monitoring is done at the
Mission is the “Perform, Achieve and Trade” level of CEA. The Power Project
 Energy 335

Monitoring Panel (PPMP) with the (vii) One hundred sites should be identified
Ministry of Power should be used for for environmental clearances and
Table 15.16
Financial Performance of Power Sector
(Rs. crore)
Total
Sl.
Year Central State at Current
No
Prices
1 10th Plan approved 1,77,050.6 93,225.7 2,70,276.4
2 10th Plan realization 91,242.0 90,209.5 1,81,451.6
3 11th Plan projected outlay 3,47,263.4 2,25,384.7 5,72,648.0
2007-08 Actual/RE
4 29,701.0 28,484.8 58,185.8
5 2008-09 Actual/RE 39,817.5 33,413.9 73,231.5
6 Likely achievement in first two years 69,518.6 61,898.7 1,31,417.3
7 2009-10 Approved/Estimated 57,878.7 36,755.3* 94,634.1
Likely investment for remaining two
8 2,11,311.7# 84,915.6* 2,96,227.3
years of the 11th Plan period
Anticipated investment during the 11th
9 3,38,709 1,83,569.6 5,22,278.6
Plan
10 ( per cent) Utilization 97.54 per cent 81.45 per cent 91.20 per cent
# As forecast by the concerned Ministries/Departments.
* Assumes a 10 per cent growth in nominal terms (for the remaining three years) over the approved level 2008-
09.
periodic review of the programme on acquisition of land initiated to make these
Zone-wise basis for quick removal of ready for future power projects to reduce
bottlenecks. time taken in pre- project activities.
(ii) The Web-based MIS used by NTPC for
Transmission:
its Dadri Plant should be used for
monitoring project implementation
(i) The project for the evacuation of north
programme of all new plants.
east power should be immediately
(iii) Indigenous manufacturing capacity for processed by Ministry of Power. Land for
super critical unit suppliers, both in public laying the high voltage transmission lines
and private sectors and should be in the chicken neck area should be
incentivised. The bulk order system immediately acquired.
envisaged should be implemented in a
(ii) Establishment of gas-insulated sub-
time bound manner.
stations should be promoted to bring
(iv) Policy measures need to be initiated to down the pressure on land acquisition.
encourage setting up of open cycle gas
(iii) Transmission of power requirements
based plants for meeting peak demand.
should be reassessed in view of open
Differentiated tariff for peak and off-peak
access requirements.
supply will encourage the investors to
build such plants. (iv) Private investments in transmission
projects should be actively promoted.
(v) Considering the uncertainty of availability
of adequate gas for Twelfth Plan projects,
Distribution:
policy measures need to be taken to
encourage LNG based power plants.
(i) The distribution sector requires a robust
(vi) Training of skilled personnel should be and reliable MIS to over come existing
promoted through the adopt “One ITI per information and capability deficiencies.
Plant” Distribution Utilities that have taken
proactive measures to measurability,
 336 Mid-Term Appraisal of the Eleventh Five Year Plan

accountability and governance have been obligations should be enforced and

significantly better than others in terms of utilities should not be allowed the
financial and operational performance. discretion of cutting off customers to sell
in the power market.
(ii) The Planning Commission will institute an
independent study of the balance sheet
Power Reforms:
situation of the public sector of the
discom/ SBEs to ascertain their real
(i) Trading of power at very high rates has
financial situation as an input in to the
a distortion effect and threatens to
twelfth plan.
jeopardise the financial viability of the
(iii) The distribution sector requires distribution companies. Urgent steps
substantial improvements in business are needed to bring the practice under
planning and forecasting to manage its appropriate discipline.
finances and operations better. This
(ii) Open Access facility to consumers is
would require facilitating MYT
presently ineffective due to reluctance
frameworks, as mandated by the
of state utilities. The recommendations
Electricity Act, 2003 in the States.
of the Open Access Task Force
(iv) The distribution sector needs to urgently Committee should be implemented. In
enhance power procurement and portfolio particular, Load Despatch Centres
optimisation skills. Much of the present should be made independent, and
cost problems are on account of poor Open Access promoted by providing
power procurement planning and contract one-fourth of unallocated CPSUs power
management to incentivise States. In case of all new
CPSU plants, it should be increased to
(v) The distribution sector needs to improve
50 per cent.
its network forecasting, planning and
execution skills on an accelerated pace. (iii) Differential peak power tariff rates
Networks need to be strengthened to should be notified to restrict demand at
ensure that power distribution capabilities peak hours.
are adequate and efficient. Studies
(iv) Energy audit of power utilities using IT.
demonstrate that the present levels of
technical losses in the networks are (v) Free Power to farmers needs metering
unacceptably high in some of the large & upfront subsidy by States. There
states. should be Implementation of the
programme for separation of feeders in
(vi) Customer service and management
rural areas as in Gujarat, Rajasthan,
methods need to be improved
Haryana and Andhra Pradesh.
substantially for greater consumer
satisfaction and overall reduction in
PETROLEUM & NATURAL GAS SECTOR
service costs. This would also facilitate in
implementing cost reflective tariffs and
15.104. The central feature of the petroleum
timely payments from consumers.
and natural gas sector is that domestic
(vii) Adequate emphasis needs to be placed availability of oil resources is limited and rapid
on quality and monitoring of the economic growth means that demand will rise
Restructured APDRP program rapidly. India’s import dependence has
interventions and outputs. therefore been rising and is currently 78 per
cent for oil. This is bound to increase in the
(viii) There should be greater focus on the
future unless there is some unexpected
rights of the customer. There are
domestic oil discovery. Such high import
documented cases of the distribution
dependence inevitably raises concerns about
utilities switching off supplies to their own
energy security. It also raises concerns about
customers to sell power at profit in the
the volatility of oil prices. Domestic policy must
short term power market sales. Supply
be formulated to reflect these concerns.
 Energy 337

15.105. Currently, the share of natural gas in • Infrastructure development

the energy basket is only 12 per cent which is
quite low compared with the global average of • Strategic crude oil storage
24 per cent and efforts needs to be made to • Development of product pipelines
increase this share progressively to 20 per cent.
Large discoveries of natural gas resources in • Marketing and distribution facilities
KG basin and creation of LNG import capacities • Development of natural gas pipelines
in the country have been helpful in increasing
the share of natural gas in energy basket Production and Imports
permitting replacement of liquid fuels by natural
gas in transport, power, fertiliser, 15.107. Achievement of oil production against
petrochemicals, refineries, households and the Eleventh Plan target is expected to be 91
many other fuel intensive sectors. per cent for ONGC and 95 per cent for Oil India.
There would be an overall shortfall of about 10
Thrust Areas in Eleventh Plan per cent in crude oil production mainly due to
delayed implementation of Cairn India’s oil field
15.106. The policy issues that needed to be project in Rajasthan, delays in execution of
addressed and identified as such in the other projects. The natural gas production is
Eleventh Plan are oil & gas security, pricing of likely to be 4.5 per cent lower than the target
petroleum products, pricing of domestically because of delay in completion of KG basin gas
produced natural gas and its allocation, discovery by Reliance. Corrective measures for
ensuring competition and open access in the oil production need to be taken to enhance the
pipeline transportation & distribution grid and production by ONGC and OIL to meet the
conservation of petroleum products & natural targets. While the gas production targets during
gas. Some of the specific areas for action in the the balance period of the Eleventh Plan could
petroleum sector are as follows. be enhanced by RIL to cover the shortfall, a
matching transportation infrastructure would be
• Attaining Energy Security through: necessary. However, the crude oil and natural
gas production in the Eleventh Plan is likely to
• Enhanced exploration and production of be higher by 11.2 per cent and 53 per cent
domestic oil & gas sources respectively over the Tenth Plan production. An
• Acquisition of equity oil & gas abroad overview of the physical performance of
petroleum and natural gas sector is given in the
• Development of Alternative Fuels – Table 15.17.
CBM, Gas Hydrates, Underground Coal
Gasification, Ethanol for Blending with Exploration Efforts – New Exploration
petrol and bio-diesel Licensing Policy
• Developing gas/LNG import
15.108. There has been a sharp rise in
infrastructure to meet the growing
exploration activity after the launch of the New
demand
Exploration Licensing Policy (NELP) in 1997-98.
• Reforms in Pricing & Rationalisation of Only 50 per cent of the total sedimentary area
Taxes has been explored out of total area of 3.14 million
sq. km. in 26 sedimentary basins including deep
• Full price competition at refinery gate water, area of 1.0 million sq. km. Expansion of
and retail level aligning fuel prices with domestic resources is being done through
global trends. award of NELP blocks to discover oil and gas
• Phasing out subsidies on domestic LPG reserves. So far, 203 blocks have been
and PDS kerosene awarded and 70 blocks were offered under the
NELP 8th Round. Currently our reserve
• Unified State Taxes & Removal of Tax replacement ratio is 1.3, which is higher than
Anomalies the current production levels of ONGC and OIL.
• Natural gas prices to market parity
338 Mid-Term Appraisal of the Eleventh Five Year Plan

Table 15.17

Physical Performance of Petroleum & Natural Gas Sector

11th Projected Total

Sl. Actual Actual
Item Plan Anticipated in
No. 2007-08 2008-09 2009-10 2010-11 2011-12
Target 11th Plan
Crude Oil
1 206.73 34.13 33.51 35.95 40.40 42.88 186.86
Production (MMT)
2 ONGC 140.06 25.94 25.37 25.76 25.43 26.58 129.08
3 OIL 18.99 3.10 3.47 3.57 3.65 4.3 18.09
4 PVT. JVC 47.71 5.08 4.67 6.62 11.32 12.00 39.69
5 Gas Prod. (BCM) 255.76 32.39 32.85 50.24 60.02 68.02 243.52
6 ONGC 112.39 22.33 22.49 22.29 21.48 25.16 113.76
7 OIL 16.43 2.34 2.27 2.51 2.62 3.56 13.30
8 PVT. JVC 126.45 7.72 8.09 25.43 35.92 39.30 116.46
Refining Capacity
9 240.96 148.97 177.97 210.97 225.87 255.83 255.83
(MMT)

The trend is likely to remain same during the implementation of IOR/EOR programmes the
rest of the Eleventh Plan period. ultimate oil recoveries could be achieved up to
40 to 45 per cent and more could be achieved
15.109. The production from the KG basin D-6 depending on the reservoir characteristics in
field has already started and many other blocks different basins.
are under appraisal and development phase.
The Budget 2009-10 provided for tax holidays 15.111. Drilling of horizontal wells, well
for the blocks offered under 8th round award. stimulation technologies would continue to be
While this is a positive step, the allottees of the key to improved recoveries of oil & gas.
previous rounds are also demanding similar New products and technologies would be
benefits. required to be developed for not only ensuring
drilling of healthy wells but also for future
15.110. Improvement in oil recovery is one of interventions for corrective actions (work-over)
the major areas in which efforts are being made to enhance the recovery of oil from various
by both ONGC and Oil India limited as these existing producing fields.
companies are producing oil and gas for the
last 30-40 year from a number of major oil fields 15.112. The accretion of reserves during the
which are now on a decline. This requires first two years of the Plan by ONGC is 182.23
understanding of the sub-surface (Reservoir and 284.81 MMTOE representing 114 per cent
Characterisation). The decline in production is and 178 per cent achievements of the Annual
being arrested by several Improved Oil Plan targets. ONGC has made 25 new
Recovery (IOR)/Enhanced Oil Recovery (EOR) discoveries during the first two years of the
programs. Number of water injection schemes, Plan. Reserve accretion target by OIL has been
gas lift and air injection programs have been achieved to the extent of 47 MMTOE (89 per
taken up by ONGC and OIL to maintain the cent) during the first two years of the Plan
production levels and arrest the declines in period.
production. At the current level the recovery
factor of oil from various reservoirs’ is estimated
at 30-32 per cent. However, with the continued
 Energy 339

Consumption of Petroleum Products annum (MMTPA), reflecting about 36 per cent

realisation of the Eleventh Plan target in the first
15.113. The consumption of petroleum products 2 years and 4 months of the Eleventh plan
as per the Eleventh plan was estimated to period. This includes Reliance’s second refinery
reach 131.8 mt (Base Case) & 141.8 mt (Upper (export oriented unit) at Jamnagar with a
case) by the terminal year of the Eleventh Plan capacity of 29 million tonnes which has started
against the consumption of 120.74 mt in 2006-07. operations from December 2008.
However, the consumption of petroleum products
has seen a growth of 6.7 per cent and 3.5 per cent 15.115. Currently three grass root refineries in
during the year 2007-08 and 2008-09 respectively JV at Bhatinda refinery of 9 MMTPA, Bina 6
and has surpassed the consumption level projected MMTPA and Paradip 15 MMTPA with an
during the first two years of Eleventh plan period. aggregate refining capacity of 30 mt are under
The growth in demand of petroleum products is construction. These refineries are being
expected to be 3.5 per cent during the year 2009- constructed with the state-of-the-art
10 as per the estimates of Petroleum Planning & technologies to process any quality of crude
Analysis Cell (PPAC). The decline in demand of and yield maximum distillates at benchmark
liquid fuels is largely due to the fact that large efficiencies. Besides this, some refineries are
quantities of liquid fuels like naphtha, FO/LSHS implementing expansion of the existing
have been replaced by the natural gas. The Table capacities at Panipat, Mangalore and Koyali at
15.18 below gives the estimates for Eleventh plan Vadodara. The refining capacity targets of
and actual consumption levels. The Industry 255.83 MMTPA are expected to be achieved by
imported 121.67 MMTPA and 128.15 MMTPA of the end of Eleventh Plan.
crude oil during 2007-08 and 2008-09, while the
product exports were 40.77 MMTPA & 36.93 Financial Performance
MMTPA respectively during the same period.
15.116. The total public sector outlay for the
Refining Capacity Buildup petroleum and natural gas sector is
Rs.2,29,278.72 crores for the Eleventh Plan
15.114. The total refining capacity in the country period. As against this, the revised total outlay
at the end of the Tenth Plan was 148.97 mmt proposed is Rs.2,69,461.28 crores, after
and projected to be in 255.83 mmt by 2011-12. accounting for mid-course adjustments in
The current refining capacity is 182.09 mmt per planned projects proposed to be taken up

Table 15.18
Consumption of Petroleum Products (MMTPA)
Case 2007-08 2008-09 2009-10 2010-11 2011-12
Base 116.1 119.10 122.00 127.0 131.8
Upper 117.6 122.00 127.80 136.6 141.8
Actual/ Anticipated
128.94 133.40 138.11** 145.02* 152.2*
Consumption
Net Imports 103.33 109.51 111.50 114.50 120.00
* Assumed 5 per cent growth for 2010-11 and 2011-12 over the consumption level of 2009-10
** Provisional
Table 15.19
Eleventh Plan Outlay/Expenditure for Petroleum and Natural Gas Sector
(Rs. Crore)
Total Exp. th
per cent 11 Plan Outlay
Activities 11th Plan Outlay (upto August
Exp. now Proposed
2009)
Exploration & Production 1,50,932.49 81,071.56 53.71 1,75,263.82
Refinery & Marketing 62,582.10 18,502.37 29.60 78,321.09
Petrochemical 15,321.00 9,014.91 58.82 15,678.37
Engineering 236.00 37.07 7.12 198.00
Total 2,29,071.59 1,08,625.91 47.38 2,69,461.28
340 Mid-Term Appraisal of the Eleventh Five Year Plan

during the Plan. The revised outlay is 17.5 per Ministry, currently overseas allocation and
cent higher than the approved outlay. The exploitation of oil & gas reserves and
actual expenditure during the first two years and enforces profit sharing with exploration &
4 months is Rs. 1,08,625.91 crores which is production companies. It is essential for the
47.38 per cent of the Plan approved Outlay. The Directorate General of Hydrocarbons to be
activity-wise and company-wise outlay and strengthened and made independent of the
expenditure during the first two and a quarter Ministry.
years of the Eleventh Plan is given in the Table
(iii) Petroleum & Natural Gas Regulatory Board
15.19.
(PNGRB) created by the Government in
2007 to regulate the downstream
15.117. It may be observed that there has been
operations has initiated activities on grant of
an increase in anticipated investment in E&P
authorization for natural gas pipeline, city
activities aggregating to Rs. 1,75,263.82 crores,
gas distribution systems etc. However, it is
as against the Eleventh Plan outlay of
yet to be authorized to create a full scale
Rs.1,50,932.49 crores (16 per cent increase).
competition for supply of petroleum
The increase is mainly due to drilling and other
products in domestic market, as the
operational costs for maintaining the production
petroleum product prices are still controlled
of oil and gas. The Refinery and Marketing
by Government and are yet to be notified to
Sector also expects an increase in outlays by
be handled by PNGRB.
29.6 per cent due to increase in refinery and
other pipelines infrastructure project costs.
Pricing Reforms of Oil Products
15.118. The total plan outlay is funded from the
15.120. Currently, the Prices of four sensitive
internal and extra budgetary resources of the oil
products, viz., petrol, diesel and PDS kerosene
PSUs. The GBS is limited to Rs. 285 crores for
and domestic LPG are controlled by the
setting-up of the Rajiv Gandhi Institute of
government and continue to be regulated. As a
Petroleum Technology (RGIPT) and so far Rs.
result, prices paid to the refineries for these
50.00 crores have been provided during 2008-
products are significantly below world market
09 and 2009-10.
prices. The discrepancy is made up by
deliberate “under-recovery” by the upstream
Regulatory Regime
crude oil producers as well as the refineries,
and by support from the government in the form
15.119. The Integrated Energy Policy approved
of cash and bonds. Recognising that the
by the Government in December, 2008 has
system was not viable the Ministry of Petroleum
made the following recommendations on
& Natural Gas constituted a High Level
strengthening the regulatory system in oil and
Committee under the Chairmanship of Dr. Kirit
gas sector.
Parikh to examine the pricing policy and to
recommend a transparent system of subsidies.
(i) To ensure effective competition in the oil
The committee submitted its report on 2nd
and gas sector, it is important to establish
February 2010 and has given recommendations
independent oversight of both upstream
to bring petroleum product prices specially
and downstream activities. The role of the
petrol and diesel at market price parity. The
regulator in a competitive market is not to
committee has observed that the present
fix prices but to ensure open access to
system of price control has resulted in major
common infrastructure and to regulate user
imbalances in the consumption pattern of
charges for such infrastructure such as gas
petroleum products in the country, and has put
pipelines, port facilities etc. The regulator
undue stress on the finances of the PSU oil
should also ensure that markets such as for
marketing companies as well as of the
city gas distribution are not cornered to
government. It has also led to the withdrawal of
prevent competition.
private sector oil marketing companies from the
(ii) On the upstream side, Directorate General market. This has also affected the competition
Hydrocarbons (DGH), an arm of the
 Energy 341

of the petroleum product marketing by oil 15.126. The higher excise duty on petrol
marketing companies in the country. compared to diesel encourages use of diesel
cars. While greater fuel efficiency of a diesel
15.121. Persisting with a system of petroleum vehicle should not be penalised, a way needs to
pricing that is not aligned with world prices is be found to collect the same level of tax that
fundamentally unviable for a commodity which petrol car users pay from those who use a
is 78 per cent imported. There is a clear need to diesel vehicle for passenger transport. An
ensure that prices of petroleum products are additional excise duty should be levied on
based on market price parity, and subsidies are diesel car owners.
given to BPL families only.
15.127. A transparent and effective distribution
Oil Subsidies and Under-Recoveries system for PDS kerosene and domestic LPG
can be ensured through UID/Smartcards
15.122. The total under-recoveries and subsidy framework.
provided for the petroleum sector during first
two years of Eleventh Plan period is as given in 15.128. There is disparity in per capita
Table 15.20: allocation of PDS kerosene amongst States, as
also decline in the percentage of households
Table 15.20 using kerosene. PDS kerosene allocation
Under-recoveries on Petroleum Products across states should be rationalised to bring
(Rs Crores) down the all-India allocation by at least 20 per
2007-08 2008-09 2009-10
cent. Further reduction in PDS kerosene
1. Under Recovery 77,123 1,03,292 46,163 allocation can be done on the basis of progress
(a) Borne by 25,708 32,000 14,520 of rural electrification, LPG and piped gas
Upstream 35,290 71,292 12,000 availability.
(b) Oil Bonds/
Cash subsidy to 15.129. The price of PDS kerosene needs to be
PSUs
increased by at least Rs.6 per litre. The price of
2. Fiscal Subsidy 2,640.60 2,688.42 2,770
3. Assistance for 28.27 22 22
PDS kerosene needs to be raised every year in
Far Flung Areas step with the growth in per capita agricultural
4. Gap 19,643 GDP at nominal price.
Total 80,012.38 1,06,011.9 48,955
15.130. For calculation of the under-recoveries
Recommendations made by Kirit Parikh incurred by the Oil Marketing Companies
Committee (OMCs) on sale of PDS kerosene and domestic
LPG, the methodology based on import parity
15.123. Several recommendations have been pricing may be continued so long as the country
made by the Kirit Parikh Committee on freeing remains a net importer of kerosene and LPG.
the petroleum product prices to align them with
market price parity. 15.131. The OMCs marketing PDS kerosene
and domestic LPG should be compensated fully
15.124. Petrol is largely an item of final for their under-recoveries based on this
consumption. An analysis of the trend of petrol mechanism. A market-determined pricing
consumption by the automobile owners reveals system for petrol and diesel can be sustained in
that increase in prices of petrol can be borne by the long run by providing level playing field and
motorised vehicle owners. promoting competition among all players, public
and private, in the oil and gas sector. Adequate
15.125. The impact of the retail price of diesel regulatory oversight is critical to ensure
on various groups of consumers does not find effective competition.
any compelling reason to subsidise them.
Diesel prices should therefore be adjusted to 15.132. The recommendations made by the Kirit
market parity. Under-recoveries in both petrol Parikh committee will have the following
and diesel should be nil. implications on under-recoveries.
342 Mid-Term Appraisal of the Eleventh Five Year Plan

• Under-recoveries due to petrol and diesel will development of marginal fields and continuation
be nil. of Improved Oil Recovery (IOR) and Enhanced
Oil Recovery (EOR) schemes. Besides 203
• Kerosene allocation will be reduced by 20 NELP blocks awarded under seven rounds of
percent and periodically revised downwards. bidding, CBM blocks have also been awarded
• The reduction in under-recovery would be Rs. under four CBM rounds of bidding. The
5390 crore if PDS kerosene price is increased production from some of the CBM blocks has
by Rs 6 per litre. already started and likely to pick up during
Eleventh Plan. An estimate of 38 Million
• Raising LPG price by Rs. 100 per cylinder to Standard Cubic Meters per Day (MMSCMD) of
reduce under-recovery by Rs.7580 crore. peak production has been estimated by
MOP&NG from CBM blocks.
15.133. If product prices at the 2009-10
international parity are applied, the total Acquisition of Oil & Gas Assets Overseas
reduction in the under-recovery will be Rs.
30,451 crore. The current estimate of 2009-10 15.137. ONGC Videsh Limited (OVL) holds 40
under-recoveries is around Rs. 45,571 crore. assets overseas in 16 countries and produces
Thus the under-recoveries will come down by about eight MMTPA of oil and gas. The
67 per cent to Rs.15120 crore which should be exploration blocks being developed by OVL
quite manageable. would further add to the production of oil & gas.

Un-utilised Infrastructure of Private 15.138. At present, OVL, the front runner in this
Companies regard has presence in 16 countries viz, Sudan,
Syria, Vietnam, Myanmar, Brazil, Iraq, Cuba,
15.134. The private oil companies have Congo, Libya, Russia, Colombia, Venezuela,
developed a large marketing infrastructure Egypt, Iran and Nigeria and has 40 projects in
throughout the country and had achieved a hand. Other PSUs, such as IOCL, OIL, and
market share of about 20 to 22 per cent as long BPCL & HPCL have also acquired some E & P
as the product prices for MS & diesel in the assets abroad in recent past. OVL has utilised
country were close to the import parity. 49.89 per cent of its Eleventh plan outlays of Rs
Subsequently, in 2007, when the import parity 45,334 crores upto June 2009.
price for petroleum products became higher
than the Government notified price, the 15.139. OVL is likely to achieve the Eleventh
marketing operations for sale of petroleum Plan target of 30.045 MMTPA for oil production
products were closed down by these private & 9.278 BCM of gas production for the entire
companies. Currently, the marketing operations Plan period. The year-wise targets and
of these companies are idling as they do not achievements of O+OEG produced by OVL
form the part of subsidy sharing mechanism during first two years and four months is given
which applies only to the PSU marketing in Table 15.21:
companies.
Table 15.21
15.135. A policy to ensure effective use of this Oil & Oil Equivalent Gas Produced Abroad by
infrastructure needs to be evolved. OVL (In MMTOE)
Year Target Achievement
Policies for Security, Investment 2007-08 7.988 8.802
15.136. Enhanced Exploration and Development 2008-09 8.65 8.776
of oil and gas blocks through New Exploration 2009-10 8.48 8.140*
Licensing Policy (NELP) is a continuous *Achievement for 2009-10 (RE).
process. The Eleventh Plan envisages bringing
more and more acreage under exploration Developing Nation-wide Gas Grid
specially those in the frontier areas/basins,
adoption of state-of-the-art E&P technology, 15.140. There is an urgency to develop the
faster development of discovered reserves, and country-wide gas pipeline transportation
 Energy 343

infrastructure for making gas available in major (vii) Enhancing efforts to acquire overseas oil
parts of the country. In 2008, Ministry of and gas assets, sourcing of natural gas
Petroleum & Natural Gas has authorised Gail through LNG imports and pipelines.
India Ltd. to lay six major pipelines covering
(viii) Strengthening the regulators role in
5,500 km. gas grid in southern and eastern part
upstream and downstream oil and gas
of the country. Besides this, the private players
sector.
were also authorised to lay about 2,600 km.
pipeline network in the southern region mainly NEW AND RENEWABLE ENERGY SECTOR
on the east coast. As the gas availability in the
country is likely to increase due to the Introduction
production coming from the new discoveries,
there is an urgency to develop these gas 15.142. As per a detailed exercise carried out in
pipelines network by the end of Eleventh Plan. consultation with the Planning Commission in
the beginning of the Eleventh Plan the Ministry
WAY FORWARD of New and Renewable Energy (MNRE) has
grouped the various programmes of the Ministry
15.141. The Petroleum & Natural Gas sector under six major programmes on the basis of the
needs following immediate policy initiatives and objectives of the programmes. They are as
the infrastructure development measures to follows:
make the sector globally competitive.
(i) Grid-Interactive Renewable Power;
(i) Decontrol the price of petroleum products
(ii) Off-Grid/Distributed Renewable Power;
and progressively bring prices of all
petroleum products at market price parity. (iii) Renewable Energy for Rural
Applications;
(ii) Subsidies on LPG and kerosene should
be for targetted groups and should be need (iv) Renewable Energy for Urban, Industrial
based. and Commercial Applications ;
(iii) There is an urgency to provide unified tax (v) Research, Design and Development
on petroleum products as well as natural and
gas. The more rational approach would to
(vi) Supporting Programmes.
be to put both petroleum products and
natural gas under declared goods status so
The Thrust Areas Identified for the Eleventh
that the price of natural gas and petroleum
Plan
products in all parts of the country is
uniform.
15.143. The following were the thrust areas in
(iv) The proposed major gas pipelines in renewable energy identified in the Eleventh
Southern, Eastern and northern region Plan.
needs to be completed during Eleventh
plan facilitating completion of National grid. • Meeting basic energy needs in the rural
areas through locally available renewable
(v) Efforts to enhance exploration of Oil,
energy resources like biomass, solar, small
specifically the natural gas, under NELP be
hydro and wind projects.
intensified and bidding for CBM and
underground coal Gasification projects • Identifying remote areas where power
should be further explored. Fiscal supply from the conventional grid will be
incentives similar to exploration of oil need prohibitively expensive and providing off-
to be extended to all forms of natural gas grid supply from renewables for these areas
exploration & exploitation. on a priority basis.
(vi) Develop full potential of coal bed methane, • Clarifying the framework for supply of power
shale gas, underground coal gas, gas from renewable energy resources to main
hydrates, bio-fuels to reduce the import grid by providing regulatory certainty on
dependence of hydrocarbons.
344 Mid-Term Appraisal of the Eleventh Five Year Plan

tariff, off-take agreements, and directly 15.146. The government intends to make use of
contracted sale to bulk users. clean Technologies and Financial resources on
a large scale as soon the mechanism for
• Maximising the benefits from renewable
transfer of the same from developed countries
energy investments by promoting a bidding
are finalised and adopted by the Parties under
process for available subsidies.
the UNFCCC.
• Optimising energy plantations by raising
plants on degraded forest and community 15.147. This should result in a revenue stream
land. whereby repayments can be made. In this
context, it is necessary for a fundamental re-
• Conducting a comprehensive review of examination of the approach to the renewable
programme objectives, achievements to energy sector to derive maximum benefits
date, and efficacious use of funds by all resulting out of the CDM initiatives. All
concerned. renewable energy initiatives are environment-
friendly and thus become eligible under CDM
Climate Change Concerns funding.
15.144. Renewable Energy Sources – solar, Generation Targets and Achievements –
wind, small hydro and bio-power – have an Analysis of Shortfalls
important role to play in supplementing 15.148. In terms of physical achievement grid-
conventional power generation and meeting interactive electricity generation, capacity of
basic energy needs, especially in the rural and 5,526 MW (up to 31 January 2010) has been
remote areas. The distributed nature of achieved against the Eleventh Plan target of
renewables can provide many socio-economic 11,829 MW which is 46.7 per cent of the target.
benefits. The Integrated Energy Policy This means that the major proportion of the
approved by the Government of India assesses target i.e. 53.3 per cent is to be achieved in the
that the contribution of renewable energy remaining two years of the Eleventh Plan.
sources in the energy mix would be 5 per cent – Programme-wise details are given below in
6 per cent by 2032. Table 15.22 :
15.145. With the issue of climate change Table 15.22
gaining momentum, the prospects for adoption Progress of Renewable Energy Programme
of renewable energy have become more (in MW)
favourable. The National Action Plan on climate Anticipated
Achievement
Change has also one mission dedicated to the Eleventh (as on 31
st Achievement
Programme (at the end
promotion of solar energy. Some renewable Plan Target January, of Eleventh
energy projects viz. Hydro, wind, solar, and 2010)
Plan)
biomass based projects have mitigated their Wind
10,500 3,857 9,000
technology and /or financial risks by using the Power
Small
clean development mechanism. The Hydro
1,400 620 1,000
Government is trying to push the Programme of Bio Power 1,700 1,026 1,700
Activities (PoA) under CDM. The first PoA of Waste-to-
400 20 79
distribution of CFL Lamps on a large scale by Power
Bureau of Energy Efficiency (BEE) has already Solar
- 3 50
been registered by the CDM Executive Board Power
Total 14,000 5,526 11,829
and is operational. India, along with other
developing countries, have been pushing for
reforms in CDM under the United Nations 15.149. In respect of wind power, the shortfall in
Framework convention on Climate Change achievement in 2008-09 has been due to
(UNFCCC) so that the process could be regulatory issues in few States local problems
simplified and transaction costs lowered. such as in the State of Maharashtra preventing
the wind power development in the potential
areas and non-conducive investment
environment due to global economic recession.
 Energy 345

The delay in introducing Generation Based sustainable manner. Ministrty of New and
Incentive (GBI) was also a constraint. The delay Renewable Energy (MNRE) is taking necessary
in announcing an appropriate tariff to absorb steps to incentivize the same. Further, in order
wind power by the utilities also acted as a to resolve the issues being faced by the
constraint in many States. cooperative sector sugar mills, MNRE is taking
necessary steps to support implementation of
15.150. In the case of small hydro power cogeneration projects in cooperative sector
development, the main constraint was the sugar mills through BOOT model.
process of allotment of sites by the States. The
statutory clearances including land acquisition, 1. Solar power projects face the constraint
forest clearance, irrigation clearance etc., take of high initial cost as well as the high
sufficient time. Non-availability of adequate cost of electricity from such projects.
evacuation facilities (transmission lines) is also These projects are being promoted
a constraint in developing small hydro power in under the National Solar Mission
North Eastern States. recently approved by the Government.

BOX 15.3

NATIONAL SOLAR MISSION

Salient Features:
(i) To create an enabling policy framework for deployment of 20,000 MW solar power by 2022 of which
1,000 MW would come by 2013.
(ii) To promote off-grid applications starting with 200 MW by 2013 and reaching 1,000 MW by 2017 and
2,000 MW by 2020-22.
(iii) To deploy 20 million solar lights by 2022.
(iv) To install 20 million square meters of solar collector area for solar thermal applications by 2022.
(v) To establish a National Centre of Excellence for promoting R & D activities under Solar Mission.
(vi) To set up an “Industry Advisory Council” under Solar Mission to advise on matters relating to
industrial development, technology transfer/absorption/ joint ventures, incentives and investments.
(vii) To set up a “Research Advisory Council” to advise on Vision, Technology related matters and
Coordination with other S&T Ministries/Organisations.
(viii) To provide fiscal incentives by way of 5 per cent of basic custom duty for manufacture of solar
equipment and components and ‘nil’ CVD on goods for solar energy based power projects.
(ix) To put in place a suitable policy and regulatory framework, including modification of the existing tariff
policy to require the State Electricity regulators to fix a percentage of energy purchase from solar
power under Renewable Purchase Obligation (RPO).
(x) Total financial outlay for the Phase-1 of the National Solar Mission is approved at Rs. 4,337 Crore.

15.151. Studies initiated by the Ministry on Policy Interventions:

performance of grid connected biomass
projects have indicated that suitable fuel supply (a) MNRE programmes have been supported
linkages for biomass collection and through a number of financial, fiscal,
management needs to be encouraged for physical and institutional initiatives for a
ensuring continuous availability of biomass in a little over two and half decades. Lack of
346 Mid-Term Appraisal of the Eleventh Five Year Plan

involvement of the end beneficiaries, projects. This would ensure providing a

developing viable integrated resource plans level playing field to promote competition.
for end users, engaging utilities and service
providers into the MNRE programmes and (f) Village Energy Security initiative of MNES
integrating multiple efforts both inside through biomass should be dovetailed to
MNRE and in other Ministries have all the ongoing programmes under Ministry of
prevented the mainstreaming of the non- Power. The Ministry of Power has
conventional energy programmes. developed a Decentralised Distributed
Generation (DDG) initiative under RGGVY
(b) The success of the programme to electrify programme that includes both grid based
remote villages entirely depends upon the and stand alone solutions. The two efforts
creation of a “revenue model” which would need to be better coordinated.
ensure the sustenance of the programme in
the long run. The role of grass root (g) A national policy on rural electrification and
institutions like PRIs, NGOs and stand alone systems (including renewable
Cooperatives etc. is very important from the and non-conventional energy systems) is
point of view of revenue collection, local already in place. Ministry of Power and
management, operation & maintenance etc. MNRE need to work together to frame
As of now the such institutional appropriate policies governing the issues
mechanisms are absent in many remote mentioned above.
areas and concerted efforts are needed to
set up such institutions. Energy and Emission Intensity of GDP

(c) The financial review of the first three years 15.152. The demand for commercial energy
of the Eleventh Plan reveals that the has been growing with the growth of the
budgetary allocations are not a constraint economy. However, India’s energy intensity has
since actual expenditure is always well been declining and is lower than most
below the provisions made. Crafting a emerging economies including China.
programme as proposed under paragraphs
(a) and (b) above, creating a demand pull, 15.153. The indicator of energy-GDP elasticity
developing an efficient institutional captures both the structure of the economy as
framework, improving coordination within well as its energy efficiency. The consumption
the various programmes of MNRE, the of commercial energy increased from 95.81
various Central Ministries, the Centre and mtoe in 1980-81 to 434.41 mtoe in 2008-09.
the States, are the overriding needs for The GDP growth rate over this period was
achieving desired objectives/goals. around 6.3 percent yielding a commercial
energy-GDP elasticity of 0.91.
(d) Evaluation of renewable energy
programmes is necessary to improve their 15.154. India’s emissions intensity of GDP2 was
effectiveness. A change in the incentive 1.785 kg per $ in 1990. Over the 15 year period
regime is necessary such that it targets the from 1990 to 2005, India’s economy grew at an
real barriers to renewables and links them annual average rate of 6.1 per cent and
to the desired deliverables from such emissions intensity declined by 17.6 per cent,
programmes. Progress needs to be made from 1.785 in 1990 to 1.471 in 2005. The
on regulatory regimes that ensure implicit elasticity of emissions with respect to
necessary support to the renewable energy GDP in this period was 0.83. Using this
sector in terms of tariff fixation, wheeling, elasticity, and projecting forward for the next 15
banking and third party sale of power from years with a faster GDP growth of 8 per cent
renewable sources.
2
Emissions intensity is taken as kg of CO2 per dollar of GDP.
(e) The subsidy pattern needs to be uniform Emissions data is taken from IEA. GDP is taken at constant
both for Government as well as Private 1990 prices converted to US$ at 1990 exchange rates from
UN Stats database.
Source: IRADe analysis
 Energy 347

per annum, we can expect a further decline in chairmanship of Dr. Kirit Parikh to develop a
the emissions intensity to 1.216 i.e. a reduction road map of low carbon strategies for inclusive
of 17.3 per cent by 2020 over the 2005 base. growth. The recommendations of the Expert
Group will feed into the Twelfth Plan to
15.155. However, with concerted efforts, we formulate a growth strategy that is sustainable,
can do even better. The Planning Commission ensures energy security and is consistent with
has constituted an Expert Group under the the National Action Plan on Climate Change.
348 Mid-Term Appraisal of the Eleventh Five Year Plan

Annexure 15.1
COMPANY-WISE COAL PRODUCTION - MTA of Eleventh Plan (Coal Sector)
(in million tonnes)
X PLAN Eleventh Plan
Sl. 2006-07 2007-08 2008-09 2009-10 2011-12
Company
No. Original MTA
Target Actual Target Actual Target Actual Target RE
Target Revised
1 ECL 31.00 30.47 33.41 24.06 31.00 28.14 31.00 31.00 46.00 36.00
2 BCCL 33.00 24.21 25.20 25.22 26.50 25.51 28.00 28.00 30.00 30.00
3 CCL 43.30 41.32 44.00 44.15 47.00 43.24 48.00 48.00 78.00 54.00
4 NCL 52.00 52.16 58.00 59.62 61.25 63.65 66.50 66.50 70.00 76.00
5 WCL 37.50 43.21 42.40 43.51 43.05 44.70 45.00 45.00 45.00 47.00
6 SECL 84.55 88.50 91.50 93.79 96.00 101.15 106.00 106.00 111.00 117.00
7 MCL 68.00 80.00 88.00 88.01 99.00 96.34 109.30 109.30 137.00 125.10
8 NEC 0.65 1.05 2.00 1.10 1.20 1.01 1.20 1.20 3.50 1.40
Sub-Total
350.00 360.92 384.51 379.46 405.00 403.74 435.00 435.00 520.50 486.50
CIL:
Category:
Existing 25.50
34.80 32.90 31.80 30.90
Mine
Completed
230.94 207.27 229.17 196.82 185.97
projects 200.80
Ongoing
44.59 95.95 129.53 155.58 180.58 165.31
Projects
New
79.11 0.23 9.76 28.45 26.70 169.22
Projects
Total: 350.00 361.92 379.46 445.00 435.00 520.50
9 SCCL 36.13 37.71 38.04 40.60 38.30 44.54 44.50 44.50 40.80 47.00
Category:
Existing 1.20
3.87 1.89 1.74 1.86 1.60 2.17 1.79 1.90 1.41
Mine
Completed
19.03 32.86 25.70 33.93 25.48 28.74 24.88 25.23 17.66 24.33
projects
Ongoing
9.22 2.96 10.34 4.81 10.07 13.63 17.80 17.87 13.62 20.78
Project
New
4.01 0.00 0.25 0.00 1.15 0.00 0.03 0.00 8.33 0.49
Projects
Total: 36.13 37.71 38.04 40.60 38.30 44.54 44.50 44.50 40.80 47.00
Others
10 1.77 1.92 2.10 2.02 1.83 1.92 1.92 2.52 2.52
Pub. Sec#
Pvt -
11 7.04 6.50 7.21 6.50 7.28 7.30 7.30 6.50 6.50
TISCO
11 Captive 17.60 23.93 21.16 36.22 29.85 37.11 37.11 104.08 80.89
12 Meghalaya 5.79 5.60 6.54 5.60 5.69 6.50 6.50 5.60 6.50
Total 32.20 37.95 37.01 50.34 44.66 52.83 52.83 118.70 96.41
18.87
All India Total: 405.00 430.83 460.50 457.08 493.64 492.94 532.33 532.33 680.00 629.91

# Includes/IISCO,DVC,JSMDCL,JKML and APMDTCL

Production from Other Pvt Sec., TISCO and Meghalaya for the year 2011-12 is
taken as actual production from these sectors in 2008-09.
 Energy 349

Annexure 15.2

SECTORAL COAL DEMAND / OFFTAKE - MTA of Eleventh Plan (Coal Sector)

(in Million Tonnes)
Sl.
Sector 2006-07 2007-08 2008-09 2009-10 2011-12
No.
Original MTA
Actual Actual Actual BE RE
Target Revised
I Coking Coal
Steel/Coke Oven
17.37 17.99 15.95 20.29 17.26 23.78 26.02
(Indigenous)
2 Import 17.88 22.03 21.08 27.26 44.72 42.48
Sub-Total Coking: 35.17 40.02 37.03 20.29 44.52 68.50 68.50
II Non Coking
(i) Power Utilities
3 307.84 332.09 361.10 397.54 401.00 483.00 473.00
(Gen.Req.)
4 Cement 19.74 19.32 19.39 25.59 25.59 31.90 33.35
5 Steel DR 17.47 20.92 19.71 44.33 28.80 28.96 28.96
7 Fertilizers 2.96 2.94 2.48 3.00 58.07 61.58 61.58
8 LTC/Soft Coke* 51.57 56.42 71.97 55.07
9 Cokeries/Coke oven (NLW)*
10 BRK & Others
11 Captive Power 28.13 31.58 33.18 57.66 40.00 57.06 47.00
12 Colly. Consumption 0.99 0.93 0.86 0.86 - 0.85
Sub Total Non Coking: 428.70 464.20 508.69 584.05 553.46 662.50 644.74
Grand Total (I + II): 463.87 504.22 545.72 604.34 597.98 731.00 713.24
Note 1. (i) *Included in
BRK & Others
Import of Coking Coal 17.88 22.03 21.08 27.26 40.85 42.48
Import of Non-coking coal: 25.20 27.77 35.00 38.39 10.15 40.85
Power Sector 9.66 10.15 17.21
Cement Sector 4.96 6.08 5.73
Others 10.58 11.53 12.06
Sub-Total Non-Coking
25.20 27.77 35.00 38.39 10.15 40.85
Coal
Total Imports: 43.08 49.80 56.08 72.01 65.65 51.00 83.33

SECTORAL PHYSICAL
TARGETS
Coal Based Power gen.
431.13 453.01 480.36 511.00 515.00 690.00 630.00
(BU)
Cement Production (MT) 155.66 168.31 181.61 185.00 251.23 262.61
Hot Metal Production (MT) 36.76 36.78 42.86 42.86 70.30 70.21
350 Mid-Term Appraisal of the Eleventh Five Year Plan

Annexure 15.3

Company-wise/Scheme-wise Outlay/Expenditure - MTA of Eleventh Plan (Coal Sector)

(Rs. Crore)
Cumulative
Revised
Exp
X Plan XI Plan XI Plan Outlay as
2007-08 2008-09 Cumulative as per
Sl. Company/ 2002-07 Approved MTA per cent
Actual Actual 2009-10 Expendt. cent of
No. Scheme Actual Outlay Revised of
Exp Exp 2007-10 Approved.
Exp. 2007-12 Outlay Approved
XI Plan
Outlay
Outlay

BE Ant.
I. CIL
1 ECL 609.53 1,849.68 161.79 191.88 210.00 250.00 603.67 32.64 1,503.67 81.29
2 BCCL 677.54 1,250.00 133.82 221.16 230.00 300.00 654.98 52.40 1,424.98 114.00
3 CCL 1,290.66 1,990.00 297.84 334.84 420.00 350.00 982.68 49.38 1,832.68 92.09
4 NCL 1,399.53 4,000.78 404.71 266.52 730.00 600.00 1,271.23 31.77 3,071.23 76.77
5 WCL 955.13 1,374.50 176.05 277.92 230.00 350.00 803.97 58.49 1,623.97 118.15
6 SECL 1,389.29 4,600.11 560.42 855.98 730.00 700.00 2,116.40 46.01 3,316.40 72.09
7 MCL 828.46 2,125.00 276.16 321.26 200.00 400.00 997.42 46.94 2,547.42 119.88
8 NEC 9.23 20.00 1.86 3.92 10.00 10.00 15.78 78.90 45.78 228.90
9 Others (CIL/
DCC/IICM/ 48.00 180.00 20.86 33.69 140.00 140.00 194.55 108.08 724.55 402.53
CMPDIL)
Total CIL 7,207.37 17,390.07 2,033.51 2,507.17 2,900.00 3,100.00 7,640.68 43.94 16,090.68 92.53
573.9
II. SCCL 1,450.59 3,340.00 650.44 580.97 633.94 1,858.35 55.63 3,802.07 113.82
7
III. NLC
1 NLC (Mines) 1,251.90 2,826.00 578.54 650.44 524.09 386.40 1,364.99 45.61 2,334.39 77.99

2 NLC (Power) 1,063.32 12,218.00 1,188.17 1,159.10 1,369.75 844.94 3,192.21 26.49 6,140.61 50.96

Total NLC 2,315.22 15,044.00 1,766.71 1,559.15 1,893.84 1,231.94 4,557.20 30.29 8,475.00 56.33
Total (Coal
1,0973.18 35,774.07 4,374.19 4,716.76 5,374.81 4,965.28 14,056.23 39.29 28,367.75 79.30
PSUs)

IV Central
Sector
Schemes

R&D
Programme 47.02 75.35 12.86 10.00 20.00 11.00 33.86 56.88 75.35
(S&T)

Regional
206.19 164.02 34.99 30.00 30.39 30.39 95.38 58.15 305.82
Explo.

Detailed
Drilling- Non 93.85 472.94 40.00 15.00 60.00 60.00 115.00 24.32 523.08
CIL Blocks

EMSE(incl.
51.12 155.34 18.04 10.00 15.00 10.53 38.52 27.67 1,713.75
RCFS/ RFRP)

Conservation&
Safety in coal 211.56 170.67 150.38 132.00 135.00 135.00 417.38 244.55 690.75
Mines

Development
of Transport
61.16 277.63 23.58 0.00 22.00 0.01 23.59 16.42 930.92
Infra. in coal
field area

VRS funded 252.05

through 'DBS
Coal 0.23 0.49 3.31 0.58 1.30
1.22
Controller
 Energy 351

Cumulative
Revised
Exp
X Plan XI Plan XI Plan Outlay as
2007-08 2008-09 Cumulative as per
Sl. Company/ 2002-07 Approved MTA per cent
Actual Actual 2009-10 Expendt. cent of
No. Scheme Actual Outlay Revised of
Exp Exp 2007-10 Approved.
Exp. 2007-12 Outlay Approved
XI Plan
Outlay
Outlay

BE Ant.
Information
8.84
Tech.
NEC 14.30 12.49 12.49 16.13
Component

Total Central
Sector 922.95 1326.01 280.03 197.49 300.00 260.00 737.52 55.62 4225.80
Schemes
Total MOC 11,896.13 37,100.08 4,654.22 4,914.25 5,674.81 5,225.28 14,793.75 39.87 32,593.55
352 Mid-Term Appraisal of the Eleventh Five Year Plan

Annexure 15.4
Details of Financial Performance of Twenty Major States
Commercial Loss w/o Subsidy Cost of Average AT&C losses Agriculture Agri.
subsidy Supply Tariff (Discoms) Consumption Tariff
S.No State 2008-09 2009-10 2008-09 2009-10 2008-09 2009-10 2008-09 2009-10 2008-09 2009-10 2008-09 2009-10 2008-09 2009-10
(Provi) RE (Provi) RE (Provi) RE (Provi) RE (Provi) RE (Provi) RE (Provi) RE
1 Andhra Pradesh 6,354.95 5,639.25 N. A N. A 379.13 355.16 251.31 256.22 18.81 18.04 30.14 31.88 0.19 0.47
2 Assam 43.98 107.81 0.00 0.00 526.47 505.15 491.56 450.76 37.03 33.55 0.72 0.91 4.89 4.98
3 Bihar 1,809.52 2,095.77 720.00 720.00 691.36 684.94 314.29 332.04 43.28 40.53 14.96 14.74 0.64 0.67
4 Gujarat 949.00 875.00 1,100.00 1,100.00 464.25 441.00 417.84 394.65 25.46 23.81 27.30 28.62 1.97 1.82
5 Haryana 4,120.62 5,103.69 2,636.99 2,803.76 556.00 572.28 327.22 344.28 30.13 26.08 38.06 39.00 0.40 0.32
6 Himachal 43.11 127.06 0.00 0.00 421.59 407.06 405.98 381.99 19.55 18.24 0.41 0.40 5.56 3.68
Pradesh
7 Jammu & 1,518.08 1,895.24 0.00 0.00 677.71 789.98 234.45 322.01 70.69 69.09 5.79 5.79 1.51 2.47
Kashmir
8 Karnataka 3,085.31 2,683.08 1,490.35 2,795.00 417.51 420.82 303.30 328.85 25.09 23.61 35.81 34.56 0.82 0.65
9 Kerala 531.75 1,711.24 749.17 1,928.66 456.73 480.45 379.96 326.69 34.98 24.89 1.75 1.72 1.35 0.93
10 Madhya Pradesh 3,440.48 5,122.45 906.34 1,358.64 492.49 529.89 319.56 289.06 45.78 45.36 29.12 29.99 2.06 2.06
11 Maharashtra 1,248.32 750.01 0.00 0.00 450.05 453.24 403.69 420.26 28.75 25.02 21.89 20.45 1.94 2.02
12 Meghalaya -55.79 11.78 11.70 13.68 359.39 483.84 371.02 432.59 35.36 38.93 0.05 0.06 1.60 1.71
13 Punjab 3,894.35 4,767.80 2,601.73 3,144.25 397.73 444.98 267.21 289.80 21.37 20.96 28.65 31.00 0.00 0.00
14 Rajasthan 8,241.10 10,249.53 1,203.33 1,320.41 636.32 680.65 314.68 312.36 32.78 30.53 36.75 37.12 1.33 1.34
15 Tamil Nadu 8,963.55 8,555.38 1,831.61 2,068.55 464.89 459.55 288.75 299.29 19.22 19.06 21.69 18.09 0.00 0.00
16 Uttar Pradesh 6,620.77 5,592.53 1,532.00 1,832.00 457.30 450.67 284.51 313.01 33.30 29.98 17.00 15.44 1.68 1.94
17 West Bengal -217.09 -343.75 0.00 0.00 490.79 434.98 390.85 430.68 31.59 34.44 4.80 5.91 1.69 4.55
18 Jharkhand 1,319.55 1,854.10 1,080.00 1,174.20 672.54 698.56 319.06 285.99 54.41 50.86 1.49 1.24 0.52 0.51
19 Chhattisgarh -699.25 1036.41 52.00 150.10 335.64 409.65 370.66 324.01 37.78 37.92 13.16 15.52 0.38 0.56
20 Uttarakhand 457.88 400.53 0.00 0.00 363.83 391.19 289.78 330.50 30.20 31.06 4.84 4.21 1.17 1.71
Note: The AT&C losses includes transmission loss for States of Assam, Bihar, Himachal Pradesh, Jammu & Kashmir, Kerala, Madhya Pradesh, Meghalaya, Punjab,
Tamilnadu, Jharkhand & Chhattisgarh
Source:-FR Document of SPUs.
     
 

16
Transport
16.1 The Eleventh Plan laid emphasis on completed. The progress towards
development of physical infrastructure including implementation of Prime Minister’s Grameen
transport to support the accelerated growth of Sadak Yojana (PMGSY) has also been
the country’s economy. The thrust in transport satisfactory. In order to improve connectivity in
sector has been on augmenting capacity areas affected by left wing extremism, a new
through technology upgrade and modernisation. scheme was launched which aimed at
The Eleventh Plan also stressed the need for improving the roads in these areas.
improving productivity and efficiency and
fostering the development of various transport 16.4 The Mid-Term Appraisal suggests that it
modes in an integrated manner. In this regard, is necessary to take concerted measures,
improving accessibility to remote and rural including close monitoring of programmes and
areas and enhancing mobility through various projects to come as close as possible to
programmes with enlarged participation of achieving the objectives of the Eleventh Plan.
private sector have been the two other This is also necessary to be able to, and also
important objectives under the Eleventh Plan. set the stage for faster development of this
crucial sector in the Twelfth Plan.
16.2 A number of steps have been taken to
achieve the above objectives, but it will take 16.5 As the economy transitions into a higher
time to see the full effect only because growth phase, it is necessary to move beyond
infrastructure development involves long time setting targets for individual transport sectors to
lags. The aggregate picture emerging from the evolve an integrated view of transport
Mid Term Assessment is that achievements development and policy over a longer term
both physical and financial are better than in the framework. To this end, the Planning
past, but they fall short of targets set for the Commission has established a High Level
Eleventh Plan. Committee on Integrated Transport Policy
under the chairmanship of Dr. Rakesh Mohan.
16.3 The sector as a whole suffered because The recommendations of the committee are
of the slowdown. In case of rail, the average expected to provide key inputs into the
rate of growth of freight in the first three years is formulation of the Twelfth Plan.
likely to be 6.6 per cent which is below the
targeted growth of 8.6 per cent, even though RAILWAYS
the growth in passenger km has been 9.9 per
cent as against the target of 5.9 per cent. In 16.6 The broad objective for the railway
case of both road and ports sector, physical sector must be to augment and improve the
performance is falling short of the targets. quality and safety of services. This requires
Although, NHDP is behind schedule, progress creation of capacity, modernisation of the
so far has been much better than Tenth Plan. In network, rolling stock, maintenance practices,
the Tenth Plan, only 5,448 km could be information system and service delivery.
completed. Against this in the first three years Recognising the financial constraints on
of Eleventh Five Year Plan, 5,900 km would be capacity creation based on Gross Budgetary
354 Mid-Term Appraisal of the Eleventh Five Year Plan 

Support (GBS) and internal resources, the years of Eleventh Plan, which was mainly due
Railways in the Eleventh Five Year Plan to substantial increase in the average leads of
envisaged private sector participation to Non-suburban passenger traffic from 215.5 km
mobilise additional resources and to take in 2006-07 to 229.3 km in 2008-09. Keeping
advantage of the efficiency of private sector. this in view, it is expected that the Railways will
be able to achieve its targets for passenger
Progress in Eleventh Plan traffic of Eleventh Plan.

