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Draft
I
APPROACH TO THE
EIGHTH FIVE YEAR PLAN
(1990-1995)
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Planning Commission
Government of India
September, 1989
r.
Contents
I
Chapter No.
Page
I
Objectives, Strategies and Dimensions of Growth
1
II
Rural Development, Poverty Alleviation and Employment
13
III
Agriculture, Irrigation and Allied Activities
18
IV
Industrial Development
24
V
Urban Development
28
VI
Human Resource Development:
32
(a)
(b)
(c)
(d)
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VII
11
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Title
Education
Health, Family Welfare and Nutrition
Water Supply and Sanitation
Development of Vulnerable Groups
Infrastructure Development:
(a)
(b)
(c)
(d)
42
Energy
Transpon
Housing
Communications
VIII
Science and Technology
52
IX
Environment and Ecology
54
X
Decentralisation and Efficiency
57
Annex:
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II
Agro-climatic Zones at a Glance
Estimates of Gross Generation, Consumption
Requirement and Addition to Installed Capacity
List of Abbreviations
61
62
63
</
CHAPTER I
OBJECTIVES, STRATEGIES AND DIMENSIONS OF GROWTH
1.1
Growth with social justice, modernisation and self-reliance and ecological
sustainability have been the basic concerns of India’s Five Year Plans. Economic growth is
itself a means to achieving the primary objectives of ensuring gainful employment, food,
water, clothing and shelter, energy, education and health for all, and reducing disparities
among regions and classes of people. Hence, the modalities and pattern of growth are as
important as the pace of growth. However, only accelerated growth can provide the
framework in which these national objectives can be vigorously pursued.
1.2
Economic performance during the Seventh Plan has been significantly better than
targeted. Agricultural production has touched new heights. Industrial growth is
accelerating/ Export earnings are on the rise. Traditional concerns of poverty and
unemployment are being addressed with a new vigour. Capital use efficiency has shown
improvement. Systems of governance are being modified in order to make the
administration responsible and responsive. Vigorous efforts are being made to improve the
status and living standards of women and other weaker sections of society. The needs of
children are receiving priority attention.
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1.3
The setting of the Eighth Plan is thus full of promise, backed by solid performance.
Indian planning and development effort has sought to combine change with continuity. The
Seventh Plan has, however, succeeded in impaning a new direction and a new thrust to the
forces of change, modernisation and reform. The challenge ahead is to consolidate the
impressive gains of the past, take the country to new heights of economic achievement and
to reach the fruits of development to all the people, especially the deprived, the weak ano
the underprivileged. The challenge is not merely economic; it encompasses political, social
and cultural dimensions as well.
The Backdrop
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1.4
The Seventh Five Year Plan is expected to achieve an average growth rate of about
5.4% per annum in Gross Domestic Product (GDP). The eighties reveal a distinct step-up
in the earlier growth performance of the economy.
1.5
Agricultural growth in recent years has been due almost entirely to increase in
productivity rather'than increase in cultivated area. Moreover, such growth is now in
evidence in regions outside the north-west part of the country. Even in the early 1980s.
which were marked by adverse climatic conditions, foodgrains production in eastern
India increased. The rise in fertilizer consumption in Uttar Pradesh and Bihar and evidence
of improved agricultural practices in these areas are pointers for the realisation ot the vast
potential of agricultural development in this pan of the country.
1.6
Indian industry is now on the path of around 8% growth. There are indications that
further improvement is possible. It is undergoing a major transformation in response to
competitive pressures induced by recent policy changes. Large public projects in important
sectors like fertilizers and super thermal power plants show a marked improvement in
implementation and performance. New centres of industrial activity and a new
generation of entrepreneurs are emerging. The availability of industrial raw materials,
intermediates, capital goods and consumer durables has expanded substantially.
Financial markets have become wider. The spread of equity culture has resulted in a seven
fold increase in the resources raised by the corporate sector from the capital market over the
first seven years of the eighties. In some areas Indian industries are becoming
internationally competitive.
1.7
Infrastructural constraints to rapid industrial expansion have eased. The traffic
handling capacity Of the transport sector has expanded significantly. This has been
achieved mainly by gains in productivity and in a good measure through replacements ot
obsolete assets. As a result of higher accretion of reserves and other infrastructural
1
facilities established during the Seventh Plan, crude oil production is likely to increase by
about one-third during the next Pfan. Sizeable reserves of natural gas have been
established. The Seventh Plan targets of addition to power generating capacity are
expected to be fully achieved, raising electricity generation by over 60% during the Plan
period. The thrust on systems improvement, capacity utilisation and productivity
targeting has started showing results.
1.8
The composition of the rural work-force is changing. Not only has there been a
shift from rural to urban areas, but more strikingly, within the rural areas there has been a
shift from agricultural to non-agricultural activities.
1.9
Consumption patterns are undergoing important changes. The share of non
cereals and non-food consumer goods in the total consumption expenditure has risen
in all income classes in rural and urban India.
1.10 /The.growth in exports since 1986/87 has been impressive and has averaged over
10% in volume terms.
1.11
The proportion of the poor in the total population of the country has been
brought down from 54% in 1961/62 to 37% in 1983/84 and is expected to be brought
down further to less than 30% by the end of the Seventh Plan. The per capita availability
of food has improved.
*
1.12 Science and technology are playing an increasingly significant role in fostering
accelerated growth and modernisation in various sectors of the economy, particularly
agriculture and industry. The basic institutional framework for their sustained application
for the benefit of the common man is now in place.
1.13 However, constraints on development persist While concentrating on the strength
of our achievements, the Eighth Plan will vigorously counter some untoward trends
mentioned below:
Population growth, through marginally slower than in the past, is still near 2.1
per annum, which translates to an addition of around 16-17 million to the nation s
population every year.
The labour force has been growing at 2.5%. Productive employment has to grow at
a faster pace to be in line with this trend.
There has been a marked acceleration in urbanisation during 1971/1981 over the
preceding decade. If present trend continues, unban population may account for
about one-third of the total population by the turn of the century. Urban
infrastructure even at a minimum level for this population level will need
considerable resources.
Although in the eighties some signs of improvement in certain lagging States have
been observed, regional disparities continue to exist. Development institutions and
organisational capabilities in the backward regions of the country would need to be
strengthened to deal effectively with the problems of development and redistributive
justice.
The special needs of inputs, capital investment, processing and marketing of small
land holdings require to be more effectively met.
Technological change in agriculture has led to increases in cropping intensities. But
in areas of developed agriculture, further absorption of labour is declining, and
therefore, there is need for greater economic diversification.
From the point of view of long range sustainability, greater efficiency in the
management of natural resources - land, water, minerals, energy, etc. - has become
urgent.
The capital-output ratio has declined in recent years. However, there is scope and
need for further reduction. A package of incentives to promote efficiency and
viability needs to be devised as a matter of priority.
A step up in savings will be necessary to finance the next plan with a higher growth
target in a non-inflationary framework.
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The balance of payments position points to the need for higher export growth on a
sustained basis.
1.14 More pointed attention is needed to ensure that economic progress results in
corresponding improvement in the social well-being of the people at large. The structure of
educational, cultural, political and social institutions need to be carefully examined with a
view to encouraging cohesiveness beyond narrow caste, communal and village/town lines.
Such reforms are important objectives to be pursued in themselves, and are required for
harmonious economic development.
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1.15 The objectives, design and dimensions of development that we set for the Eighth
Plan have to take note of the solid achievements and emerging challenges. The spirit in
which we have to approach the task should be derived from our resolve enunciated in the
Constitution to build the country as a sovereign, socialist, secular, democratic Republic.
Planning in the final analysis is about empowering people and building self-help
capabilities. The state, with its positive programmes for creation of infrastructure, spread
of education and health and more generally for human resource development will have to
continue to expand this process. The Plan needs to enthuse and inspire popular
participation if it is to generate the impulses required for sustained self-development
OBJECTIVES
1.16
The main objectives of the Eighth Five Year Plan will be:
Growth and Modernisation:
(i)
An annual growth rate in GDP of at least 6% ;
(ii)
A sharper regional focus to reduce disparities and to ensure more
dispersed growth;
(iii)
International competitiveness in an expanding range of
manufacturing and excellence in select sectors;
(iv)
Self-reliance in technology,
investment;
(v)
Greater resilience of the economy to adapt to and take advantage of
the changing international scene;
food security
and resources for
Poverty Alleviation and Equity:
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Reduction of poverty levels to 18% - 20% of the population
from an expected level of 28-30% by the end of the Seventh Plan;
(vii)
An annual employment growth of 3%; working towards an
employment assurance for the poor.
(viii)
Special emphasis on the development of women, children,
scheduled castes, scheduled tribes and other vulnerable groups;
Basic
Needs:
(ix)
Average annual foodgrains availability to increase from the current
level of 175 kg. to 195 kg. per person by the terminal year of the
Plan;
(X)
Clean drinking water for all by 1995; containment of major
communicable diseases with a view to their elimination by
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(vi)
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A.D. 2000; expansion of the comprehensive integrated health
service system in order to achieve health for all by A.D. 2000;
(Xi)
Provision of facilities for universalisation of elementary
education and eradication of illiteracy in the working-age (15-35)
population;
People's Participation:
(xii)
Greater emphasis on decentralisation, people’s participation and
efficiency.
STRATEGIES
1.17 The plan strategy will have to focus concretely on the achievement of the above
objectives, more particularly on further alleviation of poverty and generation of large
productive work opportunities and meeting the essential needs of food, clothing, shelter,
energy, clean drinking water, education and health.
1.18 Anti-poverty and employment generation programmes specifically designed to raise
productivity and incomes of the people below the poverty line will be given a renewed
thrust. An expanded and better streamlined wage-employment programme, with the
ultimate objective of giving a practical shape to the concept of ’right to work’ will be
attempted. It is necessary to intensify efforts in the areas which have high concentration of
the poor. Programmes of enhancing asset and skill-endowment for taking up self
employment ventures, development of women and children and training of rural youth
would be expanded and strengthened. The poor will be encouraged to organise and
panicipate in the decision-making processes.
1.19 Food still remains the most important component of wage goods. Adequate supply
of food at affordable prices implies increasing the production of foodgrains so as to
increase its per capita availability, adequate buffer-stocking and a poor-oriented Public
Distribution System (PDS) with a widespread network. Consumer protection would receive
special attention particularly in regard to distibution of essential commodities.
1.20 Substantial scope for higher growth in agriculture with increased employment exists
in large parts of the country where agriculture has been stagnant or has been growing at a
slow pace. Diversification of agriculture and growth of agro-processing also provide
significant scope for employment generation. Disaggregated and regional approach to
agricultural planning will be attempted with emphasis on land develolpment programmes on
a massive scale, scientific water management, optimal land use and cropping pattern and
diversification and modernisation in animal husbandry, poultry and fisheries, along with
policy support and fiscal incentives to the producers.
1.21 Efforts will have to be intensified to secure house sites for the poor homeless and
to provide assistance for culvitation of surplus land through appropriate legislative and
promotional measures . Protection of rights of tenants and share-croppers will have to be
secured through reforms in tenancy records and legislation accompanied by necessary
measures for creation of awareness. Such programmes will receive added thrust in the
Eighth Plan.
1.22 The investment pattern and macro-economic policies would have to be concretely
reoriented towards the goal of reducing inequalities in income and wealth to more
acceptable levels and of bringing down the capital intensity of the production structure with
a view to creating more job opportunities. The small scale industry sector offers reasonably
high employment generating capacity. A more specific strategy will be the development of
towns/growth centres with basic infrastructure for the diversion of rural labour force into
non-agricultural activities.
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The environmental resources which constitute the life of our system would need o
1.23
be more systematically protected, nurtured and deployed in a scientific manne so,as w
achieve sustainable development. The adoption of a ^mprehensi^ land use policy
assumes imponance in this context. The Eighth Plan w.ll give pnonty to th s y , k and
devise appropriate mechanisms for the articulation and operauonalisation of a a nd us
planning system that takes into consideration the expanding requirements of agriculture
forests"SZity purposes, housing, industnal and commercial u.ses as5 well aas u ba
expansion. The land and water development strategies, cropping pattern
wasteland development, afforestation and environmental plans for major industrial
infrastructure and water use projects will
operationalising such a strategy. Urban and metropolitan developmen P^s *dl ', .
to be incorporated in the strategy. The integration of such plans should be attempted .
local level, preferably the district.
1 24 The Plan must take note of international political and economic developments that
are unfolding rapidly Economic structures and relationships are undergoing significant
changes in many regions of the world. Without compromising on the basic goals of self
reliance and endogenous growth, India must vigorously seek a n>ore active
f°r
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the global systems, take advantage of the changes to quicken he pace of i ^ejelopn en
and in the process further enhance its status mternationaHy. Our external pohtcal
relationships will need to keep in view, and in turn be reinforced by, tne changi g
economic impreatives and technological compulsions of India s accelerated grow
1 25 A higher growth rate than in the past will call for increased
m resou*<e
use, better rates of savings and investment and faster export growth. The following ta.le
captures the macro-economic magnitudes of a 6% growth rate.
Table 1
Macroeconomic Implications of a 6% Growth in the Eighth Plan
(Expected)
8th Plan
Average
(Tentative
Projections)
7th Plan
Average
1
Incremental Capital Out
put Ratio (ICOR)
4.30
4.15
2
Total Savings (% of GDP)
- private corporate
- household
- public
21.1
1.8
16.9
2.4
23.3
2.0
17.7
3.6
3
4
5
6
7
Total Investment (% of GDP)
Net Capital Inflow (%of GDP)
Tax Ratio (% of GDP)
Public Consumption (% of GDP)
Export Growth
(volume,% per year)
23.1
2.0
17.0
12.1
24.9
1.6
18.9
13.3
7.5
12.0
ive intervention
1.26 The following aspects, demanding sharper policy focus and purposive
interve
emerge from the above Table.
a further reduction in the ICOR;
larger efforts to raise savings rates in the household and private
sec u .
check on the growth in Government's consumption expenditure, belter targeting ot
subsidies and greater financial profitability of public enterpnses, with ;a vk« k
attaining a substantial surplus in the balance available from current revenues tor
financing Plan expenditures by 1994-95;
5
Continued expansion and improved efticiency in the infrastructure sector
1.27 Possibilities of stepping up the tempo of development further need to be explored
taking note of trends in the key parameters, particularly the ICOR, savings and export’
More specifically, attempts should be focused on bringing about further improvements ir
the ICOR in various sectors through appropriate efficiency norms and improved
management practices. The aim sould be to achieve a higher growth rate than the projected
6% growth in GDP with the given level of Government expenditure. Attempts should also
be made through larger mobilization of resources by individuals and local conhmunities in
rural and urban areas for a higher development effort. Policies should be designed to
enhance such possibilities.
I
Incremental Capital Output Ratio
1 28 The ICOR is an overall indicator of the efficiency with which investments are
used to generate additional output. The ICOR in the Seventh Plan is expected to be around
4 30 (in terms of the new series of National Accounts). It is expected that during the
Eighth Plan the ICOR can be brought down further to 4.15. This would require a number
of steps to be taken in all spheres of economic activity to cut down waste and sub-optimum
allocation of resources to raise the productivity of men as well as materials, and secure
better utilisation of installed capacities in all sectors. A higher priority to investment in
sectors with low ICOR should in general be consistent with the requirements of rapid
employment generation. This would call for higher investment in sectors like agriculture,
village and small industries and other such labour intensive activities. Greater emphasis
will have to be placed on aspects like speedy completion of projects through proper
prioritisation and efficient implementation, resort to use of modem aids for process control
and optimum input use, improvement in delivery systems to minimise distribution leakages
and losses adoption of more efficient construction and conservation technologies
improvement in motivation at shop floor level as well as in managerial echelons and
economic pricing decisions. Conservation and efficient use of energy will have significant
impact on the ICOR.
1 29 The process should begin with a close scrutiny of all Government schemes and
programmes, both of the Central and State Governments, with a view to secunng their
consolidation and coordination, thereby reducing multiplicity of agencies and elimination o
time-consuming and unproductive processes. Delivery system will be subjected to a critical
examination to raise the level of efficiency in such major areas as input supplies to farmers
health education and welfare services, and conveyance and distribution mechanisms of
water and power. Local community involvement in the management of assets and in the
implementation of development programmes, should lead to a larger flow of goods and
services and greater public satisfaction. It is also expected to result in better utilisation of
resources and higher incomes.
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Incentives for Better Performance
1 30 Over the years a tendency has been developing in different sectors and segments of
population to seek, in the name of development, more and more resources on as
concessional terms as possible, usually unrelated to performance. While special facilities
and concessions from the State in favour of more backward regions and more
disadvantaged people will need to be continued, the time has come to devise a package of
incentives to stimulate better performance all round. Such a package should ensure
enforcement of stricter efficiency norms in various production activities, in the wor g
official and non-official agencies and in the manner in which scarce resources are utilised.
Release of resources for various development programmes should oe linked to the
efficiency and timeliness with which these are implemented and not based simply on an
outlay approved in the Five-year or Annual Plan. All official agencies should be made
accountable for the efficient and purposeful utilisation of the resources made available to
them.
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Savings and Investment
1 31 Evenwithar^ucedICORof4.153heinv^^
GDP imply the attainment of domesuc ™
the current level of
five years of the Eighth Plan This is
saving implies a marginal rate ol
slightly higher than 2!% This order ■of t pa
improvement m
savings of about 33%. A higher savings
containi unproductive expenditure and
public savings. This has to be achie e Y
effective compliance. This needs to
expanding tax revenues throng
't®r c° burden particularly on those sections of the
1.32 Subsidies need io be
Much greater internal and extra budgeta^ r
for. Further intprocemeoi tn the
public sector is called
.A enterprises including provision of
“ 'S'Xu. delay. The ehton.cally
force should receive full attention.
1.33
The private
h”'^™1,|n^uire^|l|ici« auned
account the likely export-import
1 34 The net capital inflow from abroad, taking into ratio within reasonable limits will
scenario and the necessity of
keeping
jhe debt-service
7.6%
of GDP.
The rate of investment on an average o\er t e
need to be kept at around
---- j ncty
Eighth Plan period is, therefore, proposed to be around 25%.
Public Sector Outlays
1.35 Over the five years of the Eighth Plan, aggregate investment atj^^ pnees could
ic’ato^Rs.MS A650.000 cr^s.
Of Rs.350,000 crores of which P“bl*c scc, is to be realised. Government
Rs. 300,000 crores. If this order of pubhc sector ot y
ints and keeping
policies will need to aim at raising the tax-GDP rat
j ^expenditure within prudent
dke growth in subsidies, interest obligations and non-plan expena
Qf
limits. Deficit financing will also need to be kept under check so
inflation around 5% per annum.
I
only on
1.36 'The Eighth Plan will need to evolve
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through
improved
efficiency
and
la^g
dependent
on
budget
support
and
process
public investment. Capital investmeri
esources This will apply to all enterprises,
come increasingly from internal generat
. ‘ , ld' lso be paid to the mobilisation of
particularly in the public sector G^ter tinen^
focus on the
1
Balance of Payments
1.37 The external environment is undergoing
becoming more interdependent with world trade g
g ■
International capital movements have assumed massive p.^p
from dead. Regional cooperation around the w
1>
industrialised countries have come to aapnre an ..nij^o.ia.it place
7
income,
pwtectiOnism is far
momentum. Newly
7
SMagass
manageable limits, and maintain the country s credit-worthiness.
