SlideShare a Scribd company logo
1 of 36
Download to read offline
Land survey in Seventh Plan
SO.5 MILLION. HECTARES of land is proposed to be surveyed
during the Seventh Five-Year Plan. Out of this, detailed soil surveys will be
undertaken on 25 lakh hectares, priority delineation surveys on 400 lakh hectares
and reconnisance surveys on. 80 lakh hectares. In addition, sample soil surveys
will be conducted in 6,000 blocks at an estimated cost of Rs. 10 crore.
Till 1983-84, priority delineation surveys had been accomplished on 54.43
million hectares and detailed soil surveys on 7.2 million hectares. Sample soil
surveys had also been completed in 4,710 blocks. In the financial year 1984-85,
50 lakhs hectares would be covered by priority delineation surveys and 3.67 lakh
hectares by detailed soil surveys. Sample surveys would also be undertaken in
980 blocks of 64 hectares each. The expenditure on the project is estimated at
Rs. 97 lakh.
The major responsibility of the All India' Soil and Land Use Survey,
which functions through four regional centres and three sub-centres, is to carry
out priority delineation surveys !n the 36 catchments of river valley projects and
flood-prone rivers covered by two Centrally-sponsored schemes. The
organisation has established a Remote. Sensing Centre in collaboration with.
UNDP/FA'O. It also collaborates with the Indian Space Research Organisation,
the Space Application Centre and the National Remote Sensing Agency.
During the Seventh Plan, the scheme for creating new soil survey
organisations and strengthening the existing ones, initiated during the Fifth Plan
but transferred to the State sector during 1979-80 on the recommendation of
the National Development Council, is also proposed to be revived and extended to
the States with 50 : 50 matching allocation between the Centre and the States.
An outlay of Rs. 3 crore has been proposed in the Plan for this purpose. 0
YOJ'ANA
Volume .291Number 6 •
April I-IS, 19851Chaitra 11-25, 1907

