REPORT OF THE EXPERT COMMITTEE ON NATIONAL FOOD SECURITY BILL

• The National Advisory Council (NAC) proposal for a National Food Security Bill (NFSB) an important national effort to address nutritional deficiencies of the population. Health an important end in itself may be a necessary prerequisite for economic development.
• NAC recommendation - legal entitlement to subsidized foodgrains to be extended to at least 72% and 75% of the country’s population in two phases. Two categories with differential entitlements. Priority households - monthly entitlement of 35 Kgs (equivalent to 7 Kgs per person). General households - monthly entitlement of 20Kgs (equivalent to 4 Kgs per person).
• Foodgrain requirement projected by NAC on the lower side – needs to be adjusted for population and food offtake. The foodgrain requirement for implementing the NAC recommended entitlement works out to 68.76 million tonnes for phase 1 (2011) and 73.98 million tonnes for final phase (2014).
Excluding buffer stock, the requirement will be 66.76 million tonnes (phase 1) and 71.98 million tonnes (final phase)
• Based on current production and procurement trends, the total foodgrain availability with government in 2011-12 and 2013-14 is likely to be 56.35 million tonnes and 57.61 million tonnes respectively. It will not be possible to implement the NAC recommended food entitlements for either of the phases
• Projections of food availability with the government made on the basis of an assumption of procurement of 30% of total production. This is almost 50% of the marketable surplus. A larger procurement has the danger of distorting the food prices in the open markets. This may also entail a significant fiscal burden if Minimum Support Prices are to be increased substantially.
• Open market prices impact all, including the priority households - the most vulnerable section of the population. As against a monthly per capita entitlement of 7 Kg of foodgrain as recommended by NAC, the total monthly per capita consumption of the priority households is around 10 kg (wheat and rice). They procure almost 25 to 30 per cent of their consumption requirement from the open market.
• NAC recommendations have large subsidy implications. Against NAC projections of Rs 71,837 crores in phase 1 and Rs 79.931 crores in final phase, the Expert Committee’s (EC) figures after adjusting for population and offtake are Rs 85,584 cr (phase 1) and Rs 92,060 cr (final phase).
• The total subsidy outgo is likely to be higher on account of scaling up of procurement & warehousing, MSP/imports and cost of carrying buffer stock.
• The NFSB will confer an important legal right, which the government is duty bound to fulfill. Given the various constraints on stepping up production and procurement of food grains as well as its country wide
distribution with minimal leakage - all of which are fixed in the short term - 2 the implementation of the entire set of NAC recommendations may have to be calibrated.
• We will have to depend on domestic production and productivity increase to deliver the entitlements under  the NFSB since imports are a high cost option. They are also undependable.
• NFSB creates a statutory entitlement for the included population and a legal obligation for the government hence important to mandate enforceable entitlements keeping in mind the availability of grain. Government to be capable of delivering even in the situation of two successive drought years. To pragmatically move this idea forward, EC considered two options.
• Option 1 - accept the NAC recommendations of 7kg per capita entitlement to the ‘priority’ households and restrict the per capita grain entitlement to 2kgs for the ‘general’ households. This option difficult to implement in view of the projected food availability. Covering the general households under a mandated regime feasible only if the entitlement of the priority is less than 7kg per person.
• Option 2, which is favoured by the EC, recommends the assured delivery of foodgrains at Rs 2 per Kg for wheat and Rs 3 per kg for rice, to the really needy households and the coverage of the rest through an executive order with a varying quantum depending on the availability of foodgrains. The legally entitled population may be defined as the percentage of population below the official poverty line + 10 per cent of the BPL population i.e. 46 per cent rural and 28 per cent urban population as of now. These percentages are the same as NAC recommended ‘priority’ households. This captures not only the poor but also some at the margin.
• The total foodgrain requirement for the entitled population, buffer stocks and other welfare programmes which are treated as mandatory will be 50.96 million tonnes in the year 2011 and 51.93 million tonnes in the year 2014. (Table A)
• The balance foodgrain of around 5 million tonnes (for both phases) can be distributed to the non-entitled population at an issue price equal to MSP, which is likely to be lower than the market price. As production and procurement improve, the coverage can be increased through executive orders.
• Subsidy outgo, for foodgrain for entitled population, under Option 2 is Rs68,539 crores in the first phase. If we add the subsidy required for the other welfare schemes and maintenance of buffer stock then the total subsidy for phase 1 is around Rs83,000 crores.
• Other recommendations of EC are – focus on increasing foodgrain production, create a stable procurement regime, comprehensive computerization of the PDS, introduction of smart cards for the beneficiaries and entrust identification of beneficiaries to the state governments. The central government to indicate the percentage of the entitled population, while the actual identification of the beneficiaries to be the responsibility of the states.

VARIOUS SECTORS PERFORMANCE

Agriculture:

The following are the functions of the Agriculture Division:

• To formulate plans for the development of sub-sectors of Agriculture. This involves the following tasks :-
• Setting up of Working Groups on various sub- sectors/subjects for the formulation of Five Year Plan, Annual Plan, finalisation of their composition and terms of reference, processing their reports and preparation of evaluation notes, preparation of background notes identifying the thrust areas that may need specific attention and taking follow up action on the discussion of the Group.
• Identification of policy directions, major strategies and thrust areas for inclusion in the Approach documents of the Planning Commission.
• Preparation of background notes and organising meetings with the concerned Central Departments/Ministries for the finalisation of approaches, policies, strategies, targets, investment priorities etc. in the context of the formulation of Five Year Plans.
• Drafting of sub-sectoral sections for inclusion in the Draft Plan Document.
• Briefs prepared in respect of sub sectors state-wise for the use of Deputy Chairman's discussions with Chief Ministers to finalise Annual Plan outlays. These briefs are made use of by State Plan Advisers in their briefing meetings with Deputy Chairman and Members of the Planning Commission.
• Organising Working Group meetings to finalise Annual and Five Year Plans, draft Five Year Plan proposals and proposals of the State Government. This involves preparation of background papers, discussions on inter-se plan priorities, critical examination of plan proposals in relation to plan objectives and approaches, preparation of Working Group reports giving, interalia, outlays and physical targets.
• Finalisation of Annual Plans of the concerned Central Ministries/Departments and the State Governments. This includes assessment of progress, both in physical and financial terms, in relation to the approved targets and outlays, schemewise examination of the proposals and recommendations regarding targets and outlays for the next Annual Plan.
• To criticaly examine the offered comments on the Expenditure Finance Committee Memos relating to Central Plan schemes. Cabinet Notes, VIP references concerning Agriculture Sector, etc.
• To conduct studies on important matters concerning Agriculture and Allied Sectors.
• To maintain close liaison with the concerned Central Ministries and State Governments and to also coordinate with organisations/ institutions with a view to ensuring follow-up of various Plan policies, strategies and programmes.
• Work relating to Parliament Questions, Parliament Committees, etc.

2. The subjects dealt with in this Division are:
I Agricultural Research and Education :-

• General policies and schemes relating to Agricultural Research and Education, ii) Indian Council of Agricultural Research and various
• Central Research Institutes,
• Development of Agricultural Universities.

II. Agricultural Extension and Administration

• Agricultural Administration at different levels.
• Transfer of Technology to the field
• Strengthening of Extension Machinery
• Coordination and linkage between extension, research and input agencies and local organisation.
• Agricultural Inputs
• Soil and Water Conservation including Land Reclamation
• Rainfed Farming - major crops
• Foodgrain crops like wheat, rice, cereals and pulses,
• Commercial crops like oilseeds, sugarcane, cotton, jute & mesta.
• Plantation crops like coffee, tea, rubber, spices and tobacco.
• Development of Horticulture crops
• Agricultural Statistics
• Agricultural Export
• Small Farmer Agri-Business Consortium
• Animal Husbandry
• Cattle and Buffalo breeding and their development
• Cross-breeding of Cattle
• Feed and Fodder development
• Development of sheep, wool, goat, pigs, equines and mule, etc. including organisation of their cooperatives
• Cattle and Buffalo breeding farms
• Control of livestock diseases
• Biological products and their production
• Establishment or quarantine-cum-certification service stations
• Production of livestock products, i.e., milk, eggs and wool
• Animal Welfare Board
• Compilation of Statistics and Research in respect of Animal Husbandry and Dairying
• Organisation of slaughter house corporation
• Dairying and Milk Supply
• Dairy Development
• Implementation of Operation Flood III Project
• Organisation of marketing of milk and dairy cooperatives
• Establishment of cattle feed plants
• Fisheries
• Policies and objectives during the Plan
• Targets of fish production and programmes
• Strategy for fish production
• Marine Fisheries
• Inland Fisheries
• Training and Extension
• Agricultural Marketing, Storage and Warehousing
• Regulation, Management and Development of Markets
• Quality Control
• Marketing, Research, Surveys and Studies
• Agricultural Marketing Extension
• Rural Godowns
• Cooperation, Agricultural Credit and Crop insurance
• Cooperative Credit
• Cooperative marketing
• Cooperative Processing
• Cooperative Storage
• Consumer Cooperatives
• Cooperative education, training and research
• Cooperative for weaker sections e.g. labour cooperatives and transport cooperatives
• Agricultural credit through various institutional sources:
• Cooperatives
• Commercial banks
• Regional Rural banks
• Crop Insurance 

Education:

The scope of work of the Education Division covers:

• Different stages of education such as Pre-primary, formal and non-formal Education, Secondary, Senior Secondary, University and Technical Education;
• Special areas such as that of girls' education, Education for the children of scheduled castes, scheduled tribes and other backward classes;
• Adult Education and Education in the backward areas.

