Sunday, March 13, 2011

Bharat Nirman

Bharat Nirman is a time-bound business plan for action in rural infrastructure. Under Bharat Nirman, action is proposed in the areas of irrigation, rural housing, rural water supply, rural electrification and rural telecommunication connectivity.

Rural Roads

To upgrade rural infrastructure, the Government has formulated a proposal for providing the road connections to more than 38,484 villages above 1000 population and all 20,867 habitations above 500 populations in hilly and tribal areas.

To achieve the targets of Bharat Nirman, 1,46,185 kms. of road length is proposed to be constructed by 2009. This will benefit 66,802 unconnected eligible habitations in the country. To ensure full farm to market connectivity, it is also proposed to upgrade 1,94,132 kms. of the existing Associated Through Routes. A sum of approximately Rs.48,000 crore is proposed to be invested to achieve this.

The main thrust of research and development (R&D) in the roads sector is to build a sustainable road infrastructure comparable to the best roads in the world. The various components of this strategy are improvement in design, modernization of construction techniques, introduction of improved material conforming to latest trends, evolving better and appropriate specifications, encouraging development and use of new technologies etc. The dissemination of these matters is done through the publication of new guidelines, code of practices, instructions/circulars, compilation of state-of-the-art reports and seminars/presentations etc. The research schemes sponsored by the Department are generally 'applied' in nature, which, once completed, would enable them to be adopted by user agencies/departments in their work in the field. The areas covered are roads, road transport, bridges, traffic and transportation techniques etc. The Department takes the help of various research institutions, academic institutions and universities to implement the schemes. An outlay of Rs.600.00 lakhs has been provided for R&D in 2007-08. Some of the ongoing major schemes are as follows:

  • Roads:
    • Development of GIS based National Highways information system;
    • Guidelines for soil nailing techniques in highway engineering;
    • Pilot study on effect of overloading on road infrastructure;
    • Investigation on field performance of bituminous mixes with modified binders;
    • R&D Studies on performance evaluation of rigid pavements on high density traffic corridors using instrumentation supported by laboratory tests.

    In addition to the above, the proposal of IIT, Roorkee for establishment of the Ministry's Chair in it in the area of development of Highway System has also been sanctioned.

  • Bridges:
    • Creation of complete range of independent testing facility at Central Road Research Institute (CRRI ), New Delhi.

Rural Housing

Housing is one of basic requirements for human survival. For a shelterless person, possession of a house brings about a profound social change in his existence, endowing him with an identity, thus integrating him with his immediate social milieu.

The Ministry of Rural Development is implementing Indira Awaas Yojana (IAY) with a view to providing financial assistance to the rural poor living below poverty line for construction of pucca house. The details of the scheme along with its performance are given below:

Indira Awaas Yojana (IAY)

The Government of India is implementing Indira Awaas Yojana (IAY) since the year 1985-86 to provide financial assistance for construction / upgradation of dwelling units to the below poverty line (BPL) rural households belonging to the scheduled castes, scheduled Tribes and freed bonded labourers categories. From the year 1993-94, the scope of the scheme was extended to cover non-Scheduled Castes and Scheduled Tribes rural BPL poor, subject to the condition that the benefits to non-SC/ST would not be more than 40% of the total IAY allocation. The benefits of the Scheme have also been extended to the families of ex-servicemen of the armed and paramilitary forces killed in action, 3% of the Houses are reserved for the rural Below Poverty Line physically and mentally challenged persons, from 2006-07 onward, funds and physical targets under IAY are also being earmarked for BPL minorities in each state.

Under the scheme, financial resources are shared between the centre and the states on a 75:25 basis. Since, reduction of shelterlessness is the primary objective, 75% weightage is given to housing shortage and 25% to the poverty ratios prescribed by Planning Commission for state level allocation. For district level allocation, 75% weightage is given again to housing shortage and 25% to SC/ST population of the concerned districts.

On the basis of allocations made and targets fixed, district Rural development Agency (DRDAs)/Zilla Parishada (ZPs) decide Panchayat-wise number of houses to be constructed under IAY and intimate the same to the concerned Gram Panchayat. Thereafter, the Gram Sabha selects the beneficiaries, restricting its number to the target allotted, from the list of eligible households from the Permanent IAY Waitlists. No further approval of the higher authority is required.

The ceiling on construction assistance under the IAY has been enhanced w.e.f. 1.4.2008, Rs.25, 000/- to Rs.35,000/- per unit in the plain areas and from Rs.27,500/- to Rs.38,500/- in hilly/difficult areas. For upgradation of kutcha house, the financial assistance has also been enhanced from Rs.12,500/- to Rs.15,000/- per unit. In addition, The Reserve Bank of India has been requested by the Ministry of Finance to include IAY houses under the Differential Rate of Interest (DRI) scheme for lending upto Rs.20,000 per unit at an interest rate of 4%.

Further, the dwelling units should invariably be allotted in the name of a female member of the beneficiary household. Alternatively, it can be allotted in the name of both husband and wife. Only in case there is no eligible female member in the family, the house can be allotted in the name of an eligible male member.

The Sanitary latrine and smokeless chullah and proper drainage are required for each IAY house. Latrine could be constructed separate for the IAY house on the site of beneficiary.

The construction of the houses is the sole responsibility of the beneficiary. Engagement of contractors is strictly prohibited.

No specific type design has been stipulated for an IAY house. Choice of design, technology and materials for construction of an IAY house is the sole discretion of the beneficiaries.

About 181.51 lakh houses have been constructed under IAY since inception of the Scheme with an expenditure of Rs.36900.41 crores (upto 31/5/2008).

Performance during the year 2007-08

During 2007-08, the Central allocation for Rural Houseing was Rs.40,322.70 crore. The target for construction/upgradation of IAY houses was 21.27 lakh. Against this target, 19.88 lakh houses were constructed/upgraded by incurring an amount of Rs.5,458.01 crores (including State share).

Performance during the year 2008-09

The Central allocation for 2008-09 under the IAY is Rs.5,645.77 crore for the target of constructing/upgrading 21.27 lakh IAY houses. Out of this, an amount of Rs.1,694.48 crore has been released as part of first instalment and 85,879 houses have been constructed so far, (upto 31/5/2008).