Financial Performance 16.10 The physical targets for various

capacity indicators during the Eleventh Plan
16.7 The approved outlay for the Railways in and achievements in the first two years and
the Eleventh Plan is Rs. 1,94,263 crore at projections for the third year are detailed in
constant 2006-07 prices of which GBS Annexure-I. The Railways is behind schedule in
accounts for Rs. 44,263 crore (excluding funds achieving targets set for the first two years of
for National Projects) and Internal and Extra- the Plan, in respect of new lines, doubling
Budgetary Resources (IEBR) for Rs.1,50,000 projects, acquisition of wagons & coaches and
crore. Against this, Railways are likely to spend acquisition of Electrical Multiple Unit (EMU)
Rs.128604 crore at constant prices, including coaches. The pace of progress in respect of
Rs. 43658. crore as GBS, during the first four electrification projects have picked up and in
years of Eleventh Plan. In other words, the first this endeavour it is likely to surpass the
four years are expected to achieve about 66 Eleventh Plan target.
per cent of the Eleventh Plan total outlay while
exhausting 98.60 per cent of the approved Initiatives taken by the Railways to improve
GBS of the Eleventh Five Year Plan as a Railways share in freight Traffic and
whole. The Eleventh Plan assessed the Passenger Services
requirement of National Projects as Rs. 12,000
crore. However, only a sum of Rs. 4,435 crore 16.11 A persistent weakness in the Railways’
has been provided in the first three years of the performance has been the steady loss of freight
Plan. The allocation for National Project in the traffic to roads. Railways have taken a number
remaining period would need to be stepped up. of steps during the Eleventh Plan period to
improve its share in freight traffic. This includes
Physical Performance freight marketing of select commodities by third
parties, liberalised wagon investment scheme,
16.8 The average annual growth rate of improved freight incentive policies and time
freight (originating tonnage) in the first three tabled parcel services etc. Other measures
years of the Eleventh Plan is likely to be 6.6 per taken by the Railways include provision of
cent which is below the targeted growth of 8.6 linkages to ports, introduction of more high
per cent. This drop in growth rate of freight speed wagons and refrigerated parcel vans.
traffic is largely due to reduced demand
because of the economic slowdown with the 16.12 Similarly, with a view to provide
GDP growth falling from 9 per cent in 2007-08 improved passenger services in the first two
to 6.7 per cent in 2008-09, impacting both the years of the Plan period, 108 pairs of new
domestic demand and the export traffic. trains, including 17 pairs of “Garib Rath” trains
Considering the trend till now, with the reduced with fares about 25 per cent less than normal
GDP growth scenario for the near future and AC trains were introduced, services of 40 trains
inability of Railways to add capacity, the targets extended and frequency of 28 trains increased.
for originating freight loading and Net Tonne Further, in 2009-10, introduction of 57 pairs of
Kilometre (NTKM) need downward revision. new trains, extension of 27 pairs of trains and
increase in frequency of 13 pairs of trains is
16.9 The growth in passenger km (PKM) has planned. In addition, passenger carrying
been higher than projected. Against targeted capacity in trains was augmented by adding
growth of 6.2 per cent, passenger km volume 1,614 coaches in the first two years of the Plan
has grown by 9.9 per cent during the first three period which has resulted in addition of
 Transport 355 
    

1,23,470 berths. Besides, the Railway Budget 16.15 Railways have recently come out with a
2009-10 has announced a number of initiatives vision 2020 Document. The document covers a
to improve passenger services. The important wide range of issues indicates goals and
among them are: introduction of non-stop train targets and identifies certain priority areas.
service by the name of “Duronto”, introduction There is a need to develop these ideas further
of high capacity air conditioned double decker and identify specific responses to the
coaches, introduction of low priced fast train challenges posed. A start at such quantification
services by the name of “Yuva” for the youth must be made in preparing the Twelfth Plan.
and low income groups and introduction of
“ladies only” EMU train services etc. Augmentation of Capacity

Other Initiatives 16.16 The elasticity of demand with respect to

freight traffic indicate that the GDP growth of 9
16.13 Recognising the criticality of per cent require rail freight movement to
augmenting traffic facilities on the existing increase by 10 per cent. Against this, the
routes, several initiatives have been taken by railway freight has been growing at 7 per cent
the Railways during the Eleventh Plan. per annum, leading to a steady loss of share of
Important among them are: strengthening of freight to roads. This needs to be increased to
High Density Network, augmentation of terminal reduce the cost of transport and avoid
capacity by developing/modernising Freight damaging climatic impact of the road transport.
Terminals, developing private freight terminals This would require augmenting line capacity
and development of modern track friendly which Indian Railway is doing at a much slower
bogies for high axle load wagons, aerodynamic pace compared to Chinese Railways (see Box
profile of high horse power DEMU and MEMU 16.1).
coaches and hybrid coaches with stainless
steel shell of LHB coach and conventional ICF 16.17 Technological upgradation and
bogies with air springs etc. modernisation is one of the areas where
Railways need to pay much more attention.
Major Policy Issues Although modernisation is required in all areas
of railway operations, technological
Long Term Vision improvement of tracks and acquisition of rolling
stock for heavy haul and high speed operations
16.14 A major problem with the development supported by modern signalling and improved
of Railways has been the lack of a clear long maintenance system may command higher
term vision involving explicit quantification of priority. Superior design and use of lighter
the scale of freight and passenger services, it materials in producing Railway wagons not only
should aim at ten years from now and also increases speed but also helps in reducing
foresee the quality of these services in terms of carbon emission by efficient use of energy. The
speed of freight and passenger trains, safety progress in this regard is also slow as
etc. Articulation of such a vision would clearly compared to other successful Railways
bring out a need for massive expansion of both including Chinese Railways (see Box). One of
line capacity and rolling stock, as well as major the reasons for slow modernisation in rolling
technological upgradation to meet the required stock is that the Railways produce much of their
quality standards. A clear statement of long rolling stock internally. Separating production
term objectives would also help to focus on the units from Railways and allowing technology
financing challenges that need to be addressed. major to set up units as the Chinese have done
may bring the much needed modernisation.
356 Mid-Term Appraisal of the Eleventh Five Year Plan 

Box 16.1
Comparative assessment of Indian Railways and Chinese Railways
• In the early 1990s, the Indian Railways was bigger in terms of total route km, as well as route
km/sq.km.
• In the period 1990 - 2007, the Chinese Railways extended its route km by 20,000 km whereas it
was 960 route km in case of Indian Railways.
• Chinese Railways is planning to add about 40, 000 kms in the next 10 years as against the
2500-3000 kms by Indian Railways.
• Chinese Railways have estimated to have invested around $154 billion over the last five years
(2005-2009) in contrast to $ 31.21 billion by the Indian Railways.
• The carrying capacity of Chinese wagons is 80 tonnes in comparison to Indian 55-60 tonnes.
• A tare weight to payload ratio of Chinese wagon is 1:4 in comparison to Indian 1:1.27.
• The passenger fare to freight ratio in China is 1.3:1 in comparison to Indian 0.3:1.
 

16.18 The need for technical upgradation in to the power plants in the North. These
passenger segment is increasingly evident. corridors have been declared as the “Diamond
Globally, trains reaching 240 km per hour are Rail Corridors” Project of Indian Railways. Both
common but the Shatabdi of Indian Railways Western and Eastern corridors would facilitate
has a maximum speed of 150 km per hour, and establishment of industrial corridors alongside .
average is only about 80 km per hour. High The Project is being financed through a
speed rail movement is energy efficient and is debt/equity ratio of 2:1 with most of the debt
an optimal response to climate change coming from multilateral/ bilateral development
considerations. It can compete very effectively agencies like World Bank/ ADB/ JICA. The two
with air transport for distances of 500 kms, DFCs are targeted for completion by 2016-17
emitting between a tenth and a quarter of the and considerable preparatory work has been
carbon emissions of an aero plane on a per done including land acquisition, award of
passenger basis. High speed trains also require consultancies, etc., besides initial construction
much less land than a motorway: a double track contracts on both corridors.
rail line has three times the passenger carrying
capacity of a six lane high way and uses less 16.21 The construction of DFCs is a welcome
than half the land. step and Railways should plan for more such
corridors over the medium term. There is a
16.19 There is a need to initiate planning to need to implement the DFC projects
build up to 2,000 kms. of high speed passenger expeditiously. Implementation issues including
dedicated rail lines in the next ten years. especially those relating to mode of delivery,
funding and pre construction activities including
Dedicated Freight Corridors Project land acquisition need to be resolved at the
earliest. A full scale review of the DFC project,
16.20 The Dedicated Freight Corridors on the including clear establishment of time lines for
Western and the Eastern routes is a strategic different tasks, a time table for tying up
capacity augmentation initiative taken by multinational funding, and a decision on the role
Railways and involves construction of about of PPP should be undertaken urgently.
3,300 kms of dedicated freight lines to
predominantly carry coal and steel on the Rebalancing of Tariffs
Eastern corridor and containers on the Western
corridor. The ports in the Western region 16.22 The traditional approach of subsidising
covering Maharashtra and Gujarat would be ordinary passenger traffic very heavily by
efficiently linked to the Northern hinterland and levying very high charges for AC First Class
similarly on the Eastern side, coal would move and Freight has led to a distortion in fare
 Transport 357 
    

structure. The passenger fare to freight ratio three years it is 31 per cent from GBS and 69
(ratio of tariff per passenger km to cost per per cent from IEBR.
tonne km) in India was 0.3:1 against 1.3:1,
1.5:1 and 1.9:1 in China, Germany and Japan 16.25 The operating ratio of the Railways,
respectively. The unbalanced fare structure has which is the ratio of working expenses
several adverse consequences such as shifting (excluding dividend payment) to traffic earnings,
of freight traffic to less energy efficient and reached 96 per cent in 2001-02, signaling a
climatically more damaging road transport, near crisis situation. Thereafter, it improved to
creating an artificially heavy demand for 75.9 per cent in 2007-08 because of a series of
passenger trains with frequent stops thereby specific initiatives to improve asset utilisation.
reducing the line carrying capacity for longer However,it has deteriorated again to 92.5 per
distance traffic, and preventing trains from cent in 2009-10. It may be noted that the
competing effectively with air travel for premium Chinese Railway has an operating ratio of 72
passengers over shorter distances such as per cent.
300-500 kms. There is an urgent need to
correct this distortion in fare structure by taking 16.26 China is estimated to have invested
suitable action and the Government, if it wishes, around $154 billion over the five years (2005-
should resort to explicit cash subsidies to the 09). If Indian Railways aim to spend in the next
ordinary passengers. Fixation of tariff should years what China spent in the last five years, it
ideally be entrusted to a statutory regulator. would need to spend about Rs. 69, 000 crore
However, pending appointment of Tariff per year which would be 70 per cent higher
Regulator, Railways should think of adopting than the 2009-10 (BE) of Rs. 40,745 crore.
automatic indexation of fares to increase in fuel
costs with an allowance for productivity 16.27 In order to bridge up the gap between
increase. the targeted IEBR and realised IEBR, Railways
must plan for enhanced levels of funding from
Organisational Restructuring multilateral agencies such as World Bank and
ADB and also take initiatives to mobilise
16.23 The present structure of Indian resources by undertaking tariff reforms, building
Railways has evolved on the basis of the in an element of PPP into their plans and
Acworth Committee’s recommendations, calling creating an enabling environment to reduce
for consolidation and nationalisation in 1924. their dependence on government support.
The Indian Railways formulates policy, provides
services and also acts as a regulator. These Public-Private Partnership
three functions need to be separated. Ideally
there should be a distinction between the 16.28 Railways sector being highly capital
Ministry of Railways and the Railways. The intensive, Private Sector Participation has a
former should be responsible for setting policies greater role to play. In view of this, besides
and the latter for providing services. Regulatory expediting the PPP projects relating to rolling
functions should be performed by a separate stock manufacturing units, modernisation of
regulatory body, preferably by setting up an Railway stations, multifunctional complexes,
independent regulatory body. logistics parks, private freight terminal,
Liberalised Wagon Investment Scheme etc.
Resource Mobilisation which are on the cards, Railways should also
explore the possibility of public-private
16.24 Impacted by general economic partnership in running goods trains between
slowdown and implementation of the sixth Pay specified destinations, running tourist trains and
Commission Report, Indian Railways is likely to constructing Dedicated Freight Corridors.
fall short of its targeted internal resource
generation. The Eleventh Plan of the Railway Safety
was to be financed 23 per cent from GBS and
77 per cent from IEBR. However, in the first 16.29 Railways have taken a number of
initiatives during the Eleventh Plan for
358 Mid-Term Appraisal of the Eleventh Five Year Plan 

improving safety in railways. However, much across the country. This objective is proposed
more stress needs to be given on IT driven to be achieved through road development
initiatives and enhanced training to impart programme which includes National Highway
better skills in operation and maintenance of Development Project (NHDP), Pradhan Mantri
assets to avoid accidents. Gram Sadak Yojana (PMGSY), a component of
Bharat Nirman and, Special Accelerated Road
Accounting Reforms Development Programme in North – East
(SARDP-NE) etc.
16.30 The accounting reforms separating five
major segments of railway services (i) fixed
infrastructure, (ii) passenger operations, (iii)
Progress in the Eleventh Plan
freight operations, (iv) sub-urban operation
systems, and (v) other non-core activities which Financial Performance
were initiated during the Tenth Plan is yet to
Central Sector Roads
come up. In view of the criticality of the reform
as it would not only help in generating costing 16.36 An outlay of Rs.1,06,659 crore (GBS
data on commercial lines but also in making Rs.71,830 crore) has been provided for the
them in line with the commercial accounting development of roads in the Eleventh Plan. The
requirements adopted internationally for bulk of this outlay is meant for the development
railways, a firm time line need to be framed to of the National Highways and related
accomplish this task. programmes. An expenditure of Rs.47,274
crore (i.e. 44.32 per cent) is likely to be incurred
Way Ahead in the first three years of the Plan at constant
prices. An outlay of Rs.21,502 crore (at
16.31 There is an urgent need to develop a constant prices) has been provided for Annual
long term plan for modernisation and Plan 2010-11. With this, the likely expenditure
development of Railways keeping in view the in the first four years would be 64.45 per cent
requirement of traffic and need for technology at constant prices.
upgrade and modernisation.
16.37 National Highways Authority of India
16.32 New railway lines taken up for (NHAI) has been responsible for the road
construction must be prioritised keeping in mind development programme taken up during the
the existing overhead and the scarcity of Eleventh Plan under NHDP. It was decided that
resources. all contracts for high-density corridors under
NHDP-III may be awarded on BOT basis, with
16.33 The self financing capacity of the sector traditional construction contracts awarded only
may be improved through (a) undertaking tariff in specified exceptional cases. However,
reforms; (b) improving efficiency and (c) National Highways (NHs) characterised by low
expediting the PPP initiative. density of traffic and passing through far flung,
remote, or strategically important areas would
16.34 A statutory Tariff Regulator may be set be developed primarily through budgetary
up pending which the Railways should resources.
announce the adoption of an automatic
indexation of fares to increase in fuel costs with Private Sector Investment
an allowance for productivity increases.
16.38 A sum of Rs.46,118.99 crore (up to
ROADS October, 2009) has been spent by NHAI on
various phases of NHDP and other projects in
Goals and Objectives for Eleventh Plan
the first half of the Eleventh Plan. This includes
16.35 The main thrust of road development in private sector investment of (up to August,
the Eleventh Plan continues to be on improving 2009) around Rs.18,800 crore, which is well
mobility and accessibility and ensuring a below the plan target of Rs.86,792 crore. Up to
balanced development of the road network March 2010, NHAI has awarded projects for
 Transport 359 
    

implementation through BOT in the Eleventh are given in Table 16.3. The performance
Plan. Details are in Table 16.1 during the first half of Eleventh Five Year Plan
has been far below the targets and there is an
Physical Performance urgent need to accelerate the pace of
implementation in the last two years of the
16.39 Progress in road development consists
Eleventh Plan.
of development of NHDP roads and Non-NHDP
roads.
16.42 Phase-wise progress of NHDP as on 30
September, 2009 is given at Annexure- II and is
National Highways Development Project
briefly discussed below:
(NHDP)
NHDP Phases-I & II - GQ&EW-NS Corridors
16.40 During the Eleventh Plan a massive
programme for development of the national
16.43 NHDP Phase-I & II comprise of the
highways has been taken up for
development of NHs. Four to six lane standards
implementation. The details of this plan are
on – (a) Golden Quadrilateral (GQ) connecting
given in Table 16.2.
four major metropolitan cities which are Dehi-
Mumbai-Chennai-Kolkata-Delhi (b) North-South
16.41 The Physical Targets and achievements
and East-West corridors (NS-EW) connecting
for NHDP sections during 2007-08 and 2008-09
Srinagar to Kanyakumari and Silchar to

Table 16.1
Contract Awarded under BOT (Toll/Annuity) during the 11th Five Year Plan
Year BOT (Toll) BOT (Annuity)
No. of Length (kms) TPC (Rs.crore) No. of Length TPC
Contracts Contracts (kms) (Rs.crore)
2007-08 8 1,108.8 8,057 1 36.2 209
2008-09 7 638.7 8,151
2009-10 (upto 38 3,188.2 31,638 3 171.8 1,775
March, 2010)

Table 16.2
Estimated Cost of NHDP phases
(Amount in Rs. Crore)
Sl.
Phase Name of Project Likely Cost
No.
1 NHDP-I & II Completion of Balance work of GQ and EW-NS corridors 52,694
2 NHDP -III 4-laning of 12,109 km. 80,626
3 NHDP -IV 2-laning with paved shoulders of 20,000 km. of NHs 27,800
4 NHDP -V 6-laning of 6,500 km. of selected stretches of NHs 41,210
5 NHDP -VI Development of 1000 km. of Expressways 16,680
Construction of ring roads, flyovers and bypasses on
6 NHDP-VII 16,680
selected stretches
Total 235,690

Table 16.3
Physical Targets and achievements for NHDP
2007-08 2008-09 2009-10
Category Achv. (upto
Target Achv. Target Achv. Target
March, 2010)
Widening to 4-lanes and
2,885 1,683 3,520 2,203 3,165 2,693
strengthening (kms.)
 
360 Mid-Term Appraisal of the Eleventh Five Year Plan 

Porbandar with a spur from Salem to Cochin (c) 16.49 Under NHDP Phase-IV-A, uptill March,
road connectivity of major ports of the country 2009, 40 bids for Feasibility Studies covering
to National Highways and (d) other National 5228 km. length have been invited out of which,
Highway stretches. 13 bids covering 1670 km. have been awarded
to the consultants.
16.44 Phase I is almost complete while only
10 per cent of total length of Phase-II remains NHDP Phase-V – 6-Laning of High Density
to be awarded. The work on Phase-II will be Corridors
completed by December 2010.
16.50 Six laning of 6,500 km. of existing 4-
NHDP Phase-III – Improving the Capacity of lane NHs. under NHDP Phase-V (on DBFO
Other High Density Corridors basis) was approved in October, 2006. Six
laning of 6,500 km. includes 5,700 km. of GQ
16.45 The Government has approved and 800 km. of other stretches.
development of 12,109 km. of national
highways on BOT basis at an estimated cost of 16.51 Against 6,500 km, a length of 131 km.
Rs.80,626 crore. It has been approved in two has been completed, 899 km. is under
parts i.e. Phase-III A comprising total length of implementation and 5,470 km. is yet to be
4,815 km. estimated to cost Rs.33,069 crore awarded.
and Phase-III B comprising total length of 7,294
km. estimated to cost Rs.47,557 crore. The 16.52 The progress of NHDP-V so far, also
scheduled date of completion of Phase-III is indicates that there may be slippage in
December, 2013. achieving these by target date of December
2012.
16.46 In case of Phase-III A, as on 31 July,
2009 against the total length of 4,815 km., only NHDP Phase-VI – Express Ways
937 km. could be completed. 2,155 km. is
under implementation and 1,723 km. is yet to 16.53 NHDP Phase-VI envisages
be awarded. In case of Phase-III B, so far no development of 1,000 km. fully access
progress has been made. The whole length of controlled expressways under Public
7,294 km is yet to be awarded. Partnership (PPP) model following Design-
Build-Finance-Operate (DBFO) approach. This
16.47 The progress of NHDP-III indicates so includes expressways connecting Vadodara-
far that there may be slip back in achieving the Mumbai, Delhi-Meerut, Bangalore-Chennai and
targets mentioned above. Kolkata-Dhanbad stretches. The Phase-VI of
NHDP has been approved at an estimated cost
NHDP Phase-IV – 2-Laning of Rs.16,680 crore in November, 2006.

16.48 This Phase envisages upgrading of 16.54 The total fund required for this phase is
about 20,000 km. of NHs. to 2-lane with paved Rs.16,680 crore, out of which Rs.9,000 crore is
shoulders under NHDP. This phase has been expected from the private sector and the
approved by the Government in July, 2008. Out balance Rs.7,680 crore funded by the
of the approved length of 20,000 km. which is to Government to bridge the viability gap as well
be implemented in a phased manner in as meet the cost of land acquisition, utility
stretches of 5,000 km. each, the Ministry of shifting, consultancy etc. The entire project is
Road Transport & Highways (MORTH) is targeted to be completed by December, 2015.
implementing the first Phase i.e. NHDP Phase-
IV-A, upgradation/ strengthening of 5,000 km. NHDP Phase-VII – Construction of Ring
of single/intermediate/two lane NHs. to two lane Roads, Flyovers & Bypasses
with paved shoulders on BOT (Toll) and BOT
(Annuity) basis. 16.55 Government has approved construction
of stand alone Ring Roads, Bypasses, Grade
Separators, Flyovers, elevated roads, tunnels,
 Transport 361 
    

road over bridges, underpasses, service roads Members by two who would be from the
etc. on BOT (Toll) mode under NHDP Phase- non-Government sector, one from
VII in December, 2007 at an estimated cost of IITs/IIMs and the other from financial
Rs.16,680 crore. 36 stretches in different States institutions is recommended.
have been proposed to be taken up. The entire • The Authority should have the power to
project is scheduled to be completed by engage, where required, outside experts.
December, 2014. As on 31st July, 2009, a
length of 19 km. was under implementation and Non-NHDP Programme
remaining 681 km. is yet to be awarded.
16.58 Details are given at Annexure-III. The
16.56 The progress of work on various phases statement shows that the achievement in case
of NHDP depicts a discomforting picture. The of widening to four lanes, strengthening of
economic slowdown has had an adverse affect existing weak pavement, widening to two lanes,
on the progress of NHDP. A number of improvement of riding quality programme and
measures are proposed to be taken to expedite construction of missing links has surpassed the
the progress of NHDP. targets. In case of construction of bypasses and
bridges/ROBs, the performance is also quite
16.57 Other important reasons for slow satisfactory.
progress in implementation of NHDP include
long time taken for completion of pre- Special Accelerated Road Development
construction activities and inadequate Programme for North East (SARDP-NE)
implementation capacity of NHAI. In order to
reduce the time period for pre-construction 16.59 The programme is to be implemented in
activities, the Ministry has taken a number of two phases i.e. Phases-A & Phase-B. Phase-A
steps. The progress in this regard needs to be would include improving 6418 km. of roads and
reviewed from time to time so that time period (including 2319km of roads under Arunachal
for pre-construction activity is reduced. To Package) the likely date of completion of
improve the capacity and augment the skills, Phase-A is 2012-13. Phase-B involves two-
the Government took a decision to restructure laning of 3723 km. of roads and it has been
NHAI. The important components of re- approved only for DPR preparation and
structuring of NHAI are as follows: - investment decision is yet to be taken by the
Government.
• Selection of the Chairman by a Search
Committee headed by the Cabinet 16.60 The year-wise details of the projects
Secretary. approved under SARDP-NE Phase-A,
expenditures incurred thereon and the physical
• NHAI should have six full time Members - performance of the programme are as given in
one each for finance, administration, Table 16.4.
public private partnership (PPP), two
Members (Project) and one Member 16.61 Progress is extremely slow, mainly due
(Technical). to inadequate contracting capacity of
implementing agencies.
• Increase in the number of part-time

Table 16.4
Year-wise details of the projects under SARDP-NE Phase-A
 
Allocation Length Approved Approved Cost Expenditure Length completed
Year
(Rs. crore) by HPC(in km) (Rs. in crore) (Rs. in crore) (in km)
2006-07 550 502 1,255 449 -
2007-08 700 299 780 651 150
2008-09 1,000 254 1,194 637 290
2009-10 1,200 94 451 223 -
Total 3,450 1149 3,680 1960 440
362 Mid-Term Appraisal of the Eleventh Five Year Plan 

Special Programme for Development of Setting up Expressway Authority of India

Roads in the Left Wing Extremism (LWE) and formulation of the Master Plan for the
affected areas National Expressway Network

16.62 The Government has approved in 16.65 As envisaged in the Eleventh Five Year
February, 2009 proposals for development of Plan document, the Government is considering
about 1,202 km. of National Highways and a proposal for setting up an Expressway
4,362 km. of state Roads in Left Wing Authority of India (EAI). Consultations with the
Extremism (LWE) affected areas as a special stakeholders are in process of identifying and
project estimated to cost about Rs. 7,300 crore. resolving issues before the framework for the
The project covers 33 districts in eight states EAI is given a concrete shape. Development of
namely in Andhra Pradesh, Bihar, Chhattisgarh, the expressways under the Master Plan will be

Table 16.4
Year-wise details of the projects under SARDP-NE Phase-A
Length
Length
Allocation Approved by Approved Cost Expenditure
Year completed (in
(Rs. crore) HPC (Rs. in crore) (Rs. in crore)
km)
(in km)
2006-07 550 502 1,255 449 -
2007-08 700 299 780 651 150
2008-09 1,000 254 1,194 637 290
2009-10 1,200 94 451 223 -
Total 3,450 1149 3,680 1,960 440

Jharkhand, Madhya Pradesh, Maharashtra, undertaken in Public-Private-Partnership (PPP)

Orissa and Uttar Pradesh. Technical and mode. An Expressways Division has already
financial sanction for all identified National been set up in NHAI.
Highways & State Road Projects would be as
per stipulated procedure for National Highways Pradhan Mantri Gram Sadak Yojana
works. Sanctions have already been issued for (PMGSY)
2891 kms at an estimated cost of Rs. 3261
crores. 16.66 PMGSY was launched on 25December,
2000 as a fully funded Centrally Sponsored
Development of other non-NHDP National Scheme to provide road connectivity in rural
Highways areas of the country. The programme
envisaged connecting all habitations with a
16.63 There are about 20,850 km. lengths of population of more than 1,000 within three
NHs other than those approved for various years and of more than 500 by 2007 (250
phases under NHDP, SARDP-NE etc. These persons and above in respect of hilly, tribal and
NHs suffer from various deficiencies such as desert areas). About 1.67 lakh unconnected
inadequate capacity, insufficient pavement eligible habitations need to be taken up under
thickness, etc. The development of these roads the programme. The programme also provides
is proposed to be taken up through domestic for upgradation of existing through routes with
budgetary resources and multilateral funding. aggregate length of 3.68 kms.

16.64 The Ministry of Road Transport & Bharat Nirman (a subset of PMGSY)
Highways has taken certain initiatives for the
development of National Highways in future. 16.67 The original target set for PMGSY was
These are as follows: - found to be too ambitious. Subsequently,
PMGSY was rephased to achieve time bound
targets of rural connectivity by folding in to
Bharat Nirman programme initiated in 2005-06.
 Transport 363 
    

It aims to provide connectivity to all the 16.70 The State-wise physical progress
habitations with a population of more than 1000 during the first four years of Bharat Nirman is
in the plain areas and habitation with a given at Annexure-IV. The progress towards
population of 500 or more in hilly or tribal areas achievement of targets has varied from State to
in a time bound manner by 2009. Details are in State. The major States having large
Table 16.5. connectivity deficit are Assam, Chhattisgarh,
Orissa, Bihar, Jharkhand, West Bengal, Jammu
Table 16.5 & Kashmir, Tripura and Uttarakhand.
Physical Targets & Achievements
No. of Funding of PMGSY
PMGSY
Habitations
Overall target 1,67,000 16.71 While Phase I of Bharat Nirman would
Achievement up to March, be completed in 2010-11, the requirement of
62,484 funds for completing the work on PMGSY is
2009
Bharat Nirman quite large. It is estimated that the fund
Overall target 54,648 requirement for completing the works would be
Achievement up to March, between Rs.1,30,000 crore and Rs.1,50,000
31,924 crore. The major source of finance i.e. amount
2009
allocated from Central Road Fund financed
16.68 The PMGSY component in Bharat from cess on diesel is substantially committed
Nirman has made substantial progress although to the re-payment liability of loans raised to
completion has been delayed a little. It is now finance rural roads. Thus, there is very little
expected to be completed in 2010-11. While 84 scope for further leverage of future cess till
per cent of habitation would be connected by 2016-17. There is a need to develop work and
the end of 2009-10, the remaining 16 per cent financing plan for development of rural roads
would be linked in 2010-11. Details are in Table which may estimate the road length to be
16.6 constructed, the total requirement of funds,
identify the source of financing and suggesting
16.69 PMGSY has certain very good features measures to reduce the cost of construction.
which contributed to its success in producing
good quality rural roads. A three-tier quality Maintenance of PMGSY Roads
monitoring system at various levels was
established which has been helpful in finding 16.72 The maintenance of rural roads requires
systemic deficiencies and taking appropriate urgent attention. In order to provide adequate
corrective action in execution of projects and in funds for the maintenance of existing rural
maintaining quality of roads constructed. The roads there is need to enhance the self-
inbuilt clause of five years maintenance within financing capacity of the Sector.
the construction contract has helped in
maintenance of the newly created assets. A Implementation Issues
computerised Online Management Monitoring
and Account System is useful in monitoring the 16.73 Strengthening of Institutional
progress of works, both physical and financial. Capacity - States where the coverage of
habitations under Bharat Nirman has been very
Table 16.6 low require a substantial increase in the number
Progress under Bharat Nirman of PIUs. Creation of dedicated PIUs,
Target Achievement up deployment of Central PSUs, outsourcing of
Activity project preparation, engaging independent
(2005-09) to March’09
Habitations (in 31,924 project implementation consultants and
54,648
Nos.) (58) reviewing the existing delegation of powers are
New Connectivity
1,46,185
85,405 some of the steps taken or are being taken by
(Length in km.) (58) various States in order to strengthen
Upgradation (i/c 1,55,019 institutional capacity.
1,94,131
Renewal) (in kms.) (80)
364 Mid-Term Appraisal of the Eleventh Five Year Plan 

16.74 Augmentation of Contracting • In order to implement NHDP expeditiously,

Capacity - With massive step up in the it is necessary that; (a) process of
investment in road construction, constraints in restructuring NHAI, may be completed
contracting capacity have emerged as a major urgently; (b) the projects may be structured
implementation issue necessitating repeated strictly in accordance with specifications
bidding for awarding contracts in certain cases. formulated to meet the traffic demand and
Some of the steps taken to enhance the safety requirements; and (c) time period for
contracting capacities in the States include, pre construction activity may be reduced.
increase in the size of the package, permitting
joint ventures between big and small • The progress in implementation of SARDP
contractors and awarding performance (NE) has been quite slow. Training of
incentives for timely completion of projects. technical personnel, improvement in the
quality of preparation of project report and
16.75 Forest and Environment Clearance - more effective monitoring of the project
It usually takes 12-14 months to obtain forest would help in expeditious implementation of
clearance. States affected have to initiate pro- SARDP (NE).
active upfront action for seeking forest • Build up a network of expressways. For this
clearances as soon as the survey commences purpose, Expressway Authority of India may
for preparation of Detailed Project Reports be set up during the Eleventh Plan.
(DPRs). • There is a need to develop a work financing
plan for developing rural road which may
16.76 Availability of Private Land for Road indicate the road length to be constructed to
Construction - State Governments should achieve the target of PMGSY, requirement
ensure availability of private land required for of funds, identifying the sources of funding
road construction. States experiencing and suggest the measures to reduce the
difficulties on this account must use Gram cost of construction.
Panchayats and local revenue administration to
overcome this constraint. ROAD TRANSPORT

16.77 Law & Order Problems - Left wing 16.79 Road transport plays an important role
extremist activities are affecting the pace of in the movement of goods and passengers in
implementation of PMGSY in some parts of the country mainly because of its accessibility,
Bihar, Chhattisgarh, Orissa and Jharkhand. flexibility, door-to-door service and reliability. Of
These States have to ensure adequate security. late, there has been an unprecedented growth
in vehicular traffic on roads that has led
16.78 The Ministry of Rural Development has Department of Road Transport to accord priority
taken a number of steps to improve the to improving road safety to prevent accidents,
implementation of projects under PMGSY. save precious lives and improve safety of all
These include e-procurement, aimed at road users.
reducing time for processing bids increasing
competitiveness and enhancing transparency, 16.80 During the first three years of the
rationalisation of standards and stakeholders, Eleventh Plan, the Central Road Transport
review of performance of States which are Sector is likely to spend Rs. 372.92 Crore
lagging behind in achieving targets, against the approved outlay of Rs. 1,000 Crore
strengthening maintenance, monitoring etc. at constant price, which in percentage terms
works out to about 37 per cent.
Way Ahead
16.81 In Central Sector, road safety
• There has been a significant shortfall in programmes are implemented through the
achievement of targets particularly in schemes-Road Safety and National Data Base
respect of various phases of NHDP. The Network and Studies. However, to address road
work and financing plan and the safety issues with vigour and zeal, some new
monitorable targets need to be finalised. schemes such as Setting up of the National
 Transport 365 
    

Road Safety and Traffic Management Board expenditure is Rs. 1138.33 crore, which is
and setting up of Inspection & Certification 34.34 per cent.
(I&C) centres in the country are being
introduced during the Eleventh Plan. Physical Performance

16.82 Operation of passenger services by the 16.86 Traffic at the ports has been increasing
State Road Transport Undertakings and at the annual rate of 10-12 per cent in the
regulation of transport services are the recent past. The Eleventh Plan estimated the
important programmes covered under the State traffic to grow at 11.05 per cent per year from
Sector. Recognising the criticality of the role of 649.79 million tonnes in 2006-07 to 1,008.95
public transport in the movement of million tonnes in 2011-12, of which the share of
passengers, it has been proposed to strengthen Major Ports is 708.09 MT (Annexure-V). In the
the public transport system in the country. To first three years the traffic in major ports rose
begin with it is proposed to provide financial from 464 MT (2006-07) to 560.97 MT (2009-10)
assistance for latest technologies such as indicating an additional traffic of about 97 MT,
GPS/GSM based Vehicle Tracking System, which is about 40 per cent of the Plan target. In
computerised reservation system, Automatic 2008-09, it increased by only 2 per cent due to
fare collection system, electronic ticket vending perceptible moderation in the world economic
system, inter-modal fare integration, passenger activity. However during 2009-10, the rate of
information etc. as well as for preparation of growth of traffic has increased to 5.74 per cent.
total mobility plan for entire State. This is bound
to improve productivity and efficiency in the Capacity Augmentation
public transport system of the country.
16.87 The Eleventh Plan envisages that bulk
16.83 There are certain critical issues such as of the expansion in capacity will come from
Motor Vehicle Taxation, Overloading and private investment/captive users through PPPs
Barrier Free movement of Freight and except in cases of operational exigencies. As
Passengers etc. which need to be addressed against the major ports capacity of 504.75 MT
during the remaining part of the Plan. (2006-07), the Eleventh Plan target is 1,016.55
MT (Annexure-VI). Major capacity additions
PORTS were expected in Paradip (55 MT),
Visakhapatnam (52.4 MT), Ennore (51.2 MT),
16.84 The main thrust in the ports sector in Kandla (58 MT) and Mumbai (48 MT). The
Eleventh Plan is on capacity augmentation capacity of major ports as on 31.3.2009 was
mainly through private sector participation, 574.77 MTPA. The capacity addition during the
improvement in productivity, reduction in first two years of the Eleventh Plan was only
provision of dwell time, enhancing dredging about 70 MTPA, which is 13.7 per cent of the
capabilities/operations besides rail-road Eleventh Plan target of capacity addition of
connectivity to hinterland. The Eleventh Plan 511.80 MT. Of this, the capacity addition due to
also envisaged corporatisation of ports and addition of new schemes was 32.90 MT, and
coordinated development of non-major ports. 37.12 MT. due to mechanisation and other
productivity improvement schemes.
Progress under the Eleventh Plan
16.88 During the third year of the Plan,
Financial Performance
capacity of 30 million has been added, raising
16.85 The pace of expenditure in port the total capacity created in the 3 years of the
development has fallen greatly behind plan Eleventh Five Year Plan to 100 MT. Seven
targets. Against the Eleventh Plan outlay of Rs. projects, including four taken up before the
29,889.11 crore, the likely expenditure in the Eleventh Plan, are under implementation on
first four years is Rs. 5026.69 crore, which is PPP mode. In addition, five more capacity
only 16.82 per cent of the Plan outlays. Of the yielding schemes through internal resources
Eleventh Plan GBS allocation of Rs. 3,315 are under implementation. This will create
crore, in the first four years, the likely additional capacity of 77.2 MTPA and 14 MTPA
366 Mid-Term Appraisal of the Eleventh Five Year Plan 

respectively. The Ministry has assessed that 49 from 28.5 per cent (2006-07) to 30 per cent
MT of capacity may also be achieved from (2011-12). There is no comprehensive plan for
mechanisation/efficiency improvement during the development port sector that includes non-
the Plan. A total capacity of 210 MT would be major ports. The States carry out the
created under the Plan when these schemes development of non-major ports at their own
are completed. initiatives. Adequate data on progress of work
related to development of non-major ports is
16.89 Normally, the gestation period of a port also not available. In order to develop the port
project is about two years though mega projects sector, there is a need to devise a
have taken 3-5 years. Thus, only projects that comprehensive policy for the development of
may be awarded by 31 March, 2010 would port sector. A monitoring system should be set
come actually and add to the capacity of the up quickly for assessing the overall port
ports during the Plan Period. It is proposed to capacities including those of the non-major
take up 26 projects relating to construction/ ports on a regular basis.
modernisation of berths, container terminals,
Single Buoy Moorings (SBM) and installation of Port Efficiency
mechanised handling facility during the year.
Concerted efforts need to be made to complete 16.92 An important issue for cost
the process and procedures expeditiously to be competitiveness of our trade has been the
able to complete maximum of projects during inability to take large size vessels in these ports
Eleventh Plan. and inefficiencies due to large dwell time.
Progress in this regard has been rather
16.90 The total capacity by the end of the unsatisfactory as evident from the Table 16.8.
Eleventh Five Year Plan is likely to be about
790 MT, but has the potential of going up to 840 Table 16.8
MT. This will, however, require extensive port- Progress in Efficiency Parameters
wise monitoring and a strong follow-up and Average Pre- Average
effective execution of projects. berthing Turn Round
Year
Detention (in Time
Table 16.7 hrs) (in days)
Assessment of Capacity addition 2004-05 6.03 3.41
by the end of Eleventh Plan 2005-06 8.77 3.50
2006-07 10.05 3.62
(in Metric Tonnes) 2007-08 11.40 3.93
1 Capacity already created 70.0
Capacity involved in projects under
2008-09 9.55 3.87
2 91.2 2009-10 11.67 4.38
construction from X Plan
Capacity likely to come up of 26 projects
3 st 75.0
to be awarded by 31 March, 2010
Capacity involved in expansion through
16.93 The delay in turn-round time is mostly
4
mechanisation
49.0 on the port account, which is around 65 per
Total 285.2 cent of the turn round time. The factors
responsible on the port account delays are
Non-Major Ports vessel waiting for a working berth after
completion of unloading and before
16.91 An important component of the capacity commencement of loading, breakdown/non-
creation is the development of non-major ports. availability of handling equipments, non-
There are about 200 non-major ports in the availability of port labour gangs, spillage/grizzly
country under the control of respective State cleaning/chute jamming, ragging/ stitching etc.
Governments. The Eleventh Plan estimated Similarly, the non-port account factors
creation of an additional capacity of about 350 contributing to the delays are customs
MT in these ports, which is nearly one and a formalities, want of cargo/container, weather
half times the present capacity of these ports conditions, documents not ready, want of
(228 MT). The share of non-major ports in barges, breakdown of ship gears, shed
projected ports traffic was expected to increase concession/poor clearance of cargo etc.
 Transport 367 
    

16.94 Several Indian ports experience high High Load Freight Corridor on Western and
dwell time because of customs and port side Eastern routes. The progress however, is not
constraints like inadequate infrastructure, very encouraging. The projects for rail/road
absence of seamless connectivity with other connectivity need to be monitored closely. A
modes, and various IT related bottlenecks. For similar approach for non-major ports is
container handling, which is increasing rapidly, required.
adequate electronic environment with
Enterprise Resource Planning (ERP), enabling Dredging
the efficient use of port resources is yet to be
established. The Electronic Data Interchange 16.97 The Eleventh Plan target for capital
(EDI), which ensures flow of data electronically dredging was 298.28 Million Cubic Meters
between ports, Customs, shipping lines and (MCuM) for major ports and SSCP and 367.18
users, is still to be commissioned on a common MCuM for non-major ports besides
platform. At present EDI is minimal and consists maintenance dredging of 367.06 MCuM and
of the proprietary message exchange format 33.89 MCuM respectively. Against this, the first
formulated by customs. The implementation of three years have seen dredging of 236.34
Risk Management System (RMS) by Customs MCuM at major ports which is only 35.52 per
is expected to bring about significant reduction cent of the Plan target.
in detention of cargo for assessment and
examination at ports. An assessment of working 16.98 One of the key areas of concern is the
of RMS needs to be made so that corrective slow pace in maintenance and capital dredging.
measures, if necessary can be taken. In the present international dredging scenario,
almost the entire dredging technology and
16.95 The Eleventh Five Year Plan had know-how is concentrated with a few
suggested that it is possible to reduce turn international companies. During the recent
around time from the existing 3.23 (dry bulk), years demand for dredging operations
5.62 (break bulk) and 1.88 (container) days to increased substantially due to enhanced activity
1.60, 1.50 and 1 day respectively for imports in reclamation and augmentation of port
and for 3.57, 6.60 and 3.78 days to 1.70, 3.30 capacity. Moreover, the timeframe for execution
and 1.50 days respectively in the case of of dredging projects has increased. In line with
exports. This was based on an assessment by international trend of creation of on-shore and
Committee of Secretaries for the programme to off-shore infrastructure that require large scale
be implemented in the period 2007-10. The dredging, such activities in India has also
Ministry needs to expedite action on this count. increased. At the same time, only a few
What is worrisome is the slow turn around of companies in the dredging sector have shown
ships in our major ports of Mumbai, Kandla and interest in acquiring dredgers and carrying out
Marmugao. Depending upon the cargo handled, dredging activities.
all these gaps must be addressed for each port.
A time-bound plan should be made so that in 16.99 In order to develop dredging capacity it
reasonable period of time, the turn around/dwell is necessary to take steps to ensure adequate
time matches the most efficient ports. This skilled manpower and development of
action plan must be designed and put in place maintenance and engineering facilities. It would
swiftly. also be useful if the time for accomplishing the
whole process of evolving approval and
Port Connectivity implementation of dredging projects is reduced.

16.96 The Eleventh Plan envisages that each Sethusamudram Ship Canal Project (SSCP)
major port should have at-least four-lane
connectivity and double rail lane connectivity. At 16.100 For the implementation of
present 13 roads of 360 kms at a total cost of Sethusamudram Ship Channel Project (SSCP)
Rs. 4149.66 crore and rail projects of Rs. at the cost of Rs. 2,427 Crore, a SPV i.e. the
3903.00 crore are under implementation. The Sethusamudram Corporation Limited was
Government is also implementing Dedicated formed with the Equity participation of the
368 Mid-Term Appraisal of the Eleventh Five Year Plan 

Government of Rs. 495 Crore. The dredging ships were on order which were expected to be
work at Palk Strait and Southern part of Palk delivered in the Eleventh Plan. In addition, SCI
Bay/Palk Strait is in progress. The estimated is to place order for 62 ships of 2.8 million GT
cost of the project has gone up and the revised during Eleventh Plan. SCI is expected to
cost is being worked out. The dredging at acquire six ships of 0.47 million GT in the first
Adam’s Bridge was suspended by the Supreme three years of the Plan. In the remaining two
Court. The matter of alignment of the SSCP is years of the Plan 26 vessels of 0.82 million GT
sub-judice. An Expert Committee under the are likely to be acquired. Thus SCI would be
chairmanship of Dr. R.K. Pachauri which has able to acquire 32 vessels of 1.29 million GT,
been constituted to examine the issue is in the which is quite low compared to the target.
process of finalising the Report.
16.104 The Plan projected tonnage acquisition
Andaman–Lakshadweep Harbour Works between 10 million GT to 15 million GT by
(ALHW) 2011-12. Against this target the achievement in
the first three years has been 9.61 million GT.
16.101 Andaman Lakshadweep Harbour Works In view of the various problems faced by the
(ALHW) plans, executes and maintains port and shipping sector that include the decline in self
harbour facilities in the Andaman & Nicobar and financing capacity of the sector, inadequate
the Lakshadweep Islands. The Government has availability of credit, etc. the acquisition of
drawn an action plan for rehabilitation of port tonnage is likely to fall well short of the target.
structure, creation of additional facilities and
taking up of major reconstruction works on 16.105 The share of Indian companies in
turnkey basis at a cost of Rs. 976.19 crore The carriage of Indian overseas cargo has declined
action plan includes post Tsunami from 13.7 per cent in 2005-06 to 9.5 per cent
repair/reconstruction, development of additional in 2008-09. This is an area of concern and this
port facilities and turnkey projects. Out of the 56 trend needs to be reversed. The decline of
berthing structures in Andaman & Nicobar share of Indian shipping is due to a number of
Islands, 50 structures have been made factors. The most important are inadequate
functional. acquisition of tonnage and absence of policy
framework that governs the growth of Indian
SHIPPING shipping. The need for comprehensive policy
which may cover cabotage strengthening, cargo
16.102 Against the Eleventh Plan outlay of support for overseas trade, providing of a level
Rs.14,135 crore for shipping sector, an playing field on taxation, access to cost
expenditure of Rs.3539.22 crore was incurred effective funding of ships etc., has become
during the first three years of the Plan, which is urgent. The Indian shipping fleets need to be
only 25.04 per cent of the Plan outlay. Of the modernised and renewed. The requirement of
Eleventh Plan GBS allocation of Rs. 1,000 funds due to the replacement is Rs. 15,000
crore, in the first three years, the expenditure is crore. In addition an investment of Rs. 38,000
Rs. 427.89 crore, which is 42.79 per cent. The crore is required to acquire new vessels if the
main reason for the lower GBS expenditure is target of 15 million GT is to be achieved. The
very slow progress towards the establishment requirement of funds is huge and funding from
of Indian Maritime University. The expenditure international debt markets has dried. It has
during three years on this count is only therefore, become necessary to take policy
Rs.63.40 crore, which is only 23.9 per cent of measures to enhance the self-financing
the allocation of Rs. 265 crore. capacity of the sector and also take measures
to augment the availability of debt to finance
Shipping Corporation of India (SCI) acquisition of ships. Shipping is a highly
competitive sector. Policy for development of
16.103 Against IEBR allocation of Rs. 13,135 this sector needs to be formulated keeping in
crore to SCI, the expenditure is Rs.3111.32 view the policy measures taken by other
crore, which is 23.7 per cent in three years of countries to promote their shipping. This will
the Eleventh Plan. Under the Tenth Plan 12
 Transport 369 
    

give Indian shipping a level playing field and per cent of VTS scheme was completed by
enable it to compete in the international market. March, 2010. Presently, DGLL operates a wide
network of 177 lighthouses with supporting
Indian Maritime University (IMU) infrastructure. In order to provide and promote
better safety and security to mariners and
16.106 The Government has enacted Indian vessels, DGLL should equip itself with
Maritime University Act, 2008 for setting up the sophisticated system to track the movement of
University with headquarter at Chennai and fishing and other vessels operating in the
campuses at Kolkata, Mumbai, Visakhapatnam coastal areas.
and Chennai at a cost of Rs. 265.25 crore. The
University would strengthen and promote INLAND WATER TRANSPORT
maritime studies, research and extension work
with focus on emerging areas of studies 16.109 The Eleventh Plan has laid emphasis
including marine science and technology, on the development of infrastructure facilities on
marine environment, socio-economic, legal and the existing waterways to make them fully
other related fields and also achieve excellence functional and declaring three new waterways
in these and connected fields. The existing namely East Coast Canal along with Brahmani
seven Governments and Government aided river and Mahanadi delta, Kakinada-Puducherry
maritime training and research institutes have canal system along with Godavari and Krishna
been merged with the IMU. The project for rivers and Barak river.
setting up IMU is under consideration.
16.110 During Eleventh Plan, an outlay of Rs.
Director General of Shipping (DGS) 543.75 crore has been approved for the Inland
Waterway Authority of India (IWAI) against
16.107 Against the Eleventh Plan outlay of which the expenditure during the three years of
Rs.58.35 crore for Director General (Shipping), the Plan is Rs. 276.88 crore, which is 50.92 per
an expenditure of Rs.14.45 crore was incurred cent of the Plan outlay. The lower expenditure
during the first three years of the Plan, which is has been due to major shortfall in expenditure
24.76 per cent of the Plan outlay. One of the on the development of National Waterway-2
functions of Director General of Shipping is to during Annual Plan 2007-08. During Annual
implement various International Conventions Plan 2008-09, the outlay of IWAI was reduced
relating to safety, prevention of pollution and from Rs.160.38 crore to Rs. 88.21 crore at RE
other mandatory regulations of the International stage.
Maritime Organisations. Of the 27 Conventions
adopted by the IMO, 23 are in force. Of these 16.111 Expenditure was mainly incurred on the
India has ratified 18. In pursuance of the maintenance of fairway including channel
ratifications of the Conventions, DG (Shipping) development, terminals, navigational aids, and
needs to implement Ballast Water Management cargo vessels for demonstration purpose for
Convention of IMO in all the major ports in India NW- 1, 2 and 3 and techno-economic feasibility
and strengthen the existing setup for maritime studies on other waterways. During the first two
casualty investigation to provide seafarer’s and a half years of the Eleventh Plan, Least
safety. Assured Depth (LAD) of 2.5 metres has been
provided between Haldia-Farakka (560 kms)
Directorate General of Lighthouses and against a target of LAD of 3 meters by the end
Lightships (DGLL) of Plan Period. The target of 2 metres has
been achieved in other national waterways.
16.108 Against the Eleventh Plan outlay of Providing 24 hours navigational aids in 1,200
Rs.133.62 crore for DGLL, an expenditure of kms of three national waterways is likely to be
Rs.73.17 crore has been incurred during the achieved by March, 2010.
first three years of the Plan, which is 55.17 per
cent of the Plan outlay. One of the major 16.112 In November, 2008 two new National
schemes of DGLL is establishment of Vessel Waterways were declared as NW-4 for
Traffic Service (VTS) in the Gulf of Kutch. 75 Kakinada-Pondicherry, along with Godavari and
370 Mid-Term Appraisal of the Eleventh Five Year Plan 

Krishna river (1,095 kms.), and NW-5 East funding of ships acquisition, etc needs to be
Coast canal with Brahmani river (623 kms.) formulated.
• IWAI may focus on making the existing
16.113 Cargo transportation in organised IWT
national waterways fully functional. The
rose marginally from 55.8 million tonnes (3.38
development programme of IWAI may be
b.t.km) during 2006-07 to 56.0 million tonnes
implemented through project mode.
(3.56 b.t.km) during 2008-09.
• There is a need to incentivise Indian
16.114 IWAI has increased its capacity to shipping industry by promoting coastal
implement the project and, therefore, the pace shipping, ship building industry and
of expenditure has picked up. However, in increasing share of Indian flag vessels.
terms of throughput, there has been very little
progress. CIVIL AVIATION

16.115 It is necessary that the development 16.116 The main objectives of the Civil Aviation
programme of IWAI is implemented through Sector for the Eleventh Plan is to provide world
project mode, with a view to clearly identify the class infrastructure; safe, reliable, and
benefits and throughout that will be generated. affordable air services to encourage growth in
A study needs to be undertaken to assess the passenger and cargo traffic; and air connectivity
benefits of the investment already made. This to remote and inaccessible areas, particularly
would help in evolving of schemes for the North Eastern part of the country.
development of IWT sector.
16.117 The aforesaid objective is to be
Way Ahead achieved through (i) the
modernisation/upgradation of metro and non-
metro airports; (ii) construction of Greenfield
• The performance of major ports in adding
new capacities has been far below airports; (iii) upgradation/ modernisation of Air
expectations in the initial two years of the Traffic Management Systems; (iv) setting up of
Plan. Hence, against the target of 1,016.55 multi modal international passenger and cargo
MT the likely achievement by the end of the hub; (v) addressing acute shortage of operating
Plan could be between 790 MT to 840 MT. manpower; and (vi) acquisition of modern fuel
In order to attain even these levels, a efficient aircraft fitted with the latest equipment.
detailed plan will need to be prepared A number of policy interventions have been
indicating important milestones which will done to support these. (Box 16.3)
have to be monitored closely and at regular
16.118 The capacity building process in both
intervals.
airlines and airports is to be enhanced mainly
• In order to reduce dwell-time it is necessary through increased private sector participation.
to complete, introduction of Electronic Data Delhi and Mumbai airports are being
Interchange (EDI) and extensive modernised/ expanded through PPP. City side
mechanisation of operations and also to development of 35 non-metro airports is also
complete port connectivity projects. proposed through PPP mode. A similar strategy
is also envisaged for the development of
• The implementation of risk management
Greenfield airports at MOPA (Goa), Navi
system needs to be reviewed with a view to
Mumbai (Maharashtra) and Kannur (Kerala).
take corrective measures.
Besides, there are some more airport projects
• The dredging plan along with sources of where private sector participation is envisaged
financing needs to be firmed up. under the State Sector. Two Greenfield airports
at Bangalore and Hyderabad, developed
• A comprehensive policy that may cover through PPP, have become operational.
cabotage strengthening, cargo support for
overseas trade, provision of level playing
field on taxation, access to cost effective
 Transport 371 
    

Annual Plan 2010-11 which is likely to improve

Progress in the Eleventh Plan the utilisation of GBS to 56.8 per cent in the
first four years.
16.119 During the first four years of the
Eleventh Plan, the sector is likely to spend only 16.121 Both domestic and international traffic
Rs. 34,613.78 crore against an approved outlay witnessed a negative growth during 2008-09
of Rs. 43,560.57 crore at constant 2006-07 mainly on account of slowdown in global
price i.e. 79.46 per cent. economy and increase in air fare due to
increase in ATF prices. Passenger traffic which
16.120 As regards the Gross Budgetary had grown at 21 per cent during 2007-08 has
Support (GBS), the progress is not up to the declined by 7 per cent during 2008-09 and
mark. Against an approved outlay of Rs. 1,680 similarly, the freight traffic which had grown at
crore, Civil Aviation Ministry is likely to spend 12 per cent during 2007-08 declined by about 1
Rs. 450.13 crore, i.e. only about 27 per cent of per cent during 2008-09.
the approved GBS, during the first three years
of the Eleventh Plan. However, the Ministry has 16.122 This slowdown was reflected in the
been allocated an amount of Rs.1200 crore for performance of passenger traffic. Against a
The National Aviation Co. of India Ltd. (NACIL) passenger traffic target of 2,054.00 lakh
for the Annual Plan 2010-11, this would (540.37 lakh international and 1,513.63 lakh
enhance the likely expenditure under GBS to domestic passengers) in the Eleventh Plan, it
Rs.1,254.73 crore i.e. 74.69 per cent of the could reach the level of 1,089 lakh (316 lakh
GBS during the first four years of the Eleventh international and 773 lakh domestic
Plan. The situation is still worse in case of passengers) during 2008-09. Similarly, the
Airport Authority of India (AAI) which is the cargo traffic could reach a level of 1,702
major recipient of the GBS. As against the Thousand Metric Tonnes (TMTs) (1,150 TMTs
allocation of Rs.1,301.22 crore of GBS to AAI international and 552 TMTs domestic cargo)
during the Plan, only Rs. 226.24 crore (about during the same period, as against the target of
17 per cent) is likely to be spent during the first 2,683 TMTs (1,823 TMTs international and
three years of the Plan. This may result in slow 860.78 TMTs domestic cargo).
progress in development and modernisation of
airport infrastructure in NE Region and other 16.123 Air India and Indian Airlines were
crucial areas. As such, in the remaining two merged in 2007-08 with a view to optimise fleet
years of the Plan, AAI would need to step up acquisition, leverage the asset base, strengthen
the progress to absorb the substantial amount the network and to achieve economies of scale.
of GBS provided to them. An amount of The merger of two airlines has not shown
Rs.600.50 crore has been allocated for the positive results possibly because no effective

Box 16.3
Some Major Developments
in Civil Aviation Sector
• FDI norms have been liberalised, allowing 100 percent FDI through the automatic route for setting up
green field airport projects.
• A policy for construction of Greenfield airports, addressing procedure for approval of greenfield
airports within 150 kms of existing airports, airports for cargo and or non scheduled flights and for
heliports, has been put in place.
• The Airport Economic Regulatory Authority (AERA) has been established. The functions to be carried
out by AERA include fixing, reviewing and approving tariff structure for the aeronautical services and
users’ fees which may be levied by the service providers for airport development and monitoring
prescribed performance standards relating to quality, continuity and reliability of service.
• The two national carriers Air India Ltd. and Indian airlines have been merged to optimise fleet
acquisition, leverage the asset base, strengthen network and achieve economy of scales.
• In order to address the acute shortage of operational manpower in aviation sector, Indira Gandhi
Rashtriya Udyan Academy (IGRUA) has been upgraded and a new flying training institute at Gondia
has been established and the management has been passed on to the CAE flight Training (India)
Private Limited, a wholly owned subsidiary of CAE Inc, Canada.
 
372 Mid-Term Appraisal of the Eleventh Five Year Plan 

merger of operations was attempted. Rs.2,650 Crore from borrowings and balance
Meanwhile, the slowdown in air traffic has had a from internal resources. However, from the
negative effective on NACIL and the financial financial performance in terms of profitability of
performance, in terms of profitability, has AAI, it seems that targeted generation of
deteriorated over the years. The NACIL which internal resources by AAI to the tune of Rs.
was earning a net profit of Rs. 55.50 crore (AI- 8,313crore would not be feasible. The net profit
Rs. 12.00 crore and IA-Rs. 43.00 crore) at the of the AAI which was Rs. 1,081.87 crore in
end of Tenth Five year Plan has started 2007-08 has fallen to Rs. 684 Crore in 2008-09
incurring losses during the Eleventh Plan. and is likely to reach at 530 Crore during 2009-
During 2007-08 it incurred a loss of Rs. 10. Keeping this in view, AAI should work out
2,226crore. In 2009-10 as well it is expected to an alternative mode of funding and finance
incur a loss of around Rs. 5,200 crore. more projects through PPP mode.