2. The major Education programmes relate to achieving the aim of Universalisation of Elementary Education through Sarva Siksha Abhiyan, Adult Education, Vocationalisation of Education, Teacher Education, Science Education, Educational Planning, Administration and Supervision, Physical Education, Games and Sports, Scholarship, Language Development, Book Promotion, Libraries, Youth Service Schemes, Cultural Institutions and activities etc.

3. The Education Division performs the following functions, within the areas of its concern:

1. Formation of long-term, medium-term and annual plans for the Central and the State/Union Territories levels, defining the phases in which they should be implemented, assigning their inter-se priorities and resource allocation;
2. Coordination of the education plans of the States/Union Territories and the central agencies including the University Grants Commission and the National Council of Education Research & Training as well as of the national-educational plan with the development plans in other sectors, assessing and indicating adjustments needed in the plan policies, programmes and priorities so as to achieve national goals and objectives;
3. In support of the above functions, maintain educational statistics and undertake/promote/support research studies and surveys covering –
   (a) Generation, collection, compilation and analysis of data and relevant information (b) Programme evaluation and prognosis and
   (c) Alternative and/or supplementary measures and new policy initiatives in the field of education;
4. Collaborate with and/or advise/assist the concerned Government Departments, international organizations and other agencies like NUEPA, NCERT, UGC in matters such as;
   (a) Foreign technical assistance for education development;
   (b) Training of educational planning functionaries;
   (c) Administrative reforms, innovations and experiments bearing upon economy efficiency and effectiveness of educational services; and
5. Examine resource mobilization and low cost strategies/alternatives and make recommendations in this regard;
6. Review of Committees and Commissions, Central Advisory Boards and Annual/Five Year Plan;
7. The technical staff of the Division is also working on the Educational Statistics received from the MHRD, and the Department of Statistics and other agencies.

Art & Culture

The functions of Education Division are primarily to provide over-all policy and guidance in formulation of plans and programmes for preserving and promoting the rich cultural heritage of the country. These are plans/programmes of the Ministry of Culture, whose main activities are of archaeological excavations, promotion of visual & literary arts, preservation of the material and non-material heritage, developing of museums, libraries and institutions. A number of institutions have been actively associated with the promotion, preservation and dissemination of rich cultural heritage of India.

Youth Affairs & Sports

The Education Division also looks after the over-all planning and policies of the Ministry of Youth Affairs and Sports. The Ministry of Youth Affairs & Sports take steps to channelize the energy of the youth into constructive work and to inculcate in them noble and patriotic values. These programmes stress promotion & up-gradation of necessary life skills amongst the youth through vocational training besides creating employment opportunities for them. Efforts are made to involve youth in national building activities. The Division also addresses issues relating to promotion of sports, sports talents and sports infrastructure in States/UTs.

Employment 

The subjects dealt with by this Division are described below:
I. Analytical and Estimation Work

• Estimation of labour force, employment and unemployment - Analysis of data and trends in participation rates, labour force/work force, unemployment and industrial distribution of work force from Census and National Sample Survey Organization.
• Estimation of Stock and economically active educated manpower - Analysis of information of intake and out­turn of educated manpower by different categories and requirements of different categories of manpower,
• Estimation of Status of employment - casual, regular salaried and self-employment
• Estimation of employment elasticities from growth of employment and growth of GDP.
• Estimation of sectoral employment and projection.
• Studies on employment and connected issues.
• Occasional Reports on Employment

II. Employment Strategy, Labour and Manpower Policy

• Matters pertaining to the details of employment strategy, labour and manpower policy in the Five Year Plans -
• General employment and labour matters including monitoring of employment trends, strategy etc.

III. Plan schemes for Labour and Labour Welfare and Special Employment.

• Labour and Labour Welfare Schemes ~ Central and State Plans for resource allocation for Training, Employment Service, Labour Welfare and Labour Research.
• Employment aspects of Plan Schemes and Special Employment Programmes in State Plans.
• Formulation of Plan in terms of preparation of the Chapter on Labour. Employment and Manpower in the Five Year Plan documents and Chapter on the Labour and Training in the Annual Plan documents.
• Examination of Social Security Schemes available and policy relating to them.
• Examination of Labour Laws and policy relating to them.
• Examination of Plan proposals of the Ministry of Labour and State Governments/Union Territory Administrations on employment programmes run by other Ministries.

IV. Labour Policy

• Matters pertaining to bonded labour. child labour, women labour, migrant labour, industrial safety and enforcement of minimum wages.
• Matters pertaining to craftsmen training and employment service machinery

V. Institute of Applied Manpower Research (IAMR)

• Matters connected with research activities of Institute of Applied Manpower Research
• Matters connected with Administrative work of Institute of Applied Manpower Research and release of monthly non-plan grants-m-aid for IAMR.
• Matters relating to plan schemes of new campus of IAMR in Narela.
• Matters relating to work of General Council (GC), Executive Council (EC) and Standing Committee on Research Project (SCRP) of IAMR.

VI. Others

• Work relating to Technical Advisory Committee on Statistics of Prices & Cost of Living.
• Work relating to Technical Advisory Committee on Survey Design on Employment and Unemployment conducted by NSSO. 

Environment & Forest

Environment

Environmental load increases with increasing population and rapid economic growth. Growth should be environmentally benign and sustainable. Monitoring and timely actions for mitigation of negative environmental impacts are important. Greater environmental awareness, appropriate policies and regulatory mechanisms are important means to ensure these considerations in development.

Forests

Forest cover of India is 67.71 million ha, which is 20.60% of its geographical area. Of this, 5.46 million ha (1.66%) is very dense forest, 33.26 million ha (10.12%) is moderately dense and the rest 28.99 million ha is open including 0.44 million ha of mangroves. The policy target is to have 33% forest and tree cover ultimately which will require additional coverage of 16 million ha.

Wildlife

Sanctuaries and National Parks showcase biodiversity and require specific measures for preservation. There are 96 National Parks and 509 Wildlife sanctuaries declared for the protection of wildlife habitats. The total area of 15.7 million ha, which is about 4.78% of the geographical area of the country covering about 20% of the total forests is maintained under the protected area network.

Climate Change

Global Climate Change due to rising levels of Green House Gases (GHGs) in the atmosphere is one of the most serious environmental concerns of our time. Since Global warming depends upon the total stock of GHG in the atmosphere, continued emissions beyond the earth’s absorptive capacity necessarily imply a rise in temperature. If emissions are stabilized at present level, a warming of about 0.2oC per decade is projected by Inter Governmental Panel on Climate Change (IPCC). Many Regions in India are highly vulnerable to natural and other disasters on account of geological conditions. About 60% of the landmass is susceptible to earthquakes and over 8% is prone to floods. Of the nearly 7500 kilometers of coastline, approximately 5700 kilometers is prone to cyclones. About 68% area is susceptible to drought.

Disaster Management

The Disaster Management Act, 2005 has been enacted for establishing requisite institutional mechanisms for drawing up and monitoring the implementation of disaster management plans, ensuring measures by various wings of the government for prevention and mitigating the effects of disasters, and for undertaking a holistic, coordinated and prompt response to any disaster situation.
The Environment and Forest Division is concerned with:

• Devising plans for the improvement of Environment and Forestry activities, this involves the following tasks:
  - Formulation of Five Year Plans, Annual Plans, processing reports and evaluation.
  - Identification of thrust areas that need specific attention and Follow up actions.
  - Identification of policy directions, major strategies and thrust areas for inclusion in the approach documents of the Planning Commission.
• Preparation of background notes Finalization of approaches, policies, strategies, targets, investment priorities etc. in the context of formulation of Five Year Plans with concerned Central Departments/Ministries.
• Performance Review (PR) of Financial/Physical Performance of the concerned Ministry Plan Schemes, Initiatives and Follow-up.
• Review and monitoring the performance of State and Central Pollution Control Boards and gives directions for their effective reach.
• Promotes Clean Development Mechanisms (CDM) among the Industrial sectors and Public Entrepreneurs in order to reduce GHG emissions and thereby involving in Carbon trading which leads to the development of sustainable energy development.
• Crafting Weather Insurance program for the farmers of the country which may lead to an ultimate solution for the crop insurance.

Health, Nutrition & Family Welfar:

The Division has following important functions: -

1. Evolving policy and strategy guidelines pertaining to:
   • Health & Family Welfare
   • AYUSH
   • Initiatives to improve nutritional status of the population; and
   • Flagship programme National Rural Health Mission (NRHM)
2. Drawing up short, medium and long-term perspectives and goals for each of these sectors.
3. Monitoring changing trends in the health sector viz., epidemiological, demographic, social and managerial challenges.
4. Examining current policies, strategies and programmes in health & family welfare and nutrition, both in the State and in the Central Sector and suggest appropriate modifications / mid course corrections.
5. Suggesting methods for improving efficiency and quality of services.
6. Evolving priorities for basic, clinical and operational research essential for improving health status of the population.
7. Looking into inter-sectoral issues and evolve appropriate policies and strategies for convergence of services so that the population is benefitted optimally from on-going programmes.