Irrigation

Under the Irrigation Component of Bharat Nirman, the target of creation of additional irrigation potential of 1 crore hectare in 4 years (2005-06 to 2008-09) is planned to be met largely through expeditious completion of identified ongoing major and medium irrigation projects. Irrigation potential of 42 lakh hectare is planned to be created by expeditiously completing such ongoing major and medium projects.

There is a definite gap between irrigation potential created and the potential utilized. Under Bharat Nirman it is planned to restore and utilize irrigation potential of 10 lakh hectare through implementation of extension, renovation and modernization of schemes alongwith command area development and water management practices.

There are considerable areas in the country with unutilised ground water resources. Irrigation potential of 28 lakh hectare is planned to be created through ground water development.

The remaining target for creation of irrigation potential of 10 lakh hectare is planned to be created by way of minor irrigation schemes using surface flow.

10 lakh hectare of irrigation potential is also planned by way of repair, renovation and restoration of water bodies and extension, renovation and modernization of minor irrigation schemes.

Telephone Connections

Telecom connectivity constitutes an important part of the effort to upgrade the rural infrastructure. Under the Bharat Nirman Programme, it will be ensured that 66,822 revenue villages in the country, which have not yet been provided with a Village Public Telephone (VPT), shall be covered. Out of the above villages, connectivity in 14,183 remote and far flung villages will be provided through digital satellite phone terminals. Assistance for both capital as well as operational expenditure for these VPTs will be met out of the Universal Services Obligation Fund (USOF).

Rural Water Supply

To build rural infrastructure, Bharat Nirman has been launched by the Government of India in 2005 to be implemented in a period of four years from 2005-06 to 2008-09. Rural drinking water is one of the six components of Bharat Nirman. During Bharat Nirman period, 55,067 un-covered and about 3.31 lakh slipped-back habitations are to be covered with provisions of drinking water facilities and 2.17 lakh quality-affected habitations are to be addressed for water quality problem.

While prioritising the addressal of the water quality problem, Arsenic and Fluoride affected habitations have been accorded priority followed by Iron, Salinity, Nitrate and other contaminants. To ensure that habitations once provided with drinking water supply infrastructure do not slip back and face drinking water problem, sustainability of drinking water sources and systems has been accorded high priority. To achieve drinking water security at village/ habitation level, conjunctive use of water i.e. judicious use of rainwater, surface water and ground water is promoted.

To enable the rural community shoulder the responsibility in management, operation and maintenance of water supply systems at village level, decentralized, demand-driven, community-managed approach in the form of Swajaldhara have been adopted. To further strengthen community participation in the drinking water sector for sustainability, National Rural Drinking Water Quality Monitoring & Surveillance programme has been launched in February, 2006 under which 5 persons in each Gram Panchayat are to be trained to carry out regular surveillance of drinking water sources for which 100% financial assistance including water testing kits, are provided.

Rural Electrification

Ministry of Power has introduced the scheme Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) in April 2005, which aims at providing electricity in all villages and habitations in four years and provides access to electricity to all rural households. This programme has been brought under the ambit of Bharat Nirman.

Under RGGVY, electricity distribution infrastructure is envisaged to establish Rural Electricity Distribution Backbone (REDB) with at least a 33/11KV sub-station, Village Electrification Infrastructure (VEI) with at least a Distribution Transformer in a village or hamlet, and standalone grids with generation where grid supply is not feasible.

This infrastructure would cater to the requirements of agriculture and other activities in rural areas including irrigation pump sets, small and medium industries, khadi and village industries, cold chains, healthcare and education and IT. This would facilitate overall rural development, employment generation and poverty alleviation.

Subsidy towards capital expenditure to the tune of 90% will be provided, through Rural Electrification Corporation Limited (REC), which is a nodal agency for implementation of the scheme. Electrification of un-electrified Below Poverty Line (BPL) households will be financed with 100% capital subsidy @ Rs.1500/- per connection in all rural habitations.

The Management of Rural Distribution is mandated through franchisees. The services of Central Public Sector Undertakings (CPSU) are available to the States for assisting them in the execution of Rural Electrification projects.

NATIONAL AGRICULTURE POLICY

The first ever National Agriculture Policy was announced on 28th July, 2000. The National Policy on Agriculture seeks to actualise the vast untapped growth potential of Indian agriculture, strengthen rural infrastructure to support faster agricultural development, promote value addition, accelerate the growth of agro business, create employment in rural areas, secure a fair standard of living for the farmers and agricultural workers and their families, discourage migration to urban areas and face the challenges arising out of economic liberalization and globalisation. Over the next two decades, it aims to attain:


A growth rate in excess of 4 per cent per annum in the agriculture sector;





Growth that is based on efficient use of resources and conserves our soil, water and bio-diversity;





Growth with equity, i.e., growth which is widespread across regions and farmers;





Growth that is demand driven and caters to domestic markets and maximises benefits from exports of agricultural products in the face of the challenges arising from economic liberalization and globalisation;





Growth that is sustainable technologically, environmentally and economically.

The policy seeks to promote technically sound, economically viable, environmentally non-degrading, and socially acceptable use of country’s natural resources - land, water and genetic endowment to promote sustainable development of agriculture.

The use of bio-technologies will be promoted for evolving plants which consume less water, are drought resistant, pest resistant, contain more nutrition, give higher yields and are environmentally safe. Conservation of bio-resources through their ex situ preservation in Gene Banks, as also in situ conservation in their natural habitats through bio-diversity parks, etc., will receive a high priority to prevent depletion of bio-diversity.

Balanced and conjunctive use of bio-mass, organic and inorganic fertilizers and controlled use of agro chemicals through integrated nutrients and pest management (INM & IPM) will be promoted.

A regionally differentiated strategy will be pursued, taking into account the agronomic, climatic and environmental conditions to realize the full growth potential of every region. Special attention will be given to development of new crop varieties, particularly of food crops, with higher nutritional value.

A major thrust will be given to development of rainfed and irrigated horticulture, floriculture, roots and tubers, plantation crops, aromatic and medicinal plants, bee-keeping and sericulture for augmenting food supply, promoting exports and generating employment in the rural areas.

Development of animal husbandry, poultry, dairying and aqua-culture will receive a high priority in the efforts for diversifying agriculture, increasing animal protein availability in the food basket and for generating exportable surpluses.