DR. V.R.M. DESAI 4 How economy performed ,under
Mrs. Indira Gandhi
HARBHAJAN SINGH 7 Why urban economic ineq1,1ality?
"
.;
K. D. NAUTIYAL AND 10 What price this development?
G N. PANDEY
•
SREELEKHA BASU 13 Floods and water management
H. SEETHARAMA RAO
VASANT SATIIE
18
20
Devolution of more funds to
States
The alternative'
. G. NARAYANA REDDY 25 Youth in rural developme?t
..
G. RA VINDRAN NAIR
---~
30 Why non-formal edufation !
Chief Editor-R. Thukral . Editor- B. K. Dhusiar. Assistant
Editor-KamleshMackreU' : Correspondent-M. Yunus Siddi-
qui: Suh-Editor-Mangal Sen, Senior Corresponden~l
Ahmedabad. V. G. Deshpande, Bombay :Smt. V. M. JOShi,
Calcutta . B: K. Chakravarty, Hyderabad : S. V. Sripati Rao,
Madras: 'D. Janak, Trivandrum : N. Kesavan Nair, Gauooti:
Biraj Dass : Business Manager; L R. Batra.
Yojana seeks to carry the mess'lge of the plan to .all sections
of the people and promote a more earnest diScussion' on
problems of social and economic development. Although
published by the Ministry of Information and Broadcasting,
" OjlOi'& is not restricted to expressing the official point of
. v:ew. YG;~na is issued. every fortnight in Assamese, B(>ngali,
English, (iujarati, Hindi, Malyalam.lfaralhi. Tamil, Tdug1.1
and Urdu.
Editorial Office : Yojana Bhavan Parliament Street, New
Delhi-llOOOI, Telegraphic Address: Yojana New Delhi.
Telephone : 383655, 387910, 385481 (extension 402 and
373). .
For new subscriptions. renewals, enquiries please contact :
The Business Manager, Publications DivisioD,Patiala House,
New Delhi-IlOOOl.
Our conpibutors'
Dr. V. R. M. Desai-Freelance -Journalist, Bom-
bay; Harbbajan Singh-Lecturer, Khalsa College,
Dellii University, Delhi; K. D: Nautiyal and G. N.
Pandey..,.-Joint Director and Senior ,Research Officer
respectively, State Planning Institute, Luckriow (UP);
Sreelekha Rasu-Director, Statistics, Central Water
Commission, New :Qelhi;....H. Seetharama Rao--Spe-
cial Correspondent, PTI, New Delhi; Vasant Satbe-
Union Minister of Steel, Mines and Coal, New Delhi;
G. Narayana. Reddy-Asstt. Director, National Insti-
tute of Rural Development, Hyderabad; and G.
Ravindran Nair-Freel8,nce Journalist, New Delhi.
--~---------------------Subscription : Inland : One year Rs. 30, Two years Re. 53.
Three years .RI. 75.
•
..
.How economy performed under
Mrs. Indira Gand.hi
Dr~ V.R.M. Desai
Mrs. Indira Gandhi's regime witnessed a
tremendous leap of economic development
through a ptanned economy, says'the author.
The full impact of her various programmes
'can be ~een in bringing a large portion of
people above the pove!'ty line. The author
observes that the IRDP Programme is the
greatest contribution of Mrs. Gandhi in
mitigating the sufferings of the poorest
among the poor.
THE FORMER .PRIME MINISTER, Mrs Indira
Gandhi dominated the Indian scene .for nearly
two decades. Her . contributions to the
Indian eco;llOmy are significant and remark-
able. An enquiry into the impact she made on
Indian economy is, therefore, both natural and fruit-
ful. A thorough: investigation of the subject will have
to concern itself with various facets of the national
life, economic, polltkal social, cultural and scienti-
fic.
Mrs. Indira Gandhi took over reigns of Govern-
ment on January 24, 1966 as the third Prime Minis-
ter of India consequent to the sudden death of
Lal Bahadur Shastri at Tashkent. When :Mrs. Indira
Gandhi. b,ecame Prime Minister the times were
just trying. The economy was in shambles, Famine
stalked the land. Under her stewardship,India became
self-sufficient in foodgrains. Significant advances were
mad~'in nuclear enef'gy, oil production, space and polar
exploration.
4
,
Economy gets new direction
On the economic front, she was instrun:.ental in in-
troducing social control on banks in 1968. It was
she who gave a new direction to the Indian econol~y
in moulding the financial institutions as catalytIc
~gents for promoting economic development for the
welfare of the masses. In 1969, the major 14 banks
in India were nationalized with a view to miling
the banking industry' an instrurnent in bringing social
and econorrdc change.
It was the policy guidelines issued by the Gbvern-
ment of India under the able leadership of Mrs.
Indira Gandhi that has enabled most of the banks to
play an effective role. in mitigating the pangs of pov-
erty in India. Six commercial b&n.1<,swith deposits
over Rs. 200 crores and 'above were nationalized by
an Ordinance in 1980. She was the architect of the 10
Point Progranune to help the weaker sections of the
society.
Real incomes up
The average Indian is certainly better off noW than
in 1966. His real in<;ome today is 40 per cent mare
tban in 1966. Per capita consumption of cereals,
edible oils and vanaspati and milk grew rapidly dur-
ing her_period. Social indicators in regard to health
showed substantial improvement.- Literacy went up
from 24 per cent to 36 per cent. The 'consumption
of electricity in the a.verage household hao; trebled
from 24 to 75 miits. '''hat is more, television has
made a very rapid headway after 1968-69. In fact,
the country made an entry into an electronic and
computer age. All this in spite of an unchecked rise
in lXlpulation from less t11an 500 million to around
72 5 million!
YajS1!l3, Apri11-15, 1985
High lights
* During the 16 years of Indira Gandhi's period
of Prime Ministership, real gross national
product w~nt up at an annual average rate
(compound) of 4.4 per cent. Currently, the
Indian economy is definitely witnessing a
growth rate of 5.0 per cent per annum. The
step-up in the annual average growth rate is
the mOst important economic gain during the
Indira Gandhi era. .
* Though it began with Q: severe drought in food-
grams production, but ended with a sequence;
of record bumper harvest~. DUling the three
years from 1982-83 to 1984.-85 per capita
fOod supplies would be above 470 graunnes
as compared with 450 grammes from 1962-
63 to 1964-65. -
* The gross irrigated area went up du'ring the
Indira Gandhi period from 31 mIllion hectares
in' 1965-66 to 63 million hectares by 1984-85
- ..:--~lOOper cent increase in 19 years, the
bulk of the increase occuring'during 1974-75
to 1984-85.
• Fertilizer consumption (NPK) was barely /
80,000 tonnes in 1950-1951 and by 1965-66,
it bas gone up to about 8lakh tonnes. By 1984-
85; it bad risen to about 7.8 million tonnes, a
nearly ten-fold increase in 19 years.
* Nearly 52 million hectares were under the-
, high yielding varieties in 1984-85.
'" In industry, the annual rate of growth WtS
about 5 per c:ent. Industrial capacity growth
seems to be higher at 5.5 per cent. While, coal
production went up by 117 per cent, cem~nt.
production increased by threefold, finished
steel went-up by two-fold, electricity increased
by fivefold and production of crude oil
increased.
'" In transport, the rate of annual growth was
at 3 per cent, road transport and air trans-
port witnessed acceleration. '
* Nominal interest rates moved up significant-
ly and numerous tax concession came to be
accorded to the savers.-
* The eXternal assistance in 1966-1967 was 4.5
Ref cent of GNP and external debt by i967-
1968 formed 27 per cent ot the GNP. By
1983-84 the former had come down to 1.5
, me, whidl is unique in its nature in attempting to
, solve the problems at the family level, is the greatest
'contributiOn she made fu mitigating the sufferings of
the poorest among the poor.
In conclusion, the Indira Gandhi era had witnessed
a tremendous leap and surge of economic develop-
me,nt through a planned economy. of which the pub-
lic sector is a keynote. This in itself is a tribute to
the wisdom of Indira Gandhi.
The number of. small industries multiplied more
tillin six-fold during this period and this has proved
a dynamic and vibrant sector of industry; contribut-
ing more tfu¥1 Rs. 2,000 crores to exports, and pro-
viding more employment than large industries. Mrs.
Gandhi has left the economy with enough wind to
keep running, indeed to pick up pace in the peIiod
ahead. .
Food _productiqn up
Foodgrains production more than doubled from
72.3 million tonnes to 152 million toD.I.les.The pcr
hectare yield of major crops showed substantial im-
provement. Net irrigated area rose from 26.3 million
hectares to 41.5 million hectares. Following the
adoption of new agricultural strategy in the' 1966 .
kharif, there has been revolution ill inputs in Indian
'agriculture, which increased much more rapidly than
output. Between 1965-66 and 1984-85, the annual
rate of increase in the area under high yielding varie-
ties and pesticides were phenomenal. Fertilizerg, oil
engines and electric pumpsets and tubewells also
ea,me to be widely used. The public sector expendi-
tUre on agricultural research and education rose sub~
stantial1y at the annual rate of 29:4 per cent, com- ~
pared to only 14.7 per cent iJ! the ,first period
(1950-51 to 1965-66). Industrial production register-
ed an annual growth of 5 per cent. Industries sUch
as chemical and chemical products, petroleum pro-
du~ machine tools, non-electrical machinery show- .
ed i much higher growth than the average growth for ~
all industries. On the other hand; the trade deficit ~
gone up by about nine' times. The external value of
,l)1pee depreciated considerably. While, wholesale
price index increased by 8.9 per cent, the consumer
price index rose by 7.9 per. cent per annum.
Majoribanks!nationalised
Bank nationalization also resulted in the funda-
mental shift fro~ class banking to mass banking. The .
banking network reached out to' the poor and into the
hinterland. Of the 36,261 branches o~ned by the .
commercial .banks since July 19, 1969,. upto end-
March 1984, 22,766 offices or 62.8 per cent were,
located in unbanked centres. The proportion of bank
offices in rural/areas stood at 55.6 per cent of total
bank offices in India. Deposit growth gathered mo-
mentum and grew at all annual growth of 18.2 per
cent. And, ordinary farmers, road transport opera-
tors, small industrialists and the self-employed trebl-
ed their share in total bank loan& tc;>38 per cent.
The small scale industries and 'agriculture are im-
portant components of the priority sector, constitut-
ing about 70 per cent of priority sector advl'..nces.This
rapid transform~tion of a primary economic institu-
tion must rate as front-ranking achievement.
The leadership given by Mr. Indira Gandhi has
, really strengthened the banks and motivated them to
. go in. a big way in helping the most unfortunate sec-
tions of people in this country. The IRDP Program-
Yojana, April 1-15, 1985
5
Growtb rates: key indicators
per cent of GNP and latter to 16.9 per cent
of the GNP. ~In 1967-1968, debt servicing
charges were 18 per cent of "current ~~ccount
receipts and by 1983-84, they constituted
about 7.6 per cent of the receipts.
* Punjab, Haryana, Maharashtra, Andhra Pra-
desh, Gujarat, Uttar Pradesh, have been show-
ing higher growth rates h~gher thc..n popu-
lation growth rate. .
.* Inflation too showed an upward trend dur-
ing the period despite fiscal discipline.
* The special emphasis in policy during Mrs.
Indira Gandhi's period seems to have been
~n social justice. Tliis was sought to be imple-
mented through a number of anti-poverty pro-
grammes, special schemes and me€~sures for
tribals and the scheduled castes, discrimina-
tory bank .loans based on the criteria of low-
size, the self-employed, neglected sectors etc.
Since during the past decade food supplies
have been rising the national rural employ-
ment scheme has been formulated. Minimum
needs progr~mmes have been brought in. To-
gether the full i!TIpact of all this has to be
seen in the movement of the proportion of
people below the poverty line.
/
Selected Indicators
Area.
Irrigation. . . .
Area under High Yield variety
. Furtiliser Consumption .
Pesticides Consumption
FARM MECHANISATION
Tractors .
Oil Engines
Electric Pumpset , . .
Electricity Consumption in agriculture
Foodgrains production • .
Per hectare yield. .
Industrial Production .
Exports
Imports
BANKING
Branches
Deposits .
Credit
Priority Sector
PRICES
Wholesale Prices .
Consumer Price Index .'
NATIONAL INCOME
Real National Income.
Per Capita Income .
Gross Capital Fonnation
Gross Domestic Savings
Net Savings
6
Average Annual
Growth between
1950-51 1965-66
& &
1965-66 1984-85
1.3 0.6
2.1 2.8
20.7
17.6 13.5
7.0 14.1
12.7 15.2
. 13.9 11.8
23.7 12.9.
16.0 13.3
1.8 4.0
1.3 3.4
7.6 4.5
2.0 14.8
5 3 14.0
3.6 10.8
8.4 18.2
9.8 17.4
37.2 '
2.9 8.9
3.6 7.9
3.3 3.9
1.2 l,.6
.10.7 13.8
9.5 14.2
9.6 14.5
,Record production by Rashtriya
Chemical Fertilizers
THE RASHTRIYA CHEMICALS AND FERTI-
LIZERS (ReF), a public undertaking under the
Ministry of Chemjcals and Fertilizers, has achieved
production and t:xceeded the production targets record
during April 1984-January 1985. -
During'this period, the total production of Nitrogen
at 247164 metric tonnes exceeded the target by 5
per cent.
The production of phosphate at 83486 metric ton-
neS and potash at 35145 metric tonnes were 4 .per cent.
and 6 per cent higher than the targets fixed for theso
months.
The company produced 32919 'metric tonnes of
methanol during this period exceeding the target by
11.4 per cent. .
Another significant achievement of the company
has been the cap'acity utilisation of 91 per cent d
nutrients during the period. In the case of methanol
1he capacity utilisation has been 109.7 per cent.
The production records during these 10 months
have been a considerable increase over the corres-
ponding period last year. In the case of nitrogen the
increase has been 2.6 per cent, phosphate. 7.6 per
cent and potash 6.4 per cent. .
The ThaI Super Fertilizer Project of the RCF, con-
sisting of two ammonia plants of 1350 metric to'nnes
per day each and three urea plants of 1500 metric
t(mnes per day each is already completed. The trial
production from the first ammonia plant has already
st~rted. The plants have been commissioned in re-
COl'dtime and without any cost over-run. 0
Working group on 20-point programme
MINISTRY OF PLANNING has set up a 20-
Member Working Group' to study the development of
indicator~lindices for tracking the progress of new
20-point programme. Dr. K. C. Seal, :Qirector..General,
Central Statistical Organisation (CSO) will be the
Chairman and Dr. P. P. Sangal, Additional Director,
CSO th~ Member Secretary of the Working Group.
The Working Group will take stock of the present
work being undertaken by the State Governments and
Central Ministries and would make conc....rete recom-
mendations for development of suitable indicators I
indices relating to the 20-Point Programme.
.The Working Group has been set up in pUr8.uance
of the recommendations of the Sixth Conference of
Central and State Statistical .Organisation (CSSO).O
Yajana, April 1-15, 1985
•
There is a greater need to understand the
various force$ strengthening the economic
drift to grapple with the ever widening in':
equality of income of the people. It seems
the firtn commitment by the government
regarding 'Justice. social. economic and
political Equality of status. opportunity"
and income " are not only conveniently
forgotten Qut even the honest protestations
are hardly made. laments the author.
ECONOMIC INEQUALITY IS .ONE of the most
striking features" of our pattern 'cf living-unequal
distribution of wealth and income being it.s two broad
facets. The inequality once g~nerated tends to perpe-
tuate and widen itself. Consequently, a vast majority
of people just manage to survive in conditions of ab-
ject poverty, a few privileged ones wallow in the lap
of extravagance.
Magnitude inequality..,
The development economists suggest that the in-'
equality continues to increase until the weight of non-
agricultural sector reaches 60 to 70 per cent of the
total labour force. The leaders of fudependent India
were alreadY aware of this socio-economic challenge.
They percei~edthe consequences of the increase in C1C
magnitude ot econon:ic inequality as a result of the
combin~d effects of the proposed organisational struc-
tural and institutional changes. They, therefore, sought
to give dear directions in the Constitution of India it-
s~lf. The preamble sets before us an ideal of social jus-
tice. The pirective Principles of State Policy enjoin
upon Parliament to pursue a clearly demarcated
Why urban economic
inequality?
Harbhajan Singh
course that would be conducive to social and econo:.
mic uplift of the country as a whole.
When the framer,s of national development priorities
embarked upon the experiment of democratic planning
in the early fifties, they were clear about the goals.
They aptly formulated, am(mg others; the two main
objectives of the planning, that is (1) to increase pro-
duction in oroer to achieve higher levels of living and
(2) to reduce inequalities in wealth and income so that
"the operation of the economic system does not result
in concentration of wealth and means of production
to the common detrimerit." It was envisaged that the
development in agriculture and indu,strialisation of the
economy would lay a firm base for future increase in
productivity and the emerging reward structure would
be largely equitable and, thus, based on social justice.
In this connection it was thought that the 150 years'
experience of industrially advanced econdmies regard-
ing economic development and equitable distribution
would be of immense help and guidance. Alas, this
dream stands shattered on both the counts.
". ) Slow and misconceived growth
The pace of economic growth in India has been slow
and rather misconstrued. The comprehensive land re- "-
forms have not been rigorously implemented. This wor-
sened the situation for the rapidly growing poor. Those
who do not have 'natural' access to work on land or
other productive as,Setsare either forced to migrate to
urban areas in s.earch of jobs or reconcile themselveg
as landless workers. The gap between the owner far-
mers and the share-croppers has suddenly started
widening with the introduction of technological inno-
vation,S by the former. rise in population pressure
among the latter and the phenmr.cnal inflation affect-
ing both in sharp contrast.
Rural to urban migration largely takes place through
the migrants' entry into the informal urban sector
Yojana, April 1-15, 1985
29 DPD/84-c2
•
•
7
because a very large proportion of these distress mig-
rants are unskilled, illiterate and devoid of achievement
- motivation. The bulk: of the urba,n population consti-
tutiS the ignorant, illiterate, downtrodden, supersti-
tiou,s and extremely poor people. Extreme poverty ac-
companied by high incidence of unemployment and
lack of any social security provision whats'oever, often
converts their poverty into a state of complete desti-
tution._i:~~;li~.~
The competitive characteristic of the urban infor-
mal sector provides more equitable distribution of in-
come within the sector at an inadequate and stagnant
standard of living. On the other hand, the oligopolistic
and privileged modern sector exhibits a very large
magnitude of economic inequality within it; The widen-
ipg income differentials between the urban informal
sector and the modem sector continues to cause a
deterioration in the distribution of personal incomes.
Moreover, the rules and the institutions which deter-
mine how the people constituting the urban infomlal
sector get work, are hardly operative. Largely through
the efforts of their inmates they get em~loyed in man-
ml, unskilled, irregular and casual jobs. Tn the latter
case, they work on daily-wage basis wherein neither the
tenure nor the place of work is fixed and generally
they move from place to place, from jobs to jobs and
from one employer to another in search of jobs. Being
mostly unorganised they face unstable' working condi-
tions and are often discriminated against. The work
offered involves little on-tne-jobs training and, there-
fme, even after years of experience these workers re-
main totally unskilled-and, therefore, their future pros-
pects remain bleak.
Inadequate employment statistics of
the unskilled
Besides, in large scale manufacturing units, a nefa-
rious practice has ~ome to ,c;tayin a very big way, that,
is, a large proportion of the jobs in these factories are
accomplished through contractors who bring their Own
labour. Although these workers may have continuous-
.ly served the premises for long, they are never repefted
to. be. on the rolls -of ~he factory. Thus, the statistical
returns submitted to the government departments, par-
ticularly the Annual Survey 'OfIndnstrie~, remain gros-
sly inadequate as far as employment statistics of the.
unskilled labour arc concerned. Any accident, minor
or fatal, befalling these unfortuna~e victims is none of
the responsibilities of the managements of these units.
Since these units deal with the contractors direct, they
refuse to be accountable for such misllaps. Thus, the
artefact to cover the day-to-da~ accidents and subse-
quent legal-cum-laboUr complications thereof, spells
an inescapable doom far those whose precarious econo-
mic conditions entrap them into this inhuman capti-
vity. The situation gets further tangled on these labou-
rers' accepting advance from the contractor in order to
temporarily relieve themselves of tlle distress situation
which are so frequent among these miserables of the
urban informal sector.
s
••
A little close to the gro,c;slyinadequate and stagnant,
Jiving conditions of the urban informal sector starts
the lowest among the lower middle category beginning
with wayside vegetables and fruit hawkers and unskil-
led employees working in the private corporate sector,
government departments and public undertaking's. They
are fcrlIowed by petty shopkeepers, small producers,
primary school teachers, technicians, repairers, par~-
engineering personnel, para-medical personnel, retaI-
lers and small manufacturers,. A fairly large number
of these are self-employed. One dominant character-
istic of these self-employed is that their earnings are
an amalgam of the reward,s accruing to their labour
and capital invested by them. They too are hardnp as
compared to the privileged category.
The state of privileged ones
,The privilege category includes big entrepreneurs
and s'enior administartive, higher technical and pro-
fessional employeees. They generally possess markedly
superior education, training and experience. Most of
them have undergone such training in the 'modern
techniques of production as are scarce and hence
highly rewarding. In the process of education and
training at prestigious educational institutions and
through mass communication media exposures at
homes, most of them acquire scientific out-look, get
socialised and imbibe cultural refinements ..Because of
their superior qualities, both of 'nature' as well as
'nurture', they either engage themse1ve3 in or get
selected for the top jobs. These jobs are not only
highly rewarding at the initial entry points but, also
offer bright promotional a,:enues, better working condi-
tions and more of security orten being reinforced by
stronO' professional associations. By virtue C1f their
statu~, wealth and political power they dominate in
every sphere of life. i •
In this category the entrepreneurs engaged in trade,
commerce and m:mufacturing need special mention.
Their continuous' prosperity dates back to the shortages
in the consumers' good during the days of the second
world war and the partition of the country. Price con-
trols were reinforced to combat these acute short-
, ages. The shortage gave birth to new shortages which
led to new price controls. Inflation stOod ;nmpant.
"''hile the controls stimulated large scale blackmar-
ketinO' the inflation resulted in a direct transfer of in-
comefrom the working class to the entrepreneurs and
the self-employed. Thus, economic inequality increased:
The development programmes initiated durinQ the five
year plan aggravated economic inequality. The pr<1-
cess of economic development entailing iduced COn-
sumption and induced investment has widened
the economic inequ'ality. In order to meet this addi-
tional demand for goods and services, the cntrepre-
'ncnrs who were able to undertake initial investment
received facilities and incentives to expano their units
and thlus grew rich. Such as' did not possess the re-
quisite capita! or did not do so slided back. Thus,
the gap _between the rich and the poor furt.her wi-
dened with the passage of time. '
Y0'lana, April 1-15. 1985
••
Moreover the demand for goods and services creat-
ed by the flow of strikingly uequal incomes has drawn
resources away from the production of essential con-
sumers' goods to the prestigious luxury items. The
production of these items obviously requii'ed a higher
degree of mechanisation leading to a higher ~atio of
profits to wages and a consonant pattern in the ratio
of executive salaries to workers' wages. And this
has resulted in the creation of fewer jobs wih a given
magnitude of investment.' Also the increased demand
for conspicuous consumption has resulted in, the
continuous profitability of low priority invcstn:ent.
Ineffective controls
The controls are generally not properly enforced.
This leads to new avenues for corruption, smuggling
and blackmarketing. By bribing politicians, immunity
from law is claimed. Tl1e entrepreneurs have been
evading taxes and excise du~y in a big way. They
obtain licences, credit facilities and large number of
other, favl;)urs by bribing the bureaucrats and the
members of the mling parties at centre and states.
The government policies have systematically and
continuously favoured these and other professional
entrepreneurs. The black marketeers, sm~~glers,
hoarders and other criminals have their political
patrons. So much so that they are received as impor-
tant chief guests at the most prestigious social and
religious functions. There is no stigma, whatsoever,
against these people. Thi,s is how the growing eco-
nomic power is being captured to subvert political
power at all the levels-centre, states and local bodies.
The entire economy thus. presents an ugly picture
of gross IrJsrule and miscons trued economic. planning.
Inst~ad of rapid and systematic agricultural deve-
lopmentand rural reconstruction calling for suitable
or~nisational, stmctural and institutional changes,
substantial industrialisation by comI]Jissioning inter-
mediate technology, the development strategy has
remained highly capital intensive' and urban-industry
oriented, notwithstanding some ad-hoc and piecemeal
measures for poverty eradication, rural. reconstmction
employment generation, etc. These measures left
much tb be desired. Moreover, import substitution
syndrome, relative neglect of agriculture, llfphazard
rural development programmes and colo.ssal wastage
or' skilled human resources .led to further deteriora~
tion in the system. The gradually expanding public
sector rcmained highly centralised and it has done
little to change the distribution of income. On the
other hand, it has been used by the vested interests
to reinforce their positions, and, thus aggravated -the
income inequality.
Ever growing inequality of income
Despite significant growth in some sectors of the
economy during the post-Independence period, there
is little controversy ab0ut the existence, perpetuation
and widening of economic inequality in the country,
particularly in ,urban areas. It is here that the dyna-
mics of change has most vividly been felt, The Report
- Yojana, April 1-15, 1985
of the ColliIcittee on Distribution of Income and
Lev~~ of Living remarks, "The Wide range of vari~-
tion that one finds between the top and the bottom
tenths of the population clearly reveals the existence
of concentration of economic power in the country
in its most' generalised form". The Fourth Five Year-
Draft outline also admits, "Another area where our
effort has so far been feeble and halting; is in narro-
wing the disparities in income and property owner-
ship". A study conducted by the National Council of
Applied Economic Research ob.serves that the bottom
50 percent of the h,ouseholds in India accounted for
. a mere 21 percent of income in 1975-76. In the same
year the top 10 percent of the households received
as much as 34 per cent of the incom'C.A World Bank
Study based on the data collected from 66 countries
during the period 1950~1971 corr:.pared the shares
of income accruing to the bottom 50 percent and
the top 5 per cent of the households. In India it was
1~ per cent and 25 per cent l~~~ectively. The corres-'
- ponding figureI' for Pakistan were 28 percent and 18
percent; for Bangladesh these were 27 percent and
17 per cent and for Sri Lanka, these were 25 per cent
and 19 per cent. Hence, it appears that income ineqqa-
lity in India is more acute than in the nei,ghbouriI)g
countries and the imbalance within. the country has,
perhaps, steeply deteriorated during the last few
years. Be~des, the earlier firm commitme~ts by the
government regardinp; "Justice, social, eeonomic and
political.. ... Equality of status and opportu~nity..: ... "
are not only conveniently forgotton but even the
honest protestations about redistributive .lntentions
arc hardly made.
Econon:ic inequality is a complex phenomenon.
There is the Gospel that .the economic inequality is
preordained and hence inevitable. Aceordipg to this
fatalist belief any autonomous reduction in it will
be short-lived. Others inclicate that the people can
improve their lots and social action can significantly
change their relatiVe economic positions. They believe
that income inequalities are largely a consequence of
voluntary choice under organisational, structural and
institutional constraints within which an economic
system operates. They, therefore, suggest tnat the
economic inequality can be reduced only by changing
.the social order. ,Nevertheless. the problem defies a
direct scientific explanation. Factor~ governing the
distribution of wealth, income; and earnings vary
considerably. Ability, chance, inheritance, education,
screening of productive potential and the role of
organisational, institutional and technological varia-
bles have been found to be related tQ earnipgs differ-
entials in' the available literature on the subje<;t. Des-
pite multiplicity of approaches adopted to examine
the causes underlying economic inequality, a reliable,
systematic and comprehensiv.e exposition is yd to
eC11l1eby.
The problem is so complicated that even if the
attention is foeussedon income from work only,
(Contd. on page 29)
A case study of Mirzapur area
•
What price this develqpnlent ?
K.D. Nautiyal 'and G.N. Pandey
•
..
Many projects are being executed in our
country for the development of certain
areas. The authors point out that the
families uprooted from the project areas are
not getting a'fair deal. They suggest that
all efforts should be made to see that the
- ousted families are settled economically as
w.e11as socially.
DEVELOPMENTAL EFFORTS being made in
various' regions of the country have both right and
dark aspects. Bright aspects of the development relate
to additional production, rise in incomes and higher
consumption patterns of people, while dark shades
pertains to sacrifices made by displaced persons. They
have to change their occupational pattern and their
customs and culture start changing too. Thf-se' in-
tangible costs are hardly taken intO account while for-
mulating projects and plans. S&'crificesl11adeby the
inhabitants are also not compensated even after achi-
eving a higher level of development and incomes be-
cause of trade oirs in the economy in wbich stronger
elements (sections of people) apportion major share
of development.
In the district of Mirzapur, which h&'sthe distin-
ction of locating prestigious high capital intensive
projects like Rihand, Dam, Obra Thermal power
project, HINDALCO, Churk and Dala Cement
10
Factories, etc. not only the people were uprooted but
. also cultural thread was threatened. Interestingly, the
area is rich ih the av~ability of minerals, minor
forest produce and other natural resources but the
impact of development on local people has not b.een
to the desired extent and the local inhabitants conti- '
nue to remain. backward.
This is because overall per~pective of the econon~y
does not give due attenHon to the sections of comnlU-
nities and areas which are going to be adversely
affected due to the development process. .
Adivasis
The present analysis is based on afield study of
adivasi area of the Mirzapur district. As many •.s 13
Adivasis .communiti~s are found in the district, who
are (1) Kols; (2) Maghwars; (3) Kharwars; (4) Che-
ros;. (5) Panikas; (6) Bhuiyas; (7) Dhangars; (S)Aga-
rias; (9) Pahris; (10) Kirwas; (11) Patharia;
(12) Ghasias; and (13) Parahiyas.
--Although, these tribes have their own specialities in
respect of their traditional skills, social cHstoms,
etc. and therefore should have been included ~.s--'
scheduled tribes, have however beea. included only
as scheduled castes in the censuses.
. Safeguarding local interests
The authors of this paper on the basis of observa-
tions and interaction with the people; have come to (
the c~ncIusion that the development that is taking'
plaCe m the area did not take into consideration the
specific requirements of tbe people.. Theseadivasis
~ J
Y-<1jaJ1a,April 1-15, 1985
•
11
Unemployed (as a result of displacement) 22
NB : Figures1n parenthesis irtdicate percentages to the respective
totals.
Table
Changes in tile occupational pattern of adivasis in the
pr6ject areas
before. This situati9n can be corroborated from the
following table wlJ,en shows that the occupational
structure has unde,rgone a serious change to the detri-
ment of Adivasis in the Marzapur area.
• lOS (100.00) 83 (100.00)Total workers •
~Sl. Activity Employment
No.
Past Present
2 3 4
L Cultivator 62 (59.05)
2. Agricultural labour 13 (12.38)
3. casual wage e,arners in non-
30 (28.57) 74 (89.16)farm activities ; .
4. Self-employed 3(3.61)
.5. Regular salaried 6 (7.23)
The table shows that agriculture sector has compk-
tely vanished from the scene and the erstwhile culti-
vators have now been reduced us casu&l labourers.
The location of the project, interestingly, has made
about 22 per cent of the working persons wholly un-
employed. The Adivasis are now obliged to give up
their professions and are left at the mercy of con-
tractors for jobs. It was revealed that so far in the
two projects, only a few persons could be provided
jobs.
These people are illiterate, non-pushing and do
not fit. in the comPetitive world because of historical,
economic and social reas aus, Hence, they are also
not wanted because they do not possess the skills are'
'required in the projects. In the casual 'employment
also, mostly outsiders are provided jobs and the local
Adivasis stand as mute observers of their plight. Un-
less, the development takes into ac:count the socio-
~onomic requirements 8f the displaced persons, new
developments may prove inimical to their interests.
Advasis are free children of forests. They feel the
jUngles as their own estate ane). rightly, therefore, .
they feel that they have a right to the use of the
forest products.
Forest produce like Tendu leaves, Choronji, Mahua,
honey etc. _abound iIi the area. In a reccQt study, it
was found thd there is some exploitation of the Adi-
vasis who were involved in the conection of tendu
leaves. This is a seasonal operation spreadir:g over
two months. An adivasi family gets around Rs. 6 a
day for collecting Tandu leaves. The leaf which is
used for making bidi is sold at a: very high cost leav-
ing a wide margin of profit to the cODtractorlprodGc_
Yojana, April 1-15, 1985
29 DPD/84-3
have not only to compete with <1therpeople for their
living but have also lost their value possessions such
as land, social harmony and peaceful environment.
Two aspects must find attention while formulating
any schemes for ,'Uly cOlnmunityltri1x:.
1. The natives h~'ve their Qwn culture and customs.
New developmental efforts should therefore be con-
sistent with the customs and culture of the people.
2. The development programmes that may be
taken up for the area should not dislocate the life
structure 9f the people and lead to harmful" changes
in their pattern of living and occupations.
The present study wa's conducted in two project
Meas of Mirzapur, viz the Anpara Thermal Power
Project set up by the V.P. State Electricity Board
(UPSEB) and Singraul Thermal Power Project set
up by the National Thermal Power Corporation
(NTPC). These are big power projects with installed
Capacities of 3130 MW and 2000 MW. respective}y.
The land acquisition in these two projects was about
53000 hectares involving 18 villages affecting 1281
families :
~
Adivasis dilemma
The land was acquired at the rate of Rs. 4500
per acre. However. a plot of land was to be provided
to every oustee for construction of a houlie. In the
matter of providing employment to the displaced per-
sons the provision was thus in th~ V.P. SEB project
those who had lost more than 50 percent of land
were to be given priority in employment while in the
case of the NTPC the priority 'was to be given to
those who had lost more than one acre land and re-
ceived compensation of less than Rs. 50,000.
During the course of the study, it was found that
, in the NTPCprojeGt, out of the 24 displaced adi-
vasi households. 13 families had no land w~~le nine
families had land b~lcw 1 ac..Te. Only 2 families had
land holdings between 2 and 5 acres. It means that
according to the projects rules about 90 per Cent ?f
the displaced families in the NTPC project would not
be benefited from the recruitment policy of the NTPC
project. In the UPSEB project area also more or less
the same story is repeated. Here, of ~he 22 Adivasi
displaced famili~s,. 9 had no land while 6 had land le5s
than 1 acre. Broadly this depicts the situation of
poverty of adivasis. Due to the secluded life and near
subsistence level conditions it is difficult to imagine that
they will pull out. themselves from the quagmire of
poverty. .
One cause leads to another. Poverty, diffidence,
fatalism and illiteracy go. side by side. Even today,
the Adivasis are mostly illiterate. Among the displac-
ed persons of the selected families in the two pro-
jects it was found th:lt as many as 95 per cent were
illitero.'te.
In such a situation, compensation would not pro-
duce the same socio-economic situation as existed
. -- "
eer. The same degree, 6£ ~xploit::llion occurs in the
case of other minor forest prodllce also like Chironji,
Anwala etc. These are purchased at a throwaway
prices in the villages and sold at a high prices in the
market.
.
Suggestion s
One of the main cause of exploitation is that the
illiteracy is so 'videspread among advisasis that a
large' number of them cannot even C9unt the small
.amount of money they get in exchange of their lab-
our. This exposes them to furthe( expl{)itation and
malpractices. In this smr.ll paper, however, it is- not
possible to discuss all aspects 0: the tribal economy
but we hope soree suggestions would be relevant.
First, while formulating a project there should be
adequate and clear cut provision for providing land
to the displaced persons at suitable sites. Second,
when weaker sections like Adivasis are displacf'd the
project should have schemes to educat~ and upgrade
the people so that they may also be. benefited from
the schemes of the project. The project authorities
should provide employment to all able bodied per-
sons in their projects so tllat the displacej persons