The Division represents the Planning Commission in:

1. Various Committees of Ministry of Health & Family Welfare and Ministry of Women & Child Development
2. EFC/SFC pertaining to Ministry of Health & Family Welfare and Ministry of Women & Child Development
3. Expert Panels set up from time to time to advise the Planning Commission regarding the priorities and targets in the Plans and Programmes relating to Health, FW and Nutrition - the resources including human and material required, the training programmes to be initiated, standards of construction and equipment for health facilities and the development of health research etc.
4. Scientific Advisory Groups of Indian Council of Medical Research, National Institute of Health & Family Welfare, Public Health Foundation of India, etc.

Minerals:

The Industry Division deals with the industrialisation issues including policies and programmes relating to large and medium industries. It handles matters concerning formulation, implementation, monitoring and evaluation of Plans and programmes for the larger and medium industries for the Annual and Five Year Plans in respect of both the Central Sector and States /UT's . The industry groups /industries being dealt with by the Division include engineering industries like capital goods industry, steel, non-ferrous metals, ship building, fertilizers, chemicals and petrochemicals, drugs and pharmaceuticals, textiles including jute, electronics, paper and paper board, cement, sugar, leather, alcohol; other consumer industries, etc.
The division also deals with issues such as economic reforms, liberalisation, disinvestment, technology policies, public sector, foreign direct investment, exports, productivity, consumer protection, weights & measures, Patent/IPR/Trademark and similar other matters which have a bearing on industrial development of the country. The matters relating to public sector enterprises and industrial finance are also handled by the Division, Reference to the Planning Commission in these areas in the form of Cabinet Notes, Parliament question and other miscellaneous forms of communication are dealt with in the Division.
The broad functions of the Division are:

• To handle all matters relating to industrial policy and other associated policy issues relating to industrial development including industrial incentives framework, investment promotion, infrastructure development, foreign direct investment and technology transfer.
• To deal with policies relating to the public sector enterprises including public enterprise reforms and privatization programmes as well as private sector development.
• To handle matters relating to industrial finance, financial institutions and capital markets as also policies towards sick industries, industrial restructuring and industrial relations policies.
• To study and analyse industrial statistics and undertake special studies relating to industrial development and sickness.
• To undertake appraisal and evaluation of industrial projects in the public sector and to examine physical progress of projects and schemes of public sector enterprises including infrastructural development programmes and also review of financial performance of these undertakings.
• To undertake appraisal and evaluation of industrial projects related to development of export infrastructure and allied activities.
• To undertake appraisal of export promotion efforts and market access initiatives in the wake of WTO regime.
• h) To implement policy issues relating to Disinvestment of PSUs. The Division provides technical support to officers representing Planning Commission in core Group of Secretaries on Disinvestment.
• To study and analyse industrial production trends and to make forecast of the demand estimates and to conduct studies regarding technological and economic aspect of industrial units, capital formation in the organized industrial sector and source of supply of funds, problems of allocation of institutional finance, regional and backward area development, etc.
• j) To undertake coordination and review of industrial development programmes with related sectors like power and transport and to inter-act with various Ministries on these and other related subjects.
• To formulate plans and programmes for development of various industrial sub-sectors and industries, their financing and re-viewing the targets of capacity and production.
• To study scientific and technical advances and technology transfer issues having bearing on the development in various industrial fields.
• To study factors inhibiting or accelerating growth in particular sectors for industries and analyse the causes of various problems being faced by individual industries and industry groups.
• Monitoring the programmes and progress of Centrally Sponsored Schemes relating to industrial sector export promotion and allied activities.
• To inter-act with various Ministries, Industry Associations and other Governmental and non-Governmental bodies on industrial matters and participate in the deliberations of inter-agency committees and groups dealing with these subjects.
• To inter-act with the State Governments and Union Territories on industrial development issues and to participate in the formulation of Annual and Five year development programmes for the industrial sector in the State and Union Territory plans. 

Industry:

The Industry Division deals with the industrialisation issues including policies and programmes relating to large and medium industries. It handles matters concerning formulation, implementation, monitoring and evaluation of Plans and programmes for the larger and medium industries for the Annual and Five Year Plans in respect of both the Central Sector and States /UT's . The industry groups /industries being dealt with by the Division include engineering industries like capital goods industry, steel, non-ferrous metals, ship building, fertilizers, chemicals and petrochemicals, drugs and pharmaceuticals, textiles including jute, electronics, paper and paper board, cement, sugar, leather, alcohol; other consumer industries, etc.

The division also deals with issues such as economic reforms, liberalisation, disinvestment, technology policies, public sector, foreign direct investment, exports, productivity, consumer protection, weights & measures, Patent/IPR/Trademark and similar other matters which have a bearing on industrial development of the country. The matters relating to public sector enterprises and industrial finance are also handled by the Division, Reference to the Planning Commission in these areas in the form of Cabinet Notes, Parliament question and other miscellaneous forms of communication are dealt with in the Division.
The broad functions of the Division are:

• To handle all matters relating to industrial policy and other associated policy issues relating to industrial development including industrial incentives framework, investment promotion, infrastructure development, foreign direct investment and technology transfer.
• To deal with policies relating to the public sector enterprises including public enterprise reforms and privatization programmes as well as private sector development.
• To handle matters relating to industrial finance, financial institutions and capital markets as also policies towards sick industries, industrial restructuring and industrial relations policies.
• To study and analyse industrial statistics and undertake special studies relating to industrial development and sickness.
• To undertake appraisal and evaluation of industrial projects in the public sector and to examine physical progress of projects and schemes of public sector enterprises including infrastructural development programmes and also review of financial performance of these undertakings.
• To undertake appraisal and evaluation of industrial projects related to development of export infrastructure and allied activities.
• To undertake appraisal of export promotion efforts and market access initiatives in the wake of WTO regime.
• h) To implement policy issues relating to Disinvestment of PSUs. The Division provides technical support to officers representing Planning Commission in core Group of Secretaries on Disinvestment.
• To study and analyse industrial production trends and to make forecast of the demand estimates and to conduct studies regarding technological and economic aspect of industrial units, capital formation in the organized industrial sector and source of supply of funds, problems of allocation of institutional finance, regional and backward area development, etc.
• j) To undertake coordination and review of industrial development programmes with related sectors like power and transport and to inter-act with various Ministries on these and other related subjects.
• To formulate plans and programmes for development of various industrial sub-sectors and industries, their financing and re-viewing the targets of capacity and production.
• To study scientific and technical advances and technology transfer issues having bearing on the development in various industrial fields.
• To study factors inhibiting or accelerating growth in particular sectors for industries and analyse the causes of various problems being faced by individual industries and industry groups.
• Monitoring the programmes and progress of Centrally Sponsored Schemes relating to industrial sector export promotion and allied activities.
• To inter-act with various Ministries, Industry Associations and other Governmental and non-Governmental bodies on industrial matters and participate in the deliberations of inter-agency committees and groups dealing with these subjects.
• To inter-act with the State Governments and Union Territories on industrial development issues and to participate in the formulation of Annual and Five year development programmes for the industrial sector in the State and Union Territory plans. 

Infrastructure:

A. Transport

• Addressing policy issues concerning railways, roads, road transport, shipping, ports, inland water transport and civil aviation for improving efficiency and making these sectors more responsive to the present and future requirements of the country.
• Addressing inter-modal issues for improving coordination among different transport sectors and ensuring that each sector works according to its comparative advantage and efficiency.
• Organizing Quarterly Performance Review Meetings for different transport sectors to monitor progress of transport sector projects according to Plan priorities and targets.
• Carrying out zero-based budgeting in consultation with various transport sector Ministries to improve efficiency and utilization of resources according to Plan priorities and objectives.
• Work relating to Parliamentary Committees for different transport sectors.
• Examining Five Year and Annual Plan proposals received from the States, Union Territories and North Eastern Council in respect of transport sectors.
• Discussions with the representatives of the State Governments and Union Territories to review physical targets, programmes and outlays of Five Year and Annual Plans of States and Union Territories.
• Examining the proposals of State Governments for provision of Additional Central Assistance.
• Participation in various workshops and seminars relating to the transport sector.
• Formulation, appraisal and monitoring of Five Year and Annual Plans.
• Mid-term review of Five Year Plans.
• Providing inputs for the Working Group Reports on the various transport sectors; preparing Steering Committee Report on Transport Sector.

Specific sector-wise responsibilities are as under:
I. Railways

• Study of Railways Resources position.
• Integrating and coordinating development plans for Railway transport with plans in related sectors such as industry, mining and ports.
• Examination and appraisal of railway projects relating to new lines, gauge conversions, doubling, metropolitan transport projects, electrification for clearance.
• Monitoring of traffic handled by railways
• Determination of traffic targets based on inter-sector linkages.

