Annual Report 2005-06

ANNUAL REPORT2005-06

Government of India

Planning Commission

New Delhi

Website : www.planningcommission.nic.in

CONTENTS

Pages

Chapter 1 Role, Composition and Functions ...... ...... ...... .... 1

Chapter 2 Economy and the Plan: An Overview ...... ...... ...... .... 5

Chapter 3 The Plan ...... ...... ...... .... 9

Chapter 4 Major Activities in the Planning Commission ...... ...... .... 16

4.1 Agriculture Division ...... ...... ...... .... 16

4.2 Backward Classes and Tribal Development Division ...... ...... .... 19

4.3 Communication & Information Division .. ...... ...... .... 21

4.4 Development Policy Division ...... ...... ...... .... 29

4.5 Education Division ...... ...... ...... .... 30

4.6 National Knowledge Commission ...... ...... ...... .... 31

4.7 Environment & Forests Division ...... ...... ...... .... 31

4.8 Financial Resources Division ...... ...... ...... .... 32

4.9 Economic Advisory Council to the Prime Minister ...... ...... .... 34

4.10 Health, Nutrition & Family Welfare Division ...... ...... .... 35

4.11 Housing and Urban Development Division ...... ...... .... 41

4.12 Industry Division (including Coal Unit) .... ...... ...... .... 44

4.13 International Economic Division ...... ...... ...... .... 45

4.14 Labour, Employment and Manpower Division ...... ...... .... 49

4.15 Multi Level Planning (MLP) Division ...... ...... ...... .... 52

4.16 Plan Co-ordination Division ...... ...... ...... .... 53

4.17 Power and Energy Division ...... ...... ...... .... 56

4.18 Project Appraisal and Management Division ...... ...... .... 58

4.19 Programme Outcome & Response Monitoring (PO&RM Division) ...... .... 62

4.20 Perspective Planning Division ...... ...... ...... .... 62

4.21 Rural Development Division ...... ...... ...... .... 65

4.22 Science and Technology Division ...... ...... ...... .... 66

4.23 Committee on Infrastructure ...... ...... ...... .... 67

4.24 Socio-Economic Research Division ...... ...... ...... .... 71

4.25 Social Justice and Women�s Empowerment Division ...... ...... .... 76

Pages

4.26 State Plan Division ...... ...... ...... .... 84

4.27 State Plan Division-Development of North Eastern Region ...... .... 86

4.28 Transport Division ...... ...... ...... .... 88

4.29 Tourism Cell ...... ...... ...... .... 89

4.30 Village and Small Enterprises Division ...... ...... ...... .... 89

4.31 Voluntary Action Cell ...... ...... ...... .... 90

4.32 Water Resources Division ...... ...... ...... .... 90

4.33 Administration and Other Services Division ...... ...... .... 93

4.33.1 Administration ...... ...... ...... .... 93

4.33.2 Career Management Activities ...... ...... ...... .... 94

4.33.3 Organisation Method and Co-ordination Section ...... ...... .... 94

4.33.4 Hindi Section ...... ...... ...... .... 94

4.33.5 Library and Documentation Center ...... ...... ...... .... 95

4.33.6 National Informatics Center � Yojana Bhavan Unit ...... ...... .... 96

4.33.7 Record Section ...... ...... ...... .... 103

4.33.8 Planning Commission Club ...... ...... ...... .... 103

4.33.9 Welfare Unit/EW FS/D. Canteen/Post Section ...... ...... .... 104

4.33.10 Charts, Maps & Equipment Unit ...... ...... ...... .... 106

4.33.11 Right to Information Cell (C&I Division) ...... ...... .... 107

Chapter 5 Programme Evaluation Organisation ...... ...... ...... .... 108

Chapter 6 Vigilance Activities ...... ...... ...... .... 115

Annexure C&AG�s Audit Observations ...... ...... ...... .... 116

Annexure Organisation Chart of Planning Commission ...... ...... .... 117

1

Chapter 1

Role, Composition and Functions

1.1 The Planning Commission was constitutedin March, 1950 by a Resolution of the Governmentof India, and it works under the overall guidance ofthe National Development Council. The PlanningCommission consults the Central Ministries and theState Governments while formulating Five Year Plansand Annual Plans and also oversees their implemen-tation. The Commission also functions as an advisoryPlanning body at the apex level.

FUNCTIONS

1.2 The following functions have been allocatedto the Planning Commission as per the Governmentof India (Allocation of Business) Rules, 1961:

(a) Assessment of the material, capital and humanresources of the country, including technicalpersonnel, and formulation of proposals foraugmenting such of these resources as arefound to be deficient.

(b) Formulation of Plan for the most effective andbalanced utilization of the country�s resources.

(c) Definition of stages in which the Plan shouldbe carried out on a determination of prioritiesand allocation of resources for completion ofeach stage.

(d) Determination of the nature of machinerynecessary for the implementation of the Planin all its aspects.

(e) Identifying the factors which, are tending toretard economic development and determinethe conditions which in view of current socialand political situation, should be establishedfor the successful execution of the Plan.

(f) Appraise from time to time the progressachieved in the execution of each stage of thePlan and recommend adjustment of policiesand measures that such appraisal may showto be necessary.

(g) Public Co-operation in NationalDevelopment.

(h) Specific programmes for area developmentnotified from time to time.

(i) Perspective Planning.

(j) Institute of Applied Manpower Research.

(k) The overall coordination of the PradhanMantri Gramodaya Yojana.

Note: The overall coordination of the PradhanMantri Gramodaya Yojana (PMGY) will be theresponsibility of the Planning Commission. However,overall management and monitoring of the individualsectoral programmes under PMGY will be theresponsibility of the concerned nodal Ministry/Department.


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COMPOSITION OF THE COMMISSION

Prime Minister of India is the ex-officio Chairman of the Planning Commission and the presentcomposition of the Planning Commission is:

1. Dr. Manmohan Singh, : ChairmanPrime Minister

2. Shri Montek Singh Ahluwalia : DeputyChairman

3. Shri Pranab Mukherjee : MemberMinister of Defence

4. Shri Arjun Singh, : MemberMinister of Human Resource Development

5. Shri Sharad Pawar, : MemberMinister of Agriculture and Consumer Affairs,Food and Public Distribution

6. Shri Lalu Prasad, : MemberMinister of Railways

7. Shri P. Chidambaram, : MemberMinister of Finance

8. Shri Dayanidhi Maran, : MemberMinister of Communications& Information Technology

9. Shri M.V. Rajasekharan, : MemberMinister of State for Planning

10. Dr. Kirit Parikh : Member

11. Prof. Abhijit Sen : Member

12. Dr. V.L. Chopra : Member

13. Dr. Bhalchandra Mungekar : Member

14. Dr. (Ms.) Syeda Hameed : Member

15. Shri B.N. Yugandhar : Member

16. Shri Anwarul Hoda : Member

17. Shri Rajeeva Ratna Shah : Member-Secretary

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1.3 Deputy Chairman, Planning Commissionenjoys the rank of Union Cabinet Minister, whereasall full-time Members and the Member- Secretary(from S.No.10 to 17 of the above composition) arein the rank of Union Minister of State.

1.4 The Prime Minister in his capacity asChairman of the Planning Commission, participatesand gives direction to the Commission on all majorissues of policy.

1.5 The Deputy Chairman and the full timeMembers (and the Member-Secretary )of thePlanning Commission function as a composite bodyin the matter of detailed Plan formulation. They direct,guide and advise various Subject Divisions of theCommission in the exercises for preparing ApproachPapers / Documents leading to Five Year Plans andAnnual Plans formulations/Mid-Term Appraisals etc.Their expert guidance is also available to the subjectDivisions for monitoring and evaluating the PlanProgrammes, Projects and Schemes.

1.6 The Planning Commission functions throughseveral Subject Matter Divisions and a few SpecialistDivisions. Each Division is headed by a Senior LevelOfficer of the level of Joint Secretary or AdditionalSecretary designated as an Adviser and / or by aSecretary level officer designated as a Principal Adviser.

1.7 These Divisions fall under two broadcategories:

(i) Specialist Divisions which are concerned withaspects of the entire economy e.g. PerspectivePlanning, Financial Resources, DevelopmentPolicy Division, etc. and

(ii) Subject Divisions e.g. Agriculture, Education,Health, Housing Divisions, etc. which areconcerned with specified fields ofdevelopment in the related areas.

The Specialist Divisions functioning in thePlanning Commission are :

i. Development Policy Division,

ii. Financial Resources Division, including Stateas well as Central Finances.

iii. International Economics Division,

iv. Labour, Employment and ManpowerDivision,

v. Perspective Planning Division, includingStatistics & Surveys

vi. Plan Coordination Division,

vii. Project Appraisal and Management Division,

viii. Socio-Economic Research Unit

ix. State Plan Division,

x. Multi Level Planning Division including HillArea Development, Western GhatsDevelopment, Development and ReformFacility, Decentralised Planning etc.

xi. Infrastructure Division [ as Secretariat of theCommittee on Infrastructure]

xii. Programme Outcome and ResponseMonitoring Division

The Subject Divisions are :

i. Agriculture Division,

ii. Backward Classes and Tribal DevelopmentDivision,

iii. Communication & Information Division,

iv. Education Division,

v. Environment and Forests Division,

vi. Health, Nutrition & Family Welfare Division,

vii. Housing & Urban Development Division,

viii. Industry & Minerals Division,

ix. Power & Energy Division,

x. Rural Development Division,

xi. Science & Technology Division,

xii. Social Justice & Women�s EmpowermentDivision,


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xiii. Transport Division,

xiv. Village & Small Enterprises Division,

xv. Voluntary Action Coordination Cell

xvi. Water Resources (including Water Supply)Division., and

xvii. Tourism Cell

1.8 The Programme Evaluation Organisationundertakes evaluation studies to assess the impact ofselected Plan Programmes/ Schemes in order toprovide useful feedback to the Planners andimplementing agencies.

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STATE OF THE ECONOMY

2.1 The ambitious target set for the growth ofGross Domestic Product (GDP) at 8% per annumfor the Tenth Five Year Plan included a key sub targetof 4% growth in agriculture. The experience duringthe first four years of the Plan indicates shortfall vis-a-vis both overall growth target as well as agriculturesub-target. The actual average growth rate of GDPduring these years is estimated to be around 7% peryear as per the new series of National AccountsStatistics (NAS) with 1999-00 as base year, broughtout recently by the Central Statistical Organisation(CSO). There has been some recovery of agriculturalsector since 2003-04 resulting in high overall GDPgrowth rate of 8.5% in 2003-04 followed by 7.5%growth in 2004-2005 and an anticipated growthrate of more than 8.0% in the current financial year,2005-06.

2.2 The overall growth performance during TenthPlan is likely to be below 8% as re-assessed duringthe Mid-Term Appraisal (MTA) of the Tenth Five YearPlan. The MTA revises the Tenth Plan growth targetdownward to about 7% on average per year. Thisrevision has been made on the basis of actual growthrate in the first three years of the Plan and thebehavioural relations underlining the Indian growthprocess. The annual average growth targets for thethree broad sectors of the economy viz. agriculture,industry and services have been revised to 2.2%, 7.6%and 8.3% respectively from the original target of 4%,8.7% and 9.3%.

2.3 The macro economic parameters consistentwith the revised growth scenario have also been re-worked. Accordingly, the level of aggregate investmentrequirement has been revised from 28.4% of GDP to26.6% of GDP. The requirement of public investmentas a percentage of GDP has also been revised downto 7.1% from its original target of 8.4%. The domestic

saving as a ratio of GDP has been revised to 26.9%,which is marginally higher than the original target of26.8%. The MTA estimates the savings andinvestment gap to be around 0.3% of GDP, which isto be supported by a surplus in the Current AccountBalance of similar magnitude.

2.4 There has been phenomenal growth in exportsof goods during the Tenth Five Year Plan with anaverage annual growth of 21% from 2002-03 to 2004-05 as against a projected growth of 12.4% for thePlan. India�s merchandise exports are predominatedby manufactured items and the share of primaryproducts has declined. During this period, importshave also increased considerably with an averageannual growth of 24% due to industrial recovery.Recent increase in oil prices have also contributed tothe import bill. Invisibles have increased by over 28%during the first three years of the Plan. There was acurrent account surplus in the first two years althoughthere has been a deficit of 1.02% of GDP during 2004-05 due to much higher imports.

2.5 Meeting the revised requirements of planinvestment consistent with the macro-economicbalances and sectoral investment needs may not beeasy due to (a) fiscal constraint imposed by FiscalResponsibility and Budget Management (FRBM)Act, 2003 on Central finance, which mandatesbringing down the fiscal deficit of Cental governmentto 3% of GDP and eliminate revenue deficit by theyear 2008-9 (b) NCMP commitment of increasinggovernment spending in critical areas such as health,education, irrigation, watershed management,employment guarantee programme etc., most ofwhich may involve higher consumption expenditure;and (c) Twelfth Finance Commission (TFC) award,mandating larger resource transfer from the Centreto the States. Provisioning of higher publicinvestment, in this context, would critically dependon higher buoyancy in the revenue receipt of theCentral government.

Chapter 2

Economy and the Plan : An Overview


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2.6 The TFC award, which covers the financialyears 2005-06 to 2009-10, includes severalrecommendations for improving the State finances.The salient features of these awards are: (a) Share ofthe states in the net proceeds of shareable Central taxesshall be 30.5 percent. (b) Statutory grants includegrant for panchayati raj institutions and urban localbodies; grant for calamity relief; non-Plan revenuedeficit grant; grants to specific states for educationand health sector; maintenance grant for roads andbridges; grants for maintenance of public buildingsand forest; heritage conservation grant and grant forstates specific needs. (c) Central loan to the statescontracted till 31 March, 2004 may be consolidatedand rescheduled for repayment in 20 equal annualinstalments with an interest rate of 7.5 percent perannum subject to the state enacting the fiscalresponsibility legislation. (d) A debt write-off schemelinked to the reduction of revenue deficit of states maybe introduced in which the quantum of write-offwould be linked to the absolute amount by which therevenue deficit is reduced in each successive yearduring the award period. Although the TFC hasrecommended significant relief for States, the benefitof debt restructuring and debt write off schemes tobe accrued to the States are conditional upon the Statesimproving their fiscal position by bringing down theirrespective gross fiscal deficit to below 3 percent ofGSDP and eliminating revenue deficit by the year2008-09.

Performance of the Economy:

Growth and Sectoral Output

2.7 The Tenth Five Year Plan (2002-07) asapproved by NDC targeted an average growth rateof 8.0% per annum for the economy as a whole. Inthe Tenth Plan period, the agricultural sector wasprojected to grow at 4% per annum while theindustrial and services sector was targeted to grow byaround 9% per annum. The growth rate for the firstthree years of the Tenth Five Year Plan is estimated tobe 6.6%. The sectoral growth performance duringthis period works out to 1.3%, 6.9% and 8.7% perannum, respectively for agriculture, industry andservices. In the year 2002-03, the economy registereda growth rate of 3.8% only. The deceleration was

mainly explained by significant negative growth inagricultural sector estimated at (-) 6.9% over theprevious year. Industry and services sector grew at6.8% and 7.3%, respectively in 2002-03.

2.8 In 2003-04, the economy moved on to anaccelerated growth path recording a high growth rateof 8.5%. Agricultural growth rate increased to 10%,industrial growth rate was stable at 6.6% and theservices sector grew at 8.5%, which was higher thanthe previous year by 1.2 percentage point. Accordingto the latest GDP estimates brought out by the CSO,the growth rate in 2004-05 is estimated to be 7.5%as against 8.5% in 2003-04. The estimates of sectoralGDP, for the year 2004-05 in comparison with theprevious year, show growth of 0.7% in agriculture,7.4% in industry and 10.2% in services sector.

2.9 During the first two years of the Tenth Plan,the States, which have grown faster than the nationalaverage growth, are Jharkhand, Gujarat, Haryana,Himachal Pradesh, Kerala, Chattisgarh, Maharashtra,Manipur, Orissa and West Bengal.

Saving and Investment

2.10 The Tenth Plan projected investment rate of28.4% whereas the Mid-Term Appraisal of the TenthPlan reassessed the investment rate at 26.6% of GDP.The domestic savings rate was projected at 26.8% andthe Mid-Term Appraisal of the Tenth Plan has assessedit at 26.9%. According to the CSO estimates, in theyear 2003-04, the gross saving rate increased to 28.9%in comparison with 26.5% in 2002-03. The rate ofGross Domestic Capital Formation also increasedfrom 25.3% in 2002-03 to 27.2% in 2003-04.

2.11 The contribution to an increase in GrossDomestic Saving rate has come from the three entitiesviz. the household sector, private corporate sector aswell as the public sector. The rate of saving ofhousehold sector has gone up from 23.1% in 2002-03 to 23.5% in 2003-04. The rate of saving in privatecorporate sector has gone up from 4.1% in 2002-03to 4.4% in 2003-04. Decrease in rate of dissaving ofpublic sector, from (-) 0.7% in 2002-03 to 1.0% in2003-04, has occurred mainly due to an increase insavings of non-departmental enterprises and small

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increase in savings of departmental enterprises andreduction in dissavings of government administration.

2.12 The share of public, private and householdsector in gross capital formation has undergone achange in 2003-04 in comparison with 2002-03.During this period, share of public sector has goneup from 24.4% to 24.8%, private sector has gone upfrom 22.9% to 26% whereas household sector hasgone down from 50.4% to 45.8%.

Fiscal Performance

2.13 The first four years of the Tenth Five Year Planindicate improvement in the fiscal position of theCentral Government. The fiscal deficit of CentralGovernment was 5.9% of GDP in 2002-03, declinedto 4.5% in 2003-04, 4.0% in 2004-05 and 4.1% in2005-06 (RE). The revenue deficit of the CentralGovernment has come down from 4.4% of GDP in2002-03, to 3.6% in 2003-04, 2.5% in 2004-05 and2.6% in 2005-06 (RE). The FRBM target is to bringdown the gross fiscal deficit of the Centre to below3% of GDP and eliminate revenue deficit by the year2008-09. The union budget 2006-07 is another stepforward in this direction, in which, the fiscal deficitand revenue deficit to GDP ratio are fixed at 3.8%and 2.1% respectively.

2.14 The fiscal consolidation effort by the Stategovernments along with implementation of TFCaward has improved the overall state finances. Thefiscal deficit of all States as percent of GDP was 4.15%in 2002-03, 4.4% in 2003-04, 3.84% in 2004-05(RE) and further declined to 3.07% in 2005-06 (BE).The revenue balance position of States Governmentalso indicates substantial improvement by decliningto 0.7% of GDP in 2005-06 (BE) from 2.24% ofGDP in 2002-03.

2.15 The interest payments of Central Governmenthave declined from 4.8% of GDP in 2002-03, to 4.5%of GDP in 2003-04 and 4.1% of GDP in 2004-05and 3.6% in 2005-06 (RE). The decline in interestpayment is due to low interest rate, which is drivenby market forces. The impact of low interest rate andTFC recommendation is yet to be fully reflected inthe interest burden under States� finances. There has

been marginal decline in the expenditure incurred oninterest payment by the States from 2.85% of GDPin 2002-03 to 2.65% of GDP in 2005-06 (BE).

2.16 On the revenue receipt side, the gross taxrevenue of the Central government has been ratherbuoyant at more than 1.4 during the first four yearsof the Tenth plan. The tax-GDP ratio of Centre hasimproved from 8.8% in 2002-03, to 9.2% in 2003-04 and 9.8% in 2004-05 and 10.5% in 2005-06(RE).State Own Tax Revenue to GDP ratio has remainedstable at 5.7% during the first two years of the TenthPlan. However improved rate of State Own TaxRevenue has been observed in the years 2004-05(RE)and 2005-06 (BE) at about 5.97% and 6.05%respectively.

2.17 Total Outstanding Liability of CentralGovernment has declined from 63.6% of GDP in2002-03 to 62.2% in 2005-06 (RE). AggregateLiability of all States together is estimated at 32.6%of GDP in 2005-06 (BE). This is a marginalimprovement over the Outstanding Liability of 33%in previous two years.

Price Stability

2.18 The average inflation rate is measured bychanges in Wholesale Price Index (WPI). In the firstyear of the Tenth plan (2002-03) the Indian economyexperienced an average inflation rate of 3.4%. Therealization of inflation at a reasonably low level ismostly explained by the price indices of manufacturingproduct, which constitutes about 64% of the weightassigned to various commodity groups in the WPI.Inflation rate during the year 2003-04 was 5.5% andduring the financial year 2004-05 the rate has beenhigher at 6.5%. The price rise is mostly explained byhike in the international crude oil prices and increasein the edible oil prices. The WPI index for the firstnine months of the financial year 2005-06 indicatesan average inflation rate of 4.5%.

Balance of payments

2.19 There has been substantial increase in exportsduring 2004-05, with total exports at $ 82150 millionas against $ 66285 million during 2003-04, signifying


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a growth of 23.9%. Exports to GDP ratio were12.58% in 2004-05 as against 11.53% in 2003-04.During April-September 2004-05, exports are valuedat $ 44761 million as compared to the level of $ 36715million during April-September, 2003-04.

2.20 During 2004-05, imports also increasedconsiderably aggregating to $ 118779 million ascompared to $ 80003 million in 2003-04 recordingthereby a growth of 48%. Oil imports during 2004-05 are valued at US $ 29844 million which is 45.1%higher than oil imports valued at US $ 20569 millionin the corresponding period last year. Imports to GDPratio have been 18.9% in 2004-05 and 14.5% in2003-04. During April-September 2005-06, importsare valued at $ 76396 million as against $ 51483million during April-September, 2004.

2.21 With imports much higher than exports during2004-05, there has been a current account deficit of $5400 million as compared to a current account surplusof $ 14083 million during 2003-04. During April-September 2004-05, there has been a current accountdeficit of $ 12956 million. Current account deficit toGDP ratio has been 1.2% in 2004-05.

2.22 Foreign exchange reserves have beenincreasing during the current year and reached


$144050 million by December 30, 2005 as comparedto $ 141514 million in end March 2004-05. Thepresent level of reserves consist of $ 138209 millionof foreign current assets, $ 4925 million worth of gold,$ 5 million of SDRs and $ 911 million reserve positionin the IMF.

2.23 Foreign investment net inflows during 2004-05 were $ 12147 million as against $ 13744 millionin 2003-04. During April-September, 2004-05foreign investment net inflows stand at $ 7411 million(foreign investment inflow being $ 30742 million andoutflows at $ 23331 million) with $ 2304 million offoreign direct investment ($ 3505 million inflow and$ 1201 million of outflows) and $ 5107 million ofPortfolio Investment ($ 27237 million inflow and $22130 million outflow).

2.24 India�s external debt stood at $ 124326million by end-September, 2004-05 and was slightlyhigher (by 0.85%) as compared to $ 123310 millionin end March, 2005. The size of short-term debtremained modest at $ 7524 million at the end ofMarch, 2005 and $ 8303 million at the end ofSeptember, 2005 constituting 6.1% and 6.67% of thetotal external debt. Debt stock to GDP ratio was17.4% in March 2005.

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Chapter 3

The PlanANNUAL PLAN 2005-06

3.1 The Annual Plan Outlay of 2005-06 amountsto Rs. 2,11,253.49 crore, comprising of GrossBudgetary Support (GBS) of Rs. 1,10,385.00 croreand Internal and Extra Budgetary Resources (IEBR)of Rs. 1,00,868.49 crore. A GBS of Rs.62,115.00crore has been allocated as Central Assistance to State/Union Territories (inclusive of loans to the extent ofRs. 29003.22 crore to be raised by State and UT (withlegislature) as per the recommendation made by the12th Finance Commission). The GBS has beenallocated between the Central Sector Plan and theCentral Assistance to State Plans keeping in view thebalance in the flow of Plan resources between the two, so as to cover all important NCMP programmesand priority areas indicated by the National AdvisoryCouncil.

Background to the Annual Plan 2005-06

3.2 Keeping in view the declining trend in theratio of Gross Budgetary Support to GDP as also theratio of public investment to GDP almostcontinuously during the last decade and particularlyin the Ninth Plan period, it was emphasized at theoutset of allocations for Annual Plan 2005-06 thatnecessary steps need to be taken to reverse these trendsin keeping with our overall approach to economicpolicy and development planning. Further, it washighlighted that number of evaluation studies haverevealed that plan outlays are not fully reflected interms of physical achievements due to many possiblereasons such as thin spread of scarce resources onaccount of proliferation of both Central and CentrallySponsored Schemes with similar objectives within asector and across sectors, inadequate monitoring ofPlan expenditure and, more importantly, the generalinefficiency and ineffectiveness in transforming scarceresources into desired outcomes. As a trajectory ofaverage GDP growth rate of 8% has been projected

over the Tenth Plan period, serious steps have to betaken for mobilizing additional resources for steppingup our investment rate and also to address all theseother concerns. The Plan has to be an instrument forsetting new benchmarks for efficiency andeffectiveness in implementing our developmentpolicies and programmes.

3.3 The share of Central Assistance to States andUTs averaged over 43 per cent in the Annual Plans ofthe Ninth Five Year Plan. However, it declined to41.08 per cent in the Annual Plan 2002-03, 40.36per cent in the Annual Plan 2003-04, to 39.63 percentin the Annual Plan 2004-05 and further declined to36.00 per cent in 2005-06 in Budget level estimates.Though, it would be desirable to raise this share tothe Ninth Plan average of over 43 per cent, it has notbeen possible to do so on account of additionalresource commitments and policy announcements inrespect of schemes/ programs in the Central Sector.The allocation of Central Sector in 2005-06 hasincreased by 25.60 per cent over Annual Plan 2004-05.

3.4 While finalizing the Tenth Five Year Planproposals an emphasis was laid to prioritize all Planprogrammes/ schemes/projects with a view to utilizingthe available resources in the most judicious andeconomically efficient manner. This emphasis wasfurther reiterated while preparing the Annual Planproposals for 2005-2006 and Central Ministries/Departments and States / UT's were suggested tomake an attempt to outline the "Core Plan"highlighting the basic sectoral priorities and theminimum programme for public action required indifferent sectors. Implicit in this is the idea that criticalprogrammes in each sector should not suffer for lackof allocation over the Plan period and should becompleted as planned so that the projected benefitsfrom their implementation could be fully realized. Itwas also suggested that the priorities indicated in the

The Plan

10

The Plan

Mid-Term Appraisal of the Tenth Five Year Plan shouldget reflected in the Annual Plan 2005-06. It wasemphasized to introduce policy correctives and newinitiatives in critical areas in the context of the newpriorities outlined in the National CommonMinimum Programme (NCMP). Attention was alsodrawn towards the "Saat Sutra" identified by the PrimeMinister - Agriculture, Water, Education, Health Care,Employment, Urban Renewal and Infrastructure -which have been declared as the pillars ofDevelopment Bridge to ensure higher economicgrowth and more equitable social & economicdevelopment.

3.5 It was also emphasized that as far as possible,only such Central sector and Centrally SponsoredSchemes/Programme/Projects should be included inthe Plan which have been approved for the Planperiod/ for which the necessary investment decisionshave already been taken by the designated body orproposals which are in public interest and cannot bedelayed without significant implications for theeconomy and for which at least the preliminaryfeasibility study has already been carried out.

3.6 The need to have a realistic assessment ofresources was emphasised so that the proposalformulated for the Annual Plan 2005-06 are credibleand the exercise itself is meaningful in comparisonwith Tenth Plan targets. The internal resources andthe functioning of public sector undertakings anddepartmental undertakings such as the ElectricityBoards, Transport Corporations and IrrigationDepartments have been a matter of concern anddeliberated extensively in the Commission. There hasto be a concerted effort to enhance the internal accrualsof such undertakings so that they do not constitute adrain on the budgetary resources of the governmentand on the contrary they should be in a position tomake a positive contribution to the government'sefforts at mobilising resources for the Plan. It has alsobeen observed that in some cases the gap betweenthe approved Plan outlay and the revised/actual Planoutlay is largely on account of the failure of the PSUsto mobilise the agreed quantum of internal and extrabudgetary resources for the Plan. This has to beexamined closely and such Ministries/Departments

that have Public Sector Undertakings under them,need to bridge the said gap.

3.7 In order to improve the efficiency and impactof the Government programs, a detailed exercise toconverge, weed out and transfer the Central andCentrally Sponsored Schemes has been undertaken.In pursuance of the announcements made in theUnion Budget 2001-02, all on-going schemes weresubjected to zero-based budgeting in the PlanningCommission. As a result of these exercises, there hasbeen a significant reduction in the number of schemesbeing implemented by the Central Ministries/Departments. The results are being reflected in theallocations that are being made to the Central SectorPlan and to the Central Assistance to State/UT Plans.Further, an Expert Group has been set up by thePlanning Commission to develop concrete proposalsfor restructuring the CSS, in consultation with theMinistries / Departments concerned.

3.8 As per the Prime Minister's initiative for theNorth-Eastern region, all Central Ministries/Departments (except those specifically exempted)were requested to earmark at least 10 per cent of theBudget for the North-East . It was also requested thata scheme-wise break up of this allocation may also beindicated for the Annual Plan 2005-06.

3.9 The need to encourage public-privatepartnership in promoting infrastructure wasemphasized in order to provide leverage to publicfunds, improve quality of service delivery and to ensurebetter value for money. The PPP could be effectivelyused in the delivery of social services like health care,primary education, provision of quality transportationfacilities in the form of roads, railroads, ports andairports and safe drinking water and sanitation. Whatis required is a change in the paradigm of the publicsector in 'providing' public goods and services withoutnecessarily" producing" them itself.

3.10 In pursuance of recommendations of a High-Powered Committee for improving administrativeefficiency by using IT, all Central Ministries /Departments were requested to make a provision of

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2-3% of their Plan / Budget for programmes / schemesrelating to IT application.

Highlights of Plan Allocations forAnnual Plan 2005-06

3.11 The budget allocations of the Ministries /Departments in 2005-06 have been made keeping inview the commitments and policy announcements ofthe Government in the corresponding sectors as wellas the objective of achieving the fiscal targets. Carehas been taken to the extent possible for all importantNCMP programmes,the seven sectors ("Saat Sutra")identified by the Prime Minister i.e. agriculture, water,education, health care, employment, urban renewal& infrastructure, and in particular greater attentionhas been paid to priority areas listed by the NationalAdvisory Council. The priority areas indicated by theNational Advisory Council (NAC) viz.Sarva ShikshaAbhiyan (SSA), Employment Guarantee Scheme(FFW-SGRY), Rural Health Mission, Mid Day Meal,ICDS/Supplementary Nutrition, and Road Networkin the North Eastern Region have been adequatelyprovided outlays.

3.12 Keeping in view the commitment of NCMP,the GBS allocation for the Department of Agricultureand Cooperation, Department of AgricultureResearch and Education and Department of AnimalHusbandry and Dairying have been enhanced by Rs.1529.32 crore, Rs. 150 crore and Rs. 169.08 crorerespectively mainly to meet the requirements of theNational Horticulture Mission, various schemes ofMicro Irrigation as well as for enhancing thesustainability of dry land and Rain-fed farming system, Krishi Vigyan Kendras (KVKs), strengthening ofAgricultural Education System, and for setting up theNational Board for Strategic Research for undertakingstrategic research in agriculture.

3.13 The budget support for the Department ofElementary Education and Literacy, has been increasedto Rs. 12531.76 crore, providing an increase ofRs.6531.76 crore over 2004-05(BE) mainly to meetthe requirements of funds for Sarva Shiksha Abhiyanfor achieving universalisation in the 6-14 years agegroup and for the National Programme of NutritionSupport to Primary Education, popularly known asthe Mid-day Meal scheme. The outlay for Secondary

Education & Higher Education has been enhancedto Rs.2712 crore; a net addition of Rs.487 crore over2004-05(BE) .

3.14 The budget support of Department of Womenand Child Development has been increased toRs.3875.29 crore, providing an increase ofRs.1475.29 crore over 2004-05(BE).The increasedoutlay is mainly for ' Universalization' of IntegratedChild Development Services(ICDS) and for meetingthe 50 per cent cost of ' Supplementary Nutrition' bythe Central Government.

3.15 The GBS of the Department of Health andthe Department of Family welfare has been enhancedto Rs.2908 crore and Rs.6424 crore respectively forsuch national schemes which are to be eventuallyintegrated with the National Rural Health Mission(NRHM) for improving public health interventionfor common people and for strengthening primaryhealth care at grass root level. For the Department ofAYUSH, the budgetary support has been increasedto Rs. 350 crore to provide support to EducationalInstitutions, Hospitals , and Research councils andto take a major initiative in the form of Central SectorGolden Triangle Scheme in collaboration with CSIRand ICMR for validating the technical knowledge onAYUSH.Provision has also been made forconstruction of National Institute of Ayurveda at NewDelhi.

3.16 Since drinking water and sanitation are keycomponents of any health intervention strategy, theambit of National Rural Health Mission has beenwidened to include those sectors as well. Thebudgetary support to Department of Drinking WaterSupply has been increased to Rs.4750 crore. Thesubstantial enhancement has been provided to reflectGovernment's commitment to meet the needs of thetwo sub-sectors viz.Rural Drinking Water Supply andRural sanitation.

3.17 Department of Rural Development has beenprovided Rs.18334 crore,a substantial hike of 60 %over 2004-05(BE),essentially to meet thecommitment of the Government for generatingemployment in rural areas through asset creatingpublic works. The Planning Commission has provided

The Plan

12

Rs. 10,000 crore for rural employment in Annual Plan2005-06, which covers only the cash componentunder SGRY (RS. 4000 crore) and National Foodfor Work Programme (Rs. 6000 crore) beingimplemented in 150 most backward districts of thecountry. In these 150 districts, these programmeswould provide 100 days of the employment to at leastone able body's person of every rural poor household.NREGA has since been enacted by the Parliament inSeptember,2005 and NREGP has been launched inFebruary,2006 in 200 districts of the Country. In non-NREGP districts, SGRY would continue to theimplemented for generating wage employment. ThePradhan Mantri Gram Sadak Yojana (PMGSY) hasbeen adequately provided to provide connectivity toall unconnected habitations in the rural areas with apopulation of more than 500 persons through allweather quality roads.

3.18 To meet the urgent need of cities and townsGovernment has decided to launch a comprehensiveprogramme in mission mode called 'National UrbanRenewal Mission (NURM)' and has set up two sub-mission - National Urban Renewal Sub-Mission forUrban Infrastructure and Transport and NationalUrban Renewal Sub-Mission for Slum Development-with allocation of Rs. 5500 crore in 2005-06, as thecities and towns are true engines of growth andcontributes about 50% of country's GDP.

3.19 To develop the road network of nationalhighways, the GBS for Department of Road Transportand Highways has been raised to Rs.10585 crore in2005-06 leading to an increase of Rs.3541 crore over2004-05(BE) mainly for accelerated programme fordevelopment of roads in North-East and also aprovision for the road projects in Jammu Kashmir asa part of Jammu Kashmir package and for viabilitygap funding of projects like NHDP-III and 2- laningof highways. The GBS of Rs.6520 crore has beenprovided to the Railways for modernization, trackrenewal and safety programmes as the Railwaysconstitutes the core of our infrastructure.

3.20 To meet the NCMP objective of completionof household electrification in five years, an amount ofRs.1100 crore has been provided in the form of ACAfor meeting the capital subsidy requirement (up to

90%)of the newly approved scheme on 'RuralElectricity Infrastructure and Household Electrification'which is now being operated as Central scheme.

3.21 To develop and promote the infrastructure inindustrial clusters of the country,Rs.275 crore has beenprovided to Department of Industrial Policy andPromotion specially under the 'IndustrialInfrastructure Upgradation Scheme' keeping in viewthe commitment of the government outlined inNCMP.

3.22 The Plan Outlays for Ministry of Textiles hasbeen enhanced by Rs.272 crore for CottonTechnology Mission, Apparel Park, Textile Centre,Infrastructure Development Scheme (TCIDS),Technology Upgradation Fund Scheme and SpecialJute Development Fund.

3.23 Considering the fact that R&D activitiesenhance the multiplier for developmental activities,Science & Technology sector has been given a majorstep-up while finalizing the Plan allocations. Thus,the Budget Support of the Department of AtomicEnergy, Science & Technology, Space, Scientific &Industrial Research, Ocean Development has beenraised to Rs.3931.39 crore,Rs.1250 crore,Rs.2800crore Rs.846 crore and Rs.340 crore respectively. Inparticular, greater attention has been paid to "Tsunamiand Strom Surge Warning System" and Data BuoyProgramme under Ocean Development; Drug andPharmaceutical Research and National Mission onNano Science & Nano Technology under theDepartment of Science and Technology; Expansionof Solar Photovoltaic facility; Central ElectronicsLimited for R&D under the Department of Scientificand Industrial Research and Satellite NavigationSystem under the Department of Space.

3.24 The allocation of GBS for the Ministry ofTourism has been raised by Rs. 286 crore over 2004-05 (BE) to tap vast potential of international tourismand employment generation. The GBS for theMinistry of Culture has been raised by Rs.151.12 croreover 2004-05 (BE). The increased GBS, inter alia,provides for proposed launching of three nationalmissions viz., National Mission on IntangibleHeritage, National Mission on Monuments andNational Mission on Antiquities.

The Plan

13

3.25 The BE for Annual Plan 2005-06 for Centre,by heads of development, is summarized in Table3.25and Figure-1.

Figure - 1Review of Annual Plan 2005-06

3.26 In the Revised Estimates (RE), Central Sectoroutlay for the Annual Plan 2004-05 revised to Rs.150818.15 Crore, a decrease of 7.88 Per cent over

the Budget Estimates (BE) of Rs. 163720.29 crore.This has been mainly due to reduced IEBR of theCentral Public Sector Undertakings (CPSUs) by 9.9Per cent. According to the BE of the 2004-05 AnnualPlan, nearly, 46.32 per cent of the Central SectorOutlay was to be funded through IEBR by the CPSUsand the remaining Rs. 87886.25 crore was to be metfrom GBS. The RE for Annual Plan 2004-05 forCentre, States/UTs, by heads of development, issummarized in Table-3.26 and Figure 2.

Table 3.25

Budget Estimates of Annual Plan 2005-06 for Centre, States & UTS(Rs. Crore)

S.No. Head Centre States & of UTs

Development Budget IEBR Outlay TotalSupport

1 Agriculture & Allied Activities 6360.72 64.78 6425.50 7414.13 13839.63

2 Rural Development 11494.50 0.00 11494.50 12436.01 23930.51

3 Irrigation & Flood Control 524.34 0.00 524.34 26432.77 26957.11

4 Energy 5196.81 52994.38 58191.19 19164.92 77356.11

5 Industry & Minerals 4840.67 7157.48 11998.15 3304.45 15302.60

6 Transport 21613.70 20803.02 42416.72 17575.54 59992.26

7 Communications 507.38 11632.4 12139.78 86.31 12226.09

8 Science, Technology &Environment 7074.65 0.00 7074.65 444.97 7519.62

9 General Economic Services 4539.18 0.00 4539.18 5540.89 10080.07

10 Social Services 47665.18 8216.43 55881.61 50488.26 106369.87

11 General Services 567.87 0.00 567.87 2551.12 3118.99

12 Special Area Programmes 0.00 0.00 0.00 4546.52 4546.52

TOTAL 110385.00 100868.49 211253.49 149986.00 361239.38

14

The Plan

Table 3.26

Revised Estimates of Annual Plan 2004-05 for Centre, States & Union Territories

(Rs. Crore)

S.No. Head Centre States &of UTs

Development Budget IEBR Outlay TotalSupport

1 Agriculture & Allied Activities 4775.65 23.10 4798.75 6076.08 10874.83

2 Rural Development 8588.76 0.00 8588.76 11328.44 19917.20

3 Irrigation & Flood Control 364.69 0.00 364.69 20140.09 20504.78

4 Energy 4402.28 39154.6 43556.87 16587.10 60143.97

5 Industry & Minerals 3471.78 4361.55 7833.33 2363.13 10196.46

6 Transport 17019.63 9312.66 26332.29 12654.07 38986.36

7 Communications 275.76 8856.00 9131.76 40.88 9172.64

8 Science, Technology &Environment 5293.74 0.00 5293.74 329.59 5623.33

9 General Economic Services 2511.46 0.00 2511.46 3109.18 5620.64

10 Social Services 35404.31 6581.32 41985.63 39771.25 81756.88

11 General Services 420.87 0.00 420.87 1872.78 2293.65

12 Special Area Programmes 0.00 0.00 0.00 4176.23 4176.23

TOTAL 82528.93 68289.2 150818.15 118448.82 269266.97

15

The Plan

Figure - 2

Budget Estimates of Annual Plan 2004-05 forCentre, Stastes & UTs

Revised Estimates of Annual Plan 2004-05 for Centre, States & UTs

16

Chapter 4

Major Activities in thePlanning Commission

4.1 AGRICULTURE DIVISION

1. The activities of the Agriculture Division inthe year 2005-06 comprised monitoring of theongoing programmes, schemes and projects andexamining new schemes, proposals and programmesof the Central and various State GovernmentDepartments pertaining to agriculture, animalhusbandry, dairy, fishery, plantation sectors andagricultural research.

2. The Agriculture Division undertook the mid-term appraisal of Tenth Five Year Plan, in respect ofpolicy framework and plan schemes / programmes ofagriculture and allied sectors including animalhusbandry, fisheries and agricultural research andeducation and prepared the draft mid-term appraisalchapter of the agriculture and allied sectors. The mid-term appraisal has since been approved by the NationalDevelopment Council.

3. The National Development Council (NDC)in its meeting held on 27-28 June, 2005 to considerthe mid-term appraisal of the Tenth Five Year Planhad decided to constitute a Sub-Committee under theChairmanship of Shri Sharad Pawar, Union Ministerof Agriculture, Consumer Affairs, Food & PublicDistribution, to examine in-depth the problems facingIndian agriculture and to suggest implementableaction plans. The Sub-Committee of the NDC onAgriculture and Related Issues has since beenconstituted vide Planning Commission�s order dated25th August, 2005 with 11 Chief Ministers, those ofAndhra Pradesh, Gujarat, Haryana, Karnataka,Madhya Pradesh, Maharashtra, Meghalaya, Orissa,Punjab, Uttar Pradesh and West Bengal, the UnionMinisters of Finance, Commerce & Industry, RuralDevelopment, Water Resources, the Deputy

Chairman, Planning Commission, the Minister ofState for Food Processing Industries and the Member(Agriculture), Planning Commission as Members.Member, Planning Commission is convener of theSub-Committee. The NDC�s sub-Committee has heldits 1st Meeting on 4th October, 2005 in KrishiBhawan, New Delhi wherein it was decided toconstitute the following Working Groups on theimportant issues :-

Ø Market reforms, contract farming, agro-processing sector under the Chairmanship ofChief Minister, Punjab.