fe'e~that the project belong to them. It would not in-
crease the cost much but the social benefits would
be very high.
Third, in the =a~~of minor forest produce. the
processing plr.nts should be set up in the area itself
so that employment opportunities may be generated
.in the area. It will also reduce economic costs of
the' produce. Bidi making may also be ~ncouraged
are()ng adivasls as a cottage industry. 'There is ample
scope for processing the local minor forest produce
on the cottage industry basis.
, Historical and religious places of these areas sllould
be developed fndependently.
Fifth, thet'e is also need for stndyin~ the socio-
economic fabric of different tribes of Adivasis with
respect to their traditional skills, soope. for resourCl'"
based industries and the potentia1itie; for manpower
development of the tribes.
. .
Lastly, the terrain of Mirzapur and adjoining areas
call for specific researches for agricultural. and 'ani-
mal husbandry operations.
Higher LTC business
THE LIFE INSURANCE CORPORATION of
India Introduc;ed a new business of Rs. 3649.86 crore
under 18,72,604 proposals in individual assurance
business dunng April 1984 to January 1985. This
marked an increase. of 20.3 in sum proposed over that
of the cO'Iresponding period of last year. .
,The Southern Zone with an inttochiced business of
. Rs. 1142.88 crore and 6,27,394 proposals emerged
12
,
on top, followed by the Westeln Zone with a business
of Rs. 818.25 Cfore and 4,12,511 proposals. The
Eastern, Central and Northern Zones introduced a
new business of Rs. 597.49 crore, 566.27 crore and
Rs. 524.97 crore respectively. The numqer of propo-
sals introduced by these Zones stood at 3,32,832,
2,73,567 and 2,26,300 respectively.
. Amongst the Divisions of rhe Corporation, Bombay
Division stood first with a sum proposed at Rs. 351.08
crore, followed by Calcutta and Delhi with sums pro-
posed of Rs. 184.83 and Rs. 165.27 crore resp.:ctively.
In respect of number of proposals, Bombay Divi-
&ionstood first having introduced 1,52,870 proposals"
followed by Calcutta and Bn.ngalore with 1,03,987
and 74,681 respectively.
Hyderabad Division has registered the highest
growth rate in sum proposed with an increase of 42.6
per cent over that of last year followed by Indore and
Ahmedabad Divisions with percentage increase of
35:1 and 34.6 respectively. 0
/
Action against bla~kmarketers in 1984
FOLLOWING SUSTAINED DRIVE against black
marketing and hoarding by unscrupulous persons
indulging in malpractices in trade of essential com-
modities such as wheat, rice, sugar, edible oils, cook.
. jog coal, contrO'lled cloth etc. during the year 1984,
8,677 persons were arrested, 4,8?4 persons prose cut-
.ed and 1,072 perso~ . .convicted and punished by
courts under the Essential Commodities' Act, 1955
which provides for the regulation of production and
distribution of 67 essential commodities.
According to the latest information available with
the Union Department of Civil Supplies, which co-
ordinates and monitors action taken by tIle States
under this Act, over 2,58,230 raids were made in tlle
premises of alleged unscrupulous traders, and essen-
tial commodities worth Rs. 972.46 Jakhseized during
the year 1984.
The Essential Commodities (Special Provisions)
Act, 1981 bas. plugged the loopholes in the law and
made the penal provisions of the Essential Commodi-
ties Act more stringc:.lt to provide, ~mong other things,
for summary trials for all offences under the Act, ~t
up Special Courts for this purpose and made all
offences non-bailable. • ..
Besides, in order to prevent unethidll trade prac":
tices like hoarding, blackmarketing, profiteering etc.
Prevention of Blackmarketing 'and Maintenance of
Supplies of Essential Commodities Ordinance was pro-
mulgated in' October, 1979 which was later on con-
verted inte an Act of Parliament in Fcbr;uary 1980.
Since the enforcement of this Act, 774 'persons were
ordered to be detained by various State Governments
till December 31, 1984.
Yajana, April 1-15, 1985
,
"
.,
•
Floods and water
managem~nt
Sreelekha Basu
More thim a tenth of our total area is prone
to floods. To reduce the havoc caused by
flood, water management has to be improved
with the help of a sound data base, efficient
data communication system etc. The author
en:zphasises that we, cannot afford to stay
behind in this crucial area w)zichis the key to
accelerated growth and self-sufficiency.
IN INDIA, WE HA VE to live with flood and '
drought. More than a tenth of our total area is prone
to floods. The Central Government has been spend-
ing Rs. 1000 crores on' flood relief. The average an-
nual quantifiable monetary losses suffered due to
floods in India, have been estimated at Rs. 1200
crores. The strategies needed to meet 'the deficiencieS!
(in quantum and time) or to tackle the excess .of
water availability during monsoon in different -regions,
are different. But for ..•.both, it is necessary to assess
the water resources available (expectedl anticipat~d)
and water balance' studies carried out for effective
water management in the region.
Beneficial uses of our water and soil resources are
the most important aspects of co'mprehensiveriver-
basin-planning, which leads to assessment of water
resources potential in the basin and creation of faci-
lities for flood water storage, for irrigation reservoirs I
channels, for generation of electricity, for meeting- the
scarcity of wat~r in drought prone area.s! districts (by
exploration in the area and by importing from sur-
plus basins), etc. These would 'necessitate services of
water m;magement exI1erts, for a-cpordinated-approacb
in sortibg out problems relating to needs for flood pre-
.Views expessed are author's.
Yojana, April 1-15, 1985
vention, water conservation, drainage, irrigation de-
mand, non-agricultural water requirement.. damages
due to erosion, sedimentation, etc. for ' the deve-
lopment, ~tilisation and disposal of water in the most
economically feas~ble manner.
It has been suggested by experts that a national
water grid. is the only answer to this and the .surplus
water of different basins should be used to augment
supplies to the deficit areas. This would need proper
planning, funds, organisation and a base information
,system (DBIS).
- Irrigation requirements.
India has the largest irrigation system in the world
and the second largest irrigated land, next only to
China. Irrigated area prior to independence covered
o~~ 22 milli<ilnha, . compared to the present 60
million ha. Our foodgralDS: production has gone up
by about three times since independence. Cropping
pattern has dive~sified and area under cash crops has '
recorded, s.teep lDcre~s~ at the cost of foodgrains.
Av~ra~e .YIeld for lITIgated wheat and ,rice, (our
mam IrrIgated food -crops), are still very conserva-
tive. -
!fthe total water resources available in our coun-
~ry.is properly managed, we can irrigate mpst'of bur
Irngable 'land and also meet other water demands.
Tbe total surface water resources in India has been
~stimated at about 1500 MHFT, of which only aJittle
~ver a third can be beneficially utilised, for consump-
tive use. Presently, storage facilities of only about a
tenth of our surface water resources are available
within the country. Limited storage facilities for most
o.four riv~r-fl()ws, and particularly in two of our rnajar •
n:ver baslDs (Ganga and Brahmaputra), inter-State
dIsputes. on water-sharingldam-heights e'tc. utter lack
of d!scipline in th~ effective implementation ,of major,
medtum .and n;ultipurpose (irrigation) projects, have
resulted lD avolda:lle increase in the total cost of our
13
,
•
irrigation projects by three to five times. These have
also deprived us of an enormous quantity of agricul-
tural products every year, which could have been
achieved if at least some of our internal disputes
were sorted out in time and impor1t.nt projects cOm-
pleted within reasonable time limits.
National water grid
The concept of a "National Water Grid", envisag-
ing Ganga-Cauvery link was put fonvard by Dr.
K. L. Rao in the early Seventies. It was then decided
that drought-prone area~ needing water on a long
term basis should be idt:ntified along with the water-
surplus areas, and a scheme for transfer of water to
drought areas might be evolved. Later, Dr. Rao sug-
gested that surplus waters of Ganga and Brahmaputra
must be used to augment supplies to deficit basins, so
that semi-arid zones could b~ converted into food-
yielding land, by providing irrigation water. He also
recommended flood water detention in reservoirs,
particularly in the river basim of U.P. ancl Orissa,
as also increased drainage facilities in West Bengal
to save crops from recurring floods.
r
Providing irrigation water to searcit" areas in the
Ganga basin exploitation of the Narrrmda basin in
M. P. and Gujarat, providing storage facilities on
Sarda and Ghagra-Rapti-Gandak to save eastern' U. P.
from floods and for conserving water,. water con-
servation projects such as Tehri, Rajghat, Kisl:!an,
etc. were a few of his plans to meet the growing de-
mand of cereals and cash crops in ID-dla. _
Several other. compr.::hcnsive water resource deve-
lopment projects had sinc~ been presented. The Gar-
land and Himalayan Canal Project of Shri Dastur
and several variations of that Scheme had. been put
forward, by other Expert Groups. The gc;neral con-
census had been that a national plan for the control
of rivers for irrigation and flood control should be
evolved, for the beneficial uses of our water resources.
The erstwhile Ministry of Energy and Irrigati9n
(Deptt. of Irrigation), followed it up and prepared
a comprehensive study on the availability of water
and feasibility of creating enough storage. A Na-
tional Pers'pectivc df Conservation of Water and In~
terlinking Various River Systems was chalked out.
It was claimed that the National Plan (as proposed),
was die most feasible and would confer the largest
benefits at most economic costs, as compared . to ,
other _alternatives su~gested by expert groups.
Toe "National Plan" had aimed at mu1til?urpose
and multi-objective d~vclopment of our water re-
sources, keeping in vkw the benefits,of irrigation, land
reclamation, flood control, hydro-power gen~ration,
navigation, pollution control, fisheries developm~nt,
etc. Domestic and industrial uses-of water as wen as
use of water for irrigation were given high priority.
Inter-b'asill and int~r-stat.) transfer of wateI;.s were
envisaged, k~epillg in view t1J~ needs of tn.e basins)
States. In drought prone areas, water wns as~uff.d at
least for one crop, and while providing irrigtttion faci-
lilies to water-sc::trci~yar(.as maximum production per
Uilit of water was aimed at while fixing the w'"sterde-
.m~nd~ per h~. FlooJ control was acct:pted ~s ~ major
objective. Soil.conservation, catchment protection and
afforestation were envisaged as an iIitegral part of
water development in upper catchments.
Subject to making necessary provi';ions for mini-
mum needs of irrigation (consistent with efficient
water utilisation), where conflict between h••.dro-,
power generation and imgal ion would arise: the' Plan
had also aimed at maxh1UlU pow~r generation. The
National Perspective mvisaged orily additional water
devclo~ment and ase, beyond vhat was already ffusi-
ble within tbe ul)cLilal framewo{ of all existing agree-
ments betwcen ,.nj among the States. as also of the
existing treaties with the neighbouring countries.
The main aim was to increase tlle benefits to one
and all beyond th;:><;eprovid.:d by the existing agree-
ments or treaties. Detailed outlines of the develop-
ment of peninsular rivers were also prepared" suggest-
ing ways and means of diversion of west-flowing rivers
in Kerala, Maharashtra, Gujarat and Tamil Nadu,
diversion of surplus water of Mahanadi and Godavari
.to water1short rivers (i.e. Krishna, Pennar aDd Cau-
very) .and for irrigating coastal areas in Orissa, inter-
linking of a few other west-flowing river ~ nQrth' of
Bombay and south of Tapi (viz Ulhas, Vaitami,
Puma, Ambia, Auranga, Dan;tanganga an.d 9th~rs)
and interlinking of Ken -;yith Chambal (tributaries of
Yamuna). ~
.Technical committee
In 1976, the Government of India had set up a Te-
chnical Committee to examine the feasibility of east-
ward diversion of the west flowing rivers .of Kerala
-and Karnataka, to Tamil Nadu and drought-prone
areas of Karnataka. Assessment of surplus wat~r avai-
lability was carried out in the four souther,.n most
river basins of Kerala (Vamanapuram, bcpencoil,
Kallada and Karamana), and in four river basins in
Karanataka (Netravathy, Varahi, Mahadayi and
Barapole). Ground water potentia~ for these. basins
were also assessed, along with water available from
regeneration flow. Simultaneous studi~s were c.QnQ!.Ict-
ed to estimate the purrent water utilisation and new ,
uses planned, together with anticipated deman4. in tbe
foreseable future, both for consumptive and non-
consumptive uses.
.Based on thes,c investigations, recommendations
were made by the Technical Committc~ about the sur-
plus water available for diversion from Vamamipuram,
Achencoil and Kallada basins of Kerala "and from
Netravathy, Barapole and Aghanasbi~i basigs .qf Ka;-
nataka (the last one as indicated by Karnata~). Tbe
Committee made various recommcndati0l1S 'on the
diversion of surplus water, and ~nstructcd TamiJ Nadu
and Kamataka to frame suitao1e proposals for harnes~
sing the surplus available for irrigating areas in their
drought prone districts, to the cast of the Western
Ydjana, April 1" 1 198~
...
..
. Ghats. For Mabadayi basin, the Committee suggested
installation of two units of hydel power pl!int, of 70
MW each, and irrigation of 500 ha in Mabadayi basin
and further divert the surplus water to Malaprabha
basin to irrigate drought prone areas in Be!ga:~.
Thus for a few west tlowing rivers" the Qommitt~e
recommended diversion of a limited quantity of water
to the east, as on account of the very short distance
traversed by these rivers (from origin to the coast),
and the nature of the terrain, potential avai)al1e weJe
not being fully Ultilised. For other rivers, the Com-
mittee suggested detailed studies to be conducted on
a tin:e bound schedule by the concerned States. It was
al~ recommended that Tamil Nndu should .initiate
dialogue with Kerala on a biIat~nl basis for,di~ersion
of Kerala's surplus water to Tamil Nadu. ,T~s was
initiated and some progress has already been achei-
eved in 'this direction.
NWDA
National Water Development Agency (NWDA)
was set up in. Jully, 1982 to give shape to' the outline
of National.Perspective for Water Resources Develop-
ment. The NWDA follows up the work of implement-
ing optimal utilisation of water resources in the Pen-
insular Rivers, through constru:::tion of con-
servation storage reservoirS of optimal capacity
and transfer of water by a network of interlinks from
surplus areas to water-short and drought-prone areas
of south India. !
The scheme, when implemented is expected to
create about 15 million ha of additional
irrigation potential in the Peninsula over and above
the present assessment of 113 million ha in the coun-
try, by increased utilisation of surface and ground
water resources. During the last two 'and half years,'
the NWDA prepared yield studies at few sites in
Mahanadi and Godavari b~sins, llndertook studies on
assessment of, surface and ground water potential in
varidus sub basins,' collected detailed hydro, hydro-
met, landuse and soil ,statistics from Mahanadi,
Godavari, Krishna, Cauvery, Pennar, Vaigai, South-
ern tributaries of Yamuna and from west-flowing of
rivers of Kerala, Mabarashtra, Gujarat and Kar-
nataka.
Water resources, utHisatio;l and water balance stu":
dies. have been conducted in the drought-prone areas
of Telengana, Madhya-Maharashtra and Marathawada
region, and in Rayalseema area and on a few sub":
basins of Godavari. Surveys of west-flowing rivers,
south of Tapi and nQrth of Bombay, as also of a few
tributaries of Yamuna and Ma:hanadi have 'also been
conducted. The main obiectivesare to locate po!>si-
ble reservoir sites and inter-connecting links fa,r
augmentation of water conservation, with special re-'
ference to flood waters "and to transfer the surplus
to water-short and drought areas. Detailed water m.an-.
agement studies relating to quantum of watcr avail-.
able in our Peninsular River Systems, which can be
transferred to other basinsIStat,is, (after meeting rea":
sonable needs of ~he concerned basinslStates), in the
Yoiana. Apri11-15, 1985
Z9 DPDj84-4
foreseeable future, have been conducted by the
NWDA.
.Flood study
Flood plain zoning in various flood prone sites- of
different river basins is very important for water. re-
sources studies. Indentification of areas expo~ to
flooding and determination of inundated land through
data collected from various sources, including those
from remoty sensing' techniques along with determi-
nation of areas under various land uses, to understand
relMion between precipitation and the resultant run-
off, are integral parts of such studies. Flood prone
areas undergo changes continuQusly, with every flood,'
and. to understand these processes it is essential to
monitor the flood plains and record the changes over
time. Aerial photographs are the best tools for bring-
ing out various aspects of flooding and for such moni":
toring work. Flood menace can he reduced to a great
extent 'and the surplus water diverted for use during
dry -season (or to water-scarcity areas), if such moni-
toring with the help .of a network of aerial- photo~
graphsjdigital-data and data~ollected through con-
ventional means are introduced on a routine basis. I
In any flood study it is essential to know the volume
of flood that has to be reguhted and diverted for
storage, to determine courses of flood control. Area
information data obtained thro'lgh landsat along with
water depth data collected on ground will furnish the
volume information, with re'asonable degree of accu-
racy. Remedial measures for water-logging of flood
waters. in depression areas can be initiated, mainly
through betUer maintenance of existing drain'age s;yS-:
terns and constructing additional link drains, culverts,
etc. and also by impou~ding the excess water and
diverting it to water-short areas for beneficial use. I
Some experimental studies were initiated by the
Deptt. of Science and Technology, under their Scheme
on Natural Resources Data Management- System
(NRDMS), in 1981, to make an assessment of the
magnitude and reliability of our natural resources
data and for a timely access of an integrated 'and
evaluated resource data base to our planners and de":
cision m'akers. It also aimed to determine the rela..:
tionship between ~ound features and their response
to remote sensing besides .selecton of effective sample
sets for classification, for remote sensing data. Vari-'
ous pilot studies were undertaken. One such study was'
carried out in an intensive test area between R'apti
and Gandak in the eastern U. P. to assess the feasj..'
bility of the application of remote sensed data b'ases.
and others to planning problems like flood plain zon~
inl!, land-use planning. surface and ground wa~ei
development monitoring of water 10gginQand salinity
nroblems, air and water pollutio!l problems. estima-'
tion of vegetal .covers, etc. along with evolving me-
thodologies' for handling multiple data bases. 1
The studY on flood plain zoning- in the b'asins of
Gha{ITaand Gandak was undertaken bv the Centre of
Studies in Resource Engineering (CSRE) of the lIT,
15
•
•
Storapce reservoirs are the. best solution" for flood
water c(lnservation. But for. their high cost, reservoirs
are usu2'lly not planned for :flood control only. Most
of our reservoir projects, do not lend themselves to
earmarbd flood storage, and only some flood cushion.
ing is aUowed. No provisions are usually made fOf
antiwater10gging and drainage facilities in such pro.
jects Only DVC, Baigul apd few other resrvoirs had
made snme exclusiVe provffiion for flood control stor.
age Rt"servoirs at Govind Sagar; Hirakud, RengalL
Ukal, ~fanchenbela, etc. are cases where moderation
has been achieved by suitablenreans;
, "
Usually flood oontrol forms a part of our multi.
purpos~ projects, where it is only one. of the benefi.
ciaries, However, multiple use of a reservoir implies
wme compromise between the. interests of various
(.Omponents, which are occassionally at variance with
on~ arother. Multiple use of a reservoir inevitably re-
sults i?l less ,benefits for any single use, but it reo
alises maximum benefit for the project as a whole.
Any moderated flood outflow must take into account
d1e saYetyof the downstream area as well.
Reservoirs by themselves are seldom a complete,
.measure of floOd control. Inspite of their high costs
and long gestation periods, if~reservoirs are taken up
as p~ckage programmes, with other direct benefits
along with flood 'control work •.•they would be eeono-
mka1Jv viable and also ensure oPtimal utilisation of
water ~hich otherwise goes w'aste.-Acquisition of land
for storage reservoirs is rather difficult. but the stor.
age of :flood waters is also very important. Possible
A mechanism of communication of information
from the.source agencies in the field to the authorities,
has also to be established. For communication, either
a radio network or a satellite network may be adopt-
ed. Occassionally, a combinat1on of UHFlVHF and
Post and Telegraph Leased network is preferred. How-
ever, the choice sho:~ld depend on the nature of com-
munication .required by the water management ex-
perts, and the topology of the region. Transfer of
hydro-met data from field to the data cqntrol offic~,
(usually locatdi at a major city), is done by surface
mail and through the telephone!telegraph systein.
BambIX)'. An' eleven channel Modular Multispectral These are n0t suitahle for effective management of
Scanner (MMS) and an aerial camera were used for. water resourr.es and some sophisticate~ transmission
collection of relevant. data and "ground'truths" were' network shol'ld be set up by the authorities handling
collected in synchronisation, to correlate actual in- flood contro! J;lrojects.
formation on ground with its response to remote •
sensing by MMS and MSS. NCF
Ground truths were also collected before and after The Nati(mal Commission of Floods (NCF) had
the flight to study the drainage. systenis aud to ob:. sugge~ted 0.980) that me'as~res, primarilyI for c~m-
~erve hydrological behaviour of the various streams servatlOn (H:e small, medmm and large .reservoIrs, -
m the. basins of Rapti and Ghagra. Computeri~d natural detf'lltion basins, ground water storage, etc.),-
analysIs of the data were taken up and valuable in. which help m moderating run-otIs depending on their
terpretations drawn. Other pilot studies were also un- capacity, s10uld be the first to be considered, for
dertaken (in the coastal and offshore areas in Goa and. :flood mana,?~ment in any basin. It had also been said
Visa~hapatnam, in some semi-arid regions of n. P that to the eKtent feasible (technically and economi.
and m a few backward and tribal areas ill Purulia. cally), na1ur~l aetention basins and reservoirs must
Koraput, etc.) which have completed major portiol1' be considererl. as an important component in any
of !heir field surveys I investigations and are preparing, package of flood management, as it would ensure'
theIr reports. The findings would be of imm~nse help maximum utilisation of the water. However, it has
for developing networks of natural resources data been pointed, out that the intensity and' duration 'of
needed for planning and monitoring of w~t7:rresource the rain a~d the runoff, and the resulting volume 9f
projects and other schemes. floods wonlrl play the most important part in deeid:
,  , ing upon jf the , n'atural detention basins would serve
Water management' the purpol1e of flood mOQeration, or special measures
,Floods mainly result from intense and heavy rain.. like emba''lkments, emergency f!oodways, river diver.
fall du~g m<?nsoon,cloud-bursts, cyclones (m~inly in sions and' inter-basin transfers would have to be ad.
the coastal areas), from landslides blocking stream opted. UI"regulated :floodwater goes' waste and causes-
flows, and inadequate drainage systems. In ninety per .!mvoc at d miseries; ,
cent cases, :floodsoccur when there is heavy precipita. Reservoir
tion and the river overspills its banks m; the linking
channels cannot c6pe with the water flows, or due to
some obstruction on the river bed' (siltation, laric;lslides,
etc.). Drainage 'conSfstion, resulting from heavy rains
of some blockages, 'also cause devastating flood~.
Erosion of river banks, defcrestation, sedimentation.
water 10'gging, high seatides, inadequate waterways
at rail and road crossings, encrolM:hments in flood
plains etc. are some other causes of floods in India.
The task of water m~~gemeni; in flood pro~e areas, ,
basins needs in-depth investigations, data coliection
and validation, data ,analysis with the help of analyti-
cal tools to facilitate quantitative modelling through
use of data stored in the Information System. with a
view to arriving at some optimal solution, which would
prescribe some form of diversion and storage (by
vario~s means). 'fhis would be adopted to even oui:
the flow and also tet conserve Our precious water re-
50urce for use in water-short regions and 'durir,g dry
Seasons. .
..•
16 Yetjana, April 1-15, 1985
storage sites, specially around water scarcity areas are
necessary to harness our water resources for beneficial
use. f. sound data base and an efficient communica-
tion system would be necessary for effective and time
efficient handling of our water resource planning pro-
cess and for the follow-up scheduling, and monitor-
ing activities. If the NRDMS project"pn multiple data
base approach to micro-level planning is successfully
implemented, it would go a long way to sort dut our
data gapsldeficiencies, as also in evolving 'methodolo-
gies for handling such data bases.' ,
In this connection, a mention should be made of the
CWCjDanish-Hydraulic-Inst (DHI) cooperation in
developing, real time flood forecasting model (NAM),
for accounting the runoff from rainfal). by computer
simulation of hydrometeorological events, and rout-
ing the -runoff by hydraulic model. DVC riv('T system
has been taken up for field testing of the model.
.Another real time forecasting system has been install~
ed in the Yamuna catchment area under a UNDP
Scheme, with the help of data on rainfall, tempera-
tureand river stage. data. A master teleprocessor is
programmed to coo["dinat~ the activities of remote
stations. SSAR model used by the US Army Engineer
and HEC- IF model developed by Hydrologic El1gi-
neering Centre (California) are being studied for
their calibration to suit the mini-computer (HP-
1000), installed at Delhi for this work. With the imp-
. lementation of computerised telemetry system, new
techniques in remote sensing and automatic data ac-
quisition procedures, river forecasting services would
improve considerably and wo'uld provide a tool for
flood routing and rainfall runoff predictions.
Ground water studies
"
A number ~ ground water studies undertaken by
the United Nations, the SIDA and the CGWB in our
various river basins hav'e made valuable recommenda-
tions for wateJ resources planning, where artifichll
recharge of acquifers with flood waters has been look-
ed into. !thas been observed that as a result of floods
and water-logging from seepage of e,xisting irrigation
systems, many areas in our river basins become
water-logged,. permanently or seasonally. The reme-
dial measures recommended include pump age and use
of ground water in these are'as,lining of canals, better
maintenance of existing draiqs and construction of
link channels, link drains and culverts. The UN
grQund water study in the Ghaggar river basin had
observed that water-lOgging in the Suratgarh-Baropal
depression area could be controlled 'by reducing the
Ghaggqr flood water inflow into the diversion canal
or by using the impounded water ~or irrigation. The
Study suggested diversion of the excess flood water to
the sandy tracts in west Rajasthan and used there
for artificial recharge' of the phreatk acquifers. :Re-
covery of diverted water, however, could be' started
only within 5 to 10 years after the recharge scheme is
taken up, TIS this time period was necessary to allow
Yojana, April 1-15, 1985
a significant fresh water layer to build up over the
salinated acquifers. The Study also sug~sted high
efficiency irrigation methods (sprinkler and drip),
in combination with lining of canals in certain 'areas
for higher crop productivity with small quantity of
water. 0 (to be continued)
JI ..Home Computers for ~sians in U ,K.
. .
A PROJECT TO PROVIDE multi-language ver.
sions of home computers i.s being sponsored by Brad-
ford Metropolitan Council in the north of England to
serve the city's 62,000-strong Asian Community. The
project, aims to provide computer programmes and
keyboards adapted to Hindi, Urdu, Punjabi, Bengali
and Gujarat! users.
The scheme is being run by Mr. Harnak Singh, One
of the Council's computer Programmers, Faiz Nasir,
a linguist and Urdu specialist. The council is fund-
ing and co-ordinating the Project, but the actual work
of producing the programmes has been delegated to
information technology centres in Bradford and
nearby Halifax, and, a computer firm in Lqndon .
Work has alreidy begun, On the Urdu and Punjabi
word processors and a Urdu version of the Basic
computer language.
•Mr. Harnak Singh said: "Urdu has not been typeset
before, and we had to find out wh&t was acceptable
to the consumers in Bradford, we intend to' produce
a word processing package, with basic standard faci-
lities, for schools as well as for the home."
The programmes will be geared to the standard
schools computer, the BBC Micro, so that children
in the city's 200 schools can be given the opportunity
to learn basic computer skills.. , .0'
Acorn Computers of Cambridge, Eastern England,
say that work is underway in India to provide local
language programmes for the BBC Acorn computers
which are expected tobe manufactured shortly under
licep.ce in India and supplied to a number of schools.
o
Mechanical ~cart helps farmers
MECHANICAL MULTI-PURPOSE cart called
"Krishimitra" devised by the Director of Research
Foundation in the Department of Science and Tech-
nology, Government of India" is a blessing for the
Indian f,,"rmers; This mechanical cart can diO' Dve
hectar~ of land in a day and it can be used in all
.other farm activities also. The price of this cart is
approxima'te1y Rs. 18,000. 0
17
•
FJghth Finance Commission Report
Under the award of the Eighth Finance
Commission for 1984-89, the States will.
receive Rs. 38,SOO crores from the :Central
divisible pool of rr;venueby way of taxes,
duties and grants-in-aid to help remove im-
balances among them. This is Rs. 17,500
crores more than the amount transferred to
the States under the Seventh Finance Com-
mission during 1979-84. The Commission
has done a fairly good job of its task which
will ultimately help remove the imbalances
among the States, sqys the author.
. THE EIGHTH FINANCE COltIMISSION has
made an earnest effort to help deficit States with in-
creased share from the Union excise duties. The
award of the Commission which has been accepted
by the Government will benefit the States to the
extent of Rs. 38,500 crores by way of taxes, duties
and grants in aid during 1984-89. This is
Rs. 17,500 crores more than the amount transterr-
ed to States under the Se,enth Finance Commission
award for 1979-84
Modes of devoluti.on
, The Government while announcing its .decision
On the recommendation of the Commission in Parlia-
ment has made it clear that it will co'ntinue with the
interim report recommendations for 1984-85 financial
year but will accept the final recommendations' for four
years from 1985.
.The fiscal transfer .scheme accepted by the Gov-
ernment confers on twelve States surplus of over
Rs. 26,000 crores. The States' share on Union ex-
18
Devolution of more
funds to. States
H. Seetbarama Rao
cise duties is being enhanced to 45 per cent from-
40 per cent while the sqa~~ in income-tax h~ been
retained at 85 per cep.t. FIVe per .cent o! .exclse has
been earmarked for deficit States In addItiOn to the
five per cent annual growth in the revenue gap'
grants of these States.
The decision pro1des for substantial debt relief
.including Write-off. Under the revised scheme,
grants worth Rs. 808 crores will be given to 17
States for upgradation of standards of administra-
tion and to meet special problems. The Centre
will provide half of the annual margin money to
States for financing of relief expenditure. ,The
Centre's contribution to margin money will be
RS'.A.81.50 crores. The annual comp-ensatory grant
in lieu of tax on railway passenger..fares has been
enhanced from RS.~3 crores to Rs. 95 crores.
The recommendations of the Commission, as ex-
pected, have drawn mixed reaction from States.
While most of the States have welcomed the recom-
mendations, some of them felt' that the Commission
has not been fair to their demands. But the fact
remains that the Commission has tried to bridge
the gap between the chronically defk:':, States 3nd
tnt; fairly better (',ff States.
Most of the recommendations suggested by the
Commission have been accepted by th~ Government
except a few that have to be still considered. They
included suggestions to merge surcharge with basic
income tax from 1985-86, setting up an expert
committee for~the allocation of cost collection, bet-
ween incometax and corporation tax and tQ impose
penalties and interest on 3lTearS in the divisible pool
of incometax. ' . .
Benefit to States
:'Ten States will benefit through the Con:mission's'
recommendations that grants in aid to deficit States
after devolution should escalate at the rate of five
per cent per annum. These deficit States are Assam,
Yajana, April 1-15, 1985
Himachal Pradesh, Jammu and Kashmir, Manipur,
Meghalaya, Nagaland, Orissa, Sikkim, Tripura and
West Bengal. Rajasthan has been assessed to be
in deficit for 1984-85 and 1985-86,..th~reafter going
into surplus. On the other hand, six States will be in
surplus before devobtl'Jn. 'Ihey arc Gujarat. Haryana,
Karnataka, Maharashtra, Punjab and Tamil Nadu.
The remaining five States-Andhra Pradesh, Bihar,
Kerala, Madhya Pradesh and Uttar Pradesh-will
come into surplus after devolution,
The grants contemplated for the deficit States
are for them to cover their non-plan revenue gaps
such as for the payment pf Additional DearnefsS
Allowance instalments to bring the DA of State
Government employees on par with that of the
Central Goernment employees.
Taking into account the additional DA liability
and the annual escalation the deficit States will be-
come eligible for a grant of Rs. 1,555.83 crores
during 1985-89 as a result of the recommendations.
The Cominission also recommended grants for the
upgradation of standards in administration in nine
areas. They are police, education, jail, tribal ad~
ministration, health, judicial administrCition, district
and revenue administration, training and treasury
and accounts administration; Grants aggregating
Rs. 914.55 crores for this purpose will go to 16
States, barring' those in surplus. before devolution.
Of this amount Rs. 808.08 crores will be distribut-
ed in the period from 1985 to 1989.
Debt relief
The Commission recommended debt relief to the
States varying from 20 per cent to 85. per cent of
the non-plan capital gap as assessed by it. •The
quantum of money as debt relief recommended - is
Rl;. 2,285.39 crores through the consolidation arid
res~heduling of outstanding loans and by way of
WrIte off.
This debt relief is in addition to a relief of
Rs. 117.08 crores involved in the non-paymeBt of
small savings loans in 1984-85 recommended in the
interiin report and reit~raled once again.
The Finance Commission award will result in
uniform formula for distribution of States' share of
excise diuties and income-tax. The Centre will
continue to contribute half of the annual margin
money to States for financing of relief expenditure.
Linking devolution to deficits
The Commission has recommended that five per
cent of the net proceeds of Union duties of excise
should be set aside and distributed. to those States
which hac deficit after taking into account their
shares from the devolution of taxes and duties as
p~oposed .by. it. This iJ;ltroduces a new principle of
duectly Imkmg devolutIon to deficits rather than
de~ling with them only through grants' in aid under
artIcle 275 of the Constitution. While recognising
Yojana, April 1-15, 1985
that there could be different views on the merits of
this principle, the government has decided to acceIJ't
this recommendation without creating a precedent.
,
The Commission has- provided a five per cent
annual growth in the deficit grants purportedly to
make them buoyant. The Finance Commission
found theexis!ing financing arran,gements of relief
eXIJ'enditureto b.e basically sound.
At present, 85 per cent of incdme-tax except the .
portion representing the proceeds attributable to
Union Territories and the Union e)D,oluments,is dis-
t,ributed among the States. TIle share of the States
is retained at tbe same ievel. The inter se distri-
bution among the States is partially altered by dis-
tribution of 90 per cent of the States' share on a
common formula for income-tax and excise duties.
Ten per cent of the States'. share 'is distributed as at
present on the basis of contribution measured by
income-tax assessments attributable to a State.
Excise duty on electricity was abolished from
October 1, 1984. - The Commission has recom-
mended that the share of each State should be equal
to collection in or attributed to State.
., Additional excise dilties
The entire net proceeds of the additional excise
duties on sugar, textiles and tobacco excluding the
portion attributable to Union Territories, accrue to
the States. The Commission has recommended that
the additional excise duties be distributed among
States on the basis of equal weightage to State do-
mestic product and its population.
The Commission estimated the gross non-plan
capital gap at Rs. 6806.19 crares. It has not re-
commended any relief for the repayment liability of
Rs. 1992.90 crores arising during 1984-89 -out of
~he me,rlium-term overdraft clearance loans aggregat-
mg to'Rs. 2242.12 crores.
The -Commission has left them outside the scheme
of debt relief. It has recommended that during
1985-89, the small savings loans should be repaid
b:f .the States as per the prescribed terms and con-
d1tIonS. . Excluding small sa,,:jngs loans and over-
draf~ loans, the Commission has estimated the net
non-plan capital gap of the States at Rs. 3852.64
crores.
In making its rec')mmendations., the Commission
was directed to have regard to the consideration such
as the resources of the Central Government and the
de:nands there~n on accoilnt of civil administration,
derence and border security debt servinO"and other
~ommitted liabilities. The' Commission'bhad made
Its recom.mendations within the parameters and had
done a fatrly good j?b ()f its task which will ultimately
help to remove the Imbalances among the States in the
country. 0
(Courtesy : All India Radio)
19
•
TOWARDS SOCIAL REVOLUTION
a Case lor Economic Democracy ~
VASANT SATHE