16.124 The performance in terms of physical 16.129 In view of safety and security issues
productivity indicators of the NACIL is also not assuming greater importance in the
very encouraging (see Annexure-VII). Fall in international environment in recent decades, a
load factor and yield would require persistent substantial amount of funds i.e. Rs. 218.25
route rationalisation exercise. While part of crore was provided to the Bureau of Civil
these losses is attributable to a general Aviation Security but no progress has been
downturn in the aviation industry, the NACIL made in this regard. Till 2008-09, the
has clearly failed to optimise the benefits of the organisation could spend only Rs. 0.55 crore
merger of the two airlines. The airlines need to and is likely to spend another Rs. 14.00 crore
cut costs, improve productivity and develop a during 2009-10. The slow rate of progress is
revival plan. mainly due to non-finalisation of major
schemes. In view of the critical role played by
16.125 Modernisation of IGI airport at Delhi and the regulatory organisations of the Aviation
CSI airport at Mumbai through private sector Ministry, they need to be strengthened by
participation and of Kolkata and Chennai developing appropriate technology, training and
airports through internal resources is under equipments.
implementation.
Policy Issues
16.126 Of the modernisation and augmentation Way Ahead
of capacity at 48 non-metro airports (35 non-
16.130 There are a number of policy issues
metro airports and 13 others), works at 21
that need to be addressed are mentioned below
airports (12 at 35 non-metro airports and 9 at
:
other airports) has already been completed and
In the remaining it is likely to be completed by (i) There is a need to formulate a
2010. comprehensive Civil Aviation Policy
keeping in view the role of the sector in
16.127 There has been considerable time and promoting tourism, trade and inter-modal
cost overrun in several projects, especially the consideration.
projects pertaining to modernisation and
(ii) Eleventh Five Year Plan envisaged
augmentation of capacity at 48 non-metro
restructuring of Airport Authority of India.
airports including city side development and
The progress in this regard has been
also airport infrastructure development in NER
slow.This needs to be given priority.
and other crucial areas, taken up by the AAI
which needs to be checked by putting in place (iii) Although the Domestic Air Transport
an effective plan formulation and monitoring Policy provides for foreign equity
mechanism. participation up to 49 per cent and
investment by Non-Resident Indians
16.128 During the Plan, AAI had made a capital (NRIs) up to 100 per cent in the domestic
expenditure plan of Rs. 12,434 Crore to be air transport services foreign airlines are
financed through Rs. 1,471.68 Crore of GBS, not permitted to participate in equity,
 Transport 373 
    

directly or indirectly. In view of the concerned private investment has started

developments taking place in aviation flowing in. To keep this trend moving and
sector, this policy needs to be reviewed to diversify the private sector participation
to attract new technology and in other areas of the aviation sector such
management expertise. as development of Maintenance, Repair
& Overhaul (MRO) facility etc, efforts
(iv) In order to tap the vast potential of growth
would be needed to encourage private
of traffic and to encourage balanced
sector participation through enabling
growth of civil aviation, regional airlines,
policies.
need to be promoted through more liberal
policy, provision of better infrastructure (ix) Provision of better air connectivity is
facilities and simplified rules and crucial for the socio-economic
procedures governing entry. development of the people of North
Eastern Part of the country. Keeping this
(v) The policy of providing air services to
in view, augmentation of airport
North-Eastern and other inaccessible
infrastructure and provision of better air
areas through Route Dispersal
services was envisaged in the Eleventh
Guidelines (RDG) needs to be reviewed
Plan. However, other than construction of
in view of the significant changes that
Greenfield at Pakyong, not much
have taken place in civil aviation sector
progress has been made in this direction.
since the policy was laid down in 1994.
Therefore, there is an urgent need to
This could be done either by making the
address the issue on priority.
obligation tradable or by providing direct
subsidies to operators willing to operate
(x) The process of segregating ATC from
in inaccessible and isolated areas. The
AAI, which has been initiated, needs to
operators on trunk routes may be asked
be expedited.
to contribute towards the subsidy.
(vi) Unsatisfactory performance, both in 16.131 Various modes of transport differ
physical and financial terms, experienced significantly from one another in terms of
by the NACIL is a cause of concern. The technical and operational capability. It has
problem being faced by NACIL is vast therefore become necessary that transport
and complex. It seems that restructuring development is guided by an integrated
of NACIL is necessary over the entire transport policy. A National Transport
cross-section starting from financial and Development Policy Committee has been set
route network through customer and up which is expected to report by September,
marketing services and organisation of 2011.
manpower resources. This would require
in-depth analysis of the problem, the Tourism Sector
study of future prospects, evolving of
financial strategies, fleet planning, route 16.132 The main objective during Eleventh
rationalisation etc. Plan is to achieve 10 million international
visitors and 812 million domestic tourist visitors
(vii) NACIL had planned to acquire 111
by the end of the Eleventh Five Year Plan and
aircrafts, of which 46 have joined the
to develop new forms of tourism like rural
fleet. However, in view of the falling
tourism, cultural tourism, adventure tourism,
Passenger Load Factor (63.8 per cent in
cruise tourism, MICE tourism and medical
2007-08 to 59.6 per cent in 2009-10)
tourism.
indicating thereby an idle capacity, the
acquisition plan along with leasing policy
16.133 The Eleventh Plan vision for tourism
of the Company needs to be reviewed.
development is to be achieved through the
(viii) Aviation sector being highly capital following key strategic objectives:
intensive, private sector investment has a
greater role to play. In so far as the 1. Positioning & maintaining tourism
development of airport infrastructure is development as a national priority;
374 Mid-Term Appraisal of the Eleventh Five Year Plan 

2. Enhancing & maintaining India’s new tourism products of world standard. Under
competitiveness as a tourism destination; this scheme, during the first 2 years of the
Eleventh Plan, the Ministry has sanctioned 346
3. Improving and expanding product
infrastructure projects including 17 mega
development;
projects in various States and is likely to
4. Creating world class infrastructure; sanction another 150 including one mega
project in 2009-10.
5. Drawing up effective marketing plans and
programmes; and
16.137 The second important scheme is
6. Developing human resources and capacity Overseas Promotion and Publicity including
building of service providers. Market Development Assistance and its
objective was to position India as the most
Review of the Eleventh Plan favoured destination in the overseas travel
market through a vigorous campaign. Under
16.134 During the Eleventh Plan, the tourism
this scheme, the Ministry has consistently been
sector under Central Plan was allocated an
working on a two pronged strategy for
outlay of about of Rs. 4559 Crore at constant
marketing of Incredible India i.e. branding the
price. The progress on expenditure during the
same in the existing as well as emerging
first three years of Eleventh Plan is satisfactory
markets. The opening of fourteenth overseas
as it is likely to spend Rs. 2626 Crore, which is
India Tourism Office in Beijing in April, 2008
about 58 per cent of the total approved outlay
was one outcome of this strategy. Besides, with
for the Eleventh Plan. An outlay of Rs. 1050
a view to ensuring language limitation does not
Crore has been approved for 2010-11.
hamper promotional activities, publicity is being
undertaken in local languages for better impact
16.135 During the first two years of the
e.g. in Spanish, Chinese, French, etc.
Eleventh Plan, Foreign Tourist Arrivals (FTA) as
well as Domestic Tourists visits have grown by
16.138 Third, with a view to create adequate
9.85 per cent and 10.49 per cent respectively
infrastructure to trained tourism manpower
to reach the level of 5.37 and 563 million
resources and also to bring professionalism in
respectively. Similarly, the domestic tourist
the country’s hospitality industry, emphasis was
visits experienced a growth rate of 13.9 per
placed on opening new institutes and broad
cent and 6.9 per cent during the same period.
basing the scope of the schemes relating to
Foreign tourist arrivals however have shown
development of human resources associated
negative growth since November 2008 with the
with tourism and hospitality sector.
trend continuing till May, 2009. The decline in
Consequently, during the first two years of the
growth rate in 2008 was primarily due to global
Eleventh Plan, besides sanctioning 11 State
economic slow down and the terrorist attack in
Institutes of Hotel Management, the guidelines
Mumbai. The downward trend in foreign tourist
for ‘Capacity Building of Service Providers’,
arrivals has been arrested and in the first
Assistance to the Institutes of Hotel
quarter of 2010 it registered a growth of 12.8
Management/Food Craft Institutes/National
per cent over the corresponding period of 2009.
Council of Hotel Management & Catering
Several initiatives such as Visit India Year 2009
Technology/Indian Institute of Tourism & Travel
campaign, promotion of niche products like
Management were also revised.
Wellness Tourism, MICE Tourism, Heli Tourism
and extensive Road Shows in partnerships with
16.139 Besides, recognising the criticality of
stakeholders in the major overseas source
developing hotel accommodation, especially
markets contributed to this development.
budget hotels for the tourists so as to minimise
the shortage of accommodation in Delhi, a new
16.136 The Eleventh Plan has put emphasis on
scheme on Creation of Land bank for Hotels
the three major schemes. The first major
was introduced during the Eleventh Plan. This
scheme is Product/Infrastructure Development
has not yet taken off. The scheme therefore
for Destinations and Circuits, a Centrally
needs to be reviewed and alternatives
Sponsored Scheme, and has the focus on the
suggested.
improvement of existing product and developing
 Transport 375 
    

Issues transport infrastructure, the input from the

Ministry of Tourism may be taken.
16.140 Tourism sector in India has a
tremendous potential for growth in view of the ii) The Tourism Satellite Account for India
availability of the variety of tourist themes estimates that, the contribution of tourism to
offered by various destinations in the country GDP and employment has increased to 5.92
and has the potential to stimulate other per cent and 9.24 per cent during 2007-08 as
economic sectors through its backward and against 5.83 per cent and 8.27 per cent
forward linkages and cross-sectoral synergies. respectively in 2002-03. Although separate
However, despite the persistent effort made by estimates of contribution of domestic tourism
the Government, the tourism has failed to are not available, there are evidences that
realise its potential as is evident from the fact indicate that the domestic tourism plays an
that the India’s share in world’s tourists arrivals important role. Moreover, tourism in India has
is still below 1 per cent. The major reason for grown from the pursuit of the privileged few to
this seems to be the lack of long term vision mass movement of people with the urge to
and the fragmented approach of various discover the unknown, to explore the new and
government departments like forest, tourism, strange places, to seek changes in environment
ASI, transport, art & culture and finance etc. and to undergo new experiences, which
Thus, in order to realise the full tourism suggests that there is a huge potential for the
potential in the country, the following issues domestic tourism. Therefore, it is essential to
need to be addressed urgently. know the taste and preferences of the visitors. It
will help to develop need based infrastructure
i) The availability of infrastructural facilities to satisfy their expectations. A study needs to
including transport infrastructure plays an be undertaken to know the tastes and
important role in realising the tourism potential preferences of the tourists; composition of the
of the country. The issue of tourism tourists; and purpose of visits etc.
infrastructure is being addressed through
iii) Tourism is an industry with great reliance
putting emphasis on development of tourist
on attraction and amenities, along with
infrastructure under the existing schemes of
dependence on the goodwill of the local
tourism sector and creating enabling
community. Of late, the social and economic
environment for private sector participation.
consequences have raised various
Similarly, the issue of transport infrastructure is
environmental issues affecting the ecology and
being addressed through the development of
the social impact of tourism on the host
roads under National Highway Development
community. Therefore, in order to have
Programme, Special Accelerated Road
sustainable tourism development, the
Development Programme in North Eastern
involvement of local people would be of utmost
Region and the modernisation/upgradation of
importance.
metro and non-metro airports; construction of
Greenfield Airports including Pakyong and iv) Hotel accommodation being a vital area of
liberalising the Bi-lateral Air Services concern was accorded priority in the Eleventh
Agreement between India and other countries Plan. Land being the critical constraint for
etc. However, in view of the tremendous building hotels, the State Governments and the
tourism potential of the country, yet to be Ministry of Railways were requested to identify
realised, more needs to be done. An integrated hotel sites and make them available to
approach, keeping in view the availability of entrepreneurs on suitable terms, preferably on
financial as well as manpower resources, would long-term lease. But this has not fructified,
need to be taken by all the concerned probably, because of the multiple uses of the
government departments in putting in place the land. In view of this, some structure needs to be
requisite infrastructure as the strong basic developed for Private Sector Participation
infrastructure availability throughout the wherein local people, State Governments and
country, per se, not only help in growing tourism other agencies who own land can be involved
but also in expanding the sector by providing a on a revenue sharing basis.
perfect platform for fresh private investments.
While formulating schemes for development of
376 Mid-Term Appraisal of the Eleventh Five Year Plan 

v) Tourism being a multi sectoral activity, there formulation to the project implementation stage
are large number of inter-Ministerial issues, as this will help in understanding the social,
such as safety and security of tourists, high and cultural and environmental impacts of tourism
differential rate of taxes; entry tax; availability of projects on local communities enabling
land and policy regarding private sector development of tourism in sustainable manner.
participation etc., which need to be resolved at
the highest level. In this regard a high level The Vision could look into the following :
committee, involving representatives from
concerned Ministries as well as States, need to • Who are the ‘tourists’? Are they foreign
be established. business-class travellers, back-packers,
domestic middle-class tourists or even
vi) The tourism sector has a tremendous
lower middle-class travellers?
potential for attracting private sector
participation as major beneficiaries of tourism • What is the ‘portfolio of products’ we need
development are private sector agencies like for these customers? Different customer
tour operators, hotels, transport operators, groups want/need different products.
restaurants etc. The experience in this regard is
however not very encouraging, probably, due to • Whereas vocational training must be
the lacklusture response from the government enhanced to improve the quality of our
agencies concerned. The Government must tourism products, the training must respond
take innovative and friendly initiatives to create to the various products’ requirements. five-
an enabling environment. The introduction of star hotels may need different skills than
single window clearance could be one of such small eating establishments.
initiative. • Where are the places different customer
Way Forward groups can be attracted to and how?

16.141 There is an urgent need to develop a • All tourist locations are within our States.
long term vision and development plan and an Therefore the States have a critical role to
implementation strategy that involves all play in developing these locations and
concerned departments for an integrated stimulate tourism. The States must see the
approach towards tourism development during economic benefits for their people from the
the Twelfth Five Year Plan. development and care of these locations.
• Development of Tourism sites, keeping in
16.142 The vision should be to make India the mind urban/archaeological attractions or
most popular tourist destination through natural attractions and affects on the local
oprtimal utilisation of resources with focus on population. Such development should
integrated development of infrastructure sector benefit the local population through
conserving and preserving the country’s increase in income opportunities as well as
heritage and environment and enhancing improvement in the infrastructure they use.
productivity, income, creating employment
opportunities and alleviating poverty thereby • A one size fits all solution will not work (e.g.
making tourism the most important sector for Holiday Inns and McDonalds in the USA).
the socioeconomic development. Indeed uniformity may destroy the
heterogeneity and diversity that is
16.143 Without a challenging and “Incredible India’s” USP.
comprehensive vision that inspires and unites
all stakeholders, the efforts will not synergise
and India will not obtain the benefits from 16.145 A Committee would be set up to
tourism that it should. conduct a participative process of creating this
vision with involvement of key stakeholders to
16.144 The vision should also focus on form the basis of development of tourism in
developing tourism from people’s perspective subsequent plans.
by involving local panchayats and local
communities from the stage of project
 Transport 377 
    

Annexure-I

Physical Performance of Ministry of Railways during first three years of Eleventh Plan

Sr. Scheme Eleventh 2007-08 2008-09 2009-10

No. Plan Target Achieve- Target Achieve- Target Anti.
Targets ments ments Ach.
1 New Lines 2,000 500 156 357 357 250 258
2 Gauge 10,000 1,800 1,549 563 563 1,400 1,516
Conversion

3 Doubling 6,000 700 426 1,000 363 500 450

4 Track 16,500 3,789 4,002 3,975 3,841 3,500 3,500
Renewals
5 Electrification 3,500 500 502 1,000 797 1,000 1,117
Projects

6 Rolling Stock - - - - - - -

7 Wagons 155,000 25,500 22,753 27,500 24,115 13,500 13,068

8 Coaches 17,500 3,003 3,102 2,734 3,193 4,234 3,494
9 EMU 2,800 253 193 781 535 855 855
10 MEMU/DEMU 2,200 393 66 446 102 444 444

11 Diesel 1,800 200 222 250 257 250 258

Locomotives

12 Electric 1,800 220 200 220 220 230 240

Locomotives

13 Total 3,600 420 422 470 477 480 498

Locomotives
378 Mid-Term Appraisal of the Eleventh Five Year Plan 

ANNEXURE-II

Overall NHDP Status at a Glance

(As on 30.9.2009)
Total Target Length Length
To be Likely date of
Phases Length in Date of Completed under
Awarded Completion
km. Completion in km. Imp.
I-GQ,EW-NS 99 per cent of
corridors, Port GQ will be
7,498 - 7,227 265 6
connectivity & completed by
others March 2010
II-4/6-laning North
December, December,
South-East West 6,647 3,451 2,444 752
2004 2010
Corridor, Others
III A-Upgradation, December, December,
4,815 937 2,155 1,723
4/6-laning 2009 2013
III B-Upgradation, December,
7,294 - - - 7,294
4/6-laning 2013
December,
IV-2-laning with
20,000 - - - - 2015 (as per
paved shoulders
financing plan)
V-6-laning of GQ
December,
and High density 6,500 - 131 899 5,470
2012
corridor
December,
VI-Expressways 1,000 - NIL NIL NIL
2015
700 km.
VII-Ring Roads,
or ring
Bypasses and December,
roads/ - - 19 681
flyovers and other 2014
bypass +
structures
flyovers
 Transport 379 
    

ANNEXURE-III

Physical Targets & Achievements on Non-NHDP Sections of NHs during Eleventh Plan

2007-08 2008-09 2009-10

Sl. Target Achv. (up to
Category Achv. Target Achv. Target
No. (km/ March,2010)
(km/nos.) (km/nos.) (km/nos.) (km/nos.)
nos.) (km/nos.)
1 Missing Link (km) 22 36 26 16 8.80 3.2
2 Widening to 2-lanes (km) 919 950 1,176 1,153 1,321 1,233.85
3 Strengthening (km) 577 911 706 1,010 1,058 1,012.70
Improvement of Riding
4 1,602 1,657 1,350 2,470 2,510 3,168.02
Quality (km)
5 Widening to 4-lanes (km) 34 36 51 63 80 68.64
6 Bypasses(No.) 3 6 8 4 6 0
7 Bridges /ROBs (No.) 107 86 92 77 132 122
380 Mid-Term Appraisal of the Eleventh Five Year Plan 

ANNEXURE -IV
BHARAT NIRMAN
Physical Achievements in years 2005-09 up to 31st August, 2009 New Connectivity Habitations

Sl. State Overall 2005-06 2006-07 2007-08 2008-09 Cumul per cent Balance Ove Target Ach'me
No. Target Targe Ach Target Ach Target Ach Target Ach ative Cumulativ to be rall (2009-10) nt
(2005-09) t Ach e Achieve Targ 2009-
(2005- Achievme d et 10 (up
09) nt (2005- (200 to 31st
09) with 9- Aug'09
respect to 14) )
Overall
Target
(2005-09)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
1 Andhra Pradesh 236 0 11 0 4 0 0 2 0 15 6 221 190 0
2 Arunachal Pradesh 104 22 0 65 3 67 19 25 19 41 39 63 30 8
3 Assam 4,445 421 346 1,988 804 2,701 656 1,800 1,210 3,016 68 1,429 1,350 115
4 Bihar 9,956 896 0 2,062 1,183 3,214 174 1,120 842 2,199 22 7,757 4,500 107
5 Chhattisgarh 3,831 478 497 1,310 632 2,007 648 2,000 1,154 2,931 77 900 840 98
6 Goa 2 0 2 0 0 0 0 0 0 2 100 0 0 0
7 Gujarat 1,332 230 212 246 264 251 249 180 222 947 71 385 175 28
8 Haryana 0 0 0 0 0 0 0 0 0 0 NA 0 0 0
9 Himachal Pradesh 922 127 98 209 145 166 168 260 172 583 63 339 250 12
10 Jammu & Kashmir 1,468 57 3 352 16 593 41 175 187 247 17 1,221 350 89
11 Jharkhand 2,991 526 101 1,295 108 901 97 400 363 669 22 2,322 1,100 91
12 Karnataka 17 0 1 0 4 0 2 10 10 17 100 0 0 0
13 Kerala 73 0 6 0 19 0 12 25 13 50 68 23 15 0
14 Madhya Pradesh 7,055 768 929 1,760 1,345 2,399 1,916 2,300 2,361 6,551 93 504 504 228
15 Maharashtra 295 0 46 0 135 0 10 82 60 251 85 44 40 4
16 Manipur 249 11 37 48 0 48 0 45 41 78 31 171 45 0
17 Meghalaya 128 35 13 30 4 31 6 10 7 30 23 98 10 4
18 Mizoram 130 12 7 39 1 39 11 10 6 25 19 105 40 0
19 Nagaland 37 9 7 10 0 10 5 5 7 19 51 18 12 4
20 Orissa 5,672 493 361 874 322 1,087 321 1,450 2,205 3,209 57 2,463 1,500 62
21 Punjab 50 0 7 0 43 0 0 0 0 50 100 0 0 0
22 Rajasthan 3,009 743 753 1,252 1,222 1,225 889 145 90 2,954 98 55 40 4
23 Sikkim 154 22 35 30 18 31 7 60 16 76 49 78 55 6
24 Tamil Nadu 83 0 46 0 0 0 3 25 30 79 95 4 2 0
25 Tripura 810 66 12 183 53 248 52 200 164 281 35 529 280 29
26 Uttar Pradesh 3,874 1,236 944 1,533 979 1,323 1,023 600 787 3,733 96 141 320 111
27 Uttarakhand 771 95 16 106 15 257 46 125 115 192 25 579 80 18
28 West Bengal 6,954 787 720 2,738 960 3,473 685 1,600 1,314 3,679 53 3,275 1,272 39
Total 54,648 7,034 5,210 16,130 8,279 20,071 7,040 12,654 11,395 31,924 58 22,724 13,000 1,057
 Transport 381 
    

ANNEXURE-V

Eleventh Plan - Physical Targets and Achievements for Major Ports

(Unit Traffic in MT)

Eleventh Annual Plan 2007- Annual Plan 2008- Annual Plan
SN Port Plan 08 09 2009-10
Target Target Ach. Target Ach. Target
1 Kolkata 57.93 58.88 57.33 57.29 54.05 56.11
2 Mumbai 71.05 58.76 57.04 61.03 51.88 53.46
3 JNPT 66.04 49.38 55.84 63.50 57.28 67.88
4 Chennai 57.50 55.86 57.15 64.00 57.49 64.00
5 Cochin 38.17 16.94 15.80 15.94 15.23 18.96
6 Vishakhapatnam 82.20 64.27 64.60 65.00 63.91 67.09
7 Kandla 86.72 60.00 64.92 72.77 72.22 78.00
8 Mormugao 44.55 38.94 35.13 40.60 41.68 45.00
9 Paradip 76.40 45.83 42.44 55.00 46.41 56.03
10 New Mangalore 48.81 34.34 36.01 40.34 36.69 40.34
11 Tuticorin 31.72 20.40 21.48 24.06 22.01 22.01
12 Ennore 47.00 11.70 11.56 10.56 11.50 12.45
Total 708.09 515.30 519.30 570.09 530.35 581.33
 382 Mid-Term Appraisal of the Eleventh Five Year Plan 

ANNEXURE-VI

Eleventh Plan - Port-wise Port Capacity

(in Million Tonnes)

Eleventh Capacity
Sl. Annual Plan Annual Plan Annual Plan
Port Plan Addition by
No. 2006-07 2007-08 2008-09
Projection 2011-12
1 2 3 4 5 6 7
1 Kolkata 56.90 96.95 40.05 61.26 62.46
2 Mumbai 44.65 92.81 48.16 44.70 43.70
3 JNPT 52.40 96.30 43.90 54.34 57.96
4 Chennai 50.00 73.50 23.50 53.35 55.75
5 Cochin 20.15 55.55 35.40 28.37 28.37
6 Visakhapatnam 58.50 110.90 52.40 61.15 62.23
7 Kandla 61.30 120.10 58.80 62.60 77.24
8 Mormugao 30.00 67.46 37.46 33.05 33.05
9 Paradip 56.00 111.00 55.00 56.00 71.00
10 New Mangalore 41.30 63.80 22.50 43.50 44.20
11 Tuticorin 20.55 63.98 43.43 20.75 22.81
12 Ennore 13.00 64.20 51.20 13.00 16.00
Total 504.75 1016.55 511.80 532.07 574.77
 Transport 383 
    

ANNEXURE-VII

Physical Performance of NACIL during first three years of Eleventh Plan

Eleventh 2007-08 2008-09 2009-10

Particulars Plan
Targets Ach. Targets Ach. Targets Ant. Ach.
Targets
Available Tonne Kms. (million) 5,859 913 645 1,168 843 1,348 1,061
Revenue Tonne kms.
4,602 705 438 900 637 1,058 839
(million)
Overall Load factor ( per cent) 78.5 77.2 67.9 77.1 75.6 78.5 79.1
Available Seats kms.
56,015 8,690 5,961 11,176 8,155 12,899 10,662
(million)
Revenue Passenger kms.
45,075 6,892 4,244 8,816 6,181 10,372 8,131
(million)
Passenger Load Factor ( per
80.5 79.3 71.2 78.9 75.8 80.4 76.3
cent)
Aircraft utilisation
- - 3,577 - 3,650 - 3,833
(hours/per annum)
 17
Telecommunications
take full advantage of the technology,
17.1. The development of the Information, digitalisation of broadcasting network should
Communications Technology (ICT) sector has be given priority and a complete switchover
transformed the way we live and the way that made to digital transmission by 2015, as
business is being conducted at all levels. It planned.
has helped India in her march towards
creating a knowledge society. The expansion 17.3. The National e-Governance Plan
of ICT into all sectors will help achieve the (NeGP) requires that ministries and
Eleventh Plan objectives of inclusive growth, departments be encouraged to provide
enable us to achieve our objectives in services online and there are guidelines for
education and healthcare, as well as in spending 2–3 per cent of budgetary
reaching social benefits to the intended allocations for ICT development and e-
beneficiaries amongst the socially and governance programmes.
economically weaker sections. It also holds
great potential in disseminating knowledge Telecommunications
and awareness to the rural sector, especially
to the farm sector and enable it to improve 17.4. India has the second largest network
productivity and incomes through the adoption with 562.15 million telephone connections at
of better cultural practices, greater awareness the end of December 2009. It has grown
of the situation in markets and prices and very rapidly in the range of 40 per cent per
improved information about the management annum, which has permitted the addition of
of pests and the constraints from weather nearly 300 million connections in the first two
related events. and a half years of the Eleventh Plan. The
Eleventh Plan of Department of
17.2. The Eleventh Plan has laid emphasis Telecommunications (DoT) aims at bridging
on a world class telecommunication the digital divide between the urban and rural
infrastructure as a vehicle of inclusive growth. areas and extending broadband connectivity.
A digital divide has arisen in terms of internet Rural telephony is an integral part of the
and broadband connectivity between the Universal Service Obligation Policy which is
urban and rural India and policy has to executed through the Universal Service
address this issue squarely. With Obligation (USO) Fund. GBS for the Eleventh
convergence of technologies, it is now Plan for DoT was fixed at Rs. 1,752 crore with
possible to provide multiple services on a IEBR component of Rs. 89,582 crore.
single platform and on a single device. To
 Telecommunications 385

17.5. The broad Eleventh Plan Targets in 17.6. The rural areas in the country have
Telecom Sector vis-à-vis corresponding experienced rapid growth in telecom services
achievements made so far are shown in the and the tele-density has risen from 5.9 per
Box 17.1 below. The growth of telephony in cent in March 2009 to 21.16 per cent in

Box -17.1

Eleventh Plan Broad Physical Targets in Achievements/ Status as on December 2009

Telecom Sector

To reach a telecom subscriber base of 600 Total no. of telephone connections (up to
million. Dec 2009): 562.15 million (wireless: 525.09 + wire
line: 37.06 million). Overall tele-density at the end of
December 2009 is 47.88 per cent (which in turn
consists of urban tele-density of 110.96 per cent and
rural tele-density of 21.16 per cent)
To provide 100 million rural telephone The no. of rural connections added up to December
connections by 2010 and reach 200 million 2009 is 174.53 million and present rural tele-density
connections by 2012, that is to achieve rural is 21.16 per cent.
tele-density of 25 per cent.

To provide telephone connection on demand Almost achieved.

across the country at an affordable price as
envisaged in Broadband Policy 2004.
To provide broadband connection on demand Programmes initiated. Total no. of Broadband
across the country by 2012. connections: 7.82 million.
To provide Third Generation (3G) services in This is yet to be achieved, as 3G Spectrum is
all cities/towns with more than 1 lakh expected to be auctioned during first half of 2010.
population.
To facilitate introduction of mobile TV. Introduced on experimental basis in Mumbai and Delhi
To provide broadband connectivity to every Programmes initiated
secondary school (SS), health centre, Gram
Panchayat (GP) on demand in two years.
To make India a hub for telecom equipment During Eleventh Plan the capital investment in
manufacturing by facilitating establishment of Telecom Sector is around Rs. 830,000 crore. Further
telecom specific SEZs. Nokia, Motorola, Flextronics, and Foxconn have set
up SEZ units within the country for manufacturing
mobile handsets.
Establishing Telecom Centres of Excellence Under Telecom Development and Investment
in premier educational institutions and other Promotion (TDIP) 7 Telecom Centres of Excellence
reputed organisations in the country in PPP (TCOEs) have been set up in PPP mode in various
mode. areas of Telecom Sector.

India has been led primarily by the wireless December 2009. The total number of rural
segment with over 10-12 million connections communications at the end of December
added every month on an average. 2009 was 174.53 million compared to 47
million at the start of the Eleventh Plan. In
 386 Mid-Term Appraisal of the Eleventh Five Year Plan

November 2004, an agreement was signed had issued 24 International Long Distance
with BSNL to provide public telephones under Service and 29 National Long Distance
the Bharat Nirman Programme to 66, 822 Service licenses (including BSNL) by
uncovered villages. The roll-out period was December 2009. The achievements up to
initially prescribed as 20, 40 and 40 per cent December 2009 of both public and private
respectively over a period of three years sectors are given in the Table 17.1:
ending November 2007. This period has since

Table: 17.1
Achievements of Public and Private Organisations up to December 2009

Service Total Market Wireline Wireless Market Rural Market

Provider Telephone Share of Subscribers Subscribers Share of Subscribers Share of
Subscribers total (in Million) (in Million) wireless (in Million) rural
(in Million) telephone subscribers subscribers
subscribers (%) (%)
(%)

Public 99.3 17.7 31.6 67.7 12.9 32.3 18.5

Private 462.8 82.3 5.5 457.4 87.1 142.2 81.5

Total 562.2 100.0 37.1 525.1 100.0 174.5 100.0

been extended. As on December 2009, 17.8. The year wise growth of telephone
61,186 village public telephones (98 per cent) connections during the Eleventh Plan (from
had been provided. However, BSNL has Apr 2007 to Dec 2009) is depicted in Figure
informed DoT that 4,520 villages cannot be 17.1:
provided public telephones due to various
reasons. Certain areas, for instance are 17.9. The Internet subscriber base has not
affected by extremism, some villages are de- grown as envisaged. As on December 2009,
populated, and certain villages are not the Internet subscriber base stood at 15.24
traceable or are those that have been million, out of which the number of Broadband
submerged. subscribers was 7.82 million and the share of
Broadband subscription in total Internet
17.7. The number of telephone subscribers subscription was 51.3 per cent. The number of
in India stands at 562.15 million at the end of subscribers of public and private ISPs stood at
December 2009. The overall teledensity in 10.78 million and 4.46 million respectively with
India has reached 47.88 as on December the corresponding market shares of 70.73 per
2009. The private sector is playing an cent and 29.27 per cent. BSNL holds 55.91
important role in the expansion of telecom per cent of the market share with reported
sector and the growth has been largely driven subscriber base of 8.52 million. MTNL is at
by the private enterprise. This has been second place with 2.26 million subscribers
possible because of the liberalisation regime followed by Bharti (1.25 million).
put forward by the Government. The share of
17.10. There is a growing need for more
private sector in total telephone connections is
bandwidth to support the spectacular growth
82.33 per cent as on December 2009 as
in cellular telephony. Besides, catering the
against a meager 5 per cent in 1999. There
sheer increase in the number of subscribers,
were 241 Unified Access Service, 2 Basic
greater bandwidth is also needed for value-
Service and 38 Cellular Mobile Service
added and better quality service. Government
Licenses by December 2009. Government
 Telecommunications 387

is committed to introduce 3G services and need to improve their productivity and asset
efforts are underway to auction the spectrum usage by pushing innovative value added

Figure 17.1:
Growth of Telephone connections during 11th Plan (Apr 2007 – Dec 2009)

Total 562.15

Private
Public
429.73
In million

300.49

462.82
205.87
340.18
142.09
220.94
98.38
76.54
54.62 134.48
36.29 44.97
46.29 81.01
3.85 6.81 30.06
11.45 99.33
71.39 79.55 89.55
43.17 46.48 52.09 61.08
32.44 38.16
Mar-01

Mar-02

Mar-03

Mar-04

Mar-05

Mar-06

Mar-07

Mar-08

Mar-09

Dec-09
Ye ar

for introduction of the 3G and WBA services services.. The policy for utilisation of funds
which are likely to transpire in the beginning of under Universal Service Obligation (USO)
2010-11. Policy has to ensure the creation of requires to be reworked in order to address
incentives for efficient use of spectrum. The expansion of rural telephony and rural
counterpart to this is a provision to recover broadband and in general ICT penetration into
spectrum from assigned users if it is not being the rural areas.
used as per the terms and to reassign the
same. Government should also consider Information Technology
permitting t spectrum trading as a measure of
efficiency. 17.12. The National e-Governance Plan is
one of the major Eleventh Plan initiatives that
the Department has prepared to contribute to
Remaining Plan Period: Agenda in the wider development and progress of Indian
Telecommunications society. In addition, there are other schemes
such as National Knowledge network (NKN)
17.11. The laying of optical fibre cables to the Information Technology Research
uncovered areas, especially rural areas must Academy (ITRA), Skill Development in IT
proceed towards completion. Appropriate which plans to train 10 million persons by
scheme of operation for auction and 2022, and is an important component of the
managing of 3G and Wireless Broadband National Skill Development Policy. The
Service (WBS) is called for. This is linked to principal targets set for the Department in the
the necessary jump in broadband connections Eleventh Plan are presented in Box 17.2.
including rural broadband. MTNL and BSNL
388 Mid-Term Appraisal of the Eleventh Five Year Plan

17.13. The achievements of the Department multi gigabit connectivity to all knowledge
in the Eleventh Plan are presented in Box institutions in the country is also being
17.3. implemented by NIC.

Box 17.2

Targets for the Eleventh Plan

o Encourage State Governments to initiate major citizen-centric mission projects under NeGP,
preferably in the PPP mode
o Fast replication of already successful e-governance programmes
o Encourage the adoption of e-procurement model in all government procurements
o Promote electronics/IT hardware and semiconductor manufacturing industry
o Address issues related to Cyber Security
o Set up Integrated Modern Townships for sunrise industries including IT and BPO
o Creation of National Knowledge Network
o Initiate projects for developing quality human resource which is industry ready
o Initiate projects for Gender Empowerment and development of SC/ST through IT
o Initiate programmes for development of quality faculty
o Encourage technology development in Indian languages
o Identify and encourage R&D in various thrust areas in IT sector.

17.14. The development of IT in China and 17.17. Activities related to Human Resource
other parts of East and South East Asia as Development have been undertaken to ensure
well as in Eastern Europe, are new challenges availability of trained human resource for the
that the Indian IT industry will have to face. IT sector. Initiatives include identifying gaps
The cessation of certain income tax benefits emerging from the formal sector, planning
to IT companies will add to the challenges. programmes in non-formal and formal sectors
However, the Indian IT industry has for meeting these gaps. The Department of
considerable depth and maturity and has to Electronics Accreditation of Computer
find a way to maintain its leadership role. Courses (DOEACC) Society was set up as an
Companies in the IT sector, especially those Autonomous Society of the Department to
in the hardware department, where Indian carry out Human Resource Development and
achievement has been limited, are in a related activities in the area of Information
position to avail of the benefits available in the Electronics & Communication Technology
Special Economic Zone (SEZ) scheme. (IECT). It is also a National Examination Body,
which accredits institutes/ organisations for
17.15. Some of the highlights of the specific conducting courses in the non-formal sector of
initiatives taken under the NeGP are IT education & training. C-DAC’s education
presented at Box 17.4. and training programs are based on finishing
school model. Various courses offered by
17.16. National informatics Centre (NIC) has these institutions are designed to produce
set up a country-wide communication network industry-ready professionals.
‘NICNET’ as the backbone network
infrastructure for Government informatics 17.18. As Indian IT industry is fast becoming
providing linkages to 611 districts covering 35 a global IT industry hub, the lack of adequate
States and Union Territories.. The National qualified researchers, engineers and faculty is
Knowledge Network (NKN) initiative to provide posing a major threat to the growth of the
 Telecommunications 389

Box 17.3
Key Achievements
Economy

• IT-ITES Exports have increased from US $ 31.1 Billion in 2006-07 to US $ 46.3 Billion in
2008-09, an increase of about 49 per cent.
• Production of electronics/IT hardware has increased from Rs. 66,000 crore in 2006-07 to
Rs. 94,690 crore (estimated) in 2008-09, an increase of about 44 percent.
• Contribution of Electronics & IT-ITeS Industry to GOP has increased from 5.2 per cent in
2006-07 to 5.8 per cent in 2008-09.
Employment
• Direct employment in IT-ITES Sector has increased from 1.62 million in 2006-07 to 2.20
million in 2007-08, a net addition of 0.58 million over last two years.
E-Governance
• Under the National e-Governance Plan approved by Government in May 2006, 76,100
Common Services Centres have been rolled out in 27 States by March. 2010.
Education
• IT leveraged to extend reach and increase impact. Initial phase of National Knowledge
Network started by upgrading 15 PoPs of NICNET at 2.5 gbps capacity.
Enterprise
• Open Source Software (BOSS) released.
• Param “Yuva” Super computing system commissioned.
E-Security
• IT Amendment (Act) 2008 enacted catering to emerging needs & developments.
Empowerment
• Software tools and fonts for all 22 constitutionally recognised Indian languages have been
released in public domain for free use.
• IT projects initiated to empower gender & SC/ST and development of North East region.

industry. There is an urgent need for set a target of skilling 500 million by 2022. DIT
strengthening the educational institutions to has been identified as one of the agencies to
meet this demand of IT industry as well as the implement skill development initiative in IT
new institutions that are being established by sector. Accordingly, it has a target to skill 100
the government. This can be achieved by lakh persons by the year 2022. A strategy to
producing large numbers of high quality scale up the existing training activities of
researchers and faculty. Accordingly, DIT has DOEACC and C-DAC has been drawn up.
put forward a proposal for setting up of IT
Research Academy (ITRA) programme with a 17.20. In order to disseminate knowledge
budget outlay of Rs.149 crore for five years. freely, DIT has taken up the Digital Library
The project will engage 40 participating initiatives and as part of this, copyright-free
institutions, 75 ITRA faculties, 25 adjunct books and manuscripts are digitised and
faculty, 480 ITRA PhD students. made available on the web.

17.19 Government has announced the 17.21. Efforts are being made by the Indian
National Skill Development Policy which has Computer Emergency Response Team
390 Mid-Term Appraisal of the Eleventh Five Year Plan

(CERT-In) to increase cyber security are found acceptable have to be implemented

awareness, education and skills in the with urgency.
country. Special training programmes are
being conducted for judicial officers and law 17.24. The IT hardware manufacturing
enforcement agencies. industry apparently suffers from
disadvantages due to tax structures as well
17.22. Over the years, with several new as cost of infrastructure. These will have to be
forms of computer crime, misuse and fraud addressed. The Indian ICT industry must find
taking place using computers and internet on a way to service the needs of various sectors

Box 17.4
Status of Major Schemes under NeGP

State Wide Area As of March,2010 SWANs in 19 States/ Union Territories (Haryana, HP,
Network (SWANs) Punjab, Tamil Nadu, Gujarat, Karnataka, Chandigarh, Delhi, Tripura,
Puducherry, Lakshadweep, Kerala, Jharkhand, West Bengal, Chattisgarh,
U.P, Sikkim, Maharashtra and Orrisa rolled out, while in other States and
Union Territories it is expected to be rolled out by September 2010.
Common Service As of December 2009, number of CSCs rolled out in 27 States is 76100.
Centres (CSCs) Remaining CSCs are expected to be rolled out by September 2010.
State Data Centres SDC proposals of 31 States/ Union Territories have been approved by
(SDCs) DIT.12 SDCs are expected to be set up by December 2010 and remaining
shall get operationalised progressively by December 2011.
Capacity Building As of March, 2010 State e-Mission Teams (SeMTs) have been established
in 22 States.

the rise, a need was felt to strengthen the from defence to social service sector
legislation pertaining to information security. programmes of the government like Mahtama
The Information Technology (Amendment) Gandhi National Rural Employment
Act, 2008 upgrades the existing legal Guarantee Scheme (MGNREGS) and
framework to instill confidence in the users Integrated Child Development Scheme (ICDS)
and investors in the area of Information etc in a way that meets the needs of the
Technology. This act inter-alia adds provisions users.The development of IT industry in India
to the existing Information Technology Act, has been entirely built on the foundation of the
2000 to deal with new forms of cyber crimes satisfaction of its consumers across the globe.
like publicising sexually explicit material in The same principle must apply for the
electronic form, video voyeurism; cyber expansion of IT activity and the acceptability
terrorism, breach of confidentiality and of IT vendors for government programmes.
leakage of data by intermediary and e-
commerce frauds. 17.25. Training programmes for IT
professional under the Skill Development
Remaining Plan Period: Agenda in Mission must move with speed, cyber security
Information Technology systems and basic R&D activities need to be
. strengthened as well.

17.23. Priority must be given to the

expansion and consolidation of IT hardware
manufacturing clusters. The recommendations
of the Hardware Task Force need to be
examined and those recommendations that
 Telecommunications 391

Indian Posts to provide value added services by developing

appropriate linkages with their agencies/
17.26. The Post Office has been in the organisations.
service of the nation for 150 years now and is
positioned as an integral part of the 17.27. The major achievements and policy
community life. Indian Post has a network of issues before the Department of Posts (DoP)
1.55 lakh post offices spread across the in Box 17.5 and Box 17.6
country and constitute the largest postal

Box 17.5
Major Achievements of DOP during Eleventh Plan

o The Brand Identity of India Post was enhanced with the launch of its new logo by the end
of first year of the Eleventh Plan, 12696 POs including those in the rural areas have been
computerised. 1304 Offices have been networked so far with the National Data Centre.
o Modernisation 1000 Post Offices and upgrading core operations under ‘Project Arrow’.
o Introduction of three Freighter Aircraft in hub and spoke manner for carriage of mails
between major cities and North East.
o Logistics Post Air operations was launched through the India Post Freighters at six
centres viz. Delhi, Mumbai, Kolkata (including North East), Bangalore, Nagpur and
Chennai.
o Provision of GPS in Mail Motor vehicles in the North Eastern Region for better services
and monitoring of mail transmission.
o Twenty-five new National Speed Post Centres have been established and 17 Premium
delivery centres for fast, dedicated and effective delivery of Speed Post articles. Up-
gradation of 41 existing Speed Post Centres in National network to handle additional
traffic.
o Parcel services revamped across the nation
o Establishment of Print to Post system at four stations to provide total mailing solutions to
bulk customers by integrating printing, pre-mailing services, dispatching and distribution
processes.
o 121 Postal Finance Marts set up.
o Instant Money Order (IMO) extended to 1705 centres.
o Established International Money Transfer arrangements with various countries.
Postal Life Insurance (PLI) activity revamped and employing Anganwadi workers as
insurance agent in rural areas for faster roll out of PLI.
o Switching over to web based software for faster delivery of Insurance products.
o Sale of gold coins introduced.
o Payment of wages to NREGS beneficiaries (3.54 crore) undertaken.

system in the world. In addition, there are 17.28. The development of our nation-wide IT
5,460 Panchayat Sanchar Sewa Kendras to base has made it possible for India Post to
provide basic postal services in the rural offer a range of e-enabled services to
areas. The department aims not only to customers. An online domestic money
discharge its obligations under USO but also transmission service is functional over 1,400
to effectively utilise this network and reach out locations across the country. The Electronic
392 Mid-Term Appraisal of the Eleventh Five Year Plan

Box 17.6
Important Policy Issues of DOP during Eleventh Plan

• Re-organisation of DOP and expanding into newer business potential areas such as
Global Business, Financial Services, Retail, Rural Business
• Redrafting the Indian Post Office Act, 1898
• Induction of technology: Computerising & Networking at all post offices, mail processing
systems
• New division to be created to specifically target rural postal network
• Transforming Postal Life Insurance into a commercial business entity
• Transformation of Human Resource of the Department into a technology savvy business
oriented work force
• Development of Postal Estates for commercial exploitation and revenue generation

Clearance Service (ECS) provides an Pradesh Postal Circle in 2006 the payment of
electronic method of effecting payment to wages under MGNREGA is currently
customers. The department is offering ECS in operational in 19 postal circles across 21
all 15 locations of RBI and 21 locations of SBI States and more than 90,000 post offices.
for payment of monthly interest under the Nearly, 36 million MGNREGA accounts have
Monthly Income Scheme (MIS). Electronic been opened and approximately Rs. 4,000
payment (e-payment) services for utilities are crore has been disbursed in the first half of
available to customers presently, at 8,457 2009/10. It is expected that up to 5 million
post offices and will be soon extended to all MGNREGA accounts will be opened in post
12,696 computerised post offices. The offices during the remaining years of the
revenue from various premium and value Eleventh Plan. Old Age Pension is being paid
added products have increased from Rs. 426 through 2 million postal savings accounts in
crore in 2003/04 to Rs. 1,435 crore in Bihar, Delhi, Jharkhand and the Northeast and
2008/09. India Post has actively pursued the through money orders in Jammu & Kashmir,
objective of government for financial inclusion Karnataka, Himachal, Gujarat, Rajasthan and
in rural India using its vast network. The total Tamil Nadu. India Post has tied up with SBI to
number of postal savings accounts has sell its deposit and savings products through
increased from 1.2 million in 2003-04 to 20.5 identified post offices. Initially five States –
million in 2008-09. The number of rural Postal Andhra Pradesh, Jharkhand, Maharashtra and
Life Insurance policies has increased from 2.7 Tamil Nadu are being covered in this
million in 2003-04 to more than 7 million in scheme. It is expected to extend to 23 States
2008/09. and Union Territories.

17.29. The rapid growth in economic Information & Broadcasting

development has led to an increase in the
requirement of postal services. The 17.31. The media sector has been one of the
Department of Posts has introduced franchise fastest growing sectors in the economy.
outlets in places where it is not possible to Digitalisation has promoted convergence of
open departmental post offices. So far 850 technology and thus created new business
franchisee outlets have been opened. opportunities. The Eleventh Plan outlay for the
Ministry was fixed at Rs. 5,439 crore.
17.30. Department of Post has been given
the responsibilities to disburse wages to the 17.32. Significant initiatives have been made
MGNREGA beneficiaries through the Post by the Press Information Bureau (PIB) in
Office Savings Account. Starting with Andhra dissemination of information relating to the
 Telecommunications 393

flagship programmes of government. The Accordingly, targets for digitisation have been
Directorate of Audio Visual Publicity (DAVP) worked out beginning with Delhi going digital
has initiated various programmes to by 2010 and shifting to digital transmission
disseminate information on the government’s from the present analogue mode by 2017.
flagship programmes as well as on various Funds have been allocated on priority to both
issues covering national integration, AIR and Doordarshan for this scheme and
communal harmony and other elements of could not be absorbed, as the schemes are
national and social importance with special yet to get approval. The performance of
emphasis on the Northeast. The Ministry is Prasar Bharati needs to fast track its actions
implementing various schemes in the film to achieve the set targets. The Host
sector at a cost of Rs. 450 crore in the Broadcaster, Doordarshan is to provide TV
Eleventh Plan which includes the digital coverage of the Commonwealth Games in
restoration and preservation of the High Definition TV mode and also provide
cinematographic heritage of the country. All games feed to the International community in
India Radio and Doordarshan have Rs. 1,618 HDTV mode. HDTV is quite new to India. It
and Rs. 3,032 crore as approved expenditure has been decided that Expert Production
respectively for the Eleventh Plan. The AIR Crew and required HDTV equipment
today has 231 stations in its network which (standard / High-end I Ultra High end) would
virtually covers the entire country in terms of be hired from the international market for
both population and geographical area. which a scheme was approved at a cost of
Doordarshan has played an important role in Rs.483 crore. In respect of HDTV
bringing audio-visual entertainment and news broadcasting, Cabinet has approved Rs. 165
into homes and reaches 92 per cent of the crore for creation of the necessary
population through a network of 1,414 infrastructure in four metros for programme
terrestrial transmitters. Further, Doordarshan production and carrying out of terrestrial
has introduced Direct-to-Home (DTH) services transmission. The scheme also envisages
to cover the entire country. providing satellite transponder to link the four
metros. Although terrestrial transmission in
17.33. The Government has constituted a HDTV mode would not be possible for the
Sub Committee under the ICE Committee to Commonwealth Games, Dooradarshan has
work out the road map for Going Digital assured that the people would be able to view
keeping in line with the international trends. the games in satellite mode.
 18
Urban Development

CONTEXT OF THE ELEVENTH FIVE YEAR JAWAHARLAL NEHRU NATIONAL URBAN

PLAN’S FOCUS ON URBAN DEVELOPMENT RENEWAL MISSION AND ITS KEY
OBJECTIVES
18.1 Urbanisation in India has occurred more
slowly than in other developing countries and 18.4 The transformation of Indian cities faces
the proportion of the population in urban areas several structural constraints: weak or outdated
is only 28 per cent. The Pace of urbanisation is urban management practices including planning
now set to accelerate as the country sets to a systems and service delivery models, historic
more rapid growth. 300 million Indians currently lack of focus on the urban poor, incomplete
live in towns and cities, underserved by utilities, devolution of functions to the elected bodies as
with inadequate housing, and now choking in per 74th Constitutional Amendment Act,
traffic. Within 25 years, another 300-400 million unwillingness to progress towards municipal
people will be added to Indian towns and cities. autonomy, and an urban management and
If not well managed, this inevitable increase in governance structure that is fragmented
India’s urban population will place enormous between different state-level agencies and
stress on the system. urban local bodies (ULBs).

18.2 The Eleventh Five Year Plan noted that 18.5 To upgrade the quality of life in Indian
the contribution of the urban sector to India’s cities, and to promote inclusive growth, a major
GDP, which grew from 29 per cent in 1950-51 thrust is necessary to address the need for
to the present, 62 -63 per cent is expected to sustainable development of physical,
increase to 70-75 per cent by 2030. It infrastructure in cities, including development of
envisioned Indian cities to be the locus and technical and management capacity for
engine of economic growth over the next two promoting holistic growth with improved
decades and suggested that the realisation of governance. Accordingly, the Jawaharlal Nehru
an ambitious goal of 9 to 10 per cent growth in National Urban Renewal Mission (JNNURM), a
GDP depends fundamentally on making Indian seven-year programme was launched in
cities more liveable, inclusive, bankable, and December 2005. JNNURM provided for
competitive. allocation of substantial central financial
assistance to cities for infrastructure, housing
18.3 The Eleventh Plan included several development and capacity development.
schemes to promote an orderly and sustainable
process of urbanisation which would support 18.6 Assistance under the programme is
growth and inclusive development. The flagship provided after approval of City Development
scheme is the Jawaharlal Nehru National Urban Plans (CDP) and DPRs and signing of MoAs for
Renewal Mission. essential urban reforms. Because of these pre-
requisites there was a ramp-up period and
sanction and implementation of projects could
start only in 2007-08.
 Urban Development 395

18.7 The programme has four components: • Levy of reasonable user charges by ULBs
• Earmarking of budget for basic services to
• Urban Infrastructure and Governance
the urban poor.
(UIG): UIG Component will provide for
urban infrastructure projects relating to • Rationalisation of stamp duty to not more
water supply, sewerage, solid-waste than 5 per cent.
management, roads etc in 65 Mission cities.
The component has been allocated Rs. • Enactment of Community Participation Law
31,500 crore. and Public Disclosure law

• Basic Services to the Urban Poor

(BSUP): Housing and slum development Urban Local Body Level Reforms
projects in 65 Mission cities will be part of
BSUP. The total allocation towards this is • E-Governance Set-up
Rs. 16332 crore. • Shift to Double Entry Accounting
• Property tax – 85 per cent coverage
• Urban Infrastructure and Development • Property tax – 90 per cent collection
Scheme for Small and Medium Towns efficiency
(UIDSSMT): This component will provide
• 100 per cent cost recovery – O&M for
for urban infrastructure projects relating to
Water Supply
water supply, sewer, solid-waste
• 100 per cent cost recovery – SWM
management, roads etc in small and
medium towns. The total allocation towards • Internal earmarking of funds for
this in the Eleventh Plan is Rs. 11,400 services to Urban Poor
crore. (ii) Optional Reforms
• Integrated Housing and Slum • Repeal of Urban Land Ceiling & Regulation
Development Programme (IHSDP): This Act.
component will provide for housing and
integrated slum development in Non- • Bye-laws for water harvesting and re-use
mission cities/towns. The total allocation to and re-cycled water.
IHSDP in the Eleventh Plan is Rs. 6811
crore. • Introduction of Property Title Certification
System in ULBs.
18.8 The funding is linked with
implementation of a list of both mandatory and • Earmarking 20-25 per cent of developed
optional reforms by states and ULBs. These land for LIG/EWS category.
are:
• Computerised registration of land and
property.
(i) Mandatory Reforms
• Encouraging Public-Private Partnership
State Level Reforms
MID-TERM APPRAISAL OF JNNURM
• Implementation of decentralisation
measures as envisaged in 74th CAA-
18.9 As the first national flagship programme
Transfer of functions, constitution of
for urbanisation JNNURM has been effective in
Metropolitan Planning Committees and
renewing focus on the urban sector across the
District Planning Committees
country and has helped create a facilitative
environment for critical reforms in many states.
• Adoption of modern, accrual based double Its impact has been supplemented by other
entry system of accounting in ULBs. schemes discussed later. The programme has
• Reform in Rent Control allowed investments to flow for basic services in
cities, particularly for the urban poor. It has
• Introduction of systems of e-governance been successful in raising the aspirations of
like GIS and MIS in ULBs.
396 Mid-Term Appraisal of the Eleventh Five Year Plan

ULBs and enabled them to execute projects at catalysing significant investments into the
a much larger scale than they were used to. Of physical infrastructure of cities.
equal significance is the fact that the
programme has triggered the creation of many • As of September 2009, the programme has
innovative ideas in states that will increase their approved 2,523 projects with a central
ability to maintain the momentum of the urban assistance commitment of Rs. 52,687
transformation they have initiated. It has also crores, amounting to nearly 80 per cent of
made the states aware of the range of issues to the total programme funds. In turn, this
be addressed and has provided a central assistance has been matched by
comprehensive framework for governance Rs. 44,334 crores in complementary
improvements. JNNURM has expanded the commitment from the states and the ULBs,
concept of city improvement beyond roads, translating to a total of Rs. 97,021 crores of
flyovers and traffic management while slums new committed investment into urban
are moved out of the way, to concerns with projects during the plan period to date.
sanitation, water, and public transportation, and
now even to more fundamental needs and
• Already, 17 states have submitted projects
rights of the underserved poor in the cities.
exceeding 75 per cent of their allocation
target.
18.10 As should be expected in any major
new thrust, there are variations in progress • Out of this combined commitment from the
across the country. In the four years since this centre, state and ULBs, Rs. 50,340 crores
major programme was launched, some states has been in UIG, Rs 12,820 crores in
and cities have progressed further than others UIDSSMT, Rs. 25,343 crores in BSUP and
towards tangible results. The good news is that Rs. 8,517 crores in IHSDP.
the need to manage the process of urbanisation
and to improve the conditions in their towns and • Out of the Rs. 52,687 commitment from the
cities is now on the agenda of all states, centre, Rs. 21,513 crores has already been
ranging from Bihar, which had been ‘de- released to the states to date, i.e. around
urbanising’ so far, to Maharashtra and Gujarat 40 per cent of the approved funds.
which have been grappling with urbanisation • 139 Projects completed under UIG and
issues for many years. UIDSSMT in 103 cities/towns at the end of
December, 2009 has meant substantive
18.11 However, as the programme pushes and much desired changes like improved
forward, there is need for better and consistent water supply, better sanitation, improved
implementation of reforms, more emphasis on drainage, better connectivity for city
holistic urban renewal, and need for capacity at commuters, and better waste management.
Centre, state and ULBs to ensure effective
implementation on the ground. On these fronts,
State governments and urban local bodies need (i) Much of this investment has been
more support and better guidance to build the directed towards the provision of critical
financial, social and governance capacity basic services that are essential to
needed to sustain the new momentum on inclusiveness.
creating inclusive and liveable cities.
• Nearly 80 per cent of the funds under UIG
18.12 The Mid-Term appraisal of JNNURM and more than 90 per cent of funds under
highlights the following: UIDSSMT have been committed to projects
in water supply, sewerage, drainage and
A) JNNURM has been effective in solid waste management, reflecting the
renewing focus on the urban sector across reality that most cities still have significant
the country; however the need to raise back log in the provision of basic urban
capacity and investment resources is still services to their residents.
substantial. It has been successful in
• 66 per cent of BSUP funds have been
committed to slum redevelopment projects,
 Urban Development 397

with the rest targeted at building support (iii) While take-up of programme funds
infrastructure for slum housing. was slow in the early part of the mission
period, especially amongst states and cities
18.13 This is good news since these are the
that did not have plans and project priorities
most fundamental needs of urban citizens
in place, there is a significant acceleration in
which did not receive the due attention earlier.
the last 24 months.
Another reason why these are the earliest
schemes being undertaken in many cities is
that these are far easier to design and • While only Rs 967 crores were approved in
implement than, say, urban transportation 2005-06, overall take-up showed a
(which has received around 10 per cent of significant increase to Rs 17,347 crores in
overall allocations so far), especially as they do 2006-07, Rs 14,668 crores in 2007-08, and
not face issues of land acquisition etc. Rs 18,928 crores in 2008-09.
• This is true across states. Tamil Nadu, for
(ii) The programme has created renewed example, increased its take-up from 23 per
focus on cities and allowed states and ULBs cent in 2006-07 to 95 per cent by 2008-09,
to raise their aspirations. Maharashtra from 52 per cent to 92 per
cent over the same period, Gujarat from 35
• Capital investments triggered by JNNURM per cent to 88 per cent and Bihar from 3 per
have often been three to four times the cent to 67 per cent.
erstwhile size of capital investments at
ULBs. For instance, Surat’s estimated • Of course, states like Maharashtra, Tamil
three-year capex before JNNURM was Nadu, and Gujarat that had ‘shovel ready’
around Rs. 525 crores compared to Rs. urban projects have been better at utilising
1,835 crores in UIG projects sanctioned; in their programme allocations.
Madurai, the equivalent numbers were Rs. (iv) Many states are still lagging behind
102 crores and Rs. 839 crores. States and in programme utilisation, due to lack of
ULBs credit JNNURM with having given enabling capacity and funds.
them the power of raising their aspirations
and taking on projects at a much higher • Some states have claimed less than 30 per
scale than they were used to. cent of the funds allocated to date, including
• Over the last five years, the renewed focus Goa (-), Delhi (~6 per cent), Mizoram (~10
on the urban sector has also resulted in per cent), Chandigarh (~17 per cent),
many states experimenting with new Nagaland (~20 per cent), Sikkim (~20 per
programmes to generate investment cent), and Manipur (~30 per cent).
resources, facilitate pro active management • While unwillingness to adopt the reform
of urban growth, and build new capabilities conditionality is a factor explaining low
at the local level. Whether through pooled absorption in some of the states, in many
funding programmes at the state level such the primary driver is the lack of sufficient
as in Maharashtra, the appointment of city capacity at the state and ULB level to
managers in Bihar, or the creation of new develop plans, identify project priorities,
planning systems in Gujarat, states have raise matching funds and execute projects.
started exploring innovations to further the
agenda of creating liveable cities. • Government bodies in States and cities do
not have professionals to manage urban
• Draft Credit ratings have been assigned to projects. Considering the huge number
62 ULBs. required for the urban projects, it will be
• 129 Projects in 28 cities have also been worthwhile to develop a large cadre of
sanctioned for Bus Rapid Transport System ‘specialists’ in this area. Departments and
(BRTS) and construction of roads / flyovers ministries at Centre/State level will have to
for better organised urban transport. strengthen their organisations and
capabilities.
398 Mid-Term Appraisal of the Eleventh Five Year Plan

(v) The mission needs to do more to in urban settings for the present users of
push states and cities to ensure financial the land who may be displaced and for
sustainability by tapping other sources of those who will benefit from future use of it.
funds such as user charges, monetisation of Nevertheless, experience outside India and
urban land, and property taxes. in India too, indicates that the capital value
of land can be released for the benefit of
18.14 JNNURM, though a large programme, the city in ways suited to specific situations
is only the beginning of a process of urban and requirements.
renewal and management, whose scale will be • The ability to recover fair user charges for
unprecedented in human history, comparable utilities will be critical for the sustainability of
with only the scale of urbanisation in China the infrastructure.
currently underway. Estimates by expert
groups, in the final stages of validation, are that • Better management of property taxes can
around Rs 3-4 lakh crore rupees per year may increase revenue resources. While
be required for infrastructure in Indian towns JNNURM has already directed attention to
and cities, 50-60 per cent of it in new capital this, cities need to improve realisation of
investments. The requirement is truly property taxes significantly through
staggering when compared with the outlay of improved compliance, and ensuring
66,000 crore rupees over seven years in assessments that truly reflect the underlying
JNNURM. It seems very difficult to raise so value of assets and cost of services
much money, especially when there are so provided.
many other competing demands in the B) JNNRUM has helped initiate a
country—for education, healthcare, rural comprehensive process of urban reforms
infrastructure, and other areas. Nevertheless within States and ULBs. However, the pace
the needs of urban development must be met and depth of reforms needs to pick up. The
because they are equally important for the first four years of the programme have seen
goals of inclusive growth in the country, some reform progress at the state and ULB
especially when half the country’s population level, though, many reforms are still
will be living in towns and cities within the next pending.
25 years.