II. Roads

• Evaluation of project reports/feasibility studies for consideration of Public Investment Board, Expenditure Finance Committee/Standing Finance Committee.
• Examination of schemes received from the Ministry of Road Transport & Highways for clearance of the Planning Commission relating to National Highways, Strategic roads, Roads of Economic and Inter-State importance, road development in sensitive border areas and tribal roads.
• Review and Monitoring of National Highway Development Project comprising Golden Quadrilateral and North-South, East-West corridor projects.
• Examination of proposals from various States in the North- Eastern region for providing assistance through Non-lapsable Central Pool of Resources.
• Examining proposals received for the consideration of High Powered Committee on BOT projects.
• Examining proposals relating to National Highway Development Project for consideration of National Highways Authority of India Board.

III. Road Transport

• Analytical review of operations and assessment of financial resources of Road Transport Corporations of various States.
• Preparation of Review notes of functioning of State Road Transport Undertakings/Corporations for improving efficiency.

IV. Shipping

• Analytical review of operations and assessment of financial resources of Public Sector Undertakings.
• Coordinating investment programme with a view to ensuring integrated development of ports, shipping and railways.
• Reviewing and assessing the performance of Indian shipping industry with regard to traffic carried and productivity improvement. Requirement of the Indian Shipping sector is assessed taking into account traffic mix, technological development and port facilities available.
• Assessment of financial performance of shipping industry, role of Government/financial institutions in financing acquisition and suggesting alternative measures of financing and resource mobilisation.

V. Ports

• Evaluation of Project Reports/Feasibility Studies for consideration of Public Investment Board/Expenditure Finance Committee/Standing Finance Committee.
• 2.Assessing port capacities and the traffic requirements at individual ports.
• 3.Port productivity indicators such as equipment, cargo-handling system, labour productivity monitored so that norms of productivity laid down should be fulfilled and improved.
• Reviewing the working of major ports with particular reference to their development programmes, financial resources, projection of traffic.

VI. Inland Water Transport.

• Examination of Project/Reports/Feasibility Studies for consideration of Public Investment Board/Expenditure Finance Committee.

VII. Civil Aviation

• Reviewing the Working of Public Sector Corporations like Air India, Indian Airlines, International Airports Authority of India with particular reference to growth of traffic and financial results.
• Evaluation of Project Reports/Feasibility Studies for acquisition of aircrafts, development of airports and associated programmes for consideration of Public Investment Boards/EFC/SFC.
• Matters relating to restructuring of metro air ports to make them world class.

(B) Construction Sector
Construction Sector is an additional charge with the Transport Division. The main responsibility of the Transport Division is to examine the policy issues relating to the construction sector and preparing Report of the Working Group on Construction Sector set up in connection with the formulation of Five Year Plan; preparing material on construction sector for the Tenth Plan document. Other activities include participation in the seminars, workshops and conferences relating to construction sector, participation in the meetings of Board of Governors of Construction Industry Development Council and other organizations in the field of construction.

Rural Development:

The function of the Rural Development Division is primarily to provide overall policy guidance in formulation of plans and programmes for Rural Development. This is the nodal Division for matters relating to poverty eradication, employment generation in rural areas, development of watershed & degraded land. The following specific activities are undertaken by Division;

1. To assist in formulation of rural development programmes to be included in Five Year Plans and Annual Plans and to make periodic assessment of progress achieved.
2. To analyse and prepare comments on the EFC Memoranda and Cabinet Notes paper for Group of Ministers pertaining to rural development programmes.
3. To maintain liaison with Ministry of Rural Development, National Institute of Rural Development (NIRD) and other allied organisations mainly and participating in the meetings.
4. To collect information from various Divisions of the Planning Commission, State Governments and also from the Central Ministries which are implementing various schemes related to rural development.
5. To organize Working Group meetings to finalise the Draft Five Year Plan proposals of the State Governments. This involves the preparation of background papers, discussions on inter-se plan priorities, critical examination of plan proposals in relation to plan objectives and approaches, preparation of Working Group Reports giving, inter-alia, outlays and physical targets.
6. Finalisation of the Five Year Plan outlays of the Ministry of Rural Development. Finalisation of Annual Plans of the Central Ministry of Rural Development and State Governments. This includes assessment of progress both in physical and financial terms, in relation to the approved targets and outlays, scheme-wise examination of proposals and reviewing targets and finalizing allocation for next Annual Plan.
7. To provide comments, materials etc. for Public representations, VIP references, Parliament Questions and Agenda items for the meetings of Consultative Committee/ Standing Committee for the Planning Commission pertaining to rural development sector are also attended to.

The Rural Development Division looks after the following programmes being implemented by the Ministry of Rural Development (MoRD):

National Rural Employment Guarantee Act (NREGA),

The NREG was launched on February 2, 2006 and the first full year of operation was 2006-07 covering 200 districts. The programme was expanded to 330 districts in 2007-08 and covers the whole country from 1.4.08. The primary objective of the scheme is to provide guaranteed work for 100 days for any household wishing to have such employment. Although all households are eligible, the expectation is that only the poorer sections, i.e., landless labour and marginal farmers would actually seek work. The secondary objective is to ensure that employment generated is from works that raise land productivity.

Swarnjayanti Gram Swarozgar Yojana (SGSY)

SGSY is a major on-going scheme for the self-employment of the rural poor. The basic objective of the scheme is to bring the assisted poor families (swarozgaris) above the poverty line by providing them income generating assets through a mix of bank credit and government subsidy. Credit is the critical component of the scheme whereas the subsidy is an enabling element. The scheme involves organisation of the poor into Self Help Groups (SHGs) build their capacities through a process of social mobilization, their training, selection of key activities, planning of activity clusters, creation of infrastructure, provision of technology and marketing support, etc. Under the scheme focus is on the group approach. However, individual Swarozgaris are also assisted. The SGSY is being implemented by the District Rural Development Agencies (DRDAs) with the active involvement of Panchayati Raj Institutions (PRIs), banks, line Departments and the Non-Government Organisations (NGOs).

The credit mobilization under SGSY has been abysmally low. Further, a large number of SHGs are formed but fizzle out midway after availing the revolving fund. To make the scheme more effective it is being re-structured with a sharper focus on poorest of the poor people. A suitable mechanism will be put in place for higher social mobilization, capacity building and institution building among the target population

Indira Awaas Yojana (IAY)

The IAY is being implemented as an independent scheme since 1996. It aims to provide assistance for construction / upgradation of dwelling units to the Below Poverty Line (BPL) rural households, with special emphasis on SCs, STs and freed bonded labor categories. A maximum assistance of Rs 35,000 per unit is provided for construction in plain areas and Rs 38,500 per unit for hilly/difficult areas. Rs 15000 is given for upgradation of a dwelling unit for all areas. The funding of IAY is shared between the Centre and State in the ratio of 75:25. (100% in the case of UTs).

National Social Assistance Programme (NSAP)

The National Social Assistance Programme (NSAP) was launched with the aim to provide social assistance benefit to poor households in the case of old age, death of primary breadwinner and maternity. The programme supplements the efforts of the State Governments with the objective of ensuring minimum national levels of well being and the Central assistance is an addition to the benefit that the States are already providing on Social Protection Schemes. With a view to ensure better linkage with nutrition and national population control programmes, the Maternity Benefit Component of the NSAP was transferred to the Department of Family Welfare, Ministry of Health and Family Welfare with effect from 2001-02. The schemes of NSAP and Annapurna have been transferred to the State Plan with effect from 2002-03 with a view to provide requisite flexibility to the State / UT in the choice and implementation of the schemes.

Integrated Watershed Management Programme (IWMP)

During the Eleventh Plan, the three area development programmes, namely, Integrated Wasteland Development Programme, Drought Prone Area Programme and Desert Development Programme have been integrated and consolidated into a single programme called Integrated Watershed Management Programme (IWMP). This consolidation is for optimum use of resources, sustainable outcomes an integrated planning. The common guidelines for the Watershed Development Programme have been formulated and are effective from 1.4.2008. An amount of Rs.1825 crore has been allocated for IWMP during 2008-09. The ongoing projects sanctioned prior to 1.4.2008 under DADP, DDP, and IWDP would be continued to be implemented as per old guidelines.

The modified IWMP would adopt a three tier apporch in which the upper reaches which are mainly forested and hilly would be treated with the support of Forest Department. For land situated intermediate slopes above the agriculture lands, the IWMP would address all the necessary issues of land treatment by adopting best possible options including cropping pattern, horticulture and agro-forestry etc. In the lower tire, which are plains and mainly agricultural lands, the IWMP would be dovetailed with the employment generating programme such as National Rural Employment Guarantee Scheme (NREGS) an would fill the critical gaps of NREGS and vice versa.

Under the new programme, a cluster approach would be followed with a broader vision of natural hydro-geographical unit of average size of 4,000 to 10,000 ha. comprising of clusters of micro-watershed to be selected as project area. The progrrame would be implemented by dedicated institutional agencies at state and central level. Professional support (in the form of multidisciplinary expert team) would be provided to support these institutions with proper fund allocation. A core GIS facility with spatial and non-spatial data augmented with satellite imagery data would be set up for giving Controlled access/distributon for local project planning.

The project period is proposed in the range of 5 to 7 years in three distinct phases, i.e. Preparatory, Watershed works and Consodilation phase. The consodilation phase will include livelihood activities, marketing, processing and value addition activities.