A Serialisation 15
The Alternative
of the policies and programmes announced by thejr
government. It would be the duty of the representative
or repre~entatives of the financing institution to ensure
the proper utilisation of the 'tinances advanced or
invested.
The remaining o'ne-third would be representatives
of the entreprenem, i.e., the conceiver of the industry
and also its organiser. The entire working force would
be organised on a pattern in which there are managing
committees from the top level to t~e shoe-floor level
and persons are assigned tasks for which they are
accountable.
Although the basic structure of salaries and wages
would be fixed, other benefits, which would be substan-
tial, would be linked entirely to prOductivity. Sin~e
the entire labour force would know that there is no
qluestion of anyone manipulating the real surplus or
ch~ating in any other manner and all its members
would have a full stake, they would evince ,interest
and confidence in the succes~ful working of a plant
or industry on which' their livelihOod as well as better-
ment would depend.
The market mechanism of demand and supply and
the resultbJg pricing system form one of the greatest
In our model, there would be no employer-employee inventions of mankind. A just and equitable economic
relationship because everyone who puts. in la,bour organisation and policY should take advantage of it.
would be a shareholding partner in the organised But what tends to mak~ the market and pricing system
industrial or trading sector .. The shareholders would, unjust and greatly iniquitous are two major deviations
annually elect their representatives' from among them- from ideal and democratic economic norn:s. One devia-
selves to the board of management who would re- tion; on the demand si<re,is the serious' maldistributio'll
present the three basic categories, l}amely, managerial, of income and the lack of purchasing power on the
technical and non-technical. part of millions of people, who, therefore; cannot,
express their real needs in terms 'Of market demand
and cannot caus~ or provoke the supply mechanism to
produce and supply those real needs. The other
serious deviation, on the s'upply side, whic.h distorts
the market mechanism and nearly makes a total
nonsenSe of it, is the emergence of monopoly (a single
supplier of a particular ,item) or oligopoly (or few
market-dominant suppliers ot that item). Such mono-
polistic or oligopo1istic suppliers can and do lJo!cl,the
society to ransO'm by restricting the supplies, charging
•
THE BROAD PICTURE of the national'economic
scene that would emerge from our model in the pro-
ductive arid distributive fields would be of one
homogeneo'us national sector. The artificial division of
the entire national economy into the public sector and
the private sector would be abolished. The O'nlytwo
natuLal sectors would be the organised sector and the
self-employed sector. .
The number of representatives of labour .would be
o'nc-third of the total number of the memhers on
the board of management.
The other one-third would be the nominees of the
finand'al institution, the party in power at the National
level and the party in power at the State level. in
equal proportion. Thus, thl': representatives 'of the
people wou1cl be involved in every organised industry
to participate in and to overs'ee the implementation
In the economic model proposed heie, the presump-
tio'n is that the entire labour~in the form of (1)
entrepreneurship and organising capability, (2) an
intelligent studi,ed contribution by the scientific,
engineering and technological experts, (3) managerial
skills developed by some members of society and
(4) technical, clerical and unskilled potential of the
other members-would work cohesively as equal part-
ners and, in the very process of production, the surplus
generated would be paid eq'uitably, though not equally,
to each category. The chief criteria would be to meet
the minimum requirements of a decent living for the
lowest category and then to determine w.hat better
comforts anc~, to s'ome extent, even luxuries, can be
offered to those whose labour is more skillr-d or re-
quires higher qualificatio'ns On their part.
•
20 Yojana, April 1-15, 1985
The. author has been in the trade union movement
for mo;e than 30 years and has throughout believed
that the workers can play a positive and responsible
role in management, because they have the real .and
the highest stake in the success. of the industry to •
which they belong. A well-known 'offset printing press
in the priv,ate sector can be cited as an example. This
U'Ilitwas closed down for mO'rethan 15 months due to
a quarrel between the partners'. When it was taken
over under the Industries (Development and Regula-
tion) Act, 1951, the workers not only accepted a cut
in their wages in the form of reduced dearness
allowance, but alsC1cooperated with the management
in bringing up the unit to the trading profit. level within
a period of less than six months.
and effective representation in the board of manage-
ment at the highest level has not been accepted, even
mentally, by the authorities concerned .•
In India, although we talk of the objective of haviiH;
a socialistic pattern through planning and although
this was spelt out in the first 20-Point Programme. in
the form of allowing participation of workers in the
management, in effect, throughout the entire process
of production there has been hardly any effort to give The author's next experience was with a major
real and effective participation to the wcrrkers in public sector undertaking, the Durgapur Fertiliser
management. Some half-hearted efforts have been made Plant. Again, this plant had been closed down in 1982
in the nationil1ised banking sector in the form of, due to a labdur-management dispute lastin!! over eight
nominated members' from amongst employees on the, months, causing a monthly production loss wO'rth
board Jt management, but the concept that the workers imillions of rupees. This unit had two maior unions,
should be treated as partners and should have equal one belonging td the Marxist school of thought and
, With these two major corrections for oligopoly and
maldistribution of income,' the just market forces will
come into their own and then the markets can be
better trusted to settle prices and costs at equitable
and fair levels-with demands more corrctly represen-
ting genuine needs and 'Supplies more responsive to
demands, rather than being restrictive. With the
tripartite arrangement in the n:arketing and productive
fields, it should be easily possible to intrdduce any
further corrections or improvements in the price-and-
cost structure in order that essential commodities are
within the means' and purchasing power of the lower
and the middle strata of workers and income-earners,
prices totally out of line with costs and reasonable
profits, colluding with # each other to allocate markets
to each other and use other foul means of reducing
consumer welfare and increasing their own.
Whenever this topic has been discussed, one always
Hence, the maldistribution of income and the exis- finds a reservation at the back 0'£ the minds of those
tence of monoPQly-oligopoly are the chief enemies of .in authority. They somehow believe that the managerial
an equitable market mechailism. But in the economic class is essentially a, superior variety consisting of
democratic system that is being advocated here, both people who are born and bred in higher culture, edu-
these evils can be taken care of. As the representative cated mostly in public schools and preferably have
of the Government, financial institutions, workers as had their higher education abrO'ad. It is felt that it is
well as entrepreneurs will sit on the board of directors this class' which must essentially be at the highest
and the various committees, it will not be possible for echelo~s of management in the public sector. In the
any vested interest to take decisions to restrict prO'duc- private sector the same feeling prevails among the in-
tion, step up prices unfairly, enter into black money dustrial class. Unfortunately, this seems to influence
transactions, purchase inputs as more than market pri- even the politicians in power. Everyone seems to feel
ces from friends, relatives and other colluding parties, that the wO'rking class' is somehow inferior, both in
sell the product to such colluding interests at more than' quality and understanding, and, therefore, does not
warranted prices (thus accumulating black earnings), deserve to have a place in the board of management,
underinvoice or overinvoice exports and impO'fts and It is felt that if the ,workers are given such a position,
indulge in other such malpractices. In particular, the instead of .being helpful, they would be a hindrance to
key oligopolistic. practices restricting production and decision-making, particularly when decisions have to
charging unduly high prices. will be ruled out. One be taken on buying equipment or setting up projects
major imperfection of the market will disappear. involving millions of rupees.. .
Secondly, it will not be possible in Such a f~Ily re- It is !)'urprisingthat these very people usually agree
presentative and democratic organisation to pay unduly to give a p&"ticipatory role to the workers in sick units,
low and exploitative wages and salaries', On the other which are not making profits, because they feel that
hand, workers' unions need nO't demand wages and by giving the workers a share in the management it
salarIes out of line with productivity, as that, while it will make them more responsible and even goad them
will raise their wage momentarily, wilIcut the com- to make sacrifices in their own interes,t to pull the
pany's profitability and reduce their own profit in their .industry up and bring it dot of the red. But the
capacity as shareholde,rs. Income distribution and moment a unit becomes profit-making and viable, the •
. purchasing power will certainly be equitable and this ,very peO'plerevert to the belief that the workers must
will take care of the other imperfections of the market not have any voice in the management, particularly at
mechanis'm. . the highest level.. Somehow, this hangover. of the
capitalist culture of economics, maintaining the basic
distinction of employer and emplO'yed as separate
classes, .is accepted as a basic premise.
Yojana, April 1-15, 1985 21
, another belonging to INTUC,which has. the same
ideology as that of the Congress party. Bo~ unions
were at loggerheads with e.ach other, but both were
against the management. Hence, the deadlock and the
stalemate. This author held consultations with the
management, with officers of his Ministry, with the
leaders of both the unions ~nd ultimately went to the
plant personally and called a joint meeting of all the
workers and made a p~oposition to both the unions to
have two of their representatives on the managing
cetmmittee of the plant and told them that this manag-
. ing committee had full and final authority in all
matters relating to the working at the plant. Both the
management and .the workers were told to take up this
challenge and run the plant as a joint effort. Serious
app.ehensions were felt abo'ut the success of this ex-
periment by many people, particularly at the top level
of the management. However, it has been a matter of
great gratification that the plant not only r.esumed
functioning, but started showing record pro'duction in
termS' of capacity utilisation within a period of three
months from the date of its commencement and to
pro'Ve that this was not just a matter of initial exube-
rance. this trend has -been sustained for nearly a year
now. During this period, the plant whic)1 even at its
best, prior to September 1982, had never reached a
capacity lutilis'ation of more than 40 per cent, had
achieved capacity utilisation exceeding 90 per cent
during some mo~ths and O'll an average pf about 80
per cent till now. Moreover, during this period there
have been no ins'tances of disputes or clashes either-
inter se tbe workers or between the management' and
the workers. Thus, if ever pr<1ofwas needed of what
participatory Tole of workers can achieve, this is it.
But if there is no will and if faults have to be found
because somewhere the ve~ted interests get affected,
then the:e at"e numerous ways' to hinder the much-
needed change. .
A major and catastr<1phic instance in recent times
has been that of the textile industry of Bombay, which
had been closed down for over two years rendering
about 200,000 employees idle and ca1Singa produr-tio'll
)oss running into billions of rupees during this period.
The main reas'on for the showdown in the textile
industry has been the insistence on the part of the
manag~ment, unfortunately supported by the govern-
ment, that only a particular union will be treated as
the recognised union. This union is not willing to have
its membership or its credibility and support amo'ng the
employees judged On any democratic criteria. more
particularly that of an election by secret ballot. . It
ins'ists that it should be recognised by some s<1rtof
verification dl1ring which it expects to be favoured by
the government because of its political allegiance.
It is this which has been die bane of the entire ~m-
player-employee relatio'nship in thi" country. As long
as this union had some credibility among tbe
employees, the relatiO'nship between the employers and
the employeeS' did not come to a crisis. But when the
so'~called recognised union lost .its credibility and was
22
not willing to establish itself by any d~mocratic method,'
the matter came to a serious break. As a result the
whole industry was thrown in turmoil by a prolcnged
strike. It is therefore imperative to decide thin in the
present pattern of employer-employee relation, the
only rational way of establishing a bargaining agent
for the employees must be in the forll].of electing that
bargaining agent periodically, say, every two years, by
seciet ballot among the employees of the concern. The
IndustrlafDisputes Act will have to be suitably amen-
ded to achieve this objective. There cannot be any
convenient alternative to circumvent or by-pass this
fundamental need. However, in the model envisaged in
this thesis a'll economic democracy, the entire working
class force will be partners in the form, of shareholders,
each holding a nominal shal e and they would annually
elect, from the respective categories of employees be-
longing 1<j managerial, technical and non-technical
classes, their representatives on the board of manage-
ment (IS partners. Hence, there would be no cause or
need for having tr~de unions !under this stlucture and
it will obviate the need for having a bargaining [Lgent
Had this philosophy been accepted and adopted in the
textile industry or even if the bargaining agent had
been deciaed by way of secret ballot, this author is
confident that there would have been no textile strike.
Even now, when we are thinking of a sO'lution, and
a taKeover of the closed mills has been ordeled, I
wou1d sincerely suggest that the units should adopt
the proposed model wherein the workers will be
treated as shareholders and partners in the new units'
and will have an effective voice in their management,
so that where necessary they will have to ag'ee to make
sacrifices in the form of rationalisation, reductio'n in
the complement as well as improvement in productivity
and modernisation of the plant. This can be achieved
only creating a total feeling af belonging and participa-
tion among the working force. Unfortuantely what is
called nationalis'ation often only means either bureau-
cratisation <1r statism, where the personnel of the
management are nominated ~y the government and the.
exvloitory philosophy of employer-emvloyee relation-
ship based on mutual distrust co'ntinues to prevail and
plague the industry, as indeed has been witnessed in the
entire nationalised textile sector and many other. so-
callea nationalised units.
The suggested model gives full scope for the indivi-
dual initiative of the entrepreneurs. It would provide
them with attractive returns, bo'th for their skill and
their investment. The financing institution would also
get a fair return. However, the net surplus generated
would always belO'ngto the State, which represents the
people as a whole. Hence, there would be no likelihO<1d
of a few individuals amassing the surplus and con-
trolling it themselves. Since the surplus in the organised
sectOr would automatically belong to the State, there
would be no question of taxing the organis'ed sector.
Thus, most of the sources <1fgeneration of unaccounted
money would disappea: at the root itself.:
Yojana, April 1-15, 1985
Land survey and soil mapping plans during Seventh Five-Year Plan
Land survey and soil mapping plans during Seventh Five-Year Plan
Land survey and soil mapping plans during Seventh Five-Year Plan
Land survey and soil mapping plans during Seventh Five-Year Plan
Land survey and soil mapping plans during Seventh Five-Year Plan
Land survey and soil mapping plans during Seventh Five-Year Plan
Land survey and soil mapping plans during Seventh Five-Year Plan
Land survey and soil mapping plans during Seventh Five-Year Plan
Land survey and soil mapping plans during Seventh Five-Year Plan
Land survey and soil mapping plans during Seventh Five-Year Plan
Land survey and soil mapping plans during Seventh Five-Year Plan
Land survey and soil mapping plans during Seventh Five-Year Plan
Land survey and soil mapping plans during Seventh Five-Year Plan
Land survey and soil mapping plans during Seventh Five-Year Plan