(vi) Where will this money come from? • Ten states have transferred the 12th
Schedule Functions from the state to the
ULB level; 20 states have constituted
Four channels have not been sufficiently tapped
DPCs; only four states have constituted
so far:
MPCs.
• Private money must be attracted on a large
• The Urban Land Ceiling and Regulation Act
scale into urban renewal schemes. For this,
(ULCRA) has been repealed in all but one
several conditions are required, including
state.
improvement of urban governance, public-
private partnership models, credible private • 13 out of 65 cities have declared completion
organisations, and greater willingness of of e-governance set up; 30 have shifted to
citizens to pay fair user charges for utilities. double entry accounting system; 46 cities
For all these reasons, private money has so have internal earmarking of funds for
far not contributed much towards urban services to the urban poor.
improvements with JNNURM
• Many of the tougher reforms are still
• Urban land held by various government pending including property tax collection
agencies, sometimes underutilised and and efficiency (only 14 cities have achieved
sometimes ‘squatted on’ by others, has 85 per cent coverage), water supply cost
great potential to provide funds for city recovery (only 6 cities have achieved 100
infrastructure. However land acquisition and per cent recovery), reform in rent control
use is always a contentious issue especially (only seven states), transfer of city planning
when stakes are high, as they invariably are
 Urban Development 399

functions (10 states) and transfer of water local bodies to undertake these reforms and
supply and sanitation (13 states). improve on-the-ground impact monitoring of
reforms. This renewed focus on capacity
(i) Progress has been slow especially
building should emphasise a shift from
on the tougher set of reforms.
physical capacity building to financial,
institutional and managerial capacity.
• Reforms aimed at improving procedural
efficiencies of ULBs by introducing e- C) Capacity building funds can be used
governance need to be accelerated. more effectively. JNNURM earmarked 5 per
cent of the programme funds for capacity
• Progress on reforms relating to property tax building. Assessment and discussions with
and user charges aimed at raising city the states point to opportunities for better
revenues has been slow. Though some use of these funds to support capacity
cities have made progress, overall progress initiatives in the states.
has been far less in this area than in
procedural reforms because of various
• Records indicate that around Rs. 95 crore
reasons.
has been spent by HUPA out of a potential
• Progress on governance and local earmark of Rs. 1,160 crores and around Rs.
accountability reforms has been slowest. An 55 crores has been spent by MOUD out of
essential component of the reforms and, a potential earmark of Rs. 1,575 crores.
according to many experts, the most Most of the amount spent so far, (nearly Rs
important one is to ensure that our cities 120 crores, from the two ministries) have
are responsive to their citizens’ needs, and been for PMU, PIU, IRMA and rating
hence sustainable, is the devolution of agencies.
various functions downwards to local bodies
and to functionaries directly accountable to • Many states have indicated that they face
the citizens. In this area of reforms, the difficulties in accessing these capacity
progress has been the least so far. Even funds. Some states, such as, Bihar have
where the structures and positions required been relying on external agencies for
have been created, functions have not been capacity funds e.g. DFID-SPUR project to
passed down and financial powers are not spend Rs. 400 crores in capacity building
delegated. Thus reforms have proceeded initiatives over six years.
mostly in a ‘box-ticking’ manner without real
substance. D) Detailed analysis of state-wise
progress reveals several opportunities to
(ii) The real impact of even the revamp/redesign the project approval and
“completed” reforms on the ground is monitoring process.
sometimes unclear.
18.15 It is observed that there is wide
• As of now, there is no systematic and variation in performance across states. While
effective mechanism in place to understand some states have nearly used all of their
whether the reforms are being implemented allotment, many states have barely claimed a
in earnest. While in some reforms like the meaningful share of their allocation. Also, there
repeal of ULCRA, the outcome is clear is wide variation in the physical progress of
(although the amount of land that has come projects on the ground.
into the marker under ULCRA needs to be
clarified), in other areas like ensuring • Many states and cities have inadequate
effective and functioning MPCs, states have capacity to plan for complex, large scale
fallen short of the desired outcomes even projects.
as they claim achievement of the
associated conditionality. • There are problems relating to coordination
with Railways, Forestry and other
• There is a clear need to improve the departments, which need to be addressed
capacity of state governments and urban at the central level.
400 Mid-Term Appraisal of the Eleventh Five Year Plan

• States and cities have also pointed out that OTHER URBAN RENEWAL SCHEMES
lack of adequate contractor capacity is a
bottleneck. Therefore, qualified 18.16 Besides JNNURM, there are various
professionals / contractors and skilled other Central Sector and Centrally Sponsored
persons must be developed proactively. Schemes for creation of infrastructure, slum
• Surge in the price of raw materials and development and for providing basic amenities
changes in market prices relative to rates in the urban sector. The main schemes are
set by the government have often resulted described below.
in cost escalations that have to be covered
by the state government and the ULBs. Urban Transport
Many ULBs have to go for several rounds of
tenders without being able to close 18.17 National Urban Transport Policy
contracts. Since the mission does not (NUTP) 2006 seeks to promote integrated land
support any escalation, and states and use and transport planning and offers Central
ULBs have limited financial capacity, cost Government’s financial support for investments
escalation has further exacerbated delays in public transport and infrastructure. It
and held up projects. encourages capacity building at institutional and
individual levels.
• In the case of housing, constraints in credit
availability for beneficiary contribution, and Schemes for Supporting Urban Transport
low sanctioned limits on cost of housing Planning
units further add to the execution difficulties.
Land acquisition is also a major issue that is
constraining rapid take-up of affordable 18.18 To support preparation of Detailed
housing projects. Project Reports (DPRs) for Urban Transport
Projects, the Government has enhanced
• Many states have not been able to release Central Financial Assistance from 40 per cent
matching funds even after approval of to 80 per cent as 40 per cent was not found
DPRs by the central government. Often this adequate by the States. The Schemes cover a
leads to project delays and cost wide gamut of urban transport matters including
escalations. comprehensive and integrated land use and
mobility plans, Intelligent Transport System
E) Emphasis has to shift even more
(ITS), launching of awareness campaign in line
from ‘projects’ to holistic urban renewal and
with National Urban Transport Policy, 2006.
an integrated view of a city’s development.
Against the Eleventh Plan allocation of Rs 152
While cities did submit CDPs as part of their
crore, the anticipated expenditure for the first
project proposals, the emphasis on urban
three years is Rs 19.83 crore (13.04 per cent).
renewal and long term planning of cities is
In addition, a new scheme for capacity building
lagging.
for sustainable urban transport at national, state
and city level as well as Institutional level has
• Limited design capacity at the ULB level been initiated in 2009-2010.
and lack of data availability have led to a
high degree of variability in the quality of Financing of Buses for Urban Transport
CDPs; these CDPs are seen by cities as a under JNNURM:
one time exercise meant to achieve the
conditionality of JNNURM rather than as
18.19 To streamline city transport, financial
living documents that represent the
assistance has been provided for purchase of
aspirations of the city and all stakeholders.
buses for 65 Mission cities under JNNURM as a
part of the second economic stimulus package.
15260 buses with admissible Central
assistance of Rs.2092 crore have been
sanctioned. The assistance is tied to urban
transport reforms to be undertaken at state and
 Urban Development 401

city levels like setting up Dedicated Urban implemented under PPP model with Viability
Transport Fund, Unified Metropolitan Transport Gap Funding from the Central Government.
Authority, and Parking Policy. More than 5000
modern, intelligent transport system enabled, 18.24 The choice of appropriate technology
low floor and semi-low floor buses have already for public transport would depend on city-
been supplied to about 30 cities. As a result, 34 specific land-use and transport needs. In
cities across India would have organised City general, cities having a population of four
Bus Services for the first time. It will facilitate million and above may require Metro Rail
setting up of a National Public Transport systems on high demand corridors. On
helpline and common mobility cards across corridors with lesser demand, other options like
India. Light Rail Transit (LRT), Mono Rail, and Bus
Rapid Transit System (BRTS), use of Intelligent
Awards for excellence in Urban Transport Transport System (ITS), Traffic Management
etc. need to be given preference.
18.20 In order to recognise the efforts in field
of urban transport by various cities and National Urban Water Awards
parastatal institutions/agencies, awards for PPP
initiatives, Mass transit systems, BRTS, 18.25 The National Urban Water Awards have
Intelligent Transport System, etc. have been been instituted with the purpose of recognising
initiated. Four Centres of Excellence have been urban local bodies, water boards and
set up in IIT-Delhi, IIT-Madras, CEPT, organisations for effective water management
Ahmedabad and NIIT-Warangal. and improvement in service delivery.

Mass Rapid Transit System (MRTS) Service Level Benchmarking

18.21 There is a growing demand from 18.26 Investments in urban infrastructure

several states for setting up metro projects, have not always resulted in corresponding
which are highly capital intensive and wherein improvements in levels of service delivery.
revenues from fares are not able to sustain the
capital and operational costs. The metro 18.27 As such, national benchmarks have
projects sanctioned so far alone would need been adopted in six critical areas related to
about Rs.70,000 crore. The allocation for metro Water supply, Sewerage, Solid waste
projects for the Eleventh Five Year Plan is Rs. management, Storm water drainage, E-
3303 crore (including Rs. 1203 crore for Pass governance and Urban Transport.
Through Assistance).
18.28 The Thirteenth Finance Commission
18.22 The anticipated expenditure for the first has included service level benchmarks as a
three years of the Eleventh Plan is Rs 8318 part of the incentive framework for general
crore which includes Pass Through assistance performance grants.
of about Rs. 5027 crore (JICA Loan). Steep
rise in expenditure is due to the time bound National Urban Sanitation Policy
completion of Delhi Metro Rail Project including
extension to NOIDA and Gurgaon, in view of 18.29 This policy aims to create cities free
Commonwealth Games. Further Bangalore, from open defecation practices. Under the
Kolkata, and Chennai Rail Projects have been policy, annual ratings of cities on select
sanctioned and are under various stages of sanitation related parameters shall be carried
implementation. out and the best performing cities shall be
recognised. The policy seeks to improve the
18.23 It is worth noting that ways are being status of sanitation in the country through
found for private sector participation in major formulation of state sanitation strategies, city
urban transport projects. The Mumbai and sanitation plans and a national awareness
Hyderabad Metro Projects are being generation campaign.
402 Mid-Term Appraisal of the Eleventh Five Year Plan

CAPACITY BUILDING SCHEME FOR URBAN where’ basis, to increase the efficiency and
LOCAL BODIES productivity of ULBs and to provide timely and
reliable information to the citizens.
18.30 A scheme for Capacity Building for
Urban Local Bodies has been initiated for 18.34 The Planning Commission approved the
supporting implementation of various reforms. scheme to be implemented as a part of
This is supported by the creation of nine JNNURM for 35 cities with population over 10
Centres of Excellence in reputed institutes like lakh and a new CSS Scheme for other cities
IIT, Chennai, IIT, Guwahati, IIM, Bangalore, and towns. However, the new CSS for cities
ASCI, Hyderabad, Centre for Science and and towns would have to wait till the
Environment and Lal Bahadur Shastri National implementation is watched in 35 cities where it
Academy of Administration. is a part of JNNURM. Only a small amount has
been incurred during the first three years. The
Scheme for Urban Infrastructure scheme has been extended to all 65 mission
Development in Satellite Towns/Counter cities to be implemented as part of JNNURM.
Magnets of Million Plus Cities The implementation of the scheme needs to be
expedited as only seven projects have been
18.31 The scheme is being implemented with approved so far.
a view to develop urban infrastructure facilities
such as drinking water, sewerage, drainage and General Pool Accomodation (Residential
solid waste management etc and satellite and Non-Residential)
towns/counter magnets around the seven
mega-cities so as to reduce pressure on the 18.35 The Scheme provides for office and
mega cities. Since the scheme was recently residential accommodation for central
approved in July, 2009, only token allocation government departments and employees
has been provided so far . CDPs and DPRs through CPWD. Against an allocation of
are being prepared by the state governments. Rs.1770 crore for GPRA & Rs.1100 crore
An amount of Rs 200 crore is allocated in the GPOA for the Eleventh Plan, only Rs. 810.88
annual plan 2010-11. crore has been incurred during the first three
years.
Pool Finance Development Fund:
Rajiv Awas Yojana (RAY)
18.32 The Pooled Finance Development Fund
was approved in 2006 to help ULBs to raise 18.36 The scheme was announced by the
funds from capital markets for urban Honourable President in her address to the
infrastructure projects. An amount of Rs.2500 Parliament in June, 2009 with a vision to make
crore was provided for the Eleventh Plan. the country slum free. The details of the
However, the scheme could not pick up due to scheme including coverage of cities, availability
subdued market conditions and against of land, admissible component, financing
allocations of Rs.100 crore for 2007-08 and mechanism, involvement of PPP, etc. are being
Rs.20 crore for 2008-09, expenditure of only worked out. Rs.150 crore has been earmarked
Rs.5.66 crore was incurred. For 2009-10 also for RAY for 2009-10.
only a token amount of Rs.0.01 crore was
provided. The scheme needs to be modified in Interest Subsidy Scheme for Housing the
view of its poor performance. Urban Poor (ISSHUP)

National Mission Mode Project for E- 18.37 Under this scheme interest subsidy of 5
Governance in Municipalities (NMMP) per cent per annum is proposed to be provided
to commercial lenders for lending to the EWS
18.33 The scheme, with Eleventh Plan outlay and LIG segment of the urban areas. The
of Rs. 583 crore, aims at providing “Single interest subsidy is expected to leverage market
Window” services to citizens on ‘any time, any funds to flow into housing for the poor. An
amount of Rs 1378 crore was provided in the
 Urban Development 403

Eleventh Plan, of which only Rs 132 crore (10 of Rs.200 crore was provided for the Eleventh
per cent) has been utilised during 2009-10 (no Plan and the anticipated expenditure for the first
expenditure was incurred during the first two three years is Rs. 174 crore (87 per cent).
years)
National Capital Region Planning Board
18.38 The poor uptake in this scheme is (NCRPB)
because the challenges of providing housing for
the poor are many and an integrated approach 18.43 The NCR Planning Board is providing
is required. The Rajiv Awas Yojana, which is financial assistance to create civic amenities in
under formulation is seeking to take the holistic the National Capital region (NCR). The
view that is necessary. assistance is in the form of soft long term loans
to the participating State Governments and
Swarna Jayanti Shahari Rozgar Yojana other parastatals for infrastructure development
(SJSRY) projects in the constituent NCR states and
identified Counter Magnet Area (CMA) towns.
18.39 SJSRY aims to encourage urban self- Rs. 900 crore was approved for the NCRPB for
employment through subsidy and loan for skill the Eleventh Plan. Budgetary support of Rs
development training on a funding pattern of 200 crore provided for the first three years has
75:25 between Centre and States. An allocation been fully utilised. The Board generates
of Rs 1750 crore has been made in the external resources also. NCRPB has financed
Eleventh Plan. 230 infrastructure projects involving total
outlays exceeding Rs. 14929 crore till 31
18.40 Based on the independent evaluation of March, 2009. It has sanctioned a total loan
the scheme in 2006 and the feedback received amount of Rs. 5995 crore for projects and has
from States, ULBs and other stakeholders the disbursed loans of Rs. 4057 crore as on 31
scheme has been revamped and revised March, 2009.
guidelines issued. An Expert Group is being
constituted to recommend the methodology and WAY FORWARD
guidelines for undertaking a comprehensive
survey for identification of BPL families in urban IMPROVE CAPACITIES FOR MANAGEMENT
areas. AND LOCAL GOVERNANCE

18.41 Against the allocation of Rs. 1750 crore, 18.44 Urbanisation can be a powerful engine
anticipated expenditure for the first three years of economic growth and social vibrancy. Cities
of the plan is Rs 1391 crore which comes to aggregate resources, thus providing benefits of
more than 80 per cent. scale. Cities with diversity stimulate creativity,
innovation and provide opportunities for
Integrated Low Cost Sanitation Scheme employment and entrepreneurship. India needs
(ILCS) to continue to invest in the process of managing
the country’s urbanisation effectively to realise
18.42 The objective of the scheme is to these benefits.
convert/construct low cost sanitation units
through sanitary two pit pour flush latrines with 18.45 Driving the next generation of
super structures and appropriate variations to reforms: With the foundations created by
suit local conditions. Funding pattern is JNNURM, it is worth considering the next set of
75:15:10 between Centre, State and reforms that will maintain and further accelerate
beneficiaries. The scheme has helped in the pace of urban transformation. These
construction/conversion of over 28 lakh latrines reforms are critical to achieving the goals of the
to liberate over 60,000 scavengers so far. 911 mission, and mainly revolve around:
towns had been declared as scavenger free.
Only four states viz., Bihar, Uttar Pradesh, • Governance: Meaningful reforms have to
Uttrakhand and Jammu & Kashmir have happen that enable true devolution of power
reported existence of dry latrines. An amount
404 Mid-Term Appraisal of the Eleventh Five Year Plan

and responsibilities from the states to the guide its planners and stakeholders in the
local and metropolitan bodies. journey of change. In democratic societies, the
vision must be an inclusive one. It must include
• Financing: Devolution has to be supported
the needs of all, even the poorest citizens. The
by more reforms in urban financing that will
vision must emerge from deliberations amongst
reduce cities’ dependence on the Centre
the stakeholders, though it may be stimulated
and the states and unleash internal revenue
by propositions by experts. The weaknesses in,
sources.
or even absence of, a process of inclusive
• Planning: We need to create more consultation, is the Achilles’ heel of urban
expertise in urban planning within our cities renewal processes in India.
that will move cities from sporadic and ad-
hoc growth to a planned and facilitated 18.48 The Mid-Term Appraisal of JNNRUM
usage of land and space. and other schemes underway for urban
improvements brought together various
• Professionalisation of service delivery: stakeholders in India and international experts
Reforms will have to address the with experience in transforming urban
development of professional managers for conditions in other countries. Insights into the
urban management functions, who are in process of ‘making it happen’ with the
short supply and will be required in large participation of citizens were obtained. “Some
numbers. New innovative approaches will Principles for Urban Change Management’ are
have to be explored to tap into the expertise given in box 18.1
available in the private and social sectors.
• Accelerating the development of local 18.49 These principles describe the basis for
capacity and knowledge: A real step-up in the development of a ‘soft infrastructure’ that
the capabilities and expertise of urban local Indian cities need, without which they cannot
bodies will be critical to devolution and become good cities, and without which even
improvement of service delivery. Cities schemes for ‘hard infrastructure’ are difficult to
must have local owners accountable to implement. So far, central financial assistance
local residents. A key mandate of the has been directed towards the hard
programme should be to ensure that the infrastructure (which is creaking and needs
cities can stand on their own and, towards urgent attention) while improvements in the soft
this end, lessons and new practices should infrastructure have been stated as conditions
be shared across the country. for the cities and states to fulfill mostly on their
own. Much more emphasis should now be on
CAPACITY FOR ‘CHANGE MANAGEMENT’ proactive assistance to cities and States to
AND CONSENSUS build their soft infrastructure.
18.46 Good ‘change management’ is the key
to city renewal. Technically and financially
sound schemes to produce ‘world-class’ FIVE THEMES TO ACCELERATE REFORMS
infrastructures and cities can be drawn up by AND URBAN RENEWAL
experts. However, these are almost worthless if
they cannot be implemented. Obtaining 18.50 JNNURM’s achievement to date has
alignment of the stakeholders who will be been its contribution to a quick ramp up of our
affected by the changes is essential. The physical urban infrastructure across the
approach to change management must be country, even as it has put reforms and
consonant with the context in which change has sustainability on the agenda. As we move
to be brought about. There seems to be forward with what has been a programme with
insufficient attention so far to find and good impact on the ground, we should build on
disseminate best practices for change this achievement and shift our focus to
management. reinforcing the financial, social, and governance
infrastructure that will ensure sustainability of
18.47 A city, whether a new one on a green- the transformation started. Building and
field site or an existing one, needs a vision to reinforcing such a multi-faceted architecture
 Urban Development 405

requires a push for key programme changes at It must be ensured that all states and ULBs
the centre, state and ULB level. have a similar understanding of outcomes and
have access to resources and guidelines that
18.51 The five themes that can significantly allow for an effective and accurate assessment
accelerate the process of reforms and urban of the status of reforms. In this regard, more
renewal, with specific recommendations in each should be invested in the guidelines and
for the short term (next 12-18 months) and primers so far initiated to provide more
granularity and clarity on specific reform

Box-18.1
Some Principles for Urban Change Management

1. For urbanisation policy to be more inclusive and have a real bottom up approach there has to be
an increased element of community participation that articulates citizens’ voices. However, for this
to happen a workable mechanism of participation needs to be developed.
2. The urbanisation policy needs to be reflexive. International experience suggests the need to
move beyond detailed and rigid Master Plans –as they are static while cities are organic and
constantly evolving.
3. The Centre should prescribe a macro framework and let the State governments customise
solutions according to ground realities.
4. National schemes such as the RAY should be rolled out nationally only after there have been
viable pilot projects: generalise from particulars.
5. The 7Cs: processes and plans of urbanisation must:
• Be Citizen-centric
• Be Comprehensive
• Create Convergence
• Have Continuity
• Be relevant to the Context
• Involve Conversations with stakeholders
• Have Connections with other relevant policies

medium term (next 1-3 years) are as under : measures.

Theme 1: Enforce the existing conditionality 18.54 Creating specialist teams to work
in the remaining mission period with states on the ground. This process can
also be aided by the creation of specialist ‘Swat’
Short term
teams at the centre, in collaboration with the
two Ministries responsible for urban
18.52 Ensuring current commitments on
development, as well as third parties where
reforms are fulfilled. The reform agenda is at
required, to work closely with collaborating
the heart of the mission. While we have made
states on the ground to create an
significant progress on many reforms, we need
implementation programme for reforms.
states to implement all of the conditionalities
listed in the mission mandate. As we move
18.55 Augmenting capacity at the mission.
towards the final three years of the original
The above two measures need to be supported
mission, it must be ensured that states and
by further augmentation of capacity at the
ULBs adhere to the commitments made.
central government level. There is need to
suitably strengthen the existing support for the
18.53 Investing more in support
mission with continuity, including bringing in
mechanisms for reform. There is also a
new sectoral and technical experts who can
pressing need to ensure that reform
conditionality is clear, tangible and measurable.
406 Mid-Term Appraisal of the Eleventh Five Year Plan

support the appraisal and monitoring 18.61 Setting process timelines and
processes. targets. The project appraisal, review and
monitoring processes could benefit from clear
18.56 Micro managing the changes at city and compressed timelines for the mission at the
level : As local conditions differ considerably, central government for approvals and
the implementation process should be left to be disbursals.
managed at the local levels instead of micro
managing by the Centre on a fixed pattern Medium Term
across the country.
18.62 Consider new approaches to
unifying the mission at the Centre. One of
Theme 2: Revamp mission governance and the options is to combine the Ministries of
administration structure and processes Urban Development and Housing and Urban
Poverty Alleviation to create a single,
18.57 Holistic urban renewal and integrated unified ministry managing urban affairs.
city development were central goals of the Urban development, housing and poverty
mission. The mid-term appraisal raises several alleviation are inter-related subjects that need
governance and administrative weaknesses to be treated through a unified approach. This
that are limiting the government’s ability to truly was the view expressed by stakeholders at all
focus on holistic development. Structures can levels during the Planning Commission’s
be tuned to aid the goals of the programme: appraisal.

Short Term 18.63 States to create a unified urban

mission at the state level. This holds true for
18.58 Consider redirecting unused funds.
both integration of oversight and project
The states should be helped to claim their
management, as well as the creation of a
allocation. At the same time, if there are states
supporting state mission fund.
that do not want to further the reform agenda
and do not want to claim programme funds,
• The fragmentation at the centre is
their allocations could be directed towards other
reflected in the administrative structure at
states which have expressed needs beyond
the state level as well. Most states have
their original allocations. This could include
urban development subjects split between
allocations for both capacity building initiatives
multiple departments, sometimes as many
as well as project funding.
as four. The argument for unification at the
centre applies at the state level too, and
18.59 Converting the current project
there is a need to bring together urban
approval process into a 2-stage process to
development, housing and municipal affairs
facilitate true costing. To truly address the
under a single department.
issue of cost escalation without lowering the
requirement of financial prudence at the state • At the same time, states need to support
and ULB level, a modification of the DPR the national mission through a state level
approval process may be considered to include mission that creates a clearly allocated
a two-stage process where DPRs are approved funding programme that can be used to
in principle at the first stage, and then ULBs can invest in mission projects. This will not only
provide revised estimates before final approval. ensure adequate availability of matching
funds from the state but also streamline the
18.60 Requiring financial closure. To fund allocation process at the state level.
ensure that state and ULB matching funds are
available and ready for access once projects 18.64 Consider converting the central
are approved, the process may be revised to mission into an agency or a company
ensure that final approvals of DPRs and architecture. (i.e. having an agency with an
disbursal of the first instalment of central funds MD and a staff of 10-15 full-time specialists and
are completed only after the states and ULBs analysts chaired by the Secretaries). This could
have shown proof of financial closure. help in creating the necessary expertise and
 Urban Development 407

capacity required for fast evaluation and can tap. This initiative needs acceleration and
decision-making. The creation of an investment support, and a joint collaboration
agency/company with strong oversight could between Urban Development and Housing and
address many of the administrative and process Urban Poverty Alleviation could be an effective
challenges the mission is facing. step forward.

Theme 3: Significantly accelerate capacity 18.69 Significantly streamlining the

building and knowledge sharing efforts at process to approve capacity building. Given
the Centre, State and ULB level. the low utilisation of capacity funds, and the
perspective from states of challenges to
18.65 Delays in the implementation of many accessing the funds, newer approaches to
reforms can be attributed to the evolving streamline the process must be considered.
process of creating political consensus at the One option could be to allow the states to use
state level. However, as the appraisal notes, the money to design enabling policies as well
many states and ULBs are facing significant as to create effective master plans that bring
shortages in financial, social, and governance the development vision and the statutory plans
capacity that limit their ability to steer urban together. States could be allowed to tap into
development and create self sustaining external expertise to support the development
administrative units at the local level. Even as of these policies. Another option would be to
the case for acceleration of reforms is pushed, allow the states to decide utilisation of funds
more must be done to empower the states and below a certain amount, including for hiring
ULBs, and more help should be given to them advisors and sectoral experts, through an in-
to build new capabilities that will be critical to principle, fast track approval process.
ensuring the long term sustainability of the
change started. 18.70 Consider allocating more money for
capacity building than the current 5 per
18.66 A few measures that could significantly cent. Given the recognition of local capabilities
transform local capabilities include: as a significant issue, there should be
increased fund allocation for capacity building
Short term initiatives.
18.67 Building specialist teams facilitated
Medium term
(and funded) by the Centre to work with
states and cities. JNNURM allocated 5 per 18.71 Scaling up current peer learning and
cent of funds towards capacity building in the sharing systems. The Ministry of Urban
original programme design, a significant share Development’s Pearl approach can be the basis
of which remains under used. At the same time, for a much more ambitious knowledge and
many states have also not been able to exploit learning system that truly allows for the
their allocations fully. States will be able to identification and adoption of the very best
benefit from easy access to technical and practices that have guided urbanisation around
sectoral experts who can work with them on the the world and customised to our local needs
ground to revamp their local structures and and challenges. Such a system can be
capabilities, open up possibilities for projects, professionally managed, with expertise drawn
and create the environment for reforms. Such from the two Ministries and the private sector,
teams can be formed with help from many of with more investment and resource support.
the existing urban institutes as well as available
private sector expertise. 18.72 Championing 3-4 large scale urban
management institutes. There is need for
18.68 Investing more in ‘centres of institutions that can aid states and ULBs with
excellence’. The Ministry of Urban good expertise in urban topics including in
Development is in the midst of launching areas such as financing, planning, urban
several centres in association with various management and social development. Given
institutions across the country, to create the need for capacity building across the
regional knowledge centres that local bodies country, we need at least three or four large
408 Mid-Term Appraisal of the Eleventh Five Year Plan

scale institutions with a focus on the urban needs to build on the progress made in the first
sector. At least one or two of these institutes mission period. Significant opportunities exist to
should seek active involvement and investment renew the agenda in local urban governance,
from the private sector to ensure that the best urban planning systems, city financing, and
talent available in the country is attracted to service delivery with the critical ones cited
help steer the effort of building local capabilities above forming the core for the next package of
in every city and ULB. reforms.

Theme 4: Renewed focus on housing with Discussions with various state

increasing funding support through RAY governments and experts in the field
suggest that JNNURM 2 needs to focus
18.73 It has to be ensured that the residents on the following reforms that will create
of cities have access to affordable homes with sustainable institutional capacity in
basic services in dignified living conditions. With States and ULBs:
the scale and scope of urbanisation, housing is
• Well-defined and more aggressive transfer
a critical choke point in most of our cities. With
of decision making from states to ULBs and
BSUP and IHSDP, a significant start has been
metropolitan authorities including taking into
made to assist the creation of affordable
account decision making of MPCs, and land
houses in our cities. We do, however, have the
related decisions
opportunity to scale up the effort through the
Rajiv Awas Yojana significantly. • Right division of responsibilities and
mandates between urban local bodies and
18.74 Increasing allocation for housing metropolitan authorities in the larger urban
with supporting policies to trigger a surge in agglomerations
affordable housing stock. Several-fold
increase in the funds for affordable housing and • Clear articulation of land monetisation
slum transformation initiatives will be policy along with a “ring fenced” fund for
necessary. The Rajiv Awas Yojana should be every mission city
designed to facilitate the flow of funds from the • Creating an institutional mechanism for the
private sector to supplement Government funds development of long term perspective plans
for affordable housing and slum removable. for each metropolitan area and ULB that
translate the requirements of stakeholders,
Theme 5: Prepare for the next wave of into clear choices in the use of land and
reforms, set the agenda for a renewed space with an understanding of economic,
mission, JNNURM 2 social and demographic factors.

18.75 Even as we move towards completing • Governance reforms such as an

the first mission period, it is clear that the empowered mayor-commissioner system in
momentum needs to be maintained, both on the each ULB along with service delivery
renewed focus on the urban sector as well as in agencies that are clearly accountable for
facilitating a package of reforms that improving services to residents, including
accompany the investments. It is learnt through the urban poor
the mid-term appraisal that the performance on • Enactment of Model Municipal Laws in
reforms across states can be very different. It every state to translate these guidelines into
is also observed that there is enthusiasm in specific rules that clearly transfer power and
many states for wider and deeper reforms. This decision making
climate of renewal could be leveraged to set the
foundations for the next version of the mission • Creation of an integrated urban mission
with more coverage, and the reforms that will with state funding in every state
accompany it.
• Creation of Urban Monitoring Authority to
benchmark the quality of services in ULBs
18.76 Building the agenda for the next
in each state and provide transparency on
wave of reforms. The next wave of reforms
ULB performance and citizen satisfaction
 Urban Development 409

• Continuing the property tax and user charge CONCLUSION

related reforms including setting up of
Property Tax and Boards that are critical to 18.79 In summary, JNNURM has provided a
the financial sustainability of ULBs good start, albeit belated, to a process of
• Ensuring greater leverage of funds through managed urbanisation that will be vital for
private participation and debt through active India’s economic growth, social condition, and
capacity and knowledge support from the political stability. It will be a long journey and
central government and therefore, while going forward, the soft
infrastructure must receive more attention from
• Creating a state municipal cadre to policy-makers than it has so far. Ways to
significantly improve local managerial improve the process of ‘change management’
capabilities must be found and implemented even as we
push for the next generation of reforms
• A system of independent local body
essential to ensuring the sustainability of the
ombudsman to look into complaints of
urban transformation. And more wide-spread
maladministration
learning and innovation must be stimulated and
18.77 These critical reforms need to be supported along with attention to the hard
pushed through maintaining momentum on infrastructure which must not diminish.
JNNURM and also through other programmes
and schemes of urban sector to make change 18.80 Moreover, much more attention must be
happen on the ground. given now to smaller towns where urban
conglomerations are enlarging. A recent study
18.78 An incentive fund as part of JNNURM indicates that there would be more than 90
that will be tied only to performance on the next towns with million plus population by 2030.
wave of reforms may be considered. Allocating These need attention.
mission resources to states based on the size
of their urban populations was the right first 18.81 Healthy growth of smaller towns will
step in the programme. We now have the ease the pressure on metros which are already
opportunity to build on this and create a real bursting at their seams. These towns, spread
sense of competition between states and ULBs more widely across states, will also spread the
by devising the next wave of reforms and benefits of urbanisation and participation in
providing financial support to states and ULBs economic growth more widely and make the
purely on the basis of their ability to push for overall process of economic growth more
these reforms. This could allow positive inclusive which is a national objective as well as
demonstration effects to become visible in at the principal objective of the Eleventh Plan.
least some states, and create an environment
for tougher reforms to happen.
19
Science and Technology

19.1. Eleventh Plan has accorded high expenditure by all the six S&T Departments put
priority for investments in Science and together is Rs. 37562 crore. Thus, the overall
Technology to derive maximum benefits for the utilisation capacity of the S&T Sector was about
society and knowledge generation for capacity 91 per cent. The financial performance of the
building. Major priorities of the Eleventh Plan six S&T Departments during the first four years
for Science and Technology sector have been: of the Eleventh Plan is given at Annexure 19.2.

ƒ Setting up national-level mechanism for 19.4. Performance highlights, achievements,

evolving policies and providing direction to new initiatives proposed and important issues in
basic research various areas of scientific research and
technology development are given in the
ƒ Enlarging the pool of scientific manpower
following section.
and strengthening the S&T infrastructure
and attracting and retaining young people to
NUCLEAR RESEARCH
careers in science
ƒ Implementing selected national flagship 19.5. The objective of nuclear research is to
programmes which have direct bearing on meet the technological requirements of the
the technological competitiveness of the country and to build self-reliance in all aspects
country in a mission mode of the nuclear fuel cycle. Indigenous
technologies for Pressurised Heavy Water
ƒ Establishing globally competitive research
Reactors are now in commercial domain and
facilities and centres of excellence
the current approach is to develop the fast
ƒ Developing new models of PPPs in higher breeder reactor and thorium technologies.
education, particularly for research in Emphasis is on peer review of projects on a
universities and high technology areas continuous basis, human resource development
and encouraging students to carry out research
ƒ New ways and means of catalysing
on the interface of science and engineering.
industry-academy collaborations
All efforts are being made to develop new
ƒ Promoting strong collaborations with techniques for exploration and deploying known
advanced countries including participation techniques extensively for uranium exploration.
in mega international science. Focus is also on development of metallic fuels
with short doubling time, for use in fast breeder
19.2. Significant initiatives/contributions have reactors.
been made for each of these priority areas.
Detailed account of these is provided in 19.6. Indira Gandhi Centre for Atomic
Appendix 19.1. Research (IGCAR) and Bhabha Atomic
Research Centre (BARC) have developed
19.3. The pattern of utilisation of funds in the indigenous Time Domain Electromagnetic
six S&T departments at the Mid Term Stage of (TDEM) System for airborne survey to locate
the Eleventh Plan indicates a healthy trend. deep seated uranium deposit. Uranium
Total Plan allocation during the first four years investigation in Proteozoic Basins of India has
was Rs. 41,477 crore and anticipated been completed. Other major achievements
 Science and Technology 411

include development of: (i) BARC containment Memorial Hospital through tele-medicine
model (BARCOM) of 540 MWe Pressurised network.
Heavy water Reactor (PHWR) at Tarapur, the
largest nuclear containment model in the world 19.10. In the area of Basic Research a
for ultimate load capacity assessment; (ii) software for LHC Computing Grid (LCG) of
special material for Light Water Reactor (LWR); European Organization for Nuclear Research
(iii) 50 L/hr fluidized de-nitration plant; (iv) (CERN) has been developed and a high
process for the recovery of radio-isotopes for performance cluster computer system has been
application in radio-pharmaceuticals; (v) commissioned. Other major achievements
prototype magnetic crawler robot for in service include: (i) installation of system for producing
inspection of boiler tubes at thermal power hard coatings; (ii) plasma ion immersion
plants; and establishment of Indian implantation system for plasma surface
Environmental Radiation Monitoring Network modification; (iii) commissioning of all the Muon
(IERMON) Stations at 84 locations. Chambers of 2nd tracking station of Muon
Spectrometer as part of ALICE (A Large Ion
19.7. In the area of Fast Breeder Reactors, Collider Experiment) operations; (iv) mounting
alloy characterisation facility for fast reactor of all the Multiple Analog Signal (MANAS)
fuels, CNC plasma cutting machine, adiabatic processor chips (total number 68750) (v)
calorimeter, fuel cell and argon glove box for commissioning of Dimuon high level trigger;
sodium chemistry studies and Ultra filtration unit and (vi) establishment of four new laboratories
for separation of strontium, cesium, lanthanides for structural biology work. Under the Research
and actinides from simulated wastes have been & Education Linkages Programme, activities
commissioned. Robotic device for in service relating to establishment of advanced digital
inspection and indigenous SPIDER ROBOT for library at IGCAR; setting up National Institute
Steam Generator tube inspection have also for Science Education and Research (NISER)
been developed. at Bhubaneswar and University of Mumbai-
Department of Atomic Energy Centre for
19.8. In the area of thorium fuel cycle Excellence in Basic Sciences (UM-DAE CBS)
development various activities, such as at Mumbai have been taken up. New Training
assessment of critical power of Advanced School Complex at Anushaktinagar, Mumbai
Heavy Water Reactor (AHWR); installation of a has been established and Common Facilities
test facility to check the performance of passive Building at Trombay which will house Low
containment isolation system; accelerated Energy High Current Proton accelerator and
ageing and corrosion studies for base and weld Fuel Cell Facility is under construction.
material of the Primary Heat Transport (PHT)
system of AHWR; development of copper Mid Course Corrections
vapour laser for U233 cleanup; and development
of Lead-Bismuth Eutectic (LBE) loop for 19.11. The Department has proposed to take
Accelerator Driven Systems (ADS) have been up eighteen new projects during the remaining
taken up. two years of the Eleventh Plan in order to
strengthen the nuclear programme with an
19.9. Several other advanced technologies outlay of Rs.643 crore. Some of the major new
like critical facility for the validation of physics projects include: (i) External Engineering Utility
design of AHWR & PHWR; low-power Diode- Services at BARC-Vizag, International Centre
Pumped Solid-State Laser (DPSSL); Pumped for Theoretical Sciences (ICTS) at Tata Institute
Dye Laser for isotope selective material of Fundamental Research (TIFR), (ii)
processing, trace analysis and other Establishment of Infrastructural facilities at
spectroscopic applications etc. have been Chennai by IGCAR; (iii) Development of Low
developed. Cobalt Tele-Therapy Machines Energy High Intensity Proton Accelerator
BHABHATRONs have been established at (LEHIPA) for front end of ADS driver at BARC,
various hospitals in India, 29 hospitals including (iv) Renovation/Upgradation of 20 year old
seven from North East and two foreign buildings under DCS&EM; (v) Augmentation of
countries have been connected with Tata Infrastructure facilities – Phase II of Institute of
412 Mid-Term Appraisal of the Eleventh Five Year Plan

Mathematical Sciences (IMSc) campus; (vI) satellites; undertaking space science and
New Campus of TIFR at Hyderabad; (vii) planetary exploration; strengthening space
Imaging Services and Additional facilities at based disaster management support; and
TMC; and (viii) Setting up of cancer hospital at societal applications of space technology.
Vizag. In addition, three other new projects
with an outlay of Rs. 160 crore were introduced 19.17. The most significant achievement is the
during the first year of the Eleventh Plan. These successful launch of India’s first unmanned
are: (i) Indian participation and utilisation of moon mission Chandrayaan-1, on 22nd
Jules Horowitz Reactor, Cadarache, France, (ii) October 2008, thereby achieving the historic
DAE University Institute of Chemical feat of placing on Moon’s surface the Indian tri-
Technology (UICT) Centre for Chemical colour on November 14, 2008. The deep space
Engineering Education and Research; and (iii) network with two large antennae (18 metre and
Management Development . 32 metre diameter) with associated ground
segment was established in Bylalu, near
19.12. In order to ensure a steady supply of Bangalore to provide Tele-tracking Control
radio-isotopes for medical and industrial (TTC) support for the Mission. Excellent quality
applications and also for development of high resolution data from Chandrayaan-1 has
custom built radioisotopes for specific led to identification of new lunar features and
applications, the department may consider characteristics and environmental factors
setting up of dedicated reactors which can around Moon. The analysis of scientific data
provide radio-isotopes, both for domestic needs has led to detection of water molecules on lunar
as well as for exports. surface and rocks.

19.13. There is a need to encourage nuclear 19.18. Twelve major Space missions were
research in Universities and other academic successfully accomplished which included six
institutions. Therefore, establishment of small launch vehicle missions with Polar Satellite
research reactors in the Universities may also Launch Vehicle (PSLV) and Geosynchronous
be supported. Launch Vehicle (GSLV) and six satellite
Missions. The important missions include
19.14. Centres of Excellence in the field of launch of (i) ten satellites including Cartosat-2A
nuclear science may also be established to and IMS-1 in a single launch of PSLV C9; (ii)
enable the international scientific community to Microwave Radar Satellite RISAT-2 (procured
work jointly with Indian scientists in the field of from Israel) and Mini Satellite ANUSAT onboard
nuclear science and engineering. PSLV-C12; (iii) high power satellite INSAT-4CR
onboard GSLV F04; (iv) launch and operation
19.15. The department needs to give greater of Oceansat-2 satellite along with six nano
thrust on dissemination of various spin-off satellites (commercial) onboard India’s PSLV
technologies developed by it, which have direct C14; (v) conducting qualification test of
social relevance, especially the Tele-cobalt indigenously developed cryogenic stage; (vi)
therapy Bhabhatron machine for treatment of building a state of the art communication
cancer, Sewage Sludge Hygenisation satellite (W2M) for an European customer; (vii)
Technology and NISARGRUNA, a Biogas plant establishment of GEO and GPS Augmented
based on biodegradable waste. Navigation System (GAGAN); and (viii)
commercial launches for international
SPACE SCIENCE & TECHNOLOGY customers (AGILE and TECSAR). Setting up of
an Indian Institute of Space Science and
19.16. The thrust of the Space programme Technology for development of critical human
during the Eleventh Plan period has been on: resources for space S&T has been yet another
development of critical technologies for Human major milestone. Significant progress has been
Space Flight programme and next generation made towards the development of GSLV Mk
launch vehicle; augmentation of state-of-the-art III, the next generation advanced launch
space segment; and ensuring continuity of data vehicle. A world class solid propellant plant has
through constellation of Earth observation been successfully commissioned at Satish
 Science and Technology 413

Dhawan Space Centre, Sriharikota (SDSC- studies; (iii) Space science missions for better
SHAR), for manufacturing large solid stage understanding of the solar system and
booster segments (S-200) for GSLV Mk III universe; (iv) Planetary exploratory missions;
vehicles. (v) Development of heavy lift launcher;
Reusable launch vehicles; and (vi) Human
19.19. Significant developments have taken Space Flight Programme. Innovations in space
place in the area of societal applications of based communications and earth observations
space technology. Some of the important ones will be persued to achieve faster delivery of
are (i) expansion of Tele-education over 35,000 information to remote areas and finer
classrooms (ii) Tele-medicine facility in 375 observation of planet earth.
hospitals; (iii) Setting up of 470 Village
Resource Centres; (iv) location of Drinking Mid Course Corrections
Water sources using Indian Remote Sensing
(IRS) Satellite images covering more than 2 19.22. Human Space Flight Programme (HSP)
lakh habitations in ten States; (v) Wasteland involves development of several new
mapping of the whole country using IRS data; technologies such as life support systems,
and (vi) Bio-diversity characterisation of bio-rich aerospace medicine, space suits, crew training,
areas of the country etc. and is first of its kind. The overall
development, system realisation and complexity
19.20. Several Missions have been targeted of efforts required for HSP are several orders of
for the remaining period of the Eleventh Plan. magnitude higher than the Missions so far
Significant among them include: (a) third realised by the Department of Space. There is
development flight of GSLV D3 (fitted with a need to address issues relating to networking
indigenous Cryo stage), launching GSAT-4 of institutions from various fields within the
satellite; (b) launch and operation of country, decision on buy or make options,
Resourcesat-2 and Youthsat onboard PSLV international co-operation, human resource
C16; (c) launch and operationalisation of requirements including training needs,
Cartosat-2B and commercial launch of an harnessing the Industry and academia support
ALSAT-2 onboard PSLV C15; (d) development for effective realisation of the HSP. It is
flight and operationlisation of the GSLV Mk III; therefore planned to realise the HSP in phases
(e) launch and operationalisation of the with focus on development of critical
microwave remote sensing radar satellite technologies in the first phase.
RISAT-1 with day and night all-weather imaging
capability onboard PSLV; (f) augmentation of 19.23. The Department of Space is unable to
INSAT/GSAT system with the launch of six provide high resolution data in time to the
satellites together adding about 100 concerned users due to restrictive processes.
Transponders to the INSAT system; and (g) Since RSDP 2001, significant advances have
Realisation of advanced meteorological satellite taken place in the remote sensing technology
INSAT-3D with six channels imager and 19 and the associated geospatial tools like Google
channels sounder for launch onboard GSLV. It Earth. Therefore, a suitable mechanisms need
has also been planned to upgrade the Very to be created and policy need to be revisited to
Large Scale Integration (VLSI) fabrication consider whether high resolution data (at least
facility at Semi conductor Laboratory (SCL), up to 2.5 metre resolution) can be made
Chandigarh from 0.8 micron capability to better available to the users in a timely manner.
than 0.25 micron capability, to meet the VLSI
device requirements of strategic sectors. 19.24. Further, ISRO has successfully
demonstrated several applications of space
19.21. The broad directions for the Space technology for societal benefits – specifically
programme for the next decade would include: Tele-education, Tele-medicine and Village
(i) Operational services in communications and Resource Centre (VRCs). Pilot phase of these
navigation; (ii) development of enhanced applications has been completed. In the
imaging capability for natural resource context of large scale expansion of these
management, weather and climate change applications on an operational basis, ISRO
414 Mid-Term Appraisal of the Eleventh Five Year Plan

would essentially be a “technology and BIOTECHNOLOGY

bandwidth provider” and the implementation
responsibility rests with the respective State 19.27. Several new activities have been
Governments and Central Ministries. An initiated during the Eleventh Plan to promote
institutional mechanism would therefore be biotechnology research. New institutions in
required for the implementation of these basic and applied research are being
applications by networking State Governments, established to address areas which are vital to
Central Ministries, NGOs/VOs and Planning India’s progress. Six new institutions in the
authorities supported with appropriate policy areas of Stem Cell, Agri-food biotechnology,
framework. Animal biotechnology, Health Science,
Genomics and Biotechnology Training &
19.25. A major challenge in the coming years Education are at various stages of
will be to meet the enhanced throughput establishment. In addition, two more institutions
requirement of satellites and launch vehicles. in the area of Seri-biotechnology and Marine
From 20 missions (Launch Vehicle and Satellite Biotechnology and three molecular medicine
Missions) in Tenth Plan, the demand in centres are proposed to be established. It is
Eleventh Plan is to realise 60 Missions. For also proposed to establish Biotechnology
ISRO to retain the R&D character at the Regulatory Authority of India. These institutions
organisation level, it is important to farm out have been designed with a strong bias for
production jobs to industries. Good progress integrating science and translational research
has been made in this direction, especially in and are aimed at producing skilled personnel
the launch vehicle area. Today 40 per cent of driven toward entrepreneurship. Cluster
Space budget flows to Indian Industries. development is a key strategy to promote
However, to meet the demands for space innovation and hasten the technology and
services projected for Eleventh Plan and product development. Three clusters, one each
beyond, a three-pronged strategy may be at Faridabad, Mohali and Bangalore are being
necessary viz., (a) enhancing the throughput actively pursued.
capacity of the industries already involved in
space technology and also identify and develop 19.28. Besides the seven existing autonomous
new industries to take up production jobs for institutions under Department of Biotechnology,
ISRO, (b) farming-out higher level of production Rajiv Gandhi Centre for Biotechnology,
aggregates/systems to the Indian Industries, Thiruvananthapuram was recently taken over
and (c) encouraging Industries to take up from Government of Kerala. These institutes
specific development initiatives of relevance to have generated 429 publications in SCI
ISRO. Strategies to achieve a quantum jump in journals, 24 patents were granted/filed while
Industry participation may therefore be worked nine patents are in the pipeline; and 13
out in the coming years. technologies were developed / transferred to
the industry.
19.26. Space Science Research / Planetary
Exploration has been an important component 19.29. Establishment of biotechnology parks
of Indian Space Programme and several has also been supported to facilitate Small and
missions including Chandrayaan-2 and Medium enterprises in translational research,
ASTROSAT have been planned in the coming product advancement and innovation and to
years. Akin to this, a major challenge lies in produce biotech entrepreneurs. The State
creating the human resource base in the Governments are also making earnest efforts to
country for analysing the enormous amount of promote biotechnology activities by setting up
scientific data that would be available from biotechnology parks, incubators as well as pilot
these missions. There is a need to adopt projects through public-private partnership.
aggressive measures in this direction to ensure Biotechnology Park at Hyderabad has become
availability of scientists in the area of space operational and the contract has been awarded
science and planetary exploration. to M/s Allexendria. A promoter for Food Biotech
Park at Mohali has also been identified.
Himachal Pradesh Biotechnology Park is
 Science and Technology 415

negotiating with a Nano- Science Company for research on eye diseases, chronic diseases,
finalising the design. IIT Guwahati biotech Genetic medicine, Tissue engineering, and
incubator is progressing well and Seed money therapeutic proteins. Some of the important
has been provided for Orissa Biotechnology breakthroughs achieved include: development
Park. In addition, Technology platform for idea of small anti-viral peptides against Hepatitis C
generation (in collaboration with FICCI) has virus; design of inhibitors to work as anti-
been established with three platforms in the microbial and anti-malarial agents; identification
field of Agriculture Biotechnology, Implants and of protein and peptide vaccine candidates for
devices and Biopharmaceuticals. filariasis; development of transgenic silkworm
lines resistant to baculovirus; etc.
19.30. In order to ensure a steady flow of
young scientists and technologists in life 19.32. A legal framework in the form of ‘The
science sector, ongoing post graduate teaching Protection and Utilization of Public Funded
programmes in different areas of biotechnology Intellectual Property Bill, 2008’ is in the process
were continued at 62 universities, besides of approval. The Bill aims to promote
starting these programmes in eight new innovation and patenting on benefit sharing
universities. 35 Star under graduate colleges pattern between the innovators and institutions.
were identified and funded for imparting quality
education at graduate level. Number of 19.33. Establishment of research resources
fellowships for PhD have also been increased and facilities has also been undertaken to
from 100 per year to 250 per year, besides the promote research and education. The
100 postdoctoral and 50 biotechnology Department of Biotechnology - International
overseas associateships that are given. This Crops Research Institute for the Semi-Arid
has resulted in 20 per cent increase in the Tropics (DBT-ICRISAT) platform for
number of PhDs in life science area. 21 translational research on transgenic crops
candidates were selected for overseas began its operations for facilitating contract
specialised training in niche areas of R&D on validation, regulatory tests and
biotechnology. In addition, training was commercialisation of agri-biotechnology
provided to 665 postgraduate students in 185 products. A National Certification system for
companies out of which 27 per cent have been Tissue Culture raised plants has also been
absorbed by the industry. A major initiative has evolved. Synchrotron X-ray beam line (BM14)
also been taken up in North East (NE) to was acquired at European Synchrotron
promote life science education with biotech Research Facility, France for macromolecular
emphasis at higher and secondary level A crystallography and was made available to 130
Stanford-India Bio-design programme has been Indian scientists. In addition, establishment of
launched for leadership-training in biomedical several other biotech facilities has been
technology innovation to develop next initiated, which include: Stem cell research
generation innovators and entrepreneurs. A facility at AIIMS & CMC Vellore, Primate Animal
re-entry R&D fellowships grant has also been Research Facility at NII, National Plant Gene
started in collaboration with Wellcome Trust, Repository at NIPGR, Aerosol containment
UK and nine fellows have already been facility at NII, and Core immunology laboratory
selected. In addition, 35 fellows have been to evaluate vaccine elicited immune responses
selected for Ramalingaswami Fellowships. in HIV/AIDS at ICGEB.