An integrated approach to marine and inland fisheries, designed to promote sustainable aquaculture practices, will be adopted.

The regionalization of agricultural research based on identified agro-climatic zones will be accorded high priority. Application of frontier sciences like bio-technology, remote sensing technologies, pre and post-harvest technologies, energy saving technologies, technology for environmental protection through national research system as well as proprietary research will be encouraged.

The research and extension linkages will be strengthened to improve quality and effectiveness of research and extension system.

Adequate and timely supply of quality inputs such as seeds, fertilizers, plant protection chemicals, bio-pesticides, agricultural machinery and credit at reasonable rates to farmers will be the endeavour of the Government.

The Government will endeavour to create a favourable economic environment for increasing capital formation and farmer’s own investments by removing distortions in the incentive regime for agriculture, improving the terms of trade with manufacturing sectors and bringing about external and domestic market reforms.

Rural electrification will be given a high priority as a prime mover for agricultural development. The quality and availability of electricity supply will be improved and the demand of the agriculture sector will be met adequately in a reliable and cost effective manner.

Bridging the gap between irrigation potential created and utilized, completion of all on-going projects, restoration and modernization of irrigation infrastructure including drainage, evolving and implementing an integrated plan of augmentation and management of national water resources will receive special attention for augmenting the availability and use of irrigation water.

Emphasis will be laid on development of marketing infrastructure and techniques of preservation, storage and transportation with a view to reducing post-harvest losses and ensuring a better return to the grower.

Setting up of agro-processing units in the producing areas to reduce wastage, especially of horticultural produce, increased value addition and creation of off-farm employment in rural areas will be encouraged.

Institutional reforms will be pursued so as to channelise their energies for achieving greater productivity and production.

The Government will provide active support for the promotion of cooperative form of enterprise and ensure greater autonomy and operational freedom to them to improve their functioning.

Endeavour will be made to provide a package insurance policy for the farmers, right from sowing of the crops to post-harvest operations, including market fluctuations in the prices of agricultural produce.

The price structure and trade mechanism will be continuously reviewed to ensure a favourable economic environment for the agriculture sector and to bring about an equitable balance between the rural and the urban incomes.

Quality consciousness amongst farmers and agro processors will be created. Grading and standardization of agricultural products will be promoted for export enhancement. Application of science and technology in agriculture will be promoted through a regular system of interface between Science and Technology institutions and the users/potential users to make the sector globally competitive.

The database for the agriculture sector will be strengthened to ensure greater reliability of estimates and forecasting which will help in the process of planning and policy making.

Follow up Action

Various Central Sector and Centrally Sponsored Schemes are being implemented by the Government of India and the State Governments for development of agriculture and allied activities as per guidelines of the Agriculture Policy. Following major initiatives have been taken to accelerate the pace of developmental activity and implement the objectives of the Agriculture Policy:

Macro Management Scheme has been launched after integrating 27 ongoing Centrally Sponsored Schemes to enable a shift from programmatic approach to a macro mangement mode of assistance to the states in the form of work plans based on crop/area specific, regionally different strategies, to provide flexibility to State Governments and to ensure timely and effective application of limited financial resources.

Common guidelines have been issued for National Watershed Development Project for Rainfed Areas to harmonize the implementing norms with other watershed development programmes. A Watershed Development Fund with a corpus of Rs.200 crores each from NABARD and the Department of Agriculture & Cooperation, has been created.

A Technology Mission for the Integrated Development of Horticulture in the North-Eastern Region has been launched.

Seed Legislation is under revision to provide fillip to varietal research and plant breeding. Enactment of legislation on the “Protection of Plant Varieties and Farmers Rights”.This is likely to stimulate investment and initiative both in public and private sector for development of new plant varieties and a vibrant seed industry. A National Seed Policy is under formulation. A Scheme for Seed Crop Insurance has been launched to cover the risks involved in seed production. A Seed Bank has been established to meet contingent requirements of seed in the wake of natural calamities.

Increasing availability, flexibility and security in the flow of credit to the farmers. All eligible farmers are proposed to be covered under the Kisan Credit Cards scheme within the next 3 years. A personal insurance package is proposed to be extended to Card Holders covering them against risk to life and injury.

A scheme has been introduced for provision of capital subsidy for construction/modernization and expansion of cold storages and storages for horticultural produce.

Rural Infrastructure Development Fund corpus has been increased in 2001-02 from Rs. 45,00,00,00 thousands to Rs.5,00,00,000 thousands and the interest rate charged by NABARD reduced.

Market Information Network has been launched with the objective to provide farmers latest information on price movements ofagricultural commodities and other essential data.

Cooperative Sector Reforms: a new Bill has been formulated and introduced in Parliament for replacing the existing Multi-State Cooperative Societies Act, 1984.

Formulation of new subsidy linked scheme for establishment of rural godowns.

Promotion of Food Processing Industries and value addition in agriculture through the excise exemptions and other interventions.

Standing Committee of Union Ministers and Chief Ministers constituted to consider issues concerning agricultural strategies, food management and promotion of agriculture exports. The Committee has approved the outline of the proposed Grain Bank Scheme which will be extended to BPL families in identified areas and developed on the contours of the recently launched Sampoorna Grameen Rozgar Yojana.

National Action Plan on Climate change

The National Action Plan on Climate change was formally launched on June 30th, 2008. The NAPCC identifies measures that promote development objectives while also yielding co-benefits for addressing climate change effectively. There are eight “National Missions” which form the core of the National action plan. They focus on promoting understanding of climate change, adaptation and mitigation, energy efficiency and natural resource conservation.”

The eight missions are:

* National Solar Mission
* National Mission for Enhanced Energy Efficiency
* National Mission on Sustainable Habitat
* National Water Mission
* National Mission for Sustaining the Himalayan Ecosystem
* National Mission for a Green India
* National Mission fro Sustainable Agriculture
* National Mission on Strategic Knowledge for Climate Change

National Solar Mission

Great importance has been given to the National Solar Mission in the NAPCC. The objective of the mission is to increase the share of solar energy in the total energy mix of the country, while also expanding the scope of other renewable sources. The mission also calls for the launch of a research and development (R&D) programme that, with the help of international cooperation, would look into creating more cost-effective, sustainable and convenient solar power systems.