More Related Content

What's hot

Five Year Plans of India
Five Year Plans of IndiaFive Year Plans of India
Five Year Plans of Indiadeepakfo34
 
12th five year plan
12th five year plan12th five year plan
12th five year planAnupam sunil
 
Planning in india
Planning in indiaPlanning in india
Planning in indiaAchaaPadho
 
4th five year plan of India
4th five year plan of India 4th five year plan of India
4th five year plan of India kiran paul
 
Five year plans of India
Five year plans of IndiaFive year plans of India
Five year plans of IndiaVisakhapatnam
 
Ayub Khan Regime Presentation
Ayub Khan  Regime PresentationAyub Khan  Regime Presentation
Ayub Khan Regime Presentationfahadfarooqui
 
Pakistan Economy Eras
Pakistan Economy ErasPakistan Economy Eras
Pakistan Economy ErasIqra Akram
 
Economy of china and south korea
Economy of china and south koreaEconomy of china and south korea
Economy of china and south koreaAnqur Rauth
 
CH: 1 INDIAN ECONOMY ON EVE OF INDEPENDENCE
CH: 1 INDIAN ECONOMY ON EVE OF INDEPENDENCECH: 1 INDIAN ECONOMY ON EVE OF INDEPENDENCE
CH: 1 INDIAN ECONOMY ON EVE OF INDEPENDENCECS. Sohil Gajjar
 
An approach to 12 th five year plan
An approach to 12 th five year planAn approach to 12 th five year plan
An approach to 12 th five year planShaalvii Sharma
 
Twelfth five year plan review
Twelfth five year plan reviewTwelfth five year plan review
Twelfth five year plan reviewSushant Karnik
 
Economic Development of Pakistan
Economic Development of PakistanEconomic Development of Pakistan
Economic Development of PakistanAli Ali
 
Economic profile pakistan 1947
Economic profile pakistan 1947Economic profile pakistan 1947
Economic profile pakistan 1947Muhammad Umair
 
Political Economy of a Post-Colonial State; Economic Development of Pakistan
Political Economy of a Post-Colonial State; Economic Development of PakistanPolitical Economy of a Post-Colonial State; Economic Development of Pakistan
Political Economy of a Post-Colonial State; Economic Development of PakistanShahid Hussain Raja
 
Economic history of bangladesh
Economic history of bangladeshEconomic history of bangladesh
Economic history of bangladeshMdYeakubulHasan
 
Five year plans of India:Goals and Achievements
Five year plans of India:Goals and AchievementsFive year plans of India:Goals and Achievements
Five year plans of India:Goals and AchievementsRavi Varma reddy
 
China in 21st century
China in 21st centuryChina in 21st century
China in 21st centuryAdil Rana
 

What's hot (20)

Five Year Plans of India
Five Year Plans of IndiaFive Year Plans of India
Five Year Plans of India
 
12th five year plan
12th five year plan12th five year plan
12th five year plan
 
Planning in india
Planning in indiaPlanning in india
Planning in india
 
4th five year plan of India
4th five year plan of India 4th five year plan of India
4th five year plan of India
 
Five year plans of India
Five year plans of IndiaFive year plans of India
Five year plans of India
 
Ayub Khan Regime Presentation
Ayub Khan  Regime PresentationAyub Khan  Regime Presentation
Ayub Khan Regime Presentation
 
Five year-plans-of-india
Five year-plans-of-indiaFive year-plans-of-india
Five year-plans-of-india
 
Pakistan Economy Eras
Pakistan Economy ErasPakistan Economy Eras
Pakistan Economy Eras
 
Economy of china and south korea
Economy of china and south koreaEconomy of china and south korea
Economy of china and south korea
 
Ayub khan lums
Ayub khan lumsAyub khan lums
Ayub khan lums
 
Ayub khan economic regime
Ayub khan economic regimeAyub khan economic regime
Ayub khan economic regime
 
CH: 1 INDIAN ECONOMY ON EVE OF INDEPENDENCE
CH: 1 INDIAN ECONOMY ON EVE OF INDEPENDENCECH: 1 INDIAN ECONOMY ON EVE OF INDEPENDENCE
CH: 1 INDIAN ECONOMY ON EVE OF INDEPENDENCE
 
An approach to 12 th five year plan
An approach to 12 th five year planAn approach to 12 th five year plan
An approach to 12 th five year plan
 
Twelfth five year plan review
Twelfth five year plan reviewTwelfth five year plan review
Twelfth five year plan review
 
Economic Development of Pakistan
Economic Development of PakistanEconomic Development of Pakistan
Economic Development of Pakistan
 
Economic profile pakistan 1947
Economic profile pakistan 1947Economic profile pakistan 1947
Economic profile pakistan 1947
 
Political Economy of a Post-Colonial State; Economic Development of Pakistan
Political Economy of a Post-Colonial State; Economic Development of PakistanPolitical Economy of a Post-Colonial State; Economic Development of Pakistan
Political Economy of a Post-Colonial State; Economic Development of Pakistan
 
Economic history of bangladesh
Economic history of bangladeshEconomic history of bangladesh
Economic history of bangladesh
 
Five year plans of India:Goals and Achievements
Five year plans of India:Goals and AchievementsFive year plans of India:Goals and Achievements
Five year plans of India:Goals and Achievements
 
China in 21st century
China in 21st centuryChina in 21st century
China in 21st century
 

Similar to Land survey and soil mapping plans during Seventh Five-Year Plan

5 yearrrrrrrrrrrr by aswin thayyil snes
5 yearrrrrrrrrrrr by aswin thayyil snes5 yearrrrrrrrrrrr by aswin thayyil snes
5 yearrrrrrrrrrrr by aswin thayyil snesaswinabcxyz
 
5 yearrrrrrrrrrrr
5 yearrrrrrrrrrrr5 yearrrrrrrrrrrr
5 yearrrrrrrrrrrraswinabcxyz
 
5 year plan ppt
5 year plan ppt5 year plan ppt
5 year plan pptprivate
 
Gk for law exams economics and science
Gk for law exams economics and scienceGk for law exams economics and science
Gk for law exams economics and sciencekeaton01167
 
Apr vol44 no4
Apr vol44 no4Apr vol44 no4
Apr vol44 no4aliuzgan
 
3rd Five Year Plan (1961-1966)
3rd Five Year Plan (1961-1966)3rd Five Year Plan (1961-1966)
3rd Five Year Plan (1961-1966)shubhanshu singhai
 
Five Year Plans of India
Five Year Plans of IndiaFive Year Plans of India
Five Year Plans of IndiaRaja Adapa
 
Five-Year-Plans project file class 12
Five-Year-Plans project file class 12Five-Year-Plans project file class 12
Five-Year-Plans project file class 12DevPatel395431
 
development experiences of india and neighbour countries
development experiences of india and neighbour countriesdevelopment experiences of india and neighbour countries
development experiences of india and neighbour countriesguestf4d2be
 
five year agriculture plan
five year agriculture plan five year agriculture plan
five year agriculture plan khushbu2612
 
Fiveyearplans 130430050724-phpapp01
Fiveyearplans 130430050724-phpapp01Fiveyearplans 130430050724-phpapp01
Fiveyearplans 130430050724-phpapp01Suhel Khan
 
Dev Planning concepts and Prctices MPDD.pptx
Dev Planning concepts and Prctices MPDD.pptxDev Planning concepts and Prctices MPDD.pptx
Dev Planning concepts and Prctices MPDD.pptxshahidadil2
 
Six Decades Post Indeoendence Final
Six Decades Post Indeoendence FinalSix Decades Post Indeoendence Final
Six Decades Post Indeoendence Finalgueste5a877
 
Economic planning in india
Economic planning in indiaEconomic planning in india
Economic planning in indiaMD SALMAN ANJUM
 

Similar to Land survey and soil mapping plans during Seventh Five-Year Plan (20)

5 year plan
5 year plan 5 year plan
5 year plan
 
1 to 11.
1 to 11.1 to 11.
1 to 11.
 
5 yearrrrrrrrrrrr by aswin thayyil snes
5 yearrrrrrrrrrrr by aswin thayyil snes5 yearrrrrrrrrrrr by aswin thayyil snes
5 yearrrrrrrrrrrr by aswin thayyil snes
 
5 yearrrrrrrrrrrr
5 yearrrrrrrrrrrr5 yearrrrrrrrrrrr
5 yearrrrrrrrrrrr
 
5 year plan ppt
5 year plan ppt5 year plan ppt
5 year plan ppt
 
Gk for law exams economics and science
Gk for law exams economics and scienceGk for law exams economics and science
Gk for law exams economics and science
 
Apr vol44 no4
Apr vol44 no4Apr vol44 no4
Apr vol44 no4
 
3rd Five Year Plan (1961-1966)
3rd Five Year Plan (1961-1966)3rd Five Year Plan (1961-1966)
3rd Five Year Plan (1961-1966)
 
Five Year Plans of India
Five Year Plans of IndiaFive Year Plans of India
Five Year Plans of India
 
Five-Year-Plans project file class 12
Five-Year-Plans project file class 12Five-Year-Plans project file class 12
Five-Year-Plans project file class 12
 
development experiences of india and neighbour countries
development experiences of india and neighbour countriesdevelopment experiences of india and neighbour countries
development experiences of india and neighbour countries
 
five year agriculture plan
five year agriculture plan five year agriculture plan
five year agriculture plan
 
Fiveyearplans 130430050724-phpapp01
Fiveyearplans 130430050724-phpapp01Fiveyearplans 130430050724-phpapp01
Fiveyearplans 130430050724-phpapp01
 
Five year plans
Five year plansFive year plans
Five year plans
 
Dev Planning concepts and Prctices MPDD.pptx
Dev Planning concepts and Prctices MPDD.pptxDev Planning concepts and Prctices MPDD.pptx
Dev Planning concepts and Prctices MPDD.pptx
 
Six Decades Post Indeoendence Final
Six Decades Post Indeoendence FinalSix Decades Post Indeoendence Final
Six Decades Post Indeoendence Final
 
SDG
SDG SDG
SDG
 
five year.ppt
five year.pptfive year.ppt
five year.ppt
 
Five year plans
Five year plansFive year plans
Five year plans
 
Economic planning in india
Economic planning in indiaEconomic planning in india
Economic planning in india
 

More from Neeraj Sharma

key concepts of marketing 1
key concepts of marketing 1key concepts of marketing 1
key concepts of marketing 1Neeraj Sharma
 
total quality management
total quality managementtotal quality management
total quality managementNeeraj Sharma
 
Total quality management
Total quality managementTotal quality management
Total quality managementNeeraj Sharma
 
Key concepts of marketing
Key concepts of marketing Key concepts of marketing
Key concepts of marketing Neeraj Sharma
 

More from Neeraj Sharma (6)

key concepts of marketing 1
key concepts of marketing 1key concepts of marketing 1
key concepts of marketing 1
 
A. k. das gupta,
A. k. das gupta,A. k. das gupta,
A. k. das gupta,
 
Leadership
LeadershipLeadership
Leadership
 
total quality management
total quality managementtotal quality management
total quality management
 
Total quality management
Total quality managementTotal quality management
Total quality management
 
Key concepts of marketing
Key concepts of marketing Key concepts of marketing
Key concepts of marketing
 

Recently uploaded

Geoffrey Chaucer Works II UGC NET JRF TGT PGT MA PHD Entrance Exam II History...
Geoffrey Chaucer Works II UGC NET JRF TGT PGT MA PHD Entrance Exam II History...Geoffrey Chaucer Works II UGC NET JRF TGT PGT MA PHD Entrance Exam II History...
Geoffrey Chaucer Works II UGC NET JRF TGT PGT MA PHD Entrance Exam II History...DrVipulVKapoor
 
Jordan Chrietzberg In Media Res Media Component
Jordan Chrietzberg In Media Res Media ComponentJordan Chrietzberg In Media Res Media Component
Jordan Chrietzberg In Media Res Media ComponentInMediaRes1
 
Farrington HS Streamlines Guest Entrance
Farrington HS Streamlines Guest EntranceFarrington HS Streamlines Guest Entrance
Farrington HS Streamlines Guest Entrancejulius27264
 
PART 1 - CHAPTER 1 - CELL THE FUNDAMENTAL UNIT OF LIFE
PART 1 - CHAPTER 1 - CELL THE FUNDAMENTAL UNIT OF LIFEPART 1 - CHAPTER 1 - CELL THE FUNDAMENTAL UNIT OF LIFE
PART 1 - CHAPTER 1 - CELL THE FUNDAMENTAL UNIT OF LIFEMISSRITIMABIOLOGYEXP
 
Jason Potel In Media Res Media Component
Jason Potel In Media Res Media ComponentJason Potel In Media Res Media Component
Jason Potel In Media Res Media ComponentInMediaRes1
 
DBMSArchitecture_QueryProcessingandOptimization.pdf
DBMSArchitecture_QueryProcessingandOptimization.pdfDBMSArchitecture_QueryProcessingandOptimization.pdf
DBMSArchitecture_QueryProcessingandOptimization.pdfChristalin Nelson
 
Objectives n learning outcoms - MD 20240404.pptx
Objectives n learning outcoms - MD 20240404.pptxObjectives n learning outcoms - MD 20240404.pptx
Objectives n learning outcoms - MD 20240404.pptxMadhavi Dharankar
 
Transdisciplinary Pathways for Urban Resilience [Work in Progress].pptx
Transdisciplinary Pathways for Urban Resilience [Work in Progress].pptxTransdisciplinary Pathways for Urban Resilience [Work in Progress].pptx
Transdisciplinary Pathways for Urban Resilience [Work in Progress].pptxinfo924062
 
How to create _name_search function in odoo 17
How to create _name_search function in odoo 17How to create _name_search function in odoo 17
How to create _name_search function in odoo 17Celine George
 
BBA 205 UNIT 3 INDUSTRIAL POLICY dr kanchan.pptx
BBA 205 UNIT 3 INDUSTRIAL POLICY dr kanchan.pptxBBA 205 UNIT 3 INDUSTRIAL POLICY dr kanchan.pptx
BBA 205 UNIT 3 INDUSTRIAL POLICY dr kanchan.pptxProf. Kanchan Kumari
 
4.9.24 School Desegregation in Boston.pptx
4.9.24 School Desegregation in Boston.pptx4.9.24 School Desegregation in Boston.pptx
4.9.24 School Desegregation in Boston.pptxmary850239
 
BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 11 (CẢ NĂM) - FRIENDS GLOBAL - NĂM HỌC...
BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 11 (CẢ NĂM) - FRIENDS GLOBAL - NĂM HỌC...BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 11 (CẢ NĂM) - FRIENDS GLOBAL - NĂM HỌC...
BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 11 (CẢ NĂM) - FRIENDS GLOBAL - NĂM HỌC...Nguyen Thanh Tu Collection
 
Unit :1 Basics of Professional Intelligence
Unit :1 Basics of Professional IntelligenceUnit :1 Basics of Professional Intelligence
Unit :1 Basics of Professional IntelligenceDr Vijay Vishwakarma
 
BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 8 - CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC ...
BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 8 - CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC ...BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 8 - CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC ...
BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 8 - CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC ...Nguyen Thanh Tu Collection
 
4.9.24 Social Capital and Social Exclusion.pptx
4.9.24 Social Capital and Social Exclusion.pptx4.9.24 Social Capital and Social Exclusion.pptx
4.9.24 Social Capital and Social Exclusion.pptxmary850239
 
The Emergence of Legislative Behavior in the Colombian Congress
The Emergence of Legislative Behavior in the Colombian CongressThe Emergence of Legislative Behavior in the Colombian Congress
The Emergence of Legislative Behavior in the Colombian CongressMaria Paula Aroca
 
Paul Dobryden In Media Res Media Component
Paul Dobryden In Media Res Media ComponentPaul Dobryden In Media Res Media Component
Paul Dobryden In Media Res Media ComponentInMediaRes1
 
LEVERAGING SYNERGISM INDUSTRY-ACADEMIA PARTNERSHIP FOR IMPLEMENTATION OF NAT...
LEVERAGING SYNERGISM INDUSTRY-ACADEMIA PARTNERSHIP FOR IMPLEMENTATION OF  NAT...LEVERAGING SYNERGISM INDUSTRY-ACADEMIA PARTNERSHIP FOR IMPLEMENTATION OF  NAT...
LEVERAGING SYNERGISM INDUSTRY-ACADEMIA PARTNERSHIP FOR IMPLEMENTATION OF NAT...pragatimahajan3
 

Recently uploaded (20)

Geoffrey Chaucer Works II UGC NET JRF TGT PGT MA PHD Entrance Exam II History...
Geoffrey Chaucer Works II UGC NET JRF TGT PGT MA PHD Entrance Exam II History...Geoffrey Chaucer Works II UGC NET JRF TGT PGT MA PHD Entrance Exam II History...
Geoffrey Chaucer Works II UGC NET JRF TGT PGT MA PHD Entrance Exam II History...
 
