Balanced Regional Development in India Issues and Policies Incorporating An Introduction to Balanced Regional Development in India Plan-wise Documentation of Policies and Programmes for Balanced Regional Development (I Plan to X Plan including Mid-Term Appraisal of XPlan) Data on Regional Imbalances Edited by Anita Kumari New Century Publications New Delhi, India
Editor's Note on the Book Contents Part I: India: Regional Economic Inequalities and Corrective Measures - By the Editor 1. Regional Inequalities: An Introduction 3 2. Transfer of Financial Resources through the Finance Commission 7 2.1 Finance Commission 2.2 Task of the Finance Commission 2.3 From Itemised Sharing to Global Sharing 2.4 Grants-in-aid 2.5 Main Recommendations of the Eleventh Finance Commission 2.5.1 Devolution of Central Taxes/Duties to the States A. Share of States (Vertical Devolution) B. Distribution of States' Share Inter Se (Horizontal Distribution) 2.5.2 Grants-in-aid of the Revenues of States (Article 275) A. Grants-in-aid to Cover Non-Plan Gap on Revenue Account B. Grants-in-aid for Upgradation of Standards of Administration and Special Problems of States C. Grants to States for Financing Local Bodies 2.5.3 Financing of Calamity Relief Expenditure 2.5.4 National Calamity Contingency Fund (NCCF) 2.5.5 Debt Relief to States 2.5.6 Ceiling on Total Revenue Account Transfers 2.6 Main Recommendations of the Twelfth Finance Commission ' 2.6.1 Restructuring Public Finances 2.6.2 Sharing of Union Tax Revenues 2.6.3 Local Bodies 2.6.4 Calamity Relief 2.6.5 Grants-in-aid to States vii
xvi Balanced Regional Development in India 2.6.6 Fiscal Reform Facility 2.6.7 Debt Relief and Corrective Measures 2.6.8 Others 3. Transfer of Financial Resources through the Planning Commission 29 3.1 Gadgil Formula 3.2 Nature of Plan Transfers 4. Centrally Sponsored Schemes 35 Part II: Edited Excerpts from India's Five Year Plans on Balanced Regional Development First Five Year Plan: 1951-56 41 Location of Industries Second Five Year Plan: 1956-61 43 Regional Disparities Third Five Year Plan: 1961-66 45 General Approach Policies for Regional Growth Regional Possibilities in the Third Plan Large Projects as Nuclei of Regional Growth Role of Technological Developments Education and Training Labour Mobility Personnel for Development Studies in Regional Development Fourth Five Year Plan: 1969-74 61 Correction of Regional Imbalances Fifth Five-Year Plan: 1974-79 63 Sixth Five Year Plan: 1980-85 64 Regional Disparities Sub-Plan Approach Project Fund for Local Planning and Special Additive Fund Financial Discipline
Contents xvii Hill Area Development Categorisation of Hill Areas Hill States North-Eastern Council Hill Areas in Composite States of the Himalayan and sub-himalayan Region Western Ghats and other Hill Areas New Thrusts and Future Direction Land Use Pattern Soil Erosion Forestry Animal Husbandry Conservation and Environment Planning Outlays Seventh Five Year Plan: 1985-90 (Volume I) 78 Regional Balance Seventh Five Year Plan: 1985-90 (Volume II) 79 Backward Area Development Special Area Development Programmes Hill Areas Development Programme Hill States/UTs Designated Hill Areas Review Delineation of Hill Areas Approach and Strategy Basic Needs of Hill People People's Involvement The Planning Process Catchment Area Development Unit of Planning r \ Land Use Shifting Cultivation Afforestation Horticulture and Packaging Material
xviii Balanced Regional Development in India Animal Husbandry Industries Transport and Communication Appropriate Technology Uniformity in Approach and Strategy for Hill Development Approach and Strategy Specific to Western Gnats Population North Eastern Council (NEC) Seventh Plan Perspective Agriculture Power Industry and Minerals Village and Small Industries Manpower Development Monitoring and Evaluation Desert Development Programme Historical Background Review of the Desert Development Programme (DDP) Criteria for selection Programme Contents Revised Scheme of Funding Review of Performance Strategy for the Seventh Plan Border Areas Development Programme Eighth Five Year Plan: 1992-97 (Volume I) 106 Eighth Five Year Plan: 1992-97 (Volume II) 107 Hill Areas^Development Programme (HADP) Problems of HillAreas Classification of Hill Areas Pattern of Funding Hill Areas Development Programme (HADP) - Objectives, Approaches and Strategies Allocation of Special Central Assistance Western Ghats Development Programme (WGDP) Sub-Plan Approach
Contents xix North Eastern Council (NEC) Boarder Area Development Programme (BADP) Desert Development Programme (DDP) Ninth Five Year Plan: 1997-2002 (Volume I) 121 Regional Balance Ninth Five Year Plan: 1997-2002 (Volume II) 128 Hill Areas Development Programme (HADP) Historical Background Problems of Hill Areas Classification of Hill Areas Pattern of Funding Objectives Approaches and Strategies for the Ninth Five Year Plan Sectoral Approaches and Strategies Allocation of Special Central Assistance Western Ghats Development Programme (WGDP) Western Ghats Development Programme (WGDP) Evaluation Studies and Perspective Plans High Level Commission for the North-Eastern Region North Eastern Council (NEC) Ninth Plan Border Area Development Programme (BADP) Objectives Eligible Schemes' Drought Prone Areas Programme (DPAP)/Desert Development Programme (DDP) Tenth Five Year Plan: 2002-07 (Volume I) 156 Regional Balance and Poverty Regional Disparities Tenth Five Year Plan: 2002-07 (Volume III) 164 Special Area Programmes The North Eastern Region Central Assistance to State Plans North Eastern Council (NEC)
xx Balanced Regional Development in India Non-Lapsable Central Pool of Resources Department of Development of North Eastern Region Improving Implementation and Ensuring Better Delivery of Results Providing Upstream Assistance and Policy Support Strengthening Capacity and Public Involvement Special Area Programmes Classification of Hill Areas Hill Area Development Programme in the Tenth Plan Border Area Development Programme in the Tenth Plan Development of Kalahandi, Bolangir and Koraput (KBK) Region oforissa Regional Disparities Special Plan for Bihar Special Plan for the KBK Districts Backward Districts Initiative The Reforms Component Mid-Term Appraisal of the Tenth Five Year Plan 179 Balanced Regional Development Balanced Regional Development Addressing Regional Imbalance in Development Issues and Strategies National Goals and Targeting Geographical Features Natural Resources Forests Minerals Infrastructure Endowments Public Investment Capital Flows " Intra-State Disparities Tribal Areas Decentralisation and Local Initiatives Governance Reforms Single Economic Space Reform-Linked Targeted Funding Initiatives
Contents xxi Policy Considerations The Way Forward Backward Districts Window State Infrastructure and Reforms Window Part III: Data on Regional Imbalances in India Table 1: State-wise Net State Domestic Product at Factor Cost, 2003-2004 (At Current Prices) (New Series, Base: 1993-94) (Rs. crore) 199 Table 2: Growth Rates in State Domestic Product in Different Plans 201 Table 3: State-Wise Growth Target for the Tenth Five Year Plan 203 Table 4: Poverty Projections for 2006-2007 205