1 38 Given the need to increase the competitive efficiency of the economy through impon
of technology and capital intensive inputs, the role of exports will becom^fye" mo^e
critical A significant step-up overpast trends in export growth would have to be achieved
for simultaneously meeting likely import requirements and containing foreign capital flows
A 12% annual growth rate of exports in volume would be necessa^. This would call for a
substantial increase in the domestic production of exportable goods and services. Thoug i
much of this increase in exports will originate in the manufacturing sector, service exports
and new agro-based products can contribute to a diversification of the export basket
Production of individual manufactured items may have to grow faster than the average
growth in manufacturing. The investments needed for this purpose will require a policy
regime which ensures that the relative profitability of export producuon and markeung is no
less than that for domestic sale.
1 39 Macro-economic policies affect investment in and domestic demand for exportable
goods. They also simultaneously serve as an instrument for controlling import demand.
Broader technology access policies will also be needed not only for improving the quality
and cost competitiveness of current and new export products, but also for restrainin
energy demand through energy efficient products. Infrastructure constraints affect the
production of both explrtables and import competing products. Equally important from the
export point of view are the quality and the price of infrastructure setvices. Special
provision may need to be made for the infrastructure and input needs of exporters on a
priority basis. General constraintsof this nature that are likely to affect exports will need to
be rectified.
1 40
While export promotion is very important, some restraint on the growth of
dissemination of technology for production of oilseeds and edible oils will be also
necessary to reduce imports.
date technology, market innovation and quickness of response will have to be adopted both
by exporters and the state.
Price Stability
1 42 Containment of increase in the general price level to not more than 5% pei~annUm
would be important for achieving the targeted GDP growth of 6% in the Eighth Plam A
rate of inflation higher than this level is likely to upset plan ’nvestmeoW^’ons
“
adverse effects on savings, particularly Government savings. Price stability and ettective
control of domestic demand are necessary from the point of view of achieving a hl8h^
export growth rate and moderating import growth. Price stability is even more important
necessary. Of particular important* would be the control of budget deficits and maintenance
of supplies of essential goods.
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Grow/? F’rofile
1.43 Corresponding to the growth target of 6% per annum in GDP. the pattern of
sectoral growth has t>een tentatively worked out as described m Tabk 2.
Table 2
, Sectoral Growth Profile for the Eightn Pian
Share in Value
Added (percentage)
Growth Rate in
Value Added
(percent per annum)
I
1
2
3
4
5
6
7
8
Agriculture
Mining
Maufacturing
Construction
Electricity
Transport
Communications
Services
1990-91
1981-82
1981-82
to
to
to
1987-88
1989-90*
1994-95
1989/90
1994/95
1.7
2.8
9.3
8.2
3.0
9.0
9.0
4.0
30.6
26.6
4.3
9.5
8.2
3.1
9.4
3.7
7.7
7.6
7.8
6.3
6.2
10.5
5.7
5.7
5.8
20.8
4.2
2.2
5.6
0.8
32.1
4.9
5.3
6.0
100.0
3.0
9.5
10.0
23.9
100.0
3.8
2.7
6.1
0.9
31.7
i
GDP
* baseden 1988/89 and 1989/90 estimates.
1.44 While the economy in general showed a steady growth during the eighties the
performance of agriculture has been uneven. A major task during the Eighth Plan w i v to
stabilise agricultural growth at a higher level. The largest contribution to higher grout in
the next phase will come from the manufacturing sector. The combined share of mining and
manufacturing will, under this growth profile, exceed the share of agneu ture in tie
domestic product for the first time.
Demographic Perspective
1 45 The Seventh Plan projected a population of 837 million by 1991 and 986 million
by the tum of the century. The recent Sample Registration System (SRS) data appear to
indicate that the population by the tum of the century might be significantly more than what
was projected earlier. The achievement of the target of a Net Reproduction Rate (
equivalent to 1 for the country as a whole by A.D. 2001-06 may be delayed.
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1.46 SRS data show that the Crude Birth Rate (CBR) which remained stagnant during
1981/85, declined a little in the next two years. Birthrateshave not shown a slowing
down which the reported progress in Couple Protection Rate (CPR) would imp y.
Acceptors of the more commonly-used terminal methods appear to have come large y n.
the low fertility range, i.e, from the older age groups. Irrespective of the success in the
family welfare programme the absolute number of children in the population wall continue
to increase. Expenditure on education, child health services etc., will have to increase even
more rapidly to allow backlogs to be cleared and quality to be upgraded.
I he rising
number of old persons in ihe population (both in absolute and in percentage terms)
require expanded arrangements in health care and social security. The pressure points of
population growth will shift from rural to urban areas, causing further strain on urban
services and facilities. Declining land/man ratio will pose problems in rural areas. I he
9
niCivd^e Hi iiic iKiuiuci ol persons t-..
V>1U dUU
piCShUiC Oil JOO
availabilty.
1.47 The demographic scenano now presents a clearly differentiated regional
perspective. While Gujarat, Maharashtra, Andhra Pradesh, Tamil Nadu, Kerala.
Punjab, Himachal Pradesh, Nagaland, Manipur and West Bengal might reach NRR = 1
as per the earlier target, Rajasthan, Uttar Pradesh, Bihar, Orissa,Haryana, Madhya
Pradesh, Jammu & Kashmir, Assam, Meghalaya and Tripura are likely to reach this after,
a significant lag. A sharper effort in family planning is thus called for in the lagging States.
Also, much greater efforts at reaching and influencing younger couples with high fertility
potential is called for.. The programmes aimed at popularising non-terminal methods,
increasing female education and employment, reducing infant mortality, extending mother
and child care, all of which influence decisions on family size, are in need of focused
attention.
Regional Disparities
1.48 Disparities among regions - between states and districts -in levels of income,
consumption and availability of basic services - have continued to characterise the
development process in the country. Recent evidence suggests that some backward states
have stepped up their growth rate. Yet the fact remains that alleviation of poverty has
tended to be sluggish in chronically poorer areas. Low agricultural productivity,
undeveloped infrastructure, industrial backwardness, low profile on social indicators like
health, education and status of women, all tend to coincide in such areas. A more effective
strategy aimed at faster overall development which at the same time ensures that the gulf
between regions is narrowed is important at the present stage in our development
endeavour.
1.49
The main components of regional strategy in the Eighth Plan would be:
(a) strengthening and building of infrastrucuture in the backward regions, more
specifically in poorer States and raising the level of productive skills among the local
population;
.
(b) a minimum needs package oriented towards geographical areas of greater deficiency,
with district rather than the State as the planning unit;
(c) adequate institutional set-up, especially cooperatives and community organisations;
(d) a fresh look at the resource base and the financing pattern for the development
programmes with a view to making available larger resources to benefit the more
backward areas; and
(e) improvement in general administration, implementation of land reforms and effective
measures for protection of the rights of vulnerable sections of society.
Minimum Needs
1.50 The Minimum Needs Programme (MNP) was introduced in the Fifth Five Year
Plan with the objective of establishing a network of basic services and facilities of social
consumption in all areas upto nationally accepted norms with particular concern to meet
the needs of those who cannot command them in the market. The minimum needs
identified for this programme are elementary education, adult education, rural health, rural
water supply and sanitation, rural roads, rural electrification, rural housing, PDS,
domestic cooking energy, environmental improvement of urban slums and nutrition-all
infrastructure for the poor.
1.51 Experience in implementing the programme so far brings out the need for a more
determined and systematic effort as also for a closer integration among the various
components of the programme. There is the further need for the integration of MNP with
other income generating and welfare programmes for the target groups. For example, the
Integrated Child Development Service(ICDS) would benefit distinctly from an integration
of various agencies involved in child nutrition and development, as also through a greater
involvement of beneficiaries and local leaders in monitoring performance. Similarly, closer
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integration of PDS with wage employment programmes requires attention Another
programme for harmonisation would Ik skill development programme with the MNP.
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1.52 The approach in the I:ighth Plan will he to view the MNP in the larger context of
human resource development that is focused on the needs of the vulnerable classes. 1 he
aim should be both to improve the quality of their life,and increase their pnxiuctivity. Such
an emphasis needs to be translated into appropriate field programmes. Improvement of
human resources should receive as much, it not more, attention in terms of allocation of
scarce resources as building up physical capital.
Technology
1.53 A step-up in growth requires that the process of technological upgradanon is given a
further momentum. Technology has to play a vital role in improving productivity,
conserving resources and protecting environment. Priority areas for the application of
S & T have, by now, been well identified. In agriculture, these include new techniques
to raise productivity in dryland farming, to improve efficiency in input (e.g. water,
fertilizer) use, to improve the quility of the milch herd and to restore the biomass
productivity of large tracts of land. In industry, greater use of new materials anc
electronics, ensuring energy efficiency as also modernisation of large segments o t e
capital goods industry should be areas of thrust. S & 3 use in human resource activities
like education, health, water supply, sanitation and nunrition also need to be enlarged.
However, in all these areas, besides technology per se, changes in organisation and in
systems of work w'ill be needed to generate the demand for and facilitate effective utilisation
of S & T.
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1.54 There arc already examples of indigenous world-class technological innovations in
chemicals, defence hardw'are, professional electronic systems and telecommunications.
Pockets of excellence have been built up in some frontier areas of science, viz., biology,
catalysis and super conductivity. Much of the small scale industry has obtained ns
technology from domestic sources. However, concerted efforts have to be made for a more
pervasive diffusion of technology, its fuller use in raising the efficiency of the production
system and developing the mechanisms to ensure absorption, adaptation and building up
further upon imported technology. R&D and production capabilities built up in the
economy, particularly in sectors such as fertilizers, steel, heavy engineering and machine
tools provide a sound base for encouraging further technological development in these and
related areas. Informatics and telematics need to be given a special push.
Decentralisation and Efficiency
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1.55 Multi-level planning has been an important goal ot national policy. 1 he State
planning machinery and the district level planning institutions need to be systematically
strengthened. If this goal is to be achieved, the Panchayati Rai and a revitalised
Nagarpalika system offer the best hope for grass-roots level development with equity.
Through a process of wide-ranging consultations a package ot measures for reviltahsing
local self-governing bodies in the country has been worked out. 1 he package recognizes
the need for a certain degree of operational flexibility from State to State in keeping with
local traditions and requirements. However, it includes a core set covering the basic
structure of the Panchayati Raj institutions. This covers their composition, reservation of
seats for weaker sections (SC/ST and women), mandated periodic elections, integration of
economic planning with social justice and implementation responsibilities as also the
resource base for undertaking these activities.
1.56
are:
The important objectives of the on-going exercise in the context of the Eighth Plan
(a) involvement of local comnramities and their representatives, particularly ot the weaker
sections in development planning and implementation;
(b) making development responsive to fell needs at the grass roots;
(c) integrated development of rural and urban areas; and
1 1
(d) strengthening democracy at the gras< roots.
In addition to the formally constituted local bodies in this structure, cooperative
organisations and voluntary agencies will also be involved in the furtherance of the above
objectives.
1.57 The crux of a decentralised democratic society is a high degree of self-governance at
various levels. Development actions in the name of planning over the years appear to have
eroded local self-help capacities. Plan schemes and programmes have made communities
abjectly dependent on Government for almost everything, including simple activities like
maintenance of hand pumps.
1.58 A multiplicity of schemes in the field, each operating at a separate level and
implemented independent of each other by line departments, has led to a planning system
that is sub-optimal. Improving the data base, establishment of feed-back channels and
social audit, involvement of voluntary agencies and organisations of beneficiaries are
important facets of improved programme implementation. The entire effort will benefit
from being made more open, participative and accountable.
1.59 The development strategy in the Eighth Plan will be based on the recognition of
linkages that exist and that need to be strengthened between rural and urban areas,
supporting and complementing each other. The forward and backward linkages have to be
identified and built into the development programmes. The suggested Constitutional
Amendments will facilitate the process of planning from below through Panchayats and
Nagaroalikas. The provision for setting up a District Planning Committee with peoples’
representatives of both rural and urban bodies to assume responsibility for coordinated
development at the district level is an initiative in this direction.
1.60 In keeping with the renewed accent on decentralisation, attempts have already been
made to initiate more differentiated planning and policies for regions and sub-regions of the
country. Agricultural planning in the Eighth Plan will proceed on the basis of agro-climatic
zones and sub-zones. Planning for industrial dispersal will be taken up on the basis of
growth centres. Planning for the delivery of social services will be related to localised
indicators of education, health and status of women. Rural energy planning at district /
block levels already initiated will be expanded. Poverty alleviation programmes will be
refashioned with a larger role in both planning and implementation to local institutions.
These will be the signals of the Government’s commitment to decentralise planning and
execution. A major thrust will be given to district level planning in the Eighth Plan.
1.61 Related to decentralisation is the question of systems efficiency in the entire area of
plan implementation and public administration. This concern touches all sectors and is
crucial not only for achieving targeted macro-economic parameters in a statistical sense, but
for making a visible difference to the every day life of the common man. A staning point
for organisational reform should be the bureaucracy itself which over the years has
proliferated massively and whose delivery capabilities fall well short of the expeciations of
the people whom it is meant to serve.
1.62 Attention needs to be focused on the scope and cost of the Government apparatus.
The scope should be related in terms of priority to maintenance of conditions which
promote orderly growth, to provision of basic infrastructural facilities and instruments
required for development, to protect the environment and to safeguard the interests of the
vulnerable sections. Its cost must be significantly brought down through improved norms
of efficiency and effectiveness. Greater reliance must be placed on peoples' own
resourcefulness, innovativeness and initiative.
1.63 Simultaneously, improvements in work procedures within Government,
institutions, systems and in the attitude of the bureaucracy need to be pursued on a
sustained basis. The work culture in Government offices should change from one of
exercising authority and controls to one of stimulant to growth and responsiveness to
peoples’ needs.
1 2
CHAPTER II
RURAL DEVELOPMENT, POVERTY ALLEVIATION AND EMPLOYMENT
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Basic Approach
2.1
A multi-pronged attack on poverty and unemployment will continue to be the major
thrust of planning. Rural development will be based on the complementarity of overaL
development of rural areas and the upliftment of the poor. As emphasised in the Mid-term
Review of the Seventh Plan, there is need for a closer and more purposive integration
between the special anti-poverty programmes and the development strategy. Planning anc
implementation of developmental activities in agriculture, rural industries, forestry, water
supply social welfare, education, health, nutrition and family welfare wil be undertaken in
a coordinated manner through comprehensive planning at decentralised evels Conscious
efforts will be made to ensure that sectoral programmes focus particularly on those living
below the poverty line. At the same time, anti-poverty and employment generation
programmes will be expanded and strengthened with the aim of achieving the target <st
further reducing the poverty level in the population by 10% by the end of the Eighth Pla..
and to a marginal level by AD 2000.
2.2
Poverty is unevenly distributed across the regions. There are well identifiable
pockets of concentration of poverty. About 80% of the total population below the poverty
line is accounted for by eight States. These eight States together also account for 70% of the
unemployed in the country. The areas of poveny concentration are mostly the areas v.ii
deficiencies in infrastructure and under-developed productive systems in agriculture,
industry and other sectors. As such, the objective of poverty alleviation calls for ar.
explicit focus in the Plan strategy in general and tn the anti-poverty and minimum neeo
programmes in particular, on regions and areas with heavy concentration of the poor.
23
During the Eighth Plan, in addition to generally strengthening the productive
systems and diversifying the rural economy, the poverty alleviation programmes will be
implemented combining the following four elements :
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(a) increasing the asset-holding of the rural poor so that they are able to take up sel>
employment ventures through programmes like the Integrated Rural Development
Programme (IRDP) and land reforms;
(b) augmenting the incomes of the poor by providing them short term wage
employment;
.
.
,
(c) taking up special areas programmes in ecologically disadvantaged areas; and
(d) improving the access of the poor to basic services through the MNP and effective
monitoring through the Twenty Point Programme (TPP).
Self - Employment Programmes
24
The programmes for asset and skill acquisition for taking up
ventures under the IRDP, Development of Women and Children m Rural Areas (DWCRA)
and Training of Rural Youth for Self-Employment (TRYSEM) would be expanded and
strengthened. They will be more closely related with the skills, enterprise and other
endowments of the poor households, on the one hand and the demand supply ana
infrastructural characteristics of the area, on the other. Greater attention will, thereto
have to be paid to selection of viable schemes and to meet the raw material requirements
and marketing needs of the beneficiaries. Further, emphasis will be placed on group
ventures and collective action so as to protect the beneficiaries from any adverse operation
of market forces.
2.5
From a predominance of the primary sector in self-employment ventures in the
initial years of the IRDP, a shift is descernible in recent years towards ternary sector
activities. There is need to promote a shift towards secondary sector in these prvgramn>es
for which necessary changes in fiscal and industrial policies and support mechanism
through rural growth centres will l>e evolved.
1 3
2.6
For the poor to derive maximum benefit from direct investments, the relevant
programmes need to be supplemented by and dovetailed into schemes for giving house
sites to the homeless and assistance for cultivation of surplus land secured through stncter
enforcement of ceiling laws. The requirements of the "hard core; poor of about 24
million households in rural India will need to be met on a priority basis.
Jawahar Rozgar Yojana
27
The special wage employment programmes in the Eighth Plan will aim‘at assurance
of employment to the poor. Their coverage will be vastly expanded with the ultimate
objective of assuring that all poor households seeking employment have access to these
programmes. A more comprehensive coverage and elimination of leakages will be ensured
by decentralisation of their formulation and implementation. A significant step in this
direction has already been taken in the introduction of Jawahar Rozgar Yo]ana (JRY) in the
birth centenary year of Pandit Jawaharlal Nehru, which subsumes the existing wage
employment programmes. National Rural Employment Programme(NREP), Rural
Landless Employment Guarantee Programme(RLEGP) as well as the employment scheme
for backward districts announced in the 1989-90 budget. It aims at providing employment
to at least one member of each poor rural family, numbering about 44 million, for fifty to a
hundred days a year.
28
JRY will be further expanded to ensure employment to the members of the poor
families to the extent of their unemployment and underemployment. Sp^aJ intergrated
projects for meeting the employment needs of the nomadic tribes will also be formu ated
coordination with other programmes. In keeping with the commitment to decentralisation
and people's participation. Panchayati Raj institutions would be closely involved in the
formulation and implementation of employment programmes. It would be ensured thr°ugh
suitable legislative provisions that the poor, the disadvantaged SCs and STs, womer.and
landless are adequately represented in these institutions so that these groups den e
benefits. The legislative safeguards would be reinforced by needed organisational and
financial provisions with this end in view.
29
It will be ensured that employment programmes, besides meeting the primary aim of
augmenting the incomes of the poor, also contribute to the augmentation of productive
capacities in rural areas. Accordingly, these programmes would be harmonised with those
of building infrastructure and community assets. In areas where infrastructure facilities like
roads are deficient, use of employment programmes for such activmes, would' continue.
Renovation of important community works, such as irrigation tanks would be encouraged.
A major programme to orient employment schemes for protecting and sustaining th
productivity of natural resources, particularly of land and water would be initiated^ Land
shaping, water harvesting, drainage, field channels, reclamauon of degraded soils would all
receive attention in this context.
2 10 The aim would be to encourage formulation of local-level plans - district-wise,
block-wise and village-wise - foremployment generation in agriculture, animal husbandry’
and infrastructure, with a view to matching employment and labour supply to the extent
possible. Given the structure and other problems related to land ownership, it would be
essential to evolve suitable institutional mechanisms to implement the land-based schemes^
For this purpose, specific legislative and administrative measures need to be devised wi h
emphasis oTthe nseof Panchavati Rai institutions and voluntary organisations. A_?cheme
for encouraging and assisting individual fanners to cany out improvements in their lands
within an approved land and watershed management strategy, and using employment
generation programmes, wherever appropriate for this purpose, will be considered.