19.31. Twelve Centres of Excellence have 19.34. As a participant in the international rice
been established in the areas of Hepatitis ‘C’; genome sequencing programme, Indian
Cancer biology; Silkworm genomics; Microbial laboratories sequenced 16 Mb of chromosome
biology; Stem cell research; Basic & 11 (against a target of 14 Mb) containing 1443
translational R&D; Genome science & genes out of the total of 3754 genes present in
predictive medicine; Genome mapping; and rice genome. India became a partner in the
molecular breeding of brassicas. Programme International Cancer Genome consortium
based R&D support was also provided in 28 (ICGC) with commitments of eight countries
different areas, which include: Translational and eleven funding organisations.
416 Mid-Term Appraisal of the Eleventh Five Year Plan

19.35. In the field of vaccines and diagnostics, A new scheme, Biotechnology Industry
Phase-II clinical trials of rotaviral vaccine has Partnership Programme (BIPP) was launched
been completed and preparation for Phase-III in 2008 as viability gap funding scheme on cost
trials are progressing well. The cell bank and sharing basis. The objective was to achieve
technology for production of recombinant competitiveness in frontier biotechnologies and
Malaria vaccine were transferred to BBIL, to fill the viability gap in development of high
Hyderabad for developing master cell bank. A risk futuristic technologies.
novel candidate for dengue vaccine was
developed and expressed in the yeast and Mid Course Corrections:
purified to near homogeneity in high yields. This
“know-how” is being transferred to an industry 19.39. Basic R&D support was centered on
partner in India for further development. Several genomics, RNA biology, proteomics, systems
other vaccines relating to Japanese biology, stem cell biology and nanosciences.
Encephalitis, Rabies, Typhoid, Leprosy, Although, initiatives were taken, greater
Anthrax, Cholera, Infectious Bovine emphasis is needed for emerging research in
Rhinotracheitis, and DNA vaccine against metabolomics, computational biology, synthetic
Brucella disease of livestock are at different biology, and novel animal models.
stages of trials. At least 4 vaccines are likely to
be commercialised by 2012 and India is fast 19.40. There is a need to vigorously pursue
developing into a Vaccine Manufacturing Hub. programmes for creating innovation ecosystem
through focused investments in Biodesign
19.36. Systematic basic and translational programme; programme on molecular
research in stem cell biology started in the diagnostics through biodesign; new institutions
Eleventh Plan. Noteworthy leads in R&D and operationalisation of incubators, clusters
include: (i) Four human embryonic stem cell and other centres; support to inter- disciplinary
lines; (ii) Immortalised breast stem cell lines life science research with mission mode R&D in
with the potential to continuously initiate universities, IITs, IISERs and NIPERs; HIV
mammospheres; and (iii) A simple and rapid vaccine development; setting up of drug
method for the isolation of cardiomyocytes from discovery and genomics centers; DBT:
neonatal mice heart and their maintenance in Welcome Trust Joint Programme for R&D on
primary cultures. Phase-I clinical study, on Affordable Health Care; and expanding the
acute myocardial infarction using autologous existing research institutions. Mega R&D
bone marrow mononuclear cells, was carried projects involving inter-institutional network
out at five hospitals in the country involving around big challenges and modern
Clinical Research Organisation (CRO). India technological opportunities in tuberculosis,
along with seven other countries is now a part malaria, influenza, HIV, animal /zoonatic
of “Stem Cell Network on Asia Pacific” (SNAP). diseases, molecular breeding in specific crops
for drought and salinity, biofuels and bioenergy,
19.37. Seven Grand Challenge programmes implants and devices and environmental
were launched in the areas of Microbial technologies also need to be supported. In
prospecting of genes and molecules, Vaccines, addition, novel molecular imaging programme
Food Science and Nutrition, Accelerated and development of platforms for personalised
Molecular Breeding, Biodesign, Genomics and medicine may be taken up.
Bioenergy & Biofuels.
19.41. Department of Biotechnology and ICAR
19.38. Some of the early leads from Small need to intensify collaboration to ensure
Business Innovation Research Initiative (SBIRI) synergy in their activities and to accelerate
include: A silk protein blend film-for burn wound transfer of technology to the field. A major
management (Patent filed); A homologous collaborative initiative at national level is
natural bio-material for treating cancer lesions, needed for improving agriculture productivity,
burn wound etc. (Patent filed); and Technology particularly under unfavourable climatic
for nitrifying bioreactor for organic re-circulation situations like drought and climate change,
in prawn seed production system (in fish farms). predominantly for rainfed areas. An agri-biotech
 Science and Technology 417

entrepreneurship programme similar to launched to improve the R&D infrastructure of

Stanford Biodesign programme need to be ‘Women Universities’. The Women Scientist
started and an agri-biotech policy and Scheme has facilitated a number of women
communication centre may be set up. scientists in returning to main stream of Science
& Technology. Under the National Science &
BASIC RESEARCH & TECHNOLOGY Technology Management Information System
DEVELOPMENT (NSTMIS) scheme, publications on R&D
statistics at glance; R&D statistics 2007-08;
19.42. Science and Engineering Research funding pattern of sponsored research by
Council (SERC) is the single largest scheme for scientific agencies; and analysis of outcomes of
promoting basic research in the country and extramural R&D projects have been brought
through its support on an average, about 1200 out.
research papers are published annually with an
average impact factor of about 2.2 per paper. 19.44. Technology Development Programme
With a view to increase the speed and flexibility (TDP) has been reoriented to build convergent
of funding of research projects, Government solutions rather than technology demonstration.
has approved the establishment of Science and Demonstration of technologies to the ultimate
Engineering Research Board (SERB) as an users under real life conditions enables
autonomous funding body. As many as 71 migration and flow of technologies from the
institutes including Universities/colleges were sources to the places of need. Several
supported during 2007-08 and another 145 in technologies aimed at specific end use have
2008-09 under the Fund for improvement of been developed, which include: Atmospheric
S&T Infrastructure in Universities and Higher plasma processing system for angora wool,
Educational Institutes (FIST) programme for Arsenic removal technology using microbial
improving their S&T infrastructure. Special cum adsorbent route and Ceramic membrane-
packages have been developed for reverse osmosis based iron removal plant for
strengthening S&T infrastructure in colleges in removal of iron and salinity in drinking water.
the North Eastern Region and Jammu & Under the Science and Technology Advisory
Kashmir. This programme has enabled Committee/Inter-Sectoral Science and
departments of academic institutions to install Technology Advisory Committee (STAC/IS-
some of the state-of-the-art R&D facilities. A STAC) Joint Technology programme, pilot plant
third party review of the FIST has revealed that for CO2 capture has been commissioned and
there was a substantial increase in the number several other projects on Carbon sequestration
of Research Publications and enrolment in M have been supported.
Tech and PhD programmes and a three-fold
increase in the generation of funds through 19.45. Survey of India has developed
consultancy in Engineering departments. The database in 3D GIS for 20 sq.km area in
pace of financial deliveries for EMR projects Chandni Chowk, Delhi and handed over to the
has also doubled since Tenth Plan period. Municipal Corporation for using it for
applications like property tax collections, traffic
19.43. With a view to widen the base of R&D in management, disaster management & change
the country and to attract the best available detections in buildings. On the success of this,
talent to pursue research as career, 72 JC Bose the Government of National Capital Territory
National Fellowships, 14 Ramanujan has approved a major project to replicate the
Fellowships, 19 Ramanna Fellowships and 144 methodology to cover entire Delhi in next 18
BOYSCAST fellowships were awarded during months. Further, National Spatial Data
2007-09. A research incentive grant system has Infrastructure has been established.
been mounted for the University sector based
on evidence of scientific publications viz. 19.46. A community of 600 researchers has
Promotion of University Research and Scientific been nurtured in the country under the Nano-
Excellence (PURSE). In addition, a special Mission and approximately 1000 students are
initiative, ‘Consolidation of University Research, carrying out PhD in nano sciences with access
Innovation and Excellence’ (CURIE) has been to state-of-the art facilities in the country and
418 Mid-Term Appraisal of the Eleventh Five Year Plan

abroad. Over 1500 publications in leading etc. are being taken up for different phases
journals have so far been published. A total of (Phase I, II, and III) of clinical trials.
65 R&D projects in different areas of Nano
Science and technology and six joint Industry- 19.48. A major programme was initiated for
academia/National lab R&D projects focusing attracting talent in science and to nurture
on applications of nano technology have been students right from school level. The
supported during 2007-09. Establishment of programme comprises of three components (i)
Institute of Nano Science and Technology at Scheme for Early Attraction of Talent (SEAT)
Mohali; Clean room facilities at IISc, Bangalore; (ii) Scholarships for Higher Education in
Ultra High Resolution Aberration Corrected Science (SHE) and (iii) Assured Opportunity for
Transmission Electron Microscope (TEM) at Research Careers (AORC). Selection of 1500
Jawahar Lal Nehru Centre for Advanced SHE fellows has been completed for the years
Scientific Research (JNCASR), Bangalore; 2007-08 & 2008-09. Full scale expansion of
Centre for Knowledge Management of Nano SHE is expected in 2010-11. Innovation in
Science and Technology (CKMNT) at ARCI, Scientific Pursuit for Inspired Research
Hyderabad; and strengthening of computational (INSPIRE) Internship and INSPIRE fellowship
facilities at IUAC, New Delhi have also been schemes have been announced and the
taken up. In addition, an India-Japan Beam line implementation of INSPIRE faculty scheme is
was established for nano materials research at planned for 2010-11.
the Photon Factory at KEK, Tsukuba, Japan.
One more beam line equivalent is being 19.49. State Science and Technology Councils
sanctioned for assured access by Indian provide important links to DST for state bound
scientists at the PETRA III synchrotron radiation actions. DST provides core funding support to
facility at DESY - nano-sized X-ray source. the State S&T Councils. Additional support was
Steps have also been taken to establish two also provided to the Councils for undertaking
new Institutes for nano science and technology projects for field trials/demonstration of
at Bangalore and Kolkata. However, the loans technologies developed by national laboratories
to industries for product specific projects have like: Plastic and hospital waste disposal
not been sanctioned so far. New ways to demonstration plants based on indigenously
disburse such soft loans are being discussed developed plasma incineration technologies;
and finalised. Ceramic membranes based plant for removal of
iron from water; and 1 tonne seeds per day,
19.47. There has been a paradigm shift in 250 lpd capacity biodiesel plant; etc.
Drugs and Pharmaceutical Research
Programme during the Eleventh Plan and a Mid Course Corrections
new dimension of giving grant-in-aid to industry
for R&D on neglected diseases, like Malaria 19.50. Department of Science and Technology
and Kala Azar has been added in this has been entrusted with the responsibility to
programme. 13 collaborative R&D projects with coordinate two out of eight National Missions on
leading industries are being implemented. Climate Change under the NAPCC viz. (i)
Several new facilities like National Biosafety National Mission for Sustaining the Himalayan
Level 4 (BSL4) facility for infectious diseases at Ecosystem; and (ii) National Mission on
CSIR-CCMB; Clinical research facility to Strategic Knowledge for Climate Change. Both
develop stem cell technologies and these missions are proposed to be taken up
regenerative medicine; etc. were sanctioned. under the ongoing ‘Technology Development
The programme has resulted in filing of ten Programme’ for which an additional fund
product patents. Some of the important requirement of Rs. 225 crore will be
products that have been developed include: (i) accommodated within the overall Eleventh Plan
BONISTA for Osteoporosis; (ii) RECEPTOL, for allocation of the department.
the management of HIV/AIDS; and (iii)
RHOCLONE, for Hemolytic disease of the new 19.51. Recognising that the Government has
born (HDN). Several industrial leads on established the Department of Pharmaceuticals
Psoriasis, Migraine, Malaria, Anti-Glaucoma, for promotion and co-ordination of basic and
 Science and Technology 419

applied research in areas related to the and technology; and other areas of national
pharmaceutical sector, the Pharmaceutical need like Biomedical devices & instrumentation,
Research and Development Programme, and Climate change agenda of the country in
presently being pursued by DST would be assessing the changes on account of natural
transferred to Department of Pharmaceuticals and emission related causes. There is a need
at the end of Eleventh Plan. to relate their investments to SCI publication
outputs and other eminence indicators.
19.52. State S&T Councils in most states need
to be strengthened in terms of human and 19.58. As the Science & Technology sector is
financial resources to meet the state specific cutting across all other socio-economic sectors,
technological needs and to integrate S&T with there is need to create mechanism to promote
the state development process. DST linkages R&D and provide technological inputs in the
with the states also need to be strengthened implementation of various projects/programmes
several fold. by various socio-economic Ministries/
Departments.
19.53. Keeping in view that significant
technology development has already taken 19.59. Department of Science and Technology
place the National Mission on Bamboo being the nodal department for promoting high
Applications (NMBA) may be wounded up by end basic research, it is important that it
the end of Eleventh Plan and may be integrated reduces the time lag between the receipt of
with the overall National Bamboo Mission being research proposal and release of first
implemented by Department of Agriculture instalment to about five months. For this
Cooperation. purpose, DST may adopt online monitoring of
all the research proposals. It would also be
19.54. Establishment of SERB has been useful to take a comprehensive review of all the
approved by the Government in May 2008 and projects funded by DST during the last five
it will subsume the activities hitherto being years in terms of their rate of success in
carried out by SERC. However, the SERB is yet achieving the desired objectives.
to be formally constituted. DST need to take up
necessary action to operationalise SERB in a SCIENTIFIC AND INDUSTRIAL RESEARCH
definite time frame.
19.60. Under the Technology Promotion
Development and Utilisation (TPDU)
19.55. As a directional change at Mid Term
programme, recognition was granted to 200 in-
Review, there is a need to segregate the
house R&D units of industry along with
funding and developmental roles of DST. While
certification of Rs. 940 crore investment by in-
the SERB’s would primarily focus on funding
house R&D units as eligible for weighted tax
and implementation of R&D projects the focus
deduction at 150 per cent. Support was also
of DST would be on developmental and Policy
extended to 125 innovator’s projects (TePP
interventions like expansion of FIST for
projects), 28 TePP outreach centres and 11
inclusive development of special regions,
new technology development and
PURSE, and CURIE type programmes.
demonstration projects. Some of the other
achievements include establishment of
19.56. Focus of Technology Development and
technology management chair, development of
Demonstration programme would have to move
database on exportable projects, support to
from demonstration to convergent solutions in
consultancy clinics and development of S&T
priority areas like: Energy, Water, Environment,
portal.
Security technologies and Biomedical devices &
instrumentation.
19.61. Consultancy Development Centre has
taken up studies on consultancy export
19.57. Aided Institutions would focus on
potential, consultancy development and
Synergy and consolidation in their domain
promotion. Besides, database on 15000
areas of strength; and leadership building in
professionals/experts has been developed, and
astronomy and astrophysics, materials science
five issues of the Journal ‘Consulting Ahead’
420 Mid-Term Appraisal of the Eleventh Five Year Plan

were brought out. In addition, 370 professionals softer. DSIR would also support technology up-
were trained through educational programmes scaling projects emanating from CSIR-800 and
and 205 professionals were trained through from rural and overseas showcasing of
capacity building programmes. technologies from various R&D establishments.

19.62. Central Electronics Limited (CEL) has 19.66. National Research and Development
developed the prototype of point zone digital Corporation (NRDC) will aggressively promote
axle counter, which shall be put on field trial. women entrepreneurship programme,
The plant up-gradation of the factory and up- entrepreneurship development in the North-
gradation of the manufacturing facility for digital East, IP awareness programme, upgradation of
axle counter is in the completion stage. The technology for rural cluster- (sericulture, coir
company has also signed a MoA with the and milk dairy cluster), development of basic
Russian Company (M/s Podolsky Chemical & engineering design packages for exportable
Metallurgical Plant) for the supply of silicon technologies, angel funding, development of
wafers and subsequently, establishing a joint economic activities for anganwadi centres,
venture to manufacture silicon wafers. The setting up knowledge park and collaboration
company plans to expand PV manufacturing with world food programme for use of non-
capacity to 100 MW in two phases, viz. 25 MW conventional energy.
by the year 2012 and then up to 100 MW.
Council of Scientific and Industrial Research
19.63. National Research and Development
Corporation (NRDC) provided financial 19.67. Council of Scientific and Industrial
assistance to 151 inventions for patenting in Research (CSIR) has a pan India presence
India and organised 32 Intellectual Property through its network of national laboratories
Rights (IPR) awareness programmes. Techno- which undertake well focused basic and applied
commercial support was also provided to 58 research in diverse fields of science and
inventions, besides strengthening of 17 technology. CSIR has emerged as a model
Regional Technology Demonstration and organisation, leading in cutting edge science on
Transfer (RTDT) Centres and opening four new one hand and providing end to end
RTDT centres. technological solutions for economical and
societal goods on the other.
Mid Course Corrections
19.68. CSIR has refocused and reprioritised its
19.64. With the change in emphasis for R&D activities of Eleventh Plan and seven
industrial research, particularly to support start- areas have been identified for focus and derive
ups and SMEs, it would be desirable that a synergy therefrom. These are: Affordable
candid assessment and review of the TPDU healthcare, Sustainable energy, Chemistry &
programme is undertaken within six months by Environment, Smart & Functional materials,
a third party. This would help to identify the Engineering structures/design and electronics,
opportunities available and restructuring the Earth System science, Information Technology,
activities particularly for the Twelfth Five Year and CSIR-800 – S&T interventions for the
Plan. masses. CSIR has put in place a new R&D
Management Strategy for the planning and
19.65. Technology Promotion Development performance monitoring of R&D projects. The
and Utilisation scheme is being modified to take effort is aimed at developing end-to-end
up programmes under new initiatives technological solutions.
aggressively. It is envisaged to encompass
grants to technology based start-ups, small 19.69. In the Eleventh Plan, CSIR has made
businesses and innovative business models. significant contributions. CSIR has the
The modified scheme proposes that the re- distinction of highest scientific impact in the
payment norms by the established companies, country with publication of 7972 research
receiving Department of Scientific and Industrial papers in SCI journals of national and
Research (DSIR) support would be made international repute during 2007-09 and
 Science and Technology 421

contributing to an average 12 per cent of the Heptafluropropane (FM 200)- a halon substitute
national SCI publications with an average used in fire fighting systems was transferred to
Impact factor per paper of more than two. CSIR M/s Mechvac Fabricators Ltd., Mumbai for
also published 12 papers in top reviewed commercial production. A 3000 TPa plant of
journals (Cell, Nature, Science and Nature Aditya Birla Group for the manufacture of
Biotechnology). Its scientists have also received epichlorohydrin from allyl chloride based on
prestigious fellowships and awards for improved and patented catalytic process went
scientific excellence. on stream at Ryong, Thailand for which
technology was transferred at a cost of Rs.1.64
19.70. At the national level, CSIR has been crore. Process technology for fractionation of
contributing significantly for the development of sugarcane bagasse for the recovery of
highly qualified S&T manpower in diverse areas cellulose, hemi-cellulose and lignin was
and supported over 8000 research scholars. licensed to M/s Godavari Sugars at Rs.6.5
3300 students are pursuing PhD in various crore plus three per cent royalty. The carbon
CSIR Laboratories. Currently CSIR produces fibre technology was licensed to M/s. Kemrock,
500 PhDs and 2000 post graduate degree at a cost of Rs. 3.5 crore plus three per cent
holders and research trainees every year. CSIR royalty. Technology for Head Up Display for
is at the forefront of Intellectual Property LCA was transferred to BEL, Panchkula at
generation. It was granted 658 foreign patents Rs1.6 crore. With this achievement, India
and 1094 Indian during 2007-09 and it has became one of the world’s top five nations
2562 patents in force and 222 patents licensed producing HUD. During the year 2007-09 CSIR
as on date. The percentage utilisation of has received a total external cash flow of Rs.
patents is 8.67 per cent which is much above 754 crore of which around 32 per cent i.e.
the world average of 3-5 per cent. CSIR’s per Rs.247 crore was from Industry.
patent cost is lowest in the world amongst state
funded R&D organisations. 19.72. In the area of affordable healthcare, the
first ever large-scale comprehensive study of
19.71. A number of technology transfers have the genetic structure of the Indian population
taken place for catalysing industrial growth. has been completed, thereby creating a Indian
Design and development of a new generation Genome Variation database (IGVdb). This has
clot specific protein that displays plasminogen opened up new vista for developing predictive
activation property was transferred to M/s medicine using repeats and single nucleotide
Nostrum Pharmaceuticals, USA at Rs.19.60 polymorphisms. India’s Foot Print in Genomic
crore plus 5 per cent royalty. Technology for World - a CSIR initiative along with others led to
Caerulomycin A, and its proprietary derivatives reconstructing Indian population history.
and analogues (“Caerulomycin”) for their novel Prostalyn – an anti cancer drug - a herbal
indication of immuno-suppression – a discovery molecule obtained from M.koenigii and Tribulus
of immense importance in tissue transplantation terrestis for treatment of prostate cancer was
like in kidney and heart, was licensed to M/s released in the market. It has also developed
Nostrum Pharmaceuticals, USA at Rs.14.70 and commercialised Risorine, an advanced
crore plus two per cent royalty. Recombinant tuberculosis therapy, which will reduce cost of
streptokinase produced from E.coli was rifampicin, isoniazid combination by 23 per
launched by M/s Shasun Drugs & Chemicals cent. CSIR has also launched a novel ‘Open
through M/s Lupin Pharmaceuticals and M/s Source Drug Discovery’ project, which seeks to
Alembic Chemicals which would bring down the develop low cost new molecules for the
prices of clot busters significantly. The treatment of tuberculosis. CSIR’s Traditional
technology was transferred at a cost of Rs.1.00 Knowledge Digital Library (TKDL) in
crore plus 3.5 per cent royalty. A new anti-ulcer collaboration with AYUSH has emerged as a
drug - CSIR’s patented know-how on a natural unique resource to protect Indian traditional
agent for treatment of gastro-intestinal toxicity knowledge from exploitation through IP filings
associated symptom and ulcer was licensed to and has been adopted for prior art search by
M/s IPCA Laboratories Ltd, Mumbai at Rs.2.5 EPO and USPTO.
crore plus royalty. A facile process for
422 Mid-Term Appraisal of the Eleventh Five Year Plan

Mid Course Corrections Class Research Institute’ at Lucknow, approved

in July 2005 has progressed well and nearly 70-
19.73. During the Eleventh Plan period CSIR 80 per cent of the work has been completed.
would initiate new programmes such as: zero Meanwhile, due to increase in cost of civil
cost diagnostics, low cost therapeutics, and works, iron & steel, furniture and electrical air
affordable biomedical instrumentation. In the conditioning, the cost of the project has
area of sustainable energy, CSIR would launch increased. These major projects would be
programmes for: solar energy, technologies for completed during the Eleventh Plan at
energy efficiency, CO2 capture through enhanced cost.
synthetic biology, clean coal technologies, and
open source energy initiative. These would be 19.78. CSIR had proposed setting up of an
linked to the National Action Plan on Climate ‘Institute of Translational Research’ at
Change. It would also initiate some futuristic Hyderabad. With the establishment of
programmes such as: zerone - the India chip, Translational Research Institute focused at
novel materials, and nano devices, micro- health by DBT, CSIR has now proposed to
machines & robotics. CSIR has proposed to set setup research centres spread across various
up a few centres of excellence in niche R&D areas like affordable healthcare and sustainable
domains, in collaboration with well known energy as ‘Innovation Complexes’ and part of
national/international institutions. Two major Translational Centres.
initiatives in this regard are: CSIR-IISc Centre
for Neurosciences; and CSIR-ILS Centre of 19.79. In order to have a National visibility,
Excellence for affordable Healthcare. CSIR should have two to three flagship /mega
projects which are critical to the present
19.74. For strengthening the S&T human problems of the country to provide end-to-end
resource base CSIR has proposed to establish expertise for these flagship projects and
‘Academy of Scientific & Innovative Research’ demonstrate its technological competitiveness.
which would aim at the innovative curricula, There is a need to identify a major player for
pedagogy and evaluation for creating highest development of technology/product. The
quality personnel with cross disciplinary specification/deliverables of the final product
knowledge. should be based on the user requirement and
the expertise across S&T departments should
19.75. CSIR has proposed to set up an entity be used by networking with the best of the
company named ‘CSIR-Tech’ with the objective institutions and tapping the rest from within the
of innovation led inclusive growth through country or outside the country. Delivery in a
entrepreneurship. CSIR -Tech will be based on definite timeframe is critical and focus should
CSIR’s exploitable knowledge base and be on leadership in chosen areas.
spinning off scientific enterprises based on IP
secured by CSIR scientists. 19.80. Concerted efforts may be made to set
up an Autonomous Business Unit of CSIR on
19.76. The project on SARAS development is the lines of Antrix Corporation of DOS to market
at a critical stage and CSIR is contemplating to products and services.
bridge the technology gaps in collaboration with
aerospace experts like MDB, Russia, Piaggo, EARTH SCIENCES
Italy etc.
19.81. The activities in the field of Earth
19.77. The project on ‘Acquisition of Sciences cover a wide range of areas that
Oceanographic Research Vessel’ sanctioned contributes to various societal benefits in the
on 14 October 2005 could not be completed in fields of weather, weather advisories specific to
four years’ timeframe due to variation in prices agriculture, aviation, shipping, sports
in the international market. The contract for etc.; Monsoon, Disasters (cyclone, earthquake,
vessel construction was signed in December Tsunami, sea level rise); living and non-living
2007 after going through the global tendering resources (fishery advisory, poly-metallic
process. The project on ‘Setting up of a World
 Science and Technology 423

nodules, gas hydrates etc), coastal and marine technology has been made operational. This
ecosystems and climate change. will help in disseminating location specific
advisories in regional languages to over 225
19.82. Under Atmospheric Science and nodes, three times a week. Besides,
Information Services, a major step on the information on Ocean State Forecast, basin
modernisation of IMD, has been accorded wide Ocean wave and Wind forecast
highest priority for providing accurate (resolution, interval and extent) for ten days at
observations and advance warnings against 0.5 x 0.5 degree resolution and at three-hour
natural hazards and to develop appropriate intervals has been made operational for
dissemination systems. Some of the major Arabian Sea, Bay of Bengal and Northern and
accomplishments towards this were: (i) Southern Indian Ocean, South China Sea, Red
Commissioning of ten GPS stations; (ii) Sea, and Persian Gulf. The work on Coral reef
Installation of 37 Digital Met. Data zonation mapping for Andaman & Nicobar
Dissemination (MDD) systems including one Island has been completed. Towards
each in Nepal and Male; (iii) Installation of strengthening of ocean observation systems,
integrated AMIs at Mumbai, Hyderabad, ground station for Ocean Sat-2 OCM Data was
Bangalore, Jaipur and Delhi Airports; (iv) established. Over 59 Argo floats (ten floats with
installation of 124 Automatic Weather Stations oxygen sensors), and 47 drifting buoys were
(AWS) apart from existing 125 AWS, and one deployed in the Indian Ocean. A wide range of
Earth station; (v) Setting up of a 17-station Real user-oriented data products being generated
Time Seismic Monitoring Network (RTSMN) as from the Argo Data, are made available through
part of Tsunami Warning System; and (vi) INCOIS Ocean portal for effective utilisation.
Acquisition of a set of four High Performance
Computing System (HPCS) for global data 19.84. A scientific expedition using the
processing and Numerical Weather Prediction international research facility at Ny-Alesund in
(NWP) for weather forecasting Services in IMD. Spitsbergen island of Norway has been
District-level agro-meteorological advisory undertaken for Arctic research. In the first
service along with five days in advance district phase, it has initiated three projects on
level weather forecast system, covering all the Atmospheric Studies, Arctic Microbes and Earth
300 districts was launched for farmers on 1 Sciences. Four more projects have been
June 2008 in partnership with a number of initiated in the second phase and an Indian
Central Government Ministries and Arctic Station “Himadri” has been set up at the
organisations, state level institutions, private base camp in Norway. A third research base
agencies, NGOs, progressive farmers and station in Antarctica at Larsemann Hills is also
media. Microzonation, a multi-disciplinary and being established after securing approval from
multi-institutional effort was launched during the 30th Antarctic Treaty consultative Meeting
period. It has direct application in disaster (ATCM).
mitigation and management, urban
development, planning, design and 19.85. For activities under Ocean Resources,
construction, and risk assessment to existing an instrument, along with complete hardware
life & property, defence installations, heavy and software has been developed in
industry and public utilities and services. While collaboration with Russia to measure sea bed
the microzonation of Guwahati and Sikkim has soil properties in-situ, at a depth of 5200 meter.
already been completed on 1:25,000 scale, the A prototype for Remotely Operated Vehicle has
work related to Delhi on 1:50,000 scale has also been developed and tested successfully at
been completed and the maps are being further a depth of over 3000 metre. India has become
refined on 1:10,000 scale. The Microzonation one among the handful of nations having the
for Bangalore is under process. capacity for deep sea mining. As a part of
technology development for harnessing the Gas
19.83. Under Ocean Science & Services, an Hydrates, development of a 6000m rated deep
integrated unique system of Fisheries water world class remotely operable vehicle is
Advisories based on identification of Potential nearing completion in association with the
Fishing Zones (PFZ), using remote sensing Experimental Design Bureau of Oceanological
424 Mid-Term Appraisal of the Eleventh Five Year Plan

Engineering, Russian Academy of sciences of 19.89. With Climate Change Science getting
Moscow. Further, survey and exploration of special attention and focus, a dedicated Centre
polymetallic Nodules has been carried out at a for Climate Change Research at Pune has
closer grid of 6.25 km. for selected blocks, been established to address scientific issues
alongwith development and testing of Artificial relating to climate change, including impact on
Nodule laying system. The entire work relating sectors like health, agriculture and water. A
to data/analysis of sea-bed sedimentation etc. programme on Cloud Aerosol Interaction and
has been completed to stake India’s claim to Precipitation Enhancement Experiment
the continental shelf by the prescribed dead line (CAIPEEX) was launched for Cloud Seeding to
of 12 May, 2009. understand cloud microphysics and rainfall
processes.
19.86. Low Temperature Thermal Desalination
(LTTD) Technology based desalination plants 19.90. Under Disaster Support activities, the
of 1 lakh litre capacity are being setup at state-of-the-art Tsunami Warning System with
Minicoy, Agatti and Androth islands of world’s best infrastructure and communication
Lakshadweep and a 1 million litre per day LTTD system was made fully operational in October
plant was successfully demonstrated at 2007 at INCOIS, Hyderabad. A set of 17
Chennai (Tamil Nadu). Using waste heat from broadband Seismic observational Networks in
power plants, 1 lakh litre per day LTTD plant the peninsular India were also upgraded.
was demonstrated and produced fresh water at Towards this, an Earthquake Risk Evaluation
the first trial run at the North Chennai Power Centre was created in New Delhi to evaluate
Plant. seismic hazards at a very high resolution.

19.87. The construction of multipurpose 19.91. A dedicated programme for

vessel, Sagar Nidhi, equipped with the state-of- strengthening the extramural research in the
the art facility was completed and field of Ocean, Atmosphere and seismology, in
commissioned. The vessel is capable of a number of research organisation/universities
conducting multi-disciplinary studies in the have also been initiated towards Capacity
coastal and deep sea continuously for 45 days Building in the field of Earth & Atmospheric
with 30 Scientists onboard the vessel. Sciences. MTech and PhD programmes with
Indigenous Development and testing of a IIT-Delhi, CSIR and IISC have been initiated for
bottom pressure recorder for Tsunami Early advanced ocean atmospheric modelling. A
Warning System was completed at the acoustic major collaboration agreement with National
test facility. A set of mining equipments such as Oceanic and Atmospheric Administration
Crawler, Crusher, in-situ soil tester, remotely (NOAA) in the field of meteorological science
operable vehicles have been developed and and services has been signed.
tested in the field for harnessing the ocean
mineral resources. Mid Course Corrections

19.88. An Atlas on Marine Mammals of the 19.92. Out of 34 schemes being operated by
Indian Exclusive Economic Zone (EEZ), and the Ministry, some of the major schemes which
Climatological atlas on the Seasonal Patterns of are not performing well, include: Modernisation
Environment and Productivity of Indian of India Meteorology Department; Multi-
EEZ were prepared and released. A Field channel Seismic System onboard Ocean
Research Station at Agatti island of Research Vessel (ORV) Sagar Kanya;
Lakshadweep was set up to develop the Development of manned submersible;
hatchery technology for the captive breeding of Demonstration of Shore Protection measures
marine ornamental fishes and transferred through Pilot project; and Seafront facility.
technologies to the islanders. Two molecules
extracted from the marine organisms are in the 19.93. Four major schemes, (i) Desalination
advanced stage of development and one Project; (ii) Coastal Research Vessels (CRV) &
compound with anti-diabetic properties is other research vessels; (iii) National Institute of
undergoing multi-dose clinical trials. Ocean Technology (NIOT) extension Centre,
 Science and Technology 425

West Bengal; and (iv) National Oceanarium forecasting could be taken up in a focused
have not yet been approved. The Ministry of manner. There is also need to evaluate the
Earth Sciences needs to expedite the instrumentation component with respect to
processes to get the approvals of the pending global standards. Few eminent scientists with
Eleventh Plan projects as well as the new modelling and forecasting expertise may be
proposals put forward at the mid-term stage involved in the entire method of prediction.
and take appropriate measures for
implementing various schemes on a fast track. 19.97. Ocean Science and Technology as a
discipline need to be expanded to take care of
19.94. It is proposed to take up a few new the emerging requirements. Specific courses
activities under various areas. These include, and departments need to be created at IITs and
Integrated Project over the Himalayan Region; IISERs. In addition, North East Hill University
Seismology centre; Aircraft probing and (NEHU), Shillong may be developed as a
cyclone; High Altitude Station in Maharashtra; Centre of Excellence in this field.
and Development of Coupled assimilation-
forecast system. It is proposed to initiate a WAY FORWARD
multidisciplinary, multi-institutional study on
Ocean Bio-geochemistry of the Indian Ocean 19.98. It is becoming increasingly evident that
and establish a Centre for development of Gross Investments into Research and
drugs from the sea. It is also proposed to Development form an important indicator of
launch an integrated programme for island global competitiveness of Science, Technology
development through S&T intervention. and Innovation systems of countries. Global
Towards development of human resource for competitiveness of India in knowledge economy
providing a wide range of services in the field of does call for larger investments into Research
ocean, atmospheric, climate and seismological and Development than what have been
services, an advanced Training School is possible until the Eleventh Plan period.
proposed to be set up at Pune. Eleventh Plan programmes have laid the
foundation for further strengthening the R&D
19.95. The Ministry has two major Research base of the country which needs to be
Vessels viz. ORV Sagar Kanya vessel, and consolidated in the coming years.
Fishery and Oceanographic Research Vessel
(FORV), Sagar Sampada, which are more than 19.99. Public investment into R&D has thus far
25 years old and need to be replaced to centred around public funded institutions with
undertake major activities envisaged during the finite challenges in migrating research outputs
Eleventh Plan period such as Myctophid survey into economic development processes. Public
of the central and western Arabian Sea and investments into PPPs in R&D sector may
deep-sea fishery surveys of the Indian require a different paradigm of planning. Tools
continental slope. required for making decisions on public
investments into PPPs require management
19.96. The pace of implementation of the IMD innovations.
modernisation scheme has been very slow and
a cause of concern. There is a high level of 19.100. R&D cannot be left to government
urgency to complete the modernisation, which efforts alone. Much greater investment in R&D
is already delayed. Considering this, is needed from the corporate sector. Currently,
appropriate time targets should be adhered to the industrial sector in India spends around
strictly. IMD is making long, medium and short 0.54 per cent of the sales turnover on R&D. In
term forecasts across the country. Efforts particular, the Public Sector Undertakings
should be focused more on regional and locale- should do R&D not only in-house but by
specific forecasts and over a greater time research contracting with scientific institutes
horizon so that farmers can benefit. Regarding and national laboratories. Appropriate fiscal
Meteorological research, there is need to give incentives need to be put in place for this
more emphasis on modelling aspect and the purpose.
issues of long, medium and short term weather
426 Mid-Term Appraisal of the Eleventh Five Year Plan

19.101. Most planning processes hitherto have off technologies from strategic sectors which
adopted a supply side approach for sizing the have direct social relevance.
investments into R&D. In case of some select
sectors, demand side assessment followed by 19.105. Science and Technology Developments
strategic investment based approach will be in the country presents several possibilities of
necessary. Most Asian countries like China, intervention for the socio-economic
Korea and Singapore have adopted such paths development, particularly for finding innovative
during the recent past with success. technological solutions for the sectors like
health, education, energy, water, food and
19.102. It is necessary to look at the innovative nutritional security. The Science and
component of several technologies that have Technology Councils established in the states
been developed by the three strategic to serve this objective have not been able to
departments (viz. Atomic Energy, Space and play their rightful role. Similarly, the linkage
DRDO) for their own respective needs, but between the scientific agencies and the State
which also represents a fund of ideas which S&T Councils/State S&T departments has been
could have broader relevance in the context of sub-optimal. In the remaining period of the
unique initiatives on innovation. If mapped Eleventh Plan, it is necessary to embark upon
properly, this could trigger unique mechanisms some initiatives that would focus on these
for encouraging innovation and ensuring the aspects and to develop certain proof of concept
right impact on the social, industrial and models for achieving these. This could provide
strategic sectors in the Twelfth Plan. A the necessary lead for major initiatives in the
preparatory step in this connection needs to be Twelfth Plan.
encouraged by various departments, as well as
those of public and private sectors that could 19.106. Department of Space has demonstrated
enable developing strategies for undertaking the power of multiple institutions working
these dimensions of S&T activities in the together towards achieving important mission
Twelfth Plan. objectives like, development of launch vehicles
and satellites. Its impact at the national level in
19.103. Over the years, several emerging areas the socio-economic sectors as well as in
of science and technology have been identified strategic sectors has also been demonstrated.
and appropriate institutional framework created However, there is a need to further strengthen
to enhance India’s Research & Development the linkages that have been established,
base and capability. However, the question of particularly with various user agencies by
continuing relevance and critical review of some creating appropriate institutional mechanisms to
of the existing institutions, structures, sustain the flow of the benefits accruing to the
mechanisms have not been simultaneously society.
addressed. It is time to conduct such reviews to
ensure that the much needed resources, both 19.107. Department of Atomic Energy has made
financial and human, are deployed in an optimal impressive strides towards achieving self-
fashion. To derive maximum benefits of the reliance in an area which is complex and at the
investments, greater emphasis also needs to be same time governed by strong international
given on the use of industrial infrastructure and controls that inhibit transfer of various
creation of appropriate institutional framework technologies. Against these challenges, the
cutting across departments and other kinds of country has demonstrated its capability to go at
organisational mechanisms. it alone which is both timely and appropriate.
However, the nuclear power scenario projected
19.104. Technological capacity in the area of for the coming decades depends critically on
agriculture, water management, medicine, operationalisation of the fast breeder reactor
clean energy and transport needs to be system followed by the development of third
accelerated based on our own efforts as well as stage of the nuclear fuel cycle involving the use
through global partnerships. Greater thrust is of Thorium that is abundantly available in the
also needed for dissemination of various spin country. The fast breeder reactor needs
accelerated efforts and several technological
 Science and Technology 427

challenges are to be addressed on an urgent role in accelerating inclusive development in the

basis. It is difficult to place an exact time frame country and breaking out of the traditional silos.
for operationalisation of fast breeder reactor It must find solutions that will enable people to
system before having a clear understanding of obtain basic needs for a good life at affordable
different technological approaches and options costs. These include good quality healthcare,
as well as creating the necessary industrial low cost energy sources, adequate quantities of
capabilities for large scale replication of such clean water, environmentally sustainable
systems. The third stage of the nuclear fuel transportation, affordable housing, universally
cycle, considering the technological accessible high quality education etc. In
complexities and need for intensification of addition, of course, Indian Science and
research and development, would call for Technology capabilities must enable the
stepping up infrastructural capabilities, creation country to become strategically secure in its
of appropriate human resources as well as defence, communications and energy
putting in place the required financial requirements. New models of PPP must be
investments. A critical assessment of these developed for research, industry-academy
issues may be carried out by the department collaborations must multiply, and more effective
during the remaining period of the Eleventh collaboration with organisations in advanced
Five Year Plan so that realistic strategies can countries need to be made. Indian talent,
be worked out and realised during the perhaps even grass-roots talent, outside the
subsequent plans. formal Science and Technology establishments
can also contribute to the inclusion agenda, as
19.108. Bio-technology research and described later in the Chapter on Innovation.
development has made impressive strides with Indeed, the more inclusive and open the
modest investments particularly in process of innovation, the more likely it will be
pharmaceuticals, health and agriculture sectors to find the required solutions at low cost that the
through building up a limited and appropriate country needs for its agenda of inclusive
human resource, creating models of public- growth. New organisational architectures will
private partnership as well as bringing in enable innovations in the processes of R&D. An
international collaboration to accelerate the example is the Open Source Drug Discovery
pace. The department has also been Programme, led by CSIR, for finding a cure for
developing relevant legislative framework and is tuberculosis.
putting in place the necessary regulatory
mechanism in the context of the overall safety 19.110. Sustained action and timely
of biotech products and processes. The future implementation of the carefully developed S&T
expansion of this sector will critically depend on Plan may yield for the country desired results.
enhancing the human resource base and the The S&T sector must get fully integrated with
requisite infrastructure as well as ability to forge the development needs of the country through
stronger linkages with the industry. appropriate programmes and technological
interventions as well as solutions.
19.109. The challenge therefore for the Science
and Technology institutions is to play a stronger
428 Mid-Term Appraisal of the Eleventh Five Year Plan

Appendix 19.1

Eleventh Five Year Plan Emphasis - Significant Initiatives/Contributions (Illustrative)

Stated
Emphasis of the Agency/
Actions/Initiatives taken Status
Eleventh Plan Department
Programmes
Bill Passed by the
Formation of Science and Engineering
DST Parliament. Will be in
Research Board
position soon
Setting up Promotion of University Research and
DST Operationalised
National -level Scientific Excellence(PURSE)
Mechanism for Redesigning University Life Science
providing Departments for Interdisciplinary Research DBT Operationalised
directions to basic and Education
Research Science Advisory Council to the Prime
DST Constituted
Minister
Science Advisory Council to the Cabinet DST
Approvals obtained
Established 12 new research institutions and
DBT,DST and some of them
7 different types of fellowships
are already functional
Wellcome Trust - DBT alliance,
DBT Initiated
Ramalingaswamy fellowships
Ramanujan Fellowships, Scientists and
DST Initiated
Technologists of Indian Origin
50% increase in the value of PhD fellowships All S&T
Initiated
in the country Departments
Doubling the number of fellowships of
CSIR,
doctoral research and providing post doctoral Initiated
DST,DBT
fellowship schemes
Special re-entry programmes for Scientists of
DBT, CSIR Initiated
Enlarging pool of Indian origin
scientific Fellowships for special areas like glaciology,
DST, MoES Initiated
manpower computer sciences, climate change science
Chair professorships and student fellowships DBT, MoES,
Established
in centers of excellence DST,
COS decision
Exemption from deemed abolition of S&T
MST obtained. Cabinet
posts
note ready
ADCOS (Advisory Committee on Space
DOS Initiated.
Science) Research Fellowship Scheme
Setting up of BARC Training School at
DAE Established
IGCAR for Fast Reactor program
Niche overseas long-term and short-term
fellowships in the areas of stem cell biology,
DBT Initiated
nano-biotechnology, bio-design, molecular
breeding etc.
Attraction and Innovation in Scientific Pursuit for Inspired
DST Launched
retaining young Research(INSPIRE)
 Science and Technology 429

Indian Institute of Space Science and

DOS Established
Technology
CSIR-Academy of Scientific & Innovative
Research(AcSIR) Proposal of
Proposal made
CSIR

Establishment of new academic institutions

DAE Established
like NISER
Post Graduate Research Training
CSIR Implemented
Programme in Engineering
Establishment of DAE-Mumbai University
DAE Established
Centre for Excellence
Industrial placement for training -post
graduates in life sciences and biotechnology DBT Initiated
on large scale
Nano mission DST Mounted
Water Technology Mission DST Mounted
Vaccine grand challenge DBT Mounted
Small Business Innovation Research Initiative DBT Mounted
Synthetic biology initiative CSIR proposal made
Open Source Drug Discovery CSIR Initiated
Modernization of Met Observation system
including advanced weather modeling and MoES Initiated
Super Computer system
Regional Tsunami Watch Provider
MoES Established
Operations
Earth Observation System MoES, DOS under establishment
Ocean observation system MoES under establishment
Successfully
Chandrayaan-1 Mission DOS
completed
Successfully
Oceansat-2 mission DOS
completed
National Flagship
programmes for DST, MoES,
National Mission for Sustaining Himalayan Proposal made to
technological MoEF, DOS,
Ecosystem PM’s Council
competitiveness DSIR
on a Mission Ministry of
In principle approval
mode National Mission on Strategic Knowledge for S&T and
Obtained from PM’s
climate change MoEF and
Council
MoES
Geospatial Technology applications mission DST Mounted
Demonstration unit of a Compact High Design getting
DAE
Temperature Reactor at BARC, Mumbai completed
Demonstration of fabrication technology of
sodium bonded metallic fuel elements for fast DAE Initiated
reactors
Pre-service, in-service and post irradiation
examination technology to be developed for DAE Initiated
FBR Fuels
Development of high power lasers for
engineering applications in nuclear and DAE Initiated
industrial fields
Bioenergy Grand Challenge DBT Mounted
Microbial prospecting for genes and
DBT Mounted
molecules
430 Mid-Term Appraisal of the Eleventh Five Year Plan

Translation Research in Agriculture

DBT Established
biotechnology
Macromolecular structure and function DBT Established
Microbial Repositories DBT Established
Advanced Seismic Testing Facilities SERC/CSIR Established
Low Temperature Thermal Distillation plant MoES Established
Modernization of Met Observation system MoES Under Establishment
High Altitude cloud physics laboratory MoES Under Establishment
Aberration Corrected Transmission Electron JNCASR/
Established
Microscope DST
Devasthal 3.6 m telescope and HAGAR
ARIES/IIA/
facilities Under Establishment
DST
Bio Safety Level 4 facility DST/CSIR Under Establishment
Establishing
globally Climate observatory, low altitude wind
Initiated and nearing
profiler, Lidar system for boundary layer DOS
competitive completion
Research aerosol and Cloud studies
Facilities Initiated and nearing
Indian Space Science Data Centre DOS
completion
A multi-institutional, multi-organisational Awaiting Site
DAE, DST
India-based Neutrino Observatory clearance
A high flux multipurpose research reactor at
DAE Initiated
Visakhapatnam
Upgradation of APSARA reactor by
DAE Initiated
enhancing reactor power up to 2 MW
A first of its kind in the country 250 MeV
Superconducting cyclotron for proton beam to DAE Initiated
be constructed at VECC, Kolkata
National Radioactive Ion Beam Facility at Under
DAE
Kolkata Implementation
Upgradation of INDUS-2 for better utilisation Under
DAE
by scientific community Implementation
Biotechnology Industry Partnership
DBT Mounted
Programme
National Development Services Agency DBT Mounted
Biotechnology Industry Research Council DBT Mounted
Protection of Intellectual Property Bill DBT Under Discussion
Innovative spirit
New Millennium Indian Technology Under
to translate R&D CSIR
Leadership Initiative (Revised) Implementation
leads in scalable
Innovation law DST under discussion
technologies
National Innovation fund DST Launched
National effort on development and
commercialization of inventions and
DSIR/CSIR Mounted
innovations along with relevant Guidelines
for CSIR
Developing new Small Business Innovation Research
models of PPP in Initiative, Biotechnology Industry Partnership DBT Launched
higher education, Programme
particularly in Technology/IP management capacity DBT,DSIR Launched
universities and
Consolidation of University Research,
high technology DST Launched
Innovation and Excellence
areas
New means of Global Innovation and Technology Alliance DST Initiated
 Science and Technology 431

Biotechnology Incubator parks DBT Initiated

Biodesign programmes DBT Initiated
Innovation clusters DBT, DST Initiated
Thematic centers in centers of excellence in
DST,DBT Initiated
academic institutions
Novel Units for training, innovation, capacity
DSIR Initiated
augmentation and learning
CSIR-TECH CSIR Under Discussion
New Joint fellowship programmes and joint
DST,DBT Launched
Extra Mural Research Proposals
Indo-UK Science and Innovation Council,
Science bridge, UKIERI,EPSRC-DST
DST Launched
initiative on solar PV and next generation
telecom network
Facility for Antiproton Ion Research(FAIR) DST Under Finalization
Indian beam line in Synchrotron at KEK,
DST Initiated
Japan
Beam line facilities in Synchrotron at Petra III,
DST under Discussion
Germany.
Beam line facilities in Synchrotron at
DBT Initiated
Grenoble, France
Indo-US Research endowment Board DST Formation Finalized
Promoting strong Science Express, partnership institutes with
DST Initiated
linkages with Max Planck
advanced Indo Australian Strategic Research fund DST,DBT Launched
countries ITER, CERN, ALICE, DAE,DST Under Discussion
including Solar Energy Research Initiative with Russia CSIR MoU Signed
participation in Under
mega science Indo -EU framework programme DST,DBT
Implementation
Under
Indo Canada DST,DBT
Implementation
Under
Indo-Finland, Indo-Denmark DBT
Implementation
CSIR- RISE (Research Institute for
CSIR MoU Signed
Sustainable Energy)
MoU signed with
University of
Synthetic Biology programme CSIR
Berkeley.
Programmes initiated
Under
Stanford-India Biodesign programme DBT
Implementation
432 Mid-Term Appraisal of the Eleventh Five Year Plan

Annexure 19.2
Financial Performance of Science and Technology Sector
at the Mid Term Stage of Eleventh Five Year Plan
(Rupees in Crore)
(At current Prices)

2007-08 2008-09 2009-10 2010-11 2007-11 %

Eleventh Anti Utilization
S. Name of the Plan Allocation Exp. of
No. Department (Approved BE Actuals BE Actuals BE AE BE (4+6+8+ Allocation
Outlay) (5 + 7 (2007-10)
10)
+9+ 10) (12/11)*100
1 2 3 4 5 6 7 8 9 10 11 12 13
Department of
Atomic Energy 11000.00 1215.00 978.46 1228.00 1313.81 1638.00 1638.00 2084.86 6165.86 6015.13 97.56
1 (R&D)

Department of
30883.00 3420.00 2821.75 3600.00 2810.02 4100.00 3164.03 5000.00 16120.00 13795.80 85.58
2 Space

Department of
6389.00 675.00 616.68 900.00 871.77 1000.00 878.45 1200.00 3775.00 3566.90 94.49
3 Biotechnology

Department of
Science and 11028.00 1526.00 1266.89 1530.00 1517.12 1775.00 1668.69 2025.00 6856.00 6477.70 94.48
4 Technology

Department of
Scientific and
9000.00 1070.00 1054.98 1200.00 1189.00 1350.00 1278.10 1600.00 5220.00 5122.08 98.12
Industrial
5 Research

Ministry of Earth
7004.00 690.00 359.06 750.00 469.56 900.00 756.06 1000.00 3340.00 2584.68 77.39
6 Sciences

Grand Total 75304.00 8596.00 7097.82 9208.00 8171.28 10763.00 9383.33 12909.86 41476.86 37562.29 90.56
 20
Innovation

20.1. India needs innovation to accelerate developments through formal R&D. But
its growth and it needs innovation to make many others, such as innovations in low cost
growth more inclusive as well as surgeries and low cost mobile services
environmentally sustainable. Innovation is mentioned before, arise outside scientific
the process of creating something desirable and industrial laboratories. They arise from
that prevalent expertise says is not possible. new ways of doing things. Indeed, new ways
An innovation can be a product like the Nano of approaching work that will engage more
— a modern car that costs less than one people in productive economic activity are
lakh rupees. An innovation can also be the the sort of innovations required for inclusive
way of doing things differently to produce growth: for example rural BPOs, which are
results that are very desirable but cannot be providing jobs in villages and small towns
obtained by ‘business as usual’. Conducting and also enabling BPO service providers to
eye surgeries to the same standards as the access a larger pool of human resources and
best in the world but at a very small thus manage their own costs better.
percentage of the cost is one example.
Providing access to mobile phone services to 20.4. International comparisons of
hundreds of millions of people in the country innovativeness of nations rank India very
at a fraction of the cost at which they are low. Since India spends much less on R&D,
provided in rich countries is another. The has fewer scientists per million of population
Nano, low cost eye surgeries, and low cost and produces fewer patents in relation to the
mobile phone services are only a few size of its economy than other countries, the
examples of the many innovations brought conclusion is that India cannot have the
about in India. same capabilities for innovation as those
that spend more on R&D, have more
20.2. Innovations are not just about the scientists, and produce more patents. These
products or processes that produce them. conclusions arise from the paradigm of
They are also important in the design of ‘innovation equals science and technology’.
government programmes. The country has a This is a misleading view of what innovation
huge backlog of unmet needs in education, is and what the sources of innovation are. It
health, water, urbanisation and provision of also gives a misleading view of India’s
other public services. The sums of money innovation potential. Because, as mentioned
required to meet these needs through above, many useful innovations that
conventional approaches are enormous and transform the lives of people arise outside
there is doubt about the ability of the existing the scientific and industrial establishments
programmes to deliver. Therefore where expenditure on ‘R&D’ is measurable.
innovations are necessary in the approaches
to these issues and delivery mechanisms, 20.5. According to a recent global
along with innovations in products and comparison within this framework of
services. competitiveness of countries presented by
the World Economic Forum, India scores
20.3. Many innovations arise from poorly, even though it ranks high on
scientific advances and technological innovation, because the authors discount
434 Mid-Term Appraisal of the Eleventh Five Year Plan

India’s innovation scores on the grounds that ‘frugal impact’ on the earth’s resources. A
it is not appropriate for India to be focused paradigm which bases its assessment of
on innovation at its present stage of innovativeness on the quantum of expensive
development. The more correct view would inputs deployed—the numbers of scientists,
be that India must use the power of expenditures on R&D etc—cannot by
innovation to improve its factors of definition be frugal. In fact, innovation with
competitiveness—its large pool of potentially expensive resources will tend to produce
employable people being one of them and it expensive innovations because the cost of
must also innovate ways to improve innovation must be recovered in the prices of
efficiencies. In other words, innovation will the products it produces. This is the dilemma
help India to progress faster through stages of the ‘innovative’ companies in the
of development. pharmaceutical industry, for example. They
find it economically difficult to justify
20.6. For these reasons, it is necessary to development of low cost solutions for
pay special attention to the importance of ailments that affect poor people. Frugality is
and scope for innovation viewed as a multi the production of desired outputs with fewer
dimensional concept. Indeed, there is a need and less costly inputs. Therefore, inclusive
for innovation in the concept of innovation and frugal innovation requires, as mentioned
itself. earlier, innovation in the concept of
innovation itself.
INCLUSIVE AND FRUGAL INNOVATION
20.8. India is rich in frugal innovation which
20.7. India needs more ‘frugal innovation’ is perhaps an inevitable consequence of
that produces more ‘frugal cost’ products and resource scarcity. When resources are
services that are affordable by people at low limited, people are compelled to find
levels of incomes without compromising the innovative ways to fulfill needs within their
safety, efficiency, and utility of the products. limited resources. Low cost eye and heart
The country also needs processes of surgeries, low cost phone services and the
innovation that are frugal in the resources Nano, are examples of high quality products
required to produce the innovations. The and services that are frugal in costs and
products and processes must also have hence affordable (Box 20.1). The ‘Honeybee

Box-20.1
Frugal Innovation

An example of a ‘barefoot innovator’ is Raghav Mahto from Vaishali District in Bihar. Only a
second grade pass, Mahto was inspired by a cordless microphone to create an FM radio
transmitter with which he transmitted for five years from his electronics repair shop, pioneering
the concept of community radio with cheap broadcast equipment, empowering the rural masses.
Mahato’s station was shut down by authorities when they realized he did not have a license.
The Digital Empowerment Foundation brought Mahato to Delhi, put him through an ICT and
computer training programme, and provided him with equipment to run a community information
centre. Meanwhile the concept of community radio was picking up and the Barefoot College
(BFC) in Tilonia village in Ajmer district commissioned him to set up a low cost studio, making
cheap FM radios, and putting together the digital infrastructure to run a station. Mahato has
digitized BFC’s records of folk music, art, and culture. Along with these, he has recorded
programmes of local relevance, Right to Information Act, and the National Rural Employment
Scheme.
BFC has a community radio license now. Barefoot Radio Tilonia was formally launched on 9
November 2009. Mahato’s question to everyone was: “When will I get legal permission to
manufacture FM transmitters costing Rs.50? So that every 10-20km there can be community
radio stations helping us grow into a true information society?”
(Source: Osama Manzar, ‘Tech Tools’, Mint, November 13, 2009)
 Innovation 435

Network’1 has documented over 100,000 Stimulating the Innovation Eco-System

innovations from grass-root inventors in
India. Many of these inventors do not have a 20.10. India needs to stimulate its entire
formal education and many are from rural innovation eco-system—the formal scientific-
areas. They exemplify innovation that industrial system, as well as its large informal
springs from frugal resources. eco-system— to develop solutions for the
country’s agenda of inclusive and
20.9. Innovations in delivery of sustainable growth.
Government services, sometimes without
any new technology or product, can improve 20.11. Eco-systems require accelerators
citizen satisfaction and reduce Government that create conditions for good seeds to
expenditures as well. There are examples of sprout and provide timely nutrients for plants
these from many parts of the country (Box as they grow. A survey of the experience of
20.2). Such ideas need to be spread around other countries, research into the conditions
and more widely applied, albeit with for innovation and the process of innovation,
customised to local needs. as well as experience in India, points to six
igniters and accelerators of innovation in an
economy that India should develop and use.
These are explained below.

