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Government of India
Planning Commission
07-February-2004 16:1 IST
Planning Commission

50th Meeting of the National Development Council (NDC)

The Tenth Plan (2002-07) has been approved by the National Development Council (NDC). It envisages an ambitious average growth rate of eight per cent per annum in GDP and doubling the per capita income in ten years. It aims to harness the benefits of growth to improve the quality of life by reduction in poverty ratio to 21 per cent, providing potable water in all villages, enrolling all children in school by 2003, and increasing literacy rate to 75 per cent by 2007. It also aims at creating 50 million jobs during the Tenth Plan and providing shelter to all by the end of the Eleventh Plan. This will require tremendous efforts for resource mobilisation, large investment in infrastructure and social sectors, improved allocative efficiency of resources, eliminating inter-State trade barriers, investor friendly environment, labour law reforms, efficient delivery system, and peoples’ participation.

In a path-breaking development, following the initiatives taken by the Prime Minister, the National Development Council has also approved constitution of four Empowered Sub-Committees of the NDC, consisting of Union Cabinet Ministers and State Chief Ministers, in the areas of Governance of Reforms, Removal of Internal Trade, Creation of Investor - Friendly Environment, and Empowerment of Panchayati Raj Institutions. These Sub-committees have since been set up with the approval of the Prime Minister.

One of the objectives of planned economic development in India has been the removal of poverty and improving the quality of life of its people. The Government has, over the years, taken steps, through a number of poverty alleviation programmes, like Swaranjayanti Gram Swarozgar Yojana (SGSY) and Sampoorna Gramin Rozgar Yojana (SGRY), to bring maximum people above the poverty line. These programmes also aim at providing food security, nutrition levels and housing needs of the rural poor. As part of these efforts, the scheme of Indira Awaas Yojana (IAY) is being implemented in the country. The Indira Awaas Yojana (IAY) was launched as the major scheme for construction of houses to be given to the poor, free of cost at the unit cost of Rs.20,000 in plain areas and Rs.22,000 in the hilly/difficult areas. In addition to these, a number of other schemes like Valmiki Ambedkar Awas Yojana (VAMBAY), Swarna Jayanti Shahari Rozgar Yojana (SJSRY), National Slum Development Programme (NSDP), Night Shelter Schemes, etc., also aim at providing shelter with sanitiation for people below the poverty line.

A number of steps, to ameliorate the lot of women and children in the country, have not only been taken but are also underway. The Annual Plan 2002-03 had given form to the recently adopted National Policy for Empowerment of Women, which envisages a three-fold strategy of empowering women through (i) Social Empowerment (ii) Economic Empowerment & (iii) Gender Justice. The strategy will be followed during 2003-04, as well. The major achievement during 2002-03, was the operationalisation of 301 Sawayamsidha Blocks against the target of 100 blocks. The programme of Sawayamsidha aims at the all round empowerment of women by ensuring their direct access to and control over resources through a sustainable process of mobilisation and convergence of all on-going sectoral programmes. An additional effort will be made in the coming year to improve the nutrition status of children below 6 years, with a special priority for children below 24 months, through the on-going direct feeding programme of Special Nutrition Programme (NSP). The setting up of a National Commission for Children has been approved by the Cabinet in April, 2003, to oversee the proper implementation of the existing legislations pertaining to children.

One of the most important objectives of policy planning has been to provide free and compulsory primary education to all children. The Sarva Shiksha Abhiyan (SSA), which has been launched to achieve this objective, indicates a strong reiteration of the country’s resolve to give the highest priority to achieve this goal. It covers the entire country and addresses the needs of 192 million children in 11 lakh habitations. The SSA seeks to ensure that all children are in school by the year 2003, all of them complete 5 years of schooling by 2007, and all children complete 8 years of schooling by 2010. Universalising access to primary education and improvement of basic school infrastructure are the core objectives of the Tenth Plan.

The Tenth Five Year Plan (2002-07) was approved by the National Development Council on December 21, 2002. The Plan has developed the NDC mandated objectives, of doubling per capita income in ten years and achieving a growth rate of 8 per cent of GDP per annum during the period 2002-07. Since economic growth is not the only objective, the Plan aims at harnessing the benefits of growth to improve the quality of life of the people by setting a number of key targets. The Tenth Plan also aims at creating 50 million job opportunities during the Plan period, by placing special emphasis on employment intensive sectors of agriculture, irrigation, agro-forestry, small and medium enterprises, information and communication technology and other services.