Requirements of small and marginal farmeis would receive pnonty attenuon.
2 11 The MNP which aims at improving the quality of life and providing infrastructural
support to the programme of poverty alleviation will be continued and its focus sharpened
towards the target group.
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2.12 For ensuring the benefits of development activities and programmes to the poor, the
proposed decentralised and panicipatory process will be strengthened by promoting
organisations of the poor. The rural poor will be helped to organise themselves through
village based voluntary organisations and social action groups in order to make them
conscious of their rights and bargaining power. Such organisations and beneficiary groups
will be fostered as a part of public policy. Greater access to information and openness in
decision making that affect the poor would be important ingredients of this policy.
Land Reforms
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2.13 Redistributive land reforms is a vital instrument for promoting equity and for
increasing productivity in agriculture. Efforts in this direction will need to go hand in hand
with the revitalisation of Panchayati Raj institutions and revamping of cooperative societies
so that the weaker sections are in a position to influence and benefit from development
programmes. Land reforms need to be viewed also from the ecological standpoint in terms
of access to and proper long-term utilisation of scarce soil and water resources.
2.14 As regards specific tasks, the following need attention : Oral and informal tenancies
with cultivating possession have increased despite the legislation passed by States,
providing for security of tenure to the tenants. Efforts will have to be made to bring the
oral and informal tenants on record through open enquiries at the village level and with the
assistance of Panchayats, voluntary bodies and the active involvement of people. A stricter
definition of personal cultivation would require consideration. Proper implementation of
various provisions relating to ceilings particularly in areas that have been brought under
irrigation with public investment, reviewing the exemptions provided for various categories
in the law and definition of ’family' would need to be taken on hand. Efforts for
consolidation of land holdings would have to be continued and special steps taken to protect
the rights of the tenants and share croppers. In tribal areas, management of land should
increasingly become the responsibility of local communities. Correct and up-to-date land
records are an essential pre-condition for effective implementation of land reforms. A
major plan scheme will now be taken up to strengthen the revenue machinery and to update
land records with the help of S & T inputs.
Employment Strategy
2.15 The solution to a large part of the poveny problem lies in the creation ot
employment opportunities. Acceleration of the pace of employment generation will,
therefore, form a central element in the development strategy and programmes. The
problem is envisaged to be tackled on the basis of a three-pronged strategy:
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i) accelerated employment oriented growth of the economy with a view to generating
increasingly larger opportunities for stable wage-employment in the long run;
ii) promotion of sustainable self-employment opportunities, particularly in rural areas, by
expanding infrastructure and support systems, on the one hand and by more effective
implementation of special programmes, like IRDP, as indicated earlier, on the other,
and
iii) expansion of short term wage employment, through J RY, as indicated earlier, to enable
the poor households to augment their incomes till they benefit from (i) and (ii).
2.16 Given the low levels of average productivity and incomes and the incidence of
poverty, employment generation has to be at a certain minimum level of productivity to
ensure that such employment helps to overcome poveny. This underlines the
complementarity of growth and employment. A broad assessment of the backlog of
unemployment and likely additions to the labour force suggests that the rate of
employment growth would have to be around 3 % per annum during thel990’s in order to
achieve the goal of employment for all by AD 2000. Although not easy to achieve, it is
vital for realising the basic goals set out earlier. The targeted rate of GDP growth
envisaged for the Eighth Plan would have to be combined with a restructuring of
incremental investments and output in favour of areas, sectors and production processes
with ample employment potential. The main elements of this restructuring would be: a
1 5
geographically diversified rapid growth of agriculture, expansion of rural non-farm sector,
small-scale centred industrial growth, and higher priority to construction and social services
sectors.
Sectoral Development and Employment
2.17 Substantial scope for deriving higher and more stable growth in agricultural output
with increased employment exists in large parts of the country where agriculture has been
stagnant or is growing at a slow pace. A strategy for accelerating agricultural growth in
these regions would have a substantial impact on the problems of unemployment and
poverty in rural areas. In the regions with a better developed agriculture, diversification
into non-food high value crops like vegetables and fruits, and the development of agro
processing industries provide significant scope for employment generation.
2.18 Diversification of the rural economy into non-agricultural activities, an already
observable trend in certain parts of the country, needs to be promoted through
appropriate policies. Promotion of activities having forward and backward linkages with
agriculture would be the obvious choice. Those using locally available skills and
catering to rural markets need to be consciously planned and promoted. Special attention
would have to be paid to the technological upgradation of many of these activities which
suffer from very low productivity levels, even though markets for their products exist. The
development of rural towns/growth centres with minimum necessary infrastructure
facilities would be taken up.
2.19 The employment potential of the manufacturing sector, despite a declining
grow± trend in the organised segment, is quite considerable, particularly in the small scale
sector. The small and village industry sector will need to be the centre-piece of industrial
growth from this point of view.
2.20 Construction is an important sector from the viewpoint of employment and basic
needs. It would be in line with the goal of universal provision of basic amenities and for
utilising the enormous employment potential that high priority is accorded to the
construction of infrastructure items like rural roads and schools, and also to undertaking a
major housing programme. Such opportunities for wage employment to unskilled or lowskilled workers should be explored as part of expanding urban infrastructure and basic
services.
Educated Unemployment, Skill Formation and Training
2.21 Unemployment among the educated forms a distinct category and will, therefore,
have to be specially tackled. Many of them do not possess the skills and inclination to take
up the jobs which agricultural and industrial growth may offer. They have, as far as
possible to be weaned away from seeking Government jobs. Manpower planning on
scientific lines and its integration with sectoral planning should facilitate a better match
between supply and demand of the educated and technically qualified. A higher rate of
industrial growth, particularly in the small scale sector should generate jobs to suit those
with secondary and technical education. Entrepreneurship development programmes and
availability of risk capital will need to be enlarged for this purpose. Self-employment
ventures in the secondary and tertiary sectors would require to be promoted. The
possibilities of absorbing educated unemployed on a large scale in social sectors like
education and health in rural areas, somewhat along the lines of national service would
have to be explored.
2.22 Wide ranging training and skill upgradation facilities would need to be created in
line with the requirements of structural and technological changes taking place in the
economy. Apart from expanding the network of ITI type institutions, new institutional
forms would have to be devised to avoid the short term mismatch between demands and
supplies of skills. Special programme will also be developed for the retraining and
redeployment of workers who might be found surplus in the process of modernisation and
technological changes in the industrial sector.
1 6
Employment of Women and other Disadvantaged Groups
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2.23 The employment of women will receive a special thrust as their participation in
productive activities is also an effective way of raising their status in society. The
employability of women would be enhanced by improving their access to training
facilities. Their access to productive resources, such as land and inputs like credit need to
be expanded so as to enable them to directly and visibly contribute to the socio-economic
development of their households. Programmes would be started to organise women
workers and to promote their participation in trade unions as well as for disseminating
relevant information on labour and welfare laws among them.
2.24 While support systems for production units in the unorganised sector would have to
be strengthened to increase their productivity and employment levels, ways should
simultaneously be devised to ensure that the workers get a fair share in productivity gains
in terms of higher and rising wages. In fact, there is a need to have a close look at the
structure of labour compensation both in the organised and unorganised sectors and to
evolve a productivity oriented and equitable wages policy.
2.25 Speedy rehabilitation of bonded labour and effective implementation of the child
labour policy, to move towards the goals of eradication of bonded and child labour, would
be vigorously pursued.
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CHAPTER III
AGRICULTURE, IRRIGATION AND ALLIED ACTIVITIES
Perspective
3.1
The farmer will continue to be the focus of attention in the Eighth Plan both as the
mainspring and as the beneficiary of development. The aim would be to build on successes
already achieved. The objectives in the Eighth Plan are to ensure more balanced regrontu
growth and an accelerated development for the sector as a whole. The Plan will have a
dually and cropwise diversified strategy. An annual 4% growth.of agricultural outpu is
considered feasible and necessary for accelerated growth of the economy The vast
potential of agricultural development has to be harnessed for faster sectoral growth to
sustain the tempo of overall economic development
taSS’sc^^-mngTe^
officials of concerned States, farmers, representatives of financial institutions and volunta..
organisations.
3 3
The initial work of the Agro-Climatic Regional Planning Teams suggest a major
focus on the following kinds of schemes: (a) a target of 41.6 million-hectares for ultegrat^
watershed development; (b) a target of over 4 million hectares for restoration of tanx
irri cation* (c) a target of the preparation of operational water delivery system for .0 per cent
Kq
to beTonsidered for taegntdon by the district and State Plaanmg aqdtenues. tn
their medium and long terms plans.
This new approach to planning will facilitate formulation of strategies and
programmes which will take into account local needs and endowments.
aoDroach to aSSl^al planning The aim has been to concentrate on identifiable sources
XowtbanKSoS of exLing potential by ensuring effective delivery of inputs,
efficient use of water and improved credit and research back-up.
Draught^oKiaPro^am™ (DPAP) etc. would be rattoual.sed and tntegut.ed w.th
zonal and sub-zonal development strategies.
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Strategy
3.6
The straregy for agncnllural development will aim al ^hreving^
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regions. The main elements of this strategy will include.
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assured remunerative prices and other economic incentives to farmers including
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^w^ad growth to maximise income and employment generation
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benefits from major and medium proj
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lti__urp^se projects, phased
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” gn,u”<i wa,'r
XiEiX"«Pxt»sionP?»dP.„put supply infrastructure for the
^”st"
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Targets
The principal agncnlinnd gnrw* u^ers for rhe Eighlh Plan will te as Mows:
3.7
Table 3
Growth Targets for Agriculture
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(Gross output)
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Crop Production
of which
(a) Foodgrains
(b) Non-Foodgrains
Animal Husbandry
of which
Fisheries
Agricultural Sector (Total)
3.3
4.5
5.0
7.0
4.0*
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♦This corresponds to 3% growth rate in terms of value added.
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Development and Management of Land and Water Resources
3.8
The production of foodgrains at the national level is affected by wide fluctuations in
the rainfed areas. It is necessary to insulate production in the dryland from the vagaries o
monsoon as much as possible. Ground water and watershed development need to be
accorded high priority in this context. A number of experiments are presently underway^
The cost of works in contour bunding, check dams, land levelling and digging of
percolation tanks and soil conservation is often lower when undertaken by voluntary
agencies than in Government projects. These groups lay considerable emphasis on raising
contribution from the beneficiaries. Involvement of these agencies on a larger scale needs
to be promoted. The integration of rural development schemes with watershed
development schemes would have to be actively pursued.
3.9
The technical aspects of soil conservation, land levelling, micro water harvesting
techniques and appropriate organic cover for degraded land for nutrient replenishment
proper crop cycles or fodder/forestry cover, are by now well known The centra^
question is to deUver these technologies to the field and integrate them wi h a lonj^term
MS'S SS'SS' *
tSerated8
Also such programmes are at present incorporated in a number of different schemes in
the Central and State Plans. Many of these schemes overlap. It is important that they are
integrated with a major focus on delivery of end results, i.e., improved land management
and land development with participation of the local community.
3.10 The existing wage-employment programme provides for payment to labour required
for land development and in the initial phases of crop production, horticulture and
production of fodder or other tree crops which strengthen the land, in respect of SC/S I
farmers below the poverty line. This facility has been recently extended to marginal
farmers below the poverty line, and would continue and be expanded.
Irrigation
3 11 The addition to irrigation utilization in the Seventh Plan will be 10.9 million
hectares (3.9 million hectares from major-medium and 7.0 million hectares from minor
irrigation) over a base irrigation potential of 80.4 million hectares. The irrigation target o
the Eighth Plan is expected to be 17.0 miltion hectares for completion of physical works for
water delivery. Out of this, 15.0 million hectares would be the target for utilisation in
the terminal year.
3 12 The main emphasis will be on the completion of the on-going projects.
Mechanisms would need to be devised to provide adequate resources through arger
Central sector involvement where necessary for proper planning and timely completio
of large irrigation and flood control projects.
3 13 The SEPP has already operationalised the concept that irrigation targets are not to be
conceived in terms of "potential created", but in terms of the number of waterings to be
delivered at the field in each crop. Identification on an annual basis of the area to which
water is to be delivered and working backwards to investment and action plans will have to
become the general practice.
3 14 In respect of the Command Area Development (CAD) projects it is important to
identify a single agency responsible for delivering water from the headworks of the canal
systems to the field. More emphasis has to be laid on the construction of field channels
and of warabandi or alternate operation systems of canals. High pnonty needs to be
given to modernisation of existing systems. Targets will be conceived in terns ot number
of waterings, and irrigation efficiencies increased from the existing levels of around 35 to
40 % in many systems to around 60%. Improved water regulatory systems and aqui er
modelled to allow for investmenr of conjunctive use for ground and surface water are
other avenues for improvement. Assessment of the achievement of the CAD programme
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would be done in terms of incremental agricultural production rather than benefited area as
is being done currently.
3.15 The Ganga Hood Control Commission and the Brahmaputra Hood Control Board
have submitted master plans and detailed reports for some Projects, Both the plam
emnhasise the need for catchment area treatment. The concerned flood control agcnci
wiU have to prepare and execute detailed catchment area plans, ^temanc studic^”^
morphology and river mechanics would need to be imuated to evolve long tern>
for flood control. Apart from the Central and State schemes m this field, other 1*™J™
water harvesting projects related to wasteland development, forestry, special employme
and area development have to be integrated with catchment area treatment.
3 16 The high priority given to ground water development in recent years will be
continued. It is expected that a considerable part of the ground water potential o e
country will be utilised in the next decade or so. Particular attention will be paid to
saline areas, coastal belts subject to salinity ingress and other special problem areas to
promote optimum conjunctive use. Ground water markets are devdoping in some pans of
die country. State intervention in the interest of equity and ecology would be necessary.
3.17
Tank irrigation needs to be revived and
strengthened in diyland
areas
sh“ Id monitor and suppiemem lands a. the local lead for reclam.non and
maintenance of such tanks and water bodies.
3.18 The systems and structures of water rates and the built-in subsidies need to be
reviewed with a view to promoting grater equity and better project viability.
Fisheries
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3 19 At present only about one third of the estimated fish potential from marine and
mland sources is being exploited. The growth rate of the fisheries sector will stePP^uP
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3 20 Fishery development in the exclusive economic zone and prawn culture in
brackish water areas are the main thrust areas in the marine sector. The emphasis shou
be on improving access of fishermen to markets rather than on large expensrre
programmes. Emphasis in this sector would be on (i) exploitation of deep^sea ; ry
resources by introducing adequate number of deep sea vessels, (u) i
water fish culture, to facilitate semi-intensive methods of culturing prawns covenng arg
brackish water areas; (iii) liberalised leasing policy of inland ^ater areas, and (iv)larg
scale fish production from reservoirs. Employment and rural development sche
should be used for maintaining and creating fish ponds and encouraging aqua-cu
*
on-going fishermen welfare schemes will need to be expanded to cover more fishermen
villages.
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Animal Husbandry and Dairying
3.21 The dairying sector has a regionally differentiated performance. The Ea^^n
region is rich in physical endowments for dairy development but the achievements have n
been significant. The sector has high income and employment gcncn^on
•
such, a major stress in planning for the animal husbandry sector would be on developing
regionally oriented programmes.
3 22 For raising milk production, cross breeding of nondescript cattle in potential areas
need to be intensified. Quality seeds of high yielding and mulu-cut fodders/grasscs in
adequate quantities need to be made available through proper institutional channels. Feed
and breeding programmes will have to be developed with viability considerations ir> nmut
Cooperative and other programmes which work only with structured subsidies will need to
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COMMUNITY HZAITH CEU.
«/L(First Floor)3i:. Marks rtoad
BANGA1.03E-S60C01
be pushed through. Dairies are at present running with low capacities and high cost.v
These will have to be rationalised. Slaughter houses and carcass Huhsat?J"n^n5Crobu“
need to be improved at least in big cities. The poultry sector is showing c^cc °£r^us;
growth. Policies to strengthen it through suitable incentives must be developed. Incentives
for exports in this sector will need consideration.
Agricultural Research
3 23 A major issue in the large agricultural research system of the country is to give it
‘ die desirable degree of autonomy. There is need to selectively strengthen research and
teaching institutions in terms of equipment, documentation travel fa^ es
international coUaboration. Research strategies will need to be related to the targets of the
agricultural plan and agro-climatic planning.
3 24 New frontier research areas like bio-technology would be given imporunce.
Research is already focused on areas, such as production of new crop vnneues nitrogen
fixation and tissue culture techniques.
Efforts in these areas would be further
strengthened by improvement in infrastructural facilities,
selected
organisation. Available research has application potential in crops idee se ec ed
oilseeds poutoes,sugarcane and some fruits. An acuon programme would be formulated
for each such crop. Other frontier reseach areas which need attention include embryo
transfer technology for the dairy sector and use of plastics in agriculture.
3 25 High priority will be given to the development of a seed plan in the Eigh± Plan.
Each State must involve its agricultural universities, ICAR institutes and "^onaj
agencies, State seed corporations and private sector units in developing, a proper s
plan which would cover the horticulture and fodder sectors as well. Distnbution systems
should be operationalized.
Agro-Processing and Marketing
3.26 A more diversified, dispersed and technologically efficient agro-processing and
marketing system would be an important part of the agricultural strategy keeping
vie^
their potential for employment generation, exports and higher incomes to
producers. The agro-processing sector will support the land use and cropping pane
changes designed in agro-climatic planning strategy. Effective strategies have to be
developed for cold storages. Established cooperatives will be encouraged to absorb the
latest production and marketing strategies.
Cooperation and Credit
3.27 The non-overdue cover scheme will be implemented so that the cooperative credit
line is unclogged and cooperative agencies are eligible for refinance. The banking system
will need to implement the targets of the credit plans with adequate incentives fo
achievements and penalties for failure. Priority will be given to loans for land
development, water harvesting and utilization devices. Procedures and methods must be
streamlined for credit delivery to peasants who do not have clear title to land.
3 28 Suitable measures would be taken to reduce regional imbalances in the
developmnent of cooperatives. Systematic efforts would be made for building up trained
manpower and for providing infrastructural facilities like marketing and extension services
so as to accelerate the development of cooperative movement in the eastern states and hilly
and tribal areas.
3.29 Efforts for increasing the membership of women in existing dauy cooperatives,
and training and other provisions to enable women to take up managerial responsibilucs
will be given priority. Cooperative training institutions should provide special facilities
for women.
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Policies for
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the Agriculture Sector
3 30 Pricing strategi rs in respect of both inputs and outputs would be adjusted with the
obi-ctive of improving net incomes of fanners, keeping in view the broad notional goals set
outfn Chapter I. Assistance from Government by way of subs.d.es etc would be onen ed
with a view to providing better incentives to producers, particularly among wcak.r
sections.
3.31
Policies which encourage lipgradation, based on the best available techniques and
build up of long-term domestic capabilities, need to be devised for other activities like
* : use of newer materials. New
nutrient deliveries, agro-mechanical technologies and the
and
land
materials that can optimise the use of scarce water c—r and also augment agricultural
growth and employment require to be introduced.
training policies will be implemented.
3 33 Generally agricultural programmes are subject to inadequate evaluation and
monitoring Multiplicity of agencies in many cases has created more confusion. I
is,therefore, necessary that the agricultural planning machinery fixes targets and sets up
modem monitoring and evaluation mechanisms providing for timely feed-back at the
relevant executive decision making levels. Monitoring of such schemes should be done
by using non-govemment agencies also and with the involvement of the fanners concerned.