Ø Irrigation including minor irrigation underthe Chairmanship of Chief Minister,Maharashtra.

Ø Dryland/rainfed farming systems includingregeneration of degraded/wasteland, water-shed development programme under theChairmanship of Chief Minister, Gujarat.

Ø Region/crop specific productivity analysis &agro climatic zone-wise plan under theChairmanship of Chief Minister, Orissa.

Ø Credit and risk management under theChairmanship of Member (Agriculture),Planning Commission and Chairperson,NABARD.

Ø Animal husbandry (piggery, goatry, poultry,etc.) dairy and fisheries under the Chairman-ship of Chief Minister, Andhra Pradesh.

4. A meeting of the full Planning Commissionunder the chairmanship of Hon�ble Prime Minister

Major Activities in the Planning Commission

17

was held on 27th September, 2005 to considerexclusively the issues concerning the agriculture sector.In the meeting, the Prime Minister observed that therewas need for expeditious completion of on-goingirrigation projects as well as bringing more land underirrigation in command areas of completed projects.The Prime Minister had also asked to look at variousways to boost domestic and export demand, toenhance competitiveness of agricultural exports, tomake agriculture more profitable and sustainable inthe dryland/rainfed areas and to converge the resourcesof Bharat Nirman and the National EmploymentGuarantee Scheme with the schemes of the agriculturesector. He suggested to identify the key initiativesrequired in each of the regions which have the promiseto achieve break-through in agricultural developmentto identify the crops which should be focused uponand to suggest the institutional and organizationalchanges required to take the next leap forward. TheSub-Committee of the NDC on Agriculture andRelated Issues would take guidance from thesuggestions given by the Hon�ble Prime Ministerwhile finalising its recommendations.

5. Planning Commission constituted an expertcommittee under the chairmanship of Dr. S.S. Johl,Vice-Chairman, Punjab State Planning Board toprioritise and operationalise the recommendations ofthe task Group on Revamping and RefocusingNational Agricultural Research. The Divisionconducted three meetings of the Expert Committeeon 28th June, 2005, 20-21 July, 2005 and 27th July,2005 respectively. The Expert Committee submittedits report on 27th July, 2005.

6. One of the important recommendations of theTask Group was to establish a National Board forStrategic Research in Agriculture (NBSRA) under thechairmanship of Member (Science), PlanningCommission. This recommendation has since beenaccepted by the Government and the Finance Ministerhad announced in his Budget Speech (2005-06)creation of a National Fund for Strategic Research inAgriculture with an initial provision of Rs. 50 crore.The National Fund is yet to be operationalised by theDARE/ICAR.

7. The recommendations of the SwaminathanCommittee (Task Group) and the suggestions made

by the Johl Committee were examined in the PlanningCommission and a composite compilation of therecommendations of the Task Group, recommenda-tions of the Johl Committee and the views of thePlanning Commission were sent to Prime Minister�soffice.

8. �In-principle� approval for setting up ofNational Fisheries Development Board (NFDB) atan estimated cost of over Rs. 2000 crore for five yearswas issued by Planning Commission on 16.12.2005.The Board will act as an umbrella organization for allthe fisheries development matters including certainactivities on a large scale for development of inlandfisheries and aquaculture, setting up of infrastructureetc. with better coordination among variousMinistries, States / UTs and other organizations.

9. In order to monitor the performance of theplan schemes, this Division conducted Quarterly andHalf Yearly Performance Review meeting to reviewthe Central Sector (CS) and Centrally SponsoredSchemes (CSS) of the Department of Agriculture &Co-operation (DAC) and Department of AnimalHusbandry, Dairying and Fisheries under theChairmanship of Prof. Abhijit Sen, Member, PlanningCommission.

10. The plan outlay of the Ministry of Agriculturehas been stepped up considerably since 2004-05. Theoutlays of the Ministry of Agriculture for the AnnualPlan 2002-03 and 2003-04 were relatively low at Rs.3242 crore in each year, against which the actualexpenditures were still lower at Rs. 2536.95 crore andRs. 3068.67 crore respectively. The Budget Estimates(BE) for the Ministry of Agriculture for 2004-05 wasRs. 4150 crore which has further been stepped up toRs. 5998.40 crore in 2005-06. Thus, a substantialstep-up has been made in the Plan outlay of theMinistry of Agriculture in 2004-05 and 2005-06.During the year 2005-06, the Division examined andassisted in finalization of the Outcome Budget of theDepartment of Agriculture & Cooperation,Department of Animal Husbandry, Dairying andFisheries and Department of Agricultural Researchand Education / ICAR for the year 2005-06.

11. The Division prepared a draft Chapter onAgriculture and Allied Sectors for the Annual Plan


18

Document � 2005-06 of Planning Commissionhighlighting the performance of the agriculture andallied sector during 2004-05 and performance ofschemes / programmes of Department of Agricultureand Cooperation, Department of Animal Husbandry,Dairying and Fisheries and Department ofAgricultural Research and Education concerningagriculture and allied activities.

12. With regard to the proposed programme onEnhancing Sustainability of Dryland / Rainfed FarmingSystem by the DAC, the Agriculture Division hadinitially suggested that the programme could be takenup for implementation on pilot basis and thendepending on the progress it could be taken up in otherdistricts, as well. The EFC memo prepared by the DAC,on the scheme, was examined and it has been reiteratedthat it is necessary for DAC to converge the programmeas far as possible with existing programmes ofwatershed development in rainfed / arid areas. Otherobservations were sent to the PAMD, PlanningCommission for preparation of Appraisal Note.

13. Another major project proposal forintroduction of a new Centrally Sponsored Schemeof Micro-irrigation had been forwarded to PlanningCommission by the DAC. The approval of fullPlanning Commission to the scheme was facilitatedby the Agriculture Division.

14. The Division received and examined variousproposals from the State Governments of Rajasthan,Kerala, UP and MP for watershed baseddevelopmental approach/rainfed farming/ soil andwater conservation as also for development of oilseedsetc. These proposals were submitted throughDepartment of Agriculture and Cooperation forconcurrence and for poring for financial assistancefrom the International Agencies.

15. In the Fishery Sector, The Central / CentrallySponsored Schemes namely Development of MarineFisheries and Infrastructure, Fresh Water and CoastalAquaculture, Welfare of Fishermen through Insuranceof Fishermen and Construction of Fishermen Housesand programmes of Fisheries Institutes are proposedto be continued with emphasis towards faster growthof the sector through increased production and

productivity as well as employment generation during2005-06. A new scheme implemented during TenthPlan on Strengthening of Database and InformationNetworking in Fisheries will be continued with GISfor mapping of suitable water bodies up to 0.5 ha.,census of fishers etc. Implementation of mandatoryprogrammes of exploratory survey of fishery resources,training of personnel for manning mechanized fishingvessels, pre investment survey of fishing harbours,brackish water farms etc. by fisheries institutes willalso be continued during 2005-06.

16. A reference to aquaculture has been madeunder Agriculture and Allied Sectors in the NCMPas potential area for providing additional employmentopportunities. Steps are being taken for generationof additional employment opportunities in the ruralareas through vertical and horizontal expansion ofaquaculture.

17. An allocation of Rs. 174.36 crore has beenmade for Central / Centrally Sponsored Schemesunder the Fisheries sector during 2005-06. A tokenprovision for Rs. 5 crore has been made for theproposed new scheme of National FisheriesDevelopment Board which is under examination.

18. A new exercise for evolving a monitoringmechanism viz. an Outcome Budget in terms ofquantifiable deliverables was initiated in the fisheriessector also during 2005-06. The main quantifiabledeliverables identified under the fisheries sector were:water area to be brought under aquaculture, trainingof fish farmers for development of inland fisheriesmotorisation of traditional craft introduction ofintermediate craft of improved design developmentof infrastructure under marine fisheries etc.

19. The Working Group on Animal Husbandry,Dairying & Fisheries has been constituted and it willsubmit Interim Report in March 2006 and final reportin September, 2006. In the year 2005-06, theDepartment of Animal Husbandry and Dairyingimplemented 6 Centrally Sponsored Schemes and 8Central Sector Schemes.

20. The Outcome Budget is being monitoredthrough quarterly / half-yearly performeance review


19

meetings to assess the performance of the schemesand ensure timely realization of physical targets. Thebottlenecks in the utilization of funds and obstaclesagainst realization of physical targets under Central /Centrally Sponsored Schemes are discussed in thesemeetings for smoother implementation of theschemes.

21. Working Group discussions on State AnnualPlans for Agriculture & Allied Sector for 2006-07for the States of Uttar Pradesh, Mizoram, Kerala,Tripura, West Bengal, Nagaland & Assam wereconducted.

22. Cabinet Note pertaining to up gradation ofSubsidies under the Horticulture Technology Missionfor the North East was examined. Further, Techno-Economic Feasibility Report on setting up ofPerishable Cargo Centre at Amritsar, portion onAgriculture & Allied Sector of � State DevelopmentReports for the States of Goa and Pondicherry andDetailed Project Report on Conservation andManagement of Loktak Lake and Associated WetlandsIntergrating Manipur River Basin was examined andevaluated.

4.2 BACKWARD CLASSES & TRIBALDEVELOPMENT DIVISION

1. The Backward Classes Division continued itstask of reorienting / rationalizing the ongoing policiesand programmes towards empowering the sociallydisadvantaged groups viz., Scheduled Castes (SCs),Other Backward Classes (OBCs) and Minorities tobring them on par with the rest of the society. Detailsof various activities undertaken by the Division duringthe financial year 2005-06 are as given below:

Backward Classes

2. In pursuance of the approach of the TenthFive Year Plan, viz., empowering the sociallydisadvantaged groups, Government continued itsefforts to fulfil the constitutional commitment ofraising their status on par with the rest of the society.Empowerment as a long drawn process adopted thefollowing three-pronged strategy:

(i) Social empowerment to remove all thepersisting inequalities as disparities and otherproblems besides providing easy access tobasic minimum services. Education being thekey factor for social development, the samehas been accorded top priority;

(ii) Economic empowerment to promoteemployment-cum-income generationactivities with an ultimate objective of makingthem economically independent and self-reliant; and

(iii) Social justice to eliminate all types ofdiscrimination against them with the strengthof legislative support, affirmative action,awareness generation / conscientisation andrequisite change in the mind-set of people.

3. The basic approach is to empower thesegroups to achieve overall improvement in their socio-economic status, by giving due weightage to theprogrammes catering to their socio-economicdevelopment governed by their needs andrequirements especially accomplishing the task ofproviding easy access to these groups to basic serviceslike education, health, nutrition, sanitation, safedrinking water, along with innovative initiatives foreconomic development.

4. Based on the progress of the implementationof programmes during the last three years (2002-05),an outlay of Rs.1171 crore for the Ministry of SocialJustice & Empowerment in respect of SCs, OBCs andMinorities was earmarked for the Annual Plan 2005-06. The Division has been interacting actively withthe nodal Ministry of Social Justice & Empowermentand with the State Governments in theimplementation of various policies and programmesadopted in the Tenth Plan.

5. The Division also arranged both Central andState Plan Working Group discussions to discuss theAnnual Plan proposals for 2005-06 in detail andrecommended outlays based on their performance.Implementation of SCP, utilization of SCA to SCP,diversion of SCA funds to general developmentprogrammes etc., were some of the important points


20

which received attention during the State Plansdiscussion.

6. Priority has been given to mitigate and reducepoverty gap between general population and SCs,OBCs and Minorities and to make these sociallydisadvantaged groups self-reliant and economicallyempowered. This has been sought to be achievedthrough Special Central Assistance to SpecialComponent Plan and National Finance &Development Corporations.

7. An important area of National concern is theeradication of the most inhuman and obnoxiouspractice of manual scavenging. The efforts towardseradicating the practice of manual scavenging continueto be the priority commitment. There are about 6.67lakh scavengers in the country and up to 2004-05,4.09 lakh scavengers have been rehabilitated. Thereare still 2.58 lakh scavengers to be rehabilitated. Thepace of implementation has to be geared up so as toachieve the national goal of eradicating manualscavenging by 2007.

8. The Division has also examined QPRproposals of the nodal Ministry of Social Justice &Empowerment and State/UT Governments for theBC Sector and attended the meetings.

9. The Division examined and offered commentson Cabinet Note/EFC Memorandum relating to theschemes meant for welfare and development of theseDisadvantaged Groups, Research proposals/projectsrelating to SCs, OBCs and Minorities from the pointof policy guidelines and for extending financialassistance.

Tribal Development

10. During the Annual Plan 2005-06, thePlanning Commission had closely and continuouslyinteracted with the Ministry of Tribal Affairs inconnection with the exercises relating to formulationof and implementation of various programs andpolicies towards the socio-economic development ofthe tribals leading to their empowerment. In order toimplement the schemes that benefit the target groups,the schemes were rationalized through application of

Zero Based Budgeting (ZBB). In this exercise, 25schemes implemented during Ninth Five Year Planwere brought down to 14 (10 Central Schemes and 4Centrally Sponsored Schemes) in the Tenth Five YearPlan. However, while the Central Sector Scheme of�Village Grain Banks� was transferred to the Ministryof Agriculture, a new Centrally Sponsored Schemeof �Rajiv Gandhi National Fellowship� for ST studentsin the Annual Plan 2005-06 has been approved forimplementation.

11. The Division participated in various meetingsorganized by the Ministry of Tribal Affairs to discussvarious aspects viz., development of forest villagesfocusing the tribals and development of PrimitiveTribal Groups (PTGs), rights of tribals over forestsnot only to ensure their livelihood but also for theiroverall economic development. Guidelines were issuedfor effective formulation and implementation of TSPstrategy both at Centre & State levels, speciallystressing the need to allocate funds under TSP, notless than population percentage of Scheduled Tribesin the States/UTs. The development of 75 PrimitiveTribal Groups (PTGs) spread over 15 States/UTscontinued to assume priority importance during theAnnual Plan 2005-06. To this effect, the nodalMinistry was suggested to formulate comprehensivePTG specific projects to suit their socio-economicneeds and thus ensure their survival, protection anddevelopment. The division had effectively participatedin various meetings held in the Ministry of TribalAffairs both for examining various PTGs specificdevelopment project proposals and suggested effectiveand appropriate measures to be taken by NGOs whohave been sponsored to undertake such projects.

12. The implementation of various schemes bythe Ministry of Tribal Affairs in terms of pace ofexpenditure and physical achievements has beenreviewed during the Annual Plan 2005-06 and theMinistry has been suggested to fix annual andquarterly targets both in terms of physical and financialtargets to enable the scheme more monitorable.Similarly, the review of implementation of variouswelfare and development programs by the StateGovernments has also been taken up. Theimplementation of Tribal Sub-Plan in the CentralMinistries/ Departments and States/UTs was reviewedwith a view to suggest and revamp the effective


21

mechanism for implementation of Tribal Sub-Planunder the chairmanship of Dr. B.L. Mungekar,Member, Planning Commission.

13. Working Group Meeting to discuss andfinalise the Annual Plan 2005-06 of the StateGovernments were held. While reviewing the progressof various policies and programs of tribal developmentin the State Sector, assessment of the impact was madebesides giving State specific suggestions for effectiveimplementation of various programs.

14. During the year 2005-06, the Divisionexamined Annual Plan proposals of the Ministry ofTribal Affairs. Among others, the Cabinet Note onScheduled Tribes (Recognition of Forests Rights) Bill2005 was examined and appropriate comments wereoffered. EFC and Cabinet Notes on National RajivGandhi Fellowship for tribal students were examinedand comments were offered. Sub- Committee was setup to prepare a base paper for formulation of EleventhFive Year Plan covering and focusing on ownershiprights over forests, rehabilitation and resettlements ofProject Displaced People(PDP), formulation of TribalSub-Plan, effective implementation of PESA and toreview the Central and Centrally Sponsored Schemesand Lined Alienation Act in Scheduled Areas.

4.3 COMMUNICATION &INFORMATION DIVISION

1. Communication and Information Division isprimarily concerned with the Plans, programmes andpolicies relating to Telecom, Postal, Information andBroadcasting and Information Technology sectors ofthe economy. During the year the major items of workhandled include examination of various policy issuesand examination and finalisation of Annual Planproposals for Telecom, Posts, IT and I&B sectors. Theproposals submitted by the respective Ministries /Departments in the above areas were criticallyexamined.

2. C&I Division has been designated as theNodal Division for �National Knowledge Commissionto the Prime Minister�. Shri Sam Pitroda will beChairperson and Dr P.M. Bhargava will be Vice-Chairperson. The Members of the Commission will

be Shri Nandan Nilekani, Dr. Deepak Nayyar, ShriAshok Ganguly, Dr. Andre Beteille, Dr. Jayati Ghoshand Dr. Pratap Bhanu Mehta. The Commission willadvise the Prime Minister on matters relating toinstitutions of knowledge production, knowledge useand knowledge dissemination. The mandate of theCommission is to sharpen India�s �knowledge edge�.The Terms of Reference of the Commission are asunder:

Ø Build excellence in the educational system tomeet the knowledge challenges of the 21stcentury and increase India�s competitiveadvantage in fields of knowledge.

Ø Promote creation of knowledge in S&Tlaboratories.

Ø Improve the management of institutionsengaged in intellectual property rights.

Ø Promote knowledge applications inagriculture and industry.

Ø Promote the use of knowledge capabilities inmaking government an effective, transparentand accountable service provider to the citizenand promote widespread sharing ofknowledge to maximize public benefit.

3. Planning Commission is implementing twoIT projects, namely (i) Spatial Data Infrastructure forMulti-Layered Geographical Information System(GIS) for Planning and (ii) Computer Aided DigitalMapping Project or the six cities � Chennai,Ahmedabad, Kolkata, Hyderabad, Mumbai andBangalore.

4. The objective of the Project relating to SpatialData Infrastructure for Multi-Layered GeographicalInformation System (GIS) for Planning is to buildnecessary framework to evolve self-sustaining systemfor continuing development of GIS applications, in thearea of Resource & Infrastructure Planning, DisasterManagement and Soil & Water Conservation etc. Thebasic aim of the proposal was to strengthen thenecessary infrastructure at the district level to set upand then constantly update comprehensive village level


22

spatial and non-spatial information systems. Startingwith village as a unit, multi-layered databases wouldbe created and maintained for block and district levels.

5. The convergence of Information Technologywith Communication Technology as Information &Communication Technology (ICT) has brought aparadigm shift in the approach for management ofdata & information for planning. GeographicalInformation System (GIS) has emerged as powerfultool that has potential to organize complex spatialenvironment with tabular relationships.

6. The objectives are to develop minimum multi-layer GIS for planning purpose in G2G domain, toset-up National GIS facility with State of the ArtSpatial Data Infrastructure (SDI) with mirror serverfacility at Planning Commission supported by SDI atState & District Level, Web-GIS, GIS DataVisualization & thematic mapping and TrainingServices for planning and institutional Arrangementswith spatial data agencies for data sharing for GIS forplanning in G2G domain. The applications are to bedeveloped in standalone GIS, distributed GIS as wellas Web-Based Network � Centric GIS environmentsto demonstrate the benefits of GIS at various levelsof planning & decision-making. Expenditure FinanceCommittee (EFC) under the Chairmanship ofMember-Secretary, Planning Commission approvedthe project at a total cost Rs.40.50 crore. The Projectis expected to be completed in 15 months.

7. Computer Aided Digital Mapping Project forsix Cities i.e. Chennai, Ahmedabad, Kolkata,Hyderabad, Mumbai & Bangalore is essential forlomgterm planning and other usages. Digital mapsare useful for all the agencies in the Cities. The benefitsof the Project will provide better services to citizensat large, better preparedness for disaster management,etc. The proposal envisages establishment of aMetropolitan Area Network (MAN) for each city sothat all Departments of City Administration couldhave access to data without sacrificing the securityconcern of the country. NIC has completed ComputerAided Digital Mapping Project for Delhi City. Keepingin view the utility of this Project, the PlanningCommission has requested NIC to replicate the sameProject in six more metro cities.

8. The objectives of the project are Creation ofDigital Basemaps of Ahmedabad Mumbai, Bangalore,Hyderabad and Kolkata, to establish a communicationnetwork to exchange the data among the utilityagencies in secured environment, Mapping of utilitynetwork and related appurtenances by the utilityagencies, Analysis facilities for each utility e.g. water,sewage, electricity, roads, communication, gas,pipelines, etc. EFC under the Chairmanship ofMember-Secretary, Planning Commission approvedthe project at a total cost Rs.47.67 crore. The Projectis expected to be completed in 15-20 months.

9. The Division also looks after the printing anddistribution of the publications of the PlanningCommission. Some of the major publications broughtout during the year included:

Ø Expert Group on the criterion for allocationof funds under major rural poverty alleviationprogramme.

Ø Detailed Demand Grant 2004-05

Ø India on the Move 1,2,& 3 (Shri K.C. Pant,Speeches)

Ø PPP Sub-Group on Social Sector

Ø Annual Report 2004-05 (Hindi)

Ø Annual Report 2004-05 (English)

Ø �Report of the Taskgroup on Revamping &Refocussing of National AgriculturalResearch�

Ø Bio-fuel Report

Ø Bamboo Development Report

Ø Annual Plan Document 2004-05

10. The Division also acts as the nodal Divisionfor maintaining and updating the website of thePlanning Commission. Efforts were constantly madeto keep the site up-to-date by putting on the web thelatest publications of Planning Commission including,Mid-Term Appraisal of Tenth Five Year Plan, reports


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of Task Forces set up for the Tenth Plan, Study Reportsand other Planning Commission publications. Therewas also a constant stream of queries, commentsincluding appreciation and suggestions on the websitecontent and about publications of the PlanningCommission. About 486 such queries were respondedto satisfactorily and on immediate basis.

11. The Division is also associated in themanagement of �Soochana Dwar� or �Cyber Cafe�. Thefacility enables visiting media persons to browse theInternet for development information. It also providesinformation and publications to visitors.

12. �Internal Information Service� is anotherservice assigned to the Division. It includes bringingout a computerized Daily Digest of selected newsitems and providing newspaper clippings of Planrelated items to the Office of the Deputy Chairman,MOS and other senior officials of the Commissionon daily basis. Both the services continued well duringthe year.

Telecom Sector

13. Telecommunication is one of the primesupport services needed for rapid growth andmodernization of various sectors of the economy. Ithas become especially important in recent yearsbecause of enormous growth of InformationTechnology (IT) and its significant potential for theimpact on the rest of the economy. India is perceivedto have a special comparative advantage in informationtechnology and in IT enabled services. The extent of

advantage depends critically on high qualitytelecommunication infrastructure.

14. Telecommunication is one of the few sectors,which has witnessed the most fundamental structuraland institutional reforms since 1991. The entire sectoris now open to unrestricted competition in allsegments except cellular services where spectrum is alimiting factor. The reforms process in the telecomsector is still on, aiming to remove the balance hurdlesand limitations. One such hurdle is ensuring expansionof sustainable connectivity in rural areas. To encouragerural telephony, the Govt. has set up a UniversalService Fund earlier.

15. The opening of the sector has not only led torapid growth but also helped a great deal towardsmaximization of consumer benefits. The tariffs havebeen falling continuously across the board as result ofhealthy and unrestricted competition. Besides, as aresult of the various measures and initiatives taken bythe Govt., the country is now fast emerging as one ofthe leading telecom nations. Since beginning of theNinth Plan, the telecom services have registered aconsistently high growth rate of more than 20 percent per annum. The robust private sectorparticipation has resulted in unprecedented growthin the cellular and WLL services. As a result of thisfast growth, Indian telecom network has emerged asthe fifth largest network in the world. The segment-wise status is given below :

16. The major policy issues/notes examined in theTelecom sector in the year included:


Telecom Network as on 31-11-2005(Lakh lines)

Items PSUs Private Total

Fixed including 391.23 9.02 400.25

WLL 22.20 57.42 79.62

WLL-M 173.70

Cellular 147.26 405.89 726.85

Total DELs 560.69 646.04 1206.73

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(i) Package for BSNL:

Corporatization of Department of Telecom�sOperational network by creating BharatSanchar Nigam Limited (BSNL) in October2000 had raised a few issues. One such issueis reimbursement of licence fee and spectrumcharges, which forms bulk of the internalresources of the PSU. The Department ofTelecommunications moved a proposal for a�package of measures in the form of financialand physical relives including form of capitalstructure to be provided to BSNL�. TheDivision examined this proposal and severalother issues related to improving the financialhealth of BSNL in addition to budgetarysupport by the Government for expansion oftelecom network in the rural area. CCEA�sdecision in this regard is awaited.

(ii) Foreign Investment in Telecom Sector:

Telecom sector is one of the major sectorattracting huge foreign investment. TheDepartment of Telecommunication moved aCabinet Note. The Division examined thesame. The Cabinet agreed to the proposal,however, due to some implementationproblems the guidelines approved by theCabinet were amended later on by anotherCabinet Note. The same has been notified inthe meantime.

(iii) Absorption of Group A officers of IndianTelecom Services:

Department of Telecom moved a CabinetNote for taking care of the situation arisingout of non-acceptance of the offer by a largenumber of Group A officers. The same wasexamined by the Commission. The Cabinethas approved a proposal including thepreparation of contingency plan etc.

(iv) Setting up of R & D joint venture betweenC DOT and Alcatel, France:

With a view to promoting R & D in thetelecom sector a joint venture is being set up

at Chennai. The Division was associated withdifferent policy options and mode of financingof the same.

(v) Review up of the Licence Fee and EntryFee for selected services in Telecom Sector:

On the recommendations of TRAI,Department of Telecom moved a note forconsideration of Telecom Commission witha view to reducing the licence fee and entryfee for long distance connectivity, v-satnetwork etc. with a view to bringing in morecompetitiveness and reducing the prices formaking it more and more affordable. Thesame was examined in detail. Necessarynotification has since been issued.

Postal Sector

17. Postal services in India continue to be agovernment monopoly except for courier services.Indian postal network is the largest in the world interms of post offices/outlets numbering 155618.About 90% of the outlets are located in rural area.The Department has a manpower of about 5.75 lakhdivided almost equally between permanent employeesand extra departmental employees. The entire Planexpenditure of the Department is met out of budgetsupport.

18. Postal sector is one of the few sectors whichhave been least touched by the reforms processinitiated in early 90s. The Tenth Plan envisages tomake the Department self-financing. This is envisagedto be achieved through a two-pronged strategy ofreducing costs and increasing revenue through variousmeans including introduction of new services.Modernization and technology upgradation occupiesa central place in this strategy. Computerization ofthe postal network and connectivity is the single mostimportant activity envisaged in this regard.

19. Identification and adoption of UniversalPostal Service Obligation (UPSO) is one the keyelements of the strategy envisaged for containing therevenue deficit of the Deptt. and making it self-financing. It involves implementation of the principles


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of commercial pricing for non-UPSO items. Anextensive exercise is required to be undertaken by theDeptt. to put in place the required mechanism forimplementing this. A consultant has been appointedby the Department of Posts to recommend on variousissues related for identification of services for UPSOand those for commercial lines.

20. The Department has vast unused estates atprime locations all over the country. For the purposeof development of the same for raising non-tariffrevenue, Department of Posts is in the process ofsetting up of Special Purpose Vehicle. Various issuesin this regard were examined in the Commission andconveyed to the Department.

Information Technology

21. Information and Communication Technology(ICT) today permeates almost every sphere of humanendeavor. Investment in ICT has the largest multipliereffect rippling through the economy than any othersector. The objective before the country is to ensuresustained growth of software and IT enabledservices(ITES) and increase India�s share in the globalmarket; to put in place the basic policy frameworkfor making India a major force in the hardwaremanufacturing sector; to device appropriate policy forgreater use of IT for promoting more efficient,transparent and responsive governance; to takenecessary steps for taking IT to masses besides keepinghigh level R&D as the central force to drive the growthof IT industry.

22. Indian Information Technology (IT) and ITenabled services continued to chart remarkable growthin the year 2004-05 also. The production of Indianelectronics & IT industry is estimated at Rs.147,610crore during 2004-05 recording a growth of 24.8%.It has achieved a CAGR of 32% in turnover and 35%in exports during last five years.

23. The IT services and software continue to bethe dominant sector in the Indian IT industrycontributing 58.6% of the total turnover during 2004-05.Hardware accounted for 21.3% and ITES- BPOcontributing the remaining 20.1%. Indian software

and services export is estimated at Rs.78230 crore(US$ 17.2 billion) in 2004-05 as compared toRs.58240 crore(US$ 12.8billion) last year indicatingan increase of 34%.The contribution of IT Services& Software was even higher in exports as it accountedfor as much as 67.8% of the total exports revenue ofIT sector. ITES-BPO was the second most importantsegment contributing 28.4% and hardware exportsaccounting for about 3.7%. The export revenues fromITES BPO is likely to be US $5.1 billion in the year2004-05 compared to US $3.6billion in 2003-04; agrowth of about 42%.

24. USA accounted for about 69% of the totalIT-ITES exports from India (2003-04) followed byEurope accounting for 23% and rest of the worldproviding 8% of the export market. The share of ITindustry in GDP grew from 1.2% in 1997-98 to 4.1%in 2004-05. The number of professionals employedin India by IT and ITES sector is estimated at1,045,000 in March, 2005

25. C&I Division received a number of proposalsfrom Department of Information Technology (DIT)for �in-principle� approval by Planning Commission.All these proposals were examined and approvalsgranted after extending necessary suggestions basedon their technical feasibility, financial viability andpriorities and objectives laid down under the TenthPlan. Some of the major policy issues/ Notes examinedby the Division during the year included:

E-Governance

26. So far e-Governance projects have beenundertaken through individual initiatives. National e-Governance Plan (NeGP) is an integrated approachwherein it will be implemented through MissionMode Projects (MMPs) by the Line Ministries of theCentral Government, State Governments andintegrated projects, with clearly defined goals. Use ofinformation technology in governance is a tool forensuring good governance. To achieve the aboveactivities such as Process Re-engineering, CapacityBuilding, Training, Assessment and Awareness are pre-requisite for the success of NeGP. C&I Division isconcerned with the implementation of the National


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e-Governance Programme, including the issuesrelating to the MMPs.

27. National E-Governance Plan (NeGP) seeksto create the right governance and institutionalmechanisms, set up the core infrastructure and policiesand implements a number of Mission Mode Projectsat the Center, State and Integrated Service levels tocreate a citizen-centric and business-centricenvironment for governance. NeGP in its current formconsists of 10 functional components and 26 MissionMode Projects (MMPs) to be executed over a fouryear period. E-Governance has been identified as apriority item in the Tenth Plan and is included in theUPA Government�s National Common MinimumProgramme.

28. Line Ministries would be responsible for theimplementation of Mission Mode Projects (MMPs).As regards funding arrangements the same is proposedto be either in the Plan or Non-plan provisions of theMinistries/Departments of the Central or StateGovernments though some projects are beingimplemented on a self-financing model through levyof service fee adopting Public Private Participation(PPP). The funding aspects will be worked out bythe nodal Ministry/Department.

29. Apex Committee for the NEGP has beenconstituted with Cabinet Secretary as its Chairmanfor overseeing the programme and for providingstrategic directions for implementation and resolvinginter-Ministerial issues. Member-Secretary, PlanningCommission Commission is the ex-officio Memberof the Committee.

State Wide Area Network (SWAN)

30. State Wide Area Network (SWAN) is one ofthe mission mode projects which is being undertakenby Department of Information Technology. Theproposal for establishment SWAN in all 29 States and6 UTs across the country has been estimated as Rs.3334 crores out of which the DIT contribution willbe Rs. 2005 crores. The project will be spread over aperiod of 5 years and to be implemented by Statedesigned agencies. The State Wide Area Networkswould be established across the States/UTs linking

the inter-State Nodes (PoPs) at the District and Block/Tehsil Hrs. (and also Sub-Divisional Hqrs., as the casemay be) and also linking inter-State Nodes throughNICNET. The SWAN has been included as a coreinfrastructure project as part of the MMP. Theproposal has been approved by the Cabinet.

31. An Empowered Committee on SWAN hasbeen constituted with Secretary, DIT as chairman andrepresentatives from Planning Commission,Department of Expenditure etc. as Members forclearing proposals from each State.

Capacity Building

32. Capacity Building is a major component ofNeGP and Plan funds are being allocated to the States.For the capacity building for the National e-Governance Plan, Additional Central Assistance(ACA) of Rs. 17 crores has been provided for thefinancial year 2004-05. There is a budget provisionof Rs. 300 crores for the ACA for Capacity Buildingunder NeGP for the financial year 2005-06.

Project proposal �Joint proposal for setting up ofNanoelectronics Centres at IISc, Bangalore andIIT, Bombay.

33. The nanotechnology, an hitherto nascent anddisruptive interdisciplinary technology will beexpected to usher in new industrial revolution incoming years. The investment in R&D in the countryin the nanotechnology field is meager as comparedto global investments. Therefore, the plan is to createinfrastructure for nanoelectronics andnanometrology research at national level and also tofund research projects in specific areas such asnanomaterials, nanodevices, carbon nano tubes,nanosystems etc. The setting up of NanoelectronicsCentres at IISc, Bangalore and IIT, Bombay is thefirst major project in this area. EFC under theChairmanship of Secretary, DIT recommended theproject proposal �Joint proposal for setting up ofNanoeletronics Centres at IISc, Bangalore and IIT,Bombay� with a total outlay of Rs.99.80 crore (IISc,Bangalore � Rs.49.90 crore, IIT, Bomay � Rs.49.90crore) for a duration of 5 years.


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Project proposal �Special Manpower Developmentfor VLSI Design & Related Software Phase-II�

34. This proposal is to initiate the second phaseof the special manpower development programmeinvolving 7 Resource Centres and 25 ParticipatingInstitutions and targeting an annual output of 2425B.Tech/ M.Tech students with specialization in thearea of VLSI design and related software. EFC underthe Chairmanship of Secretary, DIT recommendedthe project proposal �Special Manpower Developmentfor VLSI Design & Related Software Phase-II� witha total outlay of Rs.49.98 crore for a duration of 5years.

Project proposal �Information Security Educationand Awareness Programme�.

35. The aim of this project is to build and enhanceinformation security skill in the country. EFC underthe Chairmanship of Secretary, DIT recommendedthe project proposal �Information Security Educationand Awareness Programme� with a total outlay ofRs.79.50 crore for a duration of 5 years.

Project proposal �Setting up of Bio-IT Park�.

36. The need for a dedicated Bio-IT Park arisesfrom the aspiration of India to emerge as the leaderin the Bio-IT sector. The project is a Central Schemeenvisaged to be implemented under a Public-PrivatePartnership (PPP) model wherein the Government(through its designated agency STPI) would be aminority stakeholder and the private promoter wouldbe the majority stakeholder. The �outputs� of the Bio-IT Park would be in the form of the proposedbuildings, which will house companies, wet labs, drylabs, and business facilities such as conference halls,meeting rooms etc. over an area of 100 acres. Thesignificant �outcomes� are enhancing the FDI flow inIT & Biotechnology sector, serving as a platform forthe industry, research institutions and academia tointeract with each other, on a regular basis, to forge asymbiotic relationship, and act as a Global Hub forresearch, development and innovation in the fields ofBio-IT. EFC under the Chairmanship of Secretary,DIT recommended the project proposal �Setting upof Bio-IT Park� with a total outlay of Rs.95.82 crore

for a duration of 5 years under PPP model with theGovernment contribution of Rs.30.18 crore.

Project proposal �DISNIC-PLAN Project:Information Technology for Micro-LevelPlanning�

37. Micro-level planning is progressively gainingmomentum in India, in view of the enactment ofPanchayat Raj Institutions at grassroot level. Theplanning steps, the data needs, the institutionalrequirements, the macro-micro linkages and theinformation flows are necessary to make the planningprocess more effective at grassroots. In order toprovide a framework for these issues and to strengthenthe planning machinery in districts, this project wasprepared by National Informatics Centre (NIC) andsubmitted to the Commission for approval. PlanningCommission agrees �in-principle� to theimplementation of the pilot project on IT for Micro-level Planning initially in the two states viz. entire Stateof Goa, as it is a very small State and one district ofHaryana for perfecting the module before extendingthe pilot project to all the identified 28 districts of thecountry. The Secretary, DIT had given the approvalfor implementation of this pilot project at a total costof Rs.2.14 crore.

State Plans

38. The division has examined the Annual Plan2005-06 proposals, Performance Review Reports ofAnnual Plan 2004-05, Half-Yearly (April-September2005) Performance Review Reports, and Annual Plan2006-07 proposals of all States and UTs and offeredsuggestions as far as IT sector is concerned.

39. The division has been associated for puttingin place the required mechanism for ensuring (i)allocation of 2 to 3 percent of the Plan funds of theCentral Ministries and States/ UTs for spending onIT related activities and (ii) all IT related expenditurewas booked under a separate Head in order to give itthe required focused attention. The Department ofEconomic Affairs had already issued a notification on9th July 2003 for opening up of a separate Head forIT sector in all the Central Ministries, States and UTs.Consequently, in a recent communication dated 20th


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September, 2005 from Joint Secretary (SP), PlanningCommission to the Planning Secretaries of all States,a new set of formats were proposed for furnishingthe details of Annual Plan 2006-07. In this new formatfor Annual Plan 2006-07, the Major Head�Communications� was removed and under the MajorHead �Science, Technology & Environment� a MinorHead �Information Technology & E-Governance�was included. All the State Governments hereinafterneed to furnish under this Head the informationrelating to SWAN, National E-Governance Plan,MMP, Computerization of Municipalities, LandRecords, Agriculture, Education and any other.

Information & Broadcasting

40. Major advances in the field of Informationand communication technologies (ICT) during lastfew years had a great impact on Information &Broadcasting sector. New ways of carryingcommunication to the people have emerged, thusopening of new challenges for traditionalbroadcasting, Information & film sectors etc. torefocus their priorities radically. However, the basicgoals of providing people with developmentalinformation and wholesome entertainment at aminimal cost facilitating healthy growth andcompetition has remained as valid as ever.

41. Half-yearly Performance Review(HPR)system has been introduced by the Commission toeffectively monitor the implementation of Planscheme, I & B sector.

42. The major policy issues/Notes examinedduring the year included the following:

Ø Special Package for improving AIR/Doordarshan services in the North EasternRegion (including Sikkim) and IslandTerritories: Though Radio & Televisioncoverage in the North-east and Islandterritories has reached quite a fair position,many of the fringe areas are yet to be covered.The Special Package approved by the Cabinetendeavors to strengthen the coverage in thefringe areas. This is envisaged to be achievedthrough adoption of a two-pronged strategy

of expansion of terrestrial mode andintroduction of Ku-Band transmission. Thepackage in its first phase has been approvedby the Government. The second phasecontains a number of terrestrial transmitters,both upgradation as well as new transmittersto improve the signal quality andprogrammes. The proposals are yet to becleared by the EFC.

Ø Special Package for improving AIR/Doordarshan services in Jammu and Kashmir:For J&K Special package is envisaged toexpand terrestrial coverage DD1, augmentprogramme production facilities, enhance verylow power transmitters for relaying regionalservice programmes and expand terrestrialcoverage. The Special Package approved bythe Cabinet endeavours to strengthen thecoverage in the fringe areas. Implementationof the second phase is under consideration ofthe Government. The second phase containsa number of terrestrial transmitters, bothupgradation as well as new transmitters toimprove the signal quality and programmesincluding expansion through ku-band i.e.DTH platform.

Ø Introduction of Satellite TV for covering the100% potential TV population by directsatellite distribution in Ku-Band:Doordarshan presently has reached 410million TV population in 82 million TVhomes of the country covering almost 90%of population and about 80% of area.Covering the balance 10% of the populationby terrestrial mode is estimated to cost anadditional investment of about Rs.4000 croreand a recurring expenditure of Rs.500 croreannually. As against this, satellite basedexpansion through Ku-band making availablethe TV services to far-flung/sparsely populateduncovered areas is projected to cost only aboutRs.500 crore. Keeping this in view, theGovernment has approved Ku-Band (satelliteDistribution) Project for coverage of 100%potential TV population.


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Ø Expansion of FM Radio Service throughprivate sector II phases: Following therecommendations of the Sub-group, �Carriage& Technology� under the Steering Committeeset up by the Planning Commission, Ministryof I &B moved a note for consideration ofthe Cabinet. The same was examined in theCommission and views of the Commissionwere reflected in the Cabinet Note. TheCabinet approved the proposal. For expandingcoverage of FM radio services.

Ø National Press Centre: National Press Centre(NPC) is one of the priority scheme of PIB.EFC has approved Rs.35 crore forconstruction of sate of the art world classauditorium .The designing, planning andexecution of the scheme is entrusted withNational Building Construction Corporation(NBCC). The Ministry is in the process ofsigning an MoU with NBCC.

4.4 DEVELOPMENT POLICY DIVISION

1. Activities of the Development Policy Divisionmainly concern short-term monitoring of the macro-economic parameters of the economy, getting researchdone in the areas of interest and suggesting policyreforms. The Division also examines therecommendations on Minimum Support Prices(MSP) of various crops emanating from theCommission of Agricultural Costs and Prices (CACP).In addition, it functions as the nodal division in thePlanning Commission in respect of subject matterspertaining to the Department of Food and PublicDistribution.

2. During the year 2005-06 (up to December),the following activities were performed:

Ø Prepared the section on �MacroeconomicOverview� for Chapter-I of the Annual Plan2005-06.

Ø Finalized the Note for the Committee ofSecretaries on Public-Private-Partnership inthe Social Sector.

Ø Set up a Committee on TechnologicalInnovation and Venture Capital and organizedmeetings and prepared background papers.

Ø Prepared Part II (Appendices) of the AgendaNote, to be put up for the consideration ofthe NDC Empowered Sub-Committee onRemoval of Barriers to Internal Trade.

Ø Coordinated the work on preparation of theBackground Material for the EconomicEditor�s Conference (2005).

Ø Provided comments on various policy issuesrelating to regulation, directorship incompanies and FDI related matters.

Ø Prepared briefs on issues such as commodityprice stabilization fund, strengthening offutures market, regulatory framework, etc.

Ø Prepared the Report on Reconstruction andDevelopment of Nangarhar Province(Afghanistan) as part of India�s Aid Commit-ment towards Afghanistan, on request fromthe Ministry of External Affairs.

Ø Serviced the Task Group on ComprehensiveMedium Term Strategy for Food andNutrition Security, as a follow up of theCommon Minimum Programme of theUnited Progressive Alliance. The Task GroupReport was submitted in April 2005.

Ø Prepared the chapter on �Public DistributionSystem� for inclusion in the Annual Plan2005-06.

Ø Examined the recommendations onMinimum Support Prices in respect of foodgrains, oil seeds, sugarcane, copra and jutemade by the Commission for AgriculturalCosts and Prices.