Box 20.2
Innovation in Government

In Nagaland, through a process of ‘public-people’ partnership, government funded education,

health, and electricity services have been improved significantly and costs reduced too. The
process, described as ‘communitisation’, is based on a ‘triple T’ philosophy—Trust the
community, Train the community, and Transfer power and resources for day-to-day
management to the community. Incentives are provided to the community for improvement of
performance of these government managed systems. For example, in power, the community
undertakes responsibility for reducing unmetered power consumption and improving collection
of charges. A percentage of the improvements obtained is given back to the community to
invest in improvements of their choice. Similar approaches have been applied in education and
health services. Notable improvements in all these areas have been independently verified by
international agencies.

The e-Sewa project in Hyderabad has improved efficiency, as well as citizens’ convenience, by
on-line delivery of a host of government services including payment of property taxes,
electricity bills, vehicle taxes, reservation of bus tickets, etc. It has been implemented through
public-private partnerships. The Akshay Patra Mid-Day Meal program is a partnership between
the Akshay Patra Foundation and the Governments of seven States across which it has now
spread. It has adopted technology driven processes to provide high quality cooked meals at
low cost to over a million children.

1. Challenge the system

1
20.12. Studies of innovation in many fields
The Honey Bee Network is a network of organizations
devoted to promoting and spreading the benefits of grass
and in many countries reveal that
roots innovation. Its purpose is to gather and disseminate innovativeness cannot be injected into a
information about grass roots’ inventors and entrepreneurs system. It is drawn out of a system as a
and their ideas. Its members include the National
Innovation Foundation (promoted by the Department of
response to aspirational challenges. John F.
Science and Technology), SRISTI (Society for Research Kennedy’s goal to send a man to the moon
and Initiatives for Sustainable Technologies), and GIAN and back within a few years, which seemed
(Grassroots Innovation and Augmentation Network). far-fetched then, spurred the US innovation
436 Mid-Term Appraisal of the Eleventh Five Year Plan

eco-system of organisations in the private inclusive innovation’ can focus the innovation
and public sectors to respond, and it eco-system towards the high impact points
delivered. The goal to produce a modern car where opportunities for innovative solutions
which would cost only one lakh rupees may lie within these areas. For these ideas
spurred many organisations in the Tata and innovations can be invited and rewards
Motors’ eco-system to produce innovations offered. Of course many entrepreneurs and
that enabled a seemingly impossible goal to commercial organisations may seize the
achieve. The capabilities US organisations opportunities they are pointed to and not
developed in their pursuit of the national goal worry about the recognitions and rewards
of the man on the moon and the capabilities offered. Nevertheless, this will serve the
Tata Motors’ suppliers have developed to purpose of stimulating innovative solutions
produce a one lakh rupee car have created where they are required. However, for some
many other markets for them too. smaller entrepreneurs, the process of
recognition will bring them into the ‘market’
20.13. India’s innovation eco-system must for innovations, where investors and
be challenged and inspired to respond to potential partners will notice them and help
aspirational goals that will enable the country to grow their innovations.
to meet its inclusive and ecologically
sustainable, growth agenda. The innovations 2. A Knowledge-Learning Portal and
that innovators and innovative organisations Practice
will produce to achieve such goals can open
huge markets for them. 20.16. Greater Knowledge of innovations
can stimulate their adoption. It can also
20.14. The infrastructures of Indian cities stimulate adaptations and further
are unable to satisfy the needs of their innovations. Towards this end, a lively and
present inhabitants for water, sanitation, accessible data-base of innovations can be a
housing, roads and public transportation. In powerful accelerator.
the next 25 years another 300 million people
are expected to be living in Indian cities. 20.17. Many organisations are gathering
Therefore, the country must expect to make examples of innovations that have proved
huge investments to improve urban successful. They include various Ministries in
infrastructure. Experts estimate that 75 lakh the Government of India. For example,
crore rupees may be required for India’s innovations by government officers that have
urban infrastructure in the next 25 years, contributed to inclusive growth and
excluding the cost of housing. (Half of this community welfare are being gathered by the
will be required for capex, and the rest for Department of Administrative Reforms &
O&M.) It seems very difficult to raise so Public Grievances and examples of
much money, especially when there are so innovations in urban improvements have
many other competing demands in the recently been gathered and disseminated by
country—for education, healthcare, rural an agency supported by the Ministry of
infrastructure etc. Nevertheless the needs of Urban Development.
urban development must be met because
they are equally important for the goals of 20.18. Innovations in public policy and
inclusive growth in the country, especially innovations in delivery of public services are
when over half the country’s population will especially essential for accelerating inclusive
be living in towns and cities as projected growth. Such innovations lie outside the
over the next 25 years. conventional, industrial concept of innovation
with its emphasis on R&D labs, scientists
20.15. In all such areas, where the needs and patents. Such innovations may include
are on an immense scale, and requirement ways in which local communities are
of funds and resources to deliver against the engaged in the governance of their affairs.
agenda for inclusive growth may appear They may include models of ‘People-Public-
impossibly large, a ‘national mission for Private’ partnerships in which the people
 Innovation 437

who are the beneficiaries, whether farmers in for collaborative research in applications for
rural areas, or poor urban residents, are health, education, agriculture, and e-
integral to the design and management of governance. It is an important component of
schemes for their benefit. the larger platform and practice to be built.

20.19. An electronic repository may be 3. Early stage (Angel) funding

created in which good examples of
innovations in many domains are available. 20.21. Innovation requires a financial
The repository may be accessed through a system which is supportive and inclusive.
web-site which may also provide access to Broadly, three kinds of risks are required to
other web-sites and resources with be taken in order to convert an idea into a
examples. The web-site should give names thriving business (Figure 20.1). First is the
and contacts of persons and organisations ‘idea risk’ which is about the quality of the
associated with the innovations so that they idea that can be determined by its market
can be contacted by those interested to learn potential, the underlying technology selection
from them or to establish business and difficulty of replication. This risk exists at
relationships. The web-site should publish a the ‘product development’ stage. Second is
calendar of up-coming events and meetings the ‘execution risk’ which deals with whether
about innovation. The repository and web- the idea is brought to the market in a manner
site should be professionally managed to which adheres to the timelines and the
ensure its utility and to keep it up to date. budgetary constraints. This risk is taken at
the ‘start-up / first sales’ stage. Finally, there
20.20. In short, a resource is required to exists the ‘market risk’ which deals with
support a voluntary and lively ‘Innovation whether the customer will accept the product
Practice’, whose members will be or service and also depends on competitive
practitioners of innovation, and policy actions. This risk exists at the ‘expansion /
makers, investors, academics, and others market rollout’ stage.
interested in stimulating more innovation.
The National Knowledge Network, mooted 20.22. Venture Capital for technology
by the National Knowledge Commission, is innovation is a special type of financing
being implemented. It provides a platform arrangement. It is different from other

Figure :20.1

Source: NASSCOM BCG Innovation report 2007

438 Mid-Term Appraisal of the Eleventh Five Year Plan

financing models because its provision is comes from Angel Investors, a category that
customised to the needs of the receiver and can, in principle include Government
the skills of the provider. It is not a lender- agencies that provide low cost seed capital.
borrower transaction with standardised
contracts and requires close, ongoing, face- The Indian Venture Capital Context
to-face interaction.
20.26. With its growing economy and large
20.23. Venture capital funding necessarily potential, India is attracting many investors. It
involves sharing in the risks of the enterprise is amongst the top recipients in Asia for
and has to have the character of equity even Venture Funds and Private Equity Funds.
if it may not always look like it. In fact, since Investments through this route are estimated
early stage technology ventures may well be to have increased from US$ 500 million in
floated by technology specialist but 1998 to over US$19 billion in 2008.
entrepreneurial novices, the mentoring and However, so far, most of these investments
guidance provided by VC investors who have are going into relatively large and ‘safer’
domain knowledge and useful business investments, and perhaps less than 5 per
contacts may be crucial to the success of the cent are going into small early stage start-
enterprise. That is why venture funding also ups. The US economy is not only large, but
involves a substantially greater engagement is known to be innovative too. In the USA,
of the lenders in management especially in the number of deals for start-ups is
start-up firms. estimated to be around 3,900, with an
average size of deal of about US$ 6.7
20.24. The effectiveness of a venture million. Whereas in India, the number is less
funding ecosystem depends on the entire than 100 and the average size is around
range of options for risk capital finance. But it US$ 17 million. If PPP is factored, the
is important to note that without an adequate comparable size for India should be $2.2
system of funding at the very early seed million. Therefore, there is a big gap. It is
stage the deal flow for later stage venture estimated that there are over 1 million ‘angel’
capital may not be adequate. At the same investors in the USA investing in and
time the availability of early stage venture supporting small start-ups. In India, there
funding will depend on the exit options made may be fewer than 300 active angel
possible by strong private equity funds and a investors at this time. Clearly there is a
healthy stock market. One can distinguish weakness in the eco-system for innovation in
the following funding requirements in most India: small start-ups in India are not getting
cases: adequate investment support.

• Seed financing: to the technologist/

20.27. Some key trends of the Indian VC
entrepreneur to prove a concept
ecosystem are as follows:
• Start-up financing: for product
development and initial marketing to a • A vast majority of the funding in India is
few customers. still of the PE or PIPE (Private
• First stage financing: to initiate Investment in Public Equity) variety
commercial production and marketing. rather than the pure-play risk-capital
• Second stage financing: for expansion funding.
to scale. • There is almost a complete lack of seed
• Later stage financing: for expansion of stage Venture funding for the technology
an enterprise that is already profitable. sector in India. In most regions with
• Bridge/Mezzanine financing: as a strong VC ecosystems e.g US, Israel etc,
preparation for going public or for a combination of angel investors and VC
buyout/takeover. firms provide zero stage / idea stage
funding.
20.25. Seed and start-up financing is
seldom provided by venture funds and often
 Innovation 439

• There are hardly any technology sector 20.31. Since ‘angel funds’ and ‘venture
dedicated early funds and most of the funds’ are sprouting in the private sector,
funds invest across industries. Given the some leveraged with Government resources,
varied risk profile of industries, the high the role of a central Government fund for
risk investments e.g. early stage innovation should be to supplement these
technology firms, tend to lose out to initiatives and provide assistance when these
‘safer’ investments. funds may not. One area could be social
enterprise initiatives—innovations that will
• There is a lack of India denominated produce socially useful outcomes for poorer
funds with most of the PE funds being FII people. The financial returns from these
denominated which often leads to a initiatives will be more difficult to calculate
conservative investment profile. and to capture and therefore, a Government
• Early stage funding in India through fund could provide seed money and early
Government institutions (TDB, SIDBI, stage assistance to such initiatives till they
DBT, CSIR) is loan or grant oriented. can prove their value.
There is no special focus on the specific
technologies and the disbursement BOX -20.3
procedures tend to be complex and INNOVATION FUND
financially conservative. Additionally, the
government grants to start-ups are not An example of a fund drawing in private
accompanied with any mentoring which capital leveraged with Government
is critical to success of start-up ventures. money
20.28. However, in-spite of the growth in the
VC industry in India and the complementary • Early stage fund promoted by
increase in Govt schemes, the seed funding NASSCOMM & IKP Knowledge Park to
stage continues to be severely capital promote emerging technology driven
starved. The situation in India is reminiscent innovations in India
to that of Israel in the 80’s and USA in the • Overall corpus of Rs 100 crores through
70’s. The Yozma scheme in Israel and the a PPP model
SBIC scheme in US were the catalysts for • Anchor investors include Government,
creating the VC industry in these countries. TCS, Airtel, and IKP Knowledge Trust
While both Yozma and SBIC were • SEBI registered & professionally
Government sponsored, there was strong managed
private sector participation.

20.29. Similarly, the Indian innovation 4. Collaborative Enterprises and Clusters

ecosystem needs early stage funds acting as
angel investors created through Public 20.32. Innovation is fostered by
Private Partnerships. The advantage of such collaborative enterprises that bring together
a model will be patient capital investments the capabilities of many people and
coupled with professional mentoring and organisations. The organisations may even
management. be competitors who can benefit by working
together to build capabilities that are
20.30. To summarise, the crucial need now valuable to all of them but could not build
in India is to strengthen the research- alone, or by sharing their knowledge
finance-entrepreneurship linkages, to raise discover solutions they would find difficult on
the supply of risk capital for early stage their own.
activities and to ensure an enabling fiscal
and regulatory system which encourages risk 20.33. Such collaborative enterprises can
taking by financiers. take various forms. Some may be physical
clusters: many others may be virtual clusters
A fund to support social enterprise of many organisations and individuals who
initiatives work together, pooling knowledge and
440 Mid-Term Appraisal of the Eleventh Five Year Plan

resources for shared objectives. The Open innovation are multiplying. Some will do
Innovation Model being developed by CSIR better than others and there will be lessons
is aiming to develop a new tuberculosis drug to be learned. The proposed ‘Knowledge-
in a global collaborative effort using an ‘open Learning Portal and Practice’ can facilitate
source’ approach. By combining the the sharing of best practices amongst these
resources of many organisations it expects initiatives for making such collaborative
to develop affordable drugs for the world’s groups successful.
poor for diseases that the ‘innovative’
pharma companies are not interested in 5. Entrepreneurship Training
because they cannot recover their innovation
costs. 20.38. Innovation, as defined by the Royal
Society of Engineers, is the successful
20.34. An Enterprise Solutions for Poverty exploitation of new ideas. Therefore,
(ESP) Innovation Group has brought innovation and entrepreneurship can never
together several large Indian companies in a be too far apart.
major fruit and vegetable initiative to engage
large numbers of farmers directly, increasing 20.39. Many schemes are operating in the
productivity, quality, and earnings. These country to develop entrepreneurial skills.
companies include ITC, Tata Chemicals, Some are directed to unemployed youth,
Mahindra, Reliance, and Bharti. Each of others to students, and others to small
these companies is working to engage small enterprise owners. Some of these schemes
farmers in India in their businesses. Through are supported and managed by government
the ESP Innovation Group in agribusiness, agencies and some by academic institutions.
the CEOs of these companies have built the Others are managed by industry
trust to share challenges, key success associations and several by NGOs. Some of
factors and strategic choices. these schemes also receive support from
international organisations.
20.35. CAR (Collaborative Automotive
Research) has been created to establish a 20.40. CII has been running a successful
globally competitive transportation industry in programme, supported by the National
India. Four Panels help the CAR Program Manufacturing Competitiveness Council, to
Committees in identifying and evaluating inject innovativeness into running
suitable technology projects and preparing manufacturing enterprises, even large ones.
position papers. Participants in the projects CII’s Visionary Leaders for Manufacturing
are from academia (national labs, IITs, (VLFM) programme, is a unique programme
universities), automotive companies (vehicle that brings together senior leaders from the
& component manufacturers), software manufacturing sector and urges them to look
companies and high-tech start-up beyond the obvious, to see the invisible and
companies. to unearth latent needs of customers.

20.36. Many other clusters and collaborative 6. Making a market

initiatives to foster innovation have begun to
20.41. The Government can stimulate
operate in the country. These include
innovations through its purchases whether in
SIEN—the Science and Entrepreneurship
urban infrastructure, education, health, or
initiative hosted in IIT Powai; an automotive
renewable energy. In almost all fields
cluster in Pune; an initiative at the CMTI with
associated with inclusive growth and
involvement of ISRO to develop technologies
sustainability, Government is likely to be a
for flexible manufacturing, and many others.
principal buyer.
20.37. While several initiatives have
20.42. Therefore, Government can
Government support in different forms,
prescribe the standards it wants to achieve
some, like the ESP Innovation Group have
and the cost at which it will buy. The size of
no direct Government involvement. The good
Government demand provides innovators
news is that collaborations to promote
 Innovation 441

with an assurance of a market if they can and in many organisations. Hierarchical

meet the standards. control can stifle it. Therefore, any agency
that seeks to stimulate innovation in the eco-
20.43. Government can also provide a system must be clear about its role—which is
subsidy initially to cover the gap between the to facilitate and not to manage innovation.
commercially realisable price and the costs The persons in this agency must have the
of production with new technology. For skills and the style to give room to others and
example, solar-based power producers may not to prescribe. They must lead through
be given a subsidy for a few years to bridge their ability to influence and induce change
the gap between grid prices and the cost of and not by their positional authority.
generating solar power with present best
practice solar technology. Thus there is an 20.46. Innovation can be induced in many
incentive for innovators to enter the market, sectors by ‘missionaries’ for innovation in
improve their technologies, and expand their those sectors: in industry, education, health,
market. Similar principles can be selectively governance etc. The role of such
applied in other areas when the technologies missionaries and missions must be to
are not yet fully evolved but must be stimulate the innovation eco-system, to ignite
encouraged. innovation and to induce improvements in
the accelerators of innovation in their
INNOVATION MISSIONS sectors.
20.44. Since innovation is so important for 20.47. Because Innovation is so critical to
the country to achieve its goals of inclusive the country’s needs of more rapid, more
and sustainable growth, and since the inclusive and more sustainable growth and
innovation eco-system must be stimulated since innovation is required in all sectors of
widely, it is tempting to conclude that the the economy in the private and public
country needs a central agency to make it sectors and industrial and social sectors too,
happen. However, one must be cautious. the Planning Commission will have a major
Central agencies may even dampen the role to play in the stimulation of the
spirit of innovation within the eco-system. innovation eco-system across all sectors.
20.45. Innovation, by its nature, requires
freedom. Innovation happens in many places
 21
Water Resources

21.1. The Eleventh Plan recognised the demand action by the Ministry of Urban
special challenges of water resources Development. Ideally, this should be in close
management facing India and the likelihood that co-ordination with the rural-centred schemes for
these would only intensify over time due to very often they are both tapping the same
rising population, expected growth in source of supply. These examples can be
agricultural and industrial demand, the danger multiplied. They all illustrate a common point
of pollution of water bodies and, over the longer that we cannot continue to compartmentalise
term, the effect of climate stress on water the different uses to which water is put, as
availability in many parts of the country. On these are competing for the same unitary
reviewing these issues in the course of the Mid resource.
Term Appraisal, problems in this area appear
even more serious than originally assessed and 21.3. In this Chapter we briefly recount the
solutions are almost certainly more difficult. major features of the water problem facing the
country followed by a review of the performance
21.2. The central message emerging from the of the major schemes dealing with water in the
MTA is that we cannot expect to find a solution Eleventh Plan. We then present an outline of
unless we can come out of the silos into which the alternative approach that is necessary
we have divided water and take a holistic view which will have to be elaborated into an
of the hydrologic cycle. For example, operational strategy to be implemented in the
responsibility for ensuring adequate availability Twelfth Plan
of water for agricultural use is divided between
the Ministry of Water Resources, which is India’s Water Resource Problem
responsible for major, medium and minor
irrigation, the Department of Land Resources 21.4. Estimates of India’s water budget i.e.,
which is responsible for watershed annual flow of water available for human use
management, the Department of Rural after allowing for evapo-transpiration and
Development which is responsible for minimum required ecological flow – vary
MGNREGA that is strongly oriented to deal with considerably. The water budget derived from
water conservation issues, and the Department Ministry of Water Resources estimates and
of Agriculture which deals with water use summarised in the first column in Table 21.1
efficiency. Similarly, rural drinking water is dealt shows utilisable water of 1123 billion cubic
with by the Department of Drinking Water metres (BCM) against current water use of 634
Supply (DDWS) within the Ministry of Rural BCM suggesting more than adequate
Development, but rural drinking water availability at the aggregate level given current
overwhelmingly relies on groundwater and requirements. This is based on the Central
sustainability of this source depends crucially Water Commission’s estimate of India’s water
on interventions by other players and schemes resource potential as 1869 BCM. The Standing
that lie outside the purview of the DDWS. As Sub-committee of the Ministry of Water
India urbanises, issues of urban and industrial Resources estimates total water demand rising
water supply will gain in importance and
 Water Resources 443

to 1093 BCM in 2025, thus reaffirming a 21.6. In addition to the fact that aggregate
comfortable scenario. estimates suffer from data infirmities and
arbitrary assumptions and are still being
21.5. More recent calculations based on debated and contested, it is also important to
higher estimates of the amount of water lost to emphasise that in a country of such immense
the atmosphere by evapo-transpiration are physiographic, hydrogeological and
much less comforting. Narasimhan (2008)1 has demographic diversity, and also vastly different
recalculated India’s water budget, using an levels of economic development (hence water
evapo-transpiration rate of 65 per cent which use), water balances for the country as a whole
compares with world wide figures ranging from are of limited value since they hide the
60 per cent to 90 per cent instead of the 40 per existence of areas of acute water shortage and
cent rate assumed in the official estimates. The also problems of quality. What is required is a
result summarised in Table 21.1 is sobering. much more disaggregated picture, accurately
After allowing the same 48.8 per cent for reflecting the challenge faced by each region.
ecological flows, his estimate of water utilisable The exact level at which regions need to be
for human use comes to only 654 BCM, which defined would depend on the purposes of the
is very close to the current actual water use exercise, as also unifying features of the region,
estimate of 634 BCM. such as basin and aquifer boundaries.

Table 21.1 21.7. Traditionally, efforts to address water

India’s Water Budget (BCM), 2009 supply problems have focused on major and
Analysis based Estimates medium irrigation projects. However, use of
on estimates of based on water in India is characterised by an increasing
Ministry of Water World-wide dependence on groundwater for irrigation. The
Resources Comparison annual extraction of groundwater in India (210
Annual billion cubic metres) is by far the highest in the
Rainfall 3,840 3,840
world. As shown in Table 21.2, groundwater
2,500 (65 per
3840 - (1,869 + cent) today provides more than 60 per cent of net
Evapotranspir 432) = World-wide irrigated area. It accounted for over 85 per cent
ation 1,539 (40 per cent) Comparison of the addition to irrigated area in the last 30
Surface Run- 1,869 (48.7 per Not used in years. The area irrigated by canals and tanks
off cent) estimate has actually undergone a decline even in
Groundwater Not used in absolute terms since the 1990s.
Recharge 432 (11.3 per cent) estimate
Available 1,340 (35 per 21.8. Unfortunately the growing dependence
Water 2,301 (60 per cent) cent) on groundwater has taken the form of
1,123 (48.8 per unsustainable over-extraction, which is lowering
cent of 2,301) 654
the water table and adversely impacting rural
Utilisable Gupta and (48.8 per cent
Water Deshpande (2004)2 of 1,340)
drinking water. Table 21.3 shows that between
Current Water 1995 and 2004, the proportion of unsafe
Use 634 634 districts (semi-critical, critical and overexploited)
Current use has grown from 9 per cent to 31 per cent, the
Current use (634) (634) close to proportion of area affected from 5 per cent to 33
Remarks well below 1,123 654 per cent and population affected from 7 per
Source: Narasimhan, T.N. and V.K. Gaur (2009): A cent to 35 per cent.
Framework for India’s Water Policy, National
Institute for Advanced Studies, Bangalore 21.9. Recent work based on data from
NASA's Gravity Recovery and Climate
Experiment (GRACE) satellites3 reveals
1
Narasimhan, T.N. (2008): ‘A Note on India’s Water Budget
and Evapotranspiration’, Journal of Earth System Science, 117
3
2
Gupta, S.K. and R.D. Deshpande (2004): ‘Water for India in Rodell, M., Velicogna, I., and J.S. Famiglietti (2009):
2050: First Order Assessment of Available Options’, Current ‘Satellite-based Estimates of Groundwater Depletion in
Science, 86 India’, Nature, dci10.1038
444 Mid Term Appraisal of the Eleventh Five Year Plan

Table 21.2
Long Period Averages of Net Area Irrigated by Different Sources, 1950-2007
Total Total Others
Surface Ground (incl
Water Other Water both
Years Canals Tanks Tubewells Wells sw/gw) NIA
1950-51 to 1964-65 42 18 60 3 29 32 8 100
1965-66 to 1979-80 40 12 52 16 24 40 8 100
1980-81 to 1994-95 37 7 44 29 21 50 6 100
1995-96 to 2006-07 28 4 32 39 21 60 8 100
Source: Indian Agricultural Statistics, various issues; CWC, 2007

Table 21.3
Comparative Status of Level of Groundwater Development, 1995 and 2004
Level of Groundwater of Total Districts of Total Area of Total
Development* Population
1995 2004 1995 2004 1995 2004
0-50 (“Safe”) 82 55 89 52 80 45
50-70 (“Safe”) 10 15 7 16 13 20
70-90 (“Semi-Critical”) 4 13 2 14 3 17
90-100 (“Critical”) 1 4 1 5 1 3
>100 (“Overexploited”) 4 14 2 14 3 15
TOTAL 100 100 100 100 100 100
Source: CGWB (2006): Dynamic Ground Water Resources of India, Central Ground Water Board
* Level of groundwater development is the ratio of gross annual groundwater draft for all uses to net annual groundwater
availability. Net annual groundwater availability is defined as the annual groundwater potential (total annual recharge from
monsoon and non-monsoon seasons) minus the natural discharge during non-monsoon season (estimated at 5-10 of the total
annual groundwater potential)

significant rates of non-renewable depletion of entering a vicious infinite regress scenario

groundwater levels over large areas. The where an attempt to solve a problem re-
declines were at an alarming rate of as much as introduces the same problem in the proposed
one foot per year over the past decade. During solution. This development has been termed
the study period of August 2002 to October “hydroschizophrenia”,4 which entails taking a
2008, groundwater depletion in Rajasthan, schizophrenic view failing to recognise the unity
Punjab, Haryana and Delhi was equivalent to a and integrity of the hydrologic cycle. The most
net loss of 109 cubic km. of water, which is striking example of this in India is the increased
double the capacity of India’s largest surface- reliance on tubewells both for irrigation and
water reservoir. Annual rainfall was close to drinking water, not recognising that one can
normal throughout the period and the study potentially jeopardise the other. This leads to
shows that other terrestrial water storage the phenomenon of villages “slipping” back after
components (soil moisture, surface waters, being covered under rural drinking water
snow, glaciers and biomass) did not contribute schemes.
significantly to the observed decline in total
water levels. The study concludes that 21.11. Issues related to water quality have also
unsustainable consumption of groundwater for emerged as a major new concern over the last
irrigation and other anthropogenic uses is likely decade or so. Till the 1970s, quality issues
to be the cause. were to do with biological contamination of the

21.10. A major contributor to this rapid 4

Llamas, R. and P. Martinez-Santos (2005): ‘Intensive
depletion in water tables is the overwhelming Groundwater Use: Silent Revolution and Potential Source of
dependence on deep drilling of groundwater Water Conflicts”, American Society of Civil Engineers Journal
through tubewells, which today account for over of Water Resources Planning and Management, 131, no.4;
40 per cent of irrigation. Indeed, we are close to Jarvis, T. et al (2005): ‘International Borders, Ground Water
Flow and Hydroschizophrenia’, Ground Water, Vol.43, No.5
 Water Resources 445

main surface water sources due to poor misconceptions about the root cause of
sanitation and waste disposal, leading to problems7.
repeated incidence of water-borne diseases.
But today this has been supplemented by the 21.14. The Eleventh Plan contains a number of
serious issue of chemical pollution of schemes aimed at tackling different aspects of
groundwater, with arsenic, fluoride, iron, nitrate the water problem including especially
and salinity as the major contaminants. This is promotion of surface water irrigation, schemes
directly connected with falling water tables and for groundwater conservation and recharge,
extraction of water from deeper levels. States rural drinking water and urban water supply. A
continually report an increasing number of brief assessment of progress in these schemes
habitations affected with quality problems. together with recommendation for
improvements in future is given below.
21.12. According to the DDWS, out of 593
districts from which data is available, we have Irrigation through Surface Water
problems from high Fluoride in 203 districts,
Iron in 206 districts, Salinity in 137 districts, 21.15. The Eleventh Plan had established a
Nitrate in 109 districts and Arsenic in 35 target of creation of additional irrigation
districts. Biological contamination problems potential of 16 million ha (9 mha through major
causing enteretic disorders are present & medium irrigation and 7 mha through minor
throughout the country and are a major irrigation projects). Progress so far has been
concern, being linked with infant mortality, slow. Against the anticipated annual rate of
maternal health and related issues. Estimates creation of irrigation potential of about 3.2
made for some of these water quality related million ha, the average rate of creation of
health problems suggest a massive endemic irrigation potential during the first three years
nature – Fluorosis (65 million (Susheela 2001)5 will be about 1.83 million ha per year (Table
and Arsenicosis [5 million in West Bengal 21.4).
(WHO 2002)6 and several magnitudes more,
though not estimated from Assam and Bihar]. 21.16. The poor rate of achievement of target
reflects deep seated problems with major and
21.13. Fluorosis caused by high Fluoride in medium irrigation projects. Major irrigation
groundwater leads to crippling, skeletal projects normally have a gestation period of 15-
problems and severe bone deformities. On the 20 years while medium projects take 5-10 years
other hand, Arsenicosis leads to skin lesions for completion. Against these norms, a large
and develops into cancer of lung and the number of major as well as medium projects
bladder. Both these diseases have also been are continuing for 30-40 years or even more.
related to a variety of other problems including This is due to poor project preparation and
brain disorders etc. Apart from adults who are implementation as well as thin spreading of
already affected, these two problems alone available resources. There is a spillover of 553
threaten a whole generation of children from projects (182 major, 273 medium and 98 ERM
physical and psychological disabilities and life- projects) into the Eleventh Plan from previous
threatening diseases. Being physically Plan periods. Around 56 per cent of these 553
distinguishable, these diseases create a social
stigma for affected persons and lead to several

5
Susheela AK, 2001, A Treatise on Fluorosis, Fluorosis
Research and Rural Development Foundation, Delhi
6
WHO, 2002, An overview: Gaps in health research on
th 7
Arsenic Poisoning, 27 Session of WHO South-East Asia S. Krishnan (2009): The Silently Accepted Menace of
Advisory Committee on Health Research 15-18 April 2002, Disease Burden from Drinking Water Quality Problems,
Dhaka, Bangladesh Submission to the Planning Commission
 446 Mid Term Appraisal of the Eleventh Five Year Plan

Table 21.4:
Eleventh Plan Target and Achievements in Irrigation Sector (million hectares)
Project XI Plan Achievement Target for Percentage Proposed Revised
Target 2007-08 2008-09 2009-10 achievement Target
Major & Medium 9.00 0.84 1.02 0.90 31 5.00
Irrigation
Minor Irrigation 7.00 0.89 0.90 0.90 38 4.50
Total 16.00 1.73 1.92 1.80 34 9.50

Table 21.5:
Outlays and Allocations during XI Plan (Rs in crores)
Description Total Allocation Allocation in Allocation Total Allocation in
Outlay for in 2007-08 2008-09 in 2009-10 Allocation in percentage
XI Plan 2007-10 of total XI
Plan outlay

State Plan 1,82,050

State Sector 47,015
Schemes of Central
Plan
Sub-total States 2,29,065 38,456 47,195 46,429 1,32,080 58
Central Sector 3,246 550 600 600 1,750 54
TOTAL 2,32,311 39,006 47,795 47,029 1,33,830 58

projects have not been approved by the cent grant assistance is being provided since
Planning Commission and are not eligible for December 2006. In general, a new AIBP project
central assistance. is allowed in a state only when the ongoing
project has been completed. However, for
21.17. The overall allocation in the first three drought-prone/tribal areas (including KBK
years of the Eleventh Plan has been about 58 districts of Orissa), projects under PM’s
per cent of the originally proposed outlay (Table package for agrarian distress districts of AP,
21.5). Karnataka, Kerala and Maharashtra and States
with irrigation development below national
Accelerated Irrigation Benefit Programme average, this criterion has been relaxed. The
Central Loan Assistance (CLA)/grant released
21.18. Irrigation is a State subject but the and the irrigation potential created since
Centre supports the States’ effort through the inception of AIBP are given in Table 21.6.
Accelerated Irrigation Benefit Programme
(AIBP). AIBP was launched in 1996-97 for 21.19. Overall 278 major/medium/ERM
accelerating the implementation of large major irrigation projects and 10,339 minor irrigation
and multi-purpose irrigation projects which were projects have received CLA/Grant under AIBP
beyond the resource capability of the States, since 1996-97. Of the 278 projects, 126 are
and to complete ongoing major and medium major, 118 medium and 34 ERM projects.
irrigation projects which were in an advanced Central assistance under AIBP has grown
stage of completion. Originally the AIBP dramatically from a mere Rs.500 crores in
assistance was in the form of a loan to States. 1996-97 to Rs. 7,598 crores in 2008-09. During
In 2004-05 a grant component was introduced 2002-08, AIBP funded 42 per cent of all major
and from 2005-06 grants were provided only and medium irrigation projects in India.
under AIBP. The standard norm is grant
assistance of 25 per cent of the project cost but
for drought/flood-prone and tribal areas 90 per
 Water Resources 447

21.22. The Comptroller and Auditor General

Review of AIBP Performance conducted a Performance Appraisal of the AIBP
for the period 1996-2003 based on a test check
21.20. Of the targeted irrigation potential of of 99 (out of the then 172) projects in 19 States
119 lakh hectares under AIBP-assisted major covering around 59 per cent of the expenditure
and medium projects, the irrigation potential under AIBP. The CAG’s findings are sobering.
created upto March, 2009 was just 55 lakh As of March 2003, no potential was created in
hectares, which is about 46 per cent of target. 57 projects in 16 States, even after 1-7 years of
What is truly incredible is that during the years their inclusion in the programme. In 67 per cent
in which the AIBP has been implemented, net of the projects, the potential created was less
irrigated area through canals has actually than 50 per cent of the envisaged irrigation
undergone an absolute decline, rather than potential.
achieving an accelerated growth. From an
average contribution to NIA of around 17.5 21.23. The utilisation of irrigation potential was
million ha in the mid-1990s, area irrigated by also unsatisfactory. In 71 per cent of the
canals has come down to less than 15 million projects, utilisation was less than 50 per cent of
ha in the first decade of the 21st century. potential created. The gap between potential
created and potential utilised has been
Table 21.6: increasing over time. One reason for this is that
CLA/Grant and Irrigation Potential Created irrigation potential is defined on the basis of a
through AIBP, 1996-2009 certain volume of water expected in the
Year Amount of Irrigation reservoir which is divided by a presumed depth
CLA/ Grant potential of irrigation required for a presumed cropping
released (Rs. created (in ‘000 pattern. However, the actual values of these
crore) ha) variables rarely approach their presumed
1996-97 500 72 values. Studies by four Indian Institutes of
1997-98 952 200 Management (Ahmedabad, Bangalore, Kolkata
1998-99 1119 257 and Lucknow) of 34 states and Union
1999-00 1450 220 Territories completed in 2009 show that the
2000-01 1856 531 IPC-IPU gap also reflects implementation
2001-02 2602 443 issues such as faulty project designs, poor
2002-03 3062 272 lining and desilting and shoddy maintenance of
2003-04 3129 357 distribution channels.
2004-05 2867 409
21.24. Institutional weaknesses were also
2005-06 1900 703
significant. There is lack of coordination
2006-07 2302 938
between concerned department officials
2007-08 5446 544
(resulting in delays in implementation and
2008-09 7598 538 implementation without proper technical
2009-10 6946 1050 assessment) as also inadequate technical and
Total 39,457 6,535 managerial capacity of irrigation department
Source: MoSPI (2009): Annual Report on staff. The absence or ineffectiveness of Water
Performance of AIBP, Ministry of Statistics and Users Associations (WUAs), is also mentioned
Programme Implementation, GoI. as a significant contributor to the IPC-IPU gap.
The need to increase involvement of WUAs and
21.21. Of the major and medium projects PRIs in all stages of planning, design,
sanctioned under AIBP between October 1996 construction and maintenance is widely
and March 2008, only 40 per cent projects were accepted. This must include systematic training
reported as completed. For minor irrigation of their members in organisational
projects the figure was 3,253 out of 6,855 (47 development, leadership, maintenance of
per cent). financial and operational records, basic
technical components of the canal system and
methods of monitoring technical work.
448 Mid Term Appraisal of the Eleventh Five Year Plan

21.25. An important weakness in AIBP is that carrying out a study on AIBP for the Planning
although originally visualised as a “last mile” Commission which is likely to be completed by
initiative to help complete projects in their final June 2010.
stages, which were being held up due to
shortage of funds, in practice AIBP projects Financial Viability of Irrigation Systems
have not been selected along these lines. The
use of nebulous terms such as “substantial 21.29. A major problem affecting irrigation
progress”, “advanced stage”, “little resources”, systems in the states is the severe erosion of
“beyond the resource capability of a State” etc. the financial status of these systems owing to
in the original guidelines gave wide leeway to very low water charges. Not only does this
include all kinds of projects under the encourage inefficient water use and a tendency
programme. As a result, projects where no or for head-end canal users to shift to water
very low investments had been made, or where intensive crops, it also creates an environment
hardly any irrigation potential had been pre- in which irrigation charges do not cover even
created were also selected. Thus, 74 per cent operating costs leading to progressive neglect
of AIBP projects in the period 1996-2003 had of maintenance which further reduces
an investment level of less than 75 per cent efficiency.
prior to their inclusion under AIBP and 80 per
cent of the projects had created less than 75 21.30. In 1977-78, irrigation revenues from
per cent of their irrigation potential prior to their water rates were around Rs. 100 crores which
inclusion. Such projects should not have been covered only 75 per cent of O&M costs. If costs
part of AIBP in the first place. on account of interest on accumulated
investments up to that year (at the average
21.26. AIBP projects have typically tended to interest rate on the outstanding debt of state
suffer from time and cost over-runs. The pattern governments as a whole) and depreciation (at 1
of taking up new projects without completing per cent of the cumulated investment) were
on-going ones has characterised the included, revenues covered only 16 per cent of
programme throughout. Non-completion of 32 total costs. The losses amounted to Rs. 420
projects within the stipulated period in the crores. By 1994-95, total costs (inclusive of
States of Andhra Pradesh, Chhattisgarh, depreciation and interest) had increased
Jharkhand, Karnataka, Kerala, Punjab and fourteen fold but revenue realisations increased
West Bengal, resulted in substantial cost less than four and a half times. Revenues
overrun of Rs.4,775 crore and time overrun of covered barely 15 per cent of working expenses
24 to 84 months, even after the projects were and only 5 per cent of total costs and losses
brought under AIBP. had grown dramatically to around Rs.7,000
crores.
21.27. The AIBP guidelines envisaged a
detailed monitoring mechanism to be instituted 21.31. The pricing of irrigation water is
at the Central, State and Project Level. The obviously a critical issue. Vaidyanathan (2006)8
CAG has pointed to weaknesses in the has argued, “as far as the farmer is concerned,
functioning of monitoring bodies at the Central, access to irrigation leads to a huge increase in
State and Project levels. The National Remote the productivity of his land and, therefore, in his
Sensing Centre of the Department of Space income. . . Water should be treated like any
has assisted in monitoring progress of 53 AIBP other input and priced on the basis of the cost
projects on the advice of the Planning of supply, leaving it to the farmer to decide
Commission. which combination of inputs (including quantum
of irrigation) would be to his best advantage.”
21.28. The record on evaluation is also Rate increases will also incentivise a more
unsatisfactory. There has hardly been any careful use of water and lead to choice of
evaluation of the programme other than the one
by the CAG in 2004 and one that CAG is 8
expected to complete shortly.The Indian Vaidyanathan, A. (2006): India’s Water Resources:
Contemporary Issues on Irrigation, OUP
Institute of Management, Lucknow is currently
 Water Resources 449

cropping patterns more in tune with both area can be shown. Once the system gets
location-specific agro-ecology and projected commissioned, the gap tends to expand
assumptions. Of course, since we are so far because of (a) acts of commission which
below where we need to be, the hikes would include water thefts, vandalism, violation of
have to be brought about in a manner that also water distribution norms, unauthorised diversion
addresses the genuine concerns of the farmers. or lifting of water from canals by head-reach
The case for pricing irrigation water is farmers and (b) acts of omission which include
weakened by the uncertain quality of irrigation farmers’ own failure to cooperate in
service (in terms of quantum, reliability and maintenance and repair, to pay irrigation
timeliness of supply) but that to some extent is charges, and so forth.
also a consequence of financial weaknesses
resulting from low pricing. The challenge, 21.34. Gap II generally arises because of inept
therefore, is to define an agenda of reforms that system management as well as physical
can improve the performance of canal irrigation deterioration of the system and reengineering
in India. by farmers. Also important are operating rules
for reservoir and main system management. In
The Need for Systemic Irrigation Reform multi-purpose projects, often the hydro-electric
plants determine the protocol and schedule for
21.32. From the viewpoint of irrigators, the releasing water from reservoirs without much
performance of an irrigation system is judged regard for the needs of irrigation.
by the level of water control it offers. Water
control can be defined as the capacity to apply 21.35. Gap III arises from the changing pattern
the proper quantity and quality of water at the of irrigation demand, mostly due to
optimum time to the crop root zone to meet diversification of farming towards high value
crop consumptive needs and soil leaching crop. With growing urbanisation and rising
requirements. Irrigation reform should aim at incomes, farmers are shifting from rice/wheat
closing what Tushaar Shah9 has termed the rotation to high value fruit and vegetable crops
three gaps which currently bedevil the system: that impose a completely different irrigation
schedule.
• Gap I: Gap between the area (and farmers)
designed to be served by gravity irrigation 21.36. A drastic reform of the irrigation
and the area (and farmers) actually served bureaucracy at the cutting-edge level of
after the system begins operation; implementation (the irrigation commands), is
critical for improving the performance of large
• Gap II: Gap between the level of ‘water irrigation projects. This entails deployment of a
control’ promised at planning stage and the very different profile of human resources
level of ‘water control’ actually delivered (moving away from exclusively engineer-centric
after the beginning of the operation; departments towards more multi-disciplinary
• Gap III: Gap between the level of ‘water structures) who would be able to face up to the
control’ demanded by farmers at the real challenges of mobilising farmers to actively
present point in time and the level of ‘water participate in irrigation management. It also
control’ actually offered by the system. requires innovative pedagogies of training
farmers in understanding the technical and
21.33. Gap I arises because irrigation systems managerial aspects of running these systems.
are over-designed to make them appear more Careful attention would have to be paid to the
viable and beneficial than they can actually design principles of successful management of
become. Irrigation depth assumed is lower CPRs over long periods of time identified by
than realistic so that a larger design command scholars led by Elinor Ostrom, the 2009 Nobel
Laureate in Economics.
9
Tushaar Shah (2009): Past, Present and Future of
Canal Irrigation in India, Paper Commissioned for 21.37. Participatory Irrigation Management
the MTA of the Eleventh Plan by the Planning (PIM) which aims at involving the stakeholders
Commission
is a critical element of any systemic reforms
450 Mid Term Appraisal of the Eleventh Five Year Plan

and is an acknowledged element of policy. distribution across the command area.

Recognising the need for a sound legal However, these studies also reveal that PIM
framework for PIM, the MoWR brought out a works only under certain facilitating conditions,
model Act in 1998 to be adopted by state which explains its tardy progress so far.
legislatures for enacting new Irrigation Acts or Vermillion (2004)10 has studied successful
amending the existing Acts for facilitating PIM. WUAs across the world and identified ten
Fifteen state governments (Andhra Pradesh, elements of PIM reforms that are generally
Assam, Bihar, Chattisgarh, Goa, Gujarat, needed and effective if designed and
Karnataka, Kerala, Madhya Pradesh, implemented in ways appropriate for local
Maharashtra, Orissa, Rajasthan, Sikkim, Tamil circumstances:
Nadu and Uttar Pradesh) have enacted a PIM
Act or made amendments in existing Irrigation 1. Clear, high-level support for PIM
Acts. Other state governments (Punjab,
2. Clear and strong legal status of WUAs and
Haryana, Manipur, Arunachal Pradesh and
basis for PIM
Himachal Pradesh) are in the process of taking
action. 3. Clear water use rights for WUAs and farmers

Box 21.1:
Success Story of PIM
One of the most successful examples of PIM in India is being implemented jointly by the Government of
Gujarat and Development Support Centre, Ahmedabad since 1994 on the right bank canal of the Dharoi
project on the Sabarmati river covering about 48,000 hectares. 175 WUAs and two Branch Level Federations
have been formed. Each WUA services a command area of about 300 to 500 hectares and has about 200 to
350 members. The Branch Level Federations service an area of 7,000-14,000 hectares.
The WUAs in Dharoi are registered as co-operatives. Each farmer within the command area has purchased a
share to become a member. There are about 35,000 members. They have carried out canal rehabilitation
works worth Rs.55 million wherein the members have contributed about Rs.10 million. They have appointed
their own President, Secretary and Canal Operators who ensure that the WUA financial and administrative
systems as well as the physical system are in shape before the irrigation season. These operators and the
secretary are paid by the WUA itself without any grants from the Government. They have installed gates at the
outlet level with their own funds and devised a system of water distribution wherein no member is given water
without a pass. They prepare an annual budget and decide the water charges which are often over and above
the Government rate. The office bearers collect the water charges in advance from the farmers and pay them
to the Irrigation Department.
The WUAs charge penalties to members in case they break the rules finalised at the Annual General Body
meeting and this penalty is double for office bearers. Some of them have also carried out pilots on volumetric
supply of water and water use efficiency. They have built up reserve funds that serve as a contingency during
scanty rainfall years.

21.38. Despite these developments, actual 4. Full decision making authority transferred to
progress in implementing PIM has been limited. WUAs
By the end of 2007, only about 20 per cent of
5. WUAs federate to the main system level
the total command of existing irrigation projects
(13.5 million hectares) had been covered 6. Irrigation agency reorients itself to building
through about 56,934 Water Users Associations capacity and providing support services to
(WUAs). WUAs and regulating the sector
7. Shift to farmer financing of O&M and cost
21.39. Studies on PIM reveal that it has
sharing for incidental repairs and
several potential advantages related to a sense
of ownership amongst the users which 10
Vermillion, D.L. (2004): Creating an enabling environment
motivates them to make judicious use of water. for productive and sustainable WUAs, Keynote paper
It is estimated that PIM provides about 20 per presented at 7th International Seminar on PIM (Tirana,
cent saving in water use with greater equity in Albania)
 Water Resources 451

improvements, rehabilitation and independent regulator would derive from a

modernisation holistic view of social, environmental and
economic aspects, reflecting the concerns of all
8. Stakeholder consultations and public
stakeholders in the region. The orders passed
awareness campaigns
by the MWRRA in the Nira Deoghar Irrigation
9. Institutional reform precedes rehabilitation Project11 and Maharashtra Airport Development
Company cases in November 2008 where it
10. Parallel program to develop agriculture,
strongly protected the interests of stakeholder
agri-business and marketing.
farmers are landmark judgments, setting
standards for future adjudication. Of course, the
21.40. The case for stakeholder participation in
work of the MWRRA needs to become even
irrigation management is unexceptionable.
more broad-based with greater stakeholder
However, the most significant weakness of
participation and strengthening of the Authority
these WUA experiments is that they do not
with a wider range of relevant expertise. One of
afford a direct dovetailing with the
the most attractive features of the MWRRA Act
constitutionally mandated Panchayati Raj
is its potential to severe the link between control
Institutions (PRIs). This not only weakens their
over land and control over water because the
legal status, it also compromises their
nexus between land rights and access to water
democratic legitimacy and inclusive character.
is socially inequitable and environmentally
WUAs only include landowners and land
unsustainable. But the notion that water
occupiers as members. Only exceptionally do
entitlements can be privately traded is difficult
they include reservation for women or SC/STs.
to reconcile with the public trust doctrine
A possible way forward is provided by the MP
enunciated by the Supreme Court. This
and Chhattisgarh legislations which extend
requires additional safeguards to be built into
membership to all those using ‘water for
Acts like the MWRRA (Cullet, 2009)12.
agriculture, domestic, power, non-domestic,
commercial, industrial or any other purpose
21.42. Andhra Pradesh provides an
from a Government source of irrigation’. The
WUAs must function as committees within the alternative approach that emphasises
PRI constitutional set up. efficiency and community action and puts
public need first instead of creating rights of
21.41. In recent years, India has seen a new individuals. Since 2008-09 Andhra Pradesh is
architecture of regulatory reforms in the water using a mobile-based information system for
sector. The first entirely new regulatory entity monitoring reservoir storage and canal flows.
was the Andhra Pradesh Water Resources The mobile-based system needs extremely low
Development Corporation created under an Act investment and recurring costs. The inflow,
by the same name in 1997. But the most outflow, levels and capacity of the reservoirs
sweeping institutional reforms have been and canal flow at strategic locations can be
introduced in Maharashtra through the monitored on a regular basis through use of this
Maharashtra Water Resources Regulatory technology.
Authority (MWRRA) Act 2005. Arunachal
Pradesh and Uttar Pradesh have adopted 21.43. A web-based Work Tracking System is
substantially the same legislation. There is a also being used effectively by Andhra Pradesh
direct link between the MWRRA Act and the since 2008-09 to monitor progress of O&M
Maharashtra Management of Irrigation Systems works in irrigation projects and evaluate their
by Farmers Act 2005 (MMISFA), which quality, assist the administration in decision
empowers WUAs to participate in construction making for timely implementation and
and operation of command area systems. The monitoring financial plans, requirements and
MWRRA is obliged to issue entitlements to the expenditure for works.
WUAs as per criteria given in the Act. The aim
is to take an independent view on water that 11
Prayas (2009): Independent Water Regulatory Authorities in
reflects the needs and aspirations of India: Analysis and Interventions, Pune
stakeholder farmers in the river basin in an 12
Cullet, P. (2009): Water Law, Poverty and Development:
equitable manner. The strength of such an Water Sector Reforms in India, OUP, New Delhi
452 Mid Term Appraisal of the Eleventh Five Year Plan

The Way Forward for AIBP • It should not happen that the dam is
constructed but the distribution system is
21.44. The steps that would make AIBP an not making headway making the investment
effective programme, actually delivering water idle and at times infructuous. The
to the farmers who need it and providing a real construction programme of major projects
boost to canal irrigation in India, leading to a should be phased in such a way that a
rise in agricultural productivity, may be specified length of the main canal, minors,
summarised as follows: and distributaries are taken up and
completed together, so as to yield phase-
Project Approval, Design and wise benefits.
Implementation
Command Area Development (CAD) and
• No new projects should be taken up until Improved Water Use Efficiency
resources are found to complete the
ongoing schemes • Command area development should occur
pari passu with the creation of
• MoWR should ensure that BC ratios are
infrastructure. MGNREGA funds could be
properly and accurately calculated for each
used for much of the CAD work. This is
project (based on valid data and
already being done in States like Madhya
assumptions relating to costs, revenues,
Pradesh
cropping patterns etc.)
• CAD must carefully integrate traditional
• Funds should be released by the GoI in
water harvesting systems already existing
time (not in the last quarter/March) to the
in the command. The coming of canal
State Governments. Further, State
irrigation must not lead to their decline;
Governments should be directed to ensure
rather their deep complementarities must
release of GoI funds (along with the State
be harnessed. To begin with at least 10 per
share) within the stipulated period of 15
cent of the AIBP command must
days. The MoWR should have systems for
mandatorily be provided with water saving
monitoring such releases on a project-wise
micro-irrigation. Subsidy for micro-irrigation
basis.
can be drawn from ongoing programme of
• Creation of irrigation potential should be Ministry of Agriculture.
recognised only where (a) there are no
• An agricultural improvement programme
gaps in the main branch canals, and water
focused on improving water efficiency and
is capable of flowing right through the
agricultural productivity must be dovetailed
sections recognised for creation of IP; and
into the AIBP and undertaken not as an
(b) not just the main/ branch canals, but
afterthought but as an integral part of the
also all associated minors and distributaries
AIBP itself.
have been completed.
Stakeholder Participation, Deployment of
• Except for preliminary expenditure, no
Multi-disciplinary Professionals and
major investment on a project should be
Regulation
made unless the issues of land acquisition,
relief and rehabilitation, forest clearance are • For command area development to be
sorted out as a whole for the projects. GoI effective the participation of farmers as
funds should be released only after the stakeholders in the process must occur
State Government certifies that the major right from planning and implementation to
portion of the land required for the project monitoring and maintenance. For this,
(not just for the dam/ head-works but also
for the canals) has already been acquired.
Future releases should be linked to
progress in land acquisition
 Water Resources 453

Figure 21.1:
Typology of Hydrogeological Settings in India with State and District boundaries

Source: Kulkarni, H., P.S. Vijay Shankar and S. Krishnan (2009): Synopsis of Groundwater Resources in India: Status,
th
Challenges and a New Framework for Responses, Paper Commissioned for the MTA of the 11 Plan by the Planning
Commission
454 Mid Term Appraisal of the Eleventh Five Year Plan

WUAs need to be set up within the AIBP must function effectively, independent
framework of the PRIs and provided with evaluations of AIBP projects must be
autonomy, incentives and powers. This undertaken by credible academic
requires investment of time and money in a institutions and participatory social audits
process of institution building of WUAs and would help improve farmer stake in the
federations of WUAs. capacity building programme
must be undertaken by irrigation
• All of this must occur within a new
department officials in partnership with PRIs
institutional, legal and regulatory framework
and civil society organisations with
that draws lessons from both the strengths
experience in PIM.
and weaknesses of especially the
• The entire profile of irrigation department Maharashtra Water Resources Regulatory
officials also needs to be broadened to Authority
include not only engineers (who will provide
technical inputs) but also social mobilisers Groundwater Development
(including social workers and
anthropologists) who would understand 21.45. As pointed out the overwhelming
social dynamics of farmer stakeholders and dependence on groundwater, especially that
their motivational structure extracted through tubewells is leading to a
steady depletion in water tables. The main
• Monitoring mechanisms mandated under
reason for this is that groundwater, though a
Table 21.7:
Typology of Hydrogeological Settings in India – States and Areas
Hydrogeological Area Percentage of
No 2 States
Setting (km ) total area
1 Alluvial 940,719 Arunachal Pradesh, Assam, Bihar, Delhi, Diu & Daman, 29%
(Unconsolidated) Gujarat, Haryana, Himachal Pradesh, Jharkhand, Kerala,
Systems Madhya Pradesh, Maharashtra, Orissa, Pondicherry,
Punjab, Rajasthan, Sikkim, Tamil Nadu, Uttar Pradesh,
Uttarakhand, West Bengal
2 Sedimentary 78,729 Andhra Pradesh, Chhattisgarh, Gujarat, Madhya Pradesh, 2%
(Soft Rock) Maharashtra, Orissa
Systems
3 Mountain 557,790 Arunachal Pradesh, Assam, Haryana, Himachal Pradesh, 17%
Systems Jammu & Kashmir, Manipur, Meghalaya, Mizoram,
Rajasthan, Sikkim, Uttar Pradesh, Uttarakhand, West
Bengal
4 Sedimentary 194,797 Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, 6%
(Hard Rock) Karnataka, Madhya Pradesh, Orissa, Rajasthan, Uttar
Systems Pradesh
5 Volcanic 525,034 Andhra Pradesh, Bihar, Dadra & Nagar Haveli, Diu & 16%
Systems Daman, Gujarat, Jharkhand, Karnataka, Madhya Pradesh,
Maharashtra, Rajasthan, Uttar Pradesh, West Bengal
6 Crystalline 1,030,018 Andhra Pradesh, Bihar, Chhattisgarh, Goa, Gujarat, 32%
(Basement) Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh,
Systems Maharashtra, Orissa, Pondicherry, Rajasthan, Tamil Nadu,
Uttar Pradesh, West Bengal