Jordan Chrietzberg In Media Res Media Component
Jordan Chrietzberg In Media Res Media ComponentJordan Chrietzberg In Media Res Media Component
Jordan Chrietzberg In Media Res Media Component
 
Farrington HS Streamlines Guest Entrance
Farrington HS Streamlines Guest EntranceFarrington HS Streamlines Guest Entrance
Farrington HS Streamlines Guest Entrance
 
Chi-Square Test Non Parametric Test Categorical Variable
Chi-Square Test Non Parametric Test Categorical VariableChi-Square Test Non Parametric Test Categorical Variable
Chi-Square Test Non Parametric Test Categorical Variable
 
PART 1 - CHAPTER 1 - CELL THE FUNDAMENTAL UNIT OF LIFE
PART 1 - CHAPTER 1 - CELL THE FUNDAMENTAL UNIT OF LIFEPART 1 - CHAPTER 1 - CELL THE FUNDAMENTAL UNIT OF LIFE
PART 1 - CHAPTER 1 - CELL THE FUNDAMENTAL UNIT OF LIFE
 
Jason Potel In Media Res Media Component
Jason Potel In Media Res Media ComponentJason Potel In Media Res Media Component
Jason Potel In Media Res Media Component
 
DBMSArchitecture_QueryProcessingandOptimization.pdf
DBMSArchitecture_QueryProcessingandOptimization.pdfDBMSArchitecture_QueryProcessingandOptimization.pdf
DBMSArchitecture_QueryProcessingandOptimization.pdf
 
Objectives n learning outcoms - MD 20240404.pptx
Objectives n learning outcoms - MD 20240404.pptxObjectives n learning outcoms - MD 20240404.pptx
Objectives n learning outcoms - MD 20240404.pptx
 
Transdisciplinary Pathways for Urban Resilience [Work in Progress].pptx
Transdisciplinary Pathways for Urban Resilience [Work in Progress].pptxTransdisciplinary Pathways for Urban Resilience [Work in Progress].pptx
Transdisciplinary Pathways for Urban Resilience [Work in Progress].pptx
 
How to create _name_search function in odoo 17
How to create _name_search function in odoo 17How to create _name_search function in odoo 17
How to create _name_search function in odoo 17
 
BBA 205 UNIT 3 INDUSTRIAL POLICY dr kanchan.pptx
BBA 205 UNIT 3 INDUSTRIAL POLICY dr kanchan.pptxBBA 205 UNIT 3 INDUSTRIAL POLICY dr kanchan.pptx
BBA 205 UNIT 3 INDUSTRIAL POLICY dr kanchan.pptx
 
4.9.24 School Desegregation in Boston.pptx
4.9.24 School Desegregation in Boston.pptx4.9.24 School Desegregation in Boston.pptx
4.9.24 School Desegregation in Boston.pptx
 
Plagiarism,forms,understand about plagiarism,avoid plagiarism,key significanc...
Plagiarism,forms,understand about plagiarism,avoid plagiarism,key significanc...Plagiarism,forms,understand about plagiarism,avoid plagiarism,key significanc...
Plagiarism,forms,understand about plagiarism,avoid plagiarism,key significanc...
 
BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 11 (CẢ NĂM) - FRIENDS GLOBAL - NĂM HỌC...
BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 11 (CẢ NĂM) - FRIENDS GLOBAL - NĂM HỌC...BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 11 (CẢ NĂM) - FRIENDS GLOBAL - NĂM HỌC...
BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 11 (CẢ NĂM) - FRIENDS GLOBAL - NĂM HỌC...
 
Unit :1 Basics of Professional Intelligence
Unit :1 Basics of Professional IntelligenceUnit :1 Basics of Professional Intelligence
Unit :1 Basics of Professional Intelligence
 
BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 8 - CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC ...
BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 8 - CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC ...BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 8 - CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC ...
BÀI TẬP BỔ TRỢ 4 KĨ NĂNG TIẾNG ANH LỚP 8 - CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC ...
 
4.9.24 Social Capital and Social Exclusion.pptx
4.9.24 Social Capital and Social Exclusion.pptx4.9.24 Social Capital and Social Exclusion.pptx
4.9.24 Social Capital and Social Exclusion.pptx
 
The Emergence of Legislative Behavior in the Colombian Congress
The Emergence of Legislative Behavior in the Colombian CongressThe Emergence of Legislative Behavior in the Colombian Congress
The Emergence of Legislative Behavior in the Colombian Congress
 
Paul Dobryden In Media Res Media Component
Paul Dobryden In Media Res Media ComponentPaul Dobryden In Media Res Media Component
Paul Dobryden In Media Res Media Component
 
LEVERAGING SYNERGISM INDUSTRY-ACADEMIA PARTNERSHIP FOR IMPLEMENTATION OF NAT...
LEVERAGING SYNERGISM INDUSTRY-ACADEMIA PARTNERSHIP FOR IMPLEMENTATION OF  NAT...LEVERAGING SYNERGISM INDUSTRY-ACADEMIA PARTNERSHIP FOR IMPLEMENTATION OF  NAT...
LEVERAGING SYNERGISM INDUSTRY-ACADEMIA PARTNERSHIP FOR IMPLEMENTATION OF NAT...
 