3 34 Quality consciousness, cost reduction, long range sustainability and better
utilisation of 'by-products will constitute other areas of policy concern and programme
thrusts.
Institutional Aspects
also of land reform. Redistribution of land to those who till it and secunty of tenure are.
as noted earlier, important preconditions both for better equity and higher productivity.
23
CHAPTER IV
INDUSTRIAL DEVELOPMENT
4.1
The industrial sector is in the midst of a transformation. In recent years the
industrial policy environment has undergone a significant change. The full impact is yet to
be felt,but the first signs are encouraging. The availability of industrial raw materials,
intermediates and capital goods has expanded substantially. Infrastructural constraints to
rapid industrial expansion have eased considerably. Industrial investment has been
buoyant. The triggering of competitive impulses, as a spur to efficiency, is generating a
new discipline and culture in Indian industry. A new generation of entrepreneurs is
emerging. The focus of competition is slowly shifting from manoeuvring around controls
and procedures to establishing market share. Internal competition, coupled with trade
liberalisation in selective measure, has initiated the process of making Indian industry cost,
quality and productivity conscious.
4.2
The growth record of the Indian industrial economy in the Seventh Plan has been
impressive. Between 1985/86 and 1988/89, for example, the manufacturing sector
registered an average annual growth rate of around 8%. The expansion of the industrial
base has been of a wide-ranging nature, just as growth has been more broad-based than
before. New pockets of entrepreneurial activity have emerged. In 1971, there were only
35 places in the country where employment in non-household manufacturing was in excess
of 25000. By the mid-1980s, this number had exceeded 55. Certain segments of Indian
engineering, electronics and chemical industry are becoming internationally competitive.
For several consumer products, the share of rural households in total purchases is higher
than the share of urban households. Employment in the non-household, non-factory
sector has grown rapidly, reflecting a structural shift in the pattern of industrialisation;
the share of non-household and non-factory industries in manufacturing employment has
risen from 25% in 1961 to 42% in 1981.
Competition and Modernisation
4.3
The approach in the Eighth Plan will be to consolidate the gains made so far.
Policies for removal of regulations that are dysfunctional in their impact on production,
costs and quality would be further persued. Indian industry has to become world-class in
quality,productivity,cost and technology. It has to be able to withstand the rigours of
global competition both in the country and outside.Being self-reliant and becoming
world-class are trends that can reinforce each other mutually under an appropriate policy
framework.The objective of policy is to make Indian industry internationally competitive
so that it can compete w'ith imports at significantly reduced levels of tariff protection.
4.4
A policy imperative in the Eighth Plan is to set in motion more effectively the
process of industrial restructuring that is an inevitable consequence of competition,
modernisation and technological transformation. Restructuring in the Indian context cannot
be left to market forces alone but demands both reactive and proactive planning. For nonviable sick industrial units, both in the private and public sectors, industrial adjustment
programmes w'ill need to be established. It is imponant to create stimuli for growth in
areas that will be affected by industrial restructunng. This demands active micro-level
planning and new’ institutions at the local level and policy instruments like the use of
workers’ cooperatives.
Public Enterprises
4.5
An imponant imperative is a specific, time-bound turnaround plan for public
enterprises, both the Central and State. A concrete plan for the technological rejuvenation
of key public enterprises, like for instance in the capital goods sector, has to be
formulated and implemented. A definite policy on standardisation and procurement is
essential, if technological upgjadation is to take place on the scale required.
Comprehensive plans for the modernisation of public sector steel plants have been drawn
up and their implementation is expected to commence in the Eighth Plan. More
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< vi^ii’CC thai suca r-/-j’-cnauon is n ; o:.c-sh<\
?VAncr nc’nL',;ccr!''*r?.te operations. Public enterprises should be eaa;..^
eniienieneuriaJ role and perfonn efficiently on the "enterprise” dimension, v/ircu w:
determine the extent to which they arc able to fulfil their ’’public” obligations, bccial
obligations are best discharged when enterprises are able to perform efficiently. Non
commercial obligations placed on public enterprises have to be made transparent and are
best met out of generated surpluses. Public enterprises have to continually push the
frontiers of technology and serve as the entry point for the acquisition of technologies
skills and expertise. Accountability of enterprise management to achieve specifiedI targets
agreed to in advance needs to be matched with desirable operational autonomy and mnc.y
decisions by tbe relevant departments of Government. The instrumentality of Meme-rand;
of Understanding for mutually spelling out the tasks and responsibilities should be further
refined for this purpose in the light of experience gained. A review of the existing portfolio
of public investments, owned by both the Central and State Governments might be
appropriate so that public enterprises concentrate their resources and capabilities on high
priority and technologically demanding areas. The public sector should focus on the
commanding heights of our changing economic structure.
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Capital Market
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4.6
An area of policy reform and initiative will be the capital market. The capital
market has grown significantly over the last few years. Presently the corporate sector is
raising.resources from the capital market in a single month what it used to raise in a whole
year in the seventies. But much more requires to be done. Healthy and orderly deve opment
of the capital market is of crucial importance for sustaining a high rate of industrial
investment and a faster growth of output. The volume of resources mobilised by the
capital market has to grow at a high rate, the chanelling of funds by the capital markc:
has to be dont in an efficient manner and the market itself has to become broa^-^ase^ in
terms of investors and institutions. There needs to be a deliberate thrust towards the
growth of equity culture and risk capital.Almost 65% of the funds raised by the corporate
sector is now from banks and financial institutions.Of the rest, there is a marked
dependence on debentures (almost 70%). This dependence is not very healthy in the long
run. The capital market and in particular the large number of development finance
institutions, have to play a more positive and promotional role to catalyse the growth of
new entrepreneurs, new technologies and new areas of production. Established large
enterprises should be encouraged to shift their dependence for finance from public sector
financing institutions to the capital market, thereby releasing more resources for new
enterprises and for small and medium units. The small and medium sector has been
technologically more dynamic than many large firms. Such firms in the small and medium
sector are important to social policy as much as to industrial policy. Venture capital
underpins the development of this segment of the industry.
Employment Generation
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4.7
An important policy focus will be on expanding the contribution of the industrial
sector to employment generation. While output and value-added growth rate have been
impressive over the past few years, the rate of new job creation has not kept pace with
the requirements. The structure of the industry will need to be such that productive
employment opportunities are created in substantial measure. The continued growth ot
industries with lower capital-output ratios like
electronics, computers, plastics,
informatics, software, gems and jewellery and agro-processing will create new jobs. A
special thrust will need to be given to the development of knowledge-based industries in
which India has a decided comparative advantage. Efficient and faster growth ol
employment also requires a systematic search for and change in polices which bias growth
towards higher capital intensity. Some of these needing reform concern policies that
reduce the cost of capital, laise the effective cost of labour and lead to excessive
protection which increases the profitability of using capital relative to labour.
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Village and Small Industries
**
Arising out of the employment imperative, a special policy and programme thrust
will be on small, village and rural industry. ITis segment of industry has yet to realise its
full potential because it still faces problems arising out of lack of easy access to credit,
marketing skills and technology. Areas like wool, sericulture, food processing, garment
making and leather processing can be expanded substantially. There are a plethora of
institutions to deal with the small and rural industrial sector. Their impact in catalysing
the technological transformation of the sector has to be broadened. There is some spatial
specialisation in these industries. A cluster approach to technology delivery can usefully be
adopted. In this way, modernisation of traditional industries in many cases will not only
have technological implications but can also be a channel'for the revival of small and
medium towns. The approach to fiscal and investment policy will need modification if
new technologies are to penetrate the small sector. A renewed emphasis has to be placed
on the development of sub-contracting and ancillarisation, for which appropriate
changes in the fiscal policy regime will need to be made. A massive effort at skill
formation and technological upgradation in rural areas and small towns, in artisan
households and small manufacturing units is needed. There are successful models of
technology and market support to small enterprises like, for instance, the materials,
brand and technology scheme that operates in the area of black and white I Vs. Such
approaches of centralised technology, marketing, standardisation and raw material
acquisition support for decentralised production activities could be considered for
adoption on a larger scale.
Dispersed Growth
w-
4.9
While the economic backwardness of a region cannot be viewed from
the
narrow angle of industrialisation alone, industrial growth has an important role toplay
in facilitating the diversification of regional and local economic structures. 1 his suggests
an appropriate policy-mix to spatially broad-base industrial expansion and accelerate the
process of industrial decentralisation. There has been some success in this regard.
Over the past few years some of the hitherto industrially backward states have attracted
considerable industrial investments. However, there are regions which would require
special focus for attracting investment resources. Growth centres in each state have been
identified and these will need to be fully provided with the necessary social, economic and
physical infrastructure quickly. Industrialisation perspectives have to be, for the most
part, related to local resource bases, instead of industries being "attracted to any region
without consideration of the resource, transport and environment cost. Modern
cybernetics and communications technologies are opening up new cost-effective frontiers
for decentralised production.
Mass Consumption goods
4.10
A revitalised capital goods industry and a vastly upgraded design engineering
capability will continue to be critical to India’s technological modernisation
programme. But this should not lead to the'neglect of the mass consumer goo<ls sector.
Articles of everyday use which arc relevant for the people to satisf y their aspirations, and
not merely their narrowly defined minimum needs have to be produced in sufficient
quantities. Technological inputs for the pnxiuction of incentive goods should Ik* enhanced
so that the common man has access to cheap, yet technologically modern and superior
quality products of daily use. In many items, India has the potential to emerge as a
global supplier. This will force a new technological culture on our industry' emailing fai
more emphasis on product design and marketing. There is some synergy between large
and small units. It is possible, for instance, to arrange for production by small units
and sale through franchise licensing. Such decentralised production w'ould also open up
new employment opportunities in rural areas and smaller towns.
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Exports and Technology
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4.11 'Fhe performance of Indian industry on the export front which was not very
encouraging earlier is recording high growth rates in the last four years. A number o<
policy initiatives have been taken to improve the profitability of exports and reduce
administrative hurdles to quick responses to global market needs. One hopeful sign is that
many industries are now exploring world markets. In many specific industries like
chemicals, software, medium-technology engineering products, two-wheelers, bicycles
and leather, India has the capacity to emerge as a supplier to world markets. Hrm-specihc
interventions will be needed to support and sustain the presence of Indian companies in
markets abroad in these industries. In select industries India should emerge as a major
supplier of internationally sourced commodities. As part of this approach, foreign
investment would be encouraged without detriment to overall goals of self-reliance and
indigenous technological development.
4 12 Technological innovation and better management rather than mere investment has to
underpin the next phase of industrialisation in the country. Indian industry’s record
in the absorption and development of technology has in many respects been less man
satisfactory. Technological innovation has not been internalised in the enterprise and me
links between users and developers of technology have been weak. Sector-specific
technology policies will need to be developed.In some industries compeution will force
a new ° technological discipline, while in others like capital goods. Government
intervention in the form of procurement policies and standardisation programmes wni
b? needed. The base of consultancy has to be considerably strengthened.
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bureaucracy
•*.13 Stress will need to be put on rciorm of the development
with the formulation and
economic, scientific, technical and administrative - that deals
c---- .........
imolementation of industrial policy both in the Central and State Governments. »«nileit
regime of controls is streamlined to make it mere strategic, me orientation or the controlxe: o
needs to bo brought in tune with the need of a technologically dynamic age. ruso
will b: fuller integration of and consistency among licensing,riscal, u’.iL .nt.
i..’f?hno’.ogy yoilciesTat the sectoral level.
Government reforms its institutional structures to mnke them more
••
: •~d s’rowth-oriented tn outlook and operation, so also organ.satio.i-. r.2t.v.
i i the Indian corporate sector have to undergo a sea-change. Technology ha. ;.n imp....
frndameam'ly on the way work is organised and managed. Social and or;..: cation?..
'.ticns v.i.i in ii'.c enterprise or factor}' are central to the process c. techn.',.. .*ian
and detcrr.dne ultimate losses or gains in productivity. Indian industry has to'
-c re »
ti.anagcrial styles and work cultures that arc more participative and egalitarian,. '.c belie?
suited ■*? managing technology. This is particularly so m rega.d to labour relatk
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CH4V I ER V
URBAN DEVELOPMENT
Urbanisation Trends
s 2
The Eighth Plan approach to management of urban growth and urban
development is based on past experience as well as on the findings and recommendations
of the National Commission on Urbanisation (August, 1988). In formulating policies for
urban development it has to be noted that the shortcomings are both in the planning of
urban growth and in adequately providing for urban infrastructure and urban services.
rapid growth of urban population has led to deterioration in services and conditions of
urban existence. This failure can be attributed to many factors but the major one is the
paucity of resources raised by and devolving on local authorities.
5 3
Availability of housing is inadequate to meet fast growing requirements. Policies
intended to give access to urban land to the ordinary people require reappraisal wit
reference to empirical evidence.
54
The haphazard growth, increasing congestion in living quarters as well as in the
streets high degree of pollution, existence of slums, high land prices and deteriorating
urban ’services have led us to look with some disfavour fast urbanisation and in
particular the continuing growth of large cities. But it must be recognised that it would be
difficult for rural areas to generate adequate employment to support the growing population
in such a manner that poverty does not increase. Even under the most optimistic
assumptions in regard to a slowing down of over-all population growth and ^P^sioni o
gainful occupations in rural areas, continued urbanisation may be expected in the
foreseeable future. It is against this background that the entire pattern and scheme of
urbanisation have to be planned.
5 5
A major part of the increase in the urban population cannot be absorbed by the
metropolitan or large cities. Therefore, wider growth across the country must be facilitated
and induced.
5 6
One of the interesting features of urban growth in India is that the natural increase
in population of the existing urban centres and growth through migration are atom the
same, each accounting for approximately 40% of the increase. The balance is due to
reclassification of rural areas as urban. Natural increase, particularly in large cities, tend,
to remain within these cities whereas migration is from villages to towns and from towns to
laree cities Urban growth rates within the country vary considerably. Given the vanety ot
demographic situations, a blanket urbanisation strategy will not meet the emerging needs.
What is important is the realisation that urbanisation policies should not seek simplistic
solutions either to retain villagers in rural areas or restrain employment generation in
urban areas as ends in themselves. Job creation and infrastructure support at an
accelerated pace through sustained investment in viable urban centres is the key issue.
5.7
The rate of change in urban population has a striking implication for the rise in the
urban labour force. The net addition to the rural and urban labour force will be almos
comparable towaids the end of the decade. This calls for special attention to the problems
of urban employment, with focus on the rapid expansion of non-agncultural livelihood and
employment opportunities, assisted by the promotion of technical skills, and
establishment of labour intensive industrial and service units, particularly in the small
scale sector.
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agricukural and trade development and potential for industrial development. Satellite towns
near metropolitan and other large cities should be planned. Thus, Planning ™st “
influencing ±e spatial spread of urbamsanon, avoiding congestion and “"balanced
growth. Appropriate land use disciplines would need to be enforced. The ecological and
aesthetic character of cities and towns would need special attention.
59
In keeping with the above approach, a number of institutional modifications
have to be made to strengthen the procedures of urban development planning at
national. State and local levels. The key to the new approach 1S
interaction between physical and investment planning, and second, the preparauon ot
regional and sub-regional urban development plans to make the first Possible. The
institutional framework for undertaking this work should be a revitalised Nag^rpalika
system.
Land
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regulations on the subject wSl need to be suitably modified and supp emented by itaxation
measures to discourage land owners from keeping their land vacant, h.is also>necessary
to encourage other forms of land assembly, such as land exchange scheme, and layout
approval.
Infrastructure and Services
5 11
Cost-effective technologies should be made use of in areas like construction, water
supply, sanitation and transport. The protection of water sources is cnucal. This■‘"eludes
conservation and control of water drawal even from private sources. In.regard “
sanitation, considering the high cost of water bound sewerage system a comb‘"a“°" of
conventional and low cost sanitation measures will have to be pursued. For promoting
conservation and waste waterrecycling a suitable tariff system has to be devised.
5.12
Mass transport based on multi-modal options will have to be devised and taken up
for implementation in the metropolitan cities urgently. It is also necessary t a
management of transportation including allocation between different modes, management ot
routes, determination of fares and operational aspects are looked at in a coordinated
manner, preferably under a single authority.
5.13 The energy demands of urban areas have to be quantified separately. The planning
and pricing of energy supply can and should be used to influence activity ocation i y
planning and building regulations should be specifically geared to promote energy efficien
buildings.
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5 14 The recently formulated National Housing Policy seeks to increase the supply of
serviced land and low cost shelter. The conservation of existing housing stock is
regarded as an important element. The role of the State is more appropnately a facilitator
rather than a 'builder'. The establishment of the National Housing Bank under the Reserve
Bank of India, to mobilise savings, bring the scheduled banks into housing finance,
provide re-finance facilities and regulate the housing finance system in the county, is a
welcome step. The housing market has different segments and it is not feasible for the
Government to address itself to all these segments. The focus should be more selective to
benefit the low-income families. It is necessary to remove the existing constraints altcc"n?
private investment in housing A package for improving and expanding housing, in both
rural and urban areas, at a fester rate would have to be evolved and in this connecuon
necessary legislation would also be enacted.
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5.15 In urban areas the availability of land is already proving a major problem. With
faster growth in urban populadon, the problem will become acute in the coming years
Among other remedial steps, vertical use of land if undertaken in an orderly manner could
prove beneficial. This could result in economising on the land used for housing and other
structures. The policies in this regard need to be reviewed.
Urban Poverty
5.16 In the past, purposive action for poverty alleviation has been focused primarily on
rural poverty. The Seventh Plan represents the first conscious attempt to address the urban
poverty issue directly. It proposed a strategy to improve the access of urban poor to basic
amenities, such as safe dnnking water, sanitation, education and health care, provision of
gainful employment particularly for women and youth and stepping up the productivity and
increasing the earning of self-employed workers. While Sites and Services and
Environmental Improvement of Slums had been initiated earlier, special schemes such as
the Self-Employment Programme for the Urban Poor, Urban Basic Services, Urban
Community Development and schemes for Economically Weaker Sections and low income
schemes particularly for SCs etc., were either initiated or enlarged. The reach of such
efforts now needs to be vastly expanded through a well coordinated programme thrust.
5.17 Urban poverty is not merely a spill over of rural poverty. Employment programmes
started in rural areas might midgate but will not eliminate the demand for new jobs in urban
areas. Close to a hundred million people will migrate to urban areas over the next decade or
so which will have its impact on both urban employment and poverty. Rural and urban
development is, therefore, to be seen and addressed simultaneously as two aspects of a
single problem. A targeted programme for alleviating the urban unemployment problem
through for instance, apprentice and training schemes, provision of venture capital for self
employment and growth of the service sector will need to be formulated.
5.18 It is necessary to disaggregate the composition of the urban poor. One study
indicates that more than 60% of the urban poor are women and children. A significant
proportion of the urban poor are also members of SCs and STs or minorities. Such
disaggregation and better understanding of the urban poor will enable a multi faceted
strategy to be devised and implemented. Training of urban youth for employment, credit
support and technological assistance for micro enterprises, infrastructure development,
creation of public assets, upgradadon of shelter, access to services, extension of PDS and
family security programmes are illustrations of what need to be put together as a
comprehensive programme. It is to be recognised that the programmes cannot be left
only to those technically responsible for urban development but also will need the support
of local self-governing bodies and a wide spectrum of Government departments, agencies
and voluntary organisadons.