Ø Organized the Quarterly Performance Review(QPR) and Half Yearly Performance ReviewMeetings of the Department of Food andPublic Distribution, under the chairmanshipof Member, Planning Commission.


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Ø Organized the Annual Plan 2006-07discussions of the Department of Food andPublic Distribution. The Division alsoparticipated in the meeting on the revisedestimates of Annual Plan 2005-06 held underthe chairmanship of Secretary, Department ofExpenditure, Ministry of Finance.

Ø Set up a Core Group on Food and NutritionSecurity, prepared the background papers andorganized three Brain Storming Sessions withthe concerned Central GovernmentDepartments/ Agencies/ Citizens� Groups andthe State Governments/UT Administrations.

4.5 EDUCATION DIVISION

1. The Education Division is an importantsectoral Division of the Planning Commission thatactively interacts with the nodal Ministry of HumanResource Development (MHRD), Ministry of YouthAffairs and Sports and Department of Culture. Duringthe year under review all aspects of development policyand planning in the field of education, art and culture,sports and youth services were handled by theDivision.

2. One of the major activities during the yearunder review was the finalistion of the Chapter onHuman Resource Development as part of the Mid-Term Appraisal of the Tenth Five Year Plan. The MTAwas carried out with a view to presenting a detailedassessment of the performance of various schemes andprogrammes meeting the Tenth Plan targets.

3. The year 2005-06, being the fourth year ofthe Tenth Plan, the major activity during the yearrelated to continuation of the Plan schemes viz.,granting of �in-principle� approvals and examiningSFC and EFC proposals, in respect of the new andemerging schemes of the Departments of ElementaryEducation and Literacy and Secondary and HigherEducation under the MHRD. The QuarterlyPerformance Review Meetings were held under theChairmanship of Member (Education) to review thephysical performance and pace of expenditure of theDepartments of EE&L, S&HE under MHRD andthe Ministry of Sports and Youth Affairs and the

Department of Culture. These QPRs criticallyexamine the progress, identified the problems inimplementing schemes and suggested suitablesolutions for better targeting/utilization of funds.

4. For monitoring of Outcomes and quantifica-tion of deliverables, the Education Division prescribedformats for collecting information for the variousschemes/programmes.

5. The MHRD had reconstituted the CentralAdvisory Board of Education (CABE), in August,2004. This is the highest policy making body in thefield of education. The CABE had constituted thefollowing seven Committees on various subjects/issuesof importance, whose reports have been submittedto the Government :

Ø I Autonomy of Higher EducationInstitutions.

Ø II Universalisation of Secondary Education.

Ø III. Girls� Education and the Common SchoolSystem.

Ø IV. Regulatory mechanisms for textbooks andparallel textbooks taught in schools andoutside the Government system.

Ø V. Financing of Higher and TechnicalEducation.

Ø VI Integration of Culture Education in theSchool Curriculum.

Ø VII. Free and Compulsory Education Bill andother issues related to Elementary Education.

6. �The officers of the Division participated inthe CABE Committee meetings and in theexamination of their reports/recommendations. TheCABE Committee on Financing of Higher andTechnical Education was constituted under theChairmanship of Member (Education), PlanningCommission � Dr. Mungekar with secretarial supportof the Division. Along with the CABE CommitteeReports, the Education Division also examined the


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National Curriculum Framework 2005 adopted bythe MHRD in July-August 2005 for the schools inthe country.

7. The officers of the Division interacted withthe Ministries/Departments on implementation ofmajor schemes. There was active participation in themeetings of the Project Board which examined theDistrict Elementary Education Plans (DEEP) underthe SSA and also in the Joint Review Mission of theDPEP/SSA conducted in April 2005. The AnnualBoard/Council/Executive Committee meetings of theautonomous bodies of the MHRD namely, theNCERT, NIEPA and NCTE etc. were attended bythe concerned officers in the Division.

8. Allocations under the sectors of Education,Sports, Youth Affairs, Art and Culture in the CentralPlan of the concerned Ministries/Departments andalso in the Plans of States/UTs for the year 2006-07were finalised by the Division during the period underreview.

2. All Members of the Commission are on part-time basis and do not claim any salary for theirassociation with the Commission. They have declinedany status of equivalence and have chosen to serve onthe Commission as Professionals.

3. Terms Of Reference Are �

Ø To build excellence in the educational systemto meet the knowledge challenges of the 21stcentury and increase India�s competitiveadvantage in fields of knowledge;

Ø To promote creation of knowledge in S&Tlaboratories;

Ø To improve the management of institutionsengaged in intellectual property rights;

Ø To promote knowledge applications inagriculture and industry; and

Ø To promote the use of knowledge capabilitiesin making government an effective,transparent and accountable service providerto the citizen and promote widespread sharingof knowledge to maximize public benefit.

4. The Planning Commission is the nodal agencyfor the NKC for administrative, logistic, planning andbudgeting purposes as well as for handling Parliamentrelated responses. The CPR has been assigned to actas the Secretariat of the Commission and a grant isreleased to the CPR by the Planning Commission todefray the travel expenses, expenses on services ofyoung professionals, rent, office contingencies, etc.

4.7 Environment & Forests Division

1. Chapter-14 of the Mid Term Appraisal (MTA)Document relating to Environment & Forests was


4.6 NATIONAL KNOWLEDGECOMMISSION TO THE PRIMEMINISTER

1. A National Knowledge Commission to thePrime Minster has been constituted w.e.f.13.6.2005 with the following composition:-

Shri Sam Pitroda Chairman

Dr.Pushpa M.Bhargava Vice-ChairmanFormer Director,Centre for Cellular andMolecular Biology

Shri Nandan Nilekani MemberCEO,Infosys Technologies Ltd.

Dr. Andre Beteille Member

Dr. (Ms.) Jayati Ghosh MemberProfessor,Jawaharlal Nehru University

Dr. Ashok Ganguly MemberChairman,ICICI One Source Ltd.

Dr. Deepak Nayyar MemberEx Vice Chancellor,Delhi University

Dr.Pratap Bhanu Mehta MemberPresident & CEO, ConvenorCentre for Policy Research

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finalised after detailed discussions with the Ministryof Environment and Forests (MOEF) and otherstakeholder organisations.

2. The Division convened Quarterly PerformanceReview Meetings for the year 2004-05 as well as forthe quarter January-March 2005. Half YearlyPerformance Review for the period ending September2005 was also held. In these meetings chaired by theMember concerned, Financial / Physical Performanceof the Ministry in Plan Schemes, Initiatives and actiontaken to achieve Tenth Plan identified Targets werediscussed and minuted. Follow-up with the Ministryon these items is being carried out.

3. For the Outcome Budget (2005-06), inputswere furnished to Programme Outcome and ResponseMonitoring Division after consulting the MOEF.

4. Action has been initiated by the E&F divisionfor formulation of the Annual Plan (2006-07) of theMinistry of Environment & Forests (MOEF). TheDivision convened the meetings for Annual Plan2006-07 under the Chairmanship of Adviser andMember concerned. In these meetings, Ministry wasadvised to take up launching of various flagshipschemes of the Ministry without any further delayand also initiate re-engineering of manpower andassess the relevance of research in all the institutesunder the Ministry.

5. Other Activities of the Division included: -

Ø Preparation of draft replies to / furnishing ofinputs to other Divisions / Ministries forParliament Questions were dealt.

Ø Examination of Draft Cabinet Note onNational Environment Policy, 2005comments to Ministry of Environment andForests.

Ø Processing of Detailed Project Report (DPR)on Bio-diesel forwarded by the Ministry ofRural Development for �in principle�clearance.

Ø Participation in the meetings of WorkingGroup on Sunderbans, Task Force on Arsenic,

Bio-diesel, to discuss Terms of Reference(TOR) for evaluation of National RiverConservation Plan (NRCP), Biodiversity,World Expo 2005, Clean DevelopmentMechanism (CDM), etc.

Ø Scrutiny of Externally Aided Project (EAP) -Biodiversity Conservation throughcommunity based Natural ResourcesManagement for External Aid costing US $3 million proposed by MOEF/EnvironmentalPlanning & Coordination Organisation(EPCO), Bhopal (M. P.).

Ø Participation in various National/InternationalConferences/Training Workshops on Bio-diesel, Bamboo, etc.

4.8 Financial Resources Division

1. Assessment of financial resources for thePlans is an integral part of the planning exercise. Theformulation of the Plan involves in-depth study ofthe resource mobilization effort vis-à-vis approvedPlan outlay of the Centre and State Governmentsduring the previous Plan (Annual / Five Year) alongwith the additional resource mobilization effortsrequired for meeting the targets for the ensuing plan.The financial Resources Division is responsible forsuch assessment of financial resources for the FiveYear Plan and Annual Plans for both the Centre andthe States.

2. During the period under review, the Divisionhas taken up the assessment of financial resources forthe Annual Plan for 2006-07 of the Centre and Statesand UTs and reviewed resources mobilization for theAnnual Plan for 2005-06. A chapter on financialresources together with an annexure providingdetailed statistical information was prepared for theAnnual Plan document for 2005-06. Assessment offinancial resources for the Central Sector Plan involvesdeciding the level of gross budgetary support (GBS)and evaluating internal and extra-budgetary resources(IEBR) of public sector enterprises. Aggregateresources for State and UT Plans consist of States�own resources and Central assistance. Assessment ofthe aggregate resources for State and UT Plans,


33

therefore, involves estimation of the budgetary as wellas extra-budgetary resource mobilization of States anddeciding the magnitude of Central assistance.

Annual Plan 2005-06 : Centre

3. The Annual Plan outlay of the Centre for2005-06 was finalized at Rs. 211253 crore consisting

of Rs. 110385 crore as budget support and Rs.100868 crore as Internal and Extra BudgetaryResources (IEBR) of Central Public sector enterprises.The financing of the outlay for Annual Plan 2005-06of the Centre is given in Table I along withcorresponding details for 2004-05.


Table I

Scheme of Financing GBS for Annual Plan of the Centre (Figures in Rs. crore)

S. Resources BE RE Provisional BE

2004-05 2004-05 2004-05 2005-06

1. Balance from Current Revenues (BCR) -21409 -32039 -26616 -16923

1a. External Grants 3598 3064 2564 3218

2. Balance from Non Debt Capital Receipts 25994 27131 28237 6058

3. Fiscal Deficit 137407 139231 127975 151144

4. Gross Budget Support for Plan (1+1a+2+3) 145590 137387 132160 143497

5. Assistance for State & UT�s Plans 57704 54858 52030 33112 *% Share in Total GBS 39.6 39.9 39.4 23.1

6. Budget Support for Central Plan (4-5) 87886 82529 80130 110385

% Share in Total GBS 60.4 60.1 60.6 76.9

7. IEBR of CPSEs 75834 68289 68289 100868

8. Central Plan Outlay (2+5) 163720 150818 148419 211253

* Excludes the loan component of Central Assistance for the Plan of States

Annual Plan 2005-06 � States

4. Aggregate resources for the Annual Plan for2005-06 for States and UTs with legislatures wereestimated at Rs. 1,49,240.57 crore, consisting of Rs.

82252.50 crore of States� Own Resources and Rs.66988.07 crore of Central Assistance. Table II belowgives resource mobilization during the Annual Plansfor 2004-05 and resources estimated for the AnnualPlan for 2005-06 of States & UTs (with legislatures).

Table - II(Rs. crore)

Resources 2004-05 2005-06AP LE AP

1. States� Own Resources (SOR) 61225.99 59351.06 82252.502. Central Asssistance 63468.80 @ 62027.99 ** 66988.07 *3. Aggregate Resources (1+2) 124694.79 121379.05 149240.57

@ CA for AP 2004-05 is as per Scheme of Financing approved by PC** LE as reported by States / UTs with Legislatures; * Includes loan component of Central Assistance

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Annual Plan 2006-07

5. The official level assessment of resources forthe Annual Plan for 2006-07 of Central Ministriesand Departments is going on. This process involvesexamination of and thorough discussion on theAnnual Plan proposals of Central Ministries andDepartments. Officers of the Division alsoparticipated in the exercise undertaken by theDepartment of Expenditure, Ministry of Finance forassessment of Internal & Extra Budgetary Resources(IEBR) of Central Public Sector Enterprises(CPSEs) for the Annual Plan for 2006-07.

6. With regard to Annual Plan for the States andUTs, detailed guidelines were issued to all States andUTs for formulating the scheme of financing of theirPlans. Proposed schemes of financing formulated byStates on the basis of guidelines deliberated in detail bythe Working Group on Financial Resources chaired byPr. Adviser, Financial Resource Division The Workinggroup consists of officers from F.R. Division of PlanningCommision, Department of Expenditure, Departmentof Economic Affairs, Reserve Bank of India, NABARDand representatives of respective State Governments. Theconsensus arrived at in working group discussions is thebasis for discussions between the Deputy Chairman andState Chief Ministers for finalization of outlays for theAnnual Plan.

6. Reports, Review notes and Other activities :

Ø Finalised Gross Budgetary Support (GBS) inconsultation with the Ministry of Finance forthe Annual Plan 2005-06 of the Centre, Statesand UTs for inclusion in the Union Budgetfor 2005-06.

Ø A Paper on Centre�s Resources mobilization,Plan and non Plan expenditure was preparedby the officers of the Division during the Yearunder report.

Ø The Division prepared notes on statefinances and Plan financing for a series ofmeetings between the Planning Commis-sion and the State Governments for AnnualPlan 2006-07;

Ø The Division coordinated the activity ofparticipation of the Planning Commission inthe pre-budget discussions;

Ø The officers of the division also participatedin the meetings of the Debt monitoringCommittee.

4.9 ECONOMIC ADVISORY COUNCILTO THE PRIME MINISTER

1. An Economic Advisory Council to the PrimeMinister with the following composition isfunctioning w.e.f. 3.1.2005

Dr.C.Rangarajan Full-time ChairmanEx-Governor, A.P. in the rank of

Cabinet Minister

Dr.M.Govinda Rao Part- timeDirector, NIPFP Member in the

rank of MOS

Prof. Suresh Tendulkar -do-Prof., Delhi University

Prof. G.K.Chadha -do-Ex-Vice Chancellor, JNU

Dr. Saumitra Chaudhuri -do-Economic Adviser, ICRA

Dr. Satish C.Jha -do-Ex Chief Economist, ADB

2. Terms of Reference Are �

Ø Analyzing any issue, economic or otherwise,referred to it by the Prime Minister andadvising him thereon;

Ø Addressing issues of macroeconomicimportance and presenting views thereon tothe Prime Minister. This could be either suo-moto or on a reference from the PrimeMinister or anyone else;

Ø Submitting periodic reports to the PrimeMinister on macroeconomic developments


35

and issues with implications for economicpolicy;

Ø Attending to any other task as may be desiredby the Prime Minister from time to time.

3. The Planning Commission is the nodal agencyfor the Council for administrative, logistic, planningand budgeting purposes.

4. Administrative Arrangements and Budget

Ø The Planning Commission is the nodal agencyfor the EAC for administrative, logistic,planning and budgetary purposes.

Ø The EAC has been allocated a separatebudget of Rs.1.71 crores for the year 2005-06 under Demand No.72 of the Ministry ofPlanning.

Ø The EAC has established its office in Hall-Eof Vigyan Bhavan Annexe. It is functioningon a lean staffing pattern. At the officer level,it has a full time Secretary (in the rank ofSecretary to Government), an officer in therank of Director, one Senior Research Officerand one Research Officer.

TASK UNDERTAKEN

5. In accordance with its terms of reference, theEAC has advised the Prime Minister on a number ofissues referred to it by the PM/PMO. Among theimportant issues addressed by the EAC are theemployment guarantee scheme, tax treatment ofexport incentives and profits, coal royalty, agriculturalindebtedness, structural deficiencies, in north-easternstates finances and regulatory framework forcommodity futures. Proactively, the EAC advised thePM on the balance of payments, stock market trendsgrowth prospects for 2005/2006, savings andinvestments trends and implication of VAT etc. TheEAC also met the Finance Minister to advise him onbudgetary issues.

6. In addition to formal advice through notes,the Chairman of the Council has also informally


advised the PM on important economic issues fromtime to time.

7. The Chairman of the Council is a member ofthe Energy Coordination Committee, Trade andEconomic Relations Committee and the Committeeon Infrastructure, all chaired by the PM.

8. The EAC has met regularly through out theyear to deliberate on issues of economic policy and toconcretize its views on advice to be given to the PM.

4.10 HEALTH, FAMILY WELFARE &NUTRITION

Introduction

1. Health Division is concerned with providingdirection towards improvement of the health, familywelfare and nutrition status of the population. Healthis a priority sector, for which funds are provided byCentral and State Governments. The states providefunds for primary, secondary and tertiary careinstitutions including medical colleges and theirassociated hospitals. The central government providesfunds to state governments for implementation ofCentrally Sponsored Schemes such as disease controlprogrammes, reproductive and child healthprogrammes and HIV/AIDS. Central sector schemessupport activities relating to medical colleges; traininginstitutions for nurses; vaccine production institutes;Central Government Health Scheme; emergency reliefmeasures and many more interventions. The NationalDisease Control Programmes continue to receivepriority attention of the Government. Some of theseprogrammes also receive considerable externalassistance from various bilateral and multilateral donoragencies. Various family welfare programmes areaimed at improving health indicators such as InfantMortality Rate, Maternal Mortality Ratio etc. andachieve sustainable population stabilization.

Mid-Term Appraisal

2. The Health Division of Planning Commissionwas the Principal Author of the Mid-Term Appraisalof the Tenth Five Year Plan (2002-07), for the sectorsof Health, Nutrition and Family Welfare based on

36

review of Plan schemes across three Departments ofthe Ministry of Health and Family Welfare,examination of expenditure patterns, and constantconsultations with demographers, social scienceresearchers, health activists, NGOs and the corporatesector.

3. The MTA of the Tenth Five Year Plan,suggested a series of interventions and mid-coursecorrections keeping in mind the objectives of theNational Common Minimum Programme andfocusing attention on reaching out to the �aam adami�in the matter of health care. The following are thespecific interventions proposed in this exercisefocusing on providing accessible, efficient, accountableand higher quality health care to poor people.

Ø Implement a National Rural Health Mission

Ø Implement a National Mission on Sanitationand Public Health

Ø Provide access to maternity health insuranceand community risk pooling

Ø Systematise insurance at secondary health carelevels through reform of the CGHS.

Ø Institutionalise public private partnerships inhealth care

Ø Set up a Public Health DevelopmentAuthority

Ø Set up a National Authority for Drugs andTherapeutics

Ø Deliver health information, education andproducts through the Indian postal network.

4. During 2005-06, the Health Division hosteda series of consultations and brain storming sessionson issues related to HIV/AIDS, Infant Mortality,Maternal Mortality, Millennium Development Goalsand the National Rural Health Mission chaired byMember (Health), Planning Commission.Representatives of civil society participated in thesemeetings. During the consultations, it also emergedthat India on behalf of South Asia could take a more

pro-active role on advocacy on women�s right toSexual and Reproductive Health, and the need for anessential package of health care that will directlyaddress the critical constraints on achieving earlyreduction in IMR and MMR across India.

5. On 5th October 2005, Pr. Adviser (Health),Planning Commission made a presentation on �HIV/AIDS in India� before the Prime Minister highlightingthat the management of HIV/AIDS in India may bebest done through integration with primary healthcare.

National Rural Health Mission (NRHM)

6. The Government launched a National RuralHealth Mission (NRHM) in April, 2005 to provideintegrated comprehensive primary healthcare services,especially to the poor and vulnerable sections of theSociety. The seven year NRHM (2005-12) waslaunched, with the merger of separate Departmentsof Health & Family Welfare and with a mandate toaddress the innumerable infirmities across the domainof health care.

7. The Mission aims to bridge the infirmities inrural health care through increased communityownership, decentralization of the programmes to thedistrict level, inter-sectoral convergence and improvedprimary health care. The Mission aims to achieve thegoal of the National Population Policy and theNational Health Policy through improved access toaffordable, accountable and reliable Primary HealthCare. The NRHM has been launched with thefollowing goals and objectives:-

Ø Reduction in IMR and MMR.

Ø Universal access to public health services suchas women�s health, child health, water, sanitation &hygiene, immunization and nutrition

Ø Prevention and control of communicable andnon-communicable diseases, including locallyendemic diseases.

Ø Improvement in Access to integratedcomprehensive primary health care.


37

Ø Population stabilization, gender anddemographic balance.

Ø Revitalize local health traditions andmainstream AYUSH.

Ø Promotion of healthy life styles.

The NRHM will :-

Ø Provide effective health care to ruralpopulation throughout the country withspecial focus on 18 states, which have weakpublic health indicators and /or weakinfrastructure.

Ø Roll out in 18 special focus states: ArunachalPradesh, Assam, Bihar, Chattisgarh, HimachalPradesh, Jharkhand, Jammu and Kashmir,Manipur, Mizoram, Meghalaya, MadhyaPradesh, Nagaland, Orissa, Rajasthan, Sikkim,Tripura, Uttaranchal and Uttar Pradesh.

Ø Enhance public spending on health from0.9 % of GDP to 2-3 % of GDP, withimproved arrangement for communityfinancing and risk pooling.

Ø Provide architectural correction of the healthsystem to enable it to effectively handleincreased allocations and promote policies thatstrengthen public health management deliveryof Health services in rural India.

Ø Effectively integrate health concerns throughdecentralized management at district, withdeterminants of health like sanitation andhygiene, nutrition, safe drinking water, genderand social concerns.

Ø Address inter state and inter district disparities.

Ø Ensure time bound goals and report publiclyon progress.

Ø Improve access to rural people, especially poorwomen and children to equitable, affordable,accountable and effective primary health care.

The anticipated outcomes are :-

Ø IMR to be reduced to 30/1000 live births by2012

Ø MMR to be reduced to 100/100,000 livebirths by 2012

Ø TFR to be reduced to 2.1 by 2012

Ø Malaria Mortality to be reduced by 50% upto 2010 followed by an additional 10%reduction by 2012

Ø 100% reduction in Kala Azar Mortality by2010 and sustaining elimination thereafter.

Ø 70 % reduction in Filaria Mortality byReduction Rate � 70% by 2010 and 80%reduction by 2012 and elimination of kala azarby 2015.

Ø Dengue Mortality Reduction Rate 50% by2010 and sustaining it at that level till 2012

Ø Cataract operations to increase from perannum to 46 lakhs per annum

Ø Reduce the Leprosy Prevalence Rate from 1.8per 10,000 in 2005 to less than 1 per 10,000thereafter.

Ø Maintain 85% cure rate in the TB DOTSprogramme through entire Mission period.

8. The National Rural Health Mission includesthe second phase of the Reproductive and ChildHealth (RCH) Programme, with a pro-outcome anda pro-poor focus. The NRHM is an umbrellaframework as it seeks to integrate all relevant standalone schemes into a single composite programme.In this manner, the NRHM adopts a sector wideapproach in the Family Welfare sector (now mergedinto one Department of Health and Family Welfare).The NRHM invites each State /UT to prepare its ownProgramme Implementation Plan based upon ameticulous analysis of ground realities andrequirements.


38

9. Janani Suraksha Yojana (JSY), a safemotherhood initiative introduced in April 2005, seeksto motivate higher institutional deliveries and morespecific neo-natal care, along with appropriate referraland transport assistance, in order to achieve more rapidreductions in infant and maternal mortality.

Working Group Discussions with States

10. The Health & Family Welfare Division hascompleted Working Group discussions with States /UTs as well as with the Ministry of Health & FamilyWelfare for the Annual Plan 2006-07. Theperformance, problems faced and new initiatives inthe Health, , Family Welfare and Nutrition sectorsacross all States were deliberated in detail. To steadilyrealize the goal of increasing outlays in the healthsector to 2-3% of GDP, (set out in the NationalCommon Minimum Programme (NCMP)), theAnnual Plan outlays of Ministry of Health and FamilyWelfare for 2005-06 and 2006-07 were substantiallyincreased. The states are constantly encouraged toenhance their respective state level budgetary supporttowards health care of the common man.

11. One activity running through the year underreview, related to continuation of Plan schemes, viz.granting of �in-principle� approval and examining theSFC/EFC/CCEA proposals in respect of the schemesof the Department of Health and Family Welfare.Quarterly Performance Review Meetings were heldunder the Chairpersonship of Member (Health)Planning Commission to review the pace ofexpenditure of these Departments under the AnnualPlan 2005-06. These QPRs critically examined theprogress, identified the problems in implementingschemes and suggested suitable solutions for bettertargeting /utilization of funds.

�In Principle� approvals

The following proposals received fromMinistry of Health & Family Welfare were accorded�in-principle� approval by Planning Commission:

Ø Construction of Phase II Regional Instituteof Medical Sciences in Shillong, Meghalaya.

Ø Introduction of Japanese EncephalitisVaccination as a part of Universal immuni-zation programme of the Ministry.

Ø Pproject of Lok Priya Gopinath BardoiRegional Institute of Mental Health(LGBRMH) Tezpur, Assam under NEC Plan.

Ø Proposal for Utilization of 10th PlanAllocation of Lady Harding Medical Collegeand Associated Hospitals

Ø Proposal for setting up All-India Institute ofAyurveda in Delhi

Ø Proposal for expansion of Hepatitis B project

Ø Proposal for setting up Public HealthFoundation in India.

Proposals processed for meetings ofCabinet/CCEA

The following proposals were examined by PlanningCommission for consideration of the Cabinet/CCEA:

Ø Nutrition Programme for Adolescent Girls(NPAG) has been revived and is beingimplemented by the Department of Womenand Child Development during 2005-06.

Ø Reserving 50% of the contraceptiverequirement of Ministry of Health and FamilyWelfare for purchase from Hindustan LatexLimited

Ø Implementation of Polio Eradication Strategyfor 2006-07.

Ø Unified Control of University College ofMedical Science (UMC) and Guru TegBahadur Hospital, Delhi.

Ø Proposal for involving financial assistance toState Govts., / Uts Administration forsupplementary nutrition under the IntegratedChild Development Services Scheme.


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Ø Establishment of North Eastern Institute ofAyurveda on Homeopathy in ArunachalPradesh.

Ø Filling up of Scientific and Technical Posts onHealth Section in Ministry of health andFamily Welfare.

Ø Creation of the Second Post of Joint Secretaryfor Department of AYUSH in lieu ofmatching savings.

Ø Proposal for continuation of National VectorBorne Disease Control Programme

Ø Approved Introduction Of HIV/AIDS In SixHigh Prevalence And Highly VulnerableStates

Ø Setting up of National Medicinal Plants Board

Ø Proposal on Phase-II Project of World BankAssisted Revised National TuberculosisControl Programme from Oct, 05 to Sept,2010.

Meetings of EFC/SFC

The following proposals were examined byPlanning Commission for consideration of theExpenditure Finance Committee

Ø Science and Technology Project on IntegratedDisease Victor Control of Malaria under �theMalaria Research Centre of the Indian Councilof Medical Research.

Ø Creation of essential post and granting statusof Registered Society to the National MedicalPlants Board.

Ø Setting up of National Institute of FoodTechnology, Internship and Management.

Ø Construction of Payward for CN Centre atAIIMS

Ø Implementation of Polio Eradication Strategyfor 2006-07.

Ø EFC Memo for Lady Harding MedicalCollege and Associated Hospital (Smt.S.K.Hospital and Kalawati Saran ChildrenHospital, New Delhi).

Ø Establishment of AIIMS, AIYUSH, Delhi.

Ø Proposal for continuation of National VectorBorne Disease Control Programme

Ø Proposal for Anti retrieval treatment to HIV/AIDS patients in Six high incidence States.

Ø Proposal for financial assistance forSupplementary Nutrition Programme

Ø Proposal on Phase-II Project of World BankAssisted Revised National TuberculosisControl Programme for Oct,05 to Sept, 2010.

HIV/AIDS :

12. The National AIDS Prevention and ControlPolicy, 2002 aims at preventing further spread of HIVand achieving zero rate of growth in new infections.The HIV/AIDS estimates in India for 2004 indicates5.134 million HIV infections and an adult prevalencerate of 0.9 per cent. India has the second largestpopulation of HIV infected people next to SouthAfrica. Although the level of HIV infection appearsto have stabilized in some states such as Tamil Nadu,Andhra Pradesh and Maharashtra, HIV infections areperceived to be increasing among the high riskpopulation in highly vulnerable states.

13. To provide high level leadership to the effortsto contain HIV/AIDS, government has constituted aNational Council on AIDS headed by the PrimeMinister.

14. Phase-I of National AIDS ControlProgramme was launched in 1992 with World Bankassistance and was completed in 1999. Phase II ofthe programme, with funding from World Bank,Department for International Development (DFID)and United States Agency for InternationalDevelopment (USAID) is under completion onMarch 31, 2006. The NACP Phase-III will start from


40

1st April, 2006, with an emphasis on mainstreamingof HIV prevention through multi-sectoralpartnership, integration of prevention with care,support and treatment, greater attention towards thevulnerable North-Eastern states, up-scaling andimproving service delivery from sub-district levels tosecondary health care level, organizationalrestructuring of the programme, strengthening ofstates, creation of district level programme structureand establishment of a robust monitoring andevaluation system. Extensive condom promotion isalso in hand since unsafe sex is responsible for over85 percent of HIV infections in India.

15. Anti-retroviral treatment free of cost wasstarted from 1st April, 2004 in 8 governmenthospitals. This initiative has now expanded to 60medical institutions. During 2005-06, Governmentalso approved the extension of anti-retroviraltreatment additionally, beyond high prevalence statesto highly vulnerable states as well. This ensuresavailability of HIV related services to people of mostStates / UTs. Anti-retroviral treatment sites become awindow of opportunity for further synergising HIVprevention with curative care.

16. The Health Division carried out technicalappraisal of the Project Proposals from Departmentof Health, Family Welfare, ISM&H as well as StateGovernments and the proposals for the SFC and EFC.The Division also prepared the background materialand the comments of the Planning Commission forthe CCEA and Cabinet notes on the Health, FamilyWelfare and AYUSH.

Nutrition

National Nutrition Mission

17. A National Nutrition Mission has been set upby Department of Women and Child Development.The Planning Commission provided necessary inputssuggestions to be included in the National NutritionMission to accelerate the service delivery mechanismfor enhancing Nutritional status of the people withspecial focus to vulnerable groups including womenand children.

Nutrition Programme for Adolescent Girls

18. A Nutrition Programme for Adolescent Girls(NPAG) was launched in 51 district on a pilot basisin 2002-03. An amount of Rs 94 crore was releasedin two installments to the states. The progamme hasbeen revived and Department of Women and ChildDevelopment, Govt of India is implementing thisscheme from 2005-06 onwards. The Department hasobtained Cabinet approval for the continuation of theprogramme in 2005-06.

Integrated Child DevelopmentServices on Nutrition

19. Supplementary Nutrition is the mostimportant component of the ICDS scheme aimed atbringing down the level of mal�nutrition amongyoung children, pregnant women & lactating mothers.In fact, Supplementary Nutrition is a major attractionfor the targeted beneficiaries to attend Anganwadis.In the absence of Supplementary Nutrition, thebeneficiaries do not attend Anganwadis and they arealso deprived of other services under the scheme. Thisresults in diluting the impact of the scheme onimproving the nutritional and Health status ofchildren and women. With a view to improving theNutrition and Health status of children, theDepartment of Women & Child Development hasnow proposed to share the cost of SupplementaryNutrition with the States/ UTs on 50:50 basis. Forthe year 2005-06 an amount of Rs. 1500 Crore hasbeen provided by the Department of Women & ChildDevelopment for funding the SupplementaryNutrition Component.

4.11 HOUSING AND URBANDEVELOPMENT DIVISION

1. Disproportionate growth of urbanpopulation, as compared to rural and total population,is exerting a relentless pressure on India�s urbaninfrastructure. The urban population of India hasrapidly increased in recent years. In 1961 about 79million persons lived in urban areas of the country,by 2001, their number had gone up to over 286million, an increase of over 360 percent in the last


41

four decades, which will further increase to over 400million by the year 2011. The increase in urbanpopulation has outstripped the growth in the numberof urban agglomerates. In 1991 there were 23metropolitan cities, which have increased to 35 in2001. As a result, most urban settlements arecharacterized by shortfalls in housing, inadequatesewerage, traffic congestion, pollution, poverty andsocial unrest making urban planning a challengingtask.

2. The challenge of reorienting the urbanizationprocess thus lies in overcoming the infrastructuredeficiencies and taking the best advantage of economicmomentum in urbanization. Cities everywhere arerecognized as contributing substantially to economic,social, educational and infrastructure needs of thecountry. While they offer a higher standard ofamenities to city-dwellers, they also have an importantrole in providing a range of services to the ruralhinterland creating demand for rural output andproviding inputs and thus treated as �engines ofgrowth�. In the light of this, there is a greater need tofocus the deficiencies in urban infrastructure toincrease its contribution to the economy.

3. Housing and Urban Development Divisionhas the responsibility of planning and coordination,formulation of guidelines, monitoring of programmesimplemented by Ministries of Urban Development,Urban Employment & Poverty Alleviation,Department of Justice and Ministry of Home Affairs.The broad sector comprises, social housing, urbandevelopment, urban transport, urban povertyalleviation, development of slums, provision of HighCourt and City Court Buildings, residentialaccommodation for judges, computerization ofCourts, police housing etc.

Jawaharlal Nehru NationalUrban Renewal Mission

4. Jawaharlal Nehru National Urban RenewalMission (JNNURM) to provide reform linked centralassistance for development of infrastructure in selected63 cities was launched by Hon�ble Prime Minister on3rd December,2005. Sub Mission I on UrbanInfrastructure and Governance and UrbanInfrastructure Development Scheme for Small and

Medium Towns (UIDSSMT) for other than missioncities has been established. States will be providedACA grant in various proportions of project cost. TheSub Mission -I would take care of urban infrastructureprojects, including water supply, sanitation, sewerage,solid waste management, road network, urbantransport and redevelopment of inner city areas.

5. Sub Mission II under the National UrbanRenewal Mission would provide for � Basic Servicesfor the Urban Poor� through integrated projects in63 selected Mission Cities. Programmes like slumimprovement and rehabilitation, sites and services,environmental improvement, night shelters,community toilets and housing at affordable pricesfor EWS and LIG categories would be taken up underthis sub mission. The Integrated Housing and SlumDevelopment Programme would cover other thanMission cities. State Governments, Urban LocalBodies and para-statal agencies will be required toaccept implementation of an agenda of reforms.

6. The proposed reforms both at State andUrban Local Bodies levels shall broadly fall into twocategories

(i) Mandatory reforms and (ii) Optionalreforms. The existing schemes of IDSMT, MegaCity,URIF and AUWSP, NSDP and VAMBAY wouldbe subsumed into the mission.

Housing

7. During the year 2005-06, the Divisioncontinued to follow up the programmes based on theobjectives of providing �Shelter For All� for betterquality of life as outlined under Housing and Habitantpolicy, 1998 to the priority groups, viz, people belowpoverty line, SC/STs, disabled, freed bondedlabourers, slum dwellers, women headed householdsetc as well as of activities under the Special ActionPlan (SPA) on housing also known as � Two MillionHousing Programme� introduced in 1998-99.

8. The Division liaisons with various concernedagencies of Government to streamline the policiesrelating to slum development, which is one of themajor areas of concern. In view of very high demandfor General Pool Residential Accommodation, the


42

Division advised the nodal Ministry to speed up theprocess. As a result of ZBB exercise, the Divisionrecommended for the restructuring / merger of variousagencies viz. NBO, MIS etc to form a single entitycalled National Urban Information System.

Urban Development

9. The content under Urban Developmentcomprises of subjects like demography, landdevelopment, provision of physical infrastructurefacilities, civic amenities, transportation etc. in citiesand towns. The Seventy Fourth ConstitutionalAmendment Act, 1992 envisaged empowerment oflocal bodies at the gross root level to undertakedevelopmental functions and assuring them offunctional powers through constitutional / legislativeprovisions. The Division continued review of theexisting programmes, examination of variousproposals and offered comments thereon.

Other Activities

10. The Division intensively examined variousnew proposals, revised guidelines and communicatedthe comments to the Ministries/Departments. Duringthe year 2005-06, the division focused on monitoringthe progress of various schemes implemented by NCRPlanning Board, HUDCO, TCPO, and CPWD in theform of Quarterly Progress Review of nodalMinistries. The Division actively involved intoformulation of Jawaharlal Nehru National UrbanRenewal Mission(JNNURM). The Division alsoexamined EFC proposal and Note for the Cabinet onNURM, Bangalore Metro, DMRC-Phase-II and EFCproposal along-with guidelines on NUIS, e-governance in Municipalities and PFDS schemes andLump-sum provision for NE States including Sikkim,National Urban Transport Policy and communicatedthe comments thereon.

Urban Employment & Poverty Alleviation

11. The Division is entrusted with theresponsibility of broad policy formulation andmonitoring of programmes relating to urban housing,slum development and Urban poverty. During the

year 2005-06, the Division was instrumental in givingcomments for certain modifications in the SJSRYguidelines. The Division examined other schemes like,National Strategy for Urban Poor, Spill-overcommitments in the VAMBAY, re-structuring ofHUDCO, merging of VAMBAY(CSS) andNSDP(ACA) into a new scheme of IntegratedHousing and Slum Development Programme(IHSDP) etc as a part of JNNURM. The Divisionexamined various new proposals and recommendedits comments to the nodal Ministry.

12. The Division presented views of PlanningCommission relating to Housing, UrbanDevelopment, Urban Poverty Alleviation in variousMeetings / Seminars and Conferences. Officers of theDivision also attended the following specific Meetings:

Ø Working Groups and Sub-Groups on UrbanDevelopment and Housing for State Plans.

Ø Various meetings relating to JNNURMincluding Meeting presided over by PrincipalSecretary to PM.

Ø State Level Sanctioning Committee forprojects under Integrated Development ofSmall & Medium Towns (IDSMT).

Ø State Level Sanctioning Committee forprojects under Infrastructural Developmentin Mega Cities.

Ø National Capital Regional Planning Board.

Ø National Urban Information System.

Ø Review of Swarna Jayanti Shahari RozgarYojana (SJSRY).

Ø State Housing Ministers Conference.

Ø Task Force on National Urban Housing &Habitat Policy 2005.

Ø Integrated Rail-cum Bus Transport (IRBT)Project.

Ø EFC/SFC meetings.


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13. The Division also prepared comments onvarious Notes for the Cabinet and replied variousParliament Questions. Presented views on schemesunder State Capital Projects for various Statesincluding North Eastern States.

Department of Justice andMinistry of Home Affairs

14. During the year 2005-06, the Divisionexamined the progress under various schemespertaining to Department of Justice viz., CentrallySponsored Scheme for the Development ofInfrastructural facilities for the judiciary and FamilyCourts, Construction of High Court Buildings,Computerization of City Civil Courts. The Divisionduring the year examined new proposals of theDepartment of Justice viz. Computerization of all theCourts in the Country in a phased manner and E-Committee Report on total computerization in thejudiciary and accorded concurrence/comments to theschemes.

15. The Division also examined major schemesof the Ministry of Home Affairs viz., Police Housingfor Central Para Military Forces, Delhi Police, VitalStatistical System under RGI, proposals fromDepartment of Official Languages and DisasterManagement Programme and communicated theviews on these schemes. The Division examinedexternally aided project proposed as Central schemei.e. Cyclone Mitigation Programme etc. andcommunicated views to the Ministry of Home Affairs.It also gave comments regarding the proposal to setup National Centre of Good Governance by InterState Council.

4.12 INDUSTRY DIVISION

1. Industry Division is nodal division forfollowing Ministries/Departments :

Ø Department of Industrial Policy & Promotion

Ø Ministry of Textiles

Ø Department of Fertilisers

Ø Department of Chemicals & Petrochemicals

Ø Ministry of Heavy Industries & PublicEnterprise

Ø Department of Consumer Affairs

Ø Ministry of Steel

Ø Department of Disinvestment

In addition the division deals with Industrycomponent of Plan Schemes in respect of thefollowing departments :

Ø Department of Biotechnology

Ø Department of Atomic Energy

Ø Department of Scientific & IndustrialResearch

Ø Department of Supply

Ø Ministry of Petroleum & Natural Gas

The Annual Plan discussions culminating infinalisation of schematic Outlays were held with theseDepartments

2. Brainstorming sessions were organised toincorporate valuable inputs from leading economist &industry associations/experts, intellectuals in the exerciserelating to Mid Term Appraisal (MTA) of Tenth Plan.

3. Follow up action has been taken on the Actionpoints emerging out of MTA of Tenth Plan in respectof the Ministries/Departments relating to Industrysector.

4. Quarterly performance Review (QPR)meetings in respect of various Ministries/Departments(pertaining to Industry Division) were held to evaluatethe progress of different schemes and utilization ofresources. Bottlenecks brought out during meetingswere addressed as far possible.

5. The Industry Division participated in variousdecision making / approval for investment projects.


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6. Industry Division took specific initiatives forenabling Deptt. of Consumer Affairs devising actionpoints on areas requiring particular/added focus whichled to formulation of various schemes like Increase inConsumer Awareness through publicity campaign,Integrated Development of Consumer forum,Strengthening of W&M infrastructure, etc. Specificsupport was provided through significant hike inAnnual Plan Outlay.

7. Cases pertaining to dilution of part of GOIequity were examined and comment given for COS/CCEA/GOM meetings.

8. In addition, in-depth discussions andSecretary level discussion were arranged for AnnualPlan 2005-06 in respect of the Ministries/Departmentscovered by Industry Division.

9. Investment proposals for EFC/PIB werescrutinised from techno-economic angle andcomments given for incorporation in the appraisalnote.

10. Notes for Cabinet/CCEA/CCD/CoS wereexamined.

11. Participated in various state Annual Plan andQPR meetings.

12. Participated in the meetings to finalise StateDevelopment Reports of various states.

Coal & Minerals Unit

12. Annual Plan proposals for 2005-06 in respectof Ministry of Mines, mineral sectors of Departmentof Atomic Energy, Department of OceanDevelopment, Ministry of Steel and StateGovernments/ UTs were discussed and finalized.

14. The Annual Plan Chapter 2005-06 on MineralSector was prepared.

Ø Compiled the material for QuarterlyPerformance Review of the Ministry of Minesfor the meeting taken by the Member(Industry), Planning Commission.

Ø A comprehensive review of the plannedschemes of Ministry of Mines, Ministry ofSteel (Mineral sector) and Department ofAtomic Energy (Mineral Sector) for the Mid-Term Appraisal (MTA) was carried out withan emphasis on outcome budget during theyear and objectives of the National CommonMinimum Programme (NCMP).