Land survey and soil mapping plans during Seventh Five-Year Plan

  • 1.
  • 2. Land survey in Seventh Plan SO.5 MILLION. HECTARES of land is proposed to be surveyed during the Seventh Five-Year Plan. Out of this, detailed soil surveys will be undertaken on 25 lakh hectares, priority delineation surveys on 400 lakh hectares and reconnisance surveys on. 80 lakh hectares. In addition, sample soil surveys will be conducted in 6,000 blocks at an estimated cost of Rs. 10 crore. Till 1983-84, priority delineation surveys had been accomplished on 54.43 million hectares and detailed soil surveys on 7.2 million hectares. Sample soil surveys had also been completed in 4,710 blocks. In the financial year 1984-85, 50 lakhs hectares would be covered by priority delineation surveys and 3.67 lakh hectares by detailed soil surveys. Sample surveys would also be undertaken in 980 blocks of 64 hectares each. The expenditure on the project is estimated at Rs. 97 lakh. The major responsibility of the All India' Soil and Land Use Survey, which functions through four regional centres and three sub-centres, is to carry out priority delineation surveys !n the 36 catchments of river valley projects and flood-prone rivers covered by two Centrally-sponsored schemes. The organisation has established a Remote. Sensing Centre in collaboration with. UNDP/FA'O. It also collaborates with the Indian Space Research Organisation, the Space Application Centre and the National Remote Sensing Agency. During the Seventh Plan, the scheme for creating new soil survey organisations and strengthening the existing ones, initiated during the Fifth Plan but transferred to the State sector during 1979-80 on the recommendation of the National Development Council, is also proposed to be revived and extended to the States with 50 : 50 matching allocation between the Centre and the States. An outlay of Rs. 3 crore has been proposed in the Plan for this purpose. 0
  • 3. YOJ'ANA Volume .291Number 6 • April I-IS, 19851Chaitra 11-25, 1907 DR. V.R.M. DESAI 4 How economy performed ,under Mrs. Indira Gandhi HARBHAJAN SINGH 7 Why urban economic ineq1,1ality? " .; K. D. NAUTIYAL AND 10 What price this development? G N. PANDEY • SREELEKHA BASU 13 Floods and water management H. SEETHARAMA RAO VASANT SATIIE 18 20 Devolution of more funds to States The alternative' . G. NARAYANA REDDY 25 Youth in rural developme?t .. G. RA VINDRAN NAIR ---~ 30 Why non-formal edufation ! Chief Editor-R. Thukral . Editor- B. K. Dhusiar. Assistant Editor-KamleshMackreU' : Correspondent-M. Yunus Siddi- qui: Suh-Editor-Mangal Sen, Senior Corresponden~l Ahmedabad. V. G. Deshpande, Bombay :Smt. V. M. JOShi, Calcutta . B: K. Chakravarty, Hyderabad : S. V. Sripati Rao, Madras: 'D. Janak, Trivandrum : N. Kesavan Nair, Gauooti: Biraj Dass : Business Manager; L R. Batra. Yojana seeks to carry the mess'lge of the plan to .all sections of the people and promote a more earnest diScussion' on problems of social and economic development. Although published by the Ministry of Information and Broadcasting, " OjlOi'& is not restricted to expressing the official point of . v:ew. YG;~na is issued. every fortnight in Assamese, B(>ngali, English, (iujarati, Hindi, Malyalam.lfaralhi. Tamil, Tdug1.1 and Urdu. Editorial Office : Yojana Bhavan Parliament Street, New Delhi-llOOOI, Telegraphic Address: Yojana New Delhi. Telephone : 383655, 387910, 385481 (extension 402 and 373). . For new subscriptions. renewals, enquiries please contact : The Business Manager, Publications DivisioD,Patiala House, New Delhi-IlOOOl. Our conpibutors' Dr. V. R. M. Desai-Freelance -Journalist, Bom- bay; Harbbajan Singh-Lecturer, Khalsa College, Dellii University, Delhi; K. D: Nautiyal and G. N. Pandey..,.-Joint Director and Senior ,Research Officer respectively, State Planning Institute, Luckriow (UP); Sreelekha Rasu-Director, Statistics, Central Water Commission, New :Qelhi;....H. Seetharama Rao--Spe- cial Correspondent, PTI, New Delhi; Vasant Satbe- Union Minister of Steel, Mines and Coal, New Delhi; G. Narayana. Reddy-Asstt. Director, National Insti- tute of Rural Development, Hyderabad; and G. Ravindran Nair-Freel8,nce Journalist, New Delhi. --~---------------------Subscription : Inland : One year Rs. 30, Two years Re. 53. Three years .RI. 75.
  • 4. • .. .How economy performed under Mrs. Indira Gand.hi Dr~ V.R.M. Desai Mrs. Indira Gandhi's regime witnessed a tremendous leap of economic development through a ptanned economy, says'the author. The full impact of her various programmes 'can be ~een in bringing a large portion of people above the pove!'ty line. The author observes that the IRDP Programme is the greatest contribution of Mrs. Gandhi in mitigating the sufferings of the poorest among the poor. THE FORMER .PRIME MINISTER, Mrs Indira Gandhi dominated the Indian scene .for nearly two decades. Her . contributions to the Indian eco;llOmy are significant and remark- able. An enquiry into the impact she made on Indian economy is, therefore, both natural and fruit- ful. A thorough: investigation of the subject will have to concern itself with various facets of the national life, economic, polltkal social, cultural and scienti- fic. Mrs. Indira Gandhi took over reigns of Govern- ment on January 24, 1966 as the third Prime Minis- ter of India consequent to the sudden death of Lal Bahadur Shastri at Tashkent. When :Mrs. Indira Gandhi. b,ecame Prime Minister the times were just trying. The economy was in shambles, Famine stalked the land. Under her stewardship,India became self-sufficient in foodgrains. Significant advances were mad~'in nuclear enef'gy, oil production, space and polar exploration. 4 , Economy gets new direction On the economic front, she was instrun:.ental in in- troducing social control on banks in 1968. It was she who gave a new direction to the Indian econol~y in moulding the financial institutions as catalytIc ~gents for promoting economic development for the welfare of the masses. In 1969, the major 14 banks in India were nationalized with a view to miling the banking industry' an instrurnent in bringing social and econorrdc change. It was the policy guidelines issued by the Gbvern- ment of India under the able leadership of Mrs. Indira Gandhi that has enabled most of the banks to play an effective role. in mitigating the pangs of pov- erty in India. Six commercial b&n.1<,swith deposits over Rs. 200 crores and 'above were nationalized by an Ordinance in 1980. She was the architect of the 10 Point Progranune to help the weaker sections of the society. Real incomes up The average Indian is certainly better off noW than in 1966. His real in<;ome today is 40 per cent mare tban in 1966. Per capita consumption of cereals, edible oils and vanaspati and milk grew rapidly dur- ing her_period. Social indicators in regard to health showed substantial improvement.- Literacy went up from 24 per cent to 36 per cent. The 'consumption of electricity in the a.verage household hao; trebled from 24 to 75 miits. '''hat is more, television has made a very rapid headway after 1968-69. In fact, the country made an entry into an electronic and computer age. All this in spite of an unchecked rise in lXlpulation from less t11an 500 million to around 72 5 million! YajS1!l3, Apri11-15, 1985
  • 5. High lights * During the 16 years of Indira Gandhi's period of Prime Ministership, real gross national product w~nt up at an annual average rate (compound) of 4.4 per cent. Currently, the Indian economy is definitely witnessing a growth rate of 5.0 per cent per annum. The step-up in the annual average growth rate is the mOst important economic gain during the Indira Gandhi era. . * Though it began with Q: severe drought in food- grams production, but ended with a sequence; of record bumper harvest~. DUling the three years from 1982-83 to 1984.-85 per capita fOod supplies would be above 470 graunnes as compared with 450 grammes from 1962- 63 to 1964-65. - * The gross irrigated area went up du'ring the Indira Gandhi period from 31 mIllion hectares in' 1965-66 to 63 million hectares by 1984-85 - ..:--~lOOper cent increase in 19 years, the bulk of the increase occuring'during 1974-75 to 1984-85. • Fertilizer consumption (NPK) was barely / 80,000 tonnes in 1950-1951 and by 1965-66, it bas gone up to about 8lakh tonnes. By 1984- 85; it bad risen to about 7.8 million tonnes, a nearly ten-fold increase in 19 years. * Nearly 52 million hectares were under the- , high yielding varieties in 1984-85. '" In industry, the annual rate of growth WtS about 5 per c:ent. Industrial capacity growth seems to be higher at 5.5 per cent. While, coal production went up by 117 per cent, cem~nt. production increased by threefold, finished steel went-up by two-fold, electricity increased by fivefold and production of crude oil increased. '" In transport, the rate of annual growth was at 3 per cent, road transport and air trans- port witnessed acceleration. ' * Nominal interest rates moved up significant- ly and numerous tax concession came to be accorded to the savers.- * The eXternal assistance in 1966-1967 was 4.5 Ref cent of GNP and external debt by i967- 1968 formed 27 per cent ot the GNP. By 1983-84 the former had come down to 1.5 , me, whidl is unique in its nature in attempting to , solve the problems at the family level, is the greatest 'contributiOn she made fu mitigating the sufferings of the poorest among the poor. In conclusion, the Indira Gandhi era had witnessed a tremendous leap and surge of economic develop- me,nt through a planned economy. of which the pub- lic sector is a keynote. This in itself is a tribute to the wisdom of Indira Gandhi. The number of. small industries multiplied more tillin six-fold during this period and this has proved a dynamic and vibrant sector of industry; contribut- ing more tfu¥1 Rs. 2,000 crores to exports, and pro- viding more employment than large industries. Mrs. Gandhi has left the economy with enough wind to keep running, indeed to pick up pace in the peIiod ahead. . Food _productiqn up Foodgrains production more than doubled from 72.3 million tonnes to 152 million toD.I.les.The pcr hectare yield of major crops showed substantial im- provement. Net irrigated area rose from 26.3 million hectares to 41.5 million hectares. Following the adoption of new agricultural strategy in the' 1966 . kharif, there has been revolution ill inputs in Indian 'agriculture, which increased much more rapidly than output. Between 1965-66 and 1984-85, the annual rate of increase in the area under high yielding varie- ties and pesticides were phenomenal. Fertilizerg, oil engines and electric pumpsets and tubewells also ea,me to be widely used. The public sector expendi- tUre on agricultural research and education rose sub~ stantial1y at the annual rate of 29:4 per cent, com- ~ pared to only 14.7 per cent iJ! the ,first period (1950-51 to 1965-66). Industrial production register- ed an annual growth of 5 per cent. Industries sUch as chemical and chemical products, petroleum pro- du~ machine tools, non-electrical machinery show- . ed i much higher growth than the average growth for ~ all industries. On the other hand; the trade deficit ~ gone up by about nine' times. The external value of ,l)1pee depreciated considerably. While, wholesale price index increased by 8.9 per cent, the consumer price index rose by 7.9 per. cent per annum. Majoribanks!nationalised Bank nationalization also resulted in the funda- mental shift fro~ class banking to mass banking. The . banking network reached out to' the poor and into the hinterland. Of the 36,261 branches o~ned by the . commercial .banks since July 19, 1969,. upto end- March 1984, 22,766 offices or 62.8 per cent were, located in unbanked centres. The proportion of bank offices in rural/areas stood at 55.6 per cent of total bank offices in India. Deposit growth gathered mo- mentum and grew at all annual growth of 18.2 per cent. And, ordinary farmers, road transport opera- tors, small industrialists and the self-employed trebl- ed their share in total bank loan& tc;>38 per cent. The small scale industries and 'agriculture are im- portant components of the priority sector, constitut- ing about 70 per cent of priority sector advl'..nces.This rapid transform~tion of a primary economic institu- tion must rate as front-ranking achievement. The leadership given by Mr. Indira Gandhi has , really strengthened the banks and motivated them to . go in. a big way in helping the most unfortunate sec- tions of people in this country. The IRDP Program- Yojana, April 1-15, 1985 5
  • 6. Growtb rates: key indicators per cent of GNP and latter to 16.9 per cent of the GNP. ~In 1967-1968, debt servicing charges were 18 per cent of "current ~~ccount receipts and by 1983-84, they constituted about 7.6 per cent of the receipts. * Punjab, Haryana, Maharashtra, Andhra Pra- desh, Gujarat, Uttar Pradesh, have been show- ing higher growth rates h~gher thc..n popu- lation growth rate. . .* Inflation too showed an upward trend dur- ing the period despite fiscal discipline. * The special emphasis in policy during Mrs. Indira Gandhi's period seems to have been ~n social justice. Tliis was sought to be imple- mented through a number of anti-poverty pro- grammes, special schemes and me€~sures for tribals and the scheduled castes, discrimina- tory bank .loans based on the criteria of low- size, the self-employed, neglected sectors etc. Since during the past decade food supplies have been rising the national rural employ- ment scheme has been formulated. Minimum needs progr~mmes have been brought in. To- gether the full i!TIpact of all this has to be seen in the movement of the proportion of people below the poverty line. / Selected Indicators Area. Irrigation. . . . Area under High Yield variety . Furtiliser Consumption . Pesticides Consumption FARM MECHANISATION Tractors . Oil Engines Electric Pumpset , . . Electricity Consumption in agriculture Foodgrains production • . Per hectare yield. . Industrial Production . Exports Imports BANKING Branches Deposits . Credit Priority Sector PRICES Wholesale Prices . Consumer Price Index .' NATIONAL INCOME Real National Income. Per Capita Income . Gross Capital Fonnation Gross Domestic Savings Net Savings 6 Average Annual Growth between 1950-51 1965-66 & & 1965-66 1984-85 1.3 0.6 2.1 2.8 20.7 17.6 13.5 7.0 14.1 12.7 15.2 . 13.9 11.8 23.7 12.9. 16.0 13.3 1.8 4.0 1.3 3.4 7.6 4.5 2.0 14.8 5 3 14.0 3.6 10.8 8.4 18.2 9.8 17.4 37.2 ' 2.9 8.9 3.6 7.9 3.3 3.9 1.2 l,.6 .10.7 13.8 9.5 14.2 9.6 14.5 ,Record production by Rashtriya Chemical Fertilizers THE RASHTRIYA CHEMICALS AND FERTI- LIZERS (ReF), a public undertaking under the Ministry of Chemjcals and Fertilizers, has achieved production and t:xceeded the production targets record during April 1984-January 1985. - During'this period, the total production of Nitrogen at 247164 metric tonnes exceeded the target by 5 per cent. The production of phosphate at 83486 metric ton- neS and potash at 35145 metric tonnes were 4 .per cent. and 6 per cent higher than the targets fixed for theso months. The company produced 32919 'metric tonnes of methanol during this period exceeding the target by 11.4 per cent. . Another significant achievement of the company has been the cap'acity utilisation of 91 per cent d nutrients during the period. In the case of methanol 1he capacity utilisation has been 109.7 per cent. The production records during these 10 months have been a considerable increase over the corres- ponding period last year. In the case of nitrogen the increase has been 2.6 per cent, phosphate. 7.6 per cent and potash 6.4 per cent. . The ThaI Super Fertilizer Project of the RCF, con- sisting of two ammonia plants of 1350 metric to'nnes per day each and three urea plants of 1500 metric t(mnes per day each is already completed. The trial production from the first ammonia plant has already st~rted. The plants have been commissioned in re- COl'dtime and without any cost over-run. 0 Working group on 20-point programme MINISTRY OF PLANNING has set up a 20- Member Working Group' to study the development of indicator~lindices for tracking the progress of new 20-point programme. Dr. K. C. Seal, :Qirector..General, Central Statistical Organisation (CSO) will be the Chairman and Dr. P. P. Sangal, Additional Director, CSO th~ Member Secretary of the Working Group. The Working Group will take stock of the present work being undertaken by the State Governments and Central Ministries and would make conc....rete recom- mendations for development of suitable indicators I indices relating to the 20-Point Programme. .The Working Group has been set up in pUr8.uance of the recommendations of the Sixth Conference of Central and State Statistical .Organisation (CSSO).O Yajana, April 1-15, 1985
  • 7. • There is a greater need to understand the various force$ strengthening the economic drift to grapple with the ever widening in': equality of income of the people. It seems the firtn commitment by the government regarding 'Justice. social. economic and political Equality of status. opportunity" and income " are not only conveniently forgotten Qut even the honest protestations are hardly made. laments the author. ECONOMIC INEQUALITY IS .ONE of the most striking features" of our pattern 'cf living-unequal distribution of wealth and income being it.s two broad facets. The inequality once g~nerated tends to perpe- tuate and widen itself. Consequently, a vast majority of people just manage to survive in conditions of ab- ject poverty, a few privileged ones wallow in the lap of extravagance. Magnitude inequality.., The development economists suggest that the in-' equality continues to increase until the weight of non- agricultural sector reaches 60 to 70 per cent of the total labour force. The leaders of fudependent India were alreadY aware of this socio-economic challenge. They percei~edthe consequences of the increase in C1C magnitude ot econon:ic inequality as a result of the combin~d effects of the proposed organisational struc- tural and institutional changes. They, therefore, sought to give dear directions in the Constitution of India it- s~lf. The preamble sets before us an ideal of social jus- tice. The pirective Principles of State Policy enjoin upon Parliament to pursue a clearly demarcated Why urban economic inequality? Harbhajan Singh course that would be conducive to social and econo:. mic uplift of the country as a whole. When the framer,s of national development priorities embarked upon the experiment of democratic planning in the early fifties, they were clear about the goals. They aptly formulated, am(mg others; the two main objectives of the planning, that is (1) to increase pro- duction in oroer to achieve higher levels of living and (2) to reduce inequalities in wealth and income so that "the operation of the economic system does not result in concentration of wealth and means of production to the common detrimerit." It was envisaged that the development in agriculture and indu,strialisation of the economy would lay a firm base for future increase in productivity and the emerging reward structure would be largely equitable and, thus, based on social justice. In this connection it was thought that the 150 years' experience of industrially advanced econdmies regard- ing economic development and equitable distribution would be of immense help and guidance. Alas, this dream stands shattered on both the counts. ". ) Slow and misconceived growth The pace of economic growth in India has been slow and rather misconstrued. The comprehensive land re- "- forms have not been rigorously implemented. This wor- sened the situation for the rapidly growing poor. Those who do not have 'natural' access to work on land or other productive as,Setsare either forced to migrate to urban areas in s.earch of jobs or reconcile themselveg as landless workers. The gap between the owner far- mers and the share-croppers has suddenly started widening with the introduction of technological inno- vation,S by the former. rise in population pressure among the latter and the phenmr.cnal inflation affect- ing both in sharp contrast. Rural to urban migration largely takes place through the migrants' entry into the informal urban sector Yojana, April 1-15, 1985 29 DPD/84-c2 • • 7
  • 8. because a very large proportion of these distress mig- rants are unskilled, illiterate and devoid of achievement - motivation. The bulk: of the urba,n population consti- tutiS the ignorant, illiterate, downtrodden, supersti- tiou,s and extremely poor people. Extreme poverty ac- companied by high incidence of unemployment and lack of any social security provision whats'oever, often converts their poverty into a state of complete desti- tution._i:~~;li~.~ The competitive characteristic of the urban infor- mal sector provides more equitable distribution of in- come within the sector at an inadequate and stagnant standard of living. On the other hand, the oligopolistic and privileged modern sector exhibits a very large magnitude of economic inequality within it; The widen- ipg income differentials between the urban informal sector and the modem sector continues to cause a deterioration in the distribution of personal incomes. Moreover, the rules and the institutions which deter- mine how the people constituting the urban infomlal sector get work, are hardly operative. Largely through the efforts of their inmates they get em~loyed in man- ml, unskilled, irregular and casual jobs. Tn the latter case, they work on daily-wage basis wherein neither the tenure nor the place of work is fixed and generally they move from place to place, from jobs to jobs and from one employer to another in search of jobs. Being mostly unorganised they face unstable' working condi- tions and are often discriminated against. The work offered involves little on-tne-jobs training and, there- fme, even after years of experience these workers re- main totally unskilled-and, therefore, their future pros- pects remain bleak. Inadequate employment statistics of the unskilled Besides, in large scale manufacturing units, a nefa- rious practice has ~ome to ,c;tayin a very big way, that, is, a large proportion of the jobs in these factories are accomplished through contractors who bring their Own labour. Although these workers may have continuous- .ly served the premises for long, they are never repefted to. be. on the rolls -of ~he factory. Thus, the statistical returns submitted to the government departments, par- ticularly the Annual Survey 'OfIndnstrie~, remain gros- sly inadequate as far as employment statistics of the. unskilled labour arc concerned. Any accident, minor or fatal, befalling these unfortuna~e victims is none of the responsibilities of the managements of these units. Since these units deal with the contractors direct, they refuse to be accountable for such misllaps. Thus, the artefact to cover the day-to-da~ accidents and subse- quent legal-cum-laboUr complications thereof, spells an inescapable doom far those whose precarious econo- mic conditions entrap them into this inhuman capti- vity. The situation gets further tangled on these labou- rers' accepting advance from the contractor in order to temporarily relieve themselves of tlle distress situation which are so frequent among these miserables of the urban informal sector. s •• A little close to the gro,c;slyinadequate and stagnant, Jiving conditions of the urban informal sector starts the lowest among the lower middle category beginning with wayside vegetables and fruit hawkers and unskil- led employees working in the private corporate sector, government departments and public undertaking's. They are fcrlIowed by petty shopkeepers, small producers, primary school teachers, technicians, repairers, par~- engineering personnel, para-medical personnel, retaI- lers and small manufacturers,. A fairly large number of these are self-employed. One dominant character- istic of these self-employed is that their earnings are an amalgam of the reward,s accruing to their labour and capital invested by them. They too are hardnp as compared to the privileged category. The state of privileged ones ,The privilege category includes big entrepreneurs and s'enior administartive, higher technical and pro- fessional employeees. They generally possess markedly superior education, training and experience. Most of them have undergone such training in the 'modern techniques of production as are scarce and hence highly rewarding. In the process of education and training at prestigious educational institutions and through mass communication media exposures at homes, most of them acquire scientific out-look, get socialised and imbibe cultural refinements ..Because of their superior qualities, both of 'nature' as well as 'nurture', they either engage themse1ve3 in or get selected for the top jobs. These jobs are not only highly rewarding at the initial entry points but, also offer bright promotional a,:enues, better working condi- tions and more of security orten being reinforced by stronO' professional associations. By virtue C1f their statu~, wealth and political power they dominate in every sphere of life. i • In this category the entrepreneurs engaged in trade, commerce and m:mufacturing need special mention. Their continuous' prosperity dates back to the shortages in the consumers' good during the days of the second world war and the partition of the country. Price con- trols were reinforced to combat these acute short- , ages. The shortage gave birth to new shortages which led to new price controls. Inflation stOod ;nmpant. "''hile the controls stimulated large scale blackmar- ketinO' the inflation resulted in a direct transfer of in- comefrom the working class to the entrepreneurs and the self-employed. Thus, economic inequality increased: The development programmes initiated durinQ the five year plan aggravated economic inequality. The pr<1- cess of economic development entailing iduced COn- sumption and induced investment has widened the economic inequ'ality. In order to meet this addi- tional demand for goods and services, the cntrepre- 'ncnrs who were able to undertake initial investment received facilities and incentives to expano their units and thlus grew rich. Such as' did not possess the re- quisite capita! or did not do so slided back. Thus, the gap _between the rich and the poor furt.her wi- dened with the passage of time. ' Y0'lana, April 1-15. 1985
  • 9. •• Moreover the demand for goods and services creat- ed by the flow of strikingly uequal incomes has drawn resources away from the production of essential con- sumers' goods to the prestigious luxury items. The production of these items obviously requii'ed a higher degree of mechanisation leading to a higher ~atio of profits to wages and a consonant pattern in the ratio of executive salaries to workers' wages. And this has resulted in the creation of fewer jobs wih a given magnitude of investment.' Also the increased demand for conspicuous consumption has resulted in, the continuous profitability of low priority invcstn:ent. Ineffective controls The controls are generally not properly enforced. This leads to new avenues for corruption, smuggling and blackmarketing. By bribing politicians, immunity from law is claimed. Tl1e entrepreneurs have been evading taxes and excise du~y in a big way. They obtain licences, credit facilities and large number of other, favl;)urs by bribing the bureaucrats and the members of the mling parties at centre and states. The government policies have systematically and continuously favoured these and other professional entrepreneurs. The black marketeers, sm~~glers, hoarders and other criminals have their political patrons. So much so that they are received as impor- tant chief guests at the most prestigious social and religious functions. There is no stigma, whatsoever, against these people. Thi,s is how the growing eco- nomic power is being captured to subvert political power at all the levels-centre, states and local bodies. The entire economy thus. presents an ugly picture of gross IrJsrule and miscons trued economic. planning. Inst~ad of rapid and systematic agricultural deve- lopmentand rural reconstruction calling for suitable or~nisational, stmctural and institutional changes, substantial industrialisation by comI]Jissioning inter- mediate technology, the development strategy has remained highly capital intensive' and urban-industry oriented, notwithstanding some ad-hoc and piecemeal measures for poverty eradication, rural. reconstmction employment generation, etc. These measures left much tb be desired. Moreover, import substitution syndrome, relative neglect of agriculture, llfphazard rural development programmes and colo.ssal wastage or' skilled human resources .led to further deteriora~ tion in the system. The gradually expanding public sector rcmained highly centralised and it has done little to change the distribution of income. On the other hand, it has been used by the vested interests to reinforce their positions, and, thus aggravated -the income inequality. Ever growing inequality of income Despite significant growth in some sectors of the economy during the post-Independence period, there is little controversy ab0ut the existence, perpetuation and widening of economic inequality in the country, particularly in ,urban areas. It is here that the dyna- mics of change has most vividly been felt, The Report - Yojana, April 1-15, 1985 of the ColliIcittee on Distribution of Income and Lev~~ of Living remarks, "The Wide range of vari~- tion that one finds between the top and the bottom tenths of the population clearly reveals the existence of concentration of economic power in the country in its most' generalised form". The Fourth Five Year- Draft outline also admits, "Another area where our effort has so far been feeble and halting; is in narro- wing the disparities in income and property owner- ship". A study conducted by the National Council of Applied Economic Research ob.serves that the bottom 50 percent of the h,ouseholds in India accounted for . a mere 21 percent of income in 1975-76. In the same year the top 10 percent of the households received as much as 34 per cent of the incom'C.A World Bank Study based on the data collected from 66 countries during the period 1950~1971 corr:.pared the shares of income accruing to the bottom 50 percent and the top 5 per cent of the households. In India it was 1~ per cent and 25 per cent l~~~ectively. The corres-' - ponding figureI' for Pakistan were 28 percent and 18 percent; for Bangladesh these were 27 percent and 17 per cent and for Sri Lanka, these were 25 per cent and 19 per cent. Hence, it appears that income ineqqa- lity in India is more acute than in the nei,ghbouriI)g countries and the imbalance within. the country has, perhaps, steeply deteriorated during the last few years. Be~des, the earlier firm commitme~ts by the government regardinp; "Justice, social, eeonomic and political.. ... Equality of status and opportu~nity..: ... " are not only conveniently forgotton but even the honest protestations about redistributive .lntentions arc hardly made. Econon:ic inequality is a complex phenomenon. There is the Gospel that .the economic inequality is preordained and hence inevitable. Aceordipg to this fatalist belief any autonomous reduction in it will be short-lived. Others inclicate that the people can improve their lots and social action can significantly change their relatiVe economic positions. They believe that income inequalities are largely a consequence of voluntary choice under organisational, structural and institutional constraints within which an economic system operates. They, therefore, suggest tnat the economic inequality can be reduced only by changing .the social order. ,Nevertheless. the problem defies a direct scientific explanation. Factor~ governing the distribution of wealth, income; and earnings vary considerably. Ability, chance, inheritance, education, screening of productive potential and the role of organisational, institutional and technological varia- bles have been found to be related tQ earnipgs differ- entials in' the available literature on the subje<;t. Des- pite multiplicity of approaches adopted to examine the causes underlying economic inequality, a reliable, systematic and comprehensiv.e exposition is yd to eC11l1eby. The problem is so complicated that even if the attention is foeussedon income from work only, (Contd. on page 29)