Financing
5.19 If urban development is to proceed fast enough to cope with the growth of urban
population and if municipal services arc to be provided even on a minimum scale, the
current and capital resources at the disposal of municipal bodies would have to be
augmented considerably. Municipal authorities would have to make considerably more
effort to raise own resources. The devolution of funds from the State Government to local
bodies must be systematised and expanded. An institutional mechanism, such as an
urban infrastructure finance corporation must be established which could make available
capital resources to urban local bodies on a commercial basis. The larger municipal bodies
could be allowed to raise their own bonds in the market. The proposed Amendments to the
Constitution address themselves to this issue and offer a structure and a mechanism for
augumenting resources for the municipal bodies.
5.20 The establishment of the National Bank for Agriculture and Rural Development has
provided much needed financial and technical support for expanding rural development
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activities. A similar institution to finance urban development programmes, particularly in
the area of urban employment might now be warranted.
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PanchavatiRai in the sense of revitalised local self-governing institutional system is
as much »S»n need as a rural requinrrent. The role of load ^'■I'onues ha
EeTXX’X
S&hich™
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ensurinc more responsive provision of urban services and of promoting a pattern o
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urban and municipal administrations.
5 22 One of the key lacunae in the current system which is sought to be rc™ov^^°“^
the proposed Constitutional Amendment is in regard to management at anything lower than
the citv^level For a local Government to be effective in the long run, it needs to be strong
the grassroots. Further, the coUection of user and other civic charges would be easierw£
an effective decentralised form of Government The strengthening of local authon
should also include an expanded programme of intermediate forms10 ’ ^,San^Secg^
to urban community development through a participatory process of planning, execuuon
Z"2g and equation, fhere might then be acloser connecnon betwee^
tangible works and resource raising, and people may be more willing to contribute to these
requirements.
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3 1
CHAPTER VI
HUMAN RESOURCE DEVELOPMENT
6 1
The crucial role of human resource in socio-economic development has been
universally acknowledged. The evidence is overwhelming that people, not machines, a e
the driving force behind economic growth. In operational terms, human ^source
development covers education, health and family welfare and nutnUon’ ^terl^ncem
would be synergistic.
(a) EDUCATION
62
In the field of education, the achievements made since the First Plan are impressive
in terms of number of institutions established, students enrolled and teachers employed at
all stages of education. There is, however, considerable backlog in terms of targeted
quantifies in elementary education and adult education. The dimensions of academic
quality and regional and social equity have remained rather weak. Secondary educauon has
expanded but only a small proportion of the students of higher secondary age group are
national requirements.
6.3
The National Policy on Education (NPE) 1986 was designed to counter these
deficiencies and to equip the country to face the challenges of the new century
ts
implementation started when the Seventh Plan was well under way. In order to achieve
NPE targets it would be necessary to mount a concerted drive commensurate with t e
magnitude of the tasks involved'. Substantial augmentation of financial resources
earmarked for this sector is necessary though that by itself would not be sufficient. In
particular, additional steps are called for adoption of innovative and low cost strategies,
raising of non-budgetary resources through involvement of the local community in the
provision of the facilities, and reorganisation of educational administration at district State
Lid Central levels. Not only would implementation of NPE place heavy demands on
financial, administrative and managerial resources but also on the skills of humyi and social
engineering. The rigidities and constraints rooted in the social mileu would need to be
tackled in an imaginative and committed manner, inter-alia, through mass mobilisation
campaigns and greater use of women's organisations and voluntary agencies.
Elementary Education
6.4
An unqualified thrust in the education sector would be on universahsation ot
elementary education. The strategy for the achievement of this goal would comprise:
comprehensive micro-planning exercises; school improvement programmes with child
centred approach; greater emphasis on retention of children and their scholastic
achievements; provision of comprehensive inputs - appointment of lady teachers,
attendance incentives etc. - to ensure girls' participation; and expansion and strengthening
of non-formal educational programmes for school drop-outs, working children and girls
who cannot attend schools. Innovation and experimentation will be encouraged and the
system of teacher education revitalised through National Council of Teacher Education and
District Institutes of Education and Training.
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Adult Education
6.5
Eradication of illiteracy among persons in 15-35 age-group through the Nauooa:
Literacy Mission would continue to receive high pnonty. Womens literacy woulc ce
placed at the core of the whole programme.
Secondary Education
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In the field of secondary education the emphasis will be on institutional
rationalisation through adoption of "school mapping techniques" and establishment of
"open" schools, revision of grant-in-aid codes so that voluntary organisations share a part
of funding, strengthening of science and mathematics curriculum^and extension of
computer literacy and studies, and of educational technology. The programme of
Navodava Vidvalavas will be implemented as part of the strategy of school improvement
programme".
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The question of vocationalisation of education has to be considered in the broader
perspective of establishing beneficial linkages between the "school" and the worldrot
work" For this purpose there has to be coordination between programmes ot skill
formation and training through Ills, vocationalisation of higher secondary education and
the tertiary technical education represented by polytechnics.
Higher Education
6.8
With a view to ensuring a balanced development of higher education, a three-fold
strategy needs to be adopted, namely, avoid unplanned expansion, improve quality and
mobilise non-budgetary resources. A strengthening of the open university structure may be
desirable. While the opening of new colleges in backward/rural areas may be unavoidable,
the selective expansion needs to be coupled with rationalisation of existing colleges.
Promotion of excellence would be attempted through modernisation of curricula provision
of equipment, orientation of faculty and conferment of autonomy on selected colleges.
Major thrust will be on technical education related to emerging pattern of skill requirements
in various growth sectors of the economy.
Higher Science and Technology Education
6.9
Concern has been expressed about the shortage of talented manpower in most areas
of advanced science and technology. Special steps need to be taken to improve the teaching
of science and technology subjects at under-graduate level, including institution ot
incentives for young talented students to go in for science and technology careers and to
embark on self-employment ventures. It is also necessary to strengthen linkages between
educational institutions and science and technology laboratories.
Technical and Management Education
6.10 Technical and management education needs significant upgradation and
modernisation. The establishment of the All India Council of Technical Education on a
statutory basis should facilitate proper planning and provide an impetus to modernisation o
educational facilities at various levels. Technical education institutions would be expected
to extend their clientele by substantially increasing the enrolment of women students and by
expansion of the coverage of non-formal programmes for inservice candidates. It would be
also necessary for them to prepare diploma and degree holders for self-employment
especially in small scale industries and other decentralised sectors. The scheme of
community polytechnics would be expanded. There should be greater linkage with
industry, business and commerce in the matter of curriculum and funding of these
institutions.
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Management
Ail
Tn school education, there has to be decentralisation of administration througii
iXSiXy for policy makrng,. nan*!,.
’Xa," ““
needs to be reorganised for effective implementation of NPE with special reterence to
backward areas.
Youth
youth needs to be mobilised for the tasks of socioJ
------- NSS/NDC would be
The activities of Nehru Yyva Kendras, which
Je expected to cover all districts, will be strengthened for mobilisation of■* non-student
Youth Policy recently placed before Parhament, should serve as
a a basis for
more concrete programmes for future development.
b) HEALTH, FAMILY WELFARE AND NUTRITION
Health
6 13 Since the attainment of Independence, considerable progress has been made in
strengthening the health services, resulting in improvement of the health status of the
peopFe. Small pox has been eradicated. Infant mortality has declined fro
p
thousand live births in 1951 to 95 today. Death rate has declined from 27 4 ° 1°^
thousand population. Life expectancy at birth has increased from 31 years in 1947 to 58.6
years in later eighties.
6 14 There is a vast rural health infrastructure, consisting of over 110,000 sub-centres,
16 500 primary health centres and 1,500 community health centres. This is impressive
quantitadvely^However, the quality of services and credibility of health institutions need
improvement.
6 15 Greater emphasis is required to enhance the managerial and supervisory skills of
medical and health functionaries. It would be ensured that jobs with heavy pubhc: health
managerial responsibilties are manned by properly trained community health e*P^ ,
would need strengthening of the network of training institutes for public health and
epidemiology. Training and motivation at all levels and continuous "1°nltor^g
evaluation are important tools for improving performance. Effective steps need1 to Ibe
taken to ensure full utilisation of the infrastructure ot institutions and personnel availab e
by provision of complementary inputs. Emphasis will be focused on optim.sation of the
quality of services and increasing their out-reach.
6 16 The efficacy of health services would be limited if they are not integrated with other
health related services and activities like nutrition, safe drinking water, housing,^^atiio
information and communications. For better inter-sectoral coordination and integration at
the policy and implementation levels, initiatives will have to be taken. In particular, closer
links have to be forged between the ICDS and health programmes.
6 17 A major lacuna in the health and family welfare services has been lack of active
community participation. Local self-governing bodies, non-Governmental organisations
and voluntary agencies need to play a more active role in implemenung health programmes
effectively Some States have initiated action in this area with positive results.
Infrastructure and referral facilities need to be strengthened in backward areas.
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6.1 8
National programmes for the control containment and eradication of cominiinicarlc
diseases have registered notable successes. However, some of them suffer from
managerial deficiencies. A critical review of on-going national programmes is called for a *
ensure their effectiveness. Acute respiratory infection, the major child killer, and AIDS
will have to be given high priority for control and containment. For K_ala Azar and
Japanese Encephalitis, specific control action with a regional focus is required.
Availability of essential drugs and drugs for national health programmesand vaccines for
immunisation programmes, based on modern cost-effective technologies, has to be
ensured. Quality control and standardisation of drugs and vaccines call for special attention.
6.19 Non-communicable diseases particularly cancer, cardio-vascular diseases,
diabetes, hypertension, menial disorder, dental diseases pose serious threat to the health
and well-being of the people. Comprehensive programmes for their control and
containment are being evolved. Special emphasis needs to be given to the early detection
and prevention of these diseases.
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6.20 Health services research related to the common health problems would have to be
given top priority in the revised strategy. Stress should be on problem-based research tor
evolvine cost-effective intervention technology suited to our requirements and toi
solving the problems faced by the health care delivery' system.
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6.21
There is a large number of practitioners of Indian System of Medicine and
Homeopathy in the country. This vast resource would be mobilised for strengthening the
national health programmes. Much higher priority would be accorded to their
development as an integral pan of comprehensive health care.
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6.22 The reorientation of medical education to make it problem centred and community
based calls for much greater attention. Health manpower planning should get better
attention. Epidemiological infrastructure has to be built up through the help ot medical
colleges and public health institutes.
Family Welfare
6.23
One of the crucial development problems is the continued high growth rate oi
population. The population of India doubled between the time of Independence and the
1981 Census. At the present rate of growth, the population may again double os er the
next 35 years or so.
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6.24
Population control with emphasis on family welfare has been an integral part ot
planning in India from the beginning. The Eighth Plan would endeavour to bring down
the population growth rate to 1.8% -1.9% per annum by 1994-95.
6.25
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With this end in view, the following steps would be taken:
(a) 'The Family Welfare Programme (FWP) would be made multi-sectoral whereby all
related sectors would be called upon to undertake population control as an ob active
of their own programmes. I hough sterilisation would continue to be »m inq oitant
means of couple protection, spacing methods like Intra-uterine Device. Oral
Contraceptives and Oral Pills would be popularised more widely. The marketing
network for ensuring this would Ik adequately strengthened.
(b) Greater decentralisation both in planning and implementation would be required,
with more active involvement of local authorities and voluntary agencies. I he
weak performing districts/areas have been identified for more purposive area
specific action. A^pilot project in 50 selected weak performing districts on integrated
population control measures including family planning. Maternal and C hild Health
(MCH), Nutrition, ICDS, female education, female employment and income
generating programmes in a comprehensive package is envisaged.
(c) 1 he programme would be monitored eltecnvcly at the district and Primary Health
Centres (PHC) levels for identifying Ixntlenecks and initiating timely corrective action.
(d) I-’mphasis should be on improving the quality and credibility ot services
A closer involvment of voluntary agciKi--.^ w in t>c given t uU oacKmg m vai iou.s aspects
of FWP.
(f) The Eighth Plan would continue to work for universal immunisation of infants and
pregnant mothers. For better maternal and child health, child survival/devlopment
and safe motherhood programmes would need to be suitably augmented and
expanded.
(g) Infonnation, education and communication activities would be stepped up. A multi
media-use strategy is called for. The use of electronic media, like TV and radio would
be extended to spread the message of the two-child norm. Software production needs
much greater effort directed towards child survival, safe motherhood, immunization,
’ raising the age at marriage and status of women.
(h) Emphasis would be given to adequate supply of various types of vaccines,
condoms, intra-uterine device, polio and measles vaccine, oral pills, etc. These are
presently being imported on a large scale . Efforts will be made to produce them
indigenously.
(i) At present a large proportion of the total Plan under FWP is used for meeting the
expenditure on committed liabilities. Ways have to be found so as to ensure that more
funds would be available for fresh initiatives. *
(j) The entire package of incentives and awards need to be revised and restructured on
the following lines:
(i) introduction of community based incentives/awards rather than individual cash
incentives; and
(ii) incentives/awards may be considered not only on the basis ot performance in
family planning programme but also on the basis of performance of package of
health and developmental activities relevant to fertility decline like MCH,
immunization, female literacy, age at marriage and nutrition.
(c)
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Nut ri t ion
6.26 Health policy objectives relating to decline in mortality and morbidity and
population policy objectives relating to fertility decline will not be met unless the
problem of malnutrition is addressed effectively. The basic factor underlying protein
calorie malnutrition is calorie deficiency in the dietaries of poor income groups. Thus,
it is important to augment food production in the poor regions of the country, provide
entitlements to the vulnerable groups including the aged and organise an effective PDS for
supply of essential commodities to them. Some States have demonstrated that this is
administratively feasible. A rural PDS combined with massive income-generating
programmes in fhe poverty pockets is an essential prerequisite for improving the nutritional
status of the disadvantaged groups. The use of employment programmes to improve the
nutritional status by giving a pan of wages in foodgrains must be continued.
6.27
Simple technologies for the control of nutritional blindness have been devised and
are being implemented Through the PHCs. The coverage of children with vitamin A dose
prophylaxis is quite impressive but its actual impact on reducing the incidence appears
modest. This needs careful evaluation. Systematic monitoring has to be made an
integral part of the control programme.
6.28
Iron deficiency anemia is a problem of women in their reproductive age and ot
children. This has an impact on birth weight and contributes substantially to high infant
mortality rates. Improvements in MCH delivery, involving increased coverage with
elemental iron and folic acid will be necessary. Experiments regarding tonification ot salt
with iron to combat anaemia have been successful. Production and distribution on a large
scale needs to be undenaken. The scheme for the fortification of milk with vitamin ’A' has
achieved cood progress. These efforts need to be coordinated and expanded. Similarls .
managerial and technical shoncomings in the goitre control programme need to be identified
and removed.
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6.29 Among the various nutrition programmes, the ICDS is emerging as the most
extensive national programme related to child development with a major nutrition
component. Effective functional linkages between the personnel engaged in the ICDS
programmes at the village and health workers is particularly important. The ICDS
programme, adequately strengthened and supported, can contribute significantly to the
improvement of the nutritional status of mothers and children. There is scope for
increasing coverage of children below 3 years, improving training of flpg^nwfldl workers,
better supportive supervision and closer integration of the ICDS with other sectors, both
at the policy and implementation level.
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6.30 Supplementary feeding programmes are in vogue in many parts of the country.
The Special Nutrition Programme (SNP) provides supplementary food to the children in
the age group 0-6 years and to expectant and nursing mothers. A coverage of 20 million
beneficiaries has been achieved. This programme needs to be implemented more
vigorously and more cost effectively through the ICDS infrastructure. The SNP must, as
its original objectives spell out, concentrate on tribal, backward and drought-prone areas
and urban slums.
6.31 Mid-day meal schemes arc being implemented in certain Slates like Kerala, Gujarat,
Tamil Nadu and Maharashtra. This has achieved a coverage of 18.7 million children as
against the school going population of 90 million children. There is prima facie evidence
of this programme contributing to better nutritional status and school retention. 1 he
importance of community involvement and women’s groups to enhance the effectiveness
of nutritional programmes needs to be emphasised.
(c) WATER SUPPLY AND SANITATION
6.32 It is expected that all problem villages, except about 3500, would have been
covered with a source of clean drinking water at the time of commencement ot the
Eighth Plan. This will reduce the incidence of intestinal diseases such asdiahorrea. It is
further expected that guineaworm would have been almost eradicated and commercial
technologies for the control of excess fluorosis, excess brackishness and excess iron
introduced on a large scale.
6.33 The National Drinking Water Mission’s focus on water quality testing, scientific
source finding, water conservation, use of water harvesting structures, and on
computerised methods for MIS will continue. The main emphasis will need to be on
encouraging the panchayats and local level organisations to be responsible for the
maintenance of assets (like hand pumps). Efforts have to continue to cover all problem
villages and assure sustained access to potable water at acceptable minimum norms to
socially disadvantaged sections in rural communities. Areas where water sources have
depleted through natural process have to be taken up for special attention.
6.34 A concerted national campaign is required to tackle the special problem of urban
water supply and sanitation on the lines adopted for rural water supply. Industrial and
commercial users often consume a good part of the water supply in cities and should be
made to pay economic charges for the water they consume. For economically weaker
sections, standposts should be provided at strategic locations for free water supply. Along
the lines of the Ganga Action Plan, an action plan is needed for identifying the amount of
water that could be treated, recycled and used in the larger cities.
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6.35 The requirement of water for drinking purposes as a proportion of total water
availability is quite modest. However, drinking water scarcity is an endemic feature in
many parts of the country. Legislation to control over-exploitation of groundwater is
needed to enforce better discipline on water conservation and use. Drinking water needs
of human beings and animals, as indicated in the National Water Policy, should be the First
charge on any available water. Technologies like those relating to desalination, recyling,
drip irrigation, water treatment and peoples’ movements like the Pani Panchayai in Pune
district must be adopted on a large scale to manage demand and to promote equitable
distribution of water.
37
6.36 In rural areas the concept of total sanitation which includes disposal of waste
water, night-soil and solid waste needs to be propagated. A number of voluntary
organisations have devised and introduced low-cost sanitation technologies on a limited
scale. These efforts would need to be expanded. Motivation, health education and
communication will be crucial components of the rural sanitation programme.
Infrastructure like PHCs, Anganwadis and schools could provide a useful channel for
building social awareness and increasing acceptability. The greater use of women's
organisations will also help.
6.37 Programmes to provide Class I cities with sewerage and sewerage treatment
facilities will be taken up. In the fringe areas of these cities, community toilets have to
be provided. Class II to Class VI cities have to be provided with low cost sanitation
facilities.
(d) DEVELOPMENT OF VULNERABLE GROUPS
Women and Child Development
6.38 The Seventh Plan was a watershed in planning for women's development, an issue
that lacked explicit and directed focus previously. Twenty seven beneficiary-oriented
programmes were identified for women. The NPE recognises the role of education and
literacy in improving the socio-economic status of women. The national literacy mission
and the Programme for Education for Women’s Equality are oriented to increasing female
literacy and promoting the status of women. Under the MCH programme, special effort is
being made to improve the health profile of women. Media activities have been taken up
to propagate the benefits of delayed motherhood, better spacing of births and family
planning. Targeted nutrition programmes have been launched. A National Perspective
Plan on Women’s Development has suggested various measures to enhance the social,
economic, legal and political status of women. A National Commission on SelfEmployed Women has made detailed suggestions for improving the lot of women in the
unorganised sector.
6.39 The Eighth Plan will have to build on this and operationalise programmes suggested
for women's emancipation. A package of services would be created for convergence of
schemes, such as DWCRA, ICDS, adult education, health care etc. These services are to
be coordinated and monitored involving the respective Zila Parishad$/Nagarpalika$. At
State and Central levels, the implementation of women's programmes are to be looked after
by cells set up for the purpose in the concerned Ministries/Departments and documented in
their Annual Reports. Necessary measures will be adopted to develop positive attitude of
society towards women's development and to set normative standards for equal status of
men and women.