National Land Records Modernization Programme (NLRMP):

The National Land Records Modernization Programme (NLRMP) has been conceptualized as a major system and reform initiative that is concerned not merely with computerization, updating and maintenance of land records and validation of titles, but also as a programme that will add value and provide a comprehensive database for planning developmental, regulatory and disaster management activities by providing location-specific information, while providing citizen services based on land records data.

Under the NLRMP, the following three layers of data will be integrated on a geographic information system (GIS) platform: Spatial data from satellite imagery/aerial photography, Survey of India and Forest Survey of India maps, and Revenue records: cadastral maps and RoR details. All cadastral maps will be digitized, and data included with plot numbers and unique id for each land parcel. Administrative unit boundaries from village level upwards (including panchayat, block, tehsil, circle, sub-division, district, division, State and national boundaries), forest, water bodies and other physical attributes of land and land use details will be overlaid, and other developmental layers (e.g., watersheds, road networks, etc.) added to the core GIS.

The activities to be supported under the Programme, inter alia, include survey/resurvey using modern technology including aerial photogrammetry, updating of land records including mutation records, completion of computerization of the records of rights (RoRs), computerization of registration, automatic generation of mutation notices, digitization of maps , integration of the entire system digitization of maps and training and capacity building of the concerned officials and functionaries. Connectivity amongst the land records and registration offices and land records management centers at tehsil/taluk/circle/block level would be supported. Access to land records data would be provided to Cooperative and other financial institutions for facilitating credit operations.

A major focus of the Programme will be on citizen services, such as providing records of rights (RoRs) with maps; other land-based certificates such as caste certificates, income certificates (particularly in rural areas), domicile certificates; information for eligibility for development programmes; land passbooks, etc.

In addition, the Programme will be of immense usefulness to the governments - both Central and State Governments - in modernizing and bringing efficiency to the land revenue administration as well as offering a comprehensive tool for planning various land-based developmental, regulatory and disaster management activities needing location-specific information. Even the private sector will be able to benefit from this comprehensive tool for planning business and economic activities.

As indicated above, the NLRMP has been approved by the Cabinet in its meeting held on 21.8.2008. The budget provision for the Scheme during the current year (2008-09) is Rs.473.00 crore. Accordingly, it is proposed to implement the NLRMP across the country and to make it fully operational over the next five to eight year period. The components of the scheme will become integrated with the Revenue Administration of the States/UTs and will continue as such on an ongoing basis.

Science & Technology:

Since Independence, India has endeavoured to bring economic and social change through science and technology. The effort has been both on upgrading the traditional skills to make them relevant and competitive and developing advanced capabilities in frontier areas of science and technology. The visionaries who led the growth of science and technology (S&T) in India were convinced that S&T could play an important role in transforming India in to a modern, industrialized society. Experience and results show that this confidence was well placed. Science, technology, and innovation are even more relevant today. Scientific knowledge and expertise, innovation, high technology, industrial infrastructure and skilled workforce are the currencies of this new era. Science and Technology are important drivers of economic growth and development in the contemporary world. The present juncture is critical for Indian science and major positive steps in this area will help the country to achieve sustained and rapid growth in the future.

The Science and Technology Division of the Planning Commission is the nodal division for all matters relating to Science and Technology Plan formulation ( both Five Year Plans and Annual Plans) and appraisal of the S&T programmes of six major S&T agencies/Departments, viz.

• Department of Atomic Energy (DAE)- R&D Sector
• Department of Space (DOS)
• Department of Science and Technology (DST)
• Department of Biotechnology (DBT)
• Department of Scientific and Industrial Research (DSIR) including the Council of Scientific and Industrial Research (CSIR)
• Ministry of Earth Sciences (MoES)

The Division has been maintaining a close liaison with these S&T agencies/departments for smooth information flow and provides them important suggestions/inputs in the formulation of various S&T plans and programmes at various stages of plan formulation, implementation and half yearly reviews. The Division has also been providing important inputs in the formulation of S&T Policy.

In order to promote Science and Technology in the States/UTs, create scientific awareness among the masses through popularization of S&T and technology dissemination for improving the quality of life of the people, the Division undertakes detailed discussions with the representatives of the States/UTs and provides important inputs/suggestions for the formulation of their Five Year Plans and Annual Plans in respect of the Science and Technology Sector. 

Social Welfare:

The Social Welfare Division handles two sectors; (i) Social Welfare; and (ii) Women and Child Development. The Social Welfare Sector deals the welfare, rehabilitation and development of persons with disabilities, social deviants and other disadvantaged in close co-ordination with the nodal Ministry of Social Justice and Empowerment and the Women and Child Development sector handles Empowerment of women and Development of Children in close co-ordination with the nodal Department of Women and Child Development. The primary functions of the Division, inter-alia, include the following:
Social Welfare

• Over all Policy Guidance / Advice both Governmental (central and State levels) and non-Governmental Organisations in the field of Social Welfare
• Work relating to Five Year and Annual Plans ( Social Welfare)

a) Central Sector

• Setting up of Working Groups at the Ministerial level and co­ordination with the nodal Ministry.
• Setting up of Steering Committees in the Planning Commission and its related work viz,, Organizing meetings; Preparation of background /agenda / minutes of the meetings; Preparation of Steering Committee Reports; Approach paper and the relevant Chapter for inclusion m the Plan Document.
• Examination of Plan Proposals (Five Year and Annual Plans) and preliminary discussions with the Ministry, Co­ordination with the PC Division and the Ministry with regard to Central Working, Groups; and Recommendation of Outlays; Budget Re-appropriation matters.

b) State Sector

• Examination of Plan Proposals; Organizing State Sectoral Working Group Discussions to review the implementation of both Policies and Programmes including the physical and financial targets / achievements; Recommendation of Sectoral Outlays;
• Mid-Term Appraisal.
• Review of the progress of implementation of Policies and Programmes
• Review of achievements in relation to the targets (both physical and financial)
• Suggestions for Mid Term corrections.
• Examination and preparation of Briefs along with the comments in respect of - i) Cabinet Notes; ii) EFC Memos; iii) SFC Memos; besides attending EFC/SFC Meetings.
• Advisory role with regard to functioning of Subordinate / Attached Organisations viz. National Institutes (National Institute of Orthopaedically Handicapped (NIOH), Calcutta: National Institute of Visually Handicapped (NIVH), Dehradun; National Institute of Hearing Handicapped (NIHH), Bombay; National Institute of Mentally Handicapped (NIMH), Secunderabad, National Institute of Rehabilitation, Training and Research (NIRTAR), Cuttack; Institute of Physically Handicapped (IPH), New Delhi; Rehabilitation Council of India (RCI), New Delhi; National Handicapped Finance and Development Corporation (NHFDC), New Delhi: Artificial Limbs Manutactunng Corporation (ALIMCO), Kanpur; & National Institute of Social Defence (NISD), New Delhi.
• Representing; Planning Commission in the meetings of - Inter- Ministerial/Departmental Co-ordination Committees; Expert Committees; Project Sanctioning Committees/ Special Committees/ Study Teams etc. set up from time to time by the Ministry.
• All Parliamentary matters viz. answering Questions including supply of material within and outside the Planning Commission,
• Co-ordination with the related Divisions within the Planning Commission.
• Special Initiatives like - i) Preparation of Policy Oriented Papers; ii) Bringing out Statistical Profile and other Publications ; iii) Developing Information / Data-Base.
• Any other work including preparation of Speeches and writing Articles relating to Social Welfare.

Women and Child Development (WCD)
The Women and Child Development Division handles all the work relating to - i) Empowerment of Women; and ii) Development of Children in close co-ordination with the nodal Department of Women and Child Development. The primary functions of the Division, inter-alia, include the following:

• Over all Policy Guidance / Advice to both Governmental (central and state levels) and Non-Governmental Organizations in the field of Women and Child Development.
• Work relating to Five Year and Annual Plans
• Central Sector
• Setting up of Working Groups at the Ministerial level and co-ordination with the nodal Department,
• Setting up of Steering Committees in the Planning Commission and its related work viz. Organizing meetings; Preparation of background /agenda / minutes of the meetings; Preparation of Steering Committee Reports; Approach paper and the relevant Chapter for inclusion in the Plan Document.
• Examination of Plan Proposals (Five Year and Annual Plans) and preliminary discussions with the Ministry; Coordination with the Department with regard to Central Working Groups; and Recommendation of Outlays; Budget / Re-appropriation matters.

b. State Sector

• Examination of Plan Proposals; Organizing State Sectoral Working Group Discussions to review the implementation of both Policies and Programmes including the physical and financial targets /achievements; Recommendation of Sectoral Outlays;
• Mid-Term Appraisal
• Preview of the progress of implementation of Policies and Programmes,
• Review of achievements in relation to the targets (both physical and financial),
• Suggestions for Mid-Term corrections.
• Examination and preparation of Briefs along with the Comments in respect of - i) Cabinet Notes; ii) EFC Memos; iii) SFC Memos with regard to Schemes relating to Women and Children, besides attending EFC/SFC Meetings.
• Advisory role with regard to the Subordinate/Attached Organisations viz, National Commission for Women (NCW), New Delhi; Central Social Welfare Board (CSWB), New Delhi; National Institute for Public Co-operation and Child Development (NIPCCD), New Delhi; Rashtrya Mahila Kosh (RMK), New Delhi.
• Represening Planning Commission in the meetings of - Parliamentry Committees; Inter-Minstrial / Departmental Co­ ordination Committees; Expert Committees; Task Force on the Subject; Project Sanctioning Committees; Special Committees: Study Teams; etc. set up from time to time by the Department; Governing Board and General Body Meetings of the Subordinate Organizations.
• All Parliamentary matters viz. answaring Questions, supply of material within and outside the Planning Commission.
• Co-ordination with - i) women and child - related Ministies/ Departments; ii) Subject Divisions within the Planning Commission; and iii) UN and other International Agencies.
• Special Initiatives like - i) Preparation of Policy Oriented Papers; ii) Bringing out Statistical Profiles and other Publications; iii) Developing Information / Data-Base.
• Any other work including preparation of Speeches and writing Articles relating to Women and Child Development.