Table 21.8:
Groundwater Availability, Net Draft and Level of Development, 2004
States Net Annual Groundwater Net Draft Balance Ground water Level of GW
Availability Resource for future use Development
BCM/yr BCM/yr BCM/yr per cent
Punjab 21.4 31.2 (-) 9.9 145
Rajasthan 10.4 13.0 (-) 3.9 125
Haryana 8.6 9.5 (-) 1.1 109
Tamil Nadu 20.8 17.7 3.1 85
Gujarat 15.0 11.5 3.1 76
Uttar Pradesh 70.2 48.8 19.5 70
INDIA 398.7 230.4 161.9 58
Source: CGWB (2006)
 Water Resources 455

finite exhaustible resource, is not being This poses a severe limit to expansion of
managed as a common pool resource Under tubewell technology in areas underlain by these
the present legal and regulatory structure it can strata. Similarly in the mountain systems
be extracted without limit by anyone sinking a (setting 3 in Table 21.7), which comprise 17 per
tubewell on their land. The fact that electricity cent of India’s land area, effects of groundwater
for agriculture is grossly underpriced increases overuse do not take very long to appear.
the incentive to do so, but it is important to
remember that even if electricity were “properly 21.48. As the processes of groundwater
priced” the incentive to overuse water would be accumulation and movement are vastly different
strong because negative externalities of a in different geological types, the implications of
falling water table are not borne by the any level of groundwater development (GD) will
individual farmer but by all farmers. This is a vary significantly across types of geological
classic problem of the need for collective action settings. A much lower level of GD (defined as
to regulate the use of a common pool resource. draft on groundwater as a percentage of net
annual groundwater availability) in settings 3-6
21.46. The nature of the groundwater problem in Table 21.7, which account for 71 per cent of
varies considerably across the country because India’s land area, could be as “unsafe” as a
of hydrogeological variations. The Advanced comparatively higher level in settings 1 and 2.
Centre for Water Resources Development and Thus, we need to exercise far greater caution in
Management (ACWADAM), Pune has settings 3-6 as soon as the level of GD crosses
developed a typology of six broad 50 per cent.
hydrogeological settings presented in Figure
21.1 and Table 21.7. About 54 percent of India 21.49. However, even in the alluvial heartlands
(comprising mainly the continental shield) is of the Green Revolution (i.e., setting 1 in Table
underlain by formations usually referred to as 21.7) for which tubewell technology is relatively
"hard rocks" (settings 4-6 in Table 21.7). ‘Hard more appropriate, we are moving into crisis
rock’ is a generic term applied to igneous and zone. Three states, Punjab, Rajasthan and
metamorphic rocks with aquifers of low primary Haryana, have reached a stage where even
intergranular porosity (e.g., granites, basalts, their current level of groundwater extraction is
gneisses and schists). Groundwater resource in exceeding recharge and is therefore
hard rock is characterised by limited unsustainable. Three other states, Tamil Nadu,
productivity of individual wells, unpredictable Gujarat and UP, seem to be fast approaching
variations in productivity of wells over relatively that stage (Table 21.8).
short distances and poor water quality in some
areas. 21.50. The problem has been recognised
earlier, and the Government of India in 2005
21.47. Initially, the expansion of tubewells prepared a Model Groundwater Control Bill for
following the Green Revolution was restricted to adoption by the States. However, this model
India’s 30 per cent alluvial areas (setting 1), legislation does not address the central problem
which are generally characterised by relatively of how to limit exploitation to appropriate levels.
more pervious geological strata. From the late It only proposes restriction on sinking new
1980s, tubewell drilling was extended to hard tubewells in areas with falling water tables while
rock regions where the groundwater flow allowing existing tubewells to continue. This
regimes are extremely complex. Deeper seated only confers a monopoly on existing tubewell
aquifers often have good initial yields, but a owners who could actually extract more water
tubewell drilled here may be tapping than they need for their own use and sell to
groundwater accumulated over hundreds (at neighbouring farmers. Surface and groundwater
times even thousands) of years. Once are still treated separately, completely ignoring
groundwater has been extracted from a deeper the integrity of the hydrologic cycle. There is no
aquifer, its replenishment depends upon the reference to environmental concerns or to
inflow from the shallow system or from the Panchayati Raj Institutions. The link between
surface several hundred metres above it and land and groundwater is not broken. The model
the rate of groundwater recharge is much lower. bill does not clearly prioritise uses of
456 Mid Term Appraisal of the Eleventh Five Year Plan

groundwater, nor does it differentiate between sustainable management of groundwater is

commercial and non-commercial uses. feasible only if users understand its occurrence,
cycle and limited availability. The project
21.51. Karnataka, Maharashtra, Madhya employs participatory hydrological monitoring,
Pradesh, Goa, Himachal Pradesh, Kerala, by engaging farmers in data collection and
Tamil Nadu, and West Bengal have adopted analysis, and building their understanding of the
groundwater legislations although they broadly dynamics and status of groundwater in local
accept the outmoded framework of the model aquifers. This is complemented with crop water
bill. But within this limitation, there are some budgeting, whereby the quantity of water
innovative aspects of some state legislation, required for dry crops is assessed at the aquifer
which deserve attention and need to be more level and compared with the amount of
widely adopted. Andhra Pradesh links surface groundwater actually available. Crop water
and ground water in a broader framework of budgeting is conducted in aquifer-wide
environmental conservation. West Bengal is the meetings at which the budget is produced with
only state that gives its Groundwater Authority a thousands of farmers in attendance. The total
mandate to conserve groundwater and facilitate outreach of the programme is estimated at 1
people’s participation and involvement in the million farmers.
planning and use of groundwater. Himachal
Pradesh legislation gives first priority to drinking Interlinking of Rivers
water.
21.55. The current proposal to link Himalayan
21.52. The proposed model groundwater with the Peninsular rivers for inter-basin transfer
legislation is simply not adequate to deal with of water is estimated to cost around Rs.
the steadily worsening situation we face. There 5,60,000 crores. Land submergence and R&R
is need for a more comprehensive legislation packages would be additional to this cost.
which takes account of the need to prioritise There are no firm estimates available for
different uses and effectively introduces limits running costs of the scheme, such as the cost
on total use. Such legislation would have to of power required to lift water.
take into account the need to involve all
stakeholders, including those not owing land 21.56. Several technical problems have to be
who have a legitimate claim on groundwater for addressed in order to inter-link and become
domestic use. economical. In a country like India which gets
seasonal rainfall from monsoons, the periods
21.53. Legislation needs to be backed up by when rivers have “surplus” water are generally
action on the ground involving partnerships synchronous across the subcontinent. Another
between stakeholders at the village-level, on key issue is how the reasonable needs of the
the one hand, and hydrogeologists along with basin states, which will grow over time, will be
social mobilisers, on the other, who would taken into account while planning inter-basin
guide collective sharing and sequential use of transfers. Further, given the topography of India
groundwater based on a careful understanding and the way links are envisaged, it might totally
of the storage and transmission characteristics bypass the core dryland areas of Central and
of different aquifers in the diverse Western India, which are located on elevations
hydrogeological settings outlined in this of 300+ metres above MSL. It is also feared
chapter. that linking rivers could affect the natural supply
of nutrients through curtailing flooding of the
21.54. Promising work on a reasonable scale downstream areas. Along the east coast of
has started in this direction in Andhra Pradesh. India, all major peninsular rivers have extensive
The Andhra Pradesh Farmer Managed deltas. Damming the rivers for linking will cut
Groundwater Systems (APFAMGS) project is down the sediment supply and cause coastal
funded by the Food and Agriculture and delta erosion, destroying the fragile coastal
Organisation and implemented by NGOs in eco-systems. It is also pointed out that the
seven drought-prone districts of Andhra scheme could affect the monsoon system
Pradesh. The core concept of APFAMGS is that significantly. The presence of a low salinity
 Water Resources 457

layer of water with low density is a reason for glaciers, loss of year-round inflows and the
maintenance of high sea-surface temperatures construction of hydropower projects. Reviving
(greater than 28 degrees C) in the Bay of subsurface flows to rainfed rivers, minimising
Bengal, creating low pressure areas and short range and long range threats to glaciers,
intensification of monsoon activity. Rainfall over ensuring environmental flows downstream of
much of the sub-continent is controlled by this dams and legislating protected river zones to
layer of low saline water. A disruption in this preserve pristine rivers and their wilderness are
layer could have serious long-term critical measures that need prioritisation.
consequences for climate and rainfall in the
subcontinent, endangering the livelihoods of a 21.60. Drinking water supply management in
vast population. the mountain areas requires integrated
management of forests and water. Ultimately
21.57. It is, therefore, necessary to move this can only be done at the community level. In
forward on this proposal with due diligence. the Himalayan region a culture of conservation
Work on a few specific links is currently of natural resources still exists. Hence local
underway. DPR preparation has been communities must be given greater control and
completed for only one inter-basin water autonomy over their resources. Rural water
transfer link. supply agencies must have foresters and social
workers as part of their professional staffs in
Himalayan Water Resources addition to engineers. Enhanced funds for
catchment treatment works and resource
21.58. The Himalayan states are regions of conservation should be earmarked in
high precipitation, rain and snow. But there are departmental budgets. Given the high rainfall in
dry pockets in the rain shadows, deforested this region, the goal of water resources
slopes, along river beds rendered dry by dams, development must be to provide a higher
mountain crests and the cold deserts. quantum of water for domestic use, as done in
Traditional mountain communities have Himachal Pradesh. Resource conservation
adapted to the precipitation patterns, harvesting must precede resource development a lessons
it for use round the year. The entire Himalayan that emerged from the Swajal scheme.
region has a strong tradition of rainwater
harvesting. Even today it contributes about 35- 21.61. Mountain towns and cities have grown
40 per cent of the annual rural household rapidly and haphazardly in the last decade. This
demand for water (People’s Science Institute, has led to the destruction of local natural water
2009)13. Earlier traditions of maintaining sacred sources and their catchments, creating severe
groves, found in almost all the Himalayan water shortages. In urban areas, roof rainwater
states, helped sustain perennial flows in rainfed harvesting must be made mandatory for all new
rivers. This tradition needs to be strengthened. buildings, existing government buildings,
Springs and streams in many mountain areas institutions and hotels. Most urban settlements
are drying up due to extensive deforestation in on mountain slopes and river banks release
the past. The concept of spring sanctuaries is their untreated wastewaters into nearby
very relevant to the Himalayan region. Sikkim streams and rivers. Commercial establishments
and Himachal Pradesh have developed state- should be encouraged through tariffs and
level programmes for this. MGNREGA funds incentives to recycle the treated wastewater in
could be used to expand the coverage of these their toilet systems and irrigating lawns.
initiatives in the Himalayan region. Planned development support for setting up
wastewater treatment plants in larger towns and
21.59. One of the biggest crises in the cities on river banks must be taken up on
Himalayan states, particularly the less-forested priority. In smaller towns and urban settlements
and lower rainfall western states, is the drying on mountain slopes, greater emphasis must be
up of important rivers. The natural flows of given to decentralised wastewater treatment
Himalayan rivers are threatened by shrinking systems.

13
Paper commissioned by the Planning Commission
458 Mid Term Appraisal of the Eleventh Five Year Plan

21.62. Irrigation has the potential to double earthquake in 2008 raises doubts about the
agricultural productivity in mountain states. Its wisdom of extensive dam-building in a
utilisation will be enhanced if it is part of a larger seismically active region.
package of measures to make agriculture more
remunerative. This requires extension of credit, Floods and Flood Management
identification of niche agricultural crops and
products and better connectivity to markets. 21.65. Floods have become an annual feature
The principles of the System of Rice in some parts of the country. Of late, the
Intensification (SRI) have been successfully intensity and severity of floods has been
applied to other foodgrains with a fair degree of increasing. The Eleventh Plan emphasised
success in the mountain regions. Hence this prevention, protection and managing of floods.
concept, which reduces water consumption, A separate State sector programme -- Flood
must be vigorously promoted in these regions. Management Programme -- has been initiated
SRI has already been successfully introduced with an estimated cost of Rs 8,000 crore. Rs
in Tripura, Uttarakhand and Himachal Pradesh. 2,715 crores have been allocated for the
In Tripura and Uttarakhand, it is a part of the programme in the Eleventh Plan. About 308
government’s annual agricultural plan and schemes in various states have been included
Himachal is likely to follow suit in 2010-11. under the programme and Centre has released
an amount of Rs 670 crore till June 2009.
21.63. In recent years, the Himalayan region
has emerged as a focus for India’s hydro-power 21.66. While structural measures are funded
development as other options appear to be through the above programme, non-structural
narrowing down. In developing these plans measures like flood forecasting and warning,
certain factors need to be borne in mind. The flood-proofing and flood plain zoning are
Himalayas are comparatively young mountains required to be promoted. Protection measures
with high rates of erosion. Their upper must be based on the recurrence interval of the
catchments have little vegetation to bind soil. flood. There is a need for systematic delineation
Deforestation has aggravated the problem. of flood prone area based on hydrologically
Rivers descending from the Himalayas tend, agreed methods. The issue of flooding of the
therefore, to have high sediment loads. A 1986 lower riparian states by sudden release of water
study found that 40 per cent of hydro-dams built from the dams of upper riparian States is
in Tibet in the 1940s had become unusable due emerging in some of the inter-state river basins.
to siltation of reservoirs (K. Pomeranz, 2009, We need to have a re-look at the reservoir
‘The Great Himalayan Watershed’). Studies by operational rules for all the major reservoirs in
engineering geologists with the Geological such basins for addressing this issue. Also real
Survey of India record many cases of power time flood forecasting and ensuring flood
turbines becoming dysfunctional following cushion during emergency would help
massive siltation in run-of-the-river schemes. moderate floods. This exercise needs to be
carried out by the States with the assistance of
21.64. Climate change is making predictability Central Water Commission.
of river flows extremely uncertain. This will rise
exponentially as more and more dams are built 21.67. Related to the flood problem is the
in the region. Diverting rivers will also create issue of waterlogging, which refers to the
large dry regions with adverse impact on local condition where the underground water table
livelihoods (fisheries and agriculture). Rapid rises close to the surface (depth to water table
rise of the Himalayas (from 500 to 8000 metres) being not more than 2 metres) and water
gives rise to an unmatched range of collects in topographical depressions due to
ecosystems, a biodiversity that is both insufficient drainage. This can occur due to
enormous and fragile. Recent research three different reasons: a) poor drainage
published in Science (R.Kerr and R.Stone, because of natural factors or due to
2009: A Human Trigger for the Great Quake of disturbances in surface hydrology causing
Sichuan) on Zipingpu reservoir-induced obstructions to flow of water; b) inundation by
seismicity as a trigger for the massive Sichuan river water during high flood; and c) over-
 Water Resources 459

irrigation leading to rise in water table in the construction of railway lines, roads,
canal commands. Each of these problems embankments and irrigation canals. Part of the
differs in nature needing very specific waterlogged area could be used for
interventions for remedial action. The earliest construction of small multi-purpose farm ponds.
estimate of the waterlogged area in India was The mud of the pond is raised on the side as
given by the Irrigation Commission in 1972 embankments on which crops like banana,
(4.84 million hectares). More recent estimates papaya, mango, pigeon pea and cashew nut
by the Ministry of Agriculture (1990) put the can be grown. The pond water is used to
figure at 8.5 million hectares while that of the irrigate the non-waterlogged, upland area.
National Bureau of Soil Survey and Land Use Experiments have shown that in waterlogged
Planning (NBSS-LUP) comes up with a figure areas, cultivation of water chestnut (Trapa
as high as 11.6 million hectares (8.3 per cent of bispinosa) can be quite profitable. Research
the net sown area). and field level trials should proceed towards
identification of extra-tall varieties of paddy that
21.68. The land situation in a typical can grow fast and can tolerate waterlogging.
waterlogged area can be classified into three: National research system has released some
a) waterlogged lowland, called “chaur” in North promising new varieties with these
Bihar; b) midland, which are temporarily flooded characteristics.
but remain dry from December onwards; and c)
uplands, which are not flooded at all. Chaurs 21.70. Water logging is often aggravated by
are the saucer-shaped, topographically low- the mismanagement of rainwater in the upper
lying areas where rainwater collects and catchment. In situ rainwater conservation in the
accumulates due to inadequate drainage. The upper catchment and intensification of the use
surface area of a chaur can be very large, of groundwater through shallow tubewells are
covering portions of several villages. Traditional possible interventions to mitigate the problem.
management of chaurs included cropping Through integrated management of land, water
systems to suit this complex eco-system. and nutrients, agricultural productivity of these
Prominent among them was the sugarcane- uplands could be stabilised and enhanced,
paddy sequential system where a local variety which would, in turn, have a positive impact on
of sugarcane, was followed by local varieties of the waterlogged lowlands. Funds under
tall paddy called jager and darmi in alternate MGNREGA could be productively used for this
years. But cultivation of these varieties has purpose.
been given up over the years on account of
their low productivity and high risk. As a result, Rural Drinking Water
the current cropping systems are not adapted to
this eco-system. 21.71. The National Drinking Water Mission
was established in 1986. Within ten years, the
21.69. The most urgent task in a new package Mission claimed that only 63 problem villages
for waterlogged areas is to make a were left to be covered. But in 1999, we again
comprehensive drainage plan by linking up the set a new target of universal coverage of 15
chaurs with the nearest watercourse. The low lakh habitations by the end of the Tenth Plan.
land slopes in the flood plains pose a serious According to the Department of Drinking Water
problem here, requiring careful planning and Supply (DDWS), the number of “slipped-back
co-ordination across several villages and habitations” that had to be “re-covered” in the
panchayats. This is a major social Bharat Nirman period (2005-10) had grown to
mobilisational challenge. Part of the drainage 419,034. The Eleventh Plan reset the goal to
system construction would involve clearing the “provide clean drinking water for all by 2009
existing drainage channels and correcting their and ensure that there are no slip-backs by the
location. In many places existing drainage end of the Eleventh Plan”. But slip-backs
channels have either got obstructed due to continue to happen on an on-going basis. The
cultivation or encroachment or are wrongly National Rural Drinking Water Programme
constructed so that water does not drain out. (NRDWP), was provided with Rs.39,490 crores
Natural drainage gets disturbed due to in the Eleventh Plan. The states are to spend a
460 Mid Term Appraisal of the Eleventh Five Year Plan

total of Rs. 49,000 crores (Table 21.9). This is many states this responsibility is poorly defined
nearly three times what was provided for in the and not supported by transfer of adequate fund
Tenth Plan provision. However, as the 2009 and trained manpower to the PRIs. PRIs and
DDWS document Movement towards Ensuring Village Water and Sanitation Committees
People’s Drinking Water Security in Rural India (VWSCs) are not willing to take over completed
recognises, the objective of providing adequate schemes in which they were not involved at the
drinking water to the rural community is yet to planning and implementation stages.
be achieved “in spite of the collective effort of Inadequate water resource investigation,
the state and central governments and huge improper design, poor construction,
investments of about Rs.72,000 crores in the substandard materials and workmanship and
rural water supply scheme under both state and lack of preventive maintenance also lead to
central plans upto 2009” rapid deterioration of water supply schemes.

21.72. The DDWS document correctly argues 21.74. The DDWS has proposed transfer of
that groundwater sources identified as the basis management and financial responsibility and
for rural drinking water supply schemes have autonomy to VWSC formed under the Gram
proved to be unsustainable because of falling Panchayat so that they can develop village
water tables and the associated problem of water security plans taking into consideration
pollution. Since rural drinking water is present water availability, reliability, its different
overwhelmingly supplied by groundwater our uses and equity. The VWSC can also outsource
ability to tackle the drinking water problems development of its water supply scheme to an
cannot be delinked from our ability to evolve a agency of its own choice after consultation at
sustainable policy for groundwater for irrigation. the Gram Sabha. Communication and Capacity
It is also necessary to have coordinate with the Development Units (CCDUs) are to be
rural sanitation and primary healthcare established in all states/and Union Territories to
programmes since faecal contamination is a create awareness among rural people on all
major problem. aspects of rural water supply and for capacity
building of local communities, especially
Table 21.9: women.
Investments in Rural Drinking Water, 1951-
2012 21.75. The DDWS argues that level of service
Plan Period Investment made/ should be linked to the issue of demand,
proposed (Rs. crore) commonly expressed through user willingness-
Centre State to-pay. However, the issue of equity and the
Ist (1951-56) 0 3 basic minimum need concept should be kept in
IInd (1956-61) 0 30 mind while designing the schemes. Willingness
IIIrd (1961-66) 0 48 to pay under adverse conditions cannot be
IVth (1969-74) 34 208 interpreted as affordability to pay. But the cost
Vth (1974-79) 157 348 of water beyond basic minimum need is to be
VIth (1980-85) 895 1,530 borne by the consumer.
VIIth (1985-90) 1,906 2,471
VIIIth (1992-97) 4,140 5,084 21.76. WHO Guidelines for Drinking Water
Quality (2004) and Guidelines for Safe Use of
IXth (1997-2002) 8,455 10,773
Wastewater and Grey Water (2006) are to be
Xth (2002-07) 16,254 15,102
adopted and a Water Testing Laboratory is to
XIth(2007-12) 39,490 49,000
be established at each sub-division level.

21.77. There is also a commitment to move

21.73. The management of rural drinking water beyond habitation to household in the definition
schemes raises institutional issues of the of coverage. Thus, installation of a water supply
agencies which should be responsible for their system in a habitation should not automatically
maintenance and upkeep. Although confer on the habitation the status of a fully
responsibility for operation and maintenance of covered habitation unless every household in
water supply schemes lies with the PRIs, in
 Water Resources 461

the habitation has been fully covered with the surface on the side of the hill. The stream
potable water in sufficient quantity. originating from a dhara is channeled along the
hillside and directed to fields as well as used for
21.78. This constitutes a major breakthrough in drinking water purposes. At times, metal spouts
drinking water policy and strategy in India. But it are attached to these springs to get water to
needs further deepening in terms of data-base, flow out and fill small, tank-like structures
understanding, strategic content and direction, constructed below them. Naulahs or Noellahs
as outlined below. are similar structures found in Kumaon hills.
Unlike dharas, water in a naullah does not
Harnessing the Potential of Traditional come out as a spring but slowly seeps out and
Systems gets collected in small kunds. These structures
are present in areas where the underground
21.79. India has a rich tradition of water water table intersects the ground surface.
harvesting systems. Their neglect would be a Usually, these naullahs are protected by
terrible mistake in an era of piped drinking enshrining deities within their structure and
water supply or water supply from handpumps making it part of the religious culture of the
and borewells. Kuin or Kuia was a type of well area. Revival of traditional water harvesting
constructed in a few parts of Rajasthan, (Churu, systems should be the first charge on
Bikaner, Jaisalmer and Barmer). The kuin was MGNREGA funds.
an unusual kind of well in that it did not depend
upon underground water. In these kuin, water New Strategic Framework for Rural
accumulates very slowly. The rainwater so Domestic Water
retained by sand gradually percolated to the
bed of the well and was usually not more than 21.81. A common resource in private hands
three earthen pots a day. The significance of places major responsibility on the private
these wells lies in that they made life possible in appropriators themselves of managing it
the Rajasthan desert region by supplying sustainably. The state needs to play a key
essential drinking water. Bera or Beri is another facilitating role to ensure that this does indeed
variation of a well constructed near a water happen. This requires major inter-ministerial
body or on the dry bed of a water body. Kund or partnership through co-ordination of activities
Kundi comprises direct accumulation of that are currently happening within
rainwater in an underground brick-lined tank. It departmental silos, across which there is little
was primarily constructed for potable purposes conversation, let alone partnership. The DDWS
in the north-western Rajasthan, where has to work closely with MoWR, as also other
groundwater was either brackish or available at related departments. The Tenth Plan proposed
great depths or both. Tanka is an underground the setting up of an inter-ministerial
cavern used to collect and store rainwater for coordination committee at the level of
drinking purposes. Secretaries under Member, Planning
Commission. The following key elements of a
21.80. A traditional system still prevalent in new implementation strategy for drinking water
desert districts like Barmer, Jodhpur, Jaisalmer, security in rural India require closely co-
Jhunjhunu etc. Depending on the location, the ordinated action:
water from rooftops is also diverted into the
tankas to enhance storage. Nadi is a village 1. Create essential data- and knowledge-base
pond, constructed in areas where the to enable water appropriators to make
underground strata is less sandy and could hold informed decisions. Knowledge levels in
water till December. At times, these nadis are this area are low not just among farmers,
lined if clayey material is locally available to but also among officials and even among
reduce percolation. They serve the purposes of scientists. The manner of data collection
irrigation as well as drinking water. Dhara or even on drinking water sources is extremely
springs are the main source of drinking water in loose. Aquifer mapping and delineation has
the central Himalayas. They are built at a place not even begun to get off the ground. The
where the stream spouts from underground to present scheme of the MoWR called
462 Mid Term Appraisal of the Eleventh Five Year Plan

“Groundwater Management and water supply systems, social audit etc. The
Regulation”, has been concerned with DDWS must encourage use of its allotted
neither. Most of these “small” schemes in funds for Water and Sanitation Support
the MoWR have been suffering neglect, Organisations(WSSOs) for building
with focus being exclusively on the large partnerships with these kinds of training and
AIBP. It is the “soft-aspect” schemes that social mobilisational institutions.
hold the key to transforming large outlays
4. Break the energy-irrigation gridlock: A major
into real outcomes. Its first task should be to
factor contributing to rapid fall in water
build a comprehensive data-base of
tables in India is the availability of free or
aquifers in India along with a spelling out of
cheap power. Now the latter has also
strategies for assuring safe and sustainable
become a consequence of the former, as
drinking water in each setting. This effort
farmers need power to reach lower depths
needs to be dovetailed with the
to extract groundwater. Complete
“Development of Water Resources
elimination of power subsidies would have a
Information System” scheme (implemented
major negative impact on farm livelihoods.
by the CWC and ISRO) which aims to put in
But there is a way out as shown especially
place a web-enabled water resources
by the Jyotigram scheme in Gujarat.
information system. While developing its
Feeders supplying power to tubewells are
own new MIS, the DDWS must work closely
separated from other rural feeders. Now
with these agencies to arrive at a holistic
villages get full day three-phase power for
picture of drinking water prospects in each
domestic uses, schools, hospitals and
block of India. The Water Security Action
village industries. Farmers get eight hours
Plans (WSAPs) it so rightly intends to get
of full-voltage three-phase power according
prepared in each village and district require
to a pre- announced schedule. Predictable,
these technical inputs.
reliable, high-quality, even if rationed
2. Develop aquifer management plans so that power, appears a better deal for farmers
holistic management of groundwater with a than the earlier erratic, poor quality supply
clear sense of priorities is possible . These that incentivised stolen power. This has
interventions would necessarily vary, made possible real-time co-management of
depending on which hydrogeological setting electricity and groundwater of which there
we are seeking to address. Each are few other examples across the globe
hydrogeological setting demands a different (Shah, 2009).14
approach, since each setting has variable
5. Create the supportive legal regulatory
implications for rates of groundwater
framework to facilitate stakeholder action.
recharge and drinking water security.
The rights of appropriators to devise their
3. Provide the necessary framework and own institutions should be protected, while
resources for awareness generation and seeing to it that they do not violate legally
capacity building among stakeholders to enshrined principles of rights, equity and
help them make high-quality informed sustainability. Separate groundwater
decisions. Major partnerships have to be legislations are needed if aquifers are to be
forged between apex technical institutions protected. The DDWS must realise that it
like the National Water Academy and Rajiv cannot leave this task merely to the MoWR.
Gandhi National Ground Water Training This is a national priority and must become
and Research Institute (both under the a conditionality for further support under the
MoWR) and a whole host of government NRDWP, given the overwhelming
(NIRD, SIRDs, WALMIs, CAPART etc) and importance of groundwater for rural drinking
leading non-government training
institutions, who can reach different levels
of stakeholders. Training is required in 14
Shah, T. (2009): Taming the Anarchy: Groundwater
sustainable and equitable groundwater Governance in South Asia, Resources for the Future,
management, water quality monitoring, Washington DC and International Water Management Institute,
Colombo
water level recording, O&M of drinking
 Water Resources 463

water supply. o take charge of O&M of domestic

water supply schemes
6. Set up multiple layers of nested institutions
within which appropriation, provision, o monitor water levels and water
monitoring, regulation, enforcement, conflict quality
resolution and governance activities can be
o implement urgent measures to
organised. This task has to begin now and
mitigate quality problems, wherever
will require armies of social mobilisers
possible
mainly drawn from civil society
organisations who need to help generate o ‘Sensitise’ members of the VWSCs
awareness about the need for collective
o monitor availability of safe drinking
management of groundwater for drinking
water in schools, anganwadis and
water security. But before this can even
other public feeding programmes
begin a massive national effort at capacity
and report to the VWSC
building of these social mobilisers is
essential to ensure that they understand o operate in tandem with Anganwadi
CPR management and groundwater in the Workers and ASHAs to spread
first place awareness on water-health nexus to
ensure cases of water-borne
7. Deploy adequate human resources at the
diseases are treated on time.
cutting edge level of implementation at the
block-level and below. The block-level • Monitor compliance with water security
inter-disciplinary team of experts in plans and norms of water supply
hydrogeology, anthropology, social work will schemes.
identify and build teams of barefoot water
experts (jal mitaans) deployed by the • Organise social audit of drinking water
VWSC within each GP level. The VWSCs in the GP.
will:
8. Address Water Quality Issues on a high
• Select barefoot water experts (jal priority. This requires:
mitaans or water friends) who will be
trained by experts at the block-level. a) Comprehensive geological and geochemical
understanding of aquifers: Research is needed
• Oversee work of these jal mitaans who
on the cause behind water quality problems. A
will
“Water Quality Research Fund” needs to be
o generate household level made available for partnership based research
information about the extent of with academic and civil society groups to work
water insecurity in each habitation together on water quality issues.
in each season both in terms of
b) Continuous monitoring of water quality: We
quantitative availability and quality
need a system of frequent water quality
and feed these into the MIS.
monitoring in a participatory manner. The
o engage the people in preparing responsibility of such monitoring may be carried
water security plans for their GP out by district level laboratories along with civil
which clearly prioritises domestic society groups and the PRIs. Portable water
water and livelihood water needs quality kits can be provided to jal mitaans for
over all other demands and takes identification of major quality problems
care of the interests of
c) Identification of Health impacts of poor water
disadvantaged sections like women,
quality: Today we do not have techniques for
poor, SC/STs etc
easy detection of Fluorosis and Arsenicosis or
o report cases of water insecurity to answers on how to tackle them. District
the VWSC and in the Gram Sabha hospitals need to have “Specialised Health
meetings and seek redressal from Referral Centres” for these diseases, especially
the GS and GP in the affected areas.
464 Mid Term Appraisal of the Eleventh Five Year Plan

d) Creation of demand for mitigating impacts of non-availability of water in nearby locations

poor water quality: Doctors have a significant necessitating dependence on far-off water
role to play in this since only they can link the sources. These problems will intensify as the
symptom e.g. pain, to the root i.e. water (e.g. in urban population increases, reaching about 50
Fluorosis). Instead, if the doctor recommends a per cent by 2050.
pain-killer, an opportunity is lost. Therefore, a
national level Communication Programme 21.83. The scale of the challenge can be
through mass media, doctors and other judged from the fact that water availability in
avenues needs to be activated (such as has urban areas at present varies widely with many
been done in the case of Polio and HIV cities grossly underserved. In 2006, out of 35
programmes). metro cities, 12 had per capita water supply
more than the national norm of 150 lpcd and 23
e) Services for mitigation of health
cities had per capita water supply less than 150
problems: The “Specialised Health Referral
lpcd. It is also pertinent to mention that the
Centres” need to offer services for treatment of
distribution within the city is not equitable and
these health problems. A range of solutions –
hardly any city receives 24x7 supply.
nutrition enhancement, corrective surgeries and
ameliorating interventions – has to be tried
Eleventh Plan Initiatives
together on the affected people.
f) Preventing further problems due to poor 21.84. The Eleventh Five Year Plan identified
water quality. a total requirement of Rs 53,666 crores in order
to provide 100 per cent water supply coverage
• Low cost filters to the urban population. Out of total allocation
• Rapid spread of better sanitation and of Rs.50,000 crore under JNNURM, 40 per cent
hygiene practices, including solid and liquid of the funds i.e. Rs 20,000 crore are envisaged
waste management systems, and their to be for water supply projects. Additional
integration with drinking water supply Central Assistance of Rs.7,726 crore has been
schemes released as in March, 2010.There are 16
ongoing externally aided projects, the details of
• Water harvesting and recharge which are as follows:
• Nutrition programmes for mitigation of
health problems • World Bank- 1 Project - $ 48 million

• Providing alternative safer sources of water • JICA – 9 Projects- $ 2195 million ( ¥

201464 million)
Urban Water Supply • ADB – 6 projects - $1307 million

21.82. The urban population in India in 2001 i. Jawaharlal Nehru National Urban
was around 286 million (about 28 per cent of Renewal Mission
total population) spread over 5161 urban
agglomerations of which 35 were “million-plus” 21.85. The mission as on March, 2010 has
cities constituting about 37 per cent of the sanctioned 559 water supply projects at an
urban population. It is estimated that surface approved cost of Rs.27,388 crore, under the
water and ground water sources cater to 75 per UIG & UIDSSMT components of JNNURM.
cent and 25 per cent of the urban population Water supply projects sanctioned under
respectively. Provision of water supply facilities JNNURM incorporate features such as
in cities is becoming increasingly challenging reduction of Non Revenue Water below 15 per
due to depletion of fresh water sources, cent, volumetric tariff, 100 per cent metering of
increasing urbanisation, industrialisation, all connections, creation of water districts with
vagaries of monsoon, depletion of ground bulk flow metering and district metering areas,
water, declining quality of ground water due to 24x7 water supply etc. The strategy identified
contamination and other factors. The cost of for ensuring operational and financial
water supply schemes is also increasing due to
 Water Resources 465

sustainability of water supply includes the Development formulated benchmarks in the

following: urban water and sanitation sector in August
2008. The process involved definition of the
(i) Incentives to providers of basic services Performance Indicator, identification of Data
to the urban poor, with improved Requirements, establishing the methodology for
monitoring and oversight the Indicator to be measured, arriving at a
methodology for Reliable Measurement of
(ii) Mechanisms to strengthen consumer
Indicators, setting the frequency of
voice, including passage of public
Measurement of Indicators, fixing the
disclosure law and community
jurisdiction( Geographical entity) of
participation law and associating elected
Measurement and arriving at a consensus on
ULBs with the “city planning function”.
the Benchmarks.
(iii) Introduction of system of e-governance
using IT applications 21.87. A pilot project in the implementation of
benchmarking has been initiated in 28 cities
(iv) Improved information through better and the first stage i.e establishment of baseline
metering. levels of performance has been completed.
(v) Improved management autonomy for This will be followed by the preparation of plans
water providers to judiciously upgrade, for improvement of information systems and
rehabilitate and expand distribution performance. This initiative of the MoUD has
systems, and even treatment capacity as generated considerable enthusiasm among the
required. states. Karnataka has rolled out benchmarking
to the entire states and has developed an
(vi) Benchmarks for service level and online application for compiling SLB data. It has
introduction of benchmarking and also linked disbursement of finance
surveillance systems. commissions to the achievement of
(vii) Target subsidies to capital costs, not benchmarks.
recurring costs which should be fully
21.88. Madhya Pradesh and Andhra Pradesh
covered by user charges.
have initiated benchmarking in 11 towns each
(viii) Adoption of modern, accrual-based in addition to those included in the MoUD pilot
double entry system of accounting. exercise. Orissa has initiated steps towards
institutionalisation/state-wide rollout of
(ix) Levy of reasonable user charges with the
benchmarking by earmarking funds in the state
objective of cost recovery for O&M and
budget. Documentation of baselines will be
reinvestment for augmentation and
followed by the preparation of Information
replacement
Systems Improvement Plans which would
(x) Measures to improve credit worthiness of comprise household surveys, installation of bulk
water utilities. meters at production points, installation of flow
meters at key distribution points and consumer
(xi) Implementation of 74th Constitution
level metering, documentation of hours of
Amendment Act regarding empowerment
supply, use of pressure gauges to monitor
of ULBs.
pressure levels, development of complaint
(xii) Structural reforms such as ring fencing of recording and monitoring systems, ring fencing
water utilities, professional management, of water and sanitation utility accounts etc.
capacity building and autonomy of water Performance improvement plans will comprise
utilities, encouraging public-private measures such as reduction of illegal
partnerships connections and encouraging legal connections
especially amongst the urban poor etc.
ii. Service level Benchmarks
iii. Training Programmes
21.86. Establishment of service level
benchmarks is an essential step towards reform 21.89. These programmes aims to build
of the urban water sector. The Ministry of Urban technical capacity in the sector catering to the
466 Mid Term Appraisal of the Eleventh Five Year Plan

needs of the professionals working in various v. PPPs in Urban Water Supply

Water Supply & Sanitation Departments (water
utilities). The following training programmes 21.91. Since water supply sector in urban
have been introduced and are being conducted areas requires huge investments in urban
through Academic and Research institutions infrastructure and management models that
and field departments: promote efficient, effective and good quality
basic urban services on a sustainable basis,
• Post Graduate Course in the Public Health/ there is a role for well conceived, structured and
Environmental Engineering. The duration of transparently-executed public-private
PG course is of two years. There are 11 partnerships (PPP). There are a few projects in
recognised premier institutions, where in- PPP mode, but these need to be examined.
service engineers are deputed for Water supply and sanitation services have been
undergoing the course. seen as “public goods” that need to be provided
at affordable prices and this has led to low
• Short Term Course in Public Health/ water and sewerage tariffs that make water
Environmental Engineering is being supply and sewerage projects non-bankable
imparted in two institutions. The duration of necessitating general revenue support even for
the course is three months. operations and maintenance. The financially
precarious state of most urban local bodies
• Refresher Courses on various aspects of makes it difficult for them to assure such
design, construction, operation and support.
maintenance of water supply and sanitation
facilities are conducted by 20 recognised 21.92. With the launch of the reform-driven
academics & research institutes and field and part-grant financed JNNURM, both the
departments. The duration of the courses macro-environment as well as project-level
vary from one week to four weeks. micro environment is becoming more and more
congenial for public-private partnerships (PPPs)
As of March 2009, about 30,600 technical in the urban water supply sector. Many of the
personnel, at various levels, have been trained JNNURM-supported reforms are expected to
under the aforesaid programmes create favourable governance and institutional
iv. Centrally Sponsored Accelerated Urban framework for the private sector to feel more
Water Supply Programme confident to venture into the urban sector.
Another initiative taken by the Government of
21.90. This programme, launched in March India in partnership with KfW is the proposal to
1994, provides Central assistance for provision establish a PPP Urban Infrastructure fund
of safe drinking water supply facilities in towns exclusively for social Infrastructure (water
with population of less than 20,000 (as per supply, sanitation and SWM) through service
1991 census). Under this programme, 50 per contract and Management contracts. The
cent of the estimated cost of the water supply assistance will cover capacity building, project
scheme is provided by Government of India as development funding and facility to finance
grant, 45 per cent by the respective State required investment. A mix of loan and grant
Government as grant and the balance 5 per support for the PPP-UIF would be made
cent is mobilised through beneficiary available under the Indo- German Development
contribution. Since 2005-06, this scheme has Cooperation. Upto Euro 200 million (Rs. 1200
been subsumed into the Urban Infrastructure crores) could be offered as refinance support
Development Scheme for Small and Medium for the fund. Further, Grant assistance up-to
Towns (UIDSSMT), which aims to cover all Euro 3 Million could be provided for capacity
small and medium towns excluding those to be building and project development.
covered under Jawaharlal Nehru National
Urban Renewal Mission (JNNURM). So far, 21.93. Private sector participation in this area
1243 schemes have been approved and 1088 would be facilitated by addressing issues that
schemes have been commissioned /and affect PPP generally such as development of
completed. local capital markets, development of a long
term capital bond market, encouraging new
 Water Resources 467

products such as credit enhancement and bond provided (Maltz, 2005). 16 The DMAE is self-
insurance, encouraging participation by FIIs, financed through the water tariffs paid by
insurance companies, pension funds etc in approximately 1.4 million city residents. An
Infrastructure Investment, capacity building annual surplus of about 20-25 percent of the
especially in the areas of project evaluation and budget goes into new investments.
fund management skills. The state
governments need to enact model municipal 21.96. The Empresa de Acueducto y
law to enable PPP, set up regulatory Alcantarillado de Bogotá (EAAB), Bogotá,
authorities, set up State level urban Columbia is another international example of
infrastructure institutions, create cadre of successful reform in the 1990s. By 2001, 95 per
professionals at ULB and State level. There is cent of the population had clean tap water,
also a critical need for building regulatory while 87 per cent were connected to the
capacity in areas such as managing the sewage system, an impressive achievement
regulatory structure; tariff fixation; ensuring considering the rapidly growing population of
better bidding process; contract the city. The expansion was financed by
management/dispute resolution process; introducing a progressive tariff system.17
project finance; clear policy direction for non Participatory practices have also been
compete clauses. successfully followed in the Municipality of
Recife in Brazil (Miarnada, 2005).18
Learning from International Experience
21.97. There is absolutely no alternative to
21.94. Many examples from all over the world reforming the water sector in urban areas. A
can provide right directions for reform of the key element of this has to be planning for safe
urban water supply sector in India. These disposal of waste. It is estimated that about 80
include, for example, the Cooperativa de per cent of the water used by households is
Servicios Publicos Santa Cruz Ltda disposed of as waste. This waste is polluting
(SAGUAPAC), Santa Cruz, Bolivia. The either our groundwater or our rivers, which are
SAGUAPAC is financially independent and the sources of fresh water. Reform of the urban
ensures that all costs are recovered from the water sector must follow international practice,
water users. which is committed to reducing dependence on
fresh water and focused on treatment and
21.95. Another example is the Departamento recycling of waste-water, which also reduces
Municipal do Agua e Esgoto (DMAE), Porto pollution. We must learn from the example of
Alegre, capital of Rio Grande do Sul, Brazil. countries like Singapore which have reduced
While the DMAE is an autonomous public body, their dependence on fresh water and where
separate from the municipal government, and even a high-quality water demanding sector like
makes its own decisions on how to invest the semiconductor industry uses recycled
revenues it earns, the Mayor appoints the water. Today our installed capacity to treat
Director-General of DMAE, and the waste is less than 20 per cent of what we need.
representatives on its Deliberative Council. This The investments we are making in cleaning
is similar to the French municipally- owned rivers have little chance of yielding results
régies à personnalité morale et autonomie unless we have better plans in place for safe
financière. The European Union describes disposal of waste, which continues to pollute
these as trading bodies whose borrowing and our rivers.
debts would not be counted as government
debts for the purposes of monetary control (Hall
et al, 2002). 15 The operations and investment
decisions of the DMAE are discussed through a 16
Maltz, Helio (2005): Porto Alegre’s Water: Public and for All,
participatory budgeting process and citizens are Transnational Institute (TNI) & Corporate Europe Observatory
involved in checking the quality of the services (CEO)
17
Manthan (2010): Public Private Partnerships in the Water
Sector, Badwani
15 18
Hall, David et al (2002): Water in Porto Alegre, Brazil - Miranda, Antonio (2005): Recife, Brazil: Building Up Water
Accountable, Effective, Sustainable and Democratic, Porto And Sanitation Services Through Citizenship, Transnational
Alegre Institute (TNI) & Corporate Europe Observatory (CEO)
468 Mid Term Appraisal of the Eleventh Five Year Plan

21.98. Most Indian cities today spend Conclusion

anywhere between 50-70 per cent of their water
supply accounts on electricity to pump water. 21.100 The Planning Commission is currently
As the distance increases, the cost of building engaged in preparing a Comprehensive Water
and then maintaining the water pipeline and its Security Management Policy for consideration
distribution network as increases. If the network of Government. It will carry forward the ideas
is not maintained then water losses also expressed in this chapter for taking a unitary
increase. Today, municipalities officially report view of the hydrologic cycle and moving beyond
anywhere between 30-50 per cent of the water the silos into which we have divided our
supplied as ‘lost’ in leakages. It would be far approach to water. Meanwhile, in the next two
more efficient to revive traditional and local years of the Eleventh Plan, there is a need to
water bodies, which also help recharge take urgent steps to
groundwater.
a. Protect sources of drinking water both in
Cleaning our Rivers terms of levels as well as quality
b. Protect and rehabilitate traditional water
21.97 The National River Conservation Plan
harvesting structures
(NRCP) was launched in 1995 to check
pollution levels in identified polluted stretches of c. Rapidly move towards rainwater harvesting
major rivers. At present NRCP covers 35 and recharging of groundwater through
stretches of polluted rivers in 164 towns across investments under the Integrated
20 States. A Planning Commission report19 Watershed Management Programme
prepared for the Supreme Court in 2009 finds (covered in the Chapter on Agriculture) and
that while the Eleventh Plan outlay for NRCP is MGNREGA (covered in the Chapter on
Rs.2,100 crores for the entire country, the Rural Development)
utilisation has been less than 40 per cent in the
d. Bridge the gap between irrigation potential
first three years of the Plan period.
created and utilised in surface water
21.98 In the Ganga basin, sewage treatment irrigation projects
plant (STP) capacity is only 31 per cent of the e. Improve efficiency of water use in AIBP
domestic sewage generation. In Class I and II projects through both management and
towns along the main stem of the Ganga River, technology innovations
the corresponding figure is 35 per cent. Thus, a
gap of around 65 per cent exists between f. Improve systems of waste disposal,
domestic sewage generation and STP capacity especially in urban areas
resulting in untreated sewage flowing into rivers g. Set up greater capacity of sewage and
and other water bodies. As a result, in many effluent treatment plants.
locations along the Ganga, the BOD/COD has
worsened. According to the report, the coliform
count in the river has increased particularly at
pilgrimage places due to bathing of pilgrims
who also pollute the river.

21.99 The report estimates that NRCP projects

for all the rivers in the country would cost about
Rs 33,000 crores for creating additional 38,000
MLD STP capacity by 2020. As the report
concludes, the ultimate goal should be to
provide sewerage facilities for all and zero
discharge of untreated sewage into our rivers.

19
Planning Commission (2009): Report on Utilisation
of Funds and Assets Created through Ganga Action
Plan in States under GAP, New Delhi
 22
Environment and Forest

22.1. The Eleventh Plan envisages a clear (FTC) increase to 25 per cent by 2007 and 33
commitment to pursue a development agenda per cent by 2012. As per the State of Forests
which is environmentally sustainable, based on Reports (SFR) 2009, India’s FTC was 23.84 per
a strategy that not only preserves and cent of its geographic area in 2007. An increase
maintains natural resources but also provides of 3.13 MHa in FTC has taken place between
equitable access to those denied this currently. 1997 and 2007 i.e., an increase of less than
It recognises the need to have environment one per cent of geographic area in the last 10
protection at the core/centre stage of all policy years.
formulation. In the absence of such an outlook,
development as pursued, may actually lead to 22.4. Given this historical track record, and
deterioration in quality of life. This would be the ever increasing pressures on land due to
discernible, in the generally worsening quality of the needs of economic development, getting
air in cities, increasingly polluted waters of our large amounts of additional land under forest
lakes and rivers, in the loss of biodiversity, and and tree cover over the next few years seems
shrinking of wildlife habitats. Translating the difficult and unrealistic. There is a need to
vision of environmental sustainability will change our mindset away from a “quantity”
require that environment concerns are given a focus towards “quality” focus. We should not
high priority in development planning at all merely focus on increasing area under forest
levels. and tree cover, as we have traditionally done,
but instead focus on increasing the quality of
Monitorable Targets our forest and tree cover. This would mean
greater emphasis on increasing the density of
22.2. The Eleventh Plan emphasises the our existing forests, regenerating our degraded
following monitorable socio-economic targets in forest lands, and eco-restoration of our scrub
the Environment and Forests sector- and grass lands, mangroves, wetlands and
other ecological assets. This re-orientation of
• To increase forest and tree cover by 5 focus has a dual advantage- first, it is more
percentage points. practical and realistic to achieve, and second
and more importantly, it allows us to achieve
• To attain WHO standards of air quality in all
the same (or perhaps even better) outcomes
major cities by 2011-12.
from an ecological perspective. From the
• To treat all urban waste water by 2011-12 in perspective of carbon sequestration as well as
order to clean river waters. from the perspective of generating greater
biodiversity value for the country, this approach
• To increase energy efficiency by 20 per cent
is likely to be more effective. This is likely to be
by 2016-17.
the approach under the National Mission for a
• To increase forest and tree cover by 5 Green India, a key mission under the National
percentage points Action Plan on Climate Change which is going
to be operational this year. The Ministry of
22.3. The Tenth Plan had envisaged a
Environment & Forests has already declared its
quantitative target of Forest and Tree Cover
470 Mid-Term Appraisal of the Eleventh Five Year Plan

target of doubling the area to be taken up for National Ganga River Basin Authority (NGRBA)
eco-restoration and afforestation to 20 MHa has now been setup and a fast track project
over the next 10 years using this new approach approval mechanism is being put in place. In
through participatory, decentralised the first meeting of the NGRBA, Planning
implementation. This must be supported for the Commission was asked to consider possible
remaining period of the Eleventh Plan, and change in the funding pattern from existing
based on a comprehensive assessment of the 70:30 to 90:10.
progress made, duly incorporated into the
approach to the Twelfth Plan. 22.8. Considering the resource allocated,
ongoing works in the States and the normal
To attain WHO standards of air quality in all implementation period for the sewerage works,
major cities by 2011-12 creation of sewage treatment capacity of 1000
MLD should be targeted for the remaining two
22.5. The National Ambient Air Quality years of the Eleventh Plan under NRCP. A
Standards (NAAQS) takes into account six substantive sewage treatment capacity should
parameters while assessing the quality of air. also be created under JNNURM keeping in
These are the presence: of Sulphur dioxide view the sewage generation. There should be a
(So2), Nitrogen oxide (NOX), Suspended substantial increase in fund allocation from
Particulate Matter (SPM), RSPM, Lead and 2010 -11 to meet the requirement of creating
Carbon Monoxide (CO). However, the WHO sewage treatment facilities and for results to
has two sets of guidelines; one applicable for start accruing in the Twelfth Plan period.
Europe which specifies over 32 parameters,
and the other (Global update 2005) which has To increase energy efficiency by 20 percent
six parameters that include Ozone and Volatile by 2016-17
Organic Compounds (VOC) in addition to SO2,
NOX, RSPM, and CO. 22.9. In March, 2007, the Government of
India notified units in nine industrial sectors,
22.6. Monitoring of Persistent Organic namely Aluminum, Cement, Chlor-Alkali, Pulp &
Pollutants (POPs), VOCs and Hazardous Air Paper, Fertilisers, Power Generation Plant,
Pollutants (HAPs), may be initiated at selected Steel, and Railways, as Designated Consumers
locations (class 1 cities) to develop a protocol (DCs). These industries have to appoint an
and to assess the requirements of energy manager, file energy consumption
infrastructure. The NAAQS needs to be returns every year and conduct mandatory
amended during the current financial year energy audit. As a result, energy consumption
in five sectors reduced by 7.5 per cent from
To treat all urban waste water by 2011-12 to their 2005 levels.
clean river waters
22.10. The Integrated Energy Policy, 2008
22.7. The Eleventh Plan set a target of suggests that (i) Energy efficiency be attained
treating all urban waste water by 2011-12 to in all sectors, (ii) All new power generating
clean river waters. Earlier the Tenth Plan had plants be mandated to adopt technologies that
set a target of cleaning of major polluted rivers improve their gross efficiency from 36 per cent
by 2007 and stretches by 2012. As per Central to at least 38-40 per cent, (iii) The gross
Pollution Control Board (CPCB) survey, the efficiency in existing power generation plants be
estimated wastewater generation in 2008 from increased from the current average of 30.5 per
class I & II towns in the country was around cent to 34 per cent and (iv) India’s energy
36,000 MLD, (1,67,400 MLD by 2025) against intensity per unit of GDP be reduced by up to
which treatment capacity of only 7,650 MLD 20 per cent from current levels in 10-20 years
exists at present. Sewage treatment capacity of by policies encouraging Energy Efficiency and
about 3,939 MLD (about 52 per cent) has been Conservation.
created under GAP-I & National River
Conservation Project (NRCP). The available 22.11. Steps should be taken by the Ministry of
treatment capacity is highly inadequate. The Environment and Forests (MoEF) in
 Environment and Forests 471

coordination with the Ministry of Power to framework drafted for utilisation of CAMPA and
achieve the goals for enhanced energy amalgamation of Green India scheme with
efficiency through the measures and Gram Van Yojana are under consideration.
mechanisms envisaged/ approved in the
National Mission on Enhanced Energy 22.14. However, many areas such as
Efficiency as a part of the National Action Plan Institutional Mechanism, Classification,
on Climate Change. Labelling & Packaging of hazardous chemicals,
Recycling & Reuse, Remediation including Bio-
22.12. In addition to the four monitorable remediation and Ecological Restoration still
targets set out in the Eleventh Plan, it is require legislative support.
recommended that ‘‘Soil” the third component
of Environment and soil contamination and B. Financial Status and Physical Progress of
remediation of critically polluted areas be given Programmes
attention.
22.15. There are 61 approved schemes
Programmes, Progress, Performance and grouped under 22 programme heads under
Constraints implementation by the MoEF. Schemes under
10 heads are Centrally Sponsored Schemes,
A. Policies and New Initiatives accounting for around 70 per cent of the
approved outlays. Out of the 61 schemes
22.13. A number of policy and legislative currently being implemented by the MoEF, 32
initiatives were taken by the MoEF, during the schemes (under nine heads) are in the area of
first two years of the Plan (see Box 22.1). In Environment , 21 schemes ( under nine heads)
addition to these, the draft Coastal are in forestry sector and the remaining eight
Management Zone (CMZ) notification was schemes (under four heads) are in the areas of
issued in May, 2008 proposing an integrated Wildlife and Animal Welfare
Coastal Management approach and calling for
objections/suggestions. An integrated
Box 22.1
Policy Developments and New Initiatives during 2007-10.
(i) Prime Minister’s Council on Climate Change, to coordinate National Action Plan for
assessment, adaptation and mitigation of climate change constituted.
th
(ii) India’s National Action Plan on Climate Change, unveiled on 30 June 2008.
(iii) National Biodiversity Action Plan released in November 2008.
(iv) Draft amendments to the EIA Notification issued on 19th January, 2009
(v) Notification on Hazardous Waste (Management, Handling and Trans-boundary movement)
Rules 2008 issued in September 2008. An amendment to this Notification issued in July 2009.
(vi) River Conservation Strategy Revamped, The National Ganga River Basin Authority (NGRBA)
setup.
(vii) A National Green Tribunal (NGT) Bill drafted and introduced in the Lok Sabha on 31.07.2009.
(viii) An exercise to conceptualize and constitute a National Environment Protection Authority
(NEPA) in the country undertaken.
(ix) The National State of Environment Report released in 2009
(x) 1429 Water Quality monitoring stations and 355 ambient air quality monitoring systems
established.
(xi) The scope of Integrated Development of Wildlife habitats scheme and Project Tiger
strengthened and enhanced.
(xii) Scientific methodology for estimating Tiger population evolved and mainstreamed. Tigers
reintroduced in Sariska and Panna Tiger Reserves. Special Tiger Protection Force Created.
(xiii) Multi disciplinary Wildlife Crime Control Bureau to effectively control illegal trade in wildlife
constituted.
(xiv) Dolphins are declared as national aquatic animal.
(xv) Notification/orders issued for implementation of the various provisions of the Biological
Diversity Act, 2002.
472 Mid-Term Appraisal of the Eleventh Five Year Plan

Financial Status Pollution Abatement. General administrative

and procedural delays are attributed to
22.16. The MoEF has an approved outlay of shortfalls in these schemes. The details of
Rs 10,000 Cr for the Eleventh Plan. Annual expenditure indicated in Table 22.1 actually
Plan 2007-08 and 08-09 had an approved relate to releases and not to actual utilisation.
outlay (both BE and RE) of Rs 1351 crore and As can be seen from Fig. 2 there has been a
Rs. 1500 crore, against which the actual drastic reduction in the funds allocated by the
expenditure incurred was Rs 1349 crore and Rs MoEF for the Environment sector from 20.18
1483 crore respectively. During 2009-10, the per cent (Tenth Plan) to 12.46 per cent in the
Ministry has been allocated Rs 1,880 crore, Eleventh Plan.
which is expected to be fully utilised.
Table 22.1
Sector-wise outlays/ expenditure, 2007-09 and 2009-10
(Rs. Cr)
Sl. Sector 11th Plan 2007-09 Outlay 2007 – 2009 Exp. 2009-10
No. Outlay 07-08 08-09 07-08 08-09 Outlay
1 Environment 1,246.01 259.16 261.38 224.22 240.91 291.42
2 NRCD* 2,540.00 340.00 340.00 320.94 326.23 577.33
3 Forestry & 2,943.99 371.61 475.00 361.73 520.66 599.63
Wildlife
4 N.A.E.B** 3,150.00 359.23 398.62 422.05 370.95 386.62
5 Animal 120.00 21.00 25.00 20.79 24.89 25.00
Welfare
Total 10,000.00 1,351.00 1,500.00 1,349.73 1483.64 1,880.00
*NRCD includes the Directorate, NRCP and NLCP administered by the River Conservation Directorate.
**N.A.E.B sector includes schemes of NAEB, ETF, NAP and Panchayat Van Yojana.