6.40 A massive programme would be initiated for educating women about their legal
rights, judicial process, social problems and available facilities and services. Legal literacy
would be spread at all levels. Besides, para-legal training would be given to social
workers and voluntary agencies. A number of social legislations like Dowry Prohibition
Act and Suppression of Immoral Traffic in Women Act are in existence to safeguard the
interests of women. Steps will be taken to strengthen the existing set up for effective
enforcement of these legislations.
6.41 A major thrust will be on developing women’s potential for participation in national
development through education, particularly female literacy, skill development and income
generation activities. This will pave the way for the desired economic independence of
women and improve the quality of their life and of their families. Greater involvement
of financial institutions and cooperatives would be important in mobilising resources for
the purpose.
6.42 Women from low socio-economic groups, by and large, suffer from several ante
natal and post-natal complications. Efforts would be made to develop for their benefit an
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integrated package of services like immunization, referral services ;
nutrition and health and nutrition educauon, m .closcfcoordl"atl<?" Besses spacing of
It would also be necessary to extend knowledge of reproductive processes, p
g
births and optimum age for mairiage and child birth.
gisassEgaRs
will have to be refixed so as to suit the convenience of the working women.
identified and special quota of seats fixed for them
u
In ^t^n2orS JouM be
“ X'n engagc<i in
agriculture. Organisations of women's cooperauves would receive attentio .
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6 45 The Accelerated Rural Water Supply Programme and the MNP are of SPC£.12’
significance to rural women. These
nf&a Awas
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forest lands will preferably be allotted to womens groups, parucuiany to oi oi
women. Women benefic"
ri"<fTihufion In the dpirv cooperative and
implementation machinery for land reforms and redistnbuuom In the.dau?^P^™
property of the male head or joint property is required.
through formal and non-formal channels, would receive top pnonty and implementation
would be monitored on a localised basis.
facilitate reduction in overall infant mortality levels.
6 48
For the age group of 6-11 years, the emphasis will be on the retention, particularly
and working children.
6.49 Institutional services for the abandoned, destitute and delinquent children would be
up-graded to conform to the required minimum basic standards. Vocational training
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imparted to children would need to be modernised and diversified so as to enable them to
get employment/self-employment when they leave the institutions.
Scheduled Castes and Scheduled Tribes
6.50 The strategies of Special Component Plans (SCP) and Tribal Sub-Plans (TSP) for
the development of SCs and STs have resulted in earmarking a certain proportion of Annual
Plan outlays for SCs and STs, though the degree of adherence to the guidelines for this
purpose varies among the States. Overall, the impact of the strategies is beginning to be
felt. There is need for taking stock and charting out new directions for them during the
next decade.
6.51 Nearly 80 per cent of SCs are concentrated in eight States. The bulk (84% of SCs
and 94% of STs) reside in rural areas and of these, around 90% arc dependent on
agriculture. Around two-thirds of the SC workers, and half of the ST workers in rural
areas are agricultural labourers and the remaining are mostly marginal land-holders.
6.52 A small proportion of the SC & ST populations (12 to 13%) are engaged in
traditional industries such as leather work, handicarfts especially of bamboo, reeds and
cane, handloom weaving and fishing and’unclean occupations like flaying and tanning of
hides and civic sanitation work. The base of SCs and STs in modem skills is weak and
needs strengthening and diversification on a priority basis.
6.53 A large proportion of the SC/ST population in rural areas and a part of the
population in the urban areas live below the poverty line. The thrust of the anti-poverty
programmes during the Eighth Plan will have to be towards the amelioration of this
segment of the population. A larger percentage of the outlays under the poverty
alleviation programmes will need to be earmarked for the SCP and TSP. Safeguards need
to be built in so that the outlays for the TSP/SCP are not allowed to be reduced in the
course of implementation of various programmes.
6 54 Schemes under agriculture and allied sectors will have to be given priority for
inclusion under the SCP and TSP. In particular, schemes for provision of minor
irrigation (dug wells and tubewells, both community and private), land improvement,
conservation of soil and water resources, forestry, animal husbandry and dairying
apart from agricultural crop production will have to be given special emphasis. The
provision of inputs will have to be devised as a package, i.e., irrigation as well as land
improvement and on-farm development and supply of kits. Moreover, forward and
backward linkages are often missing in the case of SCs and STs on account of dieir low
social status and isolation, and organising these through cooperatives and other institutional
mechanisms is especially important. Schemes for share capital loans and margin money
loans at concessional rates for SC/ST members already exist but the funding for these
will have to be substantially stepped up.
6.55 The drop-out rate in schools is high and enrolment rate low, especially among Si's
and the most underprivileged among SCs. A major deficiency is the lack ot schools
within easy access. Residential or ashram type of schools which have been identified as
particularly relevant for education of girls and for the tribals in general have to be opened
in greater number. School systems shall have to be flexible and innovative.
6.56 In various occupational groups, the problems of scavengers are particularly of a
grave nature requiring priority treatment. Special thrust will accordingly be given to the
eradication of scavenging and to the rehabilitation of scavengers through a time-bound
programme incorporating a package of legal, social and economic inputs. Low-cost
technology, now available needs io be adopted on a large scale.
6.57 Among the scheduled tribes, certain groups at food-gathering and preagricultural levels of technology, living in remote areas have been identified for special
assistance under the TSP approach. These 74 groups number about 13 lakh persons.
Schemes for their development will be continued and strengthened.
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6.58 Planning for the improvement of SC/ST population tends to be largely a
centralised compartmentalised exercise with each Department of the State Government
making allocations for SCP & TSP out of its existing programmes. In keeping wuh
the move for revitalisation of local self-governing institutions, devolution of planning and
developmental functions for SCs and STs, is important.
6 59 It is the Government's policy to preserve secular traditions and promote national
integration. Effective enforcement and implementation of safeguards provided for religious
and linguistic minorities in the Constitution, in the Central and State laws and in
Governmental policies and schemes formulated from time to time, are intended towards
achieving these objectives. As a part of the 15-Point Programme for the Welfare of
Minorities various schemes are being implemented by States. These effons would have
to be strengthened wherever felt necessary, after assessing their effectiveness.
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CHAPTER VII
INFRASTRUCTURE DEVELOPMENT
7 1
Investment requirements for infrastructure development are high because of the twin
requirements of coping with the problem of creating extra capacity and replacement of
overaged assets at the same time. During the Seventh Plan special attention was paid to
investment and improvements in this sector and the infrastructure constraints have eased
significantlv. The requirements for further expansion and improvements in the context of
the Eighth Plan are indicated in following paragraphs. Given the imperatives of the
resource situation, it would be necessary to explore avenues which would result in
additional flow of resources for investment in selected infrastructure development activities
without reducing the social responsibility of the State in respect of vital areas and those that
provide access to the underprivileged sections.
(a)
ENERGY
7.2
The attainment of a higher growth path and improved quality of life aimed in the
Eighth Plan will depend on our ability to meet higher demand for energy. The terminal year
oHhe Seventh Plan is expected to achieve 34 million tonnes of cnide oil, 210 million
tonnes of coal and 273 billion kwh. of power production and new generation capacity of
21600 MW - close to the Mid-Term Appraisal targets. The relatively higher outlay in this
sector has, by and large, justified itself. It will be necessary to maintain and increase this
tempo and remove the weaknesses apparent in this sector.
Energy Planning
7.3
A major change in the Eighth Plan would be to enlarge the scope of energy
planning to include all sources, forms and uses of energy in the perspective of a longer time
horizon? Primary resources of energy are limited and the time taken in the planning and
execution of projects in this sector is considerable. It will be also necessary to take a
systematic view from the exploration and exploitation of primary sources, through their
conversion into energy products, their transportation to consumption points and the
consumption pattern itself -- in order to avoid mismatches.
7 4
In preparation for this change, comprehensive in-depth studies of commercial
energv systems were undertaken in close collaboration with the production agencies and
experts, using massive mathematical modelling exercises. This has provided a muchneeded objeefive and independent tool to determine the long range marginal cost of the
various alternative modes of supply of energy to the economy and to work out optimum
combinations to meet the long term demands, within the parameters of reserves of
primary sources and technological options. The findings indicate the need and extent o
exploration effort necessary for augmenting the exploitable reserves of coal and oil
field/basin-wise. They also show priorities tor rapid additions to peaking capability,
mainlv through open and topping cycle gas turbines and pump storage. 1 he norms
necessarv to be attained for production, transportation as well as consumption ot energy
products in the different sectors, have also been worked out. These will be put together as
a long range Perspective Plan and Policy.
7.5
It follows that the pricing policy for commercial energy products has to be reviewed
to reflect the relative costs of different modes and torms to the economy it an optimum
long range strategy is to lx.* pursued. Such a study has been initiated.
7.6
Based on an overall growth rate of 69; per annum, tentative estimates of generation,
and consumption requirements during the I-.ighth Plan are given in Annex II.
7.7
Reduction in the intensity of energy use by all users must receive high priority as
there is ample scope for this‘without impairing production. Il would be difficult to meet
and sustain the envisaged demand without a clear strategy of conservation, especially very
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large imports of petroleum. The conservation strategy to be followed will be basically in
three areas:
(a) augmenting of exploitable primary sources of energy, namely, coal, oil, gas and
radio-active minerals through upgradation of potential reserves to recoverable
reserves and of fuelwood through effective plantation programmes;
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(b) minimising use of energy in the energy producing sectors themselves;
(c) minimising the use of energy per unit of output in all consuming sectors.
Concrete targets have to be set in each of these areas for individual units and
7.8
groups. A saving of 3080 MW of power is estimated to be possible. In line with the
overall strategy, the sectoral tasks are set out below.
Power
7.9
The emphasis in power planning will shift from quantity alone to quantity and
quality of supply. Mere addition to base load capacity without enhancing the peaking
capability will not eliminate the fluctuations and uncertainties which plague the country's
power systems. This objective is attainable in the long run with prospects of extensive use
of natural gas for power. Spinning reserves have also to be added for reliability, if
resources permit. The long term picture indicates that the eastern and western regions
need more hydel/gas peaking support, whereas the southern region, which has base load
shortage, needs more of thermal support - coal, lignite or nuclear.
7.10 Some of the new capacities to be started for the Eighth Plan have been delayed,
particularly the larger hydel projects. This will limit our ability to meet peaking shortages
and energy demands in certain regions although the overall energy requirements at the
national level could be met. The Eighth Plan targets will require a much higher rate of
completion of projects than in the Seventh Plan.The nuclear power programme has to be
kept on schedule. The time taken for synchronisation of a new unit to its full
commercial generation has to be drastically reduced. Investments will also be required to
complete and enlarge renovation and modernisation of units of early vintage.
7.11 The Seventh Plan showed steady improvement in plant availability and plant load
factors. This has to be improved further through better plant maintenance and management.
Forced outages and auxilliary consumptions have to be reduced.
7.12 The transmission network in the country has grown enormously from a
length of 2708 Ckt Km. in 1950 to over 3 million Ckt Km. This vast expansion has
created its own problems. The improvement of existing transmission and distribution
systemswill need as much attention and special investment as the installation of
new capacities. Provision of reactive compensation and improvement in the configuration
of the extended networks, largely due to rural electrification programmes, has to be
undertaken along with improvements in distribution facilities by way of transformers,
switchgears, meters, etc. in order to ensure greater system reliability.
7.13 Effective functioning of the regional load despatch systems will require systematic
removal of all barriers - technical, commercial and organisational - which prevent free
flow of power between the States and between regions. The problem of surplus power
and consequent backing down during off-peak hours has already come up. The
introduction of differential tariffs for off-peak and peak hour consumption, and time-of-theday metering will be necessary to avoid this wastage.
7.14 These tasks will call for a major improvement in the management and functioning
of the State Electricity Boards who own two-thirds of the total generating capacity. Most
of them face serious liquidity problems. Financial restructuring and other measures will
be necessary for the Boards to generate adequate internal resources.
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7.15 The magnitude of resource requirements may entail greater investment by the
Central sector in new capacities for generation while the State agencies remain responsible
for distribution. Under the circumstances, the present formulae for sharing and commercial
sale of power between the Central and State agencies may need a fresh look, including
rationalisation and harmonisation of present royalities, cesses and levies on primary
sources. Steps that would result in a net additionality of resources for the sector would be
considered within the overall milieu of investment and operational norms set by the
Government.
Oil & Natural Gas
7.16 A major task in this sector will be to add to the in place geological reserves of both
oil and gas, specially as production levels are raised. More structures will have to be
brought up to Category 1 and their development stepped up. Active exploration in
Category II and reconnaissance of Category III basins will have to be continued.
Exploration in selected deepwater areas will need to be extended.
7.17 Natural gas is emerging as a major source of energy, particularly for meeting the
peaking power needs. Exploration and exploitation of natural gas will have a high priority.
Flaring of associated gas will have to cease in all fields except where technically
unavoidable. The lag between downstream utilisation and production and transportation
of gas will have to be closed through a coordinated effort.
7.18 In view of the growing demand for middle distillates and light ends, new refinery
capacities already approved must be completed and further capacities on the basis of higher
domestic crude production have to be planned in advance. Distribution network and storage
capacities to match higher demands will have lobe arranged.
7.19 Improvements in the costs of oil exploration, production and refining will have to
continue, particularly in respect of cycle speeds for rigs and reduction of fuel and loss in
refining. It is also necessary that the proportion of foreign exchange expenditure, which is
high in this sector, is reduced through time and cost-effective indigenisation.
Coal
7.20 All round efficiency of this sector is crucial to the.success of the energy plan as coal
will remain the principal source of base load power. A total systems approach covering
exploration, development, mining, quality upgradation, transportation and utilisation is
necessary.
7.21 The long term strategy of coalfield development should be guided more by the
nature of available reserves and the destination cost of supply of coal in energy units than
by the convenience of existing infrastructure. This will need detailed blockwise geological
data to be systematically built up and evaluated.
7.22 New production technologies and methods which have been already identified must
be systematically adopted. Developmental work in slurry pipeline, gassification, use of
low grade coal as well as safely aspects will have to be pursued more purposefully.
7.23 Technical efficiency of equipment use and other production activities has to be
enhanced. Some broad techno-economic norms have emerged from the long run cost
analysis of each technology. It will Lx; necessary to lay down and monitor the attainment of
these norms. Labour productivity has to be increased and a long term plan tor
redeployment worked out wherever necessary.
7.24 The exploitation of primary sources and their conversion into energy products
invariably entail impact on the ecological and human environment. For mitigating the
adverse effects, advance planning expertise and investments have to be adequately
organised. Forest clearance and land acquisition will need expeditious attention.
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Rural Energy
7.25 A total energy planning concept as postulated earlier brings into its ambit non
commercial as well as non-conventional sources of energy on the supply side and the
subsistence needs of the vast rural population on the demand side. While the long tenn
strategy must be to replace the traditional and wasteful forms of energy by more efficient
and ecologically compatible forms, the task is formidable in view of its magnitude - 120
million households with meagre incomes spread over about 0.6 million villages. I he data
base is also inadequate.
7.26 Strategies to be followed for tackling the rural energy problem in the medium tenn
are outlined below:
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Specific programmes at district/block level, lor meeting the cooking needs ol the
rural population in a phased manner, will have to be introduced. I he process of
creating such planning capability through the Integrated Rural Energy Programme
will need to be integrated with more comprehensive district planning. S&l inputs
at the Icoal level would be important.
Dependence on fire wood, agricultural waste etc. will continue to a substantial
extent for a long time. Their use should be made more efficient through existing
programmes of bio-gas plants, smokeless chulahs and other innovations. The use
of solar cookers and solar thermal systems should be extended through the
development of cheaper and lighter models. The urban demand for fuel wood will
have to be relieved by others, such as LPG.
The supply of fuel wood and fodder has to be augmented more effectively
With the additional electrification of 1.1 lakh villages nearly two-thirds of our
villages.will be covered and many Slates will have achieved the first stage of
providing grid access to all the villages. Rural electrification should now enter the
next phase of load development in suitable cluster of villages for rural industries as
well as improvment of the rural network system, apart from the energisation of
pumpseis.
Non-Conventional & Renewable Energy Sources
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7.27 The potential application of such modes is not necessarily restricted to rural India
but a more strategic application has to be in rural areas because of the advantage of low unit
power capacity to match localised demands, freedom from pollution and low operating
costs claimed for these modes. The propagation of biogas plants and improved cookstoves
has been taken up as national programmes and they are gaining popularity. Solar thermal
systems, wind power and micro-hydel resources have potential; there is substantial scope
for technological improvements in and expansion of various renewable energy systems in
order to meet energy needs quickly and to preserve the environment. However, for bulk
power generationicapital cost per unit of energy is a constraint for extensive application
because of the need for heavy budgetary support and import content. R&D eftorts in neu
and renewable energy sources, started in the Seventh Plan, have to be intensified and
tailored to the indigenous industrial infrastructure and markets.
7.28 The use of agricultural waste and other biomass in more efficient forms has to be
developed quickly. Solar devices for post-harvest applications should be commercialised
soon. To the extent wind pumps can reliably supplement the requirement of electricity and
diesel, they should be installed.
7.29 The total potential for power generation by mini and micro hydel route is
considerable though not always economical. Large scale power generation projects using
solar, wind, tidal, ocean or geothermal energy which are all site-specific, need operational
experience in Indian ambience. Indian agencies must be associated from the start in design,
layout, engineering and manufacturing of equipment in all such projects and the object
should be to bring down the capital cost per unit to manageable levels.
4 5
(b)
TRANSPORT
7.30 The transport infrastructure has expanded manifold over the past plans both in terms
of spread and capacity. During the Seventh Plan period, the Railways would have carried
an additional freight of 80 million tonnes - an increase of the order achieved in the past in
nearly 25 years. Equally significant will be the record handling of 40 million tonnes of
traffic by the major ports. This vastly improved output across modes has greatly helped
to increase production in various sectors.
7.31
The overall transport demand during the Eighth Plan is expected to grow at an
annual rate of around 8 per cent. In the Railways the demand for freight traffic is placed at
430 milion tonnes in the terminal year. The demand for passenger traffic may need to be
kept at an annual growth rate of 3% . Road transpon would have to meet 9% growth in
freight traffic and 10% in passenger traffic. The growth in domestic air services is pegged
at 7%, while air cargo traffic will increase at about 10% per annum. Pons would be called
upon to handle around 200 milions tonnes of cargo in 1994-95.
Strategies
7.32 The thrust would be on the development of an integrated transport system
incorporating emerging technologies. Technological upgradation of the system, along
with higher productivity and operational efficiency would be necessary in order to
maximise the output with minimum energy and capital inputs. Revenues of the transpon
undertakings need to be improved. Existing overaged assets provide an opportunity to
introduce modern technologies through a replacement programme. Development of rural
roads would be accorded priority in order to open up backward areas and accelerating their
socio-economic development. Greater use would be made of coastal waters and inland
transport to relieve pressure on surface transport. Intermediate and minor ports would be
developed as an integral part of the transpon system. These pons would also emerge as
growth centres for regional developement. The potential offered by pipelines will need
better exploitation. The tempo of containerisation would be maintanied through related
development of inter-modal transpon linkages.
7.33 The traditional forms of transport, such as bullock cans and country boats would
continue to be on the scene in the foreseable future. However, the attempt should be to
upgrade the system as a whole in both the traditional and modern forms of transpon
through better design.