ELEVENTH FIVE YEAR PLAN – AN APPRAISAL

11^th Five Year Plan (2007-2012)- Targeting rapid and inclusive growth:

Significant improvement in the standards of living of the people in the State in the recent past is attributable to a number of strategic initiatives put in place by the Government over the years. The strength of the fundamentals of the economy is evident from the remarkable transition to a high growth path during the 10^th Five Year Plan period.

Growth is a pre-requisite for development as it provides the basis for expanding incomes and employment necessary for social uplift.  With the spirit and objective of ensuring that growth is widely spread so that its benefits are adequately shared by the poor and weaker sections of the society, the Government has geared up for meeting the challenges during the 11^th Five Year Plan.

Government of India has focused on rapid and inclusive growth in the 11^th Five Year Plan. The main emphasis is on the Social sector and delivery of services therein. Education, in particular, has been accorded utmost priority during the 11^th Five Year Plan period.

Mid-Term appraisal of 11^th Five Year Plan:

On the back of the impressive record of economic growth coupled with a certain positive upsurge in the living standards of the people as reflected by the growing Per Capita Income, the State along with the Nation has entered the Eleventh Five Year Plan period on an optimistic note. A brief year wise review of the performance of the state during the three year period of the 11^th Five Year Plan in respect of the overall economy and sectoral plan performance and the overall consolidated performance of the state during the 3-year period focusing on the achievements under important programmes/ initiatives is discussed.

Performance during 2007-08:

Economic growth

The first year (2007-08) of the 11^th Five Year Plan witnessed a healthy momentum in the economy as the State, as per the Provisional estimates and at constant (1999-2000) prices had registered an impressive GSDP growth of 10.75%, ahead of the Nation’s GDP growth of 9.01% for the same period. The three sectors of the State economy, namely, Agriculture, Industries and Services grew most impressively at rates of 16.86%, 10.45% and 8.01% respectively. The respective Sectoral growth rates of the Nation during the same period are 4.86% for Agriculture, 8.10% for Industries and10.85% for Services sector.

The per capita income of Andhra Pradesh at current prices during 2007-08 was Rs. 35,600, while the corresponding figure for All India was Rs. 33,283.

Annual Plan – Sectoral performance:

A portion of the consistent rise in economic growth of the state is attributable to sustained increases in Plan outlays. Broad sectoral break up of outlays and expenditure in each of the 3 years of the 11^th Five Year Plan period are given in Annexure 10.1. Highlights of the sectoral performance under the Annual Plan of the State during the 1^st year (2007-08) of the 11^th Five Year Plan period is discussed below in brief.

During 2007-08, the Planning Commission had approved the Annual Plan out lay for Rs. 30,500 Crores for Andhra Pradesh. The Actual expenditure was Rs. 27,171 crores and this works out to 89.08% of the allocation. It can be seen from the Annexure 10.1 that, Economic Services accounted for 69.71% of the total expenditure, while the Social Services and General Services respectively work out to 30.03% and 0.26%.

Under Economic Services, Irrigation sector with an outlay of Rs. 12,974 crores (42.54% of the total Annual Plan outlay) emerges as the largest stakeholder during Year 2007-08. Transport, Rural Development and Agriculture and allied sectors respectively account for higher allocations under Economic Services category.

Under Social Services category, Housing gets the lion’s share, followed by Welfare of SCs, STs, BCs and Minorities and Urban Development. Housing accounted for over 10% of the total Plan expenditure during 2007-08.

Performance during 2008-09:

Economic growth

In spite of the global financial and economic crisis, the GSDP(Q) of Andhra Pradesh for 2008-09 at constant prices could grow at a modest rate of 5.04% against all India’s Growth of 6.70% during the same period. While the three sectors of the state economy, namely, Agriculture, Industries and Services respectively grew at rates of 1.20%, 0.22% and 9.58%, the respective Sectoral growth rates of All-India  during 2008-09 are 1.60% for Agriculture, 3.88% for Industries and 9.67% for Services sector.

The per capita income of Andhra Pradesh at current prices during 2008-09(Q) was Rs. 40,902, while the corresponding All India’s per capita income was lower at Rs. 37,490.

Annual Plan – Sectoral performance

The Planning Commission had approved highest ever amount of Rs. 44,000 crores as Annual Plan outlay for Andhra Pradesh state during the year 2008-09. The priority sectors of Irrigation, Rural development, Power and Agriculture & Allied sectors together accounted for about 51% of the total plan outlay. The total expenditure was Rs.30,618 crores and this nearly works out to 70% of the allocation. Expenditure under sectors of Economic Services accounted for 59.32% of the total expenditure while the shares of Social Services and General Services respectively work out to 40.25% and 0.44%.

Under Economic Services, Irrigation sector with an outlay of Rs. 16,472 crores (37.44% of the total Annual Plan outlay) continued to be the largest stakeholder during year 2008-09 also. Transport, Rural Development and Agriculture and allied sectors respectively account for other sectors with higher allocations under Economic Services category.

Under Social Services category, Housing with 13.43% of total share in the outlay followed by Welfare of SCs, STs, BCs and Minorities and Urban Development. Housing sector accounted for over 13% of the total Plan expenditure during 2008-09, bettering its performance over previous year.

Performance during 2009-10:

Economic growth

Notwithstanding the unfavourable seasonal conditions and fury of floods that have adversely impacted the state during the last couple of months, the economy is expected to grow moderately during the year 2009-10. Signaling certain signs of recovery, the GSDP of Andhra Pradesh for 2009-10 as per the Half-yearly estimates at Constant(1999-2000) prices, is projected to grow at 7.28%, as against all-India’s growth rate of 6.99% during the same period.

Due to inadequate and untimely rainfall besides natural calamities, the Kharif agricultural production is expected to be less than that of the previous year. The onus would be on the Industry and Services sectors to lift the growth performance.

Annual Plan – Sectoral performance

The Planning Commission has approved an amount of Rs.33,497 crores as Annual Plan outlay for Andhra Pradesh state during the year 2009-10. The priority sectors of Irrigation, Rural development, Housing and Urban Development together accounts for about 67% of the total plan outlay. The total expenditure till the end of December 2009 was Rs.17,936 crores. Out of this, Economic Services accounted for about 70% of the total expenditure.

Overall performance under 11^th Five Year Plan:

Three years have gone by so far under the 11^th Five Year Plan. The overall and comprehensive picture of the average plan performance during the first 3 years under the 11^th Five Year Plan and performance of various Flagship programmes being implemented in the state are presented below.

Economic growth

The state economy (GSDP), on an average grew at 7.89% during the first two years of the 11^th Five Year Plan period (2007-08 and 2008-09) - a few notches above the All India’s GDP growth of 7.86% for the same period. Regarding sectoral average growth rates for this period, agriculture sector in the state grew at 9.03%, much better than its All India counter part of 3.23%. For the two-year period, the Industries sector in the state grew at 5.33% as against 5.99% of All India. Similarly, the Services sector in the state grew at 7.89%.

Record foodgrain production of 204.21 lakh tonnes aided by copious rainfall during the year 2007-08 has helped the State to record impressive performance in agriculture. The performance of All India in respect of the Industry and Services sectors is better when compared with the state performance.

However, the average Per Capita Income (PCI) of the state of Rs. 38,251 is comparatively better than that of All India’s average (for two years) PCI of Rs. 35,387, indicating a relatively better standard of living of the people in the state. It is likely that the various poverty alleviating and employment generating programmes being implemented along with better delivery of welfare and safety nets in the state have helped the people in maintaining relatively better standards.

As mentioned above, the GSDP of Andhra Pradesh for the year 2009-10 as per the Half-yearly estimates, is projected to grow at 7.28%, as against all-India’s growth rate of 6.99% during the same period, signaling great resilience despite the devastations of drought and floods in latter part of 2009.

Annual Plan – a summary of Sectoral performance

The Planning Commission had approved a total amount of Rs. 1,07,997 crores as Annual Plan outlay for Andhra Pradesh state during the years 2007-08, 2008-09 and 2009-10. An amount of Rs. 75,725 crores has been spent. The expenditure for 2009-10 has been taken upto the end of (December, 2009) only. 