The NAPCC sets the solar mission a target of delivering 80% coverage for all low temperature (<150° C) applications of solar energy in urban areas, industries and commercial establishments, and a target of 60% coverage for medium temperature (150° C to 250° C) applications. The deadline for achieving this is the duration of the 11th and 12th five-year plans, through to 2017. In addition, rural applications are to be pursued through public-private partnership.

The NAPCC also sets the target of 1000 MW/annum of photovoltaic production from integrated facilities by 2017 as well as 1000 MW of Concentrating Solar Power generation capacity.


National Mission for Enhanced Energy Efficiency

The Government of India already has a number of initiatives to promote energy efficiency. In addition to these, the NAPCC calls for:

* Mandating specific energy consumption decreases in large energy consuming industries and creating a framework to certify excess energy savings along with market based mechanisms to trade these savings.
* Innovative measures to make energy efficient appliances/products in certain sectors more affordable.
* Creation of mechanisms to help finance demand side management programmes by capturing future energy savings and enabling public
* private
* partnerships for this.
* Developing fiscal measures to promote energy efficiency such as tax incentives for including differential taxation on energy efficient certified appliances.


National Mission on Sustainable Habitat

The aim of the Mission is to make habitats more sustainable through a threefold approach that includes

* Improvements in energy efficiency of buildings in residential and commercial sector
* Management of Municipal Solid Waste (MSW)
* Promote urban public transport

National Water Mission

The National Water Mission aims at conserving water, minimising wastage and ensuring more equitable distribution through integrated water resource management. The Water Mission will develop a framework to increase the water use efficiency by 20%. It calls for strategies to tackle variability in rainfall and river flows such as enhancing surface and underground water storage, rainwater harvesting and more efficient irrigation systems like sprinklers or drip irrigation.


National Mission for Sustaining the Himalayan Ecosystem

The Plan calls for empowering local communities especially Panchayats to play a greater role in managing ecological resources. It also reaffirms the following measures mentioned in the National Environment Policy, 2006.

* Adopting appropriate land
* use planning and water
* shed management practices for sustainable development of mountain ecosystems
* Adopting best practices for infrastructure construction in mountain regions to avoid or minimize damage to sensitive ecosystems and despoiling of landscapes
* Encouraging cultivation of traditional varieties of crops and horticulture by promoting organic farming, enabling farmers to realise a price premium
* Promoting sustainable tourism based on best practices and multi
* stakeholder partnerships to enable local communities to gain better livelihoods
* Taking measures to regulate tourist inflows into mountain regions to ensure that the carrying capacity of the mountain ecosystem is not breached
* Developing protection strategies for certain mountain scopes with unique “incomparable values”


National Mission for a Green India

This Mission aims at enhancing ecosystem services such as carbon sinks. It builds on the Prime Minister’s Green India campaign for afforestation of 6 million hectares and the national target of increasing land area under forest cover from 23% to 33%. It is to be implemented on degraded forest land through Joint Forest Management Committees set up under State Departments of Forests. These Committees will promote direct action by communities.


National Mission for Sustainable Agriculture

The aim is to make Indian agriculture more resilient to climate change by identifying new varieties of crops, especially thermal resistant ones and alternative cropping patterns. This is to be supported by integration of traditional knowledge and practical systems, information technology and biotechnology, as well as new credit and insurance mechanisms.


National Mission on Strategic Knowledge for Climate Change

This Mission strives to work with the global community in research and technology development and collaboration through a variety of mechanisms and, in addition, will also have its own research agenda supported by a network of dedicated climate change related institutions and universities and a Climate Research Fund. The Mission will also encourage private sector initiatives for developing innovative technologies for adaptation and mitigation.


Implementation of Missions

The 8 National Missions are to be institutionalised by “respective ministries” and will be organised through inter-sectoral groups including, in addition to related Ministries, Ministry of Finance and the Planning Commission, experts from industry, academia and civil society.

Climate Change and working towards Sustainable Development

India released its National Action Plan on Climate Change (NAPCC) on 30th June, 2008, to outline its strategy to meet the Climate Change challenge. The National Action Plan advocates a strategy that promotes, firstly, the adaptation to Climate Change and secondly, further enhancement of the ecological sustainability of India's development path. India's National Action Plan stresses that maintaining a high growth rate is essential for increasing the living standards of the vast majority of people of India and reducing their vulnerability to the impacts of climate change. Accordingly, the Action Plan identifies measures that promote the objectives of sustainable development of India while also yielding to benefits for addressing climate change.

There are eight National Missions which form the core of the National Action Plan, representing the multi-pronged long-term strategy. These missions have been formed by combining several ongoing programmes with the ones newly formulated.

  • National Solar Mission has a twin objective - to contribute to India's long term energy security as well as its ecological security. We are living in a world of rapidly depleting fossil fuel resources and access to conventional energy resources such as oil, gas and coal is becoming increasingly constrained. The rapid development and deployment of renewable energy is imperative in this context and in view of high solar radiation over the country solar energy provides a long term sustainable solution.
  • National Mission on Enhanced Energy Efficiency under the Ministry of Power.
  • National Mission on Sustainable Habitat will target improvements in energy efficiency in buildings, management of solid waste and accelerating modal shift to mass transport.
  • The National Water Mission’s main objective is “conservation of water, minimizing wastage and ensuring its more equitable distribution both across and within states through integrated water resources development and management”.
  • The purpose of the National Mission for Sustaining the Himalayan Eco-system is to get a complete understanding of whether and to what extent the Himalayan glaciers are in recession and how the problem can be addressed. The other major objective is to establish an observational and monitoring network for the Himalayan environment to assess freshwater resources and health of ecosystem.
  • The draft of the National Mission for a Green India aims to address climate change by enhancing carbon sinks in sustainably managed forests and by adaptation of vulnerable ecosystems and forest-dependent local communities to changing climate. It builds on the Prime Minister's Green India campaign for afforestation and the national target of increasing land area under forest cover. It is to be implemented on degraded forest land through Joint Forest Management Committees set up under State Departments of Forests. These Committees will promote direct action by communities.
  • The National Mission for Sustainable Agriculture aims to make Indian agriculture more resilient to climate change by identifying new varieties of crops, especially thermal resistant ones and alternative cropping patterns. This is to be supported by integration of traditional knowledge and practical systems, information technology and biotechnology, as well as new credit and insurance mechanisms.
  • National Mission on Strategic Knowledge for Climate Change strives to work with the global community in research and technology development and collaboration through a variety of mechanisms and, in addition, will also have its own research agenda supported by a network of dedicated climate change related institutions and universities and a Climate Research Fund. The Mission will also encourage private sector initiatives for developing innovative technologies for adaptation and mitigation.