7.34 Freight transport has to receive priority. The completion of essential ongoing
projects which either improve the efficiency or add to the capacity of the system, would
also need to be given priority. Replacement and rehabilitation of assests would get
preference over net addition to capacity.
7.35 The transport sector is one of the major users of energy. Different modes of
transport use different forms of energy with varying efficiency and intensity. About 90%
of petroleum consumption being in this sector, improving fuel efficiency would be a major
concern of the Eighth Plan.
Resources
7.36 The investment requirements for the transpon sector in the Eighth Plan would be
heavy. The need for generation of internal resources becomes important in this
context. For pricing in the transport sector, cost of the service should be taken into
consideration. Pricing, taxation and subsidies should be used as instruments to achieve
the desired socio-economic objectives, develop a rational inter-modal mix, promote
efficiency in operations and generate adequate resources for growth.
7.37 Special attention would be given to development of manpower skills consistent
with emerging technologies and the need for deployment arising from rationalisation.
Training centres would be upgraded wrh this end in view.
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Urban Transport
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7 38 The burgeoning requirements of urban transport will call for special attennon in the
Eighth Plan. The solutions are generally expensive but it is necessary to search for low
cost solutions. Such solutions involve better traffic engineering and management
introduction of disincentives for the use of private motonsed transport and expansion ot
public transport and other forms of para transit. A unified transport authonty wilkbe
needed in each of the metropolitan towns to coordinate the development of diverse modes
of transport. Funding arrangements to provide project specific funds to metropolitan ernes
on matching basis ^11 need to be devised. While all these approaches are necessary it is
more important to alter the conditions generating the traffic. The introduction o
appropriate growth strategies could pave the way for a more manageable matrix of
transportation demand.
7 39 The public transportation system would need to be strengthened to meet the
transport needs of the community at affordable prices. This form of transport is also much
more energy efficient than personalised motor transport. However in recent past
personalised modes of transport have received an impetus. This trend needs to be reversed.
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7 40 A number of innovative forms of intermediary transport, such as modified three
wheeler units and mini buses have come up in rural areas. These forms of travel need to be
institutionalised both technologically and operationally.
Co-ordination of Policies
1
7.41 In the years to come it will be necessary to minimise transport coefficients
through inter-related policy measures involving, inter alia, rational land use planning,
balanced regional growth and adoption of technologies requiring minimal movement ot
materials. Location of industries, powerplants, refineries etc. must take into consideration
the transport cost to the economy.
7.42 There are certain planning and policy matters specific to each of the major modes
which are referred to below.
Shipping
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7.43 The aim will be on the building up of a modem and diversified fleet. In the process
overaged vessels would be phased out and additions would largely be on the basis of
progressively achieving self-sufficiency in the shipment of petroleum cargo, 50% of dry
bulk cargo and 40% of liner trade, besides meeting the demand of coastal traffic in full.
Indian shipping cannot be expected to function in isolation from the international shipping
environment. In keeping with practices in other countries, India will also have to adopt
suitable supportive measures, such as cargo support, buying on FOB, selling on GIF
terms by Government departments, priority berthing and strengthening of TRANSCHAR1
operations. Coastal shipping would be developed as a cost effective mode of transport.
Emphasis would be placed on development of ship repair facilities.
Ports
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7.44 In the development of ports emphasis would be on the modernisation of facilities
and matching them with emerging ship technologies. Capacity augmentation for coal, oil
and container traffic, upgradation of handling systems and provision of deeper draughts at
selected ports would be the essential ingredients of this overall plan. Development of ports
and fishing harbours would need to be integrated, whereever feasible to obtain optimum
advantage of infrastructure.
47
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Road Transport
7.45 The emphasis would be on improving the outmoded design of vehicles.
Modernisation is particularly needed to introduce fuel efficient engines and use of
light weight materials. Priority would be accorded to develop and improve bus chassis and
bus body. Multi-axled vehicles would be introduced to cater to heavier payloads.
Regulatory policies would be reoriented towards expansion of well organised transport
services.
7.46 The thrust would be on optimisation of capacity, and improvement in riding
quality, the underlying objectives being reduction in operating costs, improvement in
safety and environmental upgradation. This would require considerable inputs in
construction technology, maintenance practices, bridge engineering and highway safety.
High density corridors which have to cope with growing traffic and higher axle loads will
need special attention. Construction of bridges should provide for additions to deck to
cope with the increases in traffic.
Civil Aviation
7.47 Air transport, being dependent mainly on import of aircraft and equipment from
abroad and being also heavy on fuel consumption is a strain on the country s foreign
exchange resources. This implies adoption of demand management policies and expansion
of services after taking due note of viability criteria. Long distance sectors as well as
terrains with difficult and circuitous routes would require special attention. The emphasis
would generally be on modernisation of airport facilities, development of maintenance
infrastructure and technical capabilities for optimum utilisation of the aircraft fleet and also
for safer and more reliable air operations.
Railways
7.48 The Railways would need to exploit the potential in new areas like higher axle
loads, improved track geometry, liberal standard moving dimensions and modem motive
power technology. The sine qua non of economic operations is the reliability of the
assets, and unless the failure frequency of fleet and equipment is reduced, the available
capacity would be sub-optimally utilised. The process of modernisation and rationalisation
of maintenance facilities need to be accelerated along with a change in maintenance cycles
and practices. The development of terminals should receive priority, alongwith capacity
addition. The electrification programme should be selective and confined to heavy routes.
The Railways need to evolve appropriate strategies for satisfying emerging heavy
commuter traffic around metropolitan areas. It could off-load some of its manufacturing
activities and concentrate more on the assigned role of transport operators.
(c)
HOUSING
7.49 Housing merits high priority as it meets one of the basic needs of the people,
provides employment opportunies and can be undertaken with indigenous materials. Since
huge outlays are required to meet the housing needs, both public and private resources have
to be mobilised for this sector.
7.50 A National Housing Policy was announced in May 1988. The emphasis should
now be on operationalising the strategies identified in the policy for tackling the housing
problem. The policy accords priority to promoting access to shelter for the homeless and
the disadvantaged groups. A change in the orientation of all public agencies like Housing
Boards engaged in providing shelter is an essential prerequisite to expanding the housing
facilities for the poor.
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Institutional Finance
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7.51 At present low income groups have practically no access to institutional finance for
housing. Major initiatives are needed on the part of the Central and State Governments
along with the financial institutions, particularly the National Housing Bank, to mobilise
more funds for the housing programme for the urban poor. Long term loans for house
construction and improvement should be made available to them from a variety of
institutional sources. In particular, the urban poor need modest amounts of money to repair,
re-develop or augment their homes. There is nainstitutional arrangement for the disbursal
of such loans on reasonable terms. Innovative banking mechanisms promoting greater
decentralisation of community level organisations have to be created to fill this gap. The
Home Loan Account Scheme announced recently is a step forward in this direction.
7.52 The absence of adequate water supply, disposal of human waste and garbage
collection arc important factors that endanger the health and well-being of the people living
in slums. Implementation of schemes to supply more water to slum areas and installation of
low cost sanitation facilities have to be taken up as a massive programme along with
measures to collect garbage and provide serviced public latrines in the poor areas of our
cities.
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7.53 The importance of peoples’ involvement in shelter projects and in slum
improvement cannot be over-emphasised. Large programmes of urban community
development projects need to be taken up in all areas where public agencies are involved in
housing projects.
Review of Legislation
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7.54 It is necessary to undertake a review of slum legislation in the country. The review
should specifically address itself to strengthening legislation to facilitate improvement
programmes in squatter settlements, upgrading of slums in built-up areas, speedier
acquisition of private lands under slums and grant of tenure to residents of improved slums.
State Governments should make more vigorous use of the laws available in the matter of
acquisition of private land under slums. High priority must be attached to the granting of
security of tenure in shelter programmes for the poor, be they serviced sites, improved
slums or formal housing.
7.55 The existing zoning regulations, building bye-laws, minimum plot size, maximum
densities and construction standards are such that a good proportion of popular housing
today continues to be technically illegal. State Governments and city managements have to
conduct a review of master plan standards, land use plans and regulations, building bye
laws, infrastructure-standards and service standards in order to detennine the minimum
norms which are compatible with both health and safety, on the one hand and means of the
poor, on the other.
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7.56 In urban areas, the central aim of land policy should be to ensure adequate supply
of serviced land for housing to all classes of people at affordable prices and as close to their
work as possible. Instead of utilising scarce public resources for housing construction, the
objective should be to maximise the availability of developed house sites and other
infrastructure through public agencies, leaving the construction of houses largely to
private effort - individual or cooperative. While developing land and infrastructure these
agencies should concentrate largely on site and services where new development is
concerned, and site-improvement and environmental improvement where existing sites are
to be upgraded.
7.57 Pricing of urban land must provide cross-subsidy from the rich to the poor. Since
value of urban land rises mostly on account of investment in infrastructure by the State,
private profiteering in land in and arouund urban centres will need to be controlled and
surpluses mopped up for further investment in urban development. More facilities need
to be provided for industrial growth in small towns as investment in industry promotes
housing.
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7.58 Biomass and tiles will continue to be the predominant material of walling with a
gradual increase in brick walls. A bulk of the rural population has to resort to a variety of
strategies to upgrade their built up environment including using local nonmonetised material
and stockpiling and recycling materials. The quality of bio-mass material should be
improved to make it stronger and more durable. An integrated programme is required with
Government support for ensuring access to land and building resources (e.g. timber,
biomass), promoting decentralised producuon of building materials, training and skill
upgradation of artisans and providing finance. Technology packages for rural housing
have to be developed for each region to match local climate, resources and life styles.
Quality and standards for various materials and houses would need to be formulated and
enforced.
(d)
COMMUNICATIONS
7.59 Communications is an agent of modernisation in all sectors of the economy. In
terms of focus, communications as a resource will be directed at the problems and the
potential in major user areas. Information technology has emerged as one of the principal
basis of the new industrial revolution. Computer technology based on micro-electronics,
communications
technologies based on digital electronics, sensor and satellite
technologies and the synergistic use of these are behind the new information
technologies. Their development would have a significant effect on productivity and
efficiency in all sectors. The priority that is proposed to be given in the Plan to a more
disaggregative and decentralised production of goods and provision of services in the
backward areas will open up new challenges and opportunities to communications, in
particular and information technology, in general. In the process it can contribute to
more dispersed employment, a reduced load on scarce materials, energy and
infrastructure and to better control on pollution. A global information system for scanning
and monitoring and information dissemination could be helpful to foreign trade. All these
tools can aid management to achieve better efficiency.
Telecommunications
7.60 Two important develoments in the telecommunication sector in the Seventh Plan
are the launching of the Technology Mission on Telecommunications and die development
of indigenous capacity in telecom switching. The Technology Mission aims at increasing
the accessibility of service to the public, expanding the rural network with digital
technology and establishing a national digital network. This work will be
consolidated. The aim should be to put all district headquaners on STD. Increasing
accessibility and reliability of service will receive higher priority over merely increasing
telephone density in a few areas. Special attention in network planning has to be given to
areas like the north-east and the growth centres.
7.61 Some products based on indigenous development have already been
commercialised.The experience has been, in general, positive. In the Eighth Plan, an
important objective should be to bring the main automatic exchange into commercial
production and use in the network. The principal reliance would be on indigenous
technology, with imports being used selectively to plug critical gaps. The experiment of
allowing private sector to enter the field of manufacture of communication equipment has
been encouraging. The possibility of extending this pattern could be explored.
7.62 It is necessary to keep Indian traffic and network conditions and requirements in
mind while making investment and technology decisions. Standardisation with basic
minimum requirements to meet customer needs has to be pan of the planning policy. Cost
reduction, which is both feasible and necessary, has to be a prime goal. By the terminal
year of the Eighth Plan, the economy should be in a position to add 2 million lines per year
to the network capacity.
Large
planning- for their own dedicated communications facilities based
1 - users are -.
largely on imported equipment. An integratedI view keeping in mind the advantages of
7-63
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standardisation of products has to be taken and work towards a single nanonal consolidated
telematic network initiated.
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7 64 A Telecommunication Commission has recently been established to provide for
financial and managerial autonomy. The Commission will provide the organisational
underpinning for restructuring of the telecom sector.
Postal Services
7.65 A major thrust has to be provided to modernise the P°stal system.and'
management policies to support the modernisation process. An Expert Committee on
ExceUence in Kstal Service has suggested an operational
and financial restructuring of the postal system. This will need to be followed p.
explored.
Two other areas of concern relate to upgrading the quality of ™nP°*er
7.67
ensuring its proper utilisation through new methods of training and skiil devdopmenh. and
achieving a better balance between revenue and expenditure through higher productivity
and efficiency.
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Radio and Television
7.68 Radio and television are powerful instruments to promote national.integration and to
serve as an effective channel of development communication.
Seven J P1“
major expansion in radio and television hardware facilities.In the Eig
need for more pointed attention to the software aspects Apart from nationd Regional
level services, priority would be for programmes at the ocal level andin Icxal langv ; .
particularly in development sectors like literacy, family planmng and a^^ltul^m™ b
in sound broadcasting and low power transmitters in television lend themselves m
providing a network for transmission of local programmes and accordingly deserve
priority.
7.69 In order to make TV and radio effective media of umversalisation of education and
harbinger of social change, it is imperative that there is a fusion of the roles oi
publicity, sound broadcasting and television. These programmes should both supplement
and complement one another.
I
I
7 70 With the expansion of the Government bureaucracy and proliferation of schemes
implemented by different line departments, communications at the field level aimed a
essentially the same target population have become fragmented J^re 1S
simplification of the messages to be conveyed at the field level and their n eg
~
Moreover, for communication to be truly effective for policy purposes it must be lee
way; thought needs to be given to innovative channels of feedback and communication
from the people themselves.
1
OIA £?'/(!
5 1
COMMUNITY HEALTH CELL
47/1, (First Floor)St. Marks Road
BANGALORE-StiOOul
CHAPTER VIII
SCIENCE AND TECHNOLOGY
8.1
The most important motive force for dynamic change, other than the human spirit,
is the development of S&T and its application in all spheres. S&T inputs into basic areas of
development have to be enlarged and accelerated to achieve the targeted growth rate of 6%
in GDP and to fulfil the basic needs of society.
There would be a major move to work out innovative alternatives and at lower
8.2
The
strategy for S&T development for the Eighth Plan would be as under:
costs.
ensuring consolidation, modernisation, augmentation, fullest operationalisation and
utilisation of the existing scientific infrastructure;
laying
greater emphasis on scientific and technological content of all programmes in
ii)
the socio-economic sectors;
iii) giving priority to implementation of programmes having most direct impact on
society j
iv) identifying and implementing national technology missions and S&T projects in a
mission mode in selected areas;
aiming at improving the quality of S&T education and training at all levels,
V)
providing
for a significant thrust in selected areas of advanced research to reach
VI)
international levels;
.
ensuring,
through
fiscal
incentives,
that
research
is
earned
out
by
and
within
the
vii)
production and services sectors;
viii) accelerating the process of commercialisation of research by research institutions to
induce greater degree of purposiveness and better links between research and
industry; and
ix) taking appropriate steps, all round, for moving into the age of informatics/telemaucs.
i)
8 3
The great potential of spin offs from significant developments and accomplishments
in several specialised areas of S&T, such as nuclear and space science and technology,
electronics, and defence research and development would be used in other civilian sectors
by establishing institutional mechanisms and linkages. This would ensure that the large
investments in these areas of high tcchnolgy have a major national impact.
8.4
Major efforts, both in terms of R&D and production activity, would be put in the
areas of micro-electronics and the related areas of informatics/telematics, biotechnology.
new materials, high temperature super-conductivity and the like.
8.5
The process of transformation from a developing to a developed country is strongly
influenced by the degree of capability attained in S&T and used in society al large. India
has to grow at a faster pace in order to bridge the gap that separates this country from the
developed nations. Special emphasis will, therefore, be on selected programmes in inter
disciplinary and emerging fields of S&T so that in some of these, India could be among the
world leaders during the next decade.
8.6
Basic research on a selective basis would be provided long term support. Centres
of excellence would be set up in relevant and frontline areas around outstanding
individuals/groups and, in particular young and creative talent will be identified and
supported. An environment conducive to rapid development of science of high quality is a
must and this may need reforms in the administrative ambience of the scientific institutions,
as also in science education.
8.7
A judicious mix of indigenous development and essential imports of technology
would be necessary to arrive at minimum cost and time-frame solutions. It would have to
be ensured that the principles enunciated in the Technology Policy Statement, and which
have been elaborated by the Technology Policy Implementation Committee in terms of the
new initiatives/mechanisms required, arc pursued vigorously.
S 9
8.8
The Technology Mission approach would be en larged to covcr a k: w mot e sectot s
and projects so as to harness S&T to produce a much more visible impaci on society
89
Dissemination of information would play a key role. The process ol
commercialisation of research in S&T would be enhanced so that research institutions ov
a period of time are sustained by their own resource generation.
II
8.10 Creation of a scientific temper, popularisation of scienc%a"^tian^.e"^nas
extension activities to bring about effective transfer of technology will continue to be areas
of focus.
iS'materiaK Sdtoal“^TeXoSblending^w
high technology can be effectively integrated with traditional approaches
be specially emphasised.
rale iSme^.iag S&T in sectoral planning.
Councils will be strengthened and motivated to act as focal points of development oy
coordinating inputs from national laboratories, educational and researc 'o
bring innovative inputs into the planning process as also into programme implementation
various sectors.
8 13 The training, quality and numbers of S&T personnel will have to be
with the needs of the S&T sector. Steps would be taken to “PS™16 lbe 9^’n' t0
S&T from the educational institutions, as also to provide for continu g
upgrade the human resource element already in position.
8.14 International competitiveness in goods and services wiU be increasingly impomnt to
maintain a meaningful export drive. S&T will have to provide new products, P^es
know-how and in general, quality and reliability improvements and increases
productivity and efficiency. This will in turn significantly transform the domestic situation.
8.15 The allocation of funds for the S&T sector is ^e"tly a littie ovct 1 % of GNP^
Efforts would be made to increase this significantly during the Eighth Plan P®n^’?f
to reach a figure of 2% or higher. But this increase should not be only in term. o
budgetary suppon by Government. The increase must also come from investment in R&D
by, and in, the production and services sectors.
I
I
•'
assessments ensuring accountability, time targeting, investment and allocations Mj-^yis
performance and visible impact of overall achievements in the S& 1 sector.
53
CHAPTER IX
ENVIRONMENT AND ECOLOGY
9.1
The planning process has to ensure that development is sustainable in the long run
For this, ecological security is essential. Soil erosion and degradation, deforestation,
siltation of rivers and lakes leading to frequent flash floods, loss of biological diversity and
pollution of various kinds are all increasing. The basic life support systems are under
severe stress. This has consequences for both growth and welfare.
9.2
The large and growing human and livestock populations and the imperatives for
development impose severe pressure on environmental resources which are not
infinite.These need to be protected, nurtured and developed appropriately for sustainable
growth through proper environmental management.
9.3
In the Seventh Plan, the integration of environmental management with the
development process was sought to be strengthened through implementation of several
organisational and legislative measures. These efforts will be substantially strengthened
and the procedures streamlined. An environmental ethic has to permeate all development
activity if today’s economic progress is not to be at the expense of tomorrow s prospects.
Efforts would be directed to promote the growth of a conservation society based on the
principles of intra-generational and inter-generational equity.