Ø A High Level Committee (HLC) has beenconstituted under the Chairmanship ofMember (Industry) for a review of NationalMineral Policy & three meetings of HLC wereorganized.

Ø Investment proposals formulated by Ministryof Mines were appraised and PIB meetingswere attended to take necessary investmentdecisions.

Ø Quarterly Performance Review (QPR)meetings conducted by the Ministry of Minesfor organizations and public sectors under theMinister were attended.

Ø Discussions on proposals of Annual Plan2006-07 for Ministry of Mines, and mineralsectors of Department of Atomic Energy,Department of Ocean Development andMinistry of Steel and State Governments / UTswere initiated.

Ø Meetings of State Geological ProgrammingBoard (SGPB) and Central GeologicalProgramming Board (CGPB) were attendedduring the year for critically examining thework done by various geological and otherrelated organizations.

4.13 INTERNATIONAL ECONOMICDIVISION

1. The International Economics Division isresponsible for the study of issues relating to India�sforeign trade and balance of payments as well as issuesconcerning foreign investments in the context of theplanning process. The Division also handles work


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relating to bilateral and multilateral technicalcooperation involving Organizations such as WorldBank, International Monetary Fund, AsianDevelopment Bank, United Nations Conference onTrade and Development and World TradeOrganization as well as regional arrangements suchas Economic and Social Commission for Asia and thePacific and South Asian Association for RegionalCooperation. In this context, the Division is alsoengaged in analyzing the trends and issues in theinternational economy. The Division coordinates withvarious Ministries and Organizations for collectionof information on trade and balance of payments andbilateral and multilateral economic cooperation. TheDivision also handles among others, Plan allocationfor Mega Projects in Bhutan under the Plan Schemesof Ministry of External Affairs.

2. In addition to the above-cited activities, thework relating to various Plan schemes of theDepartment of Commerce which was earlier beingdealt with by the Industry Division is also beinghandled by IE Division. The work pertaining to theDepartment of Commerce involves various types ofPlan schemes such as Assistance to State forInfrastructure Development of Exports (ASIDE),APEDA, MPEDA, E.C.G.C., M.A.I., N.E.I.A., TeaBoard, Rubber Board, Coffee Board, Spices Boardand other schemes. The Division also deals with theAnnual Plan proposals, of DOC, Half YearlyPerformance Review of various Plans Schemes andtheir outlays and outcomes.

3. During the year, number of High PoweredDelegations called on Hon�ble Deputy Chairman,Planning Commission, Minister of State for Planningand Member-Secretary, Planning Commission.

Ø A group of Executive Directors andAlternate Executive Directors from WorldBank visited Planning Commission on4.2.2005 and had discussions withMembers and Seniors Officers on the issuesrelating to physical infrastructure and otherpriority areas relating to the Social Sectorsconcerning education, health andemployment guarantee.

Ø A Czech delegation headed by H.E. Mr. MilanSimonovsky, Deputy Prime Minister andMinister of Transport, visited the PlanningCommission on 9.2.2005 and had discussionswith Shri M.V. Rajasekharan, Hon�bleMinister of State (Planning), Shri AnwarulHoda, Member, Planning Commission andother senior officers of the PlanningCommission. Deputy Prime Minister, CzechRepublic briefly explained about the on goingcooperation between Indian companies andCzech Companies in the field of transportautomobiles power gerneration etc.

Ø H.E. Prof. Antonio Marzano, Minister ofProduction Activities, Italy along with abusiness delegation called on 15.2.2005 withthe Hon�ble Deputy Chairman, PlanningCommission. While expressing the importantrole played by Planning Commission, Prof.Marzano expressed the view that theCommission can take a favourable view toenable foreign investment in India from theircountry. With Italy having expertise in the fieldof infrastructure in ports, highways, theirlogistics, etc. the President, Confindustria,Italy expressed the desire of possibilities ofItalian companies investing in India in theseareas.

Ø H.E. Mr. Jose Vicente Pimentel, Ambassadorof Brazil met Secretary, Planning Commissionon 24.2.2005 to discuss bilateral issues amongIndia, Brazil and South Africa(IBSA).

Ø A Japanese delegation consisting of Mr.Yasutoshi Nishimura, Mr. Daishiro Yamagiwaand Mr. Osamu Uno, Hon�ble Members ofParliament, Japan alongwith officials from theEmbassy of Japan, New Delhi called on ShriM.V. Rajasekharan, Hon�ble Minister of Statefor Planning on the afternoon of 2nd May,2005. The Visiting Members of Parliamentconveyed about the importance of use of solarEnergy & Biomass for development and alsoshowed interest in agricultural development.The importance give to rail fright corridorlarge power stations. smaller power projcet


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under between programme were also briflydiscussed.

Ø A delegation of the 14th Committee of theItalian Parliament, in-charge of EuropeanUnion Policy along with the Ambassador ofItaly to India and other officials called on ShriM.V. Rajasekharan, Hon�ble Minister of Statefor Planning on the forenoon of 3rd May,2005 and discussed about the ruraldevelopment and alleviation of poverty. Issuesconcering manufacturing competetiveness,pollution and environmental problems werealso discussed.

Ø An IFAD (International Fund for AgriculturalDevelopment) Delegation headed by Mr.Lennart Bage, President called on the Hon�bleDeputy Chairman, Planning Commission onthe forenoon of 10th May, 2005. Issuesconcerning Social Security, Developments ofService Sector were briefly discussed. Thepresent role of the Planning Commissionabout the plan formulation measures were alsobriefly explained by the Hon�ble Dy.Chairman.

Ø A six Member ministerial level delegationfrom China headed by Mr. Wang Guoliang,Deputy Director General, Office of PovertyAlleviation and Development called on theHon�ble Minister of State for Planning on10th June 2005, which was followed by ameeting with the senior officers of PlanningCommission to discuss policy andprogrammes of the Government of Indiaregarding Poverty Alleviation both in Ruraland Urban areas.

Ø A preliminary meeting in connection withIndia-Brazil South Africa(IBSA) Seminar on�Economic Development and Social Equity�to be held at Rio-de-janerio Brazil on August3-4, 2005 was held in the PlanningCommission on 5th July, 2005 in which SouthAfrican delegation headed by Ms. SadiLuka,Chief Director, DevelopmentImplementation Support and Braziliandelegation headed by Ms.Mariangela Rebua,

Head of the Division of Social Affairs,Ministry of External Relations participated.The had a courtesy call with Member SuretaryPlanning Commission.

Ø Mr. Toru Shikibu, Deputy Commissioner forInternational Affairs, Financial ServicesAgency, Government of Japan accompaniedby Mr. Hideharu Tanaka, FSA, Japan and Mr.Hiroyuki Terasaki, First Secretary, Embassyof Japan, made a courtesy call on Shri ShrawanNigam former Adviser (IE & DP) on 15thJuly 2005.

Ø A meeting between the Vietnamese delegationheaded by Mr. Trinh Huy Quach, DeputyChairman of the Budgetary and EconomicCommittee of the National Assembly ofVietnam with Member-Secretary, PlanningCommission was held on 19th September,2005.

Ø An evaluation team of the Europe AidCooperation Office, Evaluation Unit of theEuropean Commission led by Mr. Peter F.Christensen visited Planning Commission on13.12.2005 to evaluate the EC countrystrategy for the period 1991-2006.

4. During the period under report, the Divisionprepared notes on Trade Policy and organized anumber of Presentations/Seminars on varioussubjects:

Ø A Team of non-resident Indian professionals(Victor Menezes, Vinod Khosla, Indra Nooyi,Parag Saxena, and Anand Dorairaj) made aPresentation on India FDI Project before theDeputy Chairman, Planning Commission onafternoon 12th January, 2005 on the issuesconcerning Infrastructure sector and detaileddisucussous were held.

Ø A Team headed by E.D. from the IndiaTrade Promotion Organization (ITPO)made a Presentation on �OptimumDevelopment Plan of Pragati Maidan� NewDelhi on 20th May, 2005 in PlanningCommission having estimated cost of Rs.1260.00 Crore.


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Ø A Presentation before the Deputy Chairman,Planning Commission was made by Dr.Antonio Barros de-Castro, Director ofPlanning at Brazilian Development Bank(BNDES) on the Brazilian DevelopmentProcess and on Development Financing andIndustrial Policy in Brazil on 14.12.2005.

Ø A presentation was made by the ChairmanGem & Jewellery Export Promotion Council(G&JEPC) in Planning Commission on10.01.2006, before the Member-Secretary, onthe presumptive tax on sales turnover in lieuof income tax for the sector. Secretary(Commarce) a represatative from CBDT, Pr.Adviser (PPD) and Principal Adviser(IE&DP) alongwith the Director (IE) werepresent in the presentation.

Ø Mr. Raghuram G. Rajan, Director (Research),IMF made a presentation before the DeputyChairman, Planning Commission on13.01.2006 on �India�s Pattern ofDevelopment: What happened, What follows�.

5. During the period under report, InternationalEconomic Division furnished comments on variousNotes and Draft Cabinet Notes and on varioussubjects like Market Access Initiatives (MAI), Asia-Pacific Trade Agreement (APTA) liberalization of FDIPolicy and simplification of approval procedures forsetting up SEZs and FTWZs, settlement ofoutstanding projects claims from Iraq as covered underthe Deferred Payment Agreement (DPA), Review ofForeign Direct Investment Policy for furtherrationalisation, Agreement on Agriculture and onMarket Access in Non-Agricultural Products, India/Singapore comprehensive Economic Co-operationAgreement, Engagement of State Government withOversea Indian to attract FDI, Establishment of aUnilateral Tariff Preference(UTP) Scheme for the leastdeveloped countries, Security-Guidelines for ForeignParticipation in projects in Sensitive Areas andIndustries, Tala Hydroelectric Project in Bhutan-Revised Cost to Completion Estimate, Flexibility inTransportation of Liquefied Natural Gas (LNG),Agreement between the GOI and Government ofState of Kuwait for the Avoidance of Double Taxation(DTAA) and the prevention of Fiscal Evasion with

respect to taxes on income, Note for the group ofMinisters on Enactment of a New Law to managethe acceptance, utilization and accounting of ForeignContribution received by a Person or an Association,Finalization of the Preferential Trade Agreement(PTA) between the Republic of Chile and theRepublic of India, Amendment to Market AccessInitiative Scheme to provide funds for India�sparticipation in Hannovar Fair, April 24th-28th 2006,FDI in Township, Housing, Built-up Infrastructureand Construction Development Projects, India�sEngagement in Free Trade (FTAs)/Regional TradingArrangement (RTAs), Convention between the Govt.of the Republic of India and the Govt. of the Kingdomof Saudi Arabia for the Avoidance of Double Taxation(DTAC) and prevention of Tax Evasion with respectto Taxes on Income.

6. The Division also examined and commentedon various research proposals received independentlyas well as through SER Division and recommendedfor financial assistance. Those include:

Ø A research proposal on �INDO-ASEAN FreeTrade Agreement: Threat and Opportunitiesfor India�s Manufacturing Sector�.

Ø A proposal for study, research & developmentto attract FDI and to devise a mechanism forremoving the apprehensions of legalimpediments and hassles received fromsecretary, Bhartiya Society for Social EconomicDevelopment in Global Arena (BSSEDGA)was to examined and comments offered.

Ø A proposal received from Dr. Nitish SenGupta, Chairman, International Trade & LawInstitute, DDA Complex, New Delhi forproviding necessary financial andAdministrative back-up to the establishmentand functioning of the institute.

Ø Proposal from Dr. M. Nazer, Reader &Research Adviser for Organising a NationalSeminar (20th-21st August, 2005) on(International Trade & Business-EmergingIssues and challenges after Liberalization andGlobalization)


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Ø A research proposal from Director & C.E. ofICRIER, New Delhi on �Impact of ForeignDirect Investment in India� for Grant-in-aid.

Ø A Proposal of Indian Trade PromotionOrganisation (ITPO) for approval of PIB onthe estimated cost of Rs. 1260.00 Crore forthe �Optimum Development Plan of PragatiMaidan�, New Delhi.

7. During the period under reference variousmeetings on issues concerning Trade & EconomicRelations Committee, Indo-Japan EconomicRelations, CNE Meeting on construction oftransmission line in Afghanistan, Japanese Assistancefor High Visibility Project, Sub-Committee of MAIto consider various proposals for assistance under MAIScheme, promotion of Diamond Trade and itscontribution to the growth of Indian Economy,Budget Estimates and Revised Estimates, Annual PlanProposals of Plan Schemes of DOC and also for theMega Projects in Bhutan of MEA, QuarterlyPerformance/Half Yearly Performance ReviewMeetings of the Department of Commerce and theMinistry of External Affairs were attended either byAdviser (IE) or by other Senior Officers of theDivision. The 20th meeting of the Tala HydroelectricProject Authority held in Bhutan on 14.02.2005, wasalso attended by Adviser (IE).

8. During the period under report, the Divisionwas extensively involved in the work pertaining toWTO matters: Various proposals on the WTO matterreceived from the Department of Commerce wereexamined from the point of view of compatibility withthe WTO Agreements. Anti Dumping related case onSea Food Industry was examined in detail andcomments offered. The Division had also examined indetail a PMO reference regarding formulation of WTOCompatible Duty Remission Scheme for Exports toreplace the DEPB Scheme and furnished comments.

9. Various proposals received from theDepartment of Commerce during the year for in-principle approval for establishing regional office ofthe South Centre at New Delhi, MPEDA-financialassistance for setting up of modern ice plants/renovation of the existing ice plants for supply of

quality ice for fish preservation, continuation ofAirfreight Support Scheme for export of live marineproducts of MPEDA, Scheme for registration of aquaculture societies for adoption of code of practices forsustainable shrimp farming and proposal for extendingfinancial assistance in the form of grant-in-aid andtransfer assistance on export of potato to South-EastAsia were examined and comments offered.

10. Draft Speeches on the topics like : �The Futureof Asia : Charting a course for Asian EconomicIntegration.� �Annual South Asian FriendshipConference� �Role of NRI in EconomicDevelopment� and �Global Participation in India�sEconomic Development� were prepared for Hon�bleDeputy Chairman/Minister of State for Planning.

4.14 LABOUR, EMPLOYMENT &MANPOWER DIVISION

1. The LEM Division continued to handlematters relating to employment strategy, employmentpolicies and issues, labour welfare, labour policies &programmes, social security for workers andmanpower planning.

Employment and Unemployment

2. Estimates of labour force, employment andunemployment in the country are an integral part ofthe exercise for preparation of EmploymentPerspective for planning. These estimates are basedon the results of NSSO sample surveys and thedemographic census. On the basis of these estimates,employment projections are made. Estimates of labourforce, employment and unemployment were preparedin the Division.

3. As per the latest two quinquennial rounds ofNSSO conducted in 1993-94 and 1999-2000, the rateof growth of employment between 1983-94 andbetween 1994-2000 are given in the table below:

4. The Division examined the educational profileof the work force, employment and unemploymentamong youth (age between 15-29 years), employmentand unemployment among poor and many otherissues relating to employment.


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5. During the year, estimation of labour force,work force and unemployment rates from AnnualRound of NSSO conducted in 2003 (59th Round)were undertaken.

6. From the NSS Annual Round of 2004 (60thRound) estimates of youth aged between 15-29 years,who have obtained vocational training in any form,were prepared.

7. Data on employment obtained from theDGE&T, Ministry of Labour in respect of growth ofemployment in specific locations where employmentis growing were analyzed.

8. Some of the important activities undertakenby the Division during the year are as follows:

Ø A six-week�s training course in �OfficialStatistics and Related Methodology� for theparticipants of Regular Courses in Statistics ofInternational Statistics and Education Centre(IISEC), Kolkota was organized by the CSO.The overseas participants for this course had asession on Estimation of EmploymentPotential in India conducted by the LEMDivision.

Ø The LEM Division delivered a lecture on�Employment Planning in India� to theIndian Statistical Service Probationers on21.9.2005.

Ø The first meeting of the Committee for anIndependent Survey on Employment andUnemployment was held in Kolkata on 25thOctober, 2005. Representative of LEMDivision participated in that meeting.

9. A Research Study named �EmploymentGeneration in Post Globalization Era in Greater

Mumbai� by Employer�s Federation of India Socialand Labour Research Foundation was conductedunder the Socio Economic Research Study Schemeof Planning Commission. The Division monitoredthe progress of this study and the draft report of thestudy was received.

Labour and Labour Welfare

10. Issues relating to labour policies andprogrammes are also handled in the Division. In thiscontext, the Division examined the issues like SocialSecurity in both organized and unorganized sectors,existing labour laws, vocational training, child labourand bonded labour, etc.

11. As a follow-up of the National CommonMinimum Programme, Planning Commission hasreceived the following proposals for the UnorganizedSector Worker�s Bill.

Ø National Advisory Council of the UPAGovernment has drafted the UnorganizedSector Workers Social Security Bill, 2005.

Ø Ministry of Labour & Employment(MoL&E) has prepared a draft Cabinet Notefor enactment of the Unorganized SectorWorkers Bill, 2004.

Ø National Commission for Enterprises in theUnorganized Sectors has prepared a draftUnorganized Sector Workers Social SecurityBill 2005 and Unorganized Sector Workers(Conditions of work and livelihoodpromotion) Bill, 2005.

12. A presentation to the Deputy Chairman,Planning Commission was organized where Ministry

Table: Employment growth on CDS basis.

(Million) Growth per annum (%)

1983 1993-94 1999-2000 1983-1994 1994-2000

Labour Force 261.33 335.97 363.33 2.43 1.31Employment 239.57 315.84 336.75 2.70 1.07


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of Labour, Life Insurance Corporation of India,National Commission for Enterprises in theUnorganized Sectors and National Advisory Councilof the UPA Government were present.

Mid-Term Appraisal

13. The Division has undertaken the Mid-TermAppraisal (MTA) of the Tenth Plan in respect of Planschemes of MOL&E. The MTA chapter was finalizedand the following suggestions were made.

Creation of Employment Opportunities

Ø The bulk of employment creation is boundto result from the growth of the economy andtherefore efforts should be made to accelerategrowth, especially in the labour-intensivesectors. To create additional demand forlabour in rural areas, the National RuralEmployment Guarantee Act be enacted, as afollow-up of the National Food for WorkProgramme.

Vocational Training

Ø Modified the course contents of the NCVTto include a module on shop floor training.

Ø The NCVT system should allow the industryassociations to design courses and awardcertificates to successful trainees.

Ø Establish recognising/accrediting agencies forvocational training institutes. Such agenciesshould also assign a grading to the existingITIs.

Ø Assistance to state governments for ITIsshould be subject to the condition that theyare organised as autonomous bodies.

Ø Develop a framework of NationalQualification Pathway to interlink vocationaleducation, vocational training and academiceducation in order to facilitate inter-streammovement of students and vocationaltrainees.

Employment Information Services

Ø Amend the Employment Exchanges Act toencourage a role for private employmentinformation services in the collection anddissemination of information.

Ø Relocate employment exchanges to rural areas.The employment information services needto be provided in the e-governance mode tosupport the new initiatives at providingemployment guarantee in the backwarddistricts.

Labour Laws

Ø The Indian Labour Conference shoulddeliberate upon the recommendations of theSecond National Commission on Labour anda decision taken by the government in the lightof the NCMP.

Social Security

Ø State governments should enact legislation forthe welfare of unorganised workers, whichshould clearly identify the resources to beraised, benefits to be given as well as theinstitutional mechanism.

Ø The government should provide welfareservices to the unorganised workers such ascompensation for accident at work, death, andold age pension in the �risk cover mode� asdistinct from the �direct ex-gratia payments�.

14. Representative of the Division haveparticipated in the following meetings concerninglabour and labour welfare:

Ø Quarterly & Half Yearly Performance Reviewmeetings for the Plan schemes for the Statesof Gujarat, Maharashtra, Orissa and WestBengal held in their respective State Capitals.

Ø 40th Session of the Indian LabourConference held at New Delhi on 9-10December 2005.


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Institute of Applied Manpower Research (IAMR)

15. The Division functions as the nodal Divisionin Planning Commission for the administrativecontrol and guidance of the Institute of AppliedManpower Research, an autonomous body carryingout training and research activities. The Division alsorepresents Planning Commission in the � a) GeneralCouncil b) Executive Council and c) StandingCommittee on Research Programmes of the Institute.The Institute is supported by Grant-in-aid by PlanningCommission.

16. The Institute envisioned, conceptualizedand developed a range of academic activities in thefield of human resource planning and development,including research, consultancy, information system,training and workshops, seminars and conferences.The Institute brings out Manpower Profile IndiaYear Book, which contains compilation ofinformation on technical manpower with thesupport of the All India Council for TechnicalEducation (AICTE), Ministry of Human ResourcesDevelopment (HRD).

4.15 MULTI LEVEL PLANNING DIVISION

1. MLP Division is concerned with Special AreaProgrammes namely, (i) Hill Areas DevelopmentProgeramme (including Western Ghats DevelopmentProgramme), (ii) Border Area DevelopmentProgramme (BADP) and (iii) Rashtriya Sam VikasYojana (RSVY).

Hill Areas Development Programme (HADP)

2. The Hill Areas Development Programme(HADP) is being implemented in designated hill areasof Assam, Tamil Nadu and West Bengal. The WesternGhats Development Progaramme (WGDP) is beingimplemented in 171 talukas of Western Ghats areacomprising part of Maharashtra (63 talukas),Karnataka (40 talukas), Tamil Nadu (33 talukas),Kerala (32 talukas) and Goa (3 talukas). SpecialCentral Assistance under the programme is providedas 90% grant and 10% loan. The funds available underHADP are divided amongst the designated hill areas

covered under the programme and the talukas coveredunder the Western Ghats Development Programme(WGDP) in the proportion of 60:40.

3. The main objective of the programme are eco-preservation and eco-restoration with emphasis onpreservation of bio-diversity and rejuvenation of thehill ecology. For the hill areas covered under HADP,the sub-plan approach has been adopted. Theconcerned State Governments prepare the total plancomprising of flow of funds from the State Plan andSpecial Central Assistance made available underHADP. In the case of WGDP, the schematic approachhas been followed since the taluka is the unit ofdemarcation in respect of which the flow of fundsfrom State Plan is difficult to quantify. Under WGDP,the States have been advised to prepare their plans onwatershed basis. Watershed based developmentcontinues to be basic thrust area of the programmealong with a participatory approach to ensureefficiency, transparency and accountability during theTenth Five Year Plan period.

4. During 2005-06, out of the approvedalloction of Rs. 160.00 crore for the programme, anamount of Rs. 71.79 crore has so far been released tothe State Governments towards Ist instalment of SCA(As per the direction of Ministry of Finance, only thegrant portion (90%) has been released to the StateGovernments and loan portion (10%) will be raisedby the State Governments from the market).

Border Area Development Programme

5. The Border Area Development Programme(BADP) covers seventeen States namely ArunachalPradesh, Assam, Bihar, Gujarat, Himachal Pradesh,Jammu & Kashmir, Manipur, Meghalaya, Mizoram,Nagaland, Punjab, Rajasthan, Sikkim, Tripura, UttarPradesh, Uttaranchal and West Bengal. Special CentralAssistance under the programme is provided as 100%grant for the execution of the approved schemes.Funds are to be divided amongst the States by givingequal weightage to the following three parameters :population of border blocks (as per 1981 census), areaof border blocks and length of the internationalborder.


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6. The main objective of the programme is tomeet the special needs of the people living in remoteand inaccessible areas situated near border. Revisedguidelines were issued in April 2003 in order to ensurethe involvement of the local people. Grassrootinstitutions such as PRIs /District Councils/Traditional Councils are to be involved inidentification of the priority areas to the maximumextent possible. Since the people living in the borderareas must have a direct say in the selection of schemes,village level institutions such as Gram Sabhas are tobe involved in the decision making process. The StateGovernments are to work out appropriate modalitiesto ensure greater participation of the people of theborder areas in the selection of schemes. Further, theState Governments are now required to prepare a longterm perspective plan for each border block. TheProgramme has now been transferred to theDepartment of Border Areas Management, Ministryof Home Affairs from 1st April, 2004. TheDepartment of Border Areas Management, MHA hasrevised the guidelines for BADP in April, 2005.During Annual Plan 2005-06, as against the allocationof Rs. 325.00 crore, an amount of Rs. 203.89 crorehas so far been released to the BADP States.

Rashtriya Sam Vikas Yojana (RSVY)

7. The Rashtriya Sam Vikas Yojana (RSVY)consists of three components, namely, i) Special Planfor Bihar, ii) Special Plan for the undivided Kalahandi-Bolangir-Koraput (KBK) districts of Orissa, and iii)Backward Distrits Initiative.

Special Plan for Bihar

8. Based on the wide ranging consultations withthe representatives of the State Government of Biharand with the peoples� representatives of the State, aSpecial Plan has been formulated for implementationunder Rashtriya Sam Vikas Yojana on 100 per centCentral Assistance basis to bring about improvementin sectors like power, road connectivity, irrigation,horticulture, forestry and watershed development.During 2005-06, an amount of Rs. 269.96 crore hasso far been released. Since the inception of the scheme,an amount of Rs. 964.09 crore has been released.

Special Plan for KBK districts of Orissa

9. The KBK region of Orissa comprises of theundivided Kalahandi, Bolangir and Koraput districtswhich have now been reorganized into eight districts,namely, Kalahandi, Nuapada, Bolangir, Sonepur,Koraput, Nabarangpur, Malkangiri and Rayagada.The Planning Commission has been providingAdditional Central Assistance to this region since1989-90. To make the planning and implementationprocess more effective, the State Government wasadvised to prepare a Special Plan using a project basedapproach and innovative delivery and monitoringsystem. The State Government is accordinglypreparing the Special Plan for the KBK districts sincethe year 2002-03. The Special Plan focuses on tacklingthe main problems of drought proofing, livelihoodsupport, connectivity, health, education., etc. During2005-06, an amount of Rs. 166.66 crore has beenreleased so far. Since the inception of the scheme, anamount of Rs. 866.66 crore has been released.

Backward Districts Initiative

10. The Backward Districts Initiative programmeinitially covered 100 backward districts identified onthe basis of an index of backwardness comprising threeparameters with equal weights to each, namely, i) valueof output per agriculture worker, ii) agriculture wagerate, and iii) percentage of SC/ST population of thedistricts. During 2004-05, 13 districts of Bihar and 2districts of Orrisa have also been covered under theprogramme. In addition, 32 districts affected by leftwing extremism have also been covered. In all, 147backward districts are covered under the programme.District Plans of all the 147 Districts have already beenapproved by the Empowered Committee. During2005-06, an amount of Rs. 442.50 crore has beenreleased so far. Since the inception of the scheme, anamount of Rs. 2086.08 crore has been released.

4.16 PLAN COORDINATION DIVISION

1. The Division coordinates activities of all theDivisions of the Planning Commission. In particular,it has the responsibility of coordinating theformulation and preparation of the Five Year Plans,the Annual Plans, including specific responsibility for


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the sectoral allocation of the Central Sector Plan,Annual Report of the Planning Commission andcoordination of Parliamentary work. Also, the internalmeetings of the Planning Commission, meetings ofthe Full Planning Commission and the meetings ofthe National Development Council are organized andcoordinated by the Plan Co-ordination Division.

2. The work relating to preparation of draft Mid-Term Appraisal (MTA) document of Tenth Five YearPlan (2002-07) was completed and meetings ofInternal Planning Commission were held to finalisethe document of the MTA. The Draft MTA documentwas discussed in the Full Planning CommissionMeeting held on 5th April, 2005 under thechairmanship of the Prime Minister in which it wasdecided that the Mid Term Appraisal document ofTenth Plan be placed before the Cabinet after takinginto account the comments of the respective CentralMinistries / Departments and thereafter before theNational Development Council. The Cabinet in itsmeeting held on 19th May, 2005 considered theMTA document of Tenth Plan and thereafter it wasplaced therfore the National Development Council.The 51st Meeting of the NDC was held under theChairmanship of the Prime Minister on 27th & 28thJune, 2005 mainly, to consider the Mid-Term Appraisalof the Tenth Five Year Plan. The NDC expressed broadagreement with the goals and policies suggested inthe Mid-Term Appraisal which could act as a blue printfor further action on development matters in the TenthPlan and also act as the starting point for initiatingwork on the Eleventh Five Year Plan. The PlanningCommission was directed to examine a number ofvaluable suggestions made by Chief Ministers duringthe course of discussions which require a review ofsome of the policies, programmes and approaches.As directed by NDC, Planning Commission hasinitiated the work for the preparation of the ApproachPaper to the Eleventh Five Year Plan.

3. In pursuance of the decision taken in the 51stMeeting of the National Development Council, thefollowing Committee /Sub-Committee / ExpertGroup have been set up :

Ø A Committee has been set up under theChairmanship of Finance Minister to examine

the issues relating to the debt burden of theStates and debt relief with reference to theirdebt outstanding against the National SmallSavings Fund (NSSF);

Ø A Sub-Committee of the NDC has been setup under the Chairmanship of the Ministerof Agriculture, Consumer Affairs, Food &Public Distribution for drawing upimplementable Action Plan on Agriculture &related issues; and

Ø An Expert Group has been set up under theChairmanship of Shri Arvind Varma todevelop concrete proposals for restructuringthe CSS in consultation with the Ministries /Departments concerned.

4. The exercise for the Annual Plan 2006-07including the preparation of guidelines to be kept inview by the Central Ministries/Departments informulating their Plan proposals was undertaken, asscheduled, for the Central Sector in September, 2005by inviting the proposals from Central Ministries /Departments. Annual Plan 2006-07 discussions forfinalization of Outlays of the various Ministries /Departments were initiated from 22.11.2005 underthe Chairmanship of Member(s), PlanningCommission. The recommendations of the PlanningCommission for the sectoral allocation of the CentralSector Plan are proposed to be conveyed to theMinistry of Finance for incorporation in the UnionBudget.

5. The Division compiled and consolidated theinformation and material with respect to differentsectors of the economy for the preparation of AnnualPlan Document 2005-06.

6. It is obligatory to lay the Annual Report ofPlanning Commission on the Table of the Lok Sabhaevery year. Annual Report for 2004-05 was placedon the Table of the House on 23.03.2005. Materialfor compilation of Annual Report 2005-06 wascompiled and edited. After getting it printed in boththe languages (English and Hindi), it will be madeavailable to Members of Parliament simultaneously


54

before the demands for Grants are referred to theDepartmentally related Standing Committees forconsideration and requisite number of copies will besent to both Secretariats of the Parliament for placingthem in both Houses of Parliament.

7. The other regular activities of the PlanCoordination Division include sending a monthlyD.O. letter on major activities of the PlanningCommission to the Prime Minister�s Office and theCabinet Secretariat. A Note on the achievements/major decisions taken by the UPA Government onthe completion of first year in office was preparedand sent to Prime Minister�s Office. Similarly, a Noteon the policies, programmes and achievements of thepresent Government during the first year wasprepared. The material relating to PlanningCommission for President�s Address to the JointSession of both the Houses of Parliament � 2006,was prepared and sent to PMO. A Note on issues likelyto come up before Parliament was also sent beforecommencement of the Sessions of the Parliamentduring the year. Similarly, material for incorporationin the Finance Minister�s Budget Speech for Budget2006-07 and material for publication in the Pre-Budget Economic Survey, 2005-06 was sent to theFinance Ministry. Follow up action on theannouncements made in the Finance Minister�sBudget Speech for 2005-06 on the points concerningPlanning Commission was reported to FinanceMinistry. Consultations were held with the Ministries/Departments, which had expressed their viewsregarding the rationalization exercise of CSSundertaken earlier by the Planning Commission, andon that basis decision was taken regarding the merger/discontinuance etc. of CSS.

8. The information sought by the StandingCommittee on Finance on Demands-for-Grants wasfurnished for considering Planning Commission�sAnnual Plan proposals. Information called for by theJoint Committee on Offices of Profit of Lok Sabhawas also sent to Lok Sabha Secretariat.

9. The practice of holding weekly meetings tobe chaired by Deputy Chairman, PlanningCommission with the Members and senior Officers

concerned of Planning Commission to review anddeliberate on important issues relating to thePlanning Commission, continued during thereporting period. Detailed discussions on varioussectoral issues were held in these meetings and timebound actions were suggested to the Divisions,through minutes of the meetings. A regular followup action was undertaken and the progress discussedin the subsequent meetings.

10. The Central Sector Plan Scheme titled �50thYear Initiatives for Planning� of the PlanningCommission initiated during 2000-01 remained inoperation during, 2005-06, the fourth year of theTenth Five Year Plan. The Plan Scheme envisagesbuilding up of a comprehensive and completedatabank covering all the important sectors reflectingthe nation�s developments.

11. The preparation of State DevelopmentReports (SDR) for each State/UT, at least, once infive years to be presented in the concerned StateCapital, highlighting the development status,achievements and prospects of that State initiated inthe year 2000-01 was continued in the reportingperiod. The aim of bringing out these reports is toprovide a quality reference document on thedevelopment profile and to set out a strategy foraccelerating the growth rates of these States/UTs. TheInternal Planning Commission has given its approvalfor preparation of State Development Reports for allthe 35 States/UTs during 2003-04 and 2004-05.Accordingly, the proposals as forwarded by State PlanDivision were processed for release of payment forsubsequent instalments against the approval grantedby the Sanctioning Committee of the Scheme on therecommendation of the Core Committees. The SDRsof Assam, Jammu & Kashmir, Punjab, Orissa andHimachal Pradesh have already been prepared andreleased by the Planning commission. The SDR ofRajasthan was under print and SDRs of Maharashtraand Tamil Nadu were awaiting release. Draft SDRsfor the States of Chhattisgarh, Madhya Pradesh, WestBengal, Jharkhand, Uttar Pradesh and Lakshadweephave been received in the Planning commission andwere being reviewed by respective Core Committeesfor finalisation.


55

12. The scope of the Central Sector Scheme �50thYear Initiatives for Planning� was extended to includethe proposals received from State/UT Governmentsunder the scheme called �Planning Commission�sProject Preparation Facility� (PCPPF) with the aimof helping State/UT Governments to engageProfessional Consultants for preparation of DetailedProject Reports (DPRs) specifically for projectsproposed to be funded from external and institutionalsources, from the year 2001-02. The cases as receivedfrom State Govt. of Tripura, Manipur, Chhattisgarh,Madhya Pradesh, Uttranchal and Himachal Pradeshwere processed as per guidelines of the Scheme andas recommended by the Review Committee ofPlanning Commission. The Study undertaken byTCIL for the State of Tripura was completed and theothers were in progress. The responsibility ofmonitoring of the preparation of the DPRs lies withthe Planning Department and the administrativeDepartment of the State Government concerned,Planning Commission is to be kept informed of theprogress.

13. The scope of the Scheme �50th Year Initiativesfor Planning� was further extended in the light of thePrime Minister�s Office Notification No.360/31/C/26/04-E&S-II dated 31st August, 2004 for setting up of aHigh Level Committee on Infrastructure. TheNotification provides that the Committee will be servicedby the Planning Commission. The PlanningCommission vide its Office Order no. A-22021/1/2005-Admn.1 dated 7th March, 2005 has set up a Secretariatfor the Committee on Infrastructure to service theCommittee. The expenditure for the work of Secretariatfor the Committee on Infrastructure will be met fromthe Plan Scheme �50th Year Initiatives for PlanningCommission.� Since, the work of the Committee onInfrastructure very often requires obtaining of legal,technical, managerial, banking & financial services fromoutside agencies; the guidelines of the Scheme wereamended by the Standing Finance Committee ofPlanning Commission to hire the services of a kind notavailable within the Planning Commission.

14. The following proposals of new CentrallySponsored Schemes were considered and grantedapproval of Internal Planning Commission during2005-06 and were processed for obtaining FullPlanning Commission Approval:

Ø �Development of Micro Irrigation� ofDepartment of Agriculture and Cooperation(DAC) for execution during the Tenth FiveYear Plan (approved by PMO on21.11.2005).

Ø � Management of Prospective GregariousFlowering of Bamboo in North EasternStates� of the Ministry of Environment &Forests for the period of 2005-06 to 2008-09.

Ø �National Bamboo Mission� of Departmentof Agriculture & Cooperation (DAC) forimplementation during the last two years ofthe X Five Year Plan and first three years ofthe XI Five Year Plan.

Ø �Livestock Insurance� of the Ministry ofAgriculture, Department of AnimalHusbandry, Dairying and Fisheries for theperiod from 2005-06 to 2008-09(approvedby PMO on 19.01.2006).

15. Planning Commission, during the periodunder report, continued to conduct QuarterlyPerformance Review (QPR)/ Half Yearly Reviewmeetings for the Central Ministries/Departments andfor States and UTs. These reviews help in effectiveimplementation of schemes and projects byminimizing time and cost overruns.

4.17 POWER & ENERGY DIVISION

1. The division is entrusted with theresponsibilities of broad policy formulation,preparation of plans and monitoring of projects/schemes relating to Power, Coal, Petroleum & NaturalGas Sectors and Non-Conventional Energy Sources.During 2005-06, the division carried out thefollowing main activities: -

Ø The Expert Committee to formulate EnergyPolicy Constituted under the chairmanship ofDr. Kirit. S. Parikh, Member, PlanningCommission has finalized the Draft Reporton Integrated Energy Policy. The report hasbeen placed on the Planning Commissionwebsite.


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Ø Chapter on Mid-Term Appraisal of the TenthPlan in respect of Energy Sector was finalized.10 Action Points have been identified inrespect of Energy Sector, which forms part of75 Action Points for monitoring monthlyprogress by the PMO.

Ø Monitorable targets & outcome budget for2005-06 in respect of Power, Petroleum, Coaland Non Conventional Energy Resourceswere finalized in consultation with respectiveMinistries.

Ø The Chapter on Energy has been prepared forAnnual Plan Document 2005-06.

Ø The work related to formulation of AnnualPlan 2006-07 of Ministries of Coal, Power,Petroleum & Natural Gas and Non-Conventional Energy Sources has beenfinalised.

Coal Unit

2. The following activities were carried outduring 2005-06 :

Ø Compiled material for Half yearlyPerformance Review Meetings of Coal Sectorunder the chairmanship of Member (Energy).

Ø Examined the status of implementation ofmajor coal and lignite projects and broughtout the issues for consideration in theQuarterly Performance Review (QPR)meetings held in Ministry of Coal (MOC)under the chairmanship of Secretary (Coal).

Ø The Unit is coordinating the work of�Working Group on Promotion of Use ofWashed Coal for Power Generation�.

Ø The Unit prepared material on Coal for�Approach Paper for XI Five Year Plan�.

Ø Process for constitution of working group andits terms of references for XI Five year Planhas been initiated.

Ø The officers of the Unit have participated inthe meetings of Standing Linkage Committee(Long-Term) for Thermal Power Plants &Cement Plants; Standing Scientific ResearchCommittee; Inter-Ministerial Group; PublicInvestment Board, etc. to convey the viewsof Planning Commission for takinginvestment decisions etc.

Ø The Unit examined a number of proposals ofcoal mining projects and other policy issuesrelated to Coal Sector and conveyed the viewsof Planning Commission to the concerned.

Ø Officers of the Unit visited fields to monitorcoal projects.

Power Unit

3. The Division carried out the followingactivities :

Ø As per the provisions of the Electricity Act,2003, draft National Tariff Policy as receivedfrom Ministry of Power was criticallyexamined by Power Unit and a modifiedreport based on a sub-Committee set up byCOS was prepared and sent to CabinetSecretariat by MOP for its consideration. TheTariff Policy has since been notified.

Ø Examined the note received from the CabinetSecretariat on the revival of the Dabhol PowerProject located in Maharashtra state and alsoparticipated in the meeting thereon.

Ø The unit examined a Cabinet Note on theamendment of the Electricity Act, 2003.

Ø The unit also prepared material for apresentation on �Issues in Power Reforms�for the Committee on Infrastructure byMember (Energy) to Deputy Chairman.

Ø The unit participated on the SteeringCommittee under the Chairmanship of


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Secretary (Power) to monitor the APDRPscheme for utilization of funds by State forimproving their distribution network.

Petroleum Unit

4. The Unit carried out the following activities :

Ø Examined a number of proposals relating toestablishment of Petroleum & Natural GasRegulatory Board, Natural Gas/ LNG pricing,pricing of petroleum products, acquisition ofequity oil and gas abroad, setting up ofstrategic storage of crude oil and other policyissues related to Petroleum & Natural Gassector. The views of the Planning Commissionwere conveyed to the concerned departments/organizations.

Ø Unit conducted Half Yearly PerformanceReview Meeting for 2005-06 in respect ofMinistry of Petroleum & Natural Gasunder the chairmanship of Member(Energy).

Ø The proposa ls of the Minis try ofPetroleum & Natural Gas relating toformulation of Annual Plan 2006-07 werefinalized.

Ø Participated in Quarterly PerformanceReview meetings held under theChairmanship of Secretary, Ministry ofPetroleum & Natural Gas and brought outimportant issues on status of projects andvarious programmes.

Ø The unit also participated in the discussionsfor finalization of MOUs parameters forvarious oil CPSUs for the Annual Plan2005-06.

Non-Conventional Energy Sources Unit

5. The unit provided input to the Bharat NirmanProgramme in respect of reaching electricity to theremaining 1,25,000 villages and offering electricityconnection to 2.3 crore households.

4.18 PROJECT APPRAISAL ANDMANAGEMENT DIVISION

Functions

1. Project Appraisal and Management Divisionin the Planning Commission was set up in 1972 toinstitutionalize the system of project appraisal inGovernment of India. The functions of the Divisionare as follows:

Ø Prescribe guidelines and develop formats forthe submission of proposals for projects andprogrammes for techno-economic appraisal;

Ø Undertake support research studies toimprove the methodology and procedure forappraisal of projects and programmes;

Ø Undertake techno-economic appraisal ofmajor projects and programmes in the publicsector; and

Ø Assist Central ministries in establishing properprocedures for preparation of reports ofprojects and programmes.

Appraisal Work

2. As a part of techno-economic appraisal, PAMDappraises Plan schemes and projects costing Rs. 25crores & above and prepares appraisal notes inconsultation with the subject division of the PlanningCommission when projects are considered by the PublicInvestment Board (PIB), the Expenditure FinanceCommittee (EFC) and the Committee of PublicInvestment Board (CPIB), depending upon the natureand size of proposals. The Division has been appraisingproposals of Ministry of Railways costing Rs. 50 croresand above since 1995-96; the limit has now been raisedto Rs. 100 crores. Revised cost estimate (RCE)proposals are also appraised by the Division.

Processing In Principle Proposals

3. Although PAMD appraises proposals costingRs.25 crores and above for consideration of the


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EFC,PIB and EBR, all proposals received for accordof in principle approval are examined in the divisionirrespective of the outlays involved. All new proposalsfor inclusion in the Plan are examined by PAMDbefore they are considered for approval.

