One Year of UPA Government : Major Decisions and Initiatives - Planning

Additional GBS for NCMP Objectives

            An additional allocation of Rs. 12,000 crore as Gross Budgetary Support (GBS) has been made for the Annual Plan 2004-05 to meet the principal objectives of the National Common Minimum Programme (NCMP).  Of this, Rs. 7,275 crore is to be allocated to priority areas indicated in NCMP for the Central Ministries/ Departments for new/ restructured schemes and for enhancing the scope and coverage of existing schemes.  An amount of Rs. 4,725 crore has been provided as Central assistance to States/UTs for meeting the objectives of NCMP. Additional GBS for programmes and schemes of priority under NCMP objectives, viz. education, health, rural development and drinking water supply etc. have been identified and allocations to various Central Ministries/Departments as also the Central Assistance to the Plan of the States/UTs have since been regularised through supplementaries passed by Parliament.

While making Plan Allocations for 2005-06, adequate enhancement for all important NCMP programmes, including the seven sectors (“Saat Sutra“) identified by the Prime Minister, i.e. agriculture, water, education, health care, employment, urban renewal and infrastructure has been provided. Greater attention has been paid to the priority areas listed by the National Advisory Council, viz. SSA, Employment Guarantee Scheme (FFW-SGRY), Rural Health Mission, Mid Day Meal, ICDS/Supplementary Nutrition, and Road Network in the North Eastern Region.

Mid-Term Appraisal of X Plan

            The Planning Commission has undertaken the Mid-Term Appraisal of X Plan in consultation with the Ministries / Departments.  The draft Mid-Term Appraisal document was discussed in the Full Planning Commission meeting held on April 5, 2005.  Further action is underway on the basis of the decisions taken in the meeting.

Inter-Ministry Task Groups to pursue Cross Sectoral NCMP Areas

In pursuance of the decision taken by the Prime Minister for setting up Inter Ministry Task Groups (IMTGs) to consider action needed for those areas of NCMP, where the agenda is cross sectoral and requires action encompassing a number of Ministries/ Departments, Planning Commission constituted seven IMTGs on:

(i)                   Investment, Credit and Technical Support to promote self-employment in agriculture, horticulture, afforestation, dairying and agro-processing;

(ii)                 Comprehensive Medium-Term Strategy for Food and Nutritional Security;

(iii)                Development of Scheduled Castes and Scheduled Tribes on selected agenda items in NCMP;

(iv)                Redressing growing Regional Imbalances;

(v)                  Technological, Investment and Marketing Support for household and artisanal manufacturing;

(vi)                Integration of ongoing schemes to address water conservation as a Water Mission; and

(vii)               Efficient Utilization of Water Resources.

IMTGs   submitted   their   Draft Reports between November 2004 – January 2005.  After the final round of consultations with the Ministries involved in the Task Groups, the final version of six out of seven IMTG Reports have been sent to the Prime Minister’s Office.  The Draft Report of the seventh Task Group on Regional Imbalances which has become the basis of the Cabinet Note on “Backward Regions Grant Fund” will be submitted for Prime Minister’s approval shortly.

Foreign Trade and Investment

            As a result of trade promotion and trade facilitation efforts of the Government, export growth has strengthened.  Exports during April-February, 2004-05 valued at US$ 69.8 billion is 27 per cent higher than the level of US $ 55 billion during April-February, 2003-04.  Similarly, there has been an increase of over 36.3 per cent in imports in 2004-05, as compared to 2003-04.  There has also been considerable increase in foreign exchange reserves during the last one year and it was only because of this that the Union Finance Minister, while presenting the Budget for 2005-06 has proposed for setting up of a Special Purpose Vehicle (SPV) to finance infrastructure in specified sectors.  Some of the sectors that can benefit most from SPV are roads, ports, airports and tourism.