Expenditure (till September, 2009) indicates Fig. 1. Sector wise outlays

utilisation of Rs 870 Cr or 46.30 per cent of the
BE. Sector-wise details of outlays/expenditure 6098
in the first three years of the Eleventh Plan are
00
70

Ninth Plan
given in Table 22.1 and the distribution among
00

Tenth Plan
60

the sectors including percentage allocation to

each sector is shown in Fig. 1 & Fig. 2.
00

Eleventh Plan
50

2900
00
40

2540
22.17. The Eleventh Five Year Plan outlay
00

for the ten CSS schemes (three in the 1776

30

1670
1264
Environment and seven in Forestry & Wildlife 1103 1200 989
00
20

sector) accounts for Rs. 7734 crore. The outlay 20 175 120
00

for the year 2007-09 for the ten CSS scheme

10

was Rs. 1992 Cr and the expenditure Rs. 2025 Environment Forest and Wildlife NRCD Animal Welfare
0

Rs. in Cr
Cr which accounts for 71.49 per cent of the total
expenditure during this period.

22.18. Major schemes exhibiting shortfalls in

utilisation of resources during the Eleventh Plan
include the scheme for strengthening of
Forestry and Wildlife Division, Biodiversity
Conservation and Rural Livelihood
Improvement Project, NAEB, NRCP,
Environmental Information, Education &
Awareness, International Cooperation,
Environmental Monitoring & Governance and
 Environment and Forests 473

Fig-2. Sector wise allocation(%) in the MOEF

70 22.19. In respect of the Training scheme delay
Forest and Wildlife
in implementation has been on account of
60
return of unspent balance by DAVP at the fag
50 end of the year with no time left to cover other
40
proposals and shortfalls The shortfall in
utilisation of funds in the case of National
%

30
NRCD
Coastal Management Programme was due to
20 delay in finalisation of the MOU between the
Environment Survey of India (SOI) & MOEF.
10

0 Animal Welfare Utilization of outlays

Ninth Plan Tenth Plan Eleventh Plan

22.20. The outlay for the year 2009-10 is Rs

Table 22.2
Scheme-wise availability of Outlays – Eleventh Plan
(Rs Cr)
Programmes 11th Plan Outlay 07-09, Exp. 09-10 outlay 10-12 Bal
1. Env. Monitoring and Governance. 216.00 84.64 40.80 90.56
2. Pollution Abatement 235.00 41.15 32.07 161.78
3. R& D for Conservation & Dev 250.00 104.83 59.21 85.96
4. Cons. of Nat. Resources & Ecosystems 600.00 165.43 75.00 359.57
5. Env. Information. Education. & Awareness 295.00 146.18 94.82 54.00
6. Taj Protection 0.01 0.00 0.01 0.01
7. International Co-Operation Activities 80.00 29.09 19.01 31.90
8. National Coastal Management Prog. 10.00 1.63 15.50 -7.51
9. National River Conservation Plan (NRCP) 2,100.00 538.97 532.33 1028.70
10. Grants in aid to Forestry & Wildlife Insti. 450.00 202.00 117.28 130.72
11. Capacity building in Forestry sector 110.00 21.31 19.51 69.18
12.Gregarious Flowering of Muli Bamboo 37.00 35.71 0.00 1.29
13. Intensification of Forest Management 600.00 143.35 76.00 380.65
14. Strengthening Forestry Division 100.00 32.59 19.63 47.78
15. Strengthening of Wildlife Division 150.00 43.75 22.58 83.67
16. Integ. Dev. of Wildlife Habitats (IDWH) 800.00 143.14 80.00 576.86
17. Project Tiger 615.00 222.75 243.13 149.12
18. Project Elephant 81.99 37.79 21.50 22.70
19. Nat. Afforestation & Eco-Dev. Board 250.00 54.46 31.00 164.54
20. National Afforestation Programme (NAP) 2000.00 738.54 345.62 915.84
21. Panchayat/Gram Van Yojana 900.00 0.00 10.00 890.00
22. Animal Welfare 120.00 45.68 25.00 49.32
Total 10,000.00 2833.37 1,880.00 5,286.64
Table 22.3
Externally Aided schemes 2007-08 to 2009-10
(Rs. Cr)
Scheme XI Plan 2007-08 2008 – 2009 2009-10
Outlay Outlay Exp. Outlay Exp. Outlay
1. NRCP 475.00 92.00 37.14 105.00 105.00 105.00
2. GOI-UNDP CCF Proj. 25.00 5.00 5.00 5.00 5.44 7.47
3. BCRLIP 15.00 3.00 0.95 3.00 0.53 3.0
4. H.S.M.D 33.50 1.50 0.58 1.50 1.65 10.00
5. Nat. Coastal Mg. Prog 10.00 - 0.38 1.17 1.74 15.25
6. Bio Diversity Cons. 1.00 1.00 0.47 0.50 - 0.50
7. EPCO 2.50 2.00 2.00 0.50 0.37 0.01
8. IIFM - 0.22 - - - -
Total 562.00 104.72 46.52 116.67 114.73 141.23
NRCP - National River Conservation Plan, BCRLIP - Bio-diversity conservation & Rural Livelihood Improvement project,
HSMD - Relates to Capacity Building for industrial pollution management project.
474 Mid-Term Appraisal of the Eleventh Five Year Plan

1880 crore. This does not include the one time sector separately needs to be ensured,
grants of Rs 100 crore announced for Indian preferably by the Twelfth Five Year Plan.
Council for Forestry Research and Education
(ICFRE), Rs 15 crore each for Botanical Survey Externally Aided Projects (EAP)
of India (BSI) and Zoological Survey of India
(ZSI) and Rs. 500 crore for Restoration and 22.23. About 5.6 per cent of the approved
Regeneration of Degraded Forest Cover. Eleventh Plan outlay of Rs 10,000 crore of the
Assuming full utilisation of outlay in 2009-10, MoEF i.e Rs 562 crore is for Externally Aided
the actual utilisation of resources and utilisation Projects (EAP). The performance of EAP
ratio during the first 3 years of the Eleventh projects in 2008-09 and 2009-10 have shown
Plan is likely to be Rs 4713 crore , and 99.6 per improvement over 2007-08 as shown in Table
cent respectively. Total allocations in these 22.3. The shortfall in utilisation of external aid in
three years account for around 47 per cent of 2007-08 was mainly due to lack of progress
approved outlay of the Ministry, leaving the made by states (especially Delhi) in preparation
remaining 53 per cent (Rs. 5291 crore) of of necessary DPRs under YAP phase II. The
allocation for the last two years of the Plan. The progress under the World Bank project on
allocation of funds for the 22 programmes Biodiversity Conservation and rural livelihood
under which 61 individual schemes have been improvement project has been impacted by
grouped is indicated in Table 22.2. change in scope of the scheme by the donor
agency. The National Coastal Management
Financial Resources Available Programme and the capacity building for
industrial pollution management project are
22.21. The outlay for 2009-10 of Rs. 1,880 expected to pick up in 2009-10. A project on
crore includes Rs. 250 crore for the National capacity building for forest management and
Ganga River Basin Authority for its activities. training of personnel, with an EAP component
The Planning Commission will also consider of Rs 225 crore has been approved for
providing the NGRBA Rs. 500 crore every year implementation in the second half of the
for the next two years of the Eleventh Plan for Eleventh Plan.
NGRBA. For the Accelerated Programme of
Restoration and Regeneration of Degraded Physical Progress
Forests, Additional Central Assistance (ACA) of
Rs. 500 crore has also been provided during Environment & Ecology
2009-10 with an assurance that Rs. 1,000 crore
per annum will also be considered for the last Environmental Monitoring and Governance
two years of the Eleventh Plan to provide
further momentum to this programme. All 22.24. Three schemes have been grouped
efforts to utilise these additional allocations under this head namely: Central Pollution
need to be made in the current year. Control Board [1974]; Establishment of
Environment Protection Authorities &
22.22. The Total Central Sector outlay for the Commission & Tribunal; and Activities under
Eleventh Plan of the country is Rs. 10,96,860 EIA. The major objectives of the schemes are:
crore (Constant Price) of which Rs 8,841 (i) to monitor compliance and implementation
crore/Rs.10,000 crore (Constant and Current and to strengthen Institutional & Technical
Price respectively) is allocated for Environment, capabilities for environmental governance (ii) to
Forest and Wildlife sectors. The current mainstream environment in developmental
allocation for Environment and Forest Sector is activities by grant of Impact Assessment
0.70 per cent (0.91per cent) of the total central Clearances.
Sector outlay and in the States it varies
between 0.021 per cent - 1.78 per cent of the 22.25. The Central Pollution Control Board
state outlay for Environment and 1.25 per cent (CPCB) coordinates the implementation of the
for Forestry & Wildlife. An allocation of at least Water (Prevention and Control of Pollution) Act,
5 percent of the Annual, State and Central 1974, Air (Prevention and Control of Pollution)
sector outlay for Environment and Forestry Act, 1981 and Environment (Protection) Act,
 Environment and Forests 475

1986. CPCB has an outlay of Rs. 177 crore for Strategies; Assistance for Abatement of
the Eleventh Plan and Rs. 34 crore for the year Pollution Environment P&L; Clean Technology
2009-10. Under the Eleventh Plan 2,500 [1994]; Common Effluent Treatment Plants
National Water Quality monitoring stations, 700 (CETP); and Hazardous Substances
ambient air quality monitoring stations and 60 Management [1988]. The objectives of these
continuous air quality monitoring stations are to schemes are: (i) Prevention of pollution through
be established. Of these, only 559 water quality preventive activities such as waste
stations, 150 ambient air quality and nine minimisation/Cleaner Technology in SSI, (ii)
continuous air quality monitoring stations have Support to State Pollution Control Boards
already been established. (SPCBs), (iii) Financial assistance to Common
Effluent Treatment Plants and
Recommendations (iv)Demonstration investment in Hazardous
Waste Management. Most of the State PCB’s
22.26. Bio-monitoring of rivers and lakes as a
depend on reimbursement of cess collected.
tool for water quality monitoring should be
adopted. There is also a need for enhanced
Recommendations
outlays for CPCB of Rs 14 crore for the current
year and Rs. 34 crore for the next two years.
22.31. The Industrial Pollution Abatement
Air and water monitoring infrastructure should
through Preventive Strategies scheme & Clean
be established and networked with IMD
Technology scheme could be merged. Eighty
facilities. Further, there is a need to ensure
per cent of the water cess collected by SPCB’s
availability of skilled manpower for laboratories.
could be retained by them and 20 per cent
22.27. Action Plans may be prepared and remitted to MoEF. Currently, 100 per cent of the
implemented based on critical analysis of the cess on water collected is remitted to the GOI
Source Apportionment studies under conclusion account and 80 per cent is reimbursed to the
in six cities. State on submission of Project proposal. The
Water (Prevention and Control of Pollution)
22.28. Regional Environmental Impact Cess Act needs amendment in this regard.
Assessment’s (REIAs) /carrying capacity
studies may be undertaken in areas where 22.32. Studies and findings on water quality
major developmental activities are causing including water quality modelling in the case of
pollution. Monitoring system for environmental both surface and ground water should be
clearances also need to be strengthened. shared among the concerned organisation of
Ministry of Water Resources and MOEF such
22.29. A proposal to set up a National as Central Pollution Control Board, Central
Environment Protection Authority is being Water Commission, Central Ground Water
discussed and developed, with the aim of Board and National Institute of Hydrology.
strengthening environmental governance and Laboratory, workshop, database, library,
monitoring in India. In addition, a proposal for entrepreneurial guidance, waste exchange
strengthening the organisational capacity of the bank facilities for recovery of energy and
CPCB and the SPCBs is being developed. recycling of waste water should form an integral
These two proposals, along with the component of CETP. The Hazardous
operationalisation of the National Green Substances Management (HSM) scheme may
Tribunal, which was approved by the be redrafted after consultations with experts.
Parliament recently, can help strengthen the The scheme lacks emphasis and focus mainly
environmental governance architecture in the due to multiplicity of components viz.,
next few years, and must be pursued in a Hazardous Chemicals, Hazardous Waste
proper manner. Management and Chemical Crisis
Management. Each component of the HSM
Pollution Abatement
Scheme deserves to be a separate scheme.
22.30. Five Schemes have been grouped Adequate laboratory facilities also need to be
under Pollution Abatement namely; Industrial established along with Treatment Storage and
Pollution Abatement through Preventive Disposal Facility (TSDF).
476 Mid-Term Appraisal of the Eleventh Five Year Plan

Research & Development (R&D) for fragile coastal areas, mangroves and selected
Conservation & Development (C&D) halophytes may be raised to minimise coastal
erosion.
22.33. Eight schemes have been grouped
under this scheme namely, Botanical Survey of Environment Information, Education &
India (BSI) [1890 and reorganised in 1954]; Awareness
Zoological Survey of India (ZSI) [established in
1916]; GBPHIED [1988]; Assistance to 22.37. Six schemes have been grouped under
Botanical Gardens [1992]; Taxonomy Capacity this head namely; Environment education and
Building (AICOPTAX) – 1997; Bio-diversity Awareness [Eleventh Plan]; NMNH [1978];
Conservation; National Natural Resource Centres of Excellence (CoE) [1983];
Management Scheme (NNRMS); and Research Environment Information System (ENVIS);
& Development [1985]. The objectives of the Information Technology; and State of
schemes are: (i) to survey, maintain inventories Environment Project [Eleventh Plan]. The major
and ex-situ conservation of biological diversity, thrust of the schemes is to enhance people’s
(ii) bio-prospecting of plant and animal wealth understanding of the relationship between
and iii) disseminating research findings. human beings and the environment and to
develop capabilities/ skills to improve and
Recommendations
protect the environment. This is done through i)
22.34. Time lapse study of bio-diversity and supporting institutions for the conservation of
assessment & documentation of genetic biodiversity ii) research and training in priority
variability at population and species level needs areas of environmental science and
to be taken up on priority. ZSI and BSI should management iii) providing information on
create database of clients/research environment and related subject areas to
scholars/research institutions serviced. Thrust researchers, academicians, policy planners,
areas may be identified and fellowships may be environmentalists, scientists, engineers and the
offered for human resource generation. general public through a decentralised network
Resource allocation for the activities also needs of ENVIS Centres on diverse subject areas to
to be enhanced. Projects supported under R&D strengthen awareness. There has been delay in
should be based on current needs. the execution of the project on Information
Technology.
Conservation of Natural Resources and
Ecosystems Recommendations

22.35. Two schemes that have been grouped 22.38. The scheme on Centres of Excellences
under this head are: Conservation of Corals, (CoE) needs to be revised in terms of financial
Mangroves, Wetlands; and Biosphere Reserves support, new areas requiring emphasis and
[1986]. The objectives of the scheme include i) performance of existing CoEs. The concept of
preparation of Management Action Plans chairs on specific areas also needs to be
(M.A.P.), ii) Intensive in-situ conservation of dovetailed with the scheme on CoEs. Similarly,
biodiversity through management interventions, a rigorous review of CoEs and ENVIS centres is
iii) fund research to facilitate multi faceted necessary. All ENVIS centres may be provided
research in Biosphere Reserves and potential access to the UGC’ INFONET.
sites. So far, very few authorities have been
constituted and no financial support is available International Co-operation Activities
for wetlands from the State Governments. The
annual mangrove plantation target of 5,000 ha 22.39. Five schemes have been grouped
has not been achieved. under this head namely: International
Cooperation (IC) activities; GOI-UNDP-CCF
Recommendations
[2008]; Climate Change [1994]; Grants in aid to
States for EAP/other EAPs including EPCO;
22.36. There is a need for a re-look at the
and Civil Construction Unit (CCU). Activities
operation of the scheme and the regulatory
under the scheme involves i) foreign and
framework drafted for wetlands. In the highly
 Environment and Forests 477

domestic travel expenses, ii) grants in aid, iii) Hitherto the implementation has been
contribution to UN and other International piecemeal and has focused more on municipal
bodies, and iv) Undertake capacity building sewage. The problem is further compounded by
activities in the country regarding climate inadequate flows. A comprehensive response is
change. The scheme deals with facilitation of necessary covering water quality and flow,
India’s participation in various international sustainable access, prevention and control of
negotiations. Under the Clean Development pollution. The National Ganga River Basin
Mechanism (CDM) of Kyoto Protocol, Projects Authority has been setup and a Notification
are considered for grant of Host Country issued for NGRBA. The powers for prosecution,
Approval by the National CDM Authority. The entry and inspection are to be delegated to both
expenditure under the scheme has mostly been NGRBA and State Authorities. So far, 150
on travel since India has been participating in major polluted stretches on 37 rivers have been
international negotiations. The CCU identified but NRCP covers only 40 of the
component has now been transferred to Non polluted stretches.
plan.
Recommendations
Recommendations
22.43. The NRCP scheme needs to be
22.40. Public Sector Units (PSUs) should be revised. Financial and administrative capacities
motivated to contribute CDM projects. of local bodies should be enhanced to operate
and maintain the facilities already built. . The
National Coastal Management Programme scheme on NLCP may be merged with
(NCMP) wetlands. Since evaluation of NRCP/NLCP by
independent consultants has been initiated,
22.41. A new Central Scheme in Eleventh quantifiable deliverables must be identified and
Plan, NCMP aims at supporting the coastal monitored for NRCP and NLCP.
regulation activities of the Ministry through the
application of science and technology in order Forests, Wildlife and Animal Welfare
to protect the coastal environment and the
livelihood of coastal communities. To achieve Grants in aid to Forests & Wildlife
these aims the following activities are being institutions-CS
initiated; i) Mapping and identification of
ecologically important coastal areas, ii) 22.44. Four schemes have been grouped
Delineation of hazard line iii) Capacity under this head namely: Indian Council of
development in the management of coastal Forestry Research and Education (ICFRE)
area and iv) Pilot investment in coastal states [1989]; Indian Plywood Industries Research and
for sustainable development. The above Training Institute (IPIRTI); Indian Institute of
activities are financially supported by the World Forest Management (IIFM), and Wildlife
Bank. Institute of India (WII). The objectives of the
institutions are i) to promote research,
National River Conservation Plan (NRCP) education and extension in forestry and Wildlife
sectors, ii) Undertake research and
22.42. Three schemes have been grouped development of technologies for plywood and
under NRCP namely; NRCD [1985 and other panel products including plantation of
renamed in 1995]; NRCP [1995]; and National timber, bamboos and fibres, iii) training to
Lake Conservation Plan (NLCP) [2001]. The include training of managers of Protected Areas
objectives of the scheme are i) sanctioning and and undertaking research to build capacity for
monitoring of works under NRCP & NLCP for effective management of natural resources in
improving the water quality of rivers and lakes the country including training of managers of
respectively ii) reducing pollution load in major Protected Areas, iv) advise the Government. on
rivers through pollution abatement works. The conservation & management of Forestry and
need for revamping the river Ganga cleaning wildlife resources v) support research in the
Programme has been widely recognised. field/ area of Forestry and Wildlife.
478 Mid-Term Appraisal of the Eleventh Five Year Plan

Recommendations has recently been expanded by adding four

new components: i) Protection and
22.45. A plan for utilisation of additional grant Conservation of Sacred Groves, ii)
of Rs.100 Cr for ICFRRE announced on 2009- Conservation and Restoration of Unique
10 needs to be finalised and implemented. Vegetation & Ecosystems, iii) Control and
Eradication of Forest Invasive Species and iv)
22.46. The State of Forest Report (SFR), at Preparedness for Meeting Challenges of
least a preliminary version, needs to be Bamboo Flowering and improving
published within a year of collection of data. To Management of Bamboo Forests. The
start with, the maps could be at the scale of expenditure during 2008-09 is Rs. 75.57 crore
1:10000. against an outlay of Rs. 130 crore. The scheme
has no component of afforestation and the
Capacity building in forestry sector performance is lacking, even though the
scheme supports infrastructure development for
22.47. Six schemes have been grouped under forest management.
this head namely; Training to IFS officers; DFE;
IGNFA [1987]; Training of Personnel of other Recommendations
services; Foreign Training of Forestry
Personnel; and Training of other stakeholders. 22.51. MoEF should compile State wise
The primary objective is to conduct short-term resources available through EAP for the
courses of one/two week(s) duration for the Integrated Forest Management Scheme
Indian Forests Service Officers in the country (IFMS).
and for updating their knowledge skills with a
training component abroad. The scheme has Strengthening Forestry Divisions
been revised to add an EAP component.
22.52. Five schemes have been grouped
Recommendations under this head namely: Forest Survey of India
[1981]; Strengthening of Regional Offices;
22.48. The existing training infrastructure for National Forestry information System; National
training could be augmented and Forest and Coordinated Programme for assessment of Non
Environmental officers trained. Training Timber Forest Product resources [2009]; and
curriculum of forest officials should incorporate Certification Programme for wood & non wood
conservation and sustainable utilisation of forest resources. The thrust is to assess i)
Forest Resources. forest cover, ii) undertake forest inventory, iii)
conduct research on applied forest survey
Gregarious Flowering of Muli (Melacanna techniques and iv) capacity building of forestry
baccifera - Bamboos) -CSS [2002] Personnel, v) Establishment of zonal offices, vi)
Monitoring of forest plantations. SFR-2005
22.49. The first phase of this scheme was released in 2007.
completed in 2008-09 and was added as a
component in the Intensification of Forest Recommendations
Management Scheme (IFMS) in 2009-10.
22.53. Work on the State of forests Report
Intensification of Forest Management (SFR) 2011 should be undertaken in a manner
(former IFPS) Scheme-CSS (Eleventh Plan). that allows for a timely release. The National
Coordinated Programme for Assessment of
22.50. The objectives are: i) Forest Fire Non Timber Forest Product resources and
Control Management, ii) Strengthening of Certification Programme for wood & non wood
Infrastructure, iii) Survey & Demarcation, iv) forest resources need to become operational. .
Preparation of Working Plans which includes
Fire lines creation and Maintenance,
Construction of Forest Boundary Pillars,
approach roads etc. The scope of the scheme
 Environment and Forests 479

Strengthening of Wildlife Division Project Tiger

22.54. Two schemes have been grouped 22.58. Two schemes have been grouped
under this head namely: Control of Wildlife under Project Tiger namely: National Tiger
Crime [1986]; and Central Zoo Authority Conservation Authority [1973]; and Bio-diversity
(Including NZP). The objectives are to i) Conservation and Rural Livelihood
strengthen Central Wildlife organisation and the Improvement Project. The thrust of the
existing Regional Offices for Wildlife schemes are i) to ensure maintenance of a
Preservation & opening new Regional offices viable population of Tigers in India for scientific,
for better enforcement of Wildlife (Protection) economic, aesthetic, cultural and ecological
Act, 1972 & CITES); ii) to confer Rajiv Gandhi & values and to preserve for all times, areas of
Amrita Devi Bishoni Awards and Dr. Salim Ali & biological importance as a national heritage for
Dr. Kailash Sankhla National Fellowships; iii) to the benefit, education and enjoyment of the
improve the quality of zoo animals; iv) people; ii) Financial support to tiger States for
coordinate research in captivity breeding; and wild tiger conservation in designated tiger
v) education programmes for the purpose of reserves; iii) Funding support to States for
zoos (Improve zoos in the country and Maintain relocation of villages/ settlement in the
rescue centres). The scheme on Control of core/critical tiger habitats of tiger reserves,
Wildlife crime has been revised and a bureau based on reserve-specific proposals; iv)
has been set up to deal in crimes related to Biodiversity Conservation and Rural Livelihood
wildlife. Improvement through testing; and v)
establishing decentralised participatory
Recommendations approaches across a range of globally and
nationally important landscapes under different
22.55. The allocation to the Central Zoo management regimes. Expenditure so far is
Authority scheme and the Wildlife Crime Rs. 1.57 crore.
Control Bureau needs to be enhanced.
Recommendations
Integrated Development of Wild Life
Habitats (IDWH) 22.59. Special Tiger Protection Force (STPF)
already established in critical Tiger Reserves
22.56. The IDWH scheme assists States and should be augmented. Further, the identified
Union Territories in i) development of National core areas of Tiger Reserves should be made
Parks & Sanctuaries; ii) Facilitating and inviolate by village relocation besides providing
encouraging expansion of protected areas restorative buffer zones and corridors. The
network; iii) creation of infrastructural protection Tiger Project needs to be critically evaluated as
and management of Protected Areas (PAs); iv) currently the major component of the scheme is
provides financial assistance for Eco-dev, relocation of villagers/settlements.
training, capacity building & research studies;
and v) Relocation of villages and settlement of Project Elephant-
rights for better enforcement of Wildlife
(Protection) Act, 1972. Support is also provided 22.60. Begun in 1991, the objective of this
for the recovery programme of critically centrally sponsored scheme is to assist the
endangered species. States with free ranging populations of wild
elephants to ensure long term survival of
Recommendations identified viable populations of elephants in
their natural habitats. This is done through
22.57. Tourism infrastructure and Wildlife funding 26 notified and six proposed elephant
tourism need to be planned based on carrying reserves in 16 states. This caters to only wild
capacity. elephants. The outlay for the scheme in the first
three years of the Eleventh Plan was Rs 58.50
crore.
480 Mid-Term Appraisal of the Eleventh Five Year Plan

Recommendations Recommendations

22.61. Elephant corridors are to be established 22.65. Grass land and other ecologically
wherever feasible. important ecosystems needs to be conserved.
Cause for degradation of forests need to be
National Afforestation & Eco-Development ascertained before afforesting a particular area.
Board (NAEB) Overlap of support by other schemes may be
avoided like the IDWH, etc.
22.62. Two schemes grouped under this head
are: NAEB and Eco Task Force. The Board Afforestation through PRIs (Panchayat/
Supports implementation of schemes relating to Gram Van Yojna)
i) afforestation and eco-development, including
monitoring and evaluation; ii) Communication 22.66. The thrust of the scheme is i)
and Awareness generation; iii) Supports Afforestation on various categories of vacant
projects approved under the Grants -in-Aid public land involving PRIs; and iIi) Approval of
Scheme for Greening India; iv) Increase new project areas for natural regeneration,
forest/tree cover in inaccessible areas, like artificial regeneration, and planting of perennial
desert, terrains, mountain slopes through herbs and shrubs. The Scheme is to be
Regular/Retired Territorial Army personnel; and launched during 2009-2010. Valuable time has
v) continuation of six of existing ETF battalions been lost in firming up the project.
in the State of Jammu & Kashmir, Uttarakhand,
Rajasthan and Assam. Recommendations

Recommendations 22.67. The State Forest Departments should

identify land for afforestation including
22.63. The National Mission for a Green India wastelands that would be available for
needs to be finalised and launched. The Eco increasing Tree and Forest cover.
Task Force scheme could be reviewed by the
MoEF. Animal Welfare

National Afforestation Programme 22.68. The objective of this scheme is to i)

promote welfare of animals through funding of
22.64. The objectives of the programme are to Shelter homes , ambulance vans and animal
i) increase forest and tree cover; and ii) support birth control; and ii) Training Programmes. etc.
Forest Development Agencies (FDAs) for
Natural and Artificial regeneration and perennial Recommendations
herbs and shrubs in existing FDAs. Target for
the Eleventh Plan is to cover 1,00,000 (ha) and 22.69. Looking at the increase in stray dogs,
operationalise 3,000 new Joint Forest monkeys, etc, in urban areas, the strategy of
Management Councils (JFMCs) (No.) in birth control needs a relook.
existing FDAs. The expenditure so far is Rs 127
crore only. The scheme is being revised to Institutional Mechanism
constitute and fund State Forest Development
Agencies (SFDA’s). A one-time fixed grant of 22.70. The current institutional mechanism
Rs. 2 lakh to JFMCs or Rs. 20 lakh to FDA is to requires restructuring and augmentation in
be given. As on 31 March, 2009, 795 FDA’s terms of both infrastructure and human
were operationalised at a total project cost of resources. In order to strengthen Institutional
Rs. 2675.26 crore to treat a total area of 1.58 mechanism critical for implementation of the
MHa. Rehabilitation of Shifting Cultivation policies, legislations and Conservation of
(Jhum) was given specific focus under the Resources in the area of Environment, Forest
program and 34 Jhum projects were and Wildlife., MoEF has created a National
sanctioned, 33 in NE States and one in Orissa. Environment Protection Authority. In this
regard the following is suggested.
 Environment and Forests 481

Recommendations terms of manpower and resources allocation.

22.71. Amend the Constitution to include International Agreements and Conventions

Environment in the Concurrent List.
22.74 India has signed and ratified a number of
22.72. There is an urgent need to augment key multilateral agreements on environment
scientific/technical manpower and make issues in recognition of the trans-boundary
available resources for statutory monitoring nature of several environmental problems,
institutions like the CPCB at the Centre and the impact on chemical industry and trade and is
SPCBs in the States. committed to complying with the obligations
under the Conventions. Efforts to network and
22.73. Survey and R&D institutions like BSI & enable environmental cooperation by leading in
ZSI need to be adequately strengthened in
Table -22.4
Allocation by the States for Ecology and Environment Sector (Rs in Cr)
S. State/Scheme 11th Plan AP 07-08 AP- 08-09 AP
No. 07-12 Actual Exp. Outlay Anti.Exp. 09-10 Outlay
Projected
Outlay
1 Andhra Pradesh - - - - -
2 Arunachal Pradesh 1.00 0.12 0.2 0.2 0.4
3 Assam 4.65 0.08 0.5 0.5 1.00
4 Bihar - - - - 0.28
5 Chhattisgarh 9.63 0.73 - - 1.00
6 Goa 9.75 2.27 3.06 3.06 3.36
7 Gujarat - 3.09 5.00 5.00 10.00
8 Haryana 6.07 1.66 1.50 1.50 1.55
9 Himachal Pradesh 0.47 0.13 - - -
10 J&K 5.94 - 1.06 1.06 1.66
11 Jharkhand - - 10.00 - 10.00
12 Karnataka 59.00 6.50 10.96 10.96 10.96
13 Kerala 22.39 0.32 10.00 10.00 10.15
14 Madhya Pradesh 30.62 14.70 14.09 11.07 11.98
15 Maharashtra - - - - -
16 Manipur 41.76 3.56 4.85 5.35 6.50
17 Meghalaya 7.00 0.72 0.95 0.95 1.25
18 Mizoram 0.40 0.04 0.04 0.04 0.05
19 Nagaland 3.00 0.07 - - -
20 Orissa 303.38 6.50 11.43 11.43 10.43
21 Punjab 18.81 4.81 15.30 15.30 10.45
22 Rajasthan 4.50 0.47 0.21 0.26 0.20
23 Sikkim 15.20 0.56 0.55 0.55 1.70
24 Tamil Nadu 120.79 2.95 10.32 9.01 1.72
25 Tripura 5.99 1.26 0.84 0.84 1.09
26 Uttar Pradesh 212.84 47.72 1.91 44.55 11.47
27 Uttaranchal - - - - -
28 West Bengal 70.00 8.60 13.00 13.00 20.00
29 A&N Islands - - - - -
30 Chandigarh 8.40 3.02 2.40 2.40 2.42
31 D&N Haveli 0.15 - - - -
32 Daman and Diu 1.80 0.02 0.5 0.5 0.28
33 Delhi 44.25 16.57 15.90 10.02 15.00
34 Lakshadweep 9.39 0.55 0.79 0.72 1.67
35 Pondicherry 4.31 0.55 0.55 0.55 0.75
Total 1021.49 127.57 135.91 158.82 147.32
482 Mid-Term Appraisal of the Eleventh Five Year Plan

Box - 22.2
Actions required for compliance of some International Agreements

1. The Basel Convention

a) An action plan for efficient, cost effective recycling and disposal strategy for electrical and
electronic waste be drawn up.
b) Recommendations in the Expert Committee Report on ship breaking be implemented.
c) Basel ban and Basel Protocol be studied for ratification.
d) Amendments to exclude recyclables from the Hazardous Waste (Management and Handling)
Rules, 1989, amended 2000, 2003.
2. The Rotterdam Convention (PIC)
a. Legislation or amendments to existing legislations to implement the provisions/ obligation of the
convention be notified.
b. A study to document status of 41 chemicals now covered be conducted.
c. A National Action Plan for implementation be drawn up.
3. The Stockholm Convention (POPs)
a. National Implementation Plan preparation be completed by 2008.
b. Investment projects be drawn up in parallel.
c. Status of new POPs, POP’s covered under OSPAR & LRTAP in the country be prepared.
4. SAICM
1. A work plan prioritising the activities in the Global Plan of Action {GPA} for the country be drawn up.
2. An Inter-ministerial Coordination Committee be established to ensure timely action and
implementation.
5. Biosafety
a) Ensure the conservation of biodiversity and human health when dealing with Living Modified
Organisms (LMO’s) in trans-boundary movement in a manner consistent with the Bio Safety
Protocol.
b) Review the regulatory processes for LMOs so that all relevant scientific knowledge and international
regimes are taken into account, and ecological, health, and economic concerns are adequately
addressed.

regional programmes and negotiations are only enunciated in the National Action Plan for
possible with enhancement of our capacity to Climate Change by 2010.
comply with our commitments and adequate
flow of resources. Most of the MEA’s and MA’s Performance and constraints of States
require that a national regime be put in place to
ensure compliance. of the obligations under State Plan Schemes
the Conventions. Requirement of annual
reporting on the progress of implementation at 22.76. In the absence of a separate
the national level and payment of contributions department for Environment, the states often
have also been laid down. A number of spend their meagre outlays on environment
measures are required to put in place to enable mainly on awareness creation. Table 22.4 &
compliance of our commitments. Action 22.5 provides a comparative picture of state
required for a few international Agreements are outlays and expenditure for Environment and
indicated in Text box- 22.2. Ecology & Forestry respectively in the Eleventh
Plan.
Recommendation
22.77. While a sum of Rs 2700 crore and Rs
22.75. States should prepare State Level 5034 crore are the respective outlays for the
Action Plans consistent with strategy Environment and Forestry sector under CSS of
the MoEF the corresponding total outlays of all
 Environment and Forests 483

Table 22.5
Funds Released by the States during the Eleventh Plan for Forest and wildlife Sector
(Rs in Cr)
S. State/Scheme 11th Plan AP 07-08 AP 08-09 AP 09-10
No. Proj. Actual Exp. Outlay Anti. Exp. Outlay
Outlay
1 Andhra Pradesh *250.00 48.99 45.83 - -
2 Arunachal Pradesh 229.19 32.46 28.55 28.55 33.25
3 Assam 93.10 13.65 34.40 34.40 55.63
4 Bihar 179.37 33.55 38.15 38.15 45.22
5 Chhattisgarh 2827.71 154.23 313.90 237.19 291.05
6 Goa 45.83 10.49 7.56 15.15 13.43
7 Gujarat 185.00 16.50 32.00 32.00 32.00
8 Haryana 759.10 98.65 113.37 113.37 97.20
9 Himachal Pradesh 694.06 103.02 111.25 111.25 116.88
10 J&K 117.80 17.75 20.00 - -
11 Jharkhand 612.78 94.44 105.00 103.00 11.49
12 Karnataka 691.04 136.60 198.33 198.33 192.43
13 Kerala 318.00 36.20 48.00 48.00 49.72
14 Madhya Pradesh 1205.00 273.60 277.73 255.21 241.05
15 Maharashtra *250.00 42.04 64.77 - -
16 Manipur 53.28 12.18 13.20 13.20 14.50
17 Meghalaya 160.00 23.78 28.00 28.00 50.25
18 Mizoram 66.73 12.97 11.35 11.35 12.49
19 Nagaland 67.62 17.80 22.31 22.31 14.92
20 Orissa 527.55 86.71 154.81 154.81 162.00
21 Punjab 143.38 29.60 53.58 53.58 40.70
22 Rajasthan 197.00 54.12 48.00 65.57 84.30
23 Sikkim 82.00 14.70 16.00 16.00 18.24
24 Tamil Nadu 1285.00 153.63 171.92 163.93 108.78
25 Tripura 75.45 20.97 39.45 39.45 81.21
26 Uttar Pradesh 2268.26 227.61 300.74 290.74 305.74
27 Uttaranchal 2081.21 130.09 161.85 122.58 125.00
28 West Bengal 220.00 28.88 53.90 53.90 106.49
29 A&N Islands 82.41 16.52 16.94 20.96 24.74
30 Chandigarh 114.49 7.30 11.45 11.45 56.01
31 D&N Haveli 110.36 - - - -
32 Daman and Diu 8.68 0.59 0.6 0.6 1.75
33 Delhi 60.00 11.85 10.00 10.60 9.00
34 Lakshadweep 1.15 0 0.4 0.5 0.7
35 Pondicherry 20.47 2.42 1.42 1.42 2.50
Total 15583.02 1963.89 2554.76 2295.55 2398.67
*Estimated Outlays

the states and Union Territories for these is very little emphasis given by the States to
sectors are Rs 1022 crore and Rs 15,583.02 Environment Protection. A separate
crore respectively. department of environment would enable the
states to implement and protect their
Institutions environment and create awareness.
Department of Environment
22.78. As can be seen from Table 22.6 only
nine States and one Union Territory have
independent Department of Environment. There
484 Mid-Term Appraisal of the Eleventh Five Year Plan

Department of Forests • Provide financial grants as per the Water and

Air Acts (nominal grants).
22.79. Most of the States and UTs have a
separate department for forest conservation • Grant permission and sanction staff as
headed by PCCF. The budgetary provision by proposed by the SPCBs. State
States for forestry on an average is 1.28 per Governments may lift the Ban on
cent and the revenue is 4 per cent of the annual recruitment particularly for Scientific/
budget. In order to protect and conserve the Technical staff to be approved by SPCBs.
forestry resource and achieve the target set • Provide land/space for setting up of office and
under the Eleventh plan, a minimum of the laboratory at either free of cost or at
revenue generated should be ploughed into the nominal rates.
sector.
• Review performance of SPCB at least once a
Table- 22.6
States / UTs with independent department for Environment
S.No State/UT Name of Dept. Existence
1 Delhi Environment Department YES
2 Haryana Department of Environment YES
3 Kerala Department of Environment YES
4 Maharashtra Department of Environment YES
5 Manipur Department of Ecology and Environment YES
6 Rajasthan Department of Environment YES
7 Tamilnadu Department of Environment YES
8 Uttar Pradesh Department of Environment YES
9 West Bengal Department of Environment YES
10 Chandigarh Department of Environment YES

State Pollution Control Board (SPCB) year under appropriate administrative level
and directing the Board to take-up activities
22.80. The State Pollution Control Boards and on specific problems.
Pollution Control Committees (PCCs) are
• Provide suitable conditions for SPCB to work
primarily responsible for implementation of the
within the State. There should be interaction
Water (Prevention and Control of Pollution) Act,
between the SPCB and the other
1974 and the Air (Prevention and Control of
departments of the state. The Board should
Pollution) Act, 1981. Additional responsibilities
be included and involved in decision making
have been entrusted to SPCBs and PCCs for
processes in the government departments,
implementation of the Environment (Protection)
Act, 1986 and Rules framed there under, which • Expeditiously notifying provisions as per
number 17. Although SPCBs forward Budgetary requirements under the Water and Air Acts.
proposals to State Governments, only eight
States including five of the North eastern States • Incorporate views/advice of SPCB in state
and one Union Territory get ‘Budgetary support’ policies on various subjects like;
from the State Governments. environment, industrialisation, urban,
transport, etc.
22.81. Based on a review of the institutional
infrastructure and human resource availability Recommendations
of SPCBs following recommendations are
reiterated for the consideration of State 22.82. Integrate in the administrative setup and
Governments functioning of the State Pollution Control
Boards and Provide budgetary support and
reflect the working of the SPCB’s in the Annual
Plan.
 Environment and Forests 485

Sectoral Linkages and Constraints Area (WDPSCA) (MoA/ MoRD), iv) Restoration
of Ponds (MoWR) and Municipal Solid Waste
22.83. Many of the programmes of the MoEF Management (MoUD)
have to be implemented by sectoral Ministries.
They are also required to ensure that 22.86. A CSS of the Ministry of Water
environmental concerns are effectively Resources on a 75:25 sharing basis between
addressed. The 47 Ministries and two Central and State for Repair, Renovation and
Departments of the GOI need to take into Restoration (RRR) of Water Bodies was
account and adequately incorporate launched in 2005 at an estimated cost of Rs.
environmental concerns, including policies and 300 crore. A World Bank project for, Tamil
legislations of the MOEF in their functioning. Nadu for Rs. 2182 crore to restore 5763 water
bodies having a CCA of 4 lakh ha, for Andhra
22.84. The four monitorable targets of the Pradesh for Rs. 835 crore for restoration of
Eleventh Plan require that the Ministry of 3000 water bodies with a CCA of 2.5 lakh ha,
Agriculture (MoA), Ministry of Water Resource and Karanataka for Rs. 259 crore to restore
(MoWR), Ministry of Urban Development 1225 water bodies with a CCA of 0.52 lakh ha
MoUD), Ministry of Power (MoP) and Ministry of is to be launched. This scheme compliments
Rural Development (MoRD) collaborate, the Wetland and the National Lake
supplement and enable achieving the targets by Conservation Plan of the MOEF.
the MOEF.
Recommendations
22.85. Many Sectoral Ministries have
programmes and schemes that compliment the 22.87. Ministries and Departments which are
efforts of the MOEF. Following are some such required to harmonise their policies and
major programmes i) Integrated Wasteland legislation with those of the Ministry of
Development, {Hariyali} (MoRD), ii) Soil Environment and Forests be mandated to
Conservation (MoA), iii) Watershed specify progress with respect to harmonization
Development Project for Shifting Cultivation of policies and legislations in the environment

Table – 22.7
Additional Requirement for the Eleventh Plan
(Rs. in Crore)
Sl. Additional Requirement
No. Name of the Scheme Total
09-10 10-11 11-12
1 Grants in aid to Forestry & Wildlife Insti. 25.00 80.00 95.00 200.00
2 HSMD - 50.00 50.00 100.00
3 Nat. Coastal Management Programme - 50.00 50.00 100.00
4 Capacity Building In Forestry Sector 12.00 40.00 48.00 100.00
5 NMNH 50.00 51.00 101.00
6 IC Activities 30.53 6.00 0.00 36.53
7 Botanical Survey of India 1.73 16.00 17.27 35.00
8 Research & Development 7.69 12.00 13.00 32.69
9 GBPIHED 0.90 12.00 13.68 26.58
10 Zoological Survey of India 4.44 7.00 8.56 20.00
11 CPCB 14.50 17.00 18.00 49.50
12 CETP 1.00 9.00 10.00 20.00
13 NGBRA - 500.00 500.00 1,000.00
14 BGIR - 15.00 15.00 30.00
15 New Building for MoEF - 40.00 35.00 75.00
16 Project Tiger* 250.00 500.00 750.00 1,500.00
17 E- Governance 4.00 30.00 32.00 66.00
Grand Total 351.79 1,434.00 1,706.51 3,492.30
486 Mid-Term Appraisal of the Eleventh Five Year Plan

sector including expenditure incurred in their among their various components may also be
Annual Reports. Other Ministries should be warrantsed.
asked to draw up a plan of action for
implementation of the requirements of the 22.91. The Ministry of Environment & Forests
environment and forestry sectors including has cleared its target of doubling the area to be
specifying the said activities in the Rules of taken up for eco-restoration and afforestation in
business. India to 20 MHa over the next 10 years using
this new approach through participatory,
22.88. Considering the outlay of Rs 300 Cr for decentralised implementation. This must be
the Repair, Renovation and Restoration (RRR) supported for the remaining period of the
by the MoWR in association with MoA, it is eleventh Plan, and based on a comprehensive

Box 22.3
Environmental Performance Index (PC-EPI).

The Planning Commission is in the process of formulating an Environmental Performance Index

(PC-EPI) and devolve funds to the States based on EPI ranking. The approach is to continue to
focus on Pollution Abatement, Promotion of adherence to environmental standards, natural
resource conservation and 3 R’s (Reuse, Recycle, Recover).

strongly recommended that MoEF should assessment of the progress made, duly
prioritise its activities in consultation with these incorporated into the approach to the Twelfth
Ministries and merge its scheme on Wetland Plan.
and Lakes.
22.92. Monitoring of Persistent Organic
22.89. In order to increase Forest and Tree Pollutants (POPs), Volatile Organic Compounds
cover, a credible wasteland map, including (VOCs) and Hazardous Air Pollutants (HAPs),
ownership details be prepared (updated) during may be initiated at selected locations (class 1
the remaining two years of the Eleventh Plan. cities) to develop a protocol and to assess the
This will facilitate setting up of realistic Forest requirements of infrastructure. The NAAQS
and Tree cover target during the Twelfth Plan. needs to be amended during the current
financial year
22.90. Scheme-wise progress of expenditure
in the first three years and availability of 22.93. A Sewage treatment capacity of 7,650
balances for the remaining two years of the MLD exists. Considering the resource allocated,
Eleventh Plan are given in Table 22.7. The on going works in the States and the normal
table also provides the current level of annual implementation period for the sewerage works,
outlays to infer adequacy of allocated funds for creation of sewage treatment capacity of 1000
the remaining two years of the Plan. It is clear MLD be targeted for the remaining two years of
from the Table that balances remaining from the Eleventh Plan under NRCP. A substantive
approved outlays are inadequate for some of sewage treatment capacity should also be
the schemes like Research & development for targeted for creation under JNNURM keeping in
conservation & development, Environmental view the sewage generation. Given the large
information, education & awareness, National gap between sewage generation and treatment
Coastal Management Programme, Grants-in- capacity available, substantial increase in
aid to forestry & WL institutions, Capacity allocation is required to be made from 2010 -11
building in forestry sector, Project Tiger and for the enhanced treatment capacity results
project Elephant. Suitable provision would also start accruing in the Twelfth Plan period.
need to be made for initiatives like the NGRBA.
Given the progress of expenditure under 22.94. Steps should be taken by the Ministry of
different components of thematic schemes, mid Environment and Forests in coordination with
course correction within thematic schemes the Ministry of Power to achieve the goals for
 Environment and Forests 487

enhanced energy efficiency through the 22.101. Regional Environmental Impact

measures and mechanisms envisaged/ Assessments (REIAs) /carrying capacity studies
approved in the National mission on Enhanced may be undertaken in specific areas
Energy Efficiency as a part of the National experiencing major developmental activities
Action Plan on Climate Change. causing pollution. Monitoring system for
environmental clearances be strengthened.
22.95. In addition to the four monitorable
targets set out in the Eleventh Plan, it is 22.102. The proposals to set up a National
recommended that ‘‘Soil” the third component environment Protection Authority and to
of the Environment receive attention especially strengthen the organisational capacity of the
soil contamination and remediation of critically CPCB and the SPCBs must be pursued in a
polluted areas. proper manner.

22.96. A number of Areas in the Sectors still 22.103. The Scheme Industrial Pollution
requires legislative support viz., Institutional Abatement through Preventive Strategies &
Mechanism, Classification, Labeling & Clean Technology could be merged.
Packaging of hazardous chemicals, recycling &
reuse, Remediation including Bio-remediation, 22.104. 80 percent of the Water Cess collected
Ecological restoration, etc. by SPCB’s could be retained by them and 20
percent remitted to MoEF.
22.97. The Total Central Sector outlay for the
Eleventh Plan of the country is Rs. 10,96,860 22.105. The Water (Prevention and Control of
Cr (Constant Price) of which Rs 8,841 Pollution) Cess Act needs amendment in this
Cr/Rs.10,000 Cr (Constant/Current Price) is regard.
allocated for Environment, Forest and Wildlife
sectors. The current allocation for Environment 22.106. Studies in respect of water quality
and Forest Sector is 0.70 percent (0.91%) of including water quality modeling both in respect
the total central Sector outlay and in the States of surface and ground water should be shared
it varies between 0.021 percent - 1.78 percent among the concerned organization of Ministry
of the state outlay for Environment and 1.25 of Water Resources and MOEF such as Central
percent for Forestry & Wildlife. An allocation of Pollution Control Board, Central Water
at least five percent of the Annual, State and Commission, Central Ground Water Board and
Central sector outlay for Environment and National Institute of Hydrology. Laboratory,
Forestry sector separately needs to be ensured, Workshop, data base, library, entrepreneurial
preferably by the Twelfth Five Year Plan. guidance, waste exchange bank facilities for
recovery of energy and recycling of waste water
22.98. Bio-monitoring of rivers and lakes as a should form integral component of CETP. The
tool for water quality monitoring be adopted. Hazardous Substances Management Scheme
be redrafted after consultations with experts,
22.99. Enhanced outlays for CPCB of Rs the Scheme has too many components and
14.50 Cr for the current year and Rs. 34.50 Cr emphasis therefore is lacking. Considering that
for the next 2 years is recommended. The HSM Scheme has multiple components Viz.,
infrastructure for air and water monitoring Hazardous Chemicals, Hazardous Waste
established be networked with IMD facilities Management and Chemical Crisis Management
created. Availability of skilled manpower for emphasis therefore is lacking. Each component
laboratories needs to be ensured. of the HSM Scheme deserves to be a separate
scheme. Adequate laboratory facilities be
22.100. Action Plans be prepared and established along with Treatment Storage and
implemented based on critical analysis of the Disposal Facility (TSDF).
Source Apportionment studies under conclusion
in six cities. 22.107. Time lapse study of bio-diversity and
assessment & documentation of genetic
variability at population and species level needs
488 Mid-Term Appraisal of the Eleventh Five Year Plan

to be taken up on priority. ZSI and BSI to create 22.111. The NRCP scheme needs to be
data base of clients/research scholars/research revised. Financial and administrative capacities
institutions serviced. Thrust areas to be of local bodies in terms of operation and
identified and fellowships offered. Resource maintenance of facilities created be enhanced.
allocation for the activities needs to be The scheme on NLCP be merged with
enhanced. Projects supported under R&D be wetlands. It is noted that evaluation of
based on current needs. NRCP/NLCP by independent consultants has
been initiated. Quantifiable deliverables must
22.108. There is a need to re-look at the be identified and monitored for NRCP and
operation of the scheme and the regulatory NLCP.
framework drafted for wetlands. In the highly
fragile coastal areas, mangroves and selected 22.112. A Plan for utilization of the additional
halophytes to minimize coastal erosion be grant of Rs. 100 Cr for ICFRE needs to be
raised. finalised and launched.

22.109. The scheme on Centers of Excellences 22.113. The State of Forest Report (SFR) be
(CoE) needs to be revised in terms of financial published within a year of collection of data. To
support, new areas requiring emphasis and start with, the maps could be at the scale of
performance of existing CoEs. The concept of 1:10000.
chairs on specific areas also needs to be
dovetailed with the scheme on CoEs. A 22.114. The existing infrastructure for training

Box 22.4
Suggestions /Concerns

1. There should be synergy between conventional taxonomy and molecular taxonomy. For this
purpose, there is a need to strengthen BSI and ZSI.
2. Increasing habitations near Gangotri and Yamunotri is adding to the pollution of the sacred rivers.
3. Several eco-systems are affected due to biological invasion, but no R&D efforts appear to be in
place to tackle the menace.
4. With regard to the target of increasing energy efficiency by 20 per cent by 2016-17, there is a dire
need to have a sectoral approach involving all stakeholders-.
5. For capacity building purposes, it is necessary to educate school/college teachers as well as the
general public. Training of teachers in environmental awareness is not given sufficient emphasis at
present even though text books are available. To train the large number of about 5 million school
teachers in India requires gigantic efforts. In addition, a large number of college teachers also need
to be trained. MOEF should facilitate the training of teachers & development of resource material
on environmental issues in consultation with the States Union Territories to ensure that the
teachers are empowered to effectively teach Environmental Education in the class room.
6. Forest Survey of India (FSI) was created in 1981 to focus attention on sustainable development of
forest resources, but during recent years, the institute has been reduced to an agency to just
compile and publish the State of Forest Reports. There is a dire need to strengthen FSI in order to
make it function as per its original mandate given in 1981.
7. Study regarding sand mining and its sustainability in both rivers and large canals may be
undertaken.

rigorous review of CoEs and ENVIS centers is could be augmented and Forest and
necessary. All ENVIS centres be provided Environmental officers trained. Incorporate
access to the UGC’ INFONET. Conservation and sustainable utilization of
Forest Resources in the training curriculum of
22.110. Public Sector Units (PSUs) should be forest officials.
motivated to contribute CDM projects.
 Environment and Forests 489

22.115. MoEF should compile State wise 22.125. Amend the Constitution of India to
resources available through EAP for the include Environment, in the Concurrent List.
Integrated Forest Management Scheme Enable creation of a separate Department of
(IFMS). The State of Forests Report (SFR), Environment in the States.
2007 is required to be released immediately.
22.126. There is an urgent need to augment
22.116. The schemes National Coordinated scientific/technical manpower and make
Programme for Assessment of Non Timber available resources for the statutory monitoring
Forest Product resources and Certification institutions like the CPCB at the Centre and the
Programme for wood & non wood forest SPCBs in the States.
resources need to operationalized.
22.127. Survey and R&D institutions like BSI &
22.117. The allocation for the Central Zoo ZSI needs to be adequately strengthened in
Authority scheme and the Wildlife Crime terms of manpower and resources allocation.
Control Bureau needs to be enhanced. Apart from the above, the existing institutional
mechanism in the Environment sector needs to
22.118. Tourism infrastructure and Wildlife be strengthened.
tourism be planned based on carrying capacity.
22.128. States Prepare State Level Action
22.119. There is Reduction in the tiger Plans consistent with strategy enunciated in the
population. Special Tiger Protection Force National Action Plan for Climate Change by
(STPF) already established in critical Tiger 2010.
Reserves should be augmented. Further, the
identified core areas of Tiger Reserves should 22.129. Integrate in the administrative setup and
be made inviolate by village relocation besides functioning of the State Pollution Control
providing restorative in buffer and corridor. The Boards and Provide budgetary support and
Tiger Project needs to be critically evaluated as reflect the working of the SPCB’s in the Annual
currently the major component of the scheme is Plan.
relocation of villagers/settlements.
22.130. Ministries and Departments which are
22.120. Elephant corridors are to be required to harmonize their policies and
established wherever feasible. legislation with those of the Ministry of
Environment and Forests be mandated to
22.121. The Greening India Mission needs to specify in their Annual Reports, progress with
be strengthened and the Eco Task Force respect to harmonization of policies and in the
scheme could be reviewed by the MOEF. environment sector including expenditure
incurred. Other Ministries should be asked to
22.122. Grass land and other ecologically draw up a plan of action for implementation of
important ecosystems needs to be conserved. the requirements of the environment and
Cause for degradation be ascertained before forestry sectors including specifying the said
afforestation. Overlap of support by other activities in the Rules of business.
schemes be avoided like the IDWH, etc.
22.131. The four monitorable targets of the
22.123. The State Forest Departments should Eleventh Plan requires that the MOA. MoWR,
identify land for afforestation including MoUD, and MoRD collaborate, supplement and
wastelands available in the State to enable enable achieving the targets by MOEF.
achieving the National Target for afforestation
set of 33 per cent. 22.132. Considering the outlay of Rs 300 Cr for
the Repair, Renovation and Restoration (RRR)
22.124. Looking at the increase in stray dogs, by the MoWR in association with MoA, it is
monkeys, etc, in urban areas the strategy of strongly recommended that MOEF should
birth control needs a relook. prioritize its activities in consultation with these
490 Mid-Term Appraisal of the Eleventh Five Year Plan

Ministries and merger its scheme on Wetland 22.135. Economic benefits of Environmental
and Lakes. Management including ecological services and
Goods be Quantified.
22.133. In order for the country to achieve the
target of 33 percent Forest Cover and 22.136. The National Afforestation Program
recognizing that approximately 26 MHa outside (NAP) and National River Conservation
the forest area shall have to be identified for Program (NRCP) be considered as Flagship
afforestation, a credible wasteland map based Programmes of the country.
on satellite data at district level including
ownership details be prepared (updated) during 22.137. Indian Council of Environmental
this current financial year. Research (ICER) is considered essential and a
study be initiated to identify institutions under
22.134. A suitable methodology for constructing the CSIR, Ministry of Science and Technology,
an Environmental Performance Index (EPI), to viz., Department of Science and Technology,
assess environmental performance, needs to Department of Biotechnology, Department of
be evolved for allocation of resources to Earth Sciences, Department of Ocean
incentivise environmental performance. Development and the Ministry of Environment
and Forests which could form a part of the
Indian Council of Environmental Research.