4. PAMD has prepared a comprehensive notesuggesting modification in the existing in principleapproval mechanism for introduction of new planscheme. The note has been approved by the DeputyChairman, Planning Commission and modifiedprocedure will be implemented from 11th Five Year Plan.

5. As per Ministry of Finance O.M. No. 1(2)-


HighlightsØ Appraisal Notes are issued within stipulated time frame of six weeks from the receipt of the PIB/

EFC Note on the proposal.Ø Standing Committees to examine and fix responsibility for the time and cost overrun were constituted

by 22 Departments / Ministries. Officers of the PAMD deliberated in six Standing Committeemeetings during April-December 2005.

Ø 118 appraisal notes involving outlay of Rs. 169115 crores have been issued during 1.4.2005 to31.12.2005

Ø 10 cases of in-principle approval were examined in PAMD during April �December 2005.Ø 14 CCEA Notes were examined by PAMD.Ø 21 proposals for Standing Finance Committee were examined.

a) PAMD would act as Management Adviser tothe PIB/EFC and on receipt of PIB/EFCproposal, based on the information containedin the PIB/EFC Memorandum, it willcomplete appraisal and management advicetendered to PIB/EFC.

b) With a view to ensuring that the appraisalcarried out by the PAMD is comprehensiveand meaningful, the project authorities/administrative Ministries have been requestedto submit only such proposals which arecomplete in all respects.

c) The outer limit for issue of appraisal note bythe PAMD has been fixed at six weeks fromthe date of receipt of PIB/EFC proposal. Incase PAMD fails to appraise the proposalwithin the prescribed time limit, PIB/EFCmeeting could be fixed and their viewsobtained in the meeting.

d) Proposals on projects/schemes costing Rs.5Cr. and more but less than Rs.25 Cr. are to beconsidered by the Standing FinanceCommittee (SFC).The concerned Ministry /Department can now convene SFC meetingwithout waiting for comments of the PlanningCommission provided that scheme is includedin the plan with adequate allocations and inprinciple approval of the PlanningCommission has been obtained by theadministrative Ministry.

7. In 2004-05, 123 projects/schemes involvinga total cost of Rs. 176901 crores were appraised inthe Division. During 2005-2006 (1.4.05 to31.12.2005), 118 projects/schemes involving totalcost of Rs. 169115 crores were appraised, includingboth new as well as proposals of Revised CostEstimates (RC Es).

PF.II.03, dated 7th May, 2003, any project whichrequires in principle approval of the PlanningCommission must be submitted along with afeasibility report (FR), if the cost of the project ismore than Rs. 50 crores. Recently, the requirementof in-principle approval has been dispensed with inrespect of coal & power projects.

6. Planning Commission, with a view to cutdown delays, inter-alia, in appraisal of projectproposals and to ensure PIB/EFC decision within4-6 weeks of receipt of PIB/EFC Memorandumfrom the Departments/Ministries had decided asunder:

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8. Officers of PAMD were deputed for deliveringlectures on Project Appraisal in the workshops on�Project Planning and Management� organized byDeptt. of Programme Implementation at Dehradun,

2004-05 2005-06 (Apr-Dec 2005)S.N. SECTORS No. % Cost(Rs.crs.) % No. % Cost (Rs.crs.) %

1 Agri.& Allied 10 8.1 15720 8.9 12 10.2 2954 1.7

2 Energy 24 19.5 26079 14.7 29 24.6 33113 19.6

3 Transport 21 17.1 67308 38.0 9 7.6 37731 22.3

4 Industry 8 6.5 4400 2.5 15 12.7 11550 6.8

5 Science & Tech. 9 7.3 844 0.5 7 5.9 4113 2.4

6 Social Services 33 26.8 54939 31.1 26 22.0 76445 45.2

7 Communication# 5 4.1 3546 2.0 5 4.2 612 0.4

8 Others@ 13 10.6 4066 2.3 15 12.7 2597 1.5

TOTAL 123 100 176901 100.0 118 100.0 169115 100.0

# includes Posts, Information & Broadcasting, Information Technology.@ Includes Home Affairs & Deptt. of Personnel, Planning Commission, Statistics & Pro. Imp., Tourism,

Commerce, E&F, Justice, Water Resources, NER, Consumer Affairs

Shillong, Itanagar and Raipur for the benefits ofofficers of North-Eastern Region and Chattisgarhduring 2005-06.

Facts And Figures for 2005-2006(1-4-05 to 31-12-05)

a. Number of projects/schemes appraised : 118

b. Capital cost of the projects appraised: Rs. 169115 cores

c. Number of projects appraised in

� Agriculture & Allied Sector: 12 (10.2 %)

� Energy and Transport 38 (32.2 %)

� Industry and S & T 22 (18.6 %)

� Social Sector 26 (22 %)

� Others 20 (17%)

TOTAL 118

9. The sectoral distribution of projectsappraised during the years 2004- 2005 and 2005-2006 (April-December 2005) is given in the table

at Annexure 4.1. Information pertaining to majorgroups of sectors is summarized below:

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Annexure-4.18.1Sectoral Distribution of Projects Appraised in PAMD

S.N. SECOTRS 2004-05 2005-06 (Apl-Dec-05)Number Cost (Rs. crs) Number Cost (Rs. crs)

1 AGRICULTURE & ALLIED 10 15720.08 12 2954.37 ENERGY 24 26079.16 29 33112.812 Power & Coal 22 20329.72 28 27927.593 Petroleum & Natural Gas 2 5749.44 1 5185.22 TRANSPORT 21 67307.80 9 37731.254 Railways 5 1412.42 1 262.955 Surface Transport 13 63106.13 3 208.076 Civil Aviation 0 0.00 2 36260.567 Shipping 3 2789.25 3 999.67 INDUSTRY 8 4399.58 15 11549.618 Industry & SSI 4 1859.46 4 1184.199 Steel & Mines 0 0.00 3 8652.73

10 Petrochemicals & Fertilizers 1 1749.72 0 0.0011 Textiles 3 790.40 7 1417.6912 Food Processing 0 0.00 1 295.00

SCIENCE & TECHNOLOGY 9 844.02 7 4112.6713 Bio Technology 1 82.00 2 3524.0014 Science & Technology 1 99.19 2 135.4515 Scientific & Ind. Research 6 579.34 1 97.5016 Ocean Development 1 83.49 2 355.72

SOCIAL SERVICES 33 54939.47 26 76445.3617 HRD 3 13878.30 9 3071.2518 Youth Affairs & Sports 1 30.59 0 0.0019 Health 13 7969.86 5 2764.8920 Women & Child Dev. 4 10808.21 1 1500.0021 Labour 2 290.60 0 0.0022 Social Justice 7 1681.53 2 1794.1223 Rural Development 1 19700.00 2 9558.0024 Urban Development 2 580.38 7 57757.10

COMMUNICATION 5 3545.83 5 611.9025 Information & Broadcasting 3 3411.58 2 330.6926 Post 1 84.27 0 0.0027 Information Technology 1 49.98 3 281.21


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4.19 PROGRAMME OUTCOME &RESPONSE MONITORING

In pursuance of the announcement made bythe Finance Minister in his budget speech of 2005-06 to evolve a mechanism to measure the developmentoutcomes of all major programmes and the subsequentdirections of the Prime Minister to all Union Ministries/Departments to convert financial outlays into physicaloutcomes in respect of all major programmes/schemeson quarterly basis for 2005-06, the Ministries/Departments concerned attempted to work out thetargets of intermediate outputs/outcomes of the planprogrammes/schemes being implemented by them. Theresponses of 65 Ministries/Departments in this regardwere analyzed, categorized and consolidated. TheDivision was involved in the tasks of formulatingmonitorable outcomes for finalization of deliverablesof the outlays provided to the Ministries/Departments,and of evolving outcome indicators for a few criticalschemes in consultation with the Divisions concernedof the Planning Commission.

4.20 PERSPECTIVE PLANNINGDIVISION

1. The work of Perspective Planning Division(PP) relates to the overall integration of the plan intomacro-economic framework delineating possibilitiesand constraints and projecting a long-term vision of

S.N. SECOTRS 2004-05 2005-06 (Apl-Dec-05)Number Cost (Rs. crs) Number Cost (Rs. crs)

OTHERS 13 4065.50 15 2597.4028 Home Affairs & Personnel 0 0.00 2 128.6729 Statistics & Prog. Implem. 2 138.87 0 0.0030 Tourism 0 0.00 2 1685.5031 Commerce 6 2522.87 0 0.0032 Environment & Forest 2 301.89 4 304.1133 Justice 1 443.50 0 0.0034 Water Resoruces 1 631.83 0 0.0035 North Eastern Region 1 26.54 6 384.1236 Consumer Affairs 0 0.00 1 95.00 TOTAL 123 176901.44 118 169115.37

development in terms of potentials, constraints andcritical issues.

2. The Division assists the Commission inplanning and policy issues, which span across multiplesectors of the economy such as agriculture, industry,infrastructure, financial resources, balance ofpayments, social services, demography, poverty andemployment. To bring about inter sectoral consistencyin the plans a system of plan models, sub-models andmaterial balances is used. The exercise done in theDivision helps in evolving the overall macro-economicframework, with projection for consumption,investment, imports, exports as well as socialdevelopment indicators, government finance etc.

3. The Division as a part of its regular activities:

Ø prepares an overall framework for mediumand long term plans by analyzing implicationsof long term objectives for the appropriatestrategy of development;

Ø examines the current policies and programmesin the inter-temporal, inter-regional and inter-sectoral contexts;

Ø studies consistency between plan objectivesand plan allocation, conformity of regionaldistribution of public sector outlays with the


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regional needs of development, effect of pricerise on consumption level of people indifferent income groups, trends in saving,investment and growth in economy, trends inforeign trade and the implications of variousdevelopment in the economy for publicinvestment;

Ø estimate State-wise poverty ratios usinghousehold consumer expenditure surveysconducted by National Sample SurveyOrganization (NSSO) and analyze thechanges in the poverty indices;

Ø renders advice on strategy for negotiations atthe WTO keeping in view interest of Indiaand other developing countries;

Ø assists the Planning Commission in formingits views on technical issues pertaining toplanning process, shift of a public sectorprogramme from Non-Plan to Plan side ofGovernment expenditure and vice-versa inter-government resource transfers and other issuesrelating to fiscal federalism.

Ø contributes to the response by PlanningCommission on issues pertaining toPlanning Process posed by Parliament,forum of economists and States, delegationfrom National Planning Commissions fromother countries and trans-nationalinstitutions through the respective nodalMinistries.

4. The Division represents PlanningCommission in

Ø Governing Council of NSSO

Ø Governing Council of Indian StatisticalInstitute

Ø Advisory Committee on National Accountsof CSO

Ø National Advisory Board on Statistics

Ø Governing Council of the �DevelopmentPlanning Centre� at the Institute of EconomicGrowth

Ø �Standing Research Advisory Committee�set up by Department of Statistics, Ministryof Statistics and Programme Implemen-tation

Ø Advisory Committee of Planning and PolicyResearch Unit (PPRU) of the IndianStatistical Institute, Delhi Centre

Ø Nodal Division in the Planning Commissionfor work relating to the Commission for SocialDevelopment of the UN.

Ø Inter-ministerial Committee of Ministry ofCommerce for negotiations on Agreement onAgriculture of the WTO.

Ø Working Group on Family Living BelowPoverty Line: Survey for Urban Non-ManualEmployees.

Ø Task force for the component identifying thespecific requirement of strengthening of StateStatistical Bureau of the World Bank assisted�India Statistical Strengthening Project�.

Ø Advisory Group for the study on �DistrictPoverty Estimates� a UNDP project underUNDP.

Ø Inter-Ministerial Committee to review�Indicators on Sustainable Development inIndia�

Ø Inter-Ministerial Expert Committee to finaliseframework for compilation and reporting ofthe Millennium Development Indicators setup by the Ministry of Statistics & P.I.

5. An Expert Group to Review the Methodologyfor Estimation of Poverty was constituted bythe Planning Commission on 2nd December,2005 under the Chairmanship of Prof. SureshD. Tendulkar. The first meeting of the Group


63

was held on 13th January, 2006 in thePlanning Commission.

6. The Officers of the Division have beenassociated with the following activities:-

Ø The Division is involved in carrying outvarious exercises relating to macro-economic,fiscal and sectoral parameters in connectionwith the preparation of DimensionalHypothesis for the Approach to the EleventhFive Year Plan. These include assessment ofsavings and investment rate, public sectoroutlays, projection for external sector amongothers.

Ø Organised Seminar on �Macro-economicprojections for the Eleventh Plan� , on 5th and6th December, 2005.

Ø Examined trends in trade and tariff structuresin India

Ø Analysis of Constraints in the agriculturesector

Ø Participated in the meetings of external aid toIndia including presentation to Japanese andGerman delegations on the Plans anddevelopment strategy.

Ø Examined the implications of Twelfth FinanceCommission award for both Central and Statefinances.

Ø Made projection of Government financeskeeping in view the constraint imposed byFRBM Act as well as requirement of publicinvestment consistent with macro economictarget as a preparatory work for the ApproachPaper to Eleventh Five Year Plan.

Ø Estimated investment demand function forprivate corporate sector.

Ø Calculated the level of capital formation in thegovernment sector from the budget numbers

through re-classification of grants to Statesunder Centrally Sponsored Schemes.

Ø Prepared note on Estimation of Poverty inIndia for United Nations Statistics Divisions,publication titled �Handbook on PovertyStatistics�

Ø Calculated Poverty Indices for monitoringMillennium Development Goals by Ministryof Statistics & Programme Implementation

Ø Developed various criteria for identificationof special products for developing countriesunder the Agreement on Agriculture of theWTO

Ø Examination of impact of converting non-advalorem to advalorem tariff pertaining totextiles and other non-agricultural goods

Ø Presented Paper on �Promoting FullEmployment� at the High Level . Round Tablemeeting of the Commission for SocialDevelopment of the UN, New York.

Ø Comments sent on International StandardIndustrial Classification (ISIC) and CentralProduct Classification (CPC) of the UnitedNation Statistics Division to Ministry ofStatistics & Programme Implementation.

Ø Comments sent on fixation of income ceiling,cost and loan ceiling for EWS-LIG categoryto HUD Division of the PlanningCommission for onward transmission toMinistry of Urban Employment & PovertyAlleviation.

Ø Finalised the draft report of the Task Groupon Development of Scheduled Castes andScheduled Tribes on Selected Agenda Itemsof the national Common MinimumProgramme.

Ø Prepared notes relating to MDGs for differentnational and international forums.


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Ø Prepared note on issues relating todemographic challenges and migration.

Ø Analysis of NSS data for poverty and othersocial indicators.

Ø Provided input for plan projections andmonitorable targets for the Eleventh Plan.

Ø Prepared �India Country Paper� on Strategiesfor Poverty Alleviation presented at IBSASeminar on �Economic Development andSocial Equity� held at Rio de Janeiro.

Seminars/Conferences/Training

7. The officers of the Division have participatedin the following activities:

Ø IMF Training Programme on FinancialProgramming and Policies at IMF Institute,Washington, D.C. during 5-16 December,2005

Ø Meeting of the Commission for SocialDevelopment at the UN Headquarters, NewYork.

Ø A Training Programme on �Techniques ofPoverty Analysis� at SAARC HumanResource Development Centre (SHRDC),Islamabad, Pakistan during 19th Septemberto 1st October, 2005

Ø Attended the Workshop on MarketInformation Survey of Households (MISH)held on 16th August, 2005 in NCAER.

Ø Workshop on Modernization of StatisticalSystem of India.

Ø Refresher Course for In-service ISS Officerson �Gender Issues� during 21-25thNovember, 2005 at Assam AdministrativeStaff College, Guwahati.

Ø Training programme on �HumanDevelopment� organised by UNDP at RBI�s

College of Agricultural Banking at Pune from4th to 9th April, 2005.

Ø Imparted training to IES and ISS probationerson macro-economic modeling, external sectorperformance, human development indices, etc.

4.21 RURAL DEVELOPMENT DIVISION

1. Rural Development Division is the nodaldivision in the Planning Commission for the executionof the UNDP assisted Project called �CapacityBuilding for Preparation of the State HumanDevelopment Reports (SHDRs)�.

2. The National Development Council (NDC)Committee on Transfer of Centrally SponsoredSchemes was set up in pursuance of the decision takenin the meeting of the NDC. The Rural DevelopmentDivision was the nodal Division for servicing theCommittee.

3. For the Annual Plan Document 2005-06 ofthe Planning Commission, the Chapter on PovertyAlleviation in Rural India-Strategies & Programmesand Development of Wastelands and Degraded Landswere prepared by the Rural Development Division.

4. The Annual Plan proposals and the Revisedestimates of the Ministry of Rural Development andthe Ministry of Panchayati Raj for the Annual Plan2005-06 were examined by the Rural DevelopmentDivision in detail. In addition, proposals received fromthe State/Union Territorries were also examined forthe Annual Plan 2005-06.

5. The Rural Development Division alsoparticipated in Working Group Discussions and wasinvolved in the preparation of background papers, etc.

6. Quarterly Performance Review (QPR) / HalfYearly Performance Review (HPR) meetings for theschemes of Ministry of Rural Development (MORD)were conducted by the Rural Development Divisionunder the Chairmanship of Member, PlanningCommission.

7. In addition, the Rural Development Divisionis also the nodal agency for UNDP funded project on


65

Decentralisation and Participatory Planning forPoverty Reduction which was approved by theGovernment in 2004-05. The project would beimplemented in nine districts of four States viz;Chhatisgarh, Rajasthan, Madhya Pradesh and Orissa.

8. Rural Development Division is also theExecuting Agency for Technical Assistance to Indiafor Participatory Poverty Assessment at the State level,Part II, of Asian Development Bank.

9. The Division also handled the work pertainingto Parliament Questions, VIP References and otherrepresentations received.

10. Senior Consultant(RD)/Adviser (RD) hasbeen a representative on several Committees whichinclude among others (i) Member, Board ofGovernors, Institute of Human Development, NewDelhi; (ii) Member, Consultative Group onSustainable Development in the Ministry ofEnvironment and Forests; (iii) Member, Committeefor Rural Roads Development Plan-Vision: 2025 (iv)Member of Governing Body of the National Councilof Applied Economic Research (NCAER), NewDelhi; (v) Member, Expert Group to develop concreteproposals for restructuring the Centrally SponsoredSchemes;(vi) Member, Committee to examine variousissues relating to Adoption of Modern Technologyfor resurvey of land records; (vii)Member, NationalMonitoring Committee for Reviewing andMonitoring the Progress of Implementation ofResettlement and Rehabilitation Projects, (viii)Member of Board of Governors of the Giri Instituteof Development Studies, Lucknow (ix) MemberProject Coordination for Preparation of State HumanDevelopment Reports (SHDRs) along with StatePlanning Departments and UNDP (x) Member ofthe Steering Committee on Provision of UrbanAmenities in Rural Areas (PURA);(xi) Member,Expert Committee on Reforming CAPART/NGO-GOI Interface � Action Points emerging from MidTem Appraisal of the Tenth Five Year Plan; (xii)Member, Central level Coordination Committeeunder Swarnjayanti Gram Swarozgar Yojana (SGSY);(xiii) Member, Project Approval Committee for SGSYSpecial Projects (xiv) Member, Advisory Committeefor Asian Development Bank Technical Assistance

Capacity Building for Social Development Project (xv)Member, High Power Expert Committee on BasicStatistics for Local Level Development

11. Director (RD) was a part of the national teamthat was assigned the task of preparing RegionalPoverty Profile 2005 brought out by the SAARCSecretariat, Kathmandu. Director (RD) wasappointed as a Consultant by the UNDP to assist theIndependent South Asian Commission on PovertyAlleviation to prepare the SAARC DevelopmentGoals. Director (RD) also attended a Conference onMacro Economic Policies for Poverty Reduction inAsia Pacific region held in October 2005 at Beijing,China. Director (RD) also participated in �RegionalHuman Development Capacity DevelopmentWorkshop� held in Colombo, Sri Lanka during 27-29 September, 2005.

12. Director (RD) is member of the followingCommittees: (i) Project Screening Committee forSwarnjayanti Gram Swarozgar Yojana (SGSY) SpecialProjects (ii) Standing Committee for the CommunityBased Pro-Poor Initiatives Programme (iii)Committee to formulate schemes to provide fundsdirectly to Panchayats (iv)Inter Ministerial Task Forceon Local Procurement of Foodgrains to meet demandsof Sampoorna Grameen Rozgar Yojana (SGRY) andNational Food for Work Programme (NFFWP).

4.22 SCIENCE & TECHNOLOGYDIVISION

1. The important activities of the Science andTechnology Division were relating to: collation of thephysical & financial development outcomes for theformulation of Outcome Budget, examination ofAnnual Plan proposals / projects / schemes pertainingto Central Scientific Departments/Agencies andStates/ UTs, Half-yearly Progress Review of their plans& programmes, etc.

2. The development outcomes of the CentralScientific Departments/Agencies namely Deptt. ofSpace (DOS), Deptt. of Atomic Energy (DAE-R&D),Deptt. of Science and Technology (DST), Deptt. ofScientific and Industrial Research (DSIR) includingCouncil of Scientific and Industrial Research (CSIR),


66

Deptt. of Biotechnology (DBT), Deptt. of OceanDevelopment (DOD) were prepared for theformulation of outcome budget. The Annual Plan(2006-07) proposals of these departments wereexamined and the plan discussions were held with theconcerned departments/agencies to finalize theiroutlays. Focus during discussion was made on patternof current year expenditure; surrendering theunutilized funds during 2004-05 and likely to besurrendered during 2005-06 in various plans &programmes. Emphasis was laid on undertaking thein-principle approval of all the new schemes/programmes before including them in the planproposals for implementation, identification of theschemes/programmes/projects which are consideredas the flagship schemes/ programmes/projects of theDepartment so that the targets and objectives of thethese programmes are achieved in the stipulated timeframe within available resources; undertaking welldefined time bound programme and optimalutilization of the existing infrastructure includingequipment and manpower both in basic and appliedfields; strengthening of the half-yearly performancereview mechanism.

3. Thrust was given on the promotion of new/frontier areas of Science and Technology and searchof new knowledge, promotion of industrial R&D,development of global competitive technology,achieving self-reliance in the fields of nuclear science,development and operationalisation of indigenoussatellite / launch vehicle, building a strong science andtechnology base, promotion of biotechnology researchfor bio-industrial development, survey and explorationof ocean resources, etc. The focus was also made onoptimal harnessing of S&T for societal benefits; R&Dprogrammes on mission mode; nurturing ofoutstanding scientists; attracting young scientists foradopting science as a career; strengthening linkagesbetween the industry and research institutions/laboratories; development of clean and eco-friendlytechnologies; application of nano-science &technology for water purification, drug deliverysystem, etc. The S&T Chapter for the Annual Plan2005-06 was prepared.

4. The activities relating to half-yearlyperformance review for the year 2005-06 and

finalization of the Annual Plan (2006-07) of theStates/UTs pertaining to Science and Technologysector were taken up with a focus on: identificationof projects / programmes specific for the developmentof the State in collaboration with the Central ScientificDepartments / Agencies, organizing State S&TCouncil meeting at least once in a year for providingpolicy guidelines and monitoring of the ongoing plansand programmes, getting projects sponsored fromCentral Scientific Departments / Agencies relevant tothe State.

15. The proposals submitted for in-principalapproval, EFC proposals, Cabinet/CabinetCommittee of Economic Affairs Papers, etc. in theareas of nuclear science, space science, ocean science,biotechnology, R&D for industrial development,promotion of science and technology etc wereexamined. The meetings related with EFC, revisedestimates for Annual Plan (2005-06) were attended.

4.23 SECRETARIAT FOR COMMITTEEON INFRASTRUCTURE

1. Government has constituted the Committeeon Infrastructure (COI) in August 2004 which isserviced by the Planning Commission through theSecretariat for the Committee on Infrastructure.The Secretariat has been assigned the followingfunctions:

(i) Service the meeting of the Committee onInfrastructure (COI) and follow up on theimplementation of the decisions taken thereonthrough the Empower Sub-Committee ofCOI, in consultation with the concernedministries.

(ii) Prepare policy papers required for theCommittee, especially relating to PPP asprivate sector projects in infrastructure sector.In discharging this function, the Secretariatwill seek the assistance of independent experts,stakeholders, relevant Ministries and subjectmatter Divisions of the Planning Commission.In this context, it will initiate consultationsand research and also hold seminars,workshops, etc. with the objective of evolving


67

suitable reform and policy initiatives forconsideration of the Committee onInfrastructure.

2. The Committee has held nine meetings tillDecember 2005 and identified quite a few areas ofreforms. The major areas on which action have beencompleted are listed below:

Ø Ministry of Railways in consultation withPlanning Commission has announced ascheme to allow private operators besidesCONCOR in the movement of containertraffic.

Ø A Model Concession Agreement for PublicPrivate Partnership in Highways has beenpublished.

Ø 30 Build, Operate and Transfer (BOT)projects covering about 1600 Km have beenawarded to accelerate PPP in nationalhighways development.

Ø A scheme for financing viable infrastructureprojects in the infrastructure sector through aSpecial Purpose Vehicle (SPV) has beenissued.

Ø A scheme to support public privatepartnership in infrastructure to operationalizethe viability gap funding facility ininfrastructure sectors has been issued.

Ø An Inter Ministerial Group has finalized areport on Rail Road Connectivity of majorports.

Ø An Inter Ministerial Group has finalized areport on custom procedures and functioningof Container Freight Stations and Ports.

Ø Contracts and concessions to be awardedduring the current year will exceed 6000 kmof national highways, which would exceed theearlier high of 3477 km in 2001-2002.

Ø 6500 km will be taken up for six-laning. Thiswill cover the entire Golden Quadrilateral.

Ø Feasibility studies for dedicated freightcorridors between Delhi-Mumbai and Delhi-Howrah are nearing completion.

4.24 INFRASTRUCTURE

Importance of infrastructure for theIndian economy

1. India is the world�s fourth largest economy,based on purchasing power parity, and among thefastest growing. It has grown at 8 % per annumduring the last three years and is poised to grow atover 8% per annum in the years to come. This robustgrowth has placed an increasing stress on the physicalinfrastructure such as power, roads, ports, airports andrailways, which are already carrying a significant deficitfrom the past. There is consensus that the on-goinggrowth in the manufacturing and service sectorswould be constrained if infrastructure services do notkeep pace. The government is, therefore, committedto building world-class infrastructure for improvingthe quality of life and enhancing competitiveness ofthe economy.

2. The public sector will continue to play adominant role. However, it would not be feasible tomobilize the requisite resources from the public sectoralone. Hence, the role of private participationassumes importance. It is expected that as in the caseof the telecom sector, competition and privateinvestment in these sectors will transform the face ofIndian infrastructure. The Government�s currentinitiatives are focused on enabling such competitionand private investment through the creation of anenabling policy and regulatory environment as wellas offering catalytic fiscal incentives where required.At the same time, protection of public interest is beingensured by institutionalizing the necessary frameworksand processes for due diligence, checks and balances.

Committee on Infrastructure

3. For ensuring that the above objectives arefulfilled, the Prime Minister has constituted aCommittee on Infrastructure, under his chairmanship,for steering the transition to an enabling policy andregulatory environment that would create world class


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infrastructure. The Committee includes the FinanceMinister, the Deputy Chairman of the PlanningCommission and the Ministers in-charge of therespective infrastructure Ministries.

Secretariat for the Committee on Infrastructure

4. The Committee is serviced by the PlanningCommission through the Secretariat for theCommittee on Infrastructure. The Secretariat has beenassigned the following functions:

(i) Service the meeting of the Committee onInfrastructure (COI) and follow up on theimplementation of the decisions taken thereofthrough the Empower Sub-Committee ofCOI, in consultation with the concernedministries.

(ii) Prepare policy papers required for theCommittee, especially relating to PPP asprivate sector projects in infrastructure sector.In discharging this function, the Secretariatwill seek the assistance of independent experts,stakeholders, relevant Ministries and subjectmatter Divisions of the Planning Commission.In this context, it will initiate consultationsand research and also hold seminars,workshops, etc. with the objective of evolvingsuitable reform and policy initiatives forconsideration of the Committee onInfrastructure.

Initiatives by COI

5. The Committee on Infrastructure has held tenmeetings till February 2006 and identified several areasof reforms. The major areas on which action havebeen addressed are listed below:

(i) Ministry of Railways in consultation withPlanning Commission has announced ascheme to allow private operators besidesCONCOR in the movement of containertraffic.

(ii) An Inter-Ministerial Task Force has submittedthe concept paper on the Western and Eastern

Freight Corridor Projects. The Organisationalset up and the role of the corporate entity tobe set up for this purpose has been approvedby the Committee.

(iii) A Model Concession Agreement for PublicPrivate Partnership in Highways has beenpublished.

(iv) 30 Build, Operate and Transfer (BOT)projects covering about 1600 Km have beenawarded by NHAI to accelerate PPP innational highways development.

(v) A scheme for financing viable infrastructureprojects in the infrastructure sector through aSpecial Purpose Vehicle (SPV) has been issuedby the Finance Ministry.

(vi) A scheme to support public privatepartnership in infrastructure to operationalizethe viability gap funding facility ininfrastructure sectors has been issued by theFinance Ministry.

(vii) An Inter Ministerial Group has finalized areport on Rail Road Connectivity of majorports and it has been accepted by theCommittee.

(viii) An Inter Ministerial Group has finalized areport on custom procedures and functioningof Container Freight Stations and Ports andit has been accepted by the Committee.

(ix) 6500 km will be taken up for six-laning. Thiswill cover the entire Golden Quadrilateral.

6. Action Plans have been articulated for eachinfrastructure sector. These plans consist of severalaction oriented measures, which have been taken upfor implementation. These measures to beimplemented in 2005-2012 are expected to fulfill theexisting infrastructure needs, as well as those that willemerge in the medium-term. An overview of theinitiatives in each sector is as follows:


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National Highways

7. For a country of India�s size, an efficient roadnetwork is necessary both for national integration aswell as for socio-economic development. The NationalHighways (NH), with a total length of 65,569 km,serve as the arterial network across the country. Theongoing programme of four-laning the 5,900 km longGolden Quadrilateral (GQ) connecting Delhi,Mumbai, Chennai and Kolkata is nearing completion.The ongoing four-laning of the 7,300 km North-South East-West (NSEW) corridor is to be completedby December 2009. In its third meeting held on 13th

January, 2005, the Committee on Infrastructureadopted an Action Plan for development of theNational Highways network. An ambitious NationalHighway Development Programme, involving a totalinvestment of Rs.1,72,000 crore upto 2012, has beenestablished. The main elements of the programme,as envisaged, are as follows:

Four-laning of the Golden Quadrilateral and NS-EW Corridors (NHDP I & II)

8. The NHDP Phase I and Phase II comprise ofthe Golden Quadrilaterial (GQ) linking the fourmetropolitan cities in India i.e. Delhi-Mumbai-Chennai-Kolkata, the North-South corridorconnecting Srinagar to Kanyakumari including theKochi-Salem spur and the East-West Corridorconnecting Silchar to Porbandar besides portconnectivity and some other projects on NationalHighways. Four-laning of the Golden Quadrilateralis nearing completion. The projects forming part ofNS-EW corridors are being awarded rapidly forcompletion by December 2009.

Four-laning of 10,000 k.m.(NHDP-III)

9. The Cabinet has approved the four-laning of10,000 km of high density national highways, throughthe BoT(Toll) mode. The programme will consist ofstretches of National Highways carrying high volumeof traffic, connecting state capitals with the NHDPPhases I and II network and providing connectivityto places of economic, commercial and touristimportance.

Six-laning of 6,500 k.m. (NHDP-V)

10. Under NHDP-V, the Committee onInfrastructure has, approved the six-laning of four-lane highways comprising the Golden Quadrilateraland certain other high density stretches, through PPPson Build, Operate and Transfer (BOT) basis. Thesecorridors have been four-laned under the first phaseof NHDP, and the programme for their six-laningwill commence in 2006, to be completed by 2012.Of the 6,500 km proposed under NHDP-V, about5,700 km shall be taken up in the GQ and the balance800 km would be selected on the basis of approvedeligibility criteria.

Development of 1000 km ofexpressways (NHDP-VI)

11. With the growing importance of certain urbancentres of India, particularly those located within afew hundred kilometers of each other, expresswayswould be both viable and beneficial. The Committeeon Infrastructure has approved that 1000 k.m. ofexpressways be developed on a BOT basis, at anindicative cost of Rs.15,000 crore. These expresswayswould be constructed on new alignments.

Two laning of 20,000 km (NHDP-IV)

12. With a view to providing balanced andequitable distribution of the improved/widenedhighways network throughout the country, NHDP-IV envisages upgradation of 20,000 km of suchhighways into two-lane highways, at an indicative costof Rs.25,000 crore. This will ensure that their capacity,speed and safety match minimum benchmarks fornational highways.

Other Highway Projects (NHDP-VII)

13. The development of ring roads, bypasses,grade separators and service roads is considerednecessary for full utilization of highway capacity aswell as for enhanced safety and efficiency. Therefore,a prgoramme for development of such features at anindicative cost of Rs.15,000 crore, has been mandated.Accelerated Road Development Programme for theNorth East Region


70

14. The Accelerated North-East RoadDevelopment Project is under consideration, whichwill mainly provide connectivity to all the state capitalsand district headquarters in the north-east. Theproposal would include upgrading other stretches onNH and state highways considered critical foreconomic development of the north-east region.

Institutional Initiatives

15. Steps are being taken for restructuring andstrengthening of National Highways Authority ofIndia (NHAI), which is the implementing agency forthe National Highway programme. Institutionalmechanisms have been established to addressbottlenecks arising from delays in environmentalclearance, land acquisition etc. A special focus is beingprovided for traffic management and safety relatedissues through the proposed Directorate of Safety andTraffic Management. It is expected that the sum totalof these initiatives should be able to deliver an efficientand safe highway network across the country.

16. In order to specify the policy and regulatoryframework on a fair and transparent basis, a ModelConcession Agreement(MCA) for PPPs in nationalhighways has been mandated. It is expected that thiscommon framework, based on international bestpractices, will significantly increase the pace of projectaward as well as ensure an optimal balance of risk andreward among all project participants.

Airports

17. The Committee on Infrastructure has initiatedseveral policy measures that would ensure time-boundcreation of world-class airports in India. Acomprehensive civil aviation policy is on the anvil.An independent Airports Economic RegulatoryAuthority Bill for economic regulation is also underconsideration. The policy of open skies introducedsome time ago has already provided a powerful spurtin traffic growth that has exceeded 20% per annumduring the past two years.

18. Green field international airports at Bangaloreand Hyderabad have been approved and are currentlyunder construction. These are likely to be

commissioned by middle of 2008. Modernisationand expansion of the Delhi and Mumbai airportsthrough PPPs has been awarded based on a rigorousand transparent competitive bidding and evaluationprocess . Other major airports such as Chennai andKolkata are also proposed to be taken up formodernisation through the PPP route. Similarly, toensure balanced airport development around thecountry, a comprehensive plan for the developmentof other 35 non-metro airports is also underpreparation. These measures are expected to bring atotal investment of Rs. 40,000 crore formodernisation of the airport infrastructure.

19. On the analogy of the highway sector, a ModelConcession Agreement is also being developed forstandardising and simplifying the PPP transactionsfor airports. Further, proposals for revamping theAirports Authority of India are to be finalised soon.This would include upgrading of the ATC services atthe airports. Issues relating to customs, immigrationand security are also being resolved in a manner thatenhances the efficiency of airport usage.

Ports

20. The experience of operating berths throughPPPs at the major ports in India has been quitesuccessful. It has, therefore, been decided to expandthe programme and allocate new berths to beconstructed through PPPs. A model concessionagreement is being formulated for this purpose.

21. Government has also decided to empower andenable the 12 Major Ports to attain world-classstandards. To this end, each Port is preparing aperspective plan for 20 years and a business plan forseven years. International experts have been engagedfor assisting the Ports in this exercise, which is likelyto be completed by April 2006. Recognising that theshipping industry is moving towards large vessels, aplan for capital dredging of major ports has also beeninitiated for implementation.

22. A high level committee has finalised the planfor improving rail-road connectivity of major ports.The plan is to be implemented within a period of threeyears. Further, changes in customs procedures are


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being carried out with a view to reducing the dwelltime and transaction costs. The government has alsodelegated enhanced powers to the respective PortTrusts for facilitating speedier decision-making andimplementation. At the same time, several measuresto simplify and streamline procedure related to securityand customs have also been initiated.

23. The Action Plan approved by the governmentis expected to bring a total investment of Rs.50,000crore in the port infrastructure. Such improvementin the scale and quality of Indian port infrastructurewill significantly improve India�s competitiveadvantage in an increasingly globalized world.

Railways

24. The rapid rise in international trade anddomestic cargo has placed a great strain on the Delhi-Mumbai and Delhi-Kolkata rail track. Governmenthas, therefore, decided to build dedicated freightcorridors in the Western and Eastern high-densityroutes. The investment is expected to be about Rs.22,000 crore. Requisite surveys and project reportsare in progress and work is expected to commencewithin a year.

25. With increasing containerization of cargo, thedemand for its movement by rail has grown rapidly.So far, container movement by rail was the monopolyof a public sector entity, CONCOR. The containermovement has been thrown open to competition andprivate sector entities have been made eligible forrunning container trains. 14 applicants have submittedthe application seeking permission for container trainoperation.

26. Tariff rationalization and effective costallocation mechanism are also on the anvil. Thisincludes a methodology for indexing the fare structureto line haul costs. Efforts aimed at introducingcommercial accounting and information technologysystems are also underway.

Catalytic Schemes to promoteinfrastructure development

27. Several infrastructure projects, despite beingeconomically viable, are financially unviable. The lack

of financial viability usually arises from long gestationperiods and limited financial returns, often caused bythe inability to increase user charges to commerciallevels. The government is committed to supportingsuch projects by providing a viability gap grant. Undera scheme approved recently, projects in infrastructuresectors such as power, roads, ports, airports, railways,water supply and urban transport will be eligible fora viability gap grant.

28. A Special Purpose Vehicle (SPV), called theIndia Infrastructure Finance Corporation Limited(IIFC) has been set up to lend funds with longer termmaturity to commercially viable projects ininfrastructure sectors, including projects whichbecome viable after receiving viability gap fundingfrom the government. The purpose is to supplementthe loans from banks and financial institutions, whichare currently deficient in providing long-term debt.The scheme shall ensure that infrastructure projectswhich may be rendered unviable due to long gestationperiods are not neglected due to unavailability of longterm debt in the financial markets.

29. The twin schemes for viability gap fundingand long-term debt to infrastructure projects are aneffort to address the critical gaps in private sectorfinancing of infrastructure. Through this package, thegovernment aims at leveraging scarce budgetaryresources for attracting a large pool of private capital.

4.25 SOCIO-ECONOMIC RESEARCHDIVISION

Grant-in-aid for Socio Economic Research

1. Socio Economic Research Division deals withthe scheme of grant-in-aid to universities/researchinstitutions for undertaking research studies andorganizing Seminars, Conferences, which are relevantfor the programmes and policies of the PlanningCommission.

2. Grant-in-aid amounting to Rs.87.00 Lakhwas released during the year 2005-06 (upto 31stDecember, 2005) comprising Rs.56.00lakh on studiesand Rs.31.00 lakh on Seminars/Workshops.


72

Annexure 4.24.1The studies approved during the year 2005-06 (*) under Socio Economic Research Scheme of the PlanningCommission:

(Rs.in Lakh)Sl. Title of Study Name of Institution AmountNo. Approved

1. Empowerment of Women through Institute of Social Development, 4.51Participation in PRIs: Some Structural UdaipurImpediments and Training Strategy.

2. Evaluation/Impact Assessment of Rural Centre for Market Research & Social 6.95Sports Programme in India Development, New Delhi

3. Multiple Impact of Droughts and Centre for Development Alternatives, 5.65Assessment of Drought Policy in selected Ahmedabadstates in India

4. A Study of Food related Nutrition Agricultural and Rural Development 5.40Deficiency in KBK Districts of Orissa. Consultancy Society, Bhubaneswar

5. Estimation of National Parameters for Institute of Economic Growth, 15.00Project Appraisal in India. New Delhi

6. A Paper on the Study of State Finance National Institute of Public Finance 5.00in India and Policy, New Delhi

7. Status Study of Tribal Handicrafts and its Socio Economic & Educational 5.90Industrial Potential in Rajasthan, Development Society, New DelhiUttaranchal and Chattisgarh.

8. Evaluation of Swaranjayanti Gram EKATARA - Society for Development 5.76Swarajgar Yojana (SGSY) in selected Alternatives for Women, Delhi.Blocks of M.P.

9. Mobilizing Resources through Reform Foundation for Public Economics and 11.26of State non-taxes sources for Policy Research.Plan Development.

10. Empowerment of Elected Scheduled Sulabh Institute of Development 2.49Cast Members of PRIs in Bihar. Studies, Patna

11. Impact of the Provisions of Panchayat Society for Integration and 5.82(Extension to the Scheduled Areas) Development Action, Jabalpur(MP)Act, 1996 on Tribal Development inMandla & Dindori Districts ofMadhya Pradesh.

12. Action Research in Participatory Development Support Centre, 7.84Irrigation Management (PIM0 in Ahmedabad.Gujarat and Andhra Pradesh.

*As on 31st Dec,2005


3. Two meetings of the Group of Advisers wereheld during the year to consider grant-in-aid forResearch Studies and Seminars/ Workshops. Proposalsfor grant-in-aid for 12 Studies and 41 Seminars wereapproved up to 31st December 2005. The details aregiven at Annexure 4.24.1 & 4.24.2.

(Rs. in lakhs)Grant-in-aid Approved Released(2005-2006)

150.00 87.00

Studies 56.00

Seminars 31.00

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Annexure 4.24.2

The Seminar/Workshops approved during the year 2005-06 under SER Scheme of the Planning Commission. (Rs.in Lakhs)

Item Title of Seminar / Workshop Institution ApprovedNo. Amount1. National Workshop on Centre for Indian BambooResource 0.50

�Bamboo Awareness Campaign in Schools.� & Technology, New Delhi.2. Strategic Management of Protected Areas. Lucknow University, Lucknow. 1.003. National Conference cum CME Program LNJP, Hospital, New Delhi. 1.50

on Burns.4. International Conference on � Local Institute of Small Enterprises & 1.50

Economic Development, Small & Development, Chennai.Medium Enterprises�.