While these National Missions will serve as umbrella organisations in their respective fields, some existing schemes and programmes towards sustainable development that are being undertaken by the government are:

Conservation of Wildlife

The National Wildlife Action Plan provides the framework of the strategy as well as the programme for conservation of wildlife. The first National Wildlife Action Plan (NWAP) of 1983 has been revised and the new Wildlife Action Plan (2002-2016) has been adopted. The Indian Board of Wildlife, headed by the Prime Minister, is the apex advisory body overseeing and guiding the implementation of various schemes for wildlife conservation.

Project Tiger, now renamed as the National Tiger Conservation Authority, was launched in 1973 with a mandate to conserve tigers in a holistic manner. Its mandate was to be fulfilled by facilitating focused, concerted management of eco-typical reserves in various states, constituted on a core-buffer strategy through funding the technical support including site-specific inputs to elicit local community support for conservation. The project has put the tiger on an assured course of recovery from the brink of extinction, apart from conserving the floral and faunal genetic diversity in some of our unique and endangered wilderness ecosystem.

Under the Project Elephant , which was launched in February 1992, States that have a free-ranging population of wild elephants are being given financial as well as technical and scientific assistance to ensure long-term survival of identified viable populations of elephants in their natural habitats. Elephant Task Force Report, Gajah, lays out a comprehensive action agenda for protecting elephants in the wild and in captivity, and for addressing human-elephant conflict.

Established in 1982, Wildlife Institute of India (WII)offers training programmes, academic courses and advisory in wildlife research and management. The Institute is actively engaged in research across the breadth of the country on biodiversity related issues.

Animal Welfare Board of India (AWBI) is a statutory body under Section 4 of the Prevention of Cruelty to Animals Act, 1960 with its headquarters at Chennai. Its basic mandate is to advise the Government on animal welfare issues, and create awareness regarding animal welfare. AWBI gives financial assistance to the eligible Animal Welfare Organisations for Shelter Houses, Model Gaushalas, for setting up Bio-Gas Plants, Famine/Drought Relief, Earthquake Relief, etc., in the various states.

Zoological Survey of India is a nodal organization under Ministry of Environment and Forests which plays a significant role in fulfilling India's commitments under various international conventions. This organisation is a vast repository of National Zoological Collection in the form of various types and reference collections needed for the bio-systematic research and conservation strategies.

Source: National Portal Content Management Team

Wednesday, March 2, 2011

Poverty Measurement

Recently, in the latest release of UNDP reports on HDR, the indicators to find the extent of poverty for different countries was based on a new method. This is improved from the earlier version as it encompasses other socio economic impact in the indices.

Multidimensional Poverty Index
devised for measuring the extent of poverty with multidimensional aspect in it. The index is based on a range of deprivations at the household level, from education to health outcomes to assets and services. The education indicators include years of schooling and child enrolment. The health indicators used are child mortality and nutrition. The standard of living indicators include electricity and drinking water access, sanitation, flooring, cooking fuel and certain basic physical assets.

2010 UNDP HDR Report:
The international standard for the poverty was defined on the basis of consumer expenditure per day. The people who lived on $1.25 or lesser on a day were considered poor. The new MPI were calculated and brought out for the various countries in 2010 UNDP report on human development. MPI is based on the multiple deprivations for income as well as other socio economic factors such as education, deprivation at household level, health and standard of living. Measures based on new MPI shows that almost 1.75 billion people live in 104 countries.

Poverty line:
The social deprivation is determined on the basis of normative poverty line that describes the minimum and basic needs of individual for a decent living. These norms are those determined on the basis of consumer expenditure on food and basic amenities. However the concept has been expanded to include other social deprivation norms like education and health. It may vary on the basis of the agency such as international poverty line would be different from the national poverty line.

Head-count Measure:
Incidence of poverty is measured by the head-count ratio which describes the percentage of the population whose per capita income or expenditure are below the poverty line. This is an indicative measurement as the population earning below this income are believed to find it unaffordable the basket of goods and basic amenities. The measure is simple and clear, and is the most commonly calculated poverty measure.

Poverty Gap:
An indicator related to the depth of poverty is the income gap ratio, defined as the difference between the poverty line and the average income (or consumption) of the population living under the poverty line, expressed as a fraction of the poverty line.

Poverty gap index
is another measure that captures the magnitude of poverty, considering both the number of poor people and how poor they are. It is the combined measurement of incidence of poverty and depth of poverty.

The severity of poverty is the average value of the square of the depth of poverty for each individual. The poverty severity index is based on weightage method adopted for measuring poverty and extent of poor people. As per the method, the poor people with severe deprivation are weighted more as compared to the other.

Poverty Line in India:
The contemporary official estimates on poverty lines were defined in terms of per capita total consumer expenditure (PCTE) at 1973-74 market prices which was adjusted for time and across states for changes in prices.

Below Poverty line:
In India the BPL represents the demarcation beyond which the person is considered to be poor. The BPL is specified in terms of calories intake or in terms of the consumer expenditure. As per calories norms the food intake below the 2400 calories norms in rural areas are considered to be poor whereas in urban areas BPL refers to calories intake below 2100 calories.

BASIC countries discuss the policy on climate change

The 6th meeting of the Environment Ministers of the four BASIC countries namely, Brazil, South Africa, India and China are being held. It is to assess the post Cancun climate change policy and actions at the global and national level. The BASIC group was formed in Beijing in November 2009. Argentina, Algeria and Maldives were also been invited to this meeting. BASIC countries’ meeting is significant as it will be the first major international meeting of any group of countries since December, 2010 when Cancun Agreements were reached under the leadership of Mexico as the Chair of 16th Conference of Parties to the UNFCCC and Kyoto Protocol. In the run up to Durban in South Africa, where the next Conference of Parties will take place in December, 2011, the Parties are expected to finalize the rules and modalities for implementing the Cancun decisions. A meeting of the two Ad-hoc Working Groups of the Convention and the Kyoto Protocol is already scheduled in Bangkok in April this year to discuss the issues emerging from the Cancun decisions and decide on a work programme for actions.