Promotion of Trade and Investment Opportunities in North East

            The Planning Commission has constituted a Task Force on Promotion of Trade and Investment Opportunities in the North Eastern Region under the chairmanship of Shri B.N Yugandhar, Member, Planning Commission, to critically examine issues affecting slow pace of growth in the region.  The report of the Task Force is under finalisation.

Inter-sectoral Issues on Tribal Development

            A Standing Committee on Inter-sectoral issues relating to Tribal Development has been set up under the chairmanship of Dr. B.L. Mungekar, Member, Planning Commission, to look into various issues, problems and development strategy of tribals in the country.

Assessment of Financial Resources of States

The Annual Plan for 2005-06 has been finalised at the Deputy Chairman – Chief Ministers level meetings for all States and UTs except for the State of Haryana. The Annual Plan for 2005-06 of Haryana has not been finalised as Deputy Chairman – Chief Minister level meeting has not been held.

Backward Regions Grant Fund

The Union Finance Minister had announced, in his Budget Speech for 2005-06, the establishment of a Backward Regions Grant Fund for which an allocation of Rs. 5,000 crore has been made in the Annual Plan 2005-06.  Consequent upon the establishment of this Fund, the existing Rashtriya Sam Vikas Yojana (RSVY), envisaged to end in 2006-07, will be wound up with suitable transition arrangements that will protect every district now covered under RSVY.  The guidelines to operationalise the Fund are being evolved. 

Committee on Infrastructure

A Committee on Infrastructure, under the chairmanship of the Prime Minister, has been set up on August 31, 2004 with Planning Commission as its executive arm.  The objectives of the Committee are: (i) initiating policies that ensure time-bound creation of world class infrastructure delivering services matching international standards; (ii) developing structures that maximise the role of public-private partnership in the field of infrastructure; and (iii) monitoring progress of key infrastructure projects to ensure that established targets are realised. The process of consultations with the concerned Ministries/ Departments and other experts regarding various issues emerging from the Terms of References (TORs) of the Committee has been initiated.   The Committee on Infrastructure has so far considered Civil Aviation and National Highway Sectors.  A number of decisions have been taken for the development of these sectors.  These include formulation of developmental programmes, strengthening of institutional capacity and creation of facilitating environment for implementing project through public-private partnership

National Committee on Rural Infrastructure

            Along the lines of the Committee of Infrastructure, a National Committee on Rural Infrastructure (NCRI),  under the chairmanship of Prime Minister with Deputy Chairman Planning Commission as its Member-Convener, has also been constituted recently. The Committee will initiate policies to ensure time bound provision of quality infrastructure in rural areas, including roads, power, irrigation, water supply, housing and telecommunications. NCRI will also identify innovative financing arrangements pooling Central, State and private funds for projects in these areas.

Intensive Dairy Development Project (IDDP)

The Cabinet Committee on Economic Affairs approved a Centrally Sponsored Scheme ‘Intensive Dairy Development Programme (IDDP) on March 4, 2005. The major objectives of the scheme are (i) to ensure that rural producers get remunerative price of milk in time through District Milk Producers Cooperative Milk Unions established on the ‘AMUL’ pattern all over the country and (ii) to supply hygienic wholesome milk to the consumers. In the year 2004-05, nine States (viz. Mizoram, Nagaland, Assam, Tamil Nadu, Himachal Pradesh, Rajasthan, Kerala, Uttaranchal and West Bengal) received assistance for both strengthening and expansion of dairying activities like procurement and processing of milk.  Further, 15 States (Andhra Pradesh, Assam, Bihar, Haryana, Himachal Pradesh, Karnataka, Maharashtra, Mizoram, Nagaland, Orissa, Punjab, Rajasthan, Sikkim, Tamil Nadu and Uttar Pradesh) had been assisted to create infrastructure for production of clean and hygienic milk in the rural areas.