5. National Congress on � Prevention of AIIMS, New Delhi. 1.50Chronic Kidney Diseases in India�.

6. International Conference on � Labour & Bharatiya Society for Socio Economic 1.50FDI.� Development in Global Arena,

New Delhi.7. Conference on �Decentralized Governance Jamia Millia Islamia, New Delhi 0.50

and Development �Promises Performanceand Prospects�.

8. Seminar on Regulatory Framework for Consumer Unity & Trust Society, 1.50Infrastructure Sector in India. Jaipur.

9. South Asia Regional Conference on Centre for Economic & Social Studies, 0.50Globalization of Agriculture in South Asia: Hyderabad.Has it made a difference to Rural Livelihood.

10. 13th National Conference of All India Birla Institute of Technology & �Input-Output Research Association. Science, Pilani.

11. International Conference on �Employment Institute of Human Development, 0.75& Income Security�. New Delhi.

12 Dr. D.S.Tyagi Memorial Lecture on Techno Economic Research Institute, 0.19� Managing India�s Water Resources� New Delhi.

13. National Seminar on �Indias Trades in the S.P.Inst. of Economic & Social 1.50next 25 years -(2025)� Research, Ahemdabad.

14. Seminar on �Planning. For DevelopmentSave Nlgiris Campaign, Chennai 1.50with Conservation in Hill Station-A case study of Nilgiris�

15. 4th Biennial Conference of INSEE-2005. Indian Society for Ecological 1.50Economics, Delhi.

16. Workshop on �Parking Nightmares which Road Users Safety Forum, Delhi 1.50way out?�

17. Recommendation of Twelfth Finance Giri Institute of Development Studies, 1.00Commission. Lucknow.

74


Item Title of Seminar / Workshop Institution ApprovedNo. Amount18. 11th International Conference on I.I.T, Haus Khas, New Delhi. 1.00

�Productivity & Quality Research�19. Convention on �Investment & Association for Development 1.50

Opportunities & Challenges in Orissa. Initiatives, Delhi20. Regional Workshop on �Rural

Development on Poverty Eradication� National Organization of 1.00Voluntary Association, Lucknow

21. International Symposium on M.A.M College, New Delhi. 1.50�Electronic in Cancer update 2005�

22. National Seminar on �Roadmap for Women & Child Development 0.50Disabled� Society in India, New Delhi.

23. National Seminar on �Adolescent Urivi Vikram Charitable Trust, 1.50Vision 2020� New Delhi.

24. National Seminar on �HIV/AIDS & The Energy & Resources Institute, 1.50Indian Industry� New Delhi.

25. All India Conference on �Modeling Sri Sathya Sai Institute of Higher 0.40Economic Behavior & Policy� Learning, Anantapur Distt.(A.P)

26. National Symposium on �Disabilities Society for Disability & 1.50Studies in India: New Directions for Future� Rehabilitation Studies, New Delhi.

27. National Conference on �Water Confederation of Indian Industry, 1.50Conclave 2005� New Delhi

28. National Workshop on �Development of AIIMS, New Delhi 1.00Guidelines for Effective Home Based Care &Treat ment of Children suffering fromAcute Severe under Nutrition�.

29. Symposium on Nutrition in Development The Nutrition Foundation of India, 1.50Transition New Delhi

30. Journal of Income & Wealth Vol. No. 24 Indian Association for Research in 0.25(Part I & II Combined) National Income & Wealth,New Delhi.

31. 12th International Conference to Promote Action for Food Production, 1.00Rainwater Harvesting New Delhi.

32. 19th National Conference on Agricultural The Indian Society of Marketing, 1.50Marketing Nagpur

33. National Seminar on Community Pandit GB Pant Institute of 0.70Participation in Reproductive and Child Studies in Rural Development,Health Programme in UP Lucknow

34. National Seminar on Entrepreneurship Birla Institute of Technology & 1.50Culture: Issues and Challenges of Small Science, Pilaniand Intermediate Entrepreneurs atGrass Root Level

35. National Seminar on Urban Transport Central Institute of Road Transport, 1.00Planning & Management Pune

75

4. Final reports in respect of 15 studies havebeen received during the year 2005-06 (Annexure-4.24.3).


Annexure 4.24.3The studies completed / received during the year 2005-06 under the SER Scheme of Planning

Commission.(As on 31st December, 2005)

S.No. Title Name of Research Institution

1. Rural Cluster Development � A Case Study Society for Economic & Social Transition,New Delhi

2. Efficacy and Effectiveness of Food for National Institute of Rural Development,Work Program element in the SGRY for Guwahati.Assam.

3. Collection, Collation & Dissemination of a Society for Socio Economic Studies and Services,Quality Statistics at Local Level. Kolkata.

4. Rural Housing & Living condition of people G.B. Pant Social Science Institute, Allahabad.settled in Rural U.P.

5. Inter Regional Economic Inequalities in Social Policy Research Institute, JaiputRajasthan

6. Economic Reforms & Regional Disparities Centre for Policy Research, New Delhi.in Economic Social Development in India.

7. Continuing Education Programme : Centre for Media Studies, New Delhi.An Impact Study

5. A total number of 123 study reports havebeen placed on the web site of the PlanningCommission.

Item Title of Seminar / Workshop Institution ApprovedNo. Amount36. Regional Workshop on Rural Development Kerala Education Development & 1.50

through Income Generating Activities and Employment Society,Empowerment of Women Thiruvananthapuram.

37. 47th Annual Conference of Indian Society Indian Society of Labour Economics. 1.50of Labour Economics

38. National Seminar on Managing Urban Regional Centre for Urban & 1.50Waste for Health Environment Environment Studies, Lucknow.

39. Regional Seminar on Rural Development & Vanarai, Pune 1.00Research on Poverty Eradication inMaharashtra

40. World Summit on Drug/Alcohol Abuse, Drug Abuse Information, 1.50Environment, HIV-AIDS, Population & Rehabilitation & Research Centre,Human Rights. Mumbai.

41. National Seminar on Accelerated Economic Indian Economic Association,Growth and Regional Balance New Delhi 1.50

* As on 31st Dec 2005

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6. Planning Commission receives the studyreports in hard copies as well as on CD/floppy. Foreasy accessibility and for better utilization andexchange of views, these reports are put on the website of the Planning Commission. Reports are alsocirculated to concerned Departments/Ministries at theCentre and States and Senior Officers of the PlanningCommission. The concerned Division in the PlanningCommission processes the study reports from thepoint of view of their relevance for policies andprogrammes.

4.26 SOCIAL JUSTICE AND WOMEN�SEMPOWERMENT

1. The Social Justice & Women EmpowermentDivision in the Planning Commission is responsiblefor providing overall guidance in the formulation ofpolices and programmes for �empowerment of womenand development of children� in the country. Whileperforming its tasks, the Subject Division acts in closeassociation with the nodal Department of the Womenand Child Development and other related Ministries/

Departments at the Centre and State Governmentsand the concerned Subject Divisions of the PlanningCommission. The major activities of the Divisionduring the year 2005-06 have been summarized inthe following paragraphs.

2. Follow up action on the recommendations ofthe Mid-Term Appraisal (MTA) of the Tenth Plan inthe Women and Child Development sector was amajor activity of the Subject Division during 2005-06. In this respect two major recommendations viz.(i) restructuring of Integrated Child DevelopmentServices (ICDS) Scheme and (ii) Beyond GenderBudgeting were identified by the prime Minister�sOffice (PMO) as action points for monitoring of theprogress of follow up action on a monthly basis. TheDivision carried out the necessary follow up actionon these action points and reported the progressachieved on a regular basis.

3. The Subject Division drafted the Chapter on�Women and Children� for inclusion in the AnnualPlan 2005-06 based on the approaches adopted forempowerment of women and development of


S.No. Title Name of Research Institution

8. Efficacy & Effectiveness of Food for Work Indira Gandhi Institute of Development Research,Programmes Element on SGRY for MRT. Mumbai.

9. Efficacy & Effectiveness of Food for Work Centre for Economic & Social Studies, Hyderabad.Programmes Element on SGRY for AndhraPradesh.

10. Efficacy & Effectiveness of Food for Work G.B. Pant Social Science Institute, Alllahabad.Programmes Element on SGRY forUttar Pradesh.

11. Developing Knowledge of Prtal on Indian Administration Staff College of India, HyderabadHealth & Population.

12. Status of Women�s Action Empowerment Periyar Maniammai College of TechnologyWomen in Thanjavur. for Women, Thanjavur, Tamil Nadu.

13. To Broadcast 52 episodes of Mazdoor Bonded Labour Liberation Front, New Delhi.Vani on Air.

14. Development of Policies & Rural Poverty VASUNDHARA, Bhubaneshwar.in Orissa.

15. Marginal Farmers & Options for Improving Giri Institute of Development Studies, Lucknow.their Livelihood : A Study of Uttaranchal.

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children in the Tenth Plan and keeping in view theon-going polices and programmes and thrust areasindicated in the National Common MinimumProgramme (NCMP). In this context various on-going welfare and development schemes/propgrammes were reviewed and strategy for takingeffective steps in line with the thrust areas of NCMPwere highlighted.

4. The Division examined the Annual Planproposals 2006-07 of the Department of Women andChild Development and assessed the scheme-wisefinancial requirements of the financial year. As aprelude to that minimum Gross Budgetary support(GBS) required for flagship schemes of theDepartment of Women and Child Development wereworked out in consultation with the Department asrequired by the PMO. The Adviser level meeting fordiscussion on the proposals of the Department for2006-07 was also organized as a prelude to theMember/ Member-Secretary level meeting. TheDivision also prepared and circulated the minutes ofthe Member level meeting on the Annual PlanProposals of the Department for 2006-07.

5. The Division also examined the proposals forthe Annual Plan 2006-07 of States / UTs in respect ofWomen and Child Development Sector and preparedSectoral Notes for the use of Deputy Chairman in hismeetings with the concerned Chief Minister whilefinalizing the Annual Plan 2006-07 of each State.Subsequently, the Division organized the State/UT-wise Working Group meetings for discussion of theproposals relating to �Women and Child� sector forthe Annual Plan 2006-07. In the Working Groupmeetings progress of the implementation of StateSector Policies and Programmes were reviewed andpriority areas, existing gaps and weak links wereidentified and necessary measures suggested toovercome the shortfalls/difficulties in theimplementation of the policies and programmes inthe Women and Child sector in each State/UT. Stateswere encouraged to enhance their activities for theempowerment of women and development ofchildren, especially by promoting income generatingactivities amongst women and their skill training forwage/self-employment of women. The Central SectorScheme of Swawlamban has been transferred to the

States from 2005-06. The States were, thereforeadvised to make adequate provision in their Plan forcontinuation of the scheme in the State Sector. In viewof the on-going emphasis on Gender budgeting andoutcome budget the States/UTs were advised that theirPlan proposal for the sector should also appropriatelyreflect on Gender Budgeting and outcome budget.

6. The Progress of the implementation ofvarious schemes by the Department of Women andChild Development were reviewed by the Divisionin the Quarterly/half-yearly Performance Review(QPR) meetings held in Planning Commission underthe Chairpersonship of Dr. Syeda Hameed, Member,Planning Commission.

7. �Women Component Plan� (WCP),introduced for the first time during Ninth Plan havebeen an effective mechanism for targeting publicexpenditure in favour of women. Through thisstrategy, efforts are being made to ensure that not lessthan 30% of funds/benefits are earmarked undervarious welfare and developmental schemes forwomen by the concerned Ministries/Departments.The Division pursued with all related Ministries andDepartments to effectively establish WCP in theirrespective sectors and to formulate and implementsuitable schemes for the benefit of women.

8. During 2004-05 the Department of WomenChild Development vide their EFC-Memo had Proposalfor Expansion of the (ICDS) Scheme, sharing the costof Supplementary Nutrition with the State Governmentsunder the ICDS scheme and Cabinet Notes withproposals for extension of the World Bank AssistedICDS, Phase �III including ICDS, extension of theWorld Bank Assisted ICDS Project in Andhra Pradeshunder Andhra Pradesh Economic Restructuring (APER)Programmes, Amendment to the Immoral Traffic(Prevention) Act, 1956, expansion of ICDS, revision ofFinancial Norms and expansion of Crèche Scheme &Merger & renaming as Rajiv Gandhi, National CrècheScheme for the Children of Working Mothers, sharingof cost of Supplementary Nutrition (ICDS) Scheme withStates/UTs, extension of the Rural Women�sDevelopment and Empowerment Project (Swa-Shakti)Project, amendment to the Commission of Sati(Prevention) Act 1987 (Act No.3 of 1998), protection


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of the women from Domestic Violence Bill� 2005 andExtension of Swayamsidha Scheme.

9. The Division handled Parliament Questionsand furnished relevant information to other SubjectDivisions of the Planning Commission and Ministries/Departments for preparing replies to the ParliamentQuestions received by them. Similarly, VIP referencesreceived in the Division were also dealt. The Divisionalso furnished necessary material relating to Womenand Child Sector for inclusion in the Economic Survey2005-06, President�s Address to the Joint Session ofthe Parliament, Prime Minister�s Independence DaySpeech and also prepared Speeches and Messages forthe Deputy Chairman, Planning Commission andMember in-charge of the sector.

10. The Division represented PlanningCommission and participated in the discussions in the�Inter-Departmental Committees on GenderBudgeting and Economic Classification� constitutedby the Ministry of Finance and �Inter-Ministerial TaskForce to review the population norms for a projectand Anganwadi Centres under ICDS� constituted bythe Department of Women and Child Development.The division was actively involved during 2005-06in the initiatives taken by the Department of Womenand Child Development in the Workshops forsensitizing Central Ministries/Departments on�Gender Budgeting�. The Division also representedthe Planning Commission as a member of GoverningBoard of the Rashtriya Mahila Kosh (RMK), GeneralBody of the Central Social Welfare Board (CSWB)and General Body and Executive Council of theNational Institute of Public Co-operation and ChildDevelopment (NIPCCD).

11. Gender Budgeting and Restructuring of ICDSare among the 75 action points identified by the PrimeMinister�s Office (PMO) for regular monitoring basedon the recommendations of the Mid Term Appraisalof the Tenth Five Year Plan. This Division furnishedthe progress report on the action points for thecombined progress report on the action pointsfurnished to the PMO by the Planning Commissionon a monthly basis.

12. The proposals for research studies, seminars,conferences etc. relating to the women & childdevelopment sector received through the Socio-Economic Research (SER) Division were examinedand comments on the same were offered. The Divisionalso represented in the Research Advisory Committeeof the Department of Women & Child Development.The Division offered its views/comments on thecoverage of Women and Child Development sectorin the proposals received from States under theRashtriya Sam Vikas Yojana (RSVY).

Empowerment of Women: Sectoral initiatives

13. Some of the important activities / initiativesundertaken during 2004-05 for women by thewomen related Ministries and Departments were asfollows:

(i) Being nodal department, the Department ofWomen and Child Development has thefollowing specific schemes and programmes,for socio-economic empowerment of women.�Swyamsidha�, is a major on-going scheme ofthe Department since 2001. The schemefocuses on socio-economic empowerment ofwomen through self-reliant women�s Self-Help Groups (SHGs). It is now underimplementation in 650 blocks of the country.

14. The Swa-Shakti funded jointly by the WorldBank and International fund for AgriculturalDevelopment (IFAD) was another such scheme underimplementation in selected States with the objectiveof enhancing women�s access to resources for betterquality life through formation of SHGs, skilldevelopment, credit linkage to take-up incomegenerating activities etc. The scheme has beendiscontinued after June 2005.

15. The Department is also implementing theSchemes of Support to Training-cum-EmploymentProgramme (STEP) and �Swawlamban� for skilltraining of women in traditional and non-traditionalsectors respectively. Swawlamban, however, has beentransferred to States w.e.f. 2005-06.


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16. The Rashtriya Mahila Kosh (RMK),established in 1993, has been playing a significantrole in expanding women SHGs and promotingthrift and credit activities among poor and asset lesswomen.

17. The scheme of Condensed Courses ofEducation implemented by the Central Social WelfareBoard through NGOs is another importantintervention for capacity building of women.

18. The scheme of Short-stay Homes is forproviding support service in terms of temporaryshelters to women and girls who are victims of maritalconflicts, family maladjustment, crime or any otherreason due to which they have been rendered homelessand have no place to live.

19. There is also an on-going scheme viz. Womenin Difficult Circumstances (Swadhar) to provideshelter, food, clothing and care to marginalizedwomen and girls like destitute, widows left in religiousplaces, women survivors of natural calamities,trafficked women and women victims of terroristviolence who do not have family support.

(ii) The Department of Women and ChildDevelopment, being the nodal Departmentfor development of women, has also beenentrusted, following the Union Budget 2005-06, to sensitize all Ministries/Departments andState Governments to co-ordinate the gender-budgeting exercise for the subsequentbudgets/Annual Reports.

(iii) In Pursuance to the announcement by thePrime Minister, on 15th August, 2001 aNutritional Programme for Adolescent Girls(NPAG) was launched by the PlanningCommission, in 51 district on a pilot basis in2002-03. The programme has been revivedand Department of Women and ChildDevelopment, Government of India isimplementing this scheme from 2005-06onwards. The Department has obtainedCabinet approval for the continuation of theprogramme in 2005-06.

(iv) Education is the most crucial investment inhuman development. Over the decades,considerable progress has been achieved interms of literacy, school enrolment, networkof schools and spread of institutions of highereducation including technical education.During the decade 1991-2001, while the maleliteracy went up by only 11.72%, the femaleliteracy rate went up by 14.87% in sameperiod. This has decreased the male femalegap to 21.70% in 2001 from 24.84% in 1991.

(v) A major initiative was taken with thelaunching of Sarva Siksha Abhiyan (SSA) in2001, (operational since 2002). The schemeencompasses all activities relating to schooleducation, viz., providing physicalinfrastructure, free textbooks for children,teacher education and their training etc.,besides encouraging enrolment of girlstudents, especially from the Scheduled Castesand Scheduled Tribes and Minorities.

(vi) The Mahila Samakhya (MS) launched in 1988in pursuance of the goals of the NewEducation Policy (1986) as a concreteprogramme for the education andempowerment of women in rural areas, aimsat providing women and adolescent girls,particularly from socially and economicallymarginalized groups, with necessary supportstructure and an informal learningenvironment to create opportunities foreducation, set in motion circumstances forlarger participation of women and girls informal and non-formal educationprogrammes and to create an environment inwhich education can serve the objectives ofwomen�s equality.

(vii) National Programme for Education of Girlsat the Elementary Level (NPEGEL) which, anew scheme is being implemented in specificareas with low female literacy with focus onintensive implementation and monitoring toenable each girl to be tracked with flexiblelearning packages to ensure different strategies


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to suit children in different circumstances,including out of school girls, drop out girls,working girls, girls from marginalized socialgroups, girls with low attendance and girlswith low levels of achievement to gain qualityelementary education and develop the self-esteem of girls through a community basedapproach. Another new scheme of KasturbaGandhi Swantantra Vidyalaya (KGSV)envisages opening of special schools for thegirl child, belonging to Scheduled Castes,Scheduled Tribes, Other Backward Classesand Minorities in low female literacy districtswith focus on educationally backward areasin terms of girls� education.

(viii) The Ministry of Social Justice &Empowerment is implementing the schemeof �Hostels for SC Girl Students� with theobjective to reduce the high drop out ratesand increase the retention rates amongst SCgirls at the middle, secondary and highersecondary schools, colleges and universitylevel. Under the scheme, Central Assistanceis provided on matching basis (50:50) toStates and 100% to UTs for construction ofHostel Buildings. The Central Sector Schemeof �Educational Complex in Low LiteracyPockets� is also being implemented by theMinistry of Tribal Affairs for the educationaldevelopment of women including girl childin 136 districts where the literacy rate isbelow 10% amongst ST women and girlchildren.

(ix) For economic empowerment of the weakersections of SCs, OBCs and Minorities, variousemployment-cum-income generationactivities have been implemented throughvarious agencies and Corporations with theultimate objective of making thesedisadvantaged groups economicallyindependent and self-reliant. There are specificearmarked incentives for women to take upincome generating activities under variousschemes implemented through theseCorporations.

(x) The Ministry of Rural Developmentimplements various anti-poverty programmeswith special focus on the empowerment ofwomen. These programmes have specialcomponents for women and funds areearmarked as Women�s Component to ensureflow of adequate resources for the purpose.The major schemes, having Women�sComponent implemented by the Ministry ofRural Development include the SwarnjayantiGram Swarozgar Yojana (SGSY), SampoornaGrameen Rozgar Yojana (SGRY), the IndiraAwas Yojana (IAY), the RestructuredCentrally Rural Sanitation Programme andthe Accelerated Rural Water SupplyProgramme. Under SGRY it is stipulated that30% of the employment opportunities shouldbe reserved for women; houses under IAY areto be allotted in the name of women membersof the households or alternatively in the jointnames of wife and husband; under SGSY,50% of the Self Help Groups in each blockshould be exclusively reserved for women.Women are encouraged to take advantage ofthrift and credit to make them self-reliant, Upto 10% of the allocated funds can be utilizedfor construction and maintenance of publiclatrines for women under RestructuredCentral Rural Sanitation Programme (CRSP),Under Accelerated Rural Water SupplyProgramme (ARWSP), training is beingoffered to women in using and maintenanceof hand pumps.

(xi) The Department of Land Resources and theDepartment of Drinking Water Supply haveissued guidelines for schemes being operatedby them like Haryali (for WatershedDevelopment), Accelerated Rural WaterSupply Scheme and Swajaldhara (for RuralDrinking Water) to have adequate provisionfor involvement of women in the managementof the assets created under the programme,such as at least 30% of hand pump mistriesunder NHRD and other training schemes,should be women of the local areas/habitations as they can take better care of theoperation and maintenance of the hand pump


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schemes than others. There should be womencaretakers for hand pumps in the habitations.Certificate about satisfactory completion ofthe schemes to be obtained from womengroups in the habitation and prominentwomen from the habitations should berepresented on the village level watermonitoring committees.

(xii) The Centrally Sponsored Scheme of �SwarnaJayanti Shahri Rozgar Yojana� (SJSRY) is amajor Urban Poverty Alleviation Programmetargeted to women beneficiaries. The schemeconsists of two sub-schemes, namely (i) UrbanSelf Employment Programme (USEP) and (ii)Urban Wage Employment Programme(UWEP).The scheme provides specialattention to women with minimum percentageof women beneficiaries to be at 30%.

(xiii) The Janani Suraksha Yojana (JSY)implemented by the Ministry of Health andFamily Welfare w.e.f. 12.4.2005 aims atreduction of maternal mortality/infantmortality. The benefits under the scheme willbe available to all women, both in rural andurban areas, belonging to BPL households andaged 19 years or above and up to the first twolive births. However, in ten low performingStates namely UP, Uttaranchal, MP, Jharkhand,Bihar, Rajasthan, Chhattisgarh, Orissa, Assamand J&K, the benefit will be extended uptothe third child if the mother of her own accordchooses to undergo sterilization in the healthfacility where she delivered, immediately afterdelivery. Cash benefits of Rs.500/- per livebirths is given to all pregnant women (BPL)after registration and at the time of delivery,irrespective of the place of delivery. Such eligiblebeneficiaries under the scheme, who deliver inhealth institutions, would get an additional cashbenefit of Rs.200/- if they belong to rural areasand Rs.100/- if they belong to urban areas often low performing States.

(xiv) The Accredited Social Health Activist(ASHA) launched from 2005-06 will be thefirst port of call for any health related demands

of deprived sections of the population,especially women and children, who find itdifficult to access health services. ASHA willbe a health activist in the community to createawareness, counsel and mobilize thecommunity and facilitate them in accessinghealth and health related services, work withthe Village Health & Sanitation Committeeof the Gram Panchayat to develop acomprehensive village health plan, arrangeescort/accompany pregnant women &children requiring treatment/ admission to thenearest pre- identified health facility, provideprimary medical care for minor ailments suchas diarrhoea, fevers and first aid for minorinjuries, inform about the births and deathsin her village and any unusual healthproblems/disease outbreaks in the communityto the Sub-Centres/Primary Health Centre etc.

(xv) The National Rural Health Mission (NRHM)has been launched in April 2005 for a periodof 7 years(2005-12) with a view to bringingabout dramatic improvement in the healthsystem and the health status of the people inthe country. The Mission seeks to provideuniversal access to equitable, affordable andquality health care which is accountable andresponsive to the needs of the people,reduction of child and maternal deaths as wellas population stabilization, gender anddemographic balance. In this process, theMission would help achieve goals set underthe National Health Policy and theMillennium Development Goals. It isanticipated that the National Rural HealthMission (NRHM) will accelerate achievementin respect of MMR and IMR. The NRHMhas identified 18 States for special attention,which have weak public health indicators and/or weak health infrastructure for specialattention in Uttar Pradesh, Bihar, Rajasathan,Madhya Pradesh, Chhattisgarh, Uttaranchal,Jharkhand, Orissa, Assam, Manipur,Meghalaya, Nagaland, Mizoram, ArunachalPradesh, Sikkim, Tripura, Himachal Pradesh,Jammu & Kashmir.


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Social Welfare Division (Other Special Groups)

20. The Social Welfare Division continued itsefforts towards fulfilling the Tenth Plan commitmentsof � i) Empowering Persons with Disabilities, (loco-motor, visual, hearing, speech and mental disabilities);ii) Reforming the Social Deviants who come inconflict with law (juvenile delinquents / vagrants, drugaddicts, alcoholics, sex workers, bettars etc.); and iii)Caring for the Other Disadvantaged (the aged,children in distress such as Street Children, orphaned/abandoned children etc.), in coordination with theMinistry of Social Justice and Empowerment (M/SE& E) and other related Ministries / Departments ofboth Centre and State Governments and UnionTerritories (UTs) to ensure effective implementationof various policies and programmes aimed at welfare,development and empowerment of these targetgroups. The Division prepared a detailed Chapter on�Other Special Groups� for inclusion in the AnnualPlan Document 2005-06.

21. The Annual Plan 2005-06 advocates thecontinuation of the three-pronged strategy adoptedin the Tenth Plan, with a special focus on theconvergence of existing services in related welfareand developmental sectors for attaining maximumbeneficiary coverage under the programmesextending preventive, curative, rehabilitation, welfareand developed services to these special groups. Themajor thrust in the Annual Plan 2005-06 has beento consolidate and strengthen the variousprogrammes through coordinated efforts andinnovative interventions in attending to the specialproblems and needs of these disadvantaged groupsthrough effective involvement and supplementationof voluntary action.

22. The rehabilitation and empowerment ofdisabled persons is a statutory responsibility of theGovernment as per the Persons with Disability (PWD)Act, 1995. The Ministry has taken up various schemesand programmes to implement various provisions ofthe PWD Act, 1995, to fulfil the earlier commitmentto empower as many disabled as possible so theybecome active, self-reliant and productive contributorsto the national economic development and further

the Ministry is expanding scope of the PWD Actmaking it more disabled-friendly.

23. Recognising that social deviants such asjuvenile delinquents, alcohol and drug addicts arevictims of circumstances and situational compulsionsrather than habitual criminals engaged in organizedcrime, the Annual Plan 2005-06 supports the efficientimplementation of the Juvenile Justice (Care andProtection of Children) Act, 2000, with the mainobjective to reform and rehabilitate social deviants ina humane rather than a punitive environment.

24. The Division has examined a number ofExpenditure Finance Committee (EFC ) / StandingFinance Committee (SFC) proposals submitted by theMinistry of Social Justice & Empowerment for theSocial Welfare schemes in close consultation withProject Appraisal and Management Division (PAMD).The Division also offered comments on variousproposals submitted by the Ministry of Social Justice& Empowerment such as : Notes for CabinetCommittee on Economic Affairs (CCEA),Background notes for Consultative Groups and Inter-Ministerial Committee / Task Force on Mid-TermAppraisal of Tenth Plan and other proposals relatingto the schemes meant for welfare and developmentof disadvantaged groups / other special groups. Ascheme �Welfare of Children in Need of Care andProtection�, with the objective of catering to childworkers / potential child workers to facilitate theirentry into mainstream education through non-formal/bridge courses was appraised and approved but thescheme could not be taken up as it is still underconsideration of the Hon�ble Supreme Court. Theother EFC / SFC proposals examined by the Divisioninclude �Revision of the Scheme for JuvenileMaladjustment�, �Setting up of the National Institutefor Multiple Disabilities�, Setting up of the �Collegeof Rehabilitation Sciences�, �National Commission forPersons with Disabilities� and �Awareness GenerationScheme for Prevention and Rehabilitation for Personswith Disabilities and awareness generation throughTelevision for various aspects of Disabilities�.

25. The Subject Division reviewed in-depth theQuarterly Performance of the implementation ofvarious schemes under Social Welfare sector, for the


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year 2005-06. The Quarterly Performance Review(QPR) meetings were held under the Chairmanshipof Dr. B.C. Mungekar, Member, PlanningCommission. The Ministry was advised to developan effective mechanism for monitoring andevaluation of each scheme according to theprescribed formats which could be utilised forreceiving the data on a systematic basis, especiallyfrom the State Governments / NGOs, etc. Anothersuggestion was made to improve the monitoringmechanism of the Ministry and restore the earlierpractice of preparation of the Annual Action Plans(for submission to the Cabinet Secretariat), whichmay include information on both budgetary(physical and financial targets and achievements)and non-budgetary items (information on Policies).This would help the monthly meetings at theSecretary, M/SJ & E level to monitor the progressof expenditure and help in getting feedback on aregular basis. It was also suggested that the Ministryshould play a more pro-active role in helping Statesto identify their thrust areas, fixing physical andfinancial targets and monitoring the progress. TheSocial Welfare Division also reviewed the QuarterlyPerformance of the State Sector Schemes andCentrally Sponsored Schemes of the States / UTs.

26. The Mid-Term Appraisal (MTA) of the TenthPlan pertaining to the Social Welfare Sector was themajor exercise undertaken during the financial year2004-05. The exhaustive and comprehensivediscussions and consultations were held at the differentlevel / groups which included academicians, socialworkers, voluntary organizations and NationalInstitutions for reviewing critically the ongoingprogrammes / schemes of the Tenth Plan. Based onthe recommendations of the expert group afterdiscussion, the suggestions for remedial measures inthe weak areas of implementation and monitoring ofthe policies / programmes were appropriatelyincorporated in the draft MTA chapter. The detaileddraft MTA chapter was prepared for inclusion in thefinal MTA document highlighting objectives, targets,achievements, shortfall and corrective measures.

27. Detailed discussions were held with theMinistry of SJ&E with regard to the finalisation ofthe Annual Plan 2005-06. The proposals of the

Ministry were reviewed along with the progressachieved and the need based financial requirementsassessed to enable the Plan Co-ordination Divisionin finalizing the outlays for the Ministry. Subsequently,scheme wise allocations of the approved outlay forthe Annual Plan (2005-06) were also made inconsultation with the Ministry. The Ministry has beenadvised to fix annual and quarterly monitorablephysical and financial targets for the various schemes.Similarly, the progress of implementation of thevarious programmes of the State Governments hasalso been reviewed and the State Governments weresuggested to improve their both financial and physicalperformance.

28. The State Annual Plans (2005-06) WorkingGroup meetings for the Social Welfare includingWomen and Child Development Sector, were heldunder the Chairmanship of Adviser (SJ & WE), whichwere attended by the State representatives and thenodal Ministry of SJ & E. Besides, reviewing theprogress of various programmes and policies, theWorking Groups also made an assessment of thefinancial requirements for each States andrecommended allocation of the resources for the sectorand the brief notes were prepared, which providedinputs for the meetings between the State ChiefMinisters and the Deputy Chairman, PlanningCommission for finalization of the Annual Plans ofStates and UTs.

29. While reviewing the Half-Yearly PerformanceReview of the schemes of M/SJ & E and the States,the Division took note of the outcome-budget exerciseto facilitate effective and timely implementation ofvarious schemes of the Ministry. Though majority ofthe schemes under the Social Welfare Sector by andlarge do not have direct visible and measurable impact,which could be quantified, the progress of expenditureand the progress of physical targets remained the focusduring various discussions held with the Ministry andthe States.

30. The Division also critically examined andoffered comments on various research proposals /projects concerning welfare and development ofdisadvantaged groups / other special groupssubmitted by academic institutions and NGOs


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seeking grant from the Planning Commission andthe Ministry of Social Justice & Empowerment.Besides, the Division attended the work relating tothe Parliament Questions, VIP letters and providedinputs for the Speeches by the Prime Minister,Finance Minister and Deputy Chairman, PlanningCommission delivered at various occasions. Manyfield visits were carried by the officials of theDivision to have firsthand information on theprogress and the impact of the various ongoingprogrammes / schemes in different parts of thecountry.

4.27 STATE PLANS DIVISION

1. The State Plans Division in the PlanningCommission is entrusted with the responsibility ofassisting in finalizing the Annual Plans and Five YearPlans of States/Union Territories. The Divisioncoordinates all activities relating to the formulationof plans of States/Union Territories such as issuing ofguidelines, organizing meetings between DeputyChairman and Chief Ministers/Governors/Lt.Governors of States/Union Territories for decidingthe plan size as well as organising Working GroupMeetings for finalisation of sectoral outlays of States/Union Territories. The Division also deals withmatters relating to sanction of Additional CentralAssistance to States/Union Territories for specificschemes/projects and also proposals regardingexternally aided projects, Planning Commission�sProject Preparation Facility and revised outlays ofStates/Union Territories. Matters relating to Inter-State and Centre-State relations on Planning asreferred to by the Inter-State Council, NaturalCalamities and recommendations of the FinanceCommission are also dealt by this Division. TheDivision is the repository of detailed informationrelating to Plan Outlays and Expenditure of States /Union Territories.

2. During the year 2005-06, besides performingthe above functions, the Division dealt with VIPreferences and Parliament Questions relating to theStates/Union Territories Annual Plan outlays, RevisedOutlays, Expenditures, Externally Aided Projects etc.The Inter-Ministry Task Group on Special Problems

of Habitations in Hilly Terrains is also being servicedby the Division.

Annual Plan 2005-06:

3. The meetings at the level of the DeputyChairman with Chief Ministers of States/UnionTerritories to discuss the Annual Plans of differentStates and Union Territories were held during the year2005-06 so that the approved Plan could provide atimely and meaningful input into the State budgetsfor 2005-06.

4. A total of Rs.62115.00 crore was providedin the Budget Estimates for 2005-06 as Centralassistance for State and UT Plans of whichRs.28211.00 crore was on account of Normal CentralAssistance, Rs. 3987.33 crore as Additional CentralAssistance for Externally Aided Projects and theremaining Rs.29916.67 crore for special programmeslike Backward Districts / Area Fund, National UrbanRenewal Mission etc.

5. With a view to ensuring investment in prioritysectors as per plan objectives, the practice ofearmarking of outlays under selected schemes/projectswas continued. Outlays under various schemes likePregnant & Lactating Women & Adolescents, fundgiven under article 275(1) for welfare anddevelopment of Scheduled Tribes and for improvingthe administration in scheduled areas, AcceleratedPower Development Reform Programme, AcceleratedIrrigation Benefit Programme, Border AreaDevelopment Programme, Development ReformFacility and Initiative for Strengthening UrbanInfrastructure and also ACA�s given for specificschemes were earmarked.

Core Plan:

6. In order to have a realistic plan outlay, thePlan size of the States is based on the principle of acore plan, which takes into consideration [a] the trendof aggregate actual resource mobilization for the StatePlan in previous years, and [b] a realistic andconservative estimate of resources available forfinancing the Plan.


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Half Yearly Performance Reviews (HPRs):

7. With a view to ensuring speedy implemen-tation of Plan schemes by the States and improveutilization of funds, the system of reviewing thePlan performances of States was introduced as apart of the Tenth Plan initiatives. These reviewsprovide a forum for suggestions for mid-courseadjustment required for the speedy implementationof Plan schemes. The HPR meetings of States/Union Territories for Annual Plan 2005-06 weretaken by the Members / State Plan Advisersconcerned.

Strengthening State Plans forHuman Development

8. The Planning Commission (State PlansDivision) has initiated a new project �StrengtheningState Plans for Human Development�, with theassistance of United Nations DevelopmentProgramme (UNDP). The Project has been designedto assist state governments in following up to theirrespective State Human Development Reports(SHDRs). The main activities of the project includecreation of Human Development Cells within eachState; strengthening State Statistical systems; andencouraging related research & training including inthe financing of human development. A series ofworkshops were organised to familiarise the variousState governments with the proposed activities of thenew project and assistance extended to States whichhad completed their SHDRs.

Planning Commission�s Project PreparationFacility (PCPPF):

9. To assist State Governments to undertakepreparation of project reports with a view to attractingexternal and institutional financing for developmentprojects, the Planning Commission�s ProjectPreparation Facility (PCPPF) is being implemented.States, which have received less than Rs.500 croresof external assistance during the preceding year, areeligible for assistance under the PCPPF. Assistanceupto Rs.25 lakhs is provided to enable StateGovernments to engage professional consultants forthe preparation of a report.

10. During 2005-06 assistance under PCPPF wasprovided for preparation of project reports relatingto Optimum and Conjugative Use of Water Resourcesin Himachal Pradesh and Strategic Option Study onState Roads Project in Uttaranchal.

State Development Reports (SDRs):

11. To provide a quality reference document onthe development profile and set out strategies foraccelerating the economic growth rate of States, thePlanning Commission in coordination with the StateGovernments and independent institutions & experts,is preparing State Development Reports (SDRs).During 2005-06, SDR�s of Rajasthan, Tamil Naduand Maharashtra were finalised.

Island Development Authority (IDA):

12. The Island Development Authority Cell servesas the secretariat for the Island DevelopmentAuthority (IDA) constituted under the Chairmanshipof Prime Minister and its Standing Committee underDeputy Chairman, Planning Commission. The IDAdecides on policies and programmes for integrateddevelopment of Andaman & Nicobar Islands andLakshadweep, keeping in view all aspects ofenvironmental protection as well as the specialtechnical and scientific requirements of the islands,and reviews the progress of implementation & impactof the development programmes.

13. The thrust areas for the development of theisland territories were identified and major changesin the policies and programmes were reviewed at thelast Meetings of the IDA held in January 2003. Ameeting of the Standing Committee of IDA was heldin April, 2005. It reviewed the TsunamiReconstruction Plan in the Andaman & NicobarIslands, follow-up action on decisions at the lastmeetings of the IDA and Standing Committee anddiscussed the Telecommunication requirements ofthe island territories, setting up of SEZ in theAndaman & Nicobar Islands and action taken onEnvironment related orders of the Hon�ble SupremeCourt.


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Disaster Management and Natural CalamityRelief:

14. Officers from the State Plans Divisions werepart of the Central Teams that were formed to visitStates to assess the situation on the wake of a calamity.During the year Central Teams visited the States ofAndhra Pradesh, Arunachal Pradesh, Gujarat,Himachal Pradesh, Jammu & Kashmir, Jharkhand,Karnataka, Kerala, Madhya Pradesh, Maharashtra,Pondicherry, Rajasthan, Sikkim, Tamil Nadu and UttarPradesh. The Division also examines and scrutinizesfrom a development perspective policy proposals ofthe Ministry of Home Affairs relating to disastermanagement.

4.28 STATE PLANS DIVISION-DEVELOPMENT OF NORTHEASTERN REGION

1. Planning and development of an area withinthe State is primarily the responsibility of theconcerned State Governments. However, within anoverall State oriented approach, certain regions acrossand within States, for historical and special reasons,call for a focused area development approach. To dealwith the specific problems of these areas, region-specific plan strategies are formulated keeping in viewthe basic needs of the people and priorities of the StateGovernments concerned. Planning Commission�sstrategy in this regard has been to supplement theefforts of the State Governments by targeting suchdisadvantaged areas with funds for capital investments.

2. The North Eastern Region comprises Assam,Arunachal Pradesh, Manipur, Meghalaya, Mizoram,Nagaland and Tripura. The trauma of partition,political evolution combined with the geographicallocation, transport bottlenecks, natural calamities, etc.,have hindered the progress of the North East, andthe region has experienced relatively slower economicgrowth compared to the rest of the country. Most ofthe north eastern States joined the planneddevelopment process later than many other States. Fordevelopment purposes, Sikkim too is treated at parwith the other States of the north east region. Specialfocus had been given on the economic developmentof the north eastern region and Sikkim during the

earlier Plan periods, and strategies adopted forremoval of infrastructural bottlenecks, provisioningof basic minimum services and creating an overallenvironment for private investment. Despite theseefforts, the recent growth performance of these Stateshas not been encouraging. The continued efforts ofthe Government towards removing the impedimentsto lasting peace in the North East, and the improvedsecurity scenario during the recent past has raisedhopes for faster economic development of the region.The Government of India�s commitment toaccelerating the pace of socio-economic developmentof the region is reflected in the creation of a dedicatedMinistry of Development of North Eastern Regionto coordinate and give impetus to the Centre�sdevelopment efforts.

3. Recognising the special problems of the region,significant levels of Central assistance to State Planshave been a feature of planning in the north easternStates. Even among the special category States, the percapita levels of Central assistance are among the highestin the country. Further, a number of specialarrangements and initiatives have been taken to accordpriority to the development of the region. The NorthEastern Council (NEC) set up in 1972 is an advisorybody empowered to discuss matters of common interestto the Union and the north eastern States andrecommend to the Central/State Governments anymatter of common interest, interalia, in the fields ofeconomic and social planning, inter-State transport andcommunications, power and flood control, etc. Forsecuring a balanced development, the NEC mayformulate, for the member States, a regional plan inregard to matters of common importance to more thanone State of the region, and indicate priorities of theprojects/schemes included in the plan and their location.The role of the Ministry of Development of NorthEastern Region (DoNER) is to create synergy andensure convergence of programmes by coordinatingthe efforts of both Central agencies and the StateGovernments and by meeting the last mile resourceneeds for completion of projects. The Ministry is toact as a catalyst in stimulating the development processand focus on increasing opportunities for productiveemployment, strengthening infrastructure, particularlyconnectivity and communication, together with


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ensuring accountability in the implementation ofprojects.

4. Planning Commission, on its part has beenencouraging development of NE region by allocatingfunds to the eight states for their Five Year Plans and

Annual Plans as 90% grant and 10% loan as all theStates of the region have been included in the SpecialCategory States. The agreed outlay for funding theAnnual Plans of these states and for NEC, for the firstthree years of Tenth Five Year Plan (2002-07) are givenbelow :


Annual Plan Outlay for Tenth Five Year Plan (2002-07)(Rs.Cr)

Tenth Plan Annual Annual Annual AnnualProjected Plan Plan Plan Plan

2002-03 2003-04 2004-05 2005-06

Arunachal Pradesh 3888 676 723* 760.35 950.00

Assam 8315 1750 1797* 2175.00 3000.00

Manipur 2804 550 590 789.11* 915.00

Meghalaya 3009 480* 536* 679.00* 800.00

Mizoram 2300 489* 525* 639.45* 685.00

Nagaland 2228 427* 504* 574.33* 620.00

Sikkim 1656 370* 405 492.74* 500.00

Tripura 4500 625 622* 725.37* 804.00

North Eastern Council (NEC) 3500 450 500 500.00 500.00Total 32200 5817 6202 7364.93 8774.00

* Revised approved outlay.