On the average for the three year period, Economic Services accounted for about 64% of the total outlay, while Social Services accounted for a little over 35% and General Services under 1 percent of the total outlay. Irrigation sector with an outlay share of 41.57% and Housing with 11.64% share are the major stakeholders in the total outlay.

Ensuring Equity and Social Justice:

Consistent with recommendations of the Planning Commission to adhere to allocations for SCs and STs in proportion to their shares in State population, on the average, the respective shares in the total outlays have been maintained under SCSP and TSP in the Annual Plans.

Review of performance under priority initiatives/ programmes:

As already mentioned in the foregoing paragraphs, the innovative and bold initiatives put in place by the state government in the last five to six years have not only lifted the standards of living of the people but were also instrumental in accomplishing the targeted growth.

Besides the achievements under the priority sectors like irrigation, agriculture and rural development, the state is committed to focus on increasing public spending on social sector - especially on Housing, Urban development and welfare of SCs, STs, minorities etc. besides the new initiatives like Arogyasri and 104/108 medical services, Abhaya Hastam, and others so as to ensure that the benefits of economic development and technology reach the needy.

The following is the outcome of some of the programmes /initiatives implemented during the 3 years of the 11^th Five Year Plan.

Agricultural renaissance

The growth in agricultural sector in Andhra Pradesh, after reaching a peak in the eighties started decelerating in the nineties only to recover and gain momentum in the recent periods. The growth rate of agricultural sector during the tenth plan period was higher than the targeted growth rate. The prospects of the State in meeting the 11^th  Five Year Plan target of 4% also seems achievable.

The state has been implementing a number of farmer-friendly initiatives to encourage farming in the state. These include supply of free power to Agriculture, insulate farmers from financial losses and to restore their credit eligibility in the event of crop loss through Agricultural insurance, disbursement of agricultural credit, debt waiver encouraging farmers to adopt integrated pest management practices.

During the first three years of the 11^th Five Year Plan so far, an amount of Rs. 9617.20 crores has been given as subsidy (tariff and cross subsidies) towards providing free power thereby benefitting nearly 20 lakh farmers every year.

The area, production and productivity of foodgrains have increased considerably. After an impressive foodgrain production of 198.17 lakh tonnes during the 1^st year of 11^th Five Year Plan, i.e 2007-08, the state has registered a record foodgrain production of 204.21 lakh tonnes during 2008-09. However, due to the adverse seasonal conditions prevailing in most parts of the state and subsequent floods, the state may experience a slump in production during this financial year.

The massive programme of ‘Jalayagnam’, of creating 98.41 lakh acres of new irrigation potential and stabilizing 22.26 lakh acres by constructing a total number of 86 irrigation projects-which include 44 major, 30 medium projects, 4 flood banks and modernizing 8 projects has been mounted since 2004-05.

12 projects have been completed and water released during 2004-05 to 2008-09. During the 3 years (2007-08 to December, 2009) of the 11^th Five Year Plan 12.26 lakh acres potential including stabilization of 2.20 lakh acres, was created.

Huge budgetary allocations have been provided for the irrigation sector during the period. In fact, irrigation sector alone has accounted for 41.57% (amounting to Rs. 44,898 crores) of the total plan outlay during 2007-09 to 2009-10.

Health initiatives:

Arogyasri

One of objectives of the Eleventh Five Year Plan is to achieve good health for the people, especially the poor and underprivileged. To provide financial protection to families living below poverty line for treatment of serious ailments, the Arogyasri Health Care Trust was set up to implement a Community Health Insurance scheme – Arogyasri.

Since inception in April, 2007, in all 15,353 medical camps were held in network hospitals in rural areas wherein 26.81 lakh patients have been screened. Of these, 7.2 lakh patients have been treated as out-patients and 5.7 lakh as in-patients. 4.94 lakh patients underwent surgery/therapy at a cost of Rs. 1478.56 crores.

Emergency Transport(108) and Health Information (104) Services:

Toll Free 108 (EMRI):  to  enable  rural  poor easy access  to hospital services, free of cost, in times of emergency. 652 ambulances are operating  round-the clock. Further, a Caller-free Telephone service(104) for the rural and urban population of the State to disseminate information, advice and guidance related to any health problem have been undertaken by the Government.

 Medical and Health sector has been adequately funded. During the 3 year period(2007-08 to 2009-10), an amount of Rs. 3,489 crores (about 3.24% of total plan outlays) has been provided in the Plan Budgets.

Housing & Pensions under INDIRAMMA:

Andhra Pradesh has been the pioneer in implementing “Housing for All” duly making it a reality on saturation basis. During 1^st three years of the 11^th Five Year Plan, (2007-08 to 2009-10), 26.51 lakh houses have been constructed. In order to accomplish saturation on the housing front, sizable budgetary allocations have been made during the recent past. In fact, housing accounts for 11.64% (amounting to Rs. 12,569 crores) of the total plan outlay during the 3 year period of the 11^th Five Year Plan. Incidentally, Housing sector happens to be the 2^nd largest shareholder of Plan budget, only falling behind the massive irrigation sector. 

Largest ever social security net target is to provide pensions every month to around 71.79 lakh persons comprising old-aged, disabled and widows across the state.

Substantial budgetary allocations provided in the plan budgets and pensions have been distributed to 66,36,465 pensioners upto November, 2009.

Self Help Groups(SHGs)

The concept of Indira Kranthi Patham has been evolved with an objective of enabling all the rural poor families in 22 rural districts of Andhra Pradesh to improve their livelihoods and quality of life. All households below the poverty line, starting from the poorest of the poor are the target group of Indira Kranthi Patham.

As of December, 2009, 9.34 lakh SHGs covering 1.07 crore rural women are functioning in the state with nearly 53% of them covered under Bank linkage.

Social Harmony

From the year 2008-09, applications for scholarships and sanction of Scholarships to S.C, S.T and B.C students were made ONLINE to ensure that scholarships reach the students by the 1^st of every month and also to ensure transparency by keeping all the information in the public domain.

Urban Development

Economic growth, substantially driven by Industries and Services sector is witnessing accelerated demographic expansion of urban population, not witnessed during last century across the state.  The emerging challenge needs to be tackled on multiple fronts simultaneously.

Service providers in urban areas normally inhabit low-lying slums. Government have started working on providing shelter with individual water supply and adequate drainage facilities to all such poor slum dwellers.  Progress, hitherto is on track.

Infrastructure Projects

a)      Hyderabad International Airport commenced work during 2005 and it is made  operational  in March,2008. 

b)      158 kms length of Outer Ring Road (ORR) around the capital city of Hyderabad is being implemented to reduce inner-city traffic congestion.

Information Technology

 Information Technology and Communi- cations continue to thrive in our State. I.T. exports worth Rs.12,521 crores during 2005-06 have increased to Rs.18,582 crores during 2006-07 to Rs. 32,509 during 2007-08 and further to Rs. 31,470 crores during 2008-09. Similar upward surge in IT exports is expected to continue during 2009-10 also.

Performance of Flagship programmes

With a view to impart greater momentum to the efforts being made in various sectors, the Government has launched a number of programmes under sectors of Rural Development, Urban Development, Health and Sanitation, Agriculture, Education etc.. The sector-wise performance of various flagship programmes during the 11^th Five Year Plan period is briefed hereunder.

Rural Development

The Government has launched a number of flagship programmes during the last few years. The Department of Rural Development implements these programmes for generating self-employment and wage employment, providing housing, rural roads and assets to the rural poor and social assistance to the destitute. 

A brief assessment of four flagship programmes, namely, National Rural Employment Guarantee Scheme (NREGS), Indira Awas Yojana (IAY), Pradhan Mantri Gram Sadak Yojana (PMGSY) and National Social Assistance Programme (NSAP) sponsored by the Central Government.

National Rural Employment Guarantee Programme (NREGP)

The National Rural Employment Guarantee Act 2005 came into force on 2^nd February 2006 According to this Act, workers are entitled to 100 days of wage employment for their households in a financial year.

Government of Andhra Pradesh has adopted the Central Act and formulated the Andhra Pradesh Rural Employment Guarantee Scheme (APREGS). This scheme was implemented in 1098 mandals across the state in the 22 districts excluding Hyderabad.

Since inception of the scheme, an amount of Rs.7567 crores had been spent up to 9^th October 2009. This has resulted in the generation of 73.41 crore person days of employment. This programme has so far covered 1.19 crore households through issuing job cards in 22 districts of Andhra Pradesh. The implementation of the scheme in Andhra Pradesh has been improving over time.

Pradhan Mantri Gram Sadak Yojana

(PMGSY)

Good infrastructure is necessary not only for the economic development of rural areas but also for overall human development and an acceptable standard of living. Infrastructure like rural roads can enhance connectivity and offer better marketing possibilities.

A 100% Centrally Sponsored Scheme “Pradhan Mantri Gram Sadak Yojana (PMGSY)” was launched on 25^th December 2000 primarily aiming to provide all-weather road connectivity to unconnected habitations.

Under this programme, amounts of Rs. 386.59 crores, Rs. 495.59 crores and 672.15 crores was spent respectively in 2007-08, 2008-09 and 2009-10, till Dec. 2009. In all, a total amount of Rs. 1554.33 crores has been spent during these 3 years, a total road length of 5059.19 km. has been upgraded and another 12.60 km length of new connectivity has been provided.