The Government has announced launching of a new initiative, viz., Development and Reform Facility (now called Rashtriya Sam Vikas Yojana) with an outlay of Rs.2,500 crore for removal of developmental imbalance and to set in motion a process of reforms of Acts/ Procedures which impeds development in the country. The Planning Commission is operationalising the new initiative. The two components of this programme, namely, Special Plan for Bihar and Special Plan for KBK districts of Orissa, have recently been approved by the Cabinet Committee on Economic Affairs. Another component of the Rashtriya Sam Vikas Yojana is the Backward Districts Initiative, which aims at removing the developmental imbalance in the selected most backward districts in the States is being finalised.

The petroleum sector has been opened up for entry of new players in the marketing of petroleum products. This competition would benefit the consumers in terms of lower prices and quality of products. In addition to this, drastic steps are being taken to reform the power sector. The Electricity Act, 2003, has been notified on June 10, 2003. The new law replaces the existing three laws relating to electricity, namely the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948, and the Electricity Regulatory Commission Act, 1998. The Electricity Act, 2003, recognises trading of power as a distinct activity, allows for multiple licenses for transmission and distribution in the same territory, sets the bases for open access in transmission and permits SERCs to allow open access in distribution of electricity in phases. This would ultimately encourage efficiency and competition. The Government has approved to provide an interest subsidy of 4 per cent to State governments/Power Utilities on loans availed by them from financial institutions.

The poverty alleviation and other important schemes are not only being launched, but the Government have put in place a performance assessment system to assess if the goals of development projects are being realised and if the public funds are being used judiciously. Their performance is being independently assessed in Planning Commission and the feedback from evaluation has led to major changes in project formulation and investment appraisal to make these efficient and effective.

Rashtriya Sam Vikas Yojana

The Government has also announced launching of a new initiative, viz., Development and Reform Facility (now called Rashtriya Sam Vikas Yojana) with an outlay of Rs.2,500 crore for removal of developmental imbalance and to set in motion a process of reforms of Acts/Procedures, which impedes development in the country. The Planning Commission is operationalising the new initiative. The two components of this programme, namely, Special Plan for Bihar and Special Plan for KBK districts of Orissa, have recently been approved by the Cabinet Committee on Economic Affairs. Another component of the Rashtriya Sam Vikas Yojana is the Backward Districts Initiative, which aims at removing the developmental imbalance in the selected most backward districts in the States is being finalised.

Vision 2020

Planning Commission constituted a Committee on Vision 2020, for India in May, 2000, under the Chairmanship of Dr S.P. Gupta, Member, Planning Commission for crystallising the country’s vision for the future in the year 2020.

India Vision 2020 envisages that by 2020, the people of India will be more numerous, better educated, healthier and more prosperous than at any time in our long history. India’s per capita income will quadruple by 2020, with GDP growing at an annual rate of 9 per cent and population growth slowing down to 1.6 per cent per annum. It will be people oriented development providing equal opportunities for all and removing the existing inequalities. There will be almost no unemployment, no poor and 100 per cent literacy. India’s claim to the title Silicon Valley of Asia will be followed by the diversification from IT to biotechnology, medical sciences and other emerging fields of technology, enhancing India’s international competitiveness and generating large employment opportunities for the educated youth. These developments, coupled with a quantum expansion of vocational training programmes, will ensure jobs for all by 2020. Inequalities between different age groups, sexes, income groups, communities and regions will come down dramatically. India 2020 must be one in which all levels and sections of the population and all parts of the country march forward together towards a more secure and prosperous future. However, environmental issues will remain a serious concern, requiring strict enforcement of standards, use of water harvesting techniques and renewable energy sources like bio-mass, and massive afforestation. By 2020, India will be much more integrated with the global economy and become a major player in terms of trade, technology and investment. Rising levels of education, employment and income will help stabilise India’s internal security and social environment. A united and prosperous India will be far less vulnerable to external security threats. A more prosperous India in 2020, will be characterised by a better-educated electorate and a more transparent, accountable, efficient and decentralised Government.