5. Central Assistance provided to the statesunder their plans include funds for programmes likeBoarder Area Development Programme(BADP), HillArea Development Programme (HADP), AcceleratedPower Development & Reforms Programme(APDRP), Accelerated Irrigation Benefit Programme(AIBP), National Social Assistance Programme(NSAP), Mid-day Meal(MDM), Roads and Bridges,Initiative for Strengthening for Urban Infrastrcuture(ISUI), etc. Funds are also provided as AdditionalCentral Assistance (ACA) for specific projects,Externally Aided Projects (EAPs) etc.

6. The Department of Development of NorthEastern Region (DoNER) has been allottedRs.650.00 crores during 2005-06 for funding ofprojects in the North Eastern States under the NonLapsable Central Pool of Resources (NLCPR).

NLCPR was created by the Planning Commission in1998-99 for the North Eastern states out of theunspent amount of stipulated 10% of GBS to supportinfrastructure development projects in the North East.This provision is classified as Central Assistance forState Plans.

7. The Tenth Plan projected outlay for centralschemes of DoNER is Rs. 150.00 crores. Thisprovision is mainly for the four schemes viz., Advocacy(Rs.22.50 crore), Capacity Building (Rs.22.50crore),NEDFI (Rs.100 crore) and Sikkim MiningCorporation (Rs.5 crore). The budget support for thesefour schemes for 2005-06 is Rs.39.75 crore whichincludes Rs.5.00 crore for Advocacy, Rs.12.40 crorefor Capacity Building and Rs.22.33 crore for NEDFI.

8. At the initiative of the Planning Commission,preparation of State Development Reports (SDRs)

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have been taken up for all the States of the region.The salient aim of these Reports is to provide a qualityreference document on the development profile of theStates and to suggest strategies for accelerating thegrowth rate of the States. These are intended to act asmajor inputs for Development. Assam DevelopmentReport, first in the series has been published. DraftSDRs for all the other States of the region are atvarious stages of preparation.

9. During 2004-05, a Task Force onDevelopment Initiatives for the North Eastern Regionhas been constituted. The Task Force is headed byShri B.N. Yugandher, Member, Planning Commissionwith Secretaries of various Central Ministries andconcerned Principal Advisers/Advisers in the PlanningCommission as its members. The Task Force report islikely to be finalized by the end of the current year.

4.29 TRANSPORT DIVISION

1. The Transport Division is primarily involvedin the process of planning and development for theTransport sector to meet the growing traffic demandin the country. It is also concerned with overallbudgetary planning for various modes of transportfor attaining appropriate inter-modal mix in thetransport network. Some of the important activitiesundertaken are indicated below :

Ø Demand Assessment for transport services ofpassenger and goods traffic.

Ø Assessment of existing capacity of differentmodes and estimation of resource requirementfor the plan.

Ø Identification of role of private sectorinvestment in the infrastructure and transportservices to supplement the Government efforts

Ø Overall planning of transport sector in thecountry.

Ø Finalization of Annual Plan outlay for variousmodes of transport.

Ø Assessment of resources of State RoadTransport Undertakings.

Ø Review of progress of major transportprojects.

2. The salient activities and taken during the yearby Transport Division are as follows :

(i) The chapter on the Transport sector for theAnnual Plan 2005-06 Document wasfinalized.

(ii) Carried assessment of resources of 38 StateRoad Transport Undertakings for the AnnualPlan 2006-07, which involves physical andfinancial parameters of passenger and freightservices operation by the undertakings for thepurpose of inclusion of the resourcesgenerated in the Annual Plan of the concernedState Government. The Undertakings duringthe discussions were also advised to takesuitable measures to improve theirperformance and bring down the increasinglosses.

(iii) Externally Aided Project proposals for theAnnual Plan 2006-07 for some of the Stateswere discussed and recommendations madeafter in-depth examination.

(iv) Annual Plan 2006-07 proposals in respect ofState Governments / UTs and NEC werediscussed and recommendations made afterin-depth examination.

(v) Annual Plan 2006-07 proposals of the CentralMinistries were discussed and recommenda-tions made after in-depth examination.

(vi) Investment proposals received from CentralMinistries of Railways, Road Transport &Highways, Shipping and Civil Aviation wereexamined in association with Project Appraisaland Management Division before these wereconsidered by the Expenditure FinanceCommittee (EFC), Public Investment Board(PIB) and Expanded Board of Railways (EBR).

(vii) A system of Half Yearly Performance Review(HYPR) meetings has been introduced as a


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monitoring mechanism to review the progressof various plan schemes. The HYPR meetingsfor Transport sector Ministries were held toreview the progress of various Transport sectorprojects.

(viii) Participated and made significantcontributions in the meetings of Committeeon Infrastructure, relating to railways, roads,ports and airports, with the objective ofinitiating policies to ensure creation of worldclass infrastructure facilities, developingstructures that maximize the role of publicprivate partnership and monitoring ofinfrastructure projects.

(ix) Participated in the meetings of the Board ofGovernors of Construction IndustryDevelopment Council.

(x) Attended meetings of various Committees /Groups, which included Committee on RuralInfrastructure set up by PMO on Bharat Nirmanand Empowered Committee on PMGSY set upby the Ministry of Rural Development.

(xi) A number of Board Meetings of NationalHighway Authority of India (NHAI) wereheld during the year. The agenda items, whichincluded detailed project reports for varioussegments of NHDP for award of contractwere received for examination and commentsoffered as an input for decision making at theNHAI Board Meetings.

(xii) Engaged M/s RITES to conduct a totaltransport system study with the broadobjective of generating and analyzing inter-modal transport resource costs and trafficflows covering major modes of transport anddetermining an optimal inter-modal mix andallocation of transport investment.

4.30 TOURISM CELL

1. The Tourism cell assists Planning Commissionin the matters relating to policy making, planning anddevelopment of the tourism sector to meet thegrowing demand for tourism in the country. It is

concerned with the overall budgetary and physicalplanning for the tourism sector.

2. Annual Plan proposals for 2006-07 ofMinistry of Tourism and proposals for tourism sectoroutlays of Annual Plan 2006-07 of State Governments/UTs were discussed and recommendations were madeafter having in-depth examination of the proposals.

3. The Annual Plan Chapter 2004-05 onTourism Sector has been prepared.

4. Investment proposals formulated by Ministryof Tourism were appraised and Standing FinanceCommittee meetings were attended to take necessaryinvestment decisions.

5. Revised guidelines of plan schemes of theMinistry of Tourism, consequent upon the merger /re-classification, were examined and comments offered.

6. Quarterly Performance Review meetings forthe quarters of 2004-05 and Half-yearly PerformanceReview meeting for 2005-06 (April-September) wereheld under the Chairmanship of Member. Themeetings reviewed the progress of implementation ofPlan schemes, identified issues and suggested measuresfor development of tourism in the country.

4.31 VILLAGE AND SMALLENTERPRISES

1. Village and Small Enterprires Division dealswith the following Ministries:

Ø Ministry of Small Scale Industries

Ø Ministry of Agro and Rural Industries

Ø Ministry of Textiles

Ø Ministry of Food Processing Industries

Annual Plan 2005-06 for States/UTs

2. Annual Plan for 2005-06 and 2006-07proposals in respect of States/UTs were discussed andappropriate recommendations were made forfinalising the Plans for the VSE Sector. Projects/


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schemes posed for Additional Central Assistance,External Aide, received from various States have beenscrutinized and necessary comments, suggestions andrecommendations were made for implementation andnecessary action.

Annual Plan 2005-06 for Central Ministries

3. Annual Plan 2006-07 proposals in respect ofMinistry of Small Scale Industries, Ministry of Agro& Rural Industries, Ministry of Textiles (VSE) andMinistry of Food Processing Industries were discussedwith the officials of Ministries and appropriate outlayswere recommended. Half Yearly Progress of theCentral Ministries was reviewed during the year.

4. Other Important Activities of the Divisionare :

Ø The developmental schemes/programmesunder implementation in the VSE Sector byvarious Ministries are catering to the needs ofwomen, Scheduled Castes, Scheduled Tribes,minorities, etc. as per mandatoryrequirements.

Ø Based on the recommendations of the Mid-Term Appraisal of the 10th Five Year Plan, totake up the handlooms to a position ofstrength by ensuring strong linkages betweenits production base and market as it comesnext to agriculture in providing employmentopportunities to rural population and alsocontributing in exports. A SteeringCommittee has been constituted under thechairpersonship of Dr. Ms. Syeda Hameed,Member, Planning Commission.

Ø The Planning Commission has alsoconstituted a Task Force on Creative &Cultural Industries under the chairpersonshipof Dr. Ms. Syeda Hameed, Member, PlanningCommission, for preparing a road maptowards greater synergy between cultural andcreative industries and artisans, craftsmen,performers, etc. A need was felt to redefineand rejuvenate the cultural and creativeindustries so as to enable the artisans/craftsmen/performers to achieve higherproduction, exports, self-employment and

employment to fellow persons resulting inbetter quality standards for life. World overfusion of technology, ethnic trends, designsand creative capacities are being utilised tocreate new products, thereby increasing nichemarkets for such blends of products, whichwould enhance aesthetics, utility and newtechnologies.

Ø The Division assisted the Team of Expertsconstituted to examine issues relating toappropriate nodal Ministry for administeringthe proposed �Food Safety and StandardsAuthority� under the Chairmanship of Dr.R.A. Mashelkar, DG, CSIR .

Ø The Division also give comments on Techno-Economic Appraisals of proposals receivedfrom various Ministries and examine notes onCCEA/EFC/SFC.

Ø Exercise on Outcome/Targets in the OutcomeBudget 2005-06 for Ministries of Textiles,FPI, SSI, & ARI concerning VSE Sector wereprepared.

Ø Gender issue was flagged during Annual Plan,QPR/HPR meetings.

4.32 VOLUNTARY ACTION CELL

1. The Voluntary Action Cell is primarilyconcerned with policy issues relating to voluntary sectorand building a database on VOs/NGOs. A DraftNational Policy on the Voluntary Sector is beingfinalized by the Cell. A series of presentations byrepresentatives of Vos/NGOs are being organized inPlanning Commission under the Civil Society Window.

4.33 WATER RESOURCES DIVISION

1. Water Resources Division of the PlanningCommission is charged with the responsibility offormulation and monitoring of Plan, Programmes andPolicies relating to Water Resources, which inter-aliaincludes irrigation(major, medium and minorprojects), flood control(including anti-sea erosionworks) and command area development. The Division


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Investment Clearance of Major and Medium Irrigation and flood Control Projects accorded during theperiod from January to December 2005.

Sl No Name of State Name of Project / Estimated Cost Month ofScheme (Rs crore) clearance/Year of

completion asper order

Major and Medium Projects

1. Chhattisgarh Mongra medium Irrigation Project 83.64 January/2006-07

2. Chhattisgarh Minimata(Hasdeo) Bango 1312.32 May/2006-07multipurpose project(revised estimate-Major)

3. UttarPradesh Modernisation of Lachura Dam 88.30 May/March(New �major) 2007

4. Himachal Pradesh Balh Valley medium irrigation 41.64 June/2009-10project

5. Maharashtra Gul medium irrigation project 65.74 November/2006-07

6. Maharashtra Punand major irrigation project 157.78 December/2008-09

7. Andhra Pradesh Flood Flow Canal Project(Major) 1331.30 December/Flood Control Projects 2011-12

8. Assam Controlling of Jiadhal river in 14.94 February/Dhemaji District Phase I 2006-07

9. Sikkim Flood control and river training/ 8.52 March/anti erosion works along Rangit 2006-07river and Rani Khola in Sikkim

10. Jammu Kashmir Improvement to flood spill canal 14.93 September/in Jhelum by way of construction 2007-08of central cunette

11. Uttranchal Construction of right marginal 11.92 October/bund Bhogpur to Balawali 2006-07

is also responsible for the Plans, Programmes andPolicies of rural and urban water supply and sanitationand solid waste management.

Irrigation, Flood Control and Command AreaDevelopment

2. The Mid Term Appraisal of the Tenth Five YearPlan pertaining to the Water Resources Sector was doneand chapter on Water Resources prepared. Strategies

and way forward for the sector were recommended.

3. Water Resources Division was closely associatedwith the Bharat Nirman Programme announced by theFinance Minister in his Budget Speech 2005-06. Theinputs for the preparation of action plans on two of thecomponents of the Bharat Nirman (given below) weregiven to Ministry of Water Resources and Departmentof Drinking Water Supply respectively.

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Ø To bring additional one crore hectares underassured irrigation

Ø To provide drinking water to the remaining74000 habitations that are uncovered.

4. Further, Water Resources Division is thecoordinating Division in Planning Commission forthe other components of Bharat Nirman viz housing,electricity, roads and telephony.

5. The Annual Plan 2005-06 Chapter pertainingto irrigation and flood control sector was prepared.The strategies and the analysis regarding the physicaland financial achievements and targets are reflectedin the document.

6. The process of formulation of the Annual Plan2005-06 for the Ministry of Water Resources and all theStates had been completed. The outcome budget forthe Ministry of Water Resources and Department ofDrinking Water Supply was finalised in consultation withthe concerned Ministries.The process of formulation ofthe Annual Plan 2006-07 for the Ministry of WaterResources and all the States is in process.

7. The Planning Commission issued investmentclearance for the following major and mediumirrigation projects and 4 flood control projects.

8. Under Accelerated Irrigation BenefitProgramme (AIBP), an allocation of Rs. 4500.00crore has been provided in 2005-06 against Rs.2800.00 crore in 2004-05. The AIBP ceilings of anumber of States have been increased. From 2005-06, the Central Assistance under Accelerated IrrigationBenefit Programme has been modified into NormalCentral Assistance pattern with loan and grantcomponents. The loan part of the Central share hasto be raised by the states from the market in tunewith the recommendations of the Twelfth FinanceCommission.

9. Planning Commission enhanced the powersof the State Governments for clearance of floodcontrol schemes by relaxing the procedure of clearancefor schemes costing less than Rs 30 crore. On interstate rivers, there is no need for approval of schemesby State Flood Control Board and the investment

clearance for the schemes can be given by the StateGovernment themselves or the Planning Commissionas the case may be after the clearance by the StateTechnical Advisory Committee (TAC).

10. The Planning Commission gave in-principleclearance for the Central sector scheme �WaterHarvesting Scheme for SC/ST farmers� beingimplemented by NABARD for Rs 49 crore.

11. In accordance with the suggestion of the MidTerm Appraisal of Tenth Five Year Plan, PlanningCommission has set up an Expert Group to reviewthe ownership of Ground Water under theChairmanship of Member Planning Commission .The first meeting of the expert group was held on17.11.05.

12. Officers of WR Division were members ofthe Central Team, which visited the flood-affectedareas of Maharashtra and Karnataka in August andSeptember 2005 respectively. Also a country paperon Management of large-scale surface irrigationsystems for better conservation and use of waterresources was presented by Dy. Adviser (WR) inColombo Sri Lanka in a conference organized by theAsian Productivity Council, Japan.

Water Supply & Sanitation

Major Activities

13. The process of formulation of Annual Plan2005-06 for various States/Uts and the Deptt. ofDrinking Water Supply and Deptt. of UrbanDevelopment concerning water supply and sanitationsector has been completed. The chapter on WaterSupply and Sanitation for inclusion in the Annual Plan2005-06 document was finalized.

14. The process of formulation of Annual Plan2006-07 for various States/UTs was initiated.Similarly, exercise was also taken up in respect of theDeptt. of Drinking Water Supply and Deptt. of UrbanDevelopment (Water Supply & Sanitation Schemes).

15. The President of India, in his address toParliament on 25th February, 2005 announced a majorplan for rebuilding rural India called Bharat Nirman.


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The Finance Minister in his Budget Speech on 28thFebruary, 2005, has identified Rural Drinking WaterSupply as one of the six components of Bharat Nirman.Under Bharat Nirman (from 2005-06 to 2008-09).The backlog for coverage is under estimation based ona habitation survey for the categories of uncoveredvillages, slipped back villages and villages affected witha problem of water quality. As many as 55,067 villagesremain uncovered and are targeted for coverage as firstpriority. The category of slipped back villages estimatedby the Planning Commission at the beginning of theTenth Plan as 2.8 lakh habitations, 2,16,968 habitationsare affected due to a variety of water quality problemsThe scheme is funded on a 50 % basis by GOI and thefull plan outlay of Rs.4050 crore made for AcceleratedRural Water Supply Programme (ARWSP) in thebudget of the Department of Drinking Water Supply(DoDWS) is expected to be utilized

16. The Annual Plan 2005-06 of the DoDWSincludes Rs. 700 crore for the Centrally SponsoredTotal Sanitation Campaign (TSC) against Rs. 400crore in 2004-05 to improve the sanitation coveragein rural areas. M/o Rural Development has proposedsome modification in the guidelines of �TotalSanitation Campaign�.

17. The Annual Plan 2005-06 of Ministry ofUrban Employment & Poverty Alleviation (M/oUEPA) includes Rs. 30.00 crore for the CentrallySponsored Integrated Low Cost Sanitation scheme(ILCS) to improve the sanitation coverage in urbanareas. M/o UEPA has proposed some modification inthe guidelines of �Integrated Low Cost Sanitationscheme�, which is under examination.

18. As a part of the review of Centrally Sponsoredschemes undertaken in the light of National CommonMinimum Programme and on recommendation of M/o Urban Employment & Poverty Alleviation, theNational Scheme of Liberation and Rehabilitation ofScavengers (NSLRS) was transferred to the StateSector from 2005-06 and no funds for the schemewas accordingly allocated in the central budget forthe current year. Subsequently, the scheme wasrestored as CSS and the modified scheme forExpenditure Finance Committee (EFC) approvalsubmitted by the M/o Social Justice & Empowermentis under appraisal.

19. First Half yearly Performance Reviewmeeting was held on 21-12-2005 under thechairmanship of Member (Energy & WaterResources) to review the Plan performance of D/oDrinking Water Supply during the A.P. 2005-2006upto Sept 2005.

Review of outcomes against the targets set in theoutcome budget 2005-06.

20. Under ARWSP : Against the outlay ofRs.4050 crore, outcomes/targets for Annual Plan2005-06 is to cover the remaining 3,522 �NotCovered� (NC) habitations, 8,375 �PartiallyCovered� (PC) habitations, 34,373 slipped backhabitations, 10,000 nos. of water quality affectedhabitations (total 56270 habitations). It is alsoproposed to provide drinking water to 1,40,000primary schools under the programme. Theachievement upto Sept 2005 is 224 NC, 4464 PC,28830 slipped back, 1481 water quality habitations(total 34999 habitations).

21. Under TSC : The outlay for 2005-06 is Rs700 crore. Being a demand driven scheme, no targetsare fixed in advance. However, 75 districts areplanned to be covered during 2005-06, graduallybringing the total to 553 districts coverage underthe programme. Upto Sept. 2005, 540 districts havebeen sanctioned (during 2005-06 � 62 districtssanctioned out of 75).

4.34 ADMINISTRATION & OTHERSERVICES DIVISION

4.34.1 Administration

1. The Planning Commission has the status of aDepartment of the Government of India and,therefore, all the instructions issued by theGovernment of India through the nodal Departmentof Personnel and Training and also the provisionsunder various Services Rules for Central Govt.employees are applicable to the employees workingin the Planning Commission also. The Administrationin general functions in accordance with theseguidelines and various Service rules. The PlanningCommission Administration has also been sensitiveto the career aspirations of the officers and the staff


94

working in the Planning Commission and has beentaking adequate steps from time to time in this regard.Simultaneously, the Administration is also particularto the requirement of rightsizing its staff strength andis scrupulously following the instructions issued bythe DoPT on optimization of direct recruitment incivilian posts.

4.34.2 Career Management Activities

1. During the financial year 2005-06 (from Aprilto December) 39 officers were deputed to representPlanning Commission / Government of India inInternational Workshops / Seminars / Meetings etc.or to participate in training programmes organizedby various international organizations such as WorldBank, IMF, APO etc. in various countries. One officialof CSCS Cadre was deputed to participate in the XIVMoscow One Day Race �Sutki Begam� in Russia.Moreover, 5 foreign visits of Deputy Chairman, 14visits of Members, Planning Commission were alsoprocessed by the Career Management Desk duringthis period.

2. About 65 officers belonging to IES, ISS,GCS, etc. of Planning Commission and ProgrammeEvaluation Organization (PEO) were deputed forvarious training programmes sponsored / conductedby Department of Economic Affairs, Departmentof Statistics, NITIE, Mumbai and various otherGovernment and Autonomous Institutes /Organizations at different places within India.Besides, about 16 officers / staff belonging to CSS,CSCS and CSSS were sent to various mandatory andother training programmes conducted by theInstitute of Secretariat Training and Management(ISTM), New Delhi. Training for about 60 staffmembers of Planning Commission was organizedon the web based Office Procedure Automation(OPA) package.

4. Planning Commission also conductedfamiliarization programme for officers attending theLong Defence Management Course (LDMC) at theCollege of Defence Management, Secunderabad andthe probationers of Indian Defence Estate Service andNagaland Civil Service.

4.34.3 Organisation & Method AndCoordination Section

O & M Work

1. The O & M Inspection for all the Sections /Divisions has been programmed to be carried outduring the year 2005-06. All the 15 field offices ofProgramme Evaluation Organisation (PEO) has alsobeen planned to be inspected.

Public / Staff Grievance Redressal Machinery

2. The Planning Commission does not haveinteraction with members of public in its day-to-dayfunctioning. Nevertheless, the Commission has setup an Internal Grievance Redressal Machinery inaccordance with the guidelines issued by theDepartment of the Administrative Reforms & PublicGrievances to deal with the grievances of public andits serving as wel as retired employees including thoseof Programme Evaluation Organization and theInstitute of Applied Manpower Research. The JointSecretary (Admn.) acts as Director of Grievance andis assisted by three Staff Grievance Officers of the rankof Director / Deputy Secretary. An interactive web-enabled Public Grievance Redress and MonitoringSystem (PGRAMS) has been installed on PlanningCommission�s intranet for effective monitoring ofpublic grievances and their speedy disposal.Information on status of redressal of grievances is sentto Department of Administrative Reforms & PublicGrievances, on a regular basis. During the period fromApril 2005 to 31st December, 2005, no grievance casehas been received in this Section.

4.34.4 Hindi Section

1. The major activities of Hindi Section are :

1. Translation

2. Correspondence in Hindi

3. Review of QPRs

4. Utilisation of the services of trainedstaff


95

5. E-mails/messages etc. in Hindithrough computers

6. Kautilya Award Scheme

7. Inspections

8. Appeals on �Hindi Day�

9. Appeal on �New Year Day�

2. During the period 1st April 2005 to 31stDecember, 2005, besides, translating variousdocuments of the Sections / Divisions of PlanningCommission covered under Section 3(3) of theOfficial Language Act, 1963 (as amended) and othercommunications, this Section also translated / gottranslated the documents relating to Annual Plan,2004-05, Mid Term Appraisal of Tenth Five Year Plan(2002-07), Annual Report of the PlanningCommission, Cabinet Notes, Parliament Questions,demands for Grants, and SFC Report etc.

3. Efforts were made during the year toaccelerate the use of Hindi for different officialpurposes in the Planning Commission as well as inthe offices under its control. As a result, compared tothe last year, the use of Hindi increased.

4. Quarterly Progress Reports regardingProgressive use of Hindi received from all theDivisions/ Sections / Offices of Planning Commissionwere reviewed. It showed that the use of Hindi hasincreased.

5. Emphasis was laid on the utilization of servicesof the employees trained in Hindi typing andstenography.

6. E-mail messages and official information wasalso issued in Hindi from the computers of PlanningCommission.

7. A notification was issued to continue the�Kautilya Awards Scheme� of the PlanningCommission for the year 2004-05 also so as topromote writing of original Hindi Literature of a highstandard about technical subjects relating to the workof the Planning Commission.

8. REO/PEO offices in different States workingunder Planning Commission were inspected. Thereports regarding the use of Hindi in these Officeswere received and reviewed. The reports show thatthere is a lot of progress in the use of Hindi in day-to-day official work.

9. On the occasion of �Hindi Day� 2005messages were received from Cabinet Secretary, ShriB.K. Chaturvedi, Shri Devdas Chhotray, Secretary,Department of Official language, Ministry of HomeAffairs and Shri R. Sridharan, Joint Secretary (OfficialLanguage) Planning Commission. These messageswere given wide publicity among the officers and staffof the Planning Commission as well as in other officesunder its control.

10. On the eve of �New Year Day�, an appeal wasmade by the Secretary, Planning Commission to allofficers and employees of Planning Commission /Ministry of Planning and all its subordinate offices tomake sincere efforts during the year 2005 to acceleratethe progressive use of Hindi in official work.

4.34.5 Library & Documentation Centre

1. The Planning Commission Library continuedto provide reference services and lending facilities toall staff members of the Planning Commissionincluding PEO, NIC staff located at Yojana Bhawan.It has also provided Inter-Library Loan services toalmost all Government of India libraries. In houseconsultation facility was extended to officials fromother departments and research scholars enrolled withinstitutions / universities.

2. The Library has computerized almost all itsactivities. A library automation software, i.e., LIBSYSversion 5.0 is now used for these activities. TheInternet facility is also available in the library throughwhich information is provided to the officers of theCommission.

3. The Library is also bringing out itspublication, viz. (i) DOCPLAN : a monthly list ofselected articles culled out from selected journalsreceived in the library; (ii) recent List of Additions (a


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list of books added to the library) (iii) a list ofPeriodicals subscribed by the library. Library has alsoprovided bibliographies on demand of the officers ofPlanning Commission.

4. During the period under report 693 Englishand 41 Hindi books have been added to the collection.It is expected that some more books will be added inthe Library by the end of March 2006. In addition,242 Periodicals were received in the Library. TheLibrary also responded to approximately 8000reference queries and attended to specific needs ofusers. About 8000 readers visited the Library for thepurpose of consultation and reference work.

5. Academic activities : Library has also providedpractical training to some students of Library Sciencedeputed by Mira Bai Polytechnic, New Delhi.

6. Workshops, Seminars and Conference : TheLibrary staff including the ALIO participated in theNational Conferences, workshops and trainings heldin different parts of the country.

4.34.6 National Informatics Centre� YojanaBhavan Unit

1. All Information Technology (IT) needs of thePlanning Commission are being looked after by theNational Informatics Centre, Yojana Bhavan Unit, in-housed at Yojana Bhavan. The brief account of variousactivities during 2005-06 are given below:

Infrastructure Development

Ø Hardware :

The necessary computer hardware andNICNET (both Intranet and Internet relatednetwork) support is provided to the PlanningCommission and Economic AdvisoryCommittee (EAC) to PM at Vigyan Bhawan.

Ø LAN :

Local Area Network (LAN) is connected toNICNET and INTERNET through RF linkand 3 Leased Lines of 2 Mbps each. Thebackbone to various floors of Yojana Bhavan

is being upgraded with Optical Fibre toincrease the band-width.

Ø Strengthening of Connectivity withNICNET :

Additional Leased line of 2 Mbps has beenestablished to improve the connectivity andconfigured with the present network. Theexisting RF link has been upgraded. VPN(Virtual Private Network) connectivity hasbeen also established for remote updation ofwebsite locally using File Transfer Protocol(FTP) over VPN.

Ø Internet & Mail Facility :

All types of support for Internet and E-mailfacilities have been provided to all officials ofthe Planning Commission. Regularmaintenance and updation of mail accountsof Planning Commission users is alsocontinuing. The officers of the rank of JointSecretary and above have been providedcomputer systems desktop/laptop at theirresidences under the NICNETTelecommuting Programme.

Ø Back-up Services :

A powerful back-up Server has been installedat Yojana Bhavan that back-up server is loadedwith the Veritas NetBackup Server softwarethat has features of incremental back-ups,synthetic back-ups, open format back-up,servers backups with zero down-time and havealso option for disaster recovery etc. It hasthe ability of capturing the entire system imageof servers with Operating System, Applicationand Patch details along with data to ensurethe recovery over the LAN or thro� any othermedia and beside this the system will be fullyautomated and manual involvement is veryminimum. In the first phase, it caters for allten Servers and for 100 Desktop & LaptopAgents (DLO). The advantage of the back-up services is that in case of system crash, all


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servers can be restored back to its initial stagewith all latest databases and the recovery ofdata from desktop systems for particularsfolder(s).

Ø System Administration :

The existing proxy server has been upgradedwith the latest ISA 2004 server.Administration of all the servers namely ProxyServer, Database Servers, Web Server, Anti-Virus and Patch Management Server has beendone and is ongoing. The latest Service Packs,Security Patches and Anti-Virus Updates havebeen installed onto all servers from time totime for protection and security of the Servers.

Ø User Support :

All types of technical support (Hardware/Software) namely installation of varioussoftware like Antivirus package, configurationof user�s machine for Internet and networkconnectivity, Email etc. have been providedto the Planning Commission users andEconomic Advisory Committee (EAC) to PMat Vigyan Bhawan as and when required.Necessary support was also provided inconnection with 51st meeting of NationalDevelopment Council (NDC) which was heldat Vigyan Bhavan on 27-28 June 2005 todiscuss and finalise Mid Term Appraisal of10th Five Year Plan (2002-07).

Ø Centralised Anti-virus Solution :

A Centralized Server for Anti-Virus solutionwith Trend Micro � Office Scan EnterpriseEdition Software Ver. 7.0 has been installedat Yojana Bhavan. A Patch ManagementServer also has been installed in the PlanningCommission for prevention of spreadingworms into network. Regular updation /upgradation of Anti-virus and patches onServer and clients have been done. Monitoringthe infected machines and cleaning the viruson day to day basis have been done.

Web � Based Databases � On Internet Ø Database for Planning Commission

Programme Outcome Monitoring System(PCOMS) :

Finance Minister has presented the first�Outcome Budget� in the Parliament onAugust 25, 2005 in respect of Planexpenditure and he has stated that from theyear 2006-07, �Outcome Budget� would alsobe presented in regard to non-Planexpenditure. In regards to �Outcome Budget�,Planning Commission has been asked toprovide guidance to Departments/Ministriesfor Plan Expenditure so that budgetaryallocations for their schemes could befinalised. These Departments/ Ministries havealso been advised by Department ofExpenditure, Ministry of Finance to developformats and modalties for conversion ofoutlays and outcomes. In this context, a web-based Outcome Budget/Monitoringmechanism has been developed by NationalInformatics Centre, Yojana Bhavan Unit(NIC-YBU) at Planning Commission.Development of PCOMS for Sector-wisephysical and financial outcomes of Schemesis going on. Modules for Data Entry andupdation have been developed. Furtherimprovement in these modules is going on.Designed and developed reports modules toretrieve the Ministry/Department-wiseinformation. A presentation and demo of thispackage has been made to the MemberSecretary, Planning Commission and Advisersconcerned. For online updation by theMinistries/ Departments, letters are beingissued to concerned Ministries/Departmentsby Member Secretary to assign Nodal Officersat the level of Joint Secretary so that aWorkshop can be arranged by NIC fortraining these Nodal Officers and NICOfficials from the Ministries/ Departments.It will be then used for updating the dataonline from the concerned Ministry/Department for filling the gaps so as tomonitor it online.


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Ø Minimum Spatial Data Infrastructure forMulti-Layered GIS Application :

The scheme of �Spatial Data Infrastructurefor Multi-Layered Geographical InformationSystem (GIS) for Planning� has beenoperational in the Planning Commissionwhich is a new Central Sector Scheme (CS)sponsored by the Planning Commission andexecuted with the support of NIC. NIC hasset-up facilities of processing geographic andremote sensing data with programmes toutilise IRS as well as ground data, inapplications such as district planning, land-use planning, watershed management etc. TheSpatial Data & GIS Application Services arenow available in G2G through NIC atPlanning Commission also. Beside NICServer having NSDB database, Departmentof Space has also put their mirrors site atPlanning Commission which is alsooperational and following layers can beaccessed thro� DoS Server.

Ø Golden Quadrilateral; National Highways;District Roads; Village/ Unmettalled Roads

Ø Railway Stations; Airports

Ø Rivers; Reservoirs

2. Watershed Levels; Land-use; Vegetation Type;soil Productivity; soil slope; soil Depth; soil Texture;soil erosion etc.Data Sources include:

Ø Census 2001 data

Ø Primary Census Abstract and Amenitiesdatabase

Ø Data pertaining to Krishi Vigyan Kendras(KVKs)

Ø Khadi and Village Industries (KVICs)

Ø Data received from NRSA, etc.

Ø NIC Unit at Planning Commission is also thecustodian of all GIS applications where the

mirror-site is functional and digitised mapshave been developed for the PlanningCommission. Large number of mapsgeneration and database creation is beingserviced by NIC-YBU Unit at PlanningCommission locally and has provided largenumber of inputs to various Inter-MinisterialGroups set-up by the Member Secretary,Planning Commission. Prominent IMGsinclude IMG on Redressing GrowingRegional Imbalances; IMG on Developmentof Schedule Castes and Scheduled Tribes andIMG on Artisanal manufacturing andHandicrafts etc.

Ø Non-Government Organisations (NGOs) :

A Database on Non GovernmentOrganisation (NGO) is available on theofficial web site of the Planning Commissionhttp://planning commission.nic.in. Locally, itcan be accessed at http://database/ngo. Thedatabase contains the information of about16,400 NGOs. Profile of 500 NGOs underthe head of Good/Valid NGOs codified onthe basis of 28 categories of different activitiesas suggested by the Member, PlanningCommission. The information has been madeavailable on NGO website. Further, NIC-YBUhas also contributed in the deliberations,during the meetings convened for the TsunamiNGO Coordination Cell for Resettlement &Rehabilitation of Survivors, under theChairpersonship of Member, PlanningCommission,.

WEB � BASED DATABASES - ONINTRANET

Ø Data Bank of Parliament Questions/Answers for Planning Commission :

A web-enabled database of Parliamentquestions and replies thereof, handled by theParliament Section of the PlanningCommission, is available on intranet site http:/database/parliament. The Website has been re-designed. A new mode of search �Quick


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search� has been added on the website. InQuick search, just typing relevant keywords,the system automatically searches and matchexact or similar pattern from database ofdictionary and index tables and return the listof links of question answers sorted date-wise.Regular updation for all sessions of parliamentis going on.

Ø Software for Record Section of PlanningCommission :

Database for Departmental Record Room ofPlanning Commission for easy access andmonitoring/tracking the movement of filesfrom various divisions etc. is available onintranet. Data entry/ regular updation is underprogress.

Ø Database for ACRs Status :

A database for maintenance of Status ofAnnual Confidential Reports of Officer(s)/Official(s) of the Planning Commission hasbeen developed and is made available onintranet site http://database/acr. Number ofreports based on query have been developedas per requirement. On-line Data entry andupdation module have also been developedfor multi-user environment. Regular updationis going on.

Ø MIS for Financial Resource Division :

For Financial Resource Division, a web basedretrieval system has been developed for State-wise monthly information of �FinancialResource Briefs�. This provides the facility ofauthentication for the user also. The briefs ofFinancial Resources of those States for whichinput was available have been uploaded. Theapplication has been made more user-friendlyby modifying the user interface of thedatabase.

Ø Database for Marking Attendance :

A database for marking attendance of theemployees of the Planning Commission has

been developed that generates report and tellsthe status of presence of employees.

Ø Internal Telephone Directory :

A web enabled query based system is availableon intranet site http://database/telephone.This site has been developed for data-entry,updation, report generation and handling on-line queries. System also gives the facility toemployees to submit their information onlinefor modification/new entry in the telephonedirectory.

Ø Information System for CentrallySponsored Scheme (CSS) :

A Web based Information System for year-wise,Scheme-wise and State-wise financial details ofCentrally Sponsored Schemes is available onintranet. Data of all 185/203 CentrallySponsored Schemes of Ministries/Departmentsas provided by the Plan Coordination Division,Planning Commission has been processed(Verified, Validated and Transferred todatabase). As per user requirement, variousreports i.e. State-wise funds released underdifferent schemes, State-wise funds released forSpecial Category schemes etc., have beengenerated and submitted to concerned divisionfor their perusal

Ø LAN Based Information System for StaffCar Cell :

A LAN Based system for management andmonitoring of information of Staff Car Cellof the Planning Commission is available onIntranet. The System provides facilities toupdate required details and information aboutthe availability/deployment of staff cars.

Ø Information System for Forest, Wildlifeand Environment :

A web-base site http://database/forest onintranet is available to provide subjectiveinformation on Forest, Wildlife andEnvironment with respect to all States andUnion Territories


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Ø State Plan Database :

This database is available on Intranet facilitatethe State Plan division and other divisions ofthe Planning Commission in finalising theFive Year Plans and the Annual Plans of theStates/UTs. The Annual Reports of Statesfurnished by them and the Presentation madeby Planning Commission and States have alsobeen uploaded onto Intranet of the PlanningCommission.

Ø State Public Sector UndertakingsDatabase :

A web enabled database on State PublicSector Undertakings for the FinancialResource Division of the PlanningCommission is available on Intranet. Thisdatabase consists of data on equity, debt,profit/loss, dividend and capital employedetc. for various PSUs. Reports/queries canbe generated PSUs-wise, State-wise, year-wise and item-wise including calculatedfigures of compound annual growth rates andsimple annual growth rates.

Ø Inventory Management System :

This system is aimed to manage informationof consumable items purchased and issued tothe employees of the Planning Commission.The system provides tabular details about theItems, Agency, Bills including the facility toupdate and retrieve the information.

Ø Web Enabled Retrieval System for LabourEmployment and Manpower :

A web enabled Retrieval System (http://dbserver/lem) for Labour Employment andManpower division of Planning Commissionis available on Intranet facilitate retrieval ofinformation on various parameters relating tothe division. The site also provides a displayutility in form of maps for the available Statelevel parameters.

Ø Procedural Reforms in Government�sInterface with Public :

A web enabled comprehensive Database isavailable on intranet site (http://dbserver/reforms) for all the responses received frompublic in response to the open Newspaperadvertisement of Planning Commission forsuggestions for reforms in Government�spublic dealings and issues/suggestions againstany procedure/rule/law of the Government ofIndia, State Government and the Localauthorities.

Ø Database for Coal Sector :

A web enabled query based system http://database/coal for Power & Energy division ofthe Planning Commission is available onIntranet to facilitate generation of variousreports on Company-wise, State and year-wisestatus The system also provides informationon Company-wise/ Scheme-wise, Financialand Sector-wise Demand reports on Coal.

Ø Planning Commission / PEO DocumentsDatabase :

A web-based system (http://database/peolibrary) is available on Intranet for indexof PC/PEO Documents to facilitate thePlanning Commission Library to maintain thedocuments and publications brought out byProgramme Evaluation Organisation (PEO),Planning Commission

OTHER DATABASES

Ø Complaint Monitoring System :

Complaint Monitoring System facilitatesregistration of hardware/software complaintsfrom all the computer users of PlanningCommission. It helps the hardware engineersstationed at Yojana Bhavan to effectivelyattend to the complaints and minimise thesystem downtime.


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Ø Demand for Grants and ExpenditureMonitoring System :

The software is developed for IFA (IntegratedFinance Accounts) Division and beingmaintained to monitor Monthly Expenditure& Demand for Grants. The system facilitatesgeneration of various reports. Supportprovided to IFA division for this package tocarry out data entry and report generation.

Ø Air Ticket booking System

Developed and maintained for ProtocolSection of the Planning Commission, facilitiesto consolidate the booking requests forrequistionning tickets from Air-India, IndianAirlines ect.

Ø Hardware/Software Inventory MonitoringSystem

The Hardware/Software InventoryMonitoring system has been developed tokeep track of Computers, Peripherals andSoftware. It also monitors the movement ofComputers, Peripherals & Software with thepremises i.e. users to NIC-YBU TechnicalStore and vice versa.

Ø Intra-yojana, E-governace Application OfPlanning Commission:

Intrayojana portal developed/customiszationan e-Government site, of PlanningCommission has been done to accumulatevarious information which included creationof user ids, uploding photos of employees,payslip generation and uploading of contentslike State Plan presentation, Inductionmaterial, channelof Submission, Trainningmaterila etc. Persentation of Intra-Yojanaportal has been also made to MemberSecertary, Planning Commission. The facilityof viewing and printing of payslips of allemployees in Planning Commission has beenprovided directly through this portal. Perparedthe documents on Implementation frame

work and user Mannual. Persentation on howto access various services of Intra Yojana wasgiven of officers of the Planning Commission.Administration work is going on for makingthe portal more useful and content-rich.

Ø Perparation of inforamtion flow diagrams:

As desired by the Member Secretary, PlanningCommission, Work-Flow Diagrams forvarious divisions have been prepared. A lotof efforts have made to interact Senior Officersof the various divisions in preparation andfinalization of their work flow diagrams.

Ø Support to PO&RM Division :

A new Program Outcome and ResponseMonitoring Division has been set up in thePlanning Commission. The Scheme data/Tables of 32 Ministries/Departments has beenput into electronic format by data entry andalso converted into Work-sheet Excel format.Initiative has been taken to identify theparameters for monitoring of projects/schemes. A homepage relating to PO&RMDivision has been created on PlanningCommission website. A web-page has beendesigned and devel

Ø Web-site of Planning Commission :

Planning Commission website namely htt://planningcommission.n.nic.in is regularlyupdated. Hindi and text Version of variouspages have also been designed and uploadedto the web-site. Necessary modifications andupdations have been done on the main pageand concerned pages of website. Furtherenhancements and updates were carried outin the Web-site of Planning Commission.

Ø Right to Information (RTI) Act 2005 :

To implement RTI Act, a web enabled systemhas been developed by Planning Commission.Uploaded all the documents and outside queryand answer procedure related to RTI Act on


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a server available on Internate. Whole site hasbeen launched and its necessary link on themain page of Planning Commission websitehas also been provided. Since NationalInformatics Centre (NIC), Ministry ofCommunications & Information Technologyhas launched RTI Portal, so the informationof Planning Commission relating to RTI Act2005 has been uploaded on RTI Portal UnderPro-active Disclosure documents.