The rules for international assessment and review (IAR) of the targets of developed countries and international consultations and analysis (ICA) of developing countries actions are also to be prepared and finalized which includes legal options for the outcomes in future. Issues related to the work of the Transitional Committee set up by the Parties to design the Green Climate Fund and operationalizing the Technology Executive Committee set up to facilitate the process of diffusion and deployment of climate friendly technologies also forms vital part of discussion. The ministers agreed that non-government experts from the BASIC countries to work for development of policy based on equity for a sustainable development before the Durban meet. The group also agreed that the guidelines for monitoring, reporting and verification mechanism for developing countries to be simplified like the way implemented in developed countries.

India continues to work closely to ensure a positive outcome at Durban and beyond, while advancing the interests of other countries and partners. The environment ministers from BASIC group (Brazil, South Africa, India, and China) endorsed for Cancun Agreements could not be a substitute for the Bali road map, which should continue to be the template for future work of the countries. The ministers were unanimous that the issues of equity, intellectual property rights and trade should go back to the negotiating table before the next climate conference slated to be held in December 2011 at Durban in South Africa. The ministers affirmed that second commitment period for Kyoto Protocol is the commitment to review mechanism for developed and developing countries. This would also target to emission reduction for all the countries including the developed world. This factor played a crucial role in reaching any agreement at Durban.

Highlights of Economic Survey 2010-11

Following are the highlights of Economic Survey 2010 – 11:
(a) Economy expected to grow at 8.6% in 2010-11 and 9 per cent in next fiscal
(b) Growth broad based with rebound in Agriculture, continued momentum in manufacturing and private services
(c) Fundamentals strong with Savings & Investments up, exports rising rapidly and inflation falling
(d) Agriculture likely to grow at 5.4% in 2010-11;
(e) Industrial output grows by 8.6% ; manufacturing sector registers 9.1%
(f) Exports in April-December 2010 up by 29.5 %
(g) Imports in April – December 2010 up by 19%
(h) Trade gap narrowed to US $ 82.01 bn in April-December 2010
(i) 59% rise in Net Bank Credit
(j) Social programme spending stepped up by 5 percentage points of GDP over past 5 years
(k) 9.7% growth of GDP at market prices
(l) Inflation expected to be 1.5 per cent higher than what it would be if we were not on growth turnpike
(m) Production of foodgrains estimated at 232.1 mn tonnes
(n) Forex Reserves estimated at US$ 297.3 bn
(o) Gross Fiscal Deficit stands at 4.8% of GDP down from 6.3% last year.

Reform Agenda: Economic Survey 2010 - 11
The following reforms have been suggested by Economic Survey 2010-11 for overall growth of economy.
(a) Better convergence of the Schemes to avoid duplications and leakage and to ensure benefits reach to the targeted groups.
(b) Private sector participation in social sectors, such as health and education in the form of public-social-private partnership could be one of the possible alternatives for supplementing the on-going efforts of the Government.
(c) Huge capacity addition in infrastructure in a time bound manner.
(d) Urgent need to streamline land acquisition and environment clearance for infrastructure projects.
(e) Bringing parity between the compensation package admissible under the Land Acquisition Act, 1894 and that applicable to land acquisition under the National Highways Act, 1956.
(f) A National Forest Land Bank, with clear paper work and titles to reduce approval time for forest clearance.
(g) Investment in building managerial and technical capabilities of executing agencies at par with the private sector is crucial.
(h) Second Green Revolution with technological break-through in agricultural sector.
(i) Prioritisation of targeted development of rainfed area and effective marketing links be ensured for better returns to the farmers.
(j) Further improvements in the Mahatma Gandhi National Rural Employment Guarantee Scheme suggested such as shifting to permanent asset building and infrastructure development activities, reducing transaction costs, better monitoring and extension of the scheme to urban areas.
(k) Efficient taxation of goods and services by a new GST.
(l) Need to explore avenues for increasing investment in infrastructure through a combination of power investment, PPPs and occasionally exclusive private investment wherever possible.

Economic Survey Prediction for Agriculture 2010-11
“Things are looking bright in the current year with a relative good monsoon and the agriculture sector is expected to grow at 5.4% as per the 2010-11 advance estimates (AE) . There is a marked improvement in the gross capital formation (GCF) also in agriculture sector.” This has been observed by the Economic Survey presented in the Lok Sabha today by the Finance Minister Shri Pranab Mukherjee. Underlining the importance of the agricultural sector in the Indian Economy, the Survey says that the agriculture sector needs to grow at 8.5% during 2011-12 to achieve the Plan target of average 4 per cent growth per year.

The Survey points out that the Increased Minimum Support Price (MSP) along with various other steps taken by the Government have resulted in higher levels of food-grains. While the economic cost of wheat and rice has continuously gone up, the issue price has been kept unchanged since 1st July, 2002. The country has made great strides towards increasing food grains production. In spite of that the agriculture sector is at a cross roads with rising demand for food items and relatively slower supply response in many commodities resulting frequent spikes in food inflation.

The Survey says that increasing agriculture production and productivity is a necessary condition not only for ensuring national food security but also for sustaining the high levels of growth. Concerted and focused efforts are required for addressing the challenge of stagnating productivity levels in agriculture. It suggests a holistic approach, including renewed agricultural research, dissemination of technology, better inputs such as quality seeds, fertilizers and modern irrigation facilities. Specially rice and wheat, the Survey says that given the constraints in area expansion there is a need for further research to boost production and productivity. Similarly, a technological breakthrough in pulse production is necessary to keep pace with rising demand. Significant increase in the area under sugarcane and cotton suggests some shift in the cropping pattern in Kharif 2010, the Survey observes.

Expressing concern over stagnation of capital investment in the sector, it says both private and public sector should enhance the investment in agriculture sector in a sustained way. A targeted development of rainfed area should be prioritized and effective marketing links should be ensured for better returns to the farmers. The Government should also encourage in food processing, cold chain and handling and packaging of processed food, the Survey says.