Coastal Aquaculture Authority Bill

Considering the need for legislation to regulate aquaculture and shrimp farming activities in coastal areas, in accordance with the Supreme Court judgment of December 1996, the Coastal Aquaculture Authority Bill, 2004 was introduced in the Rajya Sabha on December  20, 2004.  The objective of the Bill is to regulate shrimp farming activities in coastal areas in eco-friendly manner without adversely affecting the coastal environment, which would support the livelihood of the coastal fish farmers as well as boost exports and earn foreign exchange of a substantial quantum and value. 

Comprehensive Marine Fishing Policy

Considering the need for integrated development of marine fisheries, a Comprehensive Marine Fishing Policy was formulated by the Government in November 2004.  This policy encompasses all the activities of fishing within the Exclusive Economic Zone (EEZ) of the country including post harvest operations, resource management, fishermen welfare, etc. The main objectives of this policy are to augment marine fish production to an optimum level, to ensure socio-economic security of the artisanal fishermen, whose livelihood solely depends on fishing and to ensure sustainable development of marine fisheries with a due concern for ecological integrity and bio diversity.  

Elementary Education and Literacy

                        The commitment of the UPA Government to universalisation of access to basic quality education is reflected in substantial enhancement of the allocation of funds for elementary education from Rs. 6000 crore in  2004-05 (BE) to Rs. 9232 crore including CMP additionality of Rs. 1232 crore in the State sector for Mid-day Meal Scheme during Annual Plan 2004-05.  For the year 2005-06, it has been further increased to Rs. 12532 crore in BE 2005-06.  The allocation for Sarva Shiksha Abhiyan (SSA) has been increased from Rs. 3057.08 crore in 2004-05 (BE) to Rs. 7800 crore in 2005-06, an increase of 155 per cent.  Similarly, for Mid-day Meal Scheme (MDMS), the allocation has been almost doubled from Rs. 1675 crore in 2004-05 to Rs. 3345.26 crore in 2005-06.

            The UPA Government has levied 2 per cent Education Cess for additional financing for basic quality education.  A Prarambhik Shiksha Kosh, a non lapsable fund for funding elementary education is being established and proceeds of the education cess will go into this fund.

            SSA addresses the needs about 210 million children in 11 lakh habitations through 8.84 lakh primary and upper primary schools and non-formal education centres.  The UPA Government is focused on devising strategies for enrolling the remaining 8.1 million out-of-school children and mainstreaming 1.24 crore children already in non formal education streams.  Delays to start of SSA made it necessary for X Plan target of getting all children in school by 2003 to be extended to 2005.

MDMS has been revised and universalised covering about 11 crore children at the primary level from September 1, 2004.  In addition to providing free foodgrains to States, the UPA Government has also provided the cost of conversion of foodgrains into cooked meal @ Re 1 per day per child for 200 days in a year.   It has also enhanced the transport subsidy from Rs. 50 per quintal to Rs. 75 per quintal for all the States and UTs and to Rs. 100 per quintal for Special Category States.  Mid-Day Meals are supplied to drought affected children in summer vacation also.  The scheme has positive impact on increase in enrolment, attendance, retention in schools and also improved the nutritional status of the children particularly belonging to weaker sections.

National Food-for-Work Programme

In furtherance of NCMP, the National Food-for-Work Programme is being implemented in 150 most backward districts of the country from November 14, 2004. The objective of the programme is to provide additional resources to the most backward districts of the country so that generation of supplementary wage employment and provision of food security through creation of need based economic, social and community assets in these districts is further intensified. Food grains are provided to the States free of cost. Works are taken up under the programme in accordance with the Five Year Perspective Plan. The Collector is responsible for preparation of the Perspective Plan and programme implementation.

National Rural Employment Guarantee Bill

The National Rural Employment Guarantee Bill has been tabled in Parliament on December 21, 2004. The Bill provides that the State Governments shall, in the rural areas, provide to every poor household, whose adult members volunteer to do unskilled manual work, 100 days of such work in a financial year. It has been proposed that in order to make the programme result oriented the scheme should be implemented in phases and accordingly, in the first phase, the proposed Legislation would be implemented in 150 most backward districts of the country, where the National Food-for-Work Programme is already under implementation. Based on the experience of the first phase, the proposed Legislation would be implemented in other districts.