9.4
The essential components for ensuring environmental and ecological balance for
sustainable development would be :
— taking measures to preserve, conserve and nurture what exists, particularly the
fragile and critical eco-systems, and the broad range of genetic diversity that the
country possesses in living systems;
— arranging development programmes on the basis of ecological zones, defined
through integrated surveys, application of scientific techniques like remote
sensing, and computerisation of data bases;
— adopting a decentralised approach, whereby environmental considerations are
taken note of in every sector with a definition of technology and environmental
options while formulating major development programmes in key sectors;
-- eliciting, and sustaining full cooperation and participation of voluntary
organisations and people with regard to environmental soundness;
empowering local communities to define and implement developmental activities,
effectively implementing various environmental laws/acts through creation /
strengthening of requisite administrative structures;
— evolving environmentally sustainable development strategy for special ecoregions such as hill areas, deserts, lake systems, coastal and island eco-systems,
— ensuring that particular attention is paid to R&D, with emphasis on linkages
between various elements of the life support sysem, management tools,
instrumentation and implementation measures for the control, prevention and
monitoring of air, water, noise and other types of pollution;
-- formulating action plans for the prevention and control of pollution of major river
systems taking note of and integrating other municipal works programmes.
— working out an action plan for natural disaster mitigation;
— streamlining environmental impact assessment system and integrating it with cost
benefit calculation for each project; and
— evolving an appropriate mechanism to ensure that while providing ecological
security, legitimate development needs are not thwarted through preoccupation
with environmental protection.
54
Forests
95
Forests are crucial for maintaining ecological security. They have to provide
tangible benefits like fuelwood, fodder, timber and raw matenal for wood-based industries.
They have been subjected to overexploitation in the past. Their importance in soi
water conservation, in moderating effect on climate and in environmental aesthetics would
have to be fully recognised. The protection and conservation of the existing forests of the
country would, therefore, receive utmost priority.
9.6
The growing needs of industry and the pressure of human and cattle population
have led to considerable deforestation. Erosion arising frorn.^cf7^Sta^O"’i
and injudicious land practices are some of the factors responsible for reduction in biomass
cover.
I
i
i
97
Inspite of other fuels being used increasingly, fuelwood demand would continue to
dominate domestic energy requirements for a long time. An expanded
fuel wood plantation and large scale biomass production would be taken up. Substitute
of firewood wherever possible by alternative sources of energy would also be encouraged.
9.8
A balance has to be struck between the long term investment in forestry neededI to
maintain ecological balance and protection of ecologically fragile hilly and mountain areas
and short term measures aimed at developing suitable plantations to meet the needs of .wood
for fuel and industry. A new approach for meeting the wooo requirements of ind
would need to be defined.
The main programmes would include :
i
- With a view to saving important species of flora and fauna from extinction and
maintaining ecological balance, protection of the existing natural forests wi
given top priority. Specific measures would need to be adopted for protecting
forests from illegal fellings, encroachment, jhumming, fire grazing, etc.
- An effective grazing and livestock policy (including upgradation of genetic stock)
will be evolved. The productivity of grazing and grass lands has to be restored and
enhanced through new scientific and management techniques.
- Forestry research, including restoration ecology on the principles of n}ode^
biology, and the use of new biotechnologies will be significantly strengthened.
The development of forestry extension infrastructure will be given high priority to
ensure transfer of technology to the field.
...
, .. •
- Forestry education and training will be reoriented keeping in view the objectives ot
forest conservation, protection, development and management.
- Survey of forest resources using remote sensing technology and ground trutn
verification would be done at regular intervals to update information on the extent ot
- Wild life protection, captive breeding programmes and habitat management would
need strengthening at all levels.
Wastelands
I
9.9
Wastelands of various descriptions cover a very large pan of the landmass of the
country. Degraded lands arc an integral part of the picture of backward and poor regions.
Measures required for wasteland development would cover:
- village-level planning for integrated use/management of wastelands;
-- reclamation of specific problem lands, e.g. usgr,
- regeneration of degraded forest lands;
farm-forestry/agro-forewy on private land that is currently in disuse,
- fuelwood production and conservation;
- fodder and silvi-pasture development; and
- wood based raw material for meeting industrial needs.
55
9.10 On-going activities would be reinforced through appropriate policies in regard to
grazing, reduction of scrub cattle, usufructory rights, raw material supply to forest-based
industries and distribution of fueiwood and fodder to low income families. The Seventh
Plan experience in the development of waste-lands points to the need for a restructured
approach to bring down costs, formulate programmes to suit local eco-system
requirements, involve village communities and to tackle problems of ecologically sensitive
areas on a priority basis.
Special Area Development Programmes
9.11 Special Area Development Programmes are an important feature of ecological
planning and integrated socio-economic development The rationale for such programmes is
the need to integrate economic activity with local resource bases and skills in an
environmentally sustainable manner. The areas taken up are environmentally fragile and
degraded, for one reason or the other. Special location specific development programmes
were undertaken in specific hill, desert and drought—prone areas, western ghat^ and two
island territories during the Seventh Plan. It would be necessary to improve, strengthen
and expand these programmes during the Eighth Plan, paying attention to aspects like
transportation, marketing and additional employment opportunities consistent with the
preservation of long term ecological balance in these areas.
9.12 It would be desirable to adopt a sub-plan approach in all special area programmes so
that funds provided under special programmes are used to supplement the normal
developmental programmes. These programmes should be linked with the agro-climatic
zones based district plans. Detailed perspective plans will have to be prepared for these
ecologically vulnerable areas to ensure integrated socio-economic development in a phased
manner.
56
CHAPTER
X
DECENTRALISATION AND EFFICIENCY
Decentralised Planning
A prominent feature of the Eighth Plan will be its accent on decentralisation and
. - of
- local
•
jp both rural and urban areas, ldc
revitalisation
self-governing institutions
Panchayats and Nagarpalikas reflect/our
proposed Constitutional Amendments relating to E
resolve in this regard.
10.2 The need to decentralise the process of planning and implementation iri ai country^of
such vast dimensions and variations as India has been recognised for long. Ani etufy step
was the introduction of Community Development Blocks to encourge a multi-sectond
aooroach focussed on local needs and to involve the people in the process through loca
self-government and Panchaygti Raj institutions. Specific support for strengthemng; e
planning machinery at the State/district level was offered through a Centrally-sponsored
scheme from the Fourth Plan onwards. These efforts will be substantially strengthend
improved as a basic concern of the Eighth Plan.
10.3 Development action in the name of planning has over the years tended torerode
what the original Community Development Programme envisioned - th'Hoca> sej-hejp
capacities and mass mobilisation in a democratic framework fXP™vhaXm
problems, with Government discharging a catalytic role. The Indian economy has become
much too complex, the Indian polity much too differentiated and problem; of poverty and
stagnation much too regionally variegated for planning to remain eentrahsed a„d
bureaucratic any more. A genuine push towards decentralisation and people s ptulic pa ion
has become necessary. This in essence is the imperative of the changing context ot
planning in India now.
' ; note of the constraints that have been
10.4 In pursuing this thrust it is necessary to take
far.
include:
faced in decentralising the planning process so f—. These
-.
(a) weaknesses in the structure of participative institutions, such as Panchayip,
cooperatives and municipalities, in retaining their representative character and in
effetively articulating the interests of the weaker sections, particularly the SCs,
STs and women;
(b) lack of resources, financial, technical and human at the local levels,
(c) inadequacy of data, and poor feedback and monitoring; and
(d) an in-built tendency to prepare plans and undertake activities top down rather
than encourage initiatives from below and intrusion of State-level institutions to
take over development functions (e.g. drinking water supply) that have
traditionally belonged to local bodies.
Determined efforts are needed to remove both the institutional and operational constraints to
decentraliation.
10.5 In regard to inventory of physical resources, the data base is improving. The soil,
ground water and agricultural surveys now provide a range of data which in most places is
good enough for local planning purposes. The work connected with agro-chmauc zonal
planning, to which a reference has been made earlier, will give an added push for
disaggregative planning with reference to resource endowments and developemnt
Each of the fifteen agro-climatic zones is being subdivided into sub-zones which should
facilitate integration with dcentralised planning at the district and other levels. It is expected
that the on-going work on agro-climatic zonal and sub-zonal planning will provide technica^
inputs for the formulation of district plans for which the institutional and financial
arrangements are being revamped. A programme to develop planning capabilities at the
district and block levels for assessing and meeting local energy needs was initiated in the
Seventh Plan. People need to get involved in planning decisions tor matching their
aspirations with their needs. It is through such a process that the efforts -ceded locally.
57
I
I
I
. wards ic. '-bang th
d:- .<?f-id!?..? e l y ! v. : •nmunities. '
h’— 4!lc b.
vii‘ . c to b- scif-h-Tr.;'.: in the provisn-.i. of basr . ci . * * wi:
Governmentinning . ; ap-ff ling role. By way cf c.xar.ipk. it should L: pvisible
traditional midwife "to supplement the ANTI, the hand pump rmsrv to assist ...
Government engineer, dx educated rural r.on-student youth to case the burden o • .c
Government ui.cher, tho haki-ns and vaicB to take on some of the tasks of the allopa
doctor. This would cut the costs of the delivery system considerably and improve services
bv making functionaries accountable to the community.
Voluntary
I
I
I
-TiCicS
10.14 The accent on decentralisation and community participation will also imply a
greater role for voluntary agencies. There has been significant progress in some areas rr.;:
more remains -o be done. Innovative schemes have been formulated in various noniraditional areas related to the application of S&T for rural development, wasteland
development, primary health care, skill upgradation, etc. Government has taken .r.c
initiative to involve voluntary agencies while preparing some of its schemes. The trend
needs to be strengthened and enlarged. The Eighth Plan will further call ior consolioaciou
and in-depth work in specific areas, particularly in awareness generation and organising
the rural poor and the socially vulnerable. Volunteerism will benefit from gicdti
professionalism, in support of the work of voluntary agencies, the law must be used as a
potential resource for the poor and the disadvantaged. Legal literacy - of ligi..^
entitlements and enabling legislation - has to be promoted systematically ih;c.:g»i the use Oi
literaev camps, availing of the sendees ot law students and training of social actiy.s*s.
Public*intere?:- litigation must be given legislative recognition. Reforms of the jucicuu
system to ensure speedy justice is a maner of urgency.
10.15 Cooperatives have a crucial role to play in promoting economic democracy at local
levels. Cooperative organisations have made impressive strides not only in such tradnicnai
areas as supply of credit, fertilizers and other inputs to farmers, marketing support, l.tr.d
development/ consumer retailing but also in agro- processing, dairying, water
management, etc. The more venturesome and successful among them are looking for new
areas such as electricity generation and distribution. Such initiatives need to be supponro
as part of a larger philosophy of promoting community participation and self-help.
Professional management is a must; the dairy cooperatives offer one model for replication.
The action required from the Government will be on lines similar to what has been initiated
in respect of Panchayats and Nagarpalikas and will include measures for bringing about
structural reforms so as to make cooperative societies truly representative with reservation
for weaker sections in their managing bodies, mandated periodical elections and provision
of financial and technical support.
Implementation and Systems Efficiency
I
I
II
f
!
10.16 Various committees and commissions have in the past looked into different aspects
of the administration and management of_development programmes. However, very little
basic change appears to have come about in the institutional and organisational set-up or in
systems or procedures that prevail in official agencies. There can be no real decentralisation
without a thorough-going administrative reform.^ It is at the level of the village level
worker, health worker, police constable, patwari, clerks in banks/post offices/railway
stations, line man and electrician that the common man comes in contact with the
administration. He forms his judgement as to whether the Government as a whole is
responsive to his needs or not based on how his needs are met at that level. It is generally
recognised that customer satisfaction at this grass-roots level is inadequate. The position
is no better in the urban administration. A multi-pronged effort would.be required to bring
59
about appreciable improvement m performance efficiency and responsiveness at these
levels.
10.17 it needs to be recognised that strengthening and improvement of a range of the
traditional institutions of Government - from the local thana and revenue office to the State
and national level institutions - would be called for if resources are to be utilised efficiently
and citizen satisfaction ensured. Some of these traditional agencies have come under strain
leading to a loss in the efficacy of planned national development. The sense oT }
responsibility and accountability needs to be built into public functionaries, particularly at i*
the gross-roots level so that wantage is avoided and delivery not only of development !
programmes but also of routine public services becomes more effective. This will call forj
rationalisation and simplification of laws, reguhtions and procedures, freeing people front
archaic controls and regulations, decentralisation of decision - making within Government,
effective monitoring systems and prompt redressal of public grievances. Proper
recruitment and training of officials concerned with a view to improving their motivation
and efficiency would be an important component of this approach.
10.18 The need to improve management efficiency, particularly in regard to large projects
in the energy, irrigation, industrial, commerciaTand transpon sectors. State and Central,
has already been emphasized. Some of the directions in which there is need to move have
been indicated in earlier chapters. Efficiency norms should hereafter be regarded as at leas:
as important, if not more important, as. achievement of output targets in all sectors. The
gap between what can be achieved in terms of productivity and efficiency through tested
technologies, and what is in fact being achieved across the board in crucial production and
infrastructural sectors, both public and private, in the Indian economy is (here for all to
see. Further R&D can help to tighten the norms even further. But the real test of achieving
even the known norms will be in bringing about the required changes in institutions and
procedures of work in public agencies, in stimulating necessary altitudinal changes and in
enforcing accountability among all the functionaries. This is the basis on which the
envisaged improvement in the ICOR would be realised.
10.19 We are launched firmly on the path of planned development in a democratic and
socialist framework. The problems demanding attention in this vast country are growing if.
magnitude and complexity. Based on the progress that has been achieved already and the
perceived potential for further advancement the expectations of the people are on the rise.
While realism dictates that we take note of the shortcomings, the solid achievements and
successes should not be overlooked. India does not have to look elsewhere for workable
models for emulation. The achievements in different states under particular programmes,
such as agricultural production, rural employment generation, child nutrition, education and
health and decentralisation are sources of real encouragement. The challenge of the Eighth
Plan is to build on these successes and to enlarge their scope and coverage to more areassectoral as well as geographical, in a framework of democratic decentralisation.
I
4T
i
t
60
• ••••
I
ANNEX-I
AGRO-CLIMATIC ZONES AT A GLANCE
1
2
TRAC
TORS
LAND
(Ha / Cap)
(No/kHa)
(kg/ha)
(/kHa)
6
7
8
9
10
11
12
14
5
13
4
22.5
0.195
0.189
0.098
0.141
0.172
0.268
0.323
0.446
0396
0319
0.181
0.123
0.363
1.314
0.210
0.260
23.0
9.7
2.10
0.90
1.10
28.40
33.20
56.50
3.70
17.20
23.0
9.4
64.9
67.6
85.5
104.7
14.6
15.9
27.7
573
77.3
51.5
37.8
5.4
NA
46.7
1.34
0.19
0.26
1.75
2.99
8.10
0.09
1.46
0.69
0.97
1.16
1.65
1.39
1.09
NA
1.62
43
12
143
3516
3411
4743
3043
5125
4672
2528
2089
2202
3388
5480
5453
3013
659
5892
3385
15103
32370
47716
86313
66586
62
125
692
526
466
331
136
137
170
200
321
441
175
58
29
215
2
3
18.2
18.7
63.8
62.8
70.1
80.9
35.9
45.0
59.7
48.4
433
373
51.4
47.7
4.2
47.0
45.3
42.8
11.0
8.7
4J
3.2
35.2
14.2
11.8
17.1
18.7
29.0
10.9
1.2
88.1
19.3
Western Himalayan Region
Eastern Himalayan Region
Lower Gangetic Plain Region
3
Middle Gangetic Plain Region
4
Utjpff Gangetic Plain tHv.
5
Trsig Gangetic Plain Region
6
Eastern Plateau & Hill Region
7
Central Plateau A Hill Region
8
Western Plateau A HUI Region
9
10 Southern Plateau A Hills
11 East Coast Plains A Hills
12 West Coast Plains A Ghats
13 Gujarat Plain A Hill Div.
14 Western Dry Region
15 Island Region
ALL INDIA
0
POPN.
DENSITY
FERT.
CONS.
(%)
1
POPUL
LAND
CROP
PRODUC ATION
INTEN
TIVITY
SITY
(K)
(Rs/cap) (%GCA/NSA) (Rs/Ha)
AGRI
CREDIT
TUBE
WELLS
PER CAP
FOREST
NAME
GROSS
IRRI.
AREA
(%GCA)
ADDL.
CULT
LAND
(%)
NET
SOWN
AREA
(%)
ONE
NO
10.1
7.3
13.7
12.1
6.7
19.4
233
143
22.1
20.0
183
19.2
41.2
5.7
14.0
CULT
30.3
40.4
57.5
78.8
15.5
20.9
12.5
26.0
49.0
16.5
23.9
7.5
NA
28.3
36.30
83.60
65.30
54.90
57.10
8.00
NA
36.70
61
30
25
41
127
17
47
65
61
59
77
66
35
NA
42
131
147
140
148
170
127
118
126
112
134
123
114
105
142
123
38413
53760
50726
56129
78980
63273
51570
34268
10178
228
685613
(/sqkm)
•••••••
ANNEX II
ESTIMATES OF GROSS GENERATION,
CONSUMPTION REQUIREMENT AND ADDITION TO INSTALLED CAPACITY
Gross Generation (BKWH)
Yea
(1)
Consumption
Consum(BKWH) Generating Capacity (MW)
ption
GDP
(Utilities only).
Rate of
Elasti
Hyde!
Coal Hydro
Nuc- Total Addi
Growth
city
&
Carbon tear •
tion
(%)
Lignite
During
Plan
Period
Utilities
Non
Utilities
Net
Imports
Total
Less
Less
Auxili T&D
ary
Losses
Consump
tion
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(?)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
169.1
13.3
31.2
124.6
7.86
1.41
14460
26311
719
1095
42585
14137
Supply
at
Consum
erend
1984-85
156.9
12.3
(■)0.1
1989-90
250.0
21.0
2
273.0
21.3
49.0
202.7
10.23
1.97
18606
41639 2380
1565
64190
1994-95
21605
412.0
26.0
2
440.0
30.3
78.0
331.7*
10.33
1.72
26002
64419 9750
2270
102441
38251
I
535 b1"” '™h
(Figures for 1984-85 are actuals and for 1989-90 and 1994-95 as per latest tentative estimates)
62
“ a gross generation of around 445 billion
J
List of Abbreviations
CPR
Couple Protection Rate
I
\
CBR
Crude Birth Rate
<
CAD
Command Area Development
DDP
Desert Development Programme
DPAP
Drought-Prone Area Programme
DWCRA
Development of Women and Children in
Rural Areas
FWP
Family Welfare Programme
GDP
Gross Domestic Product
ICDS
Integrated Child Development Service
IDA
Island Development Authority
ICOR
Incremental Capital - Output Ratio
IRDP
Integrated Rural Development Programme
ITI
Industrial Training Institute
JRY
Jawahar Rozgar Yojana
MNP
Minimum Needs Programme
MCH
Maternal and Child Health
MDP
Mid-day Meal Programme
NRR
Net Reproduction Rate
NREP
National Rural Employment Programme
NPE
National Policy on Education
NSS
National Social Service
PHC
Primary Health Centre
Rural Landless Employment Guarantee Programme
(
i
i
<
RLEGP
SCP
Scheduled Castes
Special Component Plan for Scheduled Castes
SEPP
Special Foodgrains Production Programme
SNP
Special Nutrition Programme
SRS
Sample Registration System
ST
Scheduled Tribes
S & T
TRYSEM
Science & Technology
Training of Rural Youth for Self Employment
TSP
Tribal Sub-plan
SC
/
iI
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