Taking a note of declining per capita availability of foodgrains, the Survey suggests thrust on horticulture products. In view of increasing pressure on livestock products due to rising level of income, a long term strategy should be evolved to increase the production of these items. It also says that the issue of efficient food stocks management of and uploading of stocks in time needs urgent attention.

Survey Calls for A Second Green Revolution
Recalling the pioneer work by agriculture scientists and farmers to achieve a breakthrough in the agriculture sector in the 1960s, the Survey observes that the country has not witnessed any big technological breakthrough in agriculture since then. The food safety net for each and every of the over a billion citizens requires enhanced agriculture production and productivity in the form of a Second Green Revolution.

The Survey points out that the country is likely to achieve a more production of wheat (81.47 million tonnes), pulses (16.51 million tonnes) and cotton (33.93 million bales of 170 kg each) this year in spite of drought in some States, cyclones, unseasonal and heavy rains and cold wave and frost condition in several parts. Still, special attention is required for achieving higher production and productivity levels in pulses, oilseeds, fruits and vegetables, which had remained untouched in the First Green Revolution but are essential for nutritional security. It suggests efforts to achieve high production of poultry, meat and fisheries.

Stressing on the development of infrastructure support in agriculture and allied sector, the Survey says that the relative weak supply responses to price hike in agriculture commodities, specially food articles in recent brings into the focus the Central question of efficient supply management and more investment in agriculture and allied sectors with the right strategies, policies and intervention.

Monday, February 28, 2011

Union Budget 2011-12

The Union Budget 2011-12 aims to sustain economic growth, strengthen infrastructure, moderate the price rise, particularly of agricultural produce and reduce social imbalances through inclusive development. Presenting the budget 2011-12 in the Lok Sabha February 28, the Finance Minister Shri Pranab Mukherjee said that the budget is a transition towards a more transparent and result oriented economic management system in India. He said while developments on India’s external sector have been encouraging, continued high food prices have remained our principal concern. He said that the trend revealed shortcomings in distribution and marketing system. The Finance Minister said that huge differences between wholesale and retail prices are at the expense of remunerative prices for the farmers and competitive prices for consumers.

For sustaining growth tax reform will continue with the Direct Taxes Code (DTC) to be operationalised from April, 2012 while a Constitution Amendment Bill is proposed to be introduced during the current session of Parliament as a step towards roll out of the Goods and Services Tax (GST). He said the introduction of DTC and GST will result in moderation of rates, simplification of laws and better compliance. The Finance Minister re-iterated the Government’s resolve to move towards direct transfer of cash subsidy to people living below poverty line in a phased manner. He said that the Nutrient Based Subsidy (NBS) has improved the availability of fertilizers and the Government is actively considering extension of NBS regime to cover urea.

Finance Minister announced a number of measures to strengthen the agricultural sector particularly in the areas of pulses, vegetables and oil palm . He announced Rs. 300 crore expenditure to promote 60,000 pulses villages in rain fed areas for increasing crop productivity and strengthening market linkages. He also proposed to spend Rs. 300 crore to promote oil palm plantation in 60,000 hectares and Rs. 300 crore for the initiative on vegetable cluster. Rs. 400 crore is proposed to be spent to improve rice based cropping system in the Eastern Region. Capital investment in fertilizer production is proposed to be included as an infrastructure sub-sector since investment in the sector is capital intensive.

The allocation for social sector has been increased by 17% to Rs. 1,60,887 crore which amounts to 36.4% of the total plan allocation. Bharat Nirman, which includes Pradhan Mantri Gram Sadak Yojana (PMGSY), accelerated irrigation benefit programme, Rajiv Gandhi Grameen Vidyutikaran Yojana, Indira Awas Yojana, National Rural Drinking Water Programme and Rural Telephony have together been allocated Rs. 58,000 crore. Remuneration for Anganwadi workers have been increased to Rs. 3000 per month from Rs. 1500 per month while the Anganwadi helpers will get Rs. 1500 per month. This will be effective from 1st April 2011 benefiting about 22 lakh Anganwadi workers and helpers.

The allocation on education has been increased by 24% to Rs. 52,057 crore. Sarva Shiksha Abhiyan gets Rs. 21,000 crore which is 40% higher than the previous year’s allocation of Rs. 15,000 crore. The Finance Minister also proposed to introduce a scholarship scheme for needy students belonging to the Scheduled Castes and Scheduled Tribes studying in classes IX and X. It would benefit about 40 lakh students. Plan allocation for Health has also been increased by 20 per cent to Rs. 26,760 crores. The Rashtriya Swasthaya Bima Yojana will be extended to the unorganized sector workers in hazardous mining and associated industries.

Underlining the need to strengthen Public Sector Banks (PSBs) the Finance Minister proposed to provide Rs. 6000 crore to maintain tier 1 capital to risk weighted asset ratio. He also proposed to infuse Rs. 500 crore into Regional Rural Banks (RRB) . A Women’s Self Help Groups Development Fund with a corpus of Rs. 500 crore is proposed to be created. He also proposed to create a micro finance equity fund of Rs. 100 crore with Small Industrial Development Bank of India (SIDBI) for providing equity to smaller micro finance institutions. Rs. 3000 crore will be provided to NABARD to help handloom weaver cooperative societies to become financially viable.

Interest subvention of 1 per cent on housing loans will now be available for loans upto Rs. 15 lakh where the cost of house does not exceed Rs. 25 lakh. The present limit for the loan amount is Rs. 10 lakh while the cost of the house should not exceed Rs. 20 lakh.

The total plan expenditure has been increased by 18.3 per cent to Rs. 4,41,547 crore and the non-plan expenditure increases by 10.9 per cent to Rs. 8,16,182 crore. The gross tax receipts are estimated to grow by 24.9 per cent to Rs. 9,32,440. Rs. 2,01,733 crore will be transferred to the Sates and UTs as plan and non plan transfers. This also marks a rise of 23 per cent over budget estimates of last year. The fiscal deficit is estimated at Rs. 4,12,817 crore which works out to 4.6 per cent of the GDP.

Turning to the direct taxes, the Finance Minister proposed to increase the exemption limit for general category individual tax payers by Rs. 20,000 to Rs. 1,80,000 per year. This will provide a uniform tax relief of Rs. 2000 to every tax payer of this category. The benefit for senior citizens will now be available at 60 years of age and the exemption limit will go up from Rs. 2,40,000 to Rs. 2,50,000. Those who are 80 years and above have been brought under a new category called very senior citizens and the exemption limit in this category will be Rs. 5 lakhs.