National Minorities Development and Finance Corporation

            An additional allocation of Rs. 50 crore has been made for the National Minorities Development and Finance Corporation increasing the allocation for the Annual Plan 2004-05 to Rs. 71.29 crore for the educational and economic development of the minorities. 

Rationalization /Transfer of Centrally Sponsored Schemes

The Planning Commission has recently undertaken an exercise regarding rationalisation / review of the ongoing Centrally Sponsored Schemes (CSS).  There are 207 CSS in operation in 2004-05 as per available information, which involved central budgetary support of about Rs. 41,000 crore (BE 2004-05).  A number of CSS have been identified for merger / reclassification as Central Scheme / discontinuance / transfer to States, which has been communicated to the Ministries / Departments by Planning Commission. 

Power and Energy

An Expert Committee to formulate Energy Policy under the chairmanship of Dr. Kirit S. Parikh, Member (Energy), Planning Commission, has been constituted on August 12, 2004.  The report of the Committee is under finalisation.

Water Resources

      The following initiatives have been taken by the Planning Commission in this sector: -

i)                     The scheme to repair, renovate and restore all the water bodies that are directly linked to agriculture has been launched as a pilot project in 25 States with a provision of Rs. 300 crore.

ii)                   A nationwide water harvesting scheme for SC and ST farmers has been announced.  The scheme will cover one lakh irrigation units and will be financed by NABARD loan and Government of India subsidy in the ratio of 50:50.

iii)                  A scheme costing Rs. 150 crore for critical anti-erosion works for Brahmaputra-Barak basin has been approved in the State sector with the Central assistance in the form of 90:10.  The scheme will benefit nine States falling in the Brahmaputra-Barak basin.

Housing and Urban Development

To fulfill NCMP objectives, following initiatives are underway:

National Urban Renewal Mission (NURM) would take care of all urban infrastructure projects, including water supply, sanitation, drainage, sewage, solid waste management, roads, street lighting, urban transport and other civic amenities in selected 60 cities.  The Mission would be reforms driven, and would incorporate fast track, planned development of identified cities with focus on efficiency in urban infrastructure / services delivery mechanism, community participation and accountability of ULBs towards citizen.   The Ministry of Urban Development is in the process of obtaining Cabinet approval for the Mission.

Urban Infrastructure Development Scheme (UIDS) would be implemented also in the State Sector after merging Integrated Development of Small and Medium Towns (IDSMT), Mega City, Accelerated Urban Water Supply Programme (AUWSP) and Urban Reform Incentive Fund (URIF) with focus on urban reforms.  This scheme would take care of all urban infrastructure projects, including water supply, sanitation, drainage, sewage, solid waste management, roads, street lighting, urban transport and other civic amenities in cities other than those selected under the Mission.

Integrated Housing and Slum Development Programme (IHSDP) which would also be implemented in the State Sector with focus on housing for the poor and improvement of basic services for the slum-dwellers.

Jute Technology Mission

The Planning Commission has recently given “in-principle” approval to the proposal for executing the Jute Technology Mission (JTM) during the period 2003-04 to 2008-09 with an overall outlay of Rs. 458.34 crore.  This is one of the important components of NCMP of UPA Government.  The main objectives of JTM include improving yield and quality of jute fibre; to strengthen existing infrastructure for development and supply of quality seeds; improvement of quality of fibre through better methods of retting and extraction technologies; to increase the supply of quality raw material to the jute industry at reasonable prices and developing efficient market linkage for raw jute; modernising, technologically upgrading, improving productivity; diversifying and developing human resource for the jute industry; developing and commercialising innovative technology for diversified use of jute and allied fibres. The JTM will be operationalised through the four Mini Missions.

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RK:LV

PIB  SF-35 (15.5.2005)

(Release ID :9277)

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