Ø Office Procedure Automation (OPA) :

The web-based Office Procedure AutomationSystem of file movement and diary/dispatchmovement is working in the PlanningCommission. Its features provide a great helpto bring efficiency, saves considerable time andefforts and also brings transparency in theworking of Planning Commission. Day to dayactivities related to database administration ofOPA System viz. management of users,implementation related issues of new andexisting users, technical support ect. are goingon smoothly. Migration of OPA system fromClient - Server version to Web-based versionhas been done. Training Programme on newweb-based OPA System has also beenarranged for all concerned for smoothfunctioning of new system. The system hasbeen implemented and is in place. Many moredivisions/sections of the PlanningCommission have been added into it. Demosession about the operational aspect of fullpackage and its features has also beenconducted to familiarise the users.

Ø Pao Compact Software:

NIC has developed a Financial ManagementInformation System software �PAOCOMPACT� for thecomputerisation ofvarious payment and accounting functions forthe use of various Ministries/Departments ofGovernment of India. The Windows 2000Server on which this software has beeninstalled is also being maintained byNIC(YBU)

Ø Preparation of Annual Plan :

Being a major assignment of Plan Co-ordination Division of the PlanningCommission, NIC-YBU has been assisting inthe preparation of the drafts of Annual Plan,Mid Term Appraisale, Annual Report and FiveYear Plan Document. Presently Annual Plan(2005-06) document is in the final stages ofaccomplishment.

Training:

Ø Training for Employees :

Training Programmes are being organised forOfficers and staff of Planning Commission atYojana Bhavan on computer related topics.This includes Basics of Computer, Windows-based Microsoft applications like MSWord,MSExcel, E-Mail, PowerPoint, HindiSoftware, Internet etc. and usage of otherpackages.

Following training programmes wereconducted during 2005-06:

Ø Ten days training programme on ComputerAwareness, specially for officials of FinancialResource (FR) Division with specific thruston MS-Excel.

Ø A presentation on �IntraYojana� Portal andOPA System has been arranged twice forsmooth functioning of new system.

Ø Two days training programme on web-basedOPA System was conducted in two batchesso as to familiarise the features and capabilitiesof the package in details to the trainees.

Ø Computer Education for Children ofPlanning Commission Employees :

A 5-days Training programme on ComputerAwareness Course was conducted for childrenof Planning Commission Employees toinculcate computer awareness among them.


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45 children had attended this programmeduring 2005-06.

Pay Roll System :

Support was also provided to concerneddivision in updating and generating the followingreports in 2005-06.

Ø Pay Bill � Monthly salary bills, for all Officers/staff of the Planning Commission are prepared.

Ø GPF � Annual GPF statement for allemployees are prepared.

Ø Bonus � Annual Bonus for all Non-gazettedemployees is prepared.

Ø DA Arrears � DA Arrears for all employeesare prepared.

Ø Developed a procedure/utility to generate Pay Slip data of Planning CommissionOfficer�s to upload on IntraYojana Portal.

4.34.7 Record Section

Main activities being carried out during theyear 2005-06 :-

1. In view of easy access and retrieval of files/records kept in the Record Section, pertaining toSections / Divisions, entering details of files in theComputer have been started. During the current Year,out of 30,000 files details of 12,000 files have beenfed in the computer. Work relating to data feeding isin full speed and it is expected that in the next FinancialYear all the data available in this Section will be fed inthe computer.

2. The Record Section (Departmental RecordRoom)has been maintained in accordance with thenorms and procedure laid down in the Manual ofOffice Procedure, the Public Record Act, 1993 andthe Public Record Rules, 1997. Officials of otherMinistries / Departments /ISTM paid visit toDepartmental Record Room, Planning Commission.

3. Half yearly Returns on Declassified Recordsand Recording, Reviewing & Weeding out of Recordsfor the Half-yearly periods ended on 31st December2004 and 30th June 2005, Annual Report for theyear in the prescribed Form � 5 collected from REO& PEO of Planning Commission and PlanningCommission and Prescribed form � 1 regarding 25year old files for appraisal by NAI were compiled andsent to National Archives of India.

4. Compilation of the Organisational History ofPlanning Commission has been completed andforwarded to NAI.

4.34.8 Planning Commission Club

1. With a view to augmenting the sports,literary & cultural activities amongst the employees,a Planning Commission Club has been established.Member Secretary, Planning Commission is the Ex-Officio-Patron of the Club. The affairs of the Clubare managed by an Executive Committee electedannually, by Members of the Club. The ExecutiveCommittee of the Club comprises of President, Vice-President, Secretary, Jt. Secretary (Sports), Jt.Secretary (Culture), Treasurer and seven Members,including a reserved seat for ladies and two for Group�D� staff. The annual membership fee is Rs. 10 perhead.

2. The objectives of the Club are as under:-

Ø to promote friendly relations amongst theemployees working in Planning Commission.

Ø to provide facilities for outdoor sports, indoorgames and other forms of recreation.

Ø to provide a forum for discussion on mattersof common interest; and

Ø to undertake such other activities as maybe conducive to the achievement of theabove objectives or as may be decided uponby the Executive Committee from time totime.


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4.34.9 Welfare Unit

1. To look after the welfare of its employees, aWelfare Unit is functioning in the PlanningCommission. Welfare Unit is providing first aid tothe officers/staff of the Planning Commission. It alsosupplies general medicines for routine ailments suchas headache, stomachache etc. Free AyurvedicConsultancy is provided to the employees of PlanningCommission twice a week. The Welfare Unit extendsall necessary assistance to the employees, in case ofemergency viz. accident/other situations and take him/her to hospital for medical treatment. The Asstt.Welfare Officer visits the families of those employeeswho die in harness and renders all possible help.Welfare Unit helps in immediate delivery of relief tothe families of those deceased employees who die inharness and are members of the Planning CommissionEmployees Welfare Fund Society. Condolencemeetings are organized in Office in respect of thoseemployees who die in harness. It also organizesfarewell to those employees who retire on attainingtheir age of superannuation.

2. In addition, the Welfare Unit organizesfollowing national events :-

� Martyrs� Day,

� Anti-Terrorism Day,

� Sadbhavana Diwas,

� Quami Ekta Diwas,

� Flag Day and arrangements for fund raisingfor Communal Harmony,

� Armed Forces Flag Day and arrangements forfund raising.

3. During the period from 1st January, 2005 to31st December, 2005 Welfare Unit undertookfollowing events other than the normal activities :-

Ø A lecture cum demonstration on Yoga wasorganized by Times foundation New Delhion 25th April 2005.

Ø Shri Arun Kumar Bharadwaj, UDCparticipated in Open Championship RussiaXIV �Sutki Begom� (24hrs running) race onrack from 07 � 08 May 2005 by PlanningCommission. The event was sponsored byPlanning Commission.

Ø A lecture cum demonstration on Yoga wasorganized by Morarji Desai National Instituteof Yoga, New Delhi on 11th July 2005.

4. Welfare Unit also attends the work relatingto Tea Board, Coffee Board Ex-employees Co-operative Society, Fruit Chat Stall, Kendriya Bhandar,DMS Stall, etc. The Welfare Unit also services thePlanning Commission Employee�s Welfare FundSociety and the Departmental Canteen.

Planning Commission Employee�sWelfare Fund Society

5. Planning Commission Employees� WelfareFund Society is functioning since August 1997. It isregistered under the Societies Registration Act. Themembership of the Society is open to all the officialsof Planning Commission, Programme EvaluationOrganization including officials on deputation fromother Departments. The total strength of membersof the Society as on 01st December 2005 is 714.

6. The monthly contribution which is deductedfrom the salary is Rs 20/-, Rs15/- and Rs 10/- forGazetted, Non-Gazetted and Group D employeesrespectively. Two third of the total contribution madeby a member is refunded at the time of his retirement.The Society is getting yearly grant-in-aid from thePlanning Commission. A sum of Rs. 13,810 wassanctioned to it as Grant-in-aid for the year 2005-06.

7. The Society provides immediate financial reliefto the families on death in harness of a member andalso provides financial assistance to the members incase of prolonged illness. During the short period ofeight years, the Society has increased the amount ofrelief from Rs 2,500/- to Rs 25,000/- in case of deathand from Rs. 500 to Rs 4,000 in case of prolong illnessof a member of the Society. In addition, the Society is


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also providing financial relief in case of death/illnessof the member�s spouse, if monthly contribution forspouse is made.

8. The financial position of the society is quitesatisfactory. A sum of Rs. 6,78,207/- is held in fixeddeposits besides cash in hand of Rs.2,316/- and Rs.33,190/-in the Saving Bank A/c as on 01st December,2005.

9. The Ninth Annual General Body meeting ofthe Society was held on 07th October 2005 andelection of office bearers of the Managing Committeewere held.

10. During the period from April, 2005 toNovember, 2005 a sum of Rs. 2,976/- was given asMedical Relief to the members, Rs 48,000/- was givenas financial relief on death to the family of deceasedmember and Rs. 7,669/- was given due to accountssettlements of the members of the Society on theirretirement.

Departmental Canteen

11. As a measure of staff welfare, DepartmentalCanteen has been set-up to make available hygienicallyprepared meals, snacks and beverages to the employeesof Planning Commission at reasonable rates. TheDepartmental Canteen is functioning on no profit noloss basis.

12. The Departmental Canteen is functioning inthe Planning Commission since Oct., 1961. The staffworking in Departmental canteen have been declaredas Government employees w.e.f 1st Oct., 1991. Theaudit of account of Departmental Canteen are carriedout every year.

13. The Canteen facilities are extended up to 7.00P.M. for providing tea, snacks to those employees whowork after office hours.

14. On the occasion of Diwali festival necessaryarrangements for preparation of special sweetswere made for the employees of PlanningCommission.

General Branch

15. Renovation was carried out in a number ofrooms, occupied by officers and staff and modularfurniture was provided to improve workingenvironment. The Information Technologyinfrastructure was improved and strengthened by wayof providing Plasma Screens in Committee Roomsand latest P.C. systems / Laptops to entitled officers.The quality and performance of Packaged-type A.C.plants installed at Yojana Bhavan was also improvedby replacing some of A.C. units with new units ofhigher capacity and latest technology. The quality ofdrinking water was improved by way of installationof Reverse Osmosis (R.O.) systems.

Parliament Section

16. Parliament Section which functions as apart of Plan Coordination Division and deals withParliament Questions, Calling Attention Notices,Half-an-Hour discussions, Resolutions, PrivateMembers� Bills, No-Day-Yet-Named Motions,Matters raised in Lok Sabha under Rule 377 andby way of Special Mention in Rajya Sabha,Parliament Assurances, meetings of ParliamentaryCommittees, Laying of Reports and papers in boththe Houses of Parliament, arranging temporaryand Session-wise General and Official Gallerypasses for the officers of Planning Commission;and other work of Planning Commission relatedto Parliament including Issues likely to be raisedin Parl iament and procurement of BudgetDocument, Rail Budget, Economic Survey andPresident �s Speech to both the Houses ofParliament, for distribution amongst DeputyChairman, Members and Officers of PlanningCommission.

17. During the period under report, Mid TermAppraisal of Tenth Five Year Plan was distributedamongst Lok Sabha MPs through Publication Counterof Lok Sabha. The Demands for Grants 2005-06 forPlanning Commission was laid on the Table of LokSabha and necessary arrangements were made for themeeting of the Standing Committee on Finance. TheAnnual Report 2004-05 of the Construction Industry

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Development Council and Annual Report 2004-05 ofthe Institute of Economic Growth (DevelopmentPlanning Centre) were laid on both the Houses ofParliament. Annual Plan Document 2004-05 andAnnual Report 2004-05 of Planning Commission werecirculated to MPs of both Houses of Parliament throughPublication Counters. Seven Assurances given in LokSabha and nine Assurances in Rajya Sabha were fulfilledduring the period through Parliament Section. It alsocoordinated for sending reply to eighteen matters raisedunder Rule 377 in Lok Sabha and ten Matters raisedby way of Special Mention in Rajya Sabha.

4.34.10 Charts, Maps & Equipment Unit

1. The Charts, Maps & Equipment Unit ofPlanning Commission provides technical andequipment support for day-to-day office work as wellas for organizing various Meetings, Conferences andneed of official functions in and out-side the office.The unit has the following modern equipment, tocater to the office�s requirements as under:-

l Laptop with Internet connection

l Plasma Screen Audio-Video System fordisplay of meeting schedules, Presentationsand other important information.

l Colour Laser Printer

l Scanning Machine.

l TV&VCR.

l Pentium IV Computer with Page Maker-6.5,7, Photoshop-6,7 & Coral Draw -10,11,12 Software�s.

l Over Head Projector, Slides Projector.

l Colour Photo Copier.

l Lamination Machines.

l Heavy-duty Photocopier & Digital Scannercum Printing Machines.

l Binding Machines with Spiral Binding, StripBinding & pin Binding etc.

2. The major activities carried out by this Unitduring the year are summarized below:-

l Preparation of Cover Page Designs of variousPublications brought out by the PlanningCommission and Programme EvaluationOrganisation during the year viz. AnnualReport & Annual Plan, Report of the Expertgroup on the criterion for Allocation of Fundsunder major rural poverty alleviationprogrammes, Performance Evaluation ofTargeted Public Distribution System (TPDS)PEO Report No. 189, Summary of the Reporton Workforce Management Options andInfrastructure Rationalisation of PrimaryHealth Care PEO Report No.190, PEO�sReport on Evaluation Study of Modernisationof Office Systems of Planning CommissionReport No. 191. Report on Evaluation Studyof �District Poverty Initiatives Project� PEOReport No. 192. Report on Evaluation Studyof Prime Minister�s �Gramin Sadak Yojana�PEO Report No. 193., Public PrivatePartnership in Highways, The IntegratedEnergy Policy, & Induction Material ofPlanning Commission.

l Prepared (on Coral Draw Software) Map ofAfghanistan indicating State- wise distributionof full AIJ & full GEF Projects

l Prepared Name Display Cards for theMeetings/Seminars organized by PlanningCommission during the year regularly.

l Designing and Printing work of BilingualCertificates for the Trainings Conducted byNIC. In-house training programmes for theStaff of Planning Commission was conductedby Planning Commission.

l Prepared Map of India showing State wisedistr ibution of ful l AIJ & ful l GEFProjects.

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l Designed Graphical Charts for Report of theCommittee on Development.

l Printing of copies of Tenth Five year Plan(both Hindi and English version), Mid-termAppraisal Document of Tenth Five year Planduring the year.

4.34.11 Right To Information Cell

1. Government of India recently passed Rightto Information Act for the benefits of the citizens ofIndia. This Act came into force on 12th October,2005. The main objectives of the Act are :

l To promote transparency and accountabilityin the working of every public authority, and;

l To set up a practical regime for giving citizensaccess to information that is under the controlof public authorities.

2. A Right to Information Cell has been createdin Planning Commission with the following set up :

Ø Shri Naseem Ahmad (AIO-C&I) � AssistantPublic Information Officer (APIO)

Ø Shri P.C. Bodh, Deputy Adviser (I) � CentralPublic Information Officer (CPIO)

Ø Shri R. Sridharan, Joint Secretary (Admn.) �Departmental Appellate Authority

3. Both APIO and CPIO were trained in theactive workshop at Institute of Secretariat Training &Management (ISTM) were before the Act came intoforce. The details of the set up in Planning Commissionfor this purpose are placed on the website.

4. Till date, the RTI Cell has received 17 queries.Out of these 13 queries have been responded to andthe rest have been referred to concerned divisions forseeking information. It is interesting to note that outof the 17 information seekers six belong to thePlanning Commission itself. Administration hasemerged as the most sought after section among theinformation sectors. Seven out of 17 queries concerenAdministrative.

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Programme Evaluation Organisation

Chapter 5

Programme Evaluation OrganisationEvolution of PEO

1. Ever since the concept of planning wasintroduced in India, the task pertaining to formulationof appropriate plan and design for the developmentschemes and programmes for effective implementationin a given situation with varied geo-climatic conditionson the one hand and diverse socio-economiccharacteristics of the Indian states on the other hadalways posed a great challenge before the planners andpolicy makers. However, the founding fathers of PEOhad a visionary objective that aimed at envisaging acrucial role for the Organisation in bringing outobjective and credible evaluation results concerning thegrassroots reality which would be used in the planformulation and improving the service delivery.

Organizational History

2. Having this implicit objective in view, PEOwas established in October, 1952, as an independentorganization, under the general guidance and directionof the Planning Commission with a specific task ofevaluating the community development programmesand other Intensive Area Development Schemes. Theevaluation set up was further nurtured andstrengthened by developing methods and techniquesof evaluation in the First Five Year Plan and settingup evaluation machineries in the States during ThirdPlan (1961-66) and Fourth Plan (1969-74). With theextension of the Plan Programmes/Schemes in avariety of sectors, viz., agriculture, cooperation, ruralindustries, fisheries, health, family welfare, ruraldevelopment, rural electrification, public distribution,tribal development, social forestry, etc., the evaluationtask performed by the PEO was gradually extendedto other important Centrally Sponsored Schemes.

Functions and Objectives of PEO

3. The Programme Evaluation Organisation(PEO) undertakes evaluation of prioritized

programmes/schemes at the behest of the variousDivisions of Planning Commission and Ministries/Departments of Government of India. The evaluationstudies are designed to assess the performance,processes of implementation, effectiveness of thedelivery systems and impacts of programmes/schemes.These studies are diagnostic in nature and aim atidentifying the factors contributing to successes and /or failures of various programmes and thus help inderiving lessons for improving the performance ofexisting schemes through mid-course corrections andbetter designs for future programmes.

Diagnostic Approach for Therapeutic Results

4. Broadly speaking, the objectives of evaluationtask performed by PEO include objective assessmentof processes and impacts of the developmentprogrammes, identification of the areas of successesand failures at different stages of implementation,analysis of reasons for successes or failures,examination of extension methods and people�sreactions thereto and deriving lessons for futureimprovement in formulation and implementation ofthe new programmes/schemes. Evaluation in thissense has been recognised as quite distinct and separatefrom analysis of progress and review on the one hand,and inspection, checking and scrutiny of the schemesand works on the other.

Participatory Approach forImproving Service Delivery

5. PEO is conducting external evaluation,independent of the administrative channels, throughdirect observations, sample surveys and social scienceresearch methods. Thus, evaluation studies carried outby the PEO are different from progress reporting orchecking and scrutiny of works as being done in theadministrative Ministries/Departments. Nevertheless,an attempt is also being made to involve planners and

109


implementing agencies at all stages of evaluation tomake the findings and lessons of PEO reports moreuseful.

Organizational Structure of PEO

6. The PEO is primarily a field based organizationunder the overall charge of the Deputy Chairman,Planning Commission. It has a three-tier structure withits Headquarters housed in Planning Commission atNew Delhi. The middle rung is represented by theRegional Evaluation Offices, while the next links arethe Field Units known as the Project Evaluation Offices.

PEO Headquarters

7. At the PEO Headquarters, the organizationis headed by Adviser (Evaluation) who is assisted byDirectors/Deputy Advisers with their supportingmanpower. Each one of the Directors/DeputyAdvisers is responsible for formulation of studydesigns, conduct of studies and analysis of the datacollected through field units of PEO under the overallguidance and supervision of Adviser (Evaluation).

PEO Field Units

8. PEO has 15 field units � 7 Regional EvaluationOffices (REOs) and 8 Project Evaluation Offices(PEOs). Performance and impact evaluation studies needto generate village and household level primary data andprocess data from the various nodes of the implementingmachineries located at the State, district, block and villagelevels. The field units of PEO serve the most importantfunction of ensuring that the primary and secondarystatistics used in evaluation studies are representative ofthe grassroots reality. Since evaluation findings are to beacted on by the planners and policy makers, ensuringaccuracy of the data generated for diagnostic and impactstudies is of a critical importance. The field units of PEO,therefore, perform the most important function inevaluation studies. The lay out of PEO at field level isgiven at Annexure.

PEO Library

9. PEO eadquarters maintains its own library(Technical) where reference books on evaluation

techniques to be adopted for designing/instrumentingof the studies and other publications related toevaluation are kept for allusion purposes. Copies ofthe evaluation reports are also kept in the library forreference purposes.

Growing Concern for Evaluation amongPlanners and Policy Makers

10. Planners and evaluation professionals havealways been concerned about strengthening ofmonitoring and evaluation system for bringing abouttransparency, accountability and good governance foreffective service delivery. To address their concern, itwas thought essential to have a mechanism evolvedand established in the M&E system in the country.Accordingly, in August, 2001, a Working Group forStrengthening Monitoring and Evaluation Systemsof the Social Sector Development Schemes for theTenth Five Year Plan was constituted under thechairmanship of the then Secretary, PlanningCommission. The Working Group had submitted itsreport and recommended various measures forimproving monitoring and evaluation systems of theSocial Sector Development Schemes in the country.

Reiteration of Cabinet Secretariat on Evaluationof all ongoing Projects/ Programmes /Schemes

11. The Cabinet Secretary issued letters to allMinistries/Departments in December, 2002 to carryout evaluation of all those ongoing schemes/programmes/ projects which have not been evaluatedso far. It is reiterated in his letter that it would bemore useful if the impact assessment of the ongoingschemes is carried out by the Planning Commissionor by an outside professional agency.

Proposal for Evaluation to be brought underPlan Scheme

12. A meeting headed by Deputy Chairman andattended by all Members of Planning Commissionwas held in August, 2004 to address the critical issuesrelating to constraints faced by PEO in terms ofinadequacy of manpower, lack of capacity buildingand inadequacy of funds. To address these issues, itwas decided to propose evaluation under plan scheme

110


so as to ensure smooth flow of funds required fordata processing & data storage, traveling, training andhiring of quality Research Institutes for conductingevaluation studies at a faster pace. Accordingly, PEOsubmitted the proposal for Evaluation to be broughtunder Plan Scheme which is under consideration ofthe Planning Commission.

Development Evaluation Advisory Committee(DEAC) for PEO

13. In view of the changed scenario, the erstwhileEvaluation Advisory Committee (EAC) was revampedand reconstituted as Development EvaluationAdvisory Committee (DEAC) on 29th November,2004 which would be headed by Deputy Chairman,Planning Commission comprising all Members of thePlanning Commission and four eminent researchprofessionals from renowned Research Institutes andUniversities as members. Adviser (Evaluation) is theMember Secretary of DEAC. The Terms of Referenceof DEAC are given as below:

l to identify major thematic areas for evaluationresearch in the country and for ProgrammeEvaluation Organisation (PEO).

l to consider and approve the Annual Plan/longterm Plan for PEO.

l to assess and monitor the quality ofdevelopment evaluation research in thecountry and recommend correctivemeasures.

l to monitor compliance of evaluation findingsby planning and implementing Ministries/Departments.

l to suggest ways and means for developinggreater linkages between PEO and CentralMinistries/Departments, State EvaluationInstitutions as well as other academicinstitutions and organizations engaged inmonitoring and evaluation of programmes/schemes and research.

l to provide guidance for formulation of anational evaluation policy outlining the

methods, standards and processes ofinformation generation and use.

l to assess evaluation resources and developsuitable strategies for evaluation capacitydevelopment in the Ministries/Departments,NGOs, Universities and Research Institutionsin the country.

l to suggest any other activity to be undertakenby PEO to generate useful evaluativeinformation for planners/policymakers.

Concern for an Independent and In-depthEvaluation Highlighted in Union Budget (2005-06)

14. The concern expressed by Finance Ministerfor an independent and in-depth evaluation ofprogrammes and schemes is reproduced as �At thesame time, I must caution that outlays do notnecessarily mean outcomes. The people of the countryare concerned with outcomes. The Prime Minister hasrepeatedly emphasized the need to improve the qualityof implementation and enhance the efficiency andaccountability of the delivery mechanism. During thecourse of the year, together with the PlanningCommission, we shall put in place a mechanism tomeasure the development outcomes of all majorprogrammes. We shall also ensure that programmesand schemes are not allowed to continue indefinitelyfrom one plan period to the next without anindependent and in-depth evaluation. Civil societyshould also engage Government in a healthy debateon the efficiency of the delivery mechanism.�

PEO�s Action Plan

15. To address the issues concerning independentand in-depth evaluation of major programmes andschemes as raised by Union Finance Minister, meetingsof the Development Evaluation Advisory Committee(DEAC) were convened in 2004-05 and 2005-06.

16. Studies completed during 2005-06

l Study on Targeted Public Distribution System(TPDS), March, 2005

111

l Study on Work Force Management Optionof Infrastructure Rationalisation in PrimaryHealth Care Services, May, 2005

Reports under print

l Study on Pradhan Mantri Gram Sadak Yojana(PMGSY), June, 2005.

l Study on District Poverty Initiatives Project(DPIP) in MP, July, 2005.

l Study on Modernisation of Office System(MoOS), August, 2005.

l Study on Growth Centre Scheme (GCS)October, 2005.

l Study on Decentralised Planning experiencein Kerala (presentation on the findings of thedraft report was made in PlanningCommission in December, 2005 and thereport is being finalized)

Studies in the Pipeline

17. The on-going studies that are at differentstages/processes of evaluation are indicated below :-

1. Decentralised Training Programme ScheduledTribes Finance

2. Schemes of National & DevelopmentCorporation (NSTFDC)

3. Cooked Mid-Day Meals Schemes

4. Construction of Hostels for SC Boys and Girls

5. Impact of Centrally Sponsored Schemes inAnantnag, Kupwara, Rajouri and Dodadistricts of J&K

6. Special Central Assistance (SCA) to TribalSub-Plan

7. Sarda Sahayak Project in Uttar Pradesh

8. Quick Appraisal of KBK districts

9. Evaluation Study on Food for Work(FFW)Programme

10. Grants under Article 275

11. Agro-Economic Research Centres (AERC)

Follow up Action on Evaluation Findings andSuggestions � a Tangible output of PEO

18. The implementation of the findings andsuggestions made in the evaluation reports broughtout by PEO rests with the concerned Ministries/Departments. It has been gathered that the findingsand suggestions of PEO evaluation reports have beenincorporated in varying degrees by the implementingMinistries/Departments. Some of the evaluationreports on which follow-up actions were taken arehighlighted below :

l Based on the evaluation report of PEO onMahila Samriddhi Yojana, the scheme wasabolished.

l The Employment Assurance Scheme wasthoroughly re-structured during 2001-2002and the detailed guidelines for the re-structured scheme (Sampoorna GrameenRozgar Yojana (SGRY) were issued in April,2002 which incorporated many of therecommendations of the report by PEOreleased in April, 2000.

l The evaluation of Non Formal EducationProgramme was taken up by PEO in the year1997 and based on the recommendations ofthe PEO report the scheme was completelyrevamped and amalgamated in the newscheme titled Education Guarantee Schemeand Alternative & Innovative Education(EGS&AIE).

l The evaluation of National Project on BiogasDevelopment (NPBD) was taken up by PEOin 2001 and based on the observations andrecommendations of the evaluation report, the


112

Ministry of Non Conventional Resourcesformulated detailed guidelines forimplementation of the programme during theyear 2002-2003 onwards.

l The performance evaluation of StatutoryDevelopment Boards in Maharashtra was takenup by PEO and the report was released inApril, 2003. The findings and observationsof PEO report were acknowledged by officeof the Governor, Maharasthra and the threedevelopment boards of Marathawara, rest ofMaharashtra and Vidharbha.

l The evaluation reports on Accelerated RuralWater Supply Programme (ARWSP),Functioning of Community Health Centres(CHCs), Functioning of Primary HealthCentres (PHCs) assisted under Social SafetyNet Programme (SSNP) and Member ofParliament Local Area Development Schemehave been found extremely useful and actedupon by the implementing agencies.

l The findings and recommendations of therecently evaluated scheme on Integrated DairyDevelopment Project are being acted upon bythe Ministry and the Subject Division of thePlanning Commission.

l The findings of the evaluation report onTargeted Public Distribution System (TDPS)have been widely acclaimed and the concernedState Governments are being asked to takenecessary actions on the findings of the report.

l The findings of the evaluation report onDistrict Poverty Initiative Projects (DPIPs) arefound to be useful in mid-course correctionand the State Government of Madhya Pradeshas well as the World Bank have been sensitizedto take necessary actions.

PEO�s Evaluators got space in World Bank�sPublication entitled �Influential Evaluations�,January 2005

19. A case study on Improving the Efficiency ofthe Indian Employment Assurance Scheme based on

original study on Employment Assurance Scheme(EAS) prepared by Dr. S.P. Pal, Adviser (Evaluation)and Shri Amar Singh, Director (PEO) wasacknowledged and published in World BankOperations Evaluation Department�s publicationtitled �Influential Evaluations� � Evaluations thatImproved Performance and Impacts of DevelopmentPrograms in January, 2005. Contents of the case studyare available at http://www.worldbank.org/oed/ecd/.

News and Views about DevelopmentEvaluation in India

20. A three day biennial conference ofInternational Development Evaluation Association(IDEAS) was held at Habitat Centre, New Delhi (12th

April to 13th April, 2005) under the aegis of the WorldBank and UNDP for capacity building, sharingexperiences, increasing networks and enhancingadvocacy for practice of development evaluation acrossthe globe. PEO also happens to be one of the foundingmembers of IDEAS launched at Beijing in 2002 andtherefore, has requested UNICEF to sponsor theevaluators of PEO and members of DevelopmentEvaluation Society of India (DESI) to participate inone day�s workshop on capacity building organizedby IDEAS.

Other Activities of PEO

21. The other activities that have been carried outare given as below:

(i) Drafting and Evidence Sub-Committee of theCommittee on Parliament on OfficialLanguages inspected Regional EvaluationOffice, Jaipur w.e.f.5th September, 2005 to 7th

September, 2005. PEO in association withHindi Division and General Administrationof the Planning Commission made necessaryarrangements for the conduct of inspectionand provided necessary inputs.

(ii) In compliance with the decision taken by theCommittee constituted by PlanningCommission for approval of studies to beconducted by SER Division of the PlanningCommission, PEO has been examining the


113

study designs being prepared by the sponsoredResearch Institutes. During the year 2005,study designs for 8 schemes were examinedand comments of PEO on their methodologywere communicated to SER Division.

(iii) The Adviser(Evaluation) has been entrustedwith the task of overseeing and guidance onformulation of district plans and theirimplementation under RSVY in 7 districts ofUttar Pradesh, viz. Sitapur, Unnao, Fatehpur,Hamirpur, Jalaun, Mahoba and Raibareli andone district (Chatra) of Jharkhand. Theperiodic technical guidance on district plansformulated by the District Magistrates of theconcerned districts was provided by Adviser(Evaluation) during the relevant year. On thespot verifications of some projects in Unnaoand Jalaun were carried out by PEO.

e-Governance in PEO

22. A comprehensive proposal for strengtheninge-governance and information technology has beenprepared and submitted to General Administrationfor implementation. The proposals are assured to beimplemented in a phased manner by the PlanningCommission.

23. The PEO is also asking State EvaluationOrganisations to send the evaluation reports toPlanning Commission so that these reports can alsobe put on the Internet. In a recent meeting taken byDeputy Chairman, Planning Commission, it has beendecided to remind all the States /UTs to sendinformation on the evaluation studies conducted byState Governments. Members of the PlanningCommission have already addressed to the ChiefMinisters to make available requisite information inthe prescribed proforma.

Orientation Programmes organized by PEO

24. The organization of orientation programmeis a tedious job for the Project Directors of the allottedstudies, as they have to fulfill the desired standards ofprocesses of evaluation. The Project Directors of thestudies are required to collect the background materialon the schemes/programmes from the concernedMinistries/Departments for formulation of designs forthe studies for launch in the field. To make the fieldoffices of PEO understand as to how to conduct thestudy in the field, orientation programmes areorganized for comprehensive discussions. During theyear 2005-06 an Orientation Programme forconducting the study on Cooked Mid Day Meals wasorganised on 2nd & 3rd August, 2005 at YojanaBhavan, New Delhi.


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Annexure 5.1

Lay out of Programme Evaluation Organisation at Field Level

Name of Regional Project Evaluation Office (PEO) States/UTs falling under concernedEvaluation Office (REO) attached to concerned REO REO/PEO

1 2 3

I. Eastern Region PEO, Guwahati & 1. Arunachal Pradesh1. REO, Kolkata PEO, Bhubaneshwar 2. Assam

3. Manipur4. Meghalaya5. Mizoram6. Nagaland7. Orissa8. Sikkim9. Tripura10. West Bengal11. A & N Islands

II. Northern Region PEO, Shimla 1. Haryana2. REO, Chandigarh 2. Himachal Pradesh

3. Jammu & Kashmir4. Punjab5. Chandigarh6. Delhi

III. Southern Region PEO, Thiruvananthapuram 1. Kerala3. REO, Chennai 2. Tamil Nadu

3. Lakshadweep4. Pondicherry

IV. South Central Region PEO, Bangalore 1. Andhra Pradesh4. REO, Hyderabad 2. Karnataka

V. Central Region PEO, Bhopal 1. Madhya Pradesh5. REO, Jaipur 2. Chhatisgarh

3. Rajasthan

VI. Northern Central Region PEO, Patna 1. Bihar6. REO, Lucknow 2. Jharkhand

3. Uttar Pradesh4. Uttaranchal

VII. Western Region PEO, Ahmedabad 1. Goa7. REO, Mumbai 2. Gujarat

3. Maharasthra4. D&N Haveli5. Daman & Diu


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Vigilance Activities

Chapter 6

Vigilance Activities6.1 The Vigilance Unit of the PlanningCommission deals with all vigilance cases i.e., casesof corruption, mal-practices and lack of integrity inrespect of Group �A�, �B� and �C� Officers. It is alsoresponsible for issuing vigilance clearance certificatesat the time of promotion, forwarding of applicationsfor outside jobs / passports, release from the PlanningCommssion on transfer / retirement and advising theadministration on other disciplinary cases which maybe referred to it for advice.

6.2 Planning Commission being a non-publicdealing department did not receive any complaint ofvigilance nature from the general public during Aprilto December, 2005.

Prevention of Sexual Harassment :

6.3 In accordance with the guidelines andnorms prescribed by the Hon�ble Supreme Courtof India in a Public Interest Litigation WPNo (Crl)666-70 of 1992, a Complaints MechanismCommittee on Sexual harassment in the PlanningCommission headed by Pr. Adviser (Health) withtwo other Members was constituted. The relevantprovisions of the Conduct Rules on the subject werewidely circulated in the Planning Commission.During the period April-December, 2005, not asingle complaint has been reported to theCommittee.

116

C & AG Audit Observations (Annexure)

Annexure

C & AG Audit Observations1. Report No. 1 of 2005

Para 6.10 read with Appendix VI-D relating to Rush of Expenditure during the month ofMarch, 2004.

l Total expenditure during the year under Major Head 3475 � Other General Economic Serviceswas 12.22 crore out of which an expenditure of Rs. 3.10 crore was incurred in the month ofMarch, 2004 which was 25% of the total expenditure.

2. Report No. 2 of 2005

l Para 1.1 read with Appendix-III relating to Annual Accounts of Autonomous Bodies pointsout that the Institute of Applied Manpower Research (at Sl. No. 62), Grants released during2003-2004 to central autonomous bodies audited u/s 14(1) and 14(2) of CAG�s (DPC) Acts,1971.

l Para 1.2 read with Appendix-IV indicates that as on 31st March, 2004, 18 Utilisation Certificateswere outstanding in respect of grants amounting to Rs. 20.23 lakh released up to March,2003, which were due by 31st March, 2004.

ORGANISATION CHART OF THE PLANNING COMMISSIONGOVERNMENT OF INDIA

Dr. MANMOHAN SINGHPRIME MINISTER

CHAIRMAN

RAJEEVA RATNA SHAHMEMBER-SECRETARY

MONTEK SINGH AHLUWALIADY.CHAIRMAN

1. Designations

PR. ADV. Principal AdviserADV. AdviserJT.SECY. Joint SecretaryFA Financial AdviserJT. ADV. Joint AdviserOSD Officer on Special DutySr. Consultant - Senior Consultant

2. Subject :

ADMN. AdministrationAgri. AgricultureA.P. Andhra PradeshC&I Communicaton & informationC&IT Communication & Information TechnologyCom. CommerceDRF Development Reforms FacilityDP Development PolicyEDU EducationE & F Environment & ForestsFR Financial ResourcesHRD Human Resource DevelopmentHUD Housing & Urban DevelopmentIDA Island Development AuthorityIAMR Institute of Applied Manpower Research

IE International EconomicsIT Information TechnologyI & B Information & BroadcastingLEM Labour, Employment & ManpowerMLP Multi Level PlanningM.P. Madhya PradeshMS Member SecretaryNCP National Commision on PopulatonNCT National Capital TerritoryNE North EastOL Official LanguageO/o DCH Office of Deputy ChairmanPAMD Project Appraisal & Management DivisionPDS Public Distribution SystemPC Plan Co-ordination

PO&RM Programme Outcome & Responce MonitoringPP Perspective PlanningRD Rural DevelopmentRSVY Rashtriya Sam Vikas YojanaSER Socio-Economic ResearchSJ & WE Social Justice & Women EmpowermentSP-C State Plan-CentralSP-E State Plan-EastSP-N State Plan- NorthSP-NE State Plan-North EastSP-S State Plan-SouthSP-W State Plan-WestS & T Science & TechnologySP & Adm. State Plan & AdministrationTPT. Transport

Dr(Ms.) SYEDAHAMEEDMEMBER

Dr. B.L.MUNGEKARMEMBER

ANWARUL HODAMEMBER

DR. V.L.CHOPRAMEMBER

SUMMARY

Smt. ADARSH MISRAPR.ADV.

(E&F/HUD/SP-UTs/TRP/SP-W/IDA)

L.P.SONKAR ADV.

(MINERALS )

R.C.JHAMTANIADV.

(INDUSTRIES/VSE)

B.N.PURIADV.(TPT.)

P.N. ASARIADV.

(E &F)

S.SHARMAADV.

(LEM/Voc.Trg.)

Smt. ADARSH MISRAPR.ADV.

(E&F /HUD/SP-UTs/TRP/IDA)

G A J E N D R AH A L D E A

ADV. TO DCH(INFRASTRUCTURE)

AS ON 21.02.2006

DR. PRONAB SENPR.ADV. (PP)

A. SEKHARADV. (WR)

SURYA P. SETHIADV.

(ENERGY)

Dr. KIRIT PARIKHMEMBER

B.N.YUGANDHARMEMBER

S.S.BATRAADV.

(HEALTH)

Prof. ABHIJIT SENMEMBER

-Prespective Planning-Energy (Power, Coal,Petroleum,Non-Conventional& Atomic Energy- Water Resources(Irrigation,Drinking Water,Desalination,Ground WaterRecharge, Rain WaterHarvesting, Drainage)State Plans- U.P., Uttaranchal,& Karnataka

-Agriculture-Development Policy(Including PDS)-Financial Resources-State Plans- A.P., Orrisa, &Jharkhand-Evaluation Sector

-Science & Technology-Agricultural Research-Environment & Forests-State - Punjab, Delhi (NCT)& Goa

-Labour & Employment-Education-Technical Education,Vocational Training & SkillUpgradation & Certification-Tribal Development-Social Justice &EmpowermentState - M.P., Chattisgarh &Kerala

-Health & Family Welfare-NGOs, Voluntary Action Co-ordination Cell-Village & Small Entrepreneurs-Women & Child Development- State Plan- Haryana, H.P. &Rajasthan

-Rural Development & Panchayati Raj-Multi Level Planning-RSVY-Addressing Regional Disparities- State Plan - Maharashtra,Gujarat & North East &Sikkim

-International Economics-Industry & Minerals-Transport-Urban Development & Housing-TourismState Plan - Tamil Nadu,Pondicherry & West Bengal

M.V.RAJASEKHARANMinister of State for Planning

AND MEMBER

LALU PRASADMINISTER OF RAILWAYS

MEMBER

P. CHIDAMBARAMMINISTER OF FINANCE

MEMBER

PRANAB MUKHERJEEMINISTER OF DEFENCE

MEMBER

ARJUN SINGHMINISTER OF H.R.D.

MEMBER

SHARAD PAWARMINISTER OF A&CA,F&PD

MEMBER

DAYANIDHI MARANMINISTER OF C & IT

MEMBER

- Communication- IT and I&B- Parliament Matters

Chairman - 1Dy. Chairman - 1MOS - 1Members (6+7) - 13Member Secretary - 1Pr. Adviser - 4AS & F A - 1

Sr.Consultants - 2Advisers - 20Director (IAMR)- 1JT. SECY. - 1Jt. Adv. (S&T) - 1ADV.TO DCH - 1

Total - 48

S.SHARMA

DIRECTOR

(IAMR)

DR.P.K.BISWASJT. ADV.

(S&T)(Incharge)

Dr.(Mrs.) RITASHARMAAS & F.A.

DR. C. MUR ALI -KRISHNA KUMAR

ADV.

( ICT )

TRP Tsunami Reconstruction PlanVAC Voluntary Action CellVoc.Trg. Vocational TrainingVSE Village & Small EnterprisesWCD Women & child DevelopmentWE Women’s EmpowermentWR Water Resources

Smt. MEENAKSHIDATTA GHOSH

PR.ADV.( S P - N / H E A L T H / S E R )

*

JAINDER SINGHADV.

(HUD/SP-C)

L. P. SONKARADV.

(MINERALS/TRP)

DR. S .P.PALADV.

(EVALUATION)

R.BANDYOPADHYAYADV.

(RD/SP-S)

Smt.MANJULIKAGAUTAM

ADV.(VAC/WCD/SP-W)

G.B. PANDAADV.(SJ)

Mrs.SUMAN SWARUPSR.CONSULTANT(EDU/SJ/SP-NE)

CHANDRA PALADV.

(MLP/SP-ESCP/TSP)

R. SRIDHARANJT. SECY.

(SP/ADMN./OL)& ADV. (FR)

R. SRIDHARANJT. SECY.

(SP/ADMN./OL)& ADV. (FR)

Km. GURJOT KAURADV.

(PC/PO&RM/TOURISM)

Km. GURJOT KAURADV.

(PC/PO&RM/TOURISM)

K.L.DATTAADV.(Edu.)

A.S.AHLUWALIA

ADV.(SER/SP-N)

V.K. BHATIAADV.

(PAMD)

Dr. ARVIND VIRMANIPR.ADV.

(DP/IE/Com.)

Dr.V.V.SADAMATE

ADV.(AGRI.)

B.S.BASWANSR.CONSULTANT

(EDN/S&HE)

R.BANDYOPADHYAYADV.

(RD/SP-S)

Smt.MANJULIKAGAUTAM

ADV.(VAC/WCD/SP-W)

DR. C. MUR ALI -KRISHNA KUMAR

ADV.( ICT )

Dr. ARVIND VIRMANIPR.ADV.

(DP/IE/Com.)

Smt. MEENAKSHIDATTA GHOSH

PR.ADV.( S P - N / H E A L T H / S E R )

Km. GURJOT KAURADV.

(PC/PO&RM/TOURISM)

* Additional Charge

Annual Report 2005-06

Documents

Transcript of Annual Report 2005-06