The minimum alternate tax rate has been hiked from 18 per cent to 18.5 per cent of book profits. Developers of Special Economic Zones as well as units operating MAT in SEZs have been brought under MAT. Tax benefit for investment in long term infrastructural bonds will continue for one more year. Income from foreign subsidiaries of Indian Company will now attract a lower tax of 15 per cent tax on dividends.

Turning to indirect tax, the finance Minister said that there are 370 items that enjoy the exemption from Central Excise Duty but are chargeable to VAT. He proposed to withdraw the exemption on 130 of these items. The remaining 240 items would be brought into the tax net when GST is introduced. A nominal 1 per cent central excise duty is being imposed on 130 items. The basic customs duty has been reduced from 30 to 5 per cent on raw silk, from 5 to 2.5 per cent on certain textile intermediates and from 7.5 per cent to 5 per cent on certain inputs for manufacture of technical fibre and yarn. Stainless steel scrap has been fully exempted from customs. Export duty on iron ore has been increased to 20 per cent ad valorem both for lumps and fines. The basic customs duty on pet coke and gypsum has been reduced 2.5 per cent to give relief to cement industry.

On the service tax front a few new services have been brought under tax net. Hotel accommodation in excess of Rs. 1000 per day and service provided by air conditioned restaurants with licence to serve liquor have been brought under the tax net. Service tax on air travel has been raised by Rs. 50 in case of domestic air travel and Rs. 250 on international journey by economy class. Services provided by Life Insurance Company in the area of investment and some more legal services have also been brought under tax net.

Finance Minister said the proposals on direct taxes are estimated to result in a revenue loss of Rs. 11,500 crore while those on the service tax will yield Rs. 4000 crore more. The Finance Minister has kept the disinvestment target at Rs. 40,000 crore for the coming year. He, however, reiterated that the Government is committed to retain at least 51 percent ownership and management control of the CPSUs. He said that as an emerging economy India stands at the threshold at the decade which presents immense possibilities. He said we have the voice on the global stage and we must not let the recent trends and tensions hold us back from converting these possibilities into realities.

Union Budget 2011-12 Highlights:

· Critical institutional reforms set pace for double-digit growth
· Scaled up flow of resources infuses dynamism in rural economy
· GDP estimated to have grown at 8.6% in 2010-11
· Exports grown by 9.6%, imports by 17.6% in April-January 2010-11 over corresponding period last year
· Indian economy expected to grow at 9% in 2011-12.
· Five-fold strategy to deal with black money. Group of Ministers to suggest ways for tackling corruption
· Public Debt Management Agency of India Bill to come up next financial year
· Direct Tax Code (DTC) to be effective from April 01, 2012
· Phased move towards direct transfer cash subsidy to BPL people for better delivery of kerosene, LPG and fertilizer mooted
· Rs.40,000 crore to be raised through disinvestment in 2011-12
· FDI policy to be liberalized further
· SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirement
· FII limit for investment in corporate bonds in infrastructure sector raised
· Additional banking license to private sector players proposed
· Rs.6000 crore to be provided in 2011-12 for maintaining minimum Tier I Capital to Risk Weighted Asset Ratio (CRAR) of 8% in public sector banks
· Rs.500 crore to be provided to regional rural banks to maintain 9% CRAR
· India Microfinance Equity Fund of Rs.100 crore to be created by SIDBI
· Rs. 500 crore Women SHG Development Fund to be created
· Micro Small and Medium Enterprises MSME gets boost as Rs. 5000 crore provided to SIDBI and Rs.3000 crore to NABARD
· Existing housing loan limit enhanced to Rs.25 lakh for dwelling units
· Provision under Rural housing Fund enhanced to Rs.3000 crore
· Allocation under Rashtirya Krishi Vikas yojna (RKVY) increased to Rs.7860 crore
· Allocation of Rs.300 crore to promote 60000 pulses villages in rainfed areas
· Rs. 300 crore vegetable initiative to achieve competitive prices
· Rs.300 crore to promote higher production of nutri-cereals
· Rs.300 crore to promote animal based protein
· Rs.300 crore Accelerated Fodder Development Programme to benefit farmers in 25000 villages
· Credit flow to farmers raised from Rs.3,75,000 crore to Rs.4,75,000 crore
· Rs.10,000 crore for NABARD’s Short Term Rural Credit Fund for 2011-12
· 15 more mega food parks during 2011-12
· National food security bill to be introduced this year
· Capital investment in storage capacity to be eligible for viability gap funding
· 23.3% increase in allocation for infrastructure
· Tax-free bonds of Rs.30,000 crore proposed by government undertakings
· Environmental concerns relating to infrastructure projects to be considered by Group of Ministers
· National Mission for Hybrid and Electric Vehicles to be launched
· 7 Mega clusters for leather products to be set up
· Allocation for social sector increased by 17% amounting to 36.4% of total plan allocation
· Bharat Nirman allocation increased by Rs.10,000 crore
· Rural broadband connectivity to all 2.5 lakh panchayats in three years.
· Bill to amend Indian Stamp Act to introduce. Rs.300 crore scheme for modernization stamp and registration administration
· Significant increase in remuneration of Angawadi workers and helpers
· Allocation for education increased by24%. Rs.21,000 crore allocated for Sarv Shikshya Abhiyan registering an increase of 40%
· 1500 institute of higher learning to be connected by March 2012 with Knowledge Knowledge Network.
· National Innovation Council set up. Additional Rs.500 crore for National Skill Development Fund
· Plan allocation for health stepped up by20%
· Indira Gandhi National Old Age Pension Scheme liberalized further
· Rs.200 crore for Green India Mission
· Rs.200 crore for cleaning of rivers
· Rs.8000 crore provided for development needs of J&K
· 10 lakhs Aadhaar(UID) numbers to be generated everyday from 1st October
· Fiscal deficit kept at 4.6% of GDP for 2011-12
· Income Tax exemption limit for general category in individual tax payers enhanced from Rs.1,60,000 to Rs.1,80,000
· Qualifying age for senior citizens lowered to 60; senior citizen above 80 year to get Rs.5,00,000 IT exemption
· Surcharge on corporate lowered to 5%