Indira Awas Yojana (IAY):

Indira Awas Yojana (IAY) is the most significant rural housing scheme among the central schemes.

Indira Awas Yojana is a Centrally Sponsored scheme being implemented in the state with a sharing pattern of 75:25 between the centre and the state.

Under the IAY programme, amounts of Rs. 468.39 crores, Rs. 734.34 crores and 994.16 crores was utilized respectively during 2007-08, 2008-09 and 2009-10, till Dec. 2009 totaling to Rs. 2197.29 crores. The amounts include the state contribution besides the Central allocation. Under the IAY scheme, 6.33 lakh houses have been constructed during the three year period 2007-08 to Dec. 2009.

National Social Assistance Programme    

(NSAP)

The National Social Assistance Programme (NSAP), sponsored by the Ministry of Rural Development (MoRD), Government of India, came into effect from August 15, 1995 with the purpose of providing social assistance to the rural poor in India. It aims at improving the quality of life of the rural poor.

The programme has four components, namely:

1.       National Old Age Pension Scheme (NOAPS)

2.       National Family Benefit Scheme (NFBS)

3.       Indira Gandhi Widow Pension Scheme (IGWPS)

4.       Indira Gandhi Disability Pension (IGDP).

Under the NSA Programme, amounts of Rs. 129.10 crores, Rs. 240.92 crores and 249.86 crores was utilized respectively during 2007-08, 2008-09 and 2009-10 till Nov. 2009 totalling to Rs. 619.88 crores towards implementation of the above mentioned 4 components. The utilised amounts are out of the allocations of GoI.

Health, Nutrition and Drinking Water

The National Rural Health Mission (NRHM) launched in the country during April 2005 is an articulation of the government's commitment to increase public spending on health. The main focus of this programme is to make all health facilities a fully functional, community owned, decentralised health delivery system with an emphasis on inter-sectoral convergence with sanitation, water, education, nutrition, social and gender equality besides strengthening all health facilities according to Indian Public Health Standards (IPHS).

For implementation of various items subsumed under NRHM, amounts of Rs. 422.22 crores, 733.97 crores and Rs. 626.90 crores have been allocated during the years 2007-08, 2008-09 and 2009-10. Against these allocations, amounts of Rs. 281.00 crores, Rs. 522.88 crores and Rs. 304.73 crores has been spent respectively during the above 3 years. The scheme covers several health parameters.

Integrated Child Development Services    (ICDS)

ICDS is one of the important programmes of the Women Development and Child Welfare department which is headed by a Commissioner/Director in Andhra Pradesh. At the block level, the Child Development Project Officer (CDPO) implements all ICDS services. One or more Anganwadi Centres (AWCs) are functioning in each village, with one Anganwadi Worker (AWW) and one Anganwadi Helper (AWH) to manage the AWC.

The ICDS is a Centrally Pponsored scheme and is the single largest integrated programme of child development in the country and in the state.

The main activities of ICDS centres are: 1) Provision of supplementary nutrition for children in the ages of 6 months to 6 years and pregnant and lactating mothers 2) Education for children between 3 to 6 years (Early Childhood Education) 3) Immunization of children and women in collaboration with the health department (ANM in the village) 4) Health check-up for children and women 5) Referral services for children and women 6) Nutrition and health education to mothers and adolescent girls.

For undertaking various ICDS, amounts of Rs. 292.50 crores, 420.20 crores and Rs. 350.18 crores has been spent during the years 2007-08, 2008-09 and 2009-10.  For supplementary Nutrition, additional amounts of Rs. 350.18 crores, 245.70 crores and Rs. 132.33 crores have also spent during the period. A total of no. 385 ICDS projects have been implemented with 73, 944 AWCs are operational in the state.

With regard to physical achievements under Supplementary Nutrition, the number of children (6 months to 6 years of age) benefitted during the 2007-08, 2008-09 and 2009-10 are 40.77 lakhs, 41.31 lakhs and 40.05 lakhs respectively. Similarly, the no. of benefitted pregnant and lactating women for the same period are 10.01 lakhs, 10.78 lakhs and 10.43 lakhs. 

Accelerated Rural Water Supply Programme (ARWSP)

At present, about 72 % of water supply schemes are based on ground water as the source and 28% are covered by surface sources. Further, there is no safe source in about 1,647 habitations, of which 1,064 are fluoride affected. Apart from providing treated surface water to fluoride affected habitations, Rural Water Supply Scheme (RWSS) has tried various options for de-fluoridation including reverse osmosis for supplying safe drinking water.

Accelerated Rural Water Supply Programme (ARWSP) is Centrally Sponsored scheme implemented under Bharat Nirman programme.

An amount of Rs. 207.37 crores was spent under the Bharat Nirman programme for providing drinking water to 31,312 habitations against a target of 33,133 habitations during the last three years (2007-08 to 2009-10).

Education:

Sarva Shiksha Abhiyan (SSA)

Sarva Siksha Abhiyan (SSA) is a comprehensive and integrated flagship programme of Government of India, to attain Universal Elementary Education (UEE) in the country in a mission mode. Launched in partnership with the State Governments and local self-governments, SSA aims to provide useful and relevant education to all the children in the 6-14 age groups by 2010.

Under the SSA programme, amounts of Rs. 466.26 crores, Rs. 945.00 crores and 411.93 crores was spent respectively during 2007-08, 2008-09 and 2009-10 (till Dec. 2009) totalling to Rs. 1823.19 crores. The amounts include the state contribution besides the Central allocation.

Under this scheme, during the 3-year period, 128 new school buildings have been constructed, 166 primary schools and 167 Upper Primary schools have been made operational. Further, 760 schools have been provided with adequate drinking water facility and 1504 schools have been provided with toilet facility. Due to the infrastructure facilities and academic support, there has been improvement in enrolment as well as reducing drop out ratios.

Mid Day Meal Scheme (MDMs)

Midday Meal scheme (MDM) is being implemented from January 2003 in the state.

Under the scheme, a minimum content of 450 calories and 12 grams of protein content is provided per child on each working day of the school for classes I to V and 700 calories and 20 grams of protein content is provided per child on each working day of the school for classes VI to X.  Primary School, Upper Primary and High School Children of Classes I – X studying in Government/Local bodies and Aided institutions are covered under this scheme.

Under the Mid-Day Meal programme,  amounts of Rs. 177.41 crores, Rs. 206.61 crores and 144.00 crores was spent respectively during 2007-08, 2008-09 and 2009-10 (till Dec. 2009) totaling to Rs. 528.02 crores. The amounts include the state contribution besides the Central allocation.

Under the scheme, 54.30 lakh students during 2007-08, 68.87 lakh students during 2008-09, and 86.07lakh students during 2009-10 have been covered under the scheme.

Urban Development:

Jawaharlal Nehru National Urban Renewable Mission (JNNURM):

The Government of India had launched the Jawaharlal Nehru Urban Renewal Mission (JNNURM) for a period of 7 years beginning from 2005-06. The Mission, in effect, seeks to ensure sustainable infrastructure development in select cities of the country, selected on 2001 population criteria.

The JNNURM Urban Reforms Mission has two Sub-Missions, viz., Urban Infrastructure & Governance (UI&G) and Basic Services to the Urban Poor(BSUP). Besides these two sub-missions, two other components viz., Urban Infrastructure Development Scheme for Small & Medium Towns (UIDSSMT) and Integrated Housing and Slum Development Programme(IHSDP) are also associated with the development of the select cities, together making the Package of JNNURM. Major financial support under JNNURM would be given by the GOI, in the form of Central Assistance.

So far, an amount of Rs. 1375.75 crores under UI&G scheme, Rs. 1088.98 crores under UIDSSMT, Rs. 926.60 crores under BSUP and Rs. 328.93 crores under IHSDP has been spent.      

Agriculture and Water Management

Accelerated Irrigation Benefit Programme

Government of India has initiated assistance under AIBP to complete the ongoing Major and Medium Irrigation projects taken up with Central Water Commission and Planning Commission Clearances, since 1996 – 97 to create Irrigation Potential at Optimum cost, based on the guidelines issued from time to time.

While 22 projects have been approved under AIBP during the 10^th Five Year Plan, 3 more have been approved during the 11^th Five Year Plan period so far. During 3-year period(2007-08 to 2009-10), 6 AIBP projects have been completed. During the 1^st two years of the 11^th Five Year Plan, 2.00 lakh hects. of irrigation potential has been created under the AIBP projects.

A total amount of Rs. 5834.17 crores has been spent during the 3 years of the 11th Five Year Plan(2007-08 to 2009-10) so far under various AIBP projects in the state.

State Horticultural Mission (SHM):

The project envisages development of Horticulture sector focussing on Plantation Infrastructure Development, Rejuvenation, post-harvest management techniques, conducting awareness programmes and others.

For carrying out the said activities, amounts of Rs. 128.84 crores, Rs. 66.18 crores have been spent during the two years 2008-09 and 2009-10 under the scheme. The Mission has benefited 3.71 lakh farmers during the 11^th Five Year Plan period so far.