  • 10. A case study of Mirzapur area • What price this develqpnlent ? K.D. Nautiyal 'and G.N. Pandey • .. Many projects are being executed in our country for the development of certain areas. The authors point out that the families uprooted from the project areas are not getting a'fair deal. They suggest that all efforts should be made to see that the - ousted families are settled economically as w.e11as socially. DEVELOPMENTAL EFFORTS being made in various' regions of the country have both right and dark aspects. Bright aspects of the development relate to additional production, rise in incomes and higher consumption patterns of people, while dark shades pertains to sacrifices made by displaced persons. They have to change their occupational pattern and their customs and culture start changing too. Thf-se' in- tangible costs are hardly taken intO account while for- mulating projects and plans. S&'crificesl11adeby the inhabitants are also not compensated even after achi- eving a higher level of development and incomes be- cause of trade oirs in the economy in wbich stronger elements (sections of people) apportion major share of development. In the district of Mirzapur, which h&'sthe distin- ction of locating prestigious high capital intensive projects like Rihand, Dam, Obra Thermal power project, HINDALCO, Churk and Dala Cement 10 Factories, etc. not only the people were uprooted but . also cultural thread was threatened. Interestingly, the area is rich ih the av~ability of minerals, minor forest produce and other natural resources but the impact of development on local people has not b.een to the desired extent and the local inhabitants conti- ' nue to remain. backward. This is because overall per~pective of the econon~y does not give due attenHon to the sections of comnlU- nities and areas which are going to be adversely affected due to the development process. . Adivasis The present analysis is based on afield study of adivasi area of the Mirzapur district. As many •.s 13 Adivasis .communiti~s are found in the district, who are (1) Kols; (2) Maghwars; (3) Kharwars; (4) Che- ros;. (5) Panikas; (6) Bhuiyas; (7) Dhangars; (S)Aga- rias; (9) Pahris; (10) Kirwas; (11) Patharia; (12) Ghasias; and (13) Parahiyas. --Although, these tribes have their own specialities in respect of their traditional skills, social cHstoms, etc. and therefore should have been included ~.s--' scheduled tribes, have however beea. included only as scheduled castes in the censuses. . Safeguarding local interests The authors of this paper on the basis of observa- tions and interaction with the people; have come to ( the c~ncIusion that the development that is taking' plaCe m the area did not take into consideration the specific requirements of tbe people.. Theseadivasis ~ J Y-<1jaJ1a,April 1-15, 1985 •
  • 11. 11 Unemployed (as a result of displacement) 22 NB : Figures1n parenthesis irtdicate percentages to the respective totals. Table Changes in tile occupational pattern of adivasis in the pr6ject areas before. This situati9n can be corroborated from the following table wlJ,en shows that the occupational structure has unde,rgone a serious change to the detri- ment of Adivasis in the Marzapur area. • lOS (100.00) 83 (100.00)Total workers • ~Sl. Activity Employment No. Past Present 2 3 4 L Cultivator 62 (59.05) 2. Agricultural labour 13 (12.38) 3. casual wage e,arners in non- 30 (28.57) 74 (89.16)farm activities ; . 4. Self-employed 3(3.61) .5. Regular salaried 6 (7.23) The table shows that agriculture sector has compk- tely vanished from the scene and the erstwhile culti- vators have now been reduced us casu&l labourers. The location of the project, interestingly, has made about 22 per cent of the working persons wholly un- employed. The Adivasis are now obliged to give up their professions and are left at the mercy of con- tractors for jobs. It was revealed that so far in the two projects, only a few persons could be provided jobs. These people are illiterate, non-pushing and do not fit. in the comPetitive world because of historical, economic and social reas aus, Hence, they are also not wanted because they do not possess the skills are' 'required in the projects. In the casual 'employment also, mostly outsiders are provided jobs and the local Adivasis stand as mute observers of their plight. Un- less, the development takes into ac:count the socio- ~onomic requirements 8f the displaced persons, new developments may prove inimical to their interests. Advasis are free children of forests. They feel the jUngles as their own estate ane). rightly, therefore, . they feel that they have a right to the use of the forest products. Forest produce like Tendu leaves, Choronji, Mahua, honey etc. _abound iIi the area. In a reccQt study, it was found thd there is some exploitation of the Adi- vasis who were involved in the conection of tendu leaves. This is a seasonal operation spreadir:g over two months. An adivasi family gets around Rs. 6 a day for collecting Tandu leaves. The leaf which is used for making bidi is sold at a: very high cost leav- ing a wide margin of profit to the cODtractorlprodGc_ Yojana, April 1-15, 1985 29 DPD/84-3 have not only to compete with <1therpeople for their living but have also lost their value possessions such as land, social harmony and peaceful environment. Two aspects must find attention while formulating any schemes for ,'Uly cOlnmunityltri1x:. 1. The natives h~'ve their Qwn culture and customs. New developmental efforts should therefore be con- sistent with the customs and culture of the people. 2. The development programmes that may be taken up for the area should not dislocate the life structure 9f the people and lead to harmful" changes in their pattern of living and occupations. The present study wa's conducted in two project Meas of Mirzapur, viz the Anpara Thermal Power Project set up by the V.P. State Electricity Board (UPSEB) and Singraul Thermal Power Project set up by the National Thermal Power Corporation (NTPC). These are big power projects with installed Capacities of 3130 MW and 2000 MW. respective}y. The land acquisition in these two projects was about 53000 hectares involving 18 villages affecting 1281 families : ~ Adivasis dilemma The land was acquired at the rate of Rs. 4500 per acre. However. a plot of land was to be provided to every oustee for construction of a houlie. In the matter of providing employment to the displaced per- sons the provision was thus in th~ V.P. SEB project those who had lost more than 50 percent of land were to be given priority in employment while in the case of the NTPC the priority 'was to be given to those who had lost more than one acre land and re- ceived compensation of less than Rs. 50,000. During the course of the study, it was found that , in the NTPCprojeGt, out of the 24 displaced adi- vasi households. 13 families had no land w~~le nine families had land b~lcw 1 ac..Te. Only 2 families had land holdings between 2 and 5 acres. It means that according to the projects rules about 90 per Cent ?f the displaced families in the NTPC project would not be benefited from the recruitment policy of the NTPC project. In the UPSEB project area also more or less the same story is repeated. Here, of ~he 22 Adivasi displaced famili~s,. 9 had no land while 6 had land le5s than 1 acre. Broadly this depicts the situation of poverty of adivasis. Due to the secluded life and near subsistence level conditions it is difficult to imagine that they will pull out. themselves from the quagmire of poverty. . One cause leads to another. Poverty, diffidence, fatalism and illiteracy go. side by side. Even today, the Adivasis are mostly illiterate. Among the displac- ed persons of the selected families in the two pro- jects it was found th:lt as many as 95 per cent were illitero.'te. In such a situation, compensation would not pro- duce the same socio-economic situation as existed . -- "
  • 12. eer. The same degree, 6£ ~xploit::llion occurs in the case of other minor forest prodllce also like Chironji, Anwala etc. These are purchased at a throwaway prices in the villages and sold at a high prices in the market. . Suggestion s One of the main cause of exploitation is that the illiteracy is so 'videspread among advisasis that a large' number of them cannot even C9unt the small .amount of money they get in exchange of their lab- our. This exposes them to furthe( expl{)itation and malpractices. In this smr.ll paper, however, it is- not possible to discuss all aspects 0: the tribal economy but we hope soree suggestions would be relevant. First, while formulating a project there should be adequate and clear cut provision for providing land to the displaced persons at suitable sites. Second, when weaker sections like Adivasis are displacf'd the project should have schemes to educat~ and upgrade the people so that they may also be. benefited from the schemes of the project. The project authorities should provide employment to all able bodied per- sons in their projects so tllat the displacej persons fe'e~that the project belong to them. It would not in- crease the cost much but the social benefits would be very high. Third, in the =a~~of minor forest produce. the processing plr.nts should be set up in the area itself so that employment opportunities may be generated .in the area. It will also reduce economic costs of the' produce. Bidi making may also be ~ncouraged are()ng adivasls as a cottage industry. 'There is ample scope for processing the local minor forest produce on the cottage industry basis. , Historical and religious places of these areas sllould be developed fndependently. Fifth, thet'e is also need for stndyin~ the socio- economic fabric of different tribes of Adivasis with respect to their traditional skills, soope. for resourCl'" based industries and the potentia1itie; for manpower development of the tribes. . . Lastly, the terrain of Mirzapur and adjoining areas call for specific researches for agricultural. and 'ani- mal husbandry operations. Higher LTC business THE LIFE INSURANCE CORPORATION of India Introduc;ed a new business of Rs. 3649.86 crore under 18,72,604 proposals in individual assurance business dunng April 1984 to January 1985. This marked an increase. of 20.3 in sum proposed over that of the cO'Iresponding period of last year. . ,The Southern Zone with an inttochiced business of . Rs. 1142.88 crore and 6,27,394 proposals emerged 12 , on top, followed by the Westeln Zone with a business of Rs. 818.25 Cfore and 4,12,511 proposals. The Eastern, Central and Northern Zones introduced a new business of Rs. 597.49 crore, 566.27 crore and Rs. 524.97 crore respectively. The numqer of propo- sals introduced by these Zones stood at 3,32,832, 2,73,567 and 2,26,300 respectively. . Amongst the Divisions of rhe Corporation, Bombay Division stood first with a sum proposed at Rs. 351.08 crore, followed by Calcutta and Delhi with sums pro- posed of Rs. 184.83 and Rs. 165.27 crore resp.:ctively. In respect of number of proposals, Bombay Divi- &ionstood first having introduced 1,52,870 proposals" followed by Calcutta and Bn.ngalore with 1,03,987 and 74,681 respectively. Hyderabad Division has registered the highest growth rate in sum proposed with an increase of 42.6 per cent over that of last year followed by Indore and Ahmedabad Divisions with percentage increase of 35:1 and 34.6 respectively. 0 / Action against bla~kmarketers in 1984 FOLLOWING SUSTAINED DRIVE against black marketing and hoarding by unscrupulous persons indulging in malpractices in trade of essential com- modities such as wheat, rice, sugar, edible oils, cook. . jog coal, contrO'lled cloth etc. during the year 1984, 8,677 persons were arrested, 4,8?4 persons prose cut- .ed and 1,072 perso~ . .convicted and punished by courts under the Essential Commodities' Act, 1955 which provides for the regulation of production and distribution of 67 essential commodities. According to the latest information available with the Union Department of Civil Supplies, which co- ordinates and monitors action taken by tIle States under this Act, over 2,58,230 raids were made in tlle premises of alleged unscrupulous traders, and essen- tial commodities worth Rs. 972.46 Jakhseized during the year 1984. The Essential Commodities (Special Provisions) Act, 1981 bas. plugged the loopholes in the law and made the penal provisions of the Essential Commodi- ties Act more stringc:.lt to provide, ~mong other things, for summary trials for all offences under the Act, ~t up Special Courts for this purpose and made all offences non-bailable. • .. Besides, in order to prevent unethidll trade prac": tices like hoarding, blackmarketing, profiteering etc. Prevention of Blackmarketing 'and Maintenance of Supplies of Essential Commodities Ordinance was pro- mulgated in' October, 1979 which was later on con- verted inte an Act of Parliament in Fcbr;uary 1980. Since the enforcement of this Act, 774 'persons were ordered to be detained by various State Governments till December 31, 1984. Yajana, April 1-15, 1985
  • 13. , " ., • Floods and water managem~nt Sreelekha Basu More thim a tenth of our total area is prone to floods. To reduce the havoc caused by flood, water management has to be improved with the help of a sound data base, efficient data communication system etc. The author en:zphasises that we, cannot afford to stay behind in this crucial area w)zichis the key to accelerated growth and self-sufficiency. IN INDIA, WE HA VE to live with flood and ' drought. More than a tenth of our total area is prone to floods. The Central Government has been spend- ing Rs. 1000 crores on' flood relief. The average an- nual quantifiable monetary losses suffered due to floods in India, have been estimated at Rs. 1200 crores. The strategies needed to meet 'the deficiencieS! (in quantum and time) or to tackle the excess .of water availability during monsoon in different -regions, are different. But for ..•.both, it is necessary to assess the water resources available (expectedl anticipat~d) and water balance' studies carried out for effective water management in the region. Beneficial uses of our water and soil resources are the most important aspects of co'mprehensiveriver- basin-planning, which leads to assessment of water resources potential in the basin and creation of faci- lities for flood water storage, for irrigation reservoirs I channels, for generation of electricity, for meeting- the scarcity of wat~r in drought prone area.s! districts (by exploration in the area and by importing from sur- plus basins), etc. These would 'necessitate services of water m;magement exI1erts, for a-cpordinated-approacb in sortibg out problems relating to needs for flood pre- .Views expessed are author's. Yojana, April 1-15, 1985 vention, water conservation, drainage, irrigation de- mand, non-agricultural water requirement.. damages due to erosion, sedimentation, etc. for ' the deve- lopment, ~tilisation and disposal of water in the most economically feas~ble manner. It has been suggested by experts that a national water grid. is the only answer to this and the .surplus water of different basins should be used to augment supplies to the deficit areas. This would need proper planning, funds, organisation and a base information ,system (DBIS). - Irrigation requirements. India has the largest irrigation system in the world and the second largest irrigated land, next only to China. Irrigated area prior to independence covered o~~ 22 milli<ilnha, . compared to the present 60 million ha. Our foodgralDS: production has gone up by about three times since independence. Cropping pattern has dive~sified and area under cash crops has ' recorded, s.teep lDcre~s~ at the cost of foodgrains. Av~ra~e .YIeld for lITIgated wheat and ,rice, (our mam IrrIgated food -crops), are still very conserva- tive. - !fthe total water resources available in our coun- ~ry.is properly managed, we can irrigate mpst'of bur Irngable 'land and also meet other water demands. Tbe total surface water resources in India has been ~stimated at about 1500 MHFT, of which only aJittle ~ver a third can be beneficially utilised, for consump- tive use. Presently, storage facilities of only about a tenth of our surface water resources are available within the country. Limited storage facilities for most o.four riv~r-fl()ws, and particularly in two of our rnajar • n:ver baslDs (Ganga and Brahmaputra), inter-State dIsputes. on water-sharingldam-heights e'tc. utter lack of d!scipline in th~ effective implementation ,of major, medtum .and n;ultipurpose (irrigation) projects, have resulted lD avolda:lle increase in the total cost of our 13 ,
  • 14. • irrigation projects by three to five times. These have also deprived us of an enormous quantity of agricul- tural products every year, which could have been achieved if at least some of our internal disputes were sorted out in time and impor1t.nt projects cOm- pleted within reasonable time limits. National water grid The concept of a "National Water Grid", envisag- ing Ganga-Cauvery link was put fonvard by Dr. K. L. Rao in the early Seventies. It was then decided that drought-prone area~ needing water on a long term basis should be idt:ntified along with the water- surplus areas, and a scheme for transfer of water to drought areas might be evolved. Later, Dr. Rao sug- gested that surplus waters of Ganga and Brahmaputra must be used to augment supplies to deficit basins, so that semi-arid zones could b~ converted into food- yielding land, by providing irrigation water. He also recommended flood water detention in reservoirs, particularly in the river basim of U.P. ancl Orissa, as also increased drainage facilities in West Bengal to save crops from recurring floods. r Providing irrigation water to searcit" areas in the Ganga basin exploitation of the Narrrmda basin in M. P. and Gujarat, providing storage facilities on Sarda and Ghagra-Rapti-Gandak to save eastern' U. P. from floods and for conserving water,. water con- servation projects such as Tehri, Rajghat, Kisl:!an, etc. were a few of his plans to meet the growing de- mand of cereals and cash crops in ID-dla. _ Several other. compr.::hcnsive water resource deve- lopment projects had sinc~ been presented. The Gar- land and Himalayan Canal Project of Shri Dastur and several variations of that Scheme had. been put forward, by other Expert Groups. The gc;neral con- census had been that a national plan for the control of rivers for irrigation and flood control should be evolved, for the beneficial uses of our water resources. The erstwhile Ministry of Energy and Irrigati9n (Deptt. of Irrigation), followed it up and prepared a comprehensive study on the availability of water and feasibility of creating enough storage. A Na- tional Pers'pectivc df Conservation of Water and In~ terlinking Various River Systems was chalked out. It was claimed that the National Plan (as proposed), was die most feasible and would confer the largest benefits at most economic costs, as compared . to , other _alternatives su~gested by expert groups. Toe "National Plan" had aimed at mu1til?urpose and multi-objective d~vclopment of our water re- sources, keeping in vkw the benefits,of irrigation, land reclamation, flood control, hydro-power gen~ration, navigation, pollution control, fisheries developm~nt, etc. Domestic and industrial uses-of water as wen as use of water for irrigation were given high priority. Inter-b'asill and int~r-stat.) transfer of wateI;.s were envisaged, k~epillg in view t1J~ needs of tn.e basins) States. In drought prone areas, water wns as~uff.d at least for one crop, and while providing irrigtttion faci- lilies to water-sc::trci~yar(.as maximum production per Uilit of water was aimed at while fixing the w'"sterde- .m~nd~ per h~. FlooJ control was acct:pted ~s ~ major objective. Soil.conservation, catchment protection and afforestation were envisaged as an iIitegral part of water development in upper catchments. Subject to making necessary provi';ions for mini- mum needs of irrigation (consistent with efficient water utilisation), where conflict between h••.dro-, power generation and imgal ion would arise: the' Plan had also aimed at maxh1UlU pow~r generation. The National Perspective mvisaged orily additional water devclo~ment and ase, beyond vhat was already ffusi- ble within tbe ul)cLilal framewo{ of all existing agree- ments betwcen ,.nj among the States. as also of the existing treaties with the neighbouring countries. The main aim was to increase tlle benefits to one and all beyond th;:><;eprovid.:d by the existing agree- ments or treaties. Detailed outlines of the develop- ment of peninsular rivers were also prepared" suggest- ing ways and means of diversion of west-flowing rivers in Kerala, Maharashtra, Gujarat and Tamil Nadu, diversion of surplus water of Mahanadi and Godavari .to water1short rivers (i.e. Krishna, Pennar aDd Cau- very) .and for irrigating coastal areas in Orissa, inter- linking of a few other west-flowing river ~ nQrth' of Bombay and south of Tapi (viz Ulhas, Vaitami, Puma, Ambia, Auranga, Dan;tanganga an.d 9th~rs) and interlinking of Ken -;yith Chambal (tributaries of Yamuna). ~ .Technical committee In 1976, the Government of India had set up a Te- chnical Committee to examine the feasibility of east- ward diversion of the west flowing rivers .of Kerala -and Karnataka, to Tamil Nadu and drought-prone areas of Karnataka. Assessment of surplus wat~r avai- lability was carried out in the four souther,.n most river basins of Kerala (Vamanapuram, bcpencoil, Kallada and Karamana), and in four river basins in Karanataka (Netravathy, Varahi, Mahadayi and Barapole). Ground water potentia~ for these. basins were also assessed, along with water available from regeneration flow. Simultaneous studi~s were c.QnQ!.Ict- ed to estimate the purrent water utilisation and new , uses planned, together with anticipated deman4. in tbe foreseable future, both for consumptive and non- consumptive uses. .Based on thes,c investigations, recommendations were made by the Technical Committc~ about the sur- plus water available for diversion from Vamamipuram, Achencoil and Kallada basins of Kerala "and from Netravathy, Barapole and Aghanasbi~i basigs .qf Ka;- nataka (the last one as indicated by Karnata~). Tbe Committee made various recommcndati0l1S 'on the diversion of surplus water, and ~nstructcd TamiJ Nadu and Kamataka to frame suitao1e proposals for harnes~ sing the surplus available for irrigating areas in their drought prone districts, to the cast of the Western Ydjana, April 1" 1 198~ ...
  • 15. .. . Ghats. For Mabadayi basin, the Committee suggested installation of two units of hydel power pl!int, of 70 MW each, and irrigation of 500 ha in Mabadayi basin and further divert the surplus water to Malaprabha basin to irrigate drought prone areas in Be!ga:~. Thus for a few west tlowing rivers" the Qommitt~e recommended diversion of a limited quantity of water to the east, as on account of the very short distance traversed by these rivers (from origin to the coast), and the nature of the terrain, potential avai)al1e weJe not being fully Ultilised. For other rivers, the Com- mittee suggested detailed studies to be conducted on a tin:e bound schedule by the concerned States. It was al~ recommended that Tamil Nndu should .initiate dialogue with Kerala on a biIat~nl basis for,di~ersion of Kerala's surplus water to Tamil Nadu. ,T~s was initiated and some progress has already been achei- eved in 'this direction. NWDA National Water Development Agency (NWDA) was set up in. Jully, 1982 to give shape to' the outline of National.Perspective for Water Resources Develop- ment. The NWDA follows up the work of implement- ing optimal utilisation of water resources in the Pen- insular Rivers, through constru:::tion of con- servation storage reservoirS of optimal capacity and transfer of water by a network of interlinks from surplus areas to water-short and drought-prone areas of south India. ! The scheme, when implemented is expected to create about 15 million ha of additional irrigation potential in the Peninsula over and above the present assessment of 113 million ha in the coun- try, by increased utilisation of surface and ground water resources. During the last two 'and half years,' the NWDA prepared yield studies at few sites in Mahanadi and Godavari b~sins, llndertook studies on assessment of, surface and ground water potential in varidus sub basins,' collected detailed hydro, hydro- met, landuse and soil ,statistics from Mahanadi, Godavari, Krishna, Cauvery, Pennar, Vaigai, South- ern tributaries of Yamuna and from west-flowing of rivers of Kerala, Mabarashtra, Gujarat and Kar- nataka. Water resources, utHisatio;l and water balance stu": dies. have been conducted in the drought-prone areas of Telengana, Madhya-Maharashtra and Marathawada region, and in Rayalseema area and on a few sub": basins of Godavari. Surveys of west-flowing rivers, south of Tapi and nQrth of Bombay, as also of a few tributaries of Yamuna and Ma:hanadi have 'also been conducted. The main obiectivesare to locate po!>si- ble reservoir sites and inter-connecting links fa,r augmentation of water conservation, with special re-' ference to flood waters "and to transfer the surplus to water-short and drought areas. Detailed water m.an-. agement studies relating to quantum of watcr avail-. able in our Peninsular River Systems, which can be transferred to other basinsIStat,is, (after meeting rea": sonable needs of ~he concerned basinslStates), in the Yoiana. Apri11-15, 1985 Z9 DPDj84-4 foreseeable future, have been conducted by the NWDA. .Flood study Flood plain zoning in various flood prone sites- of different river basins is very important for water. re- sources studies. Indentification of areas expo~ to flooding and determination of inundated land through data collected from various sources, including those from remoty sensing' techniques along with determi- nation of areas under various land uses, to understand relMion between precipitation and the resultant run- off, are integral parts of such studies. Flood prone areas undergo changes continuQusly, with every flood,' and. to understand these processes it is essential to monitor the flood plains and record the changes over time. Aerial photographs are the best tools for bring- ing out various aspects of flooding and for such moni": toring work. Flood menace can he reduced to a great extent 'and the surplus water diverted for use during dry -season (or to water-scarcity areas), if such moni- toring with the help .of a network of aerial- photo~ graphsjdigital-data and data~ollected through con- ventional means are introduced on a routine basis. I In any flood study it is essential to know the volume of flood that has to be reguhted and diverted for storage, to determine courses of flood control. Area information data obtained thro'lgh landsat along with water depth data collected on ground will furnish the volume information, with re'asonable degree of accu- racy. Remedial measures for water-logging of flood waters. in depression areas can be initiated, mainly through betUer maintenance of existing drain'age s;yS-: terns and constructing additional link drains, culverts, etc. and also by impou~ding the excess water and diverting it to water-short areas for beneficial use. I Some experimental studies were initiated by the Deptt. of Science and Technology, under their Scheme on Natural Resources Data Management- System (NRDMS), in 1981, to make an assessment of the magnitude and reliability of our natural resources data and for a timely access of an integrated 'and evaluated resource data base to our planners and de": cision m'akers. It also aimed to determine the rela..: tionship between ~ound features and their response to remote sensing besides .selecton of effective sample sets for classification, for remote sensing data. Vari-' ous pilot studies were undertaken. One such study was' carried out in an intensive test area between R'apti and Gandak in the eastern U. P. to assess the feasj..' bility of the application of remote sensed data b'ases. and others to planning problems like flood plain zon~ inl!, land-use planning. surface and ground wa~ei development monitoring of water 10gginQand salinity nroblems, air and water pollutio!l problems. estima-' tion of vegetal .covers, etc. along with evolving me- thodologies' for handling multiple data bases. 1 The studY on flood plain zoning- in the b'asins of Gha{ITaand Gandak was undertaken bv the Centre of Studies in Resource Engineering (CSRE) of the lIT, 15 •
  • 16. • Storapce reservoirs are the. best solution" for flood water c(lnservation. But for. their high cost, reservoirs are usu2'lly not planned for :flood control only. Most of our reservoir projects, do not lend themselves to earmarbd flood storage, and only some flood cushion. ing is aUowed. No provisions are usually made fOf antiwater10gging and drainage facilities in such pro. jects Only DVC, Baigul apd few other resrvoirs had made snme exclusiVe provffiion for flood control stor. age Rt"servoirs at Govind Sagar; Hirakud, RengalL Ukal, ~fanchenbela, etc. are cases where moderation has been achieved by suitablenreans; , " Usually flood oontrol forms a part of our multi. purpos~ projects, where it is only one. of the benefi. ciaries, However, multiple use of a reservoir implies wme compromise between the. interests of various (.Omponents, which are occassionally at variance with on~ arother. Multiple use of a reservoir inevitably re- sults i?l less ,benefits for any single use, but it reo alises maximum benefit for the project as a whole. Any moderated flood outflow must take into account d1e saYetyof the downstream area as well. Reservoirs by themselves are seldom a complete, .measure of floOd control. Inspite of their high costs and long gestation periods, if~reservoirs are taken up as p~ckage programmes, with other direct benefits along with flood 'control work •.•they would be eeono- mka1Jv viable and also ensure oPtimal utilisation of water ~hich otherwise goes w'aste.-Acquisition of land for storage reservoirs is rather difficult. but the stor. age of :flood waters is also very important. Possible A mechanism of communication of information from the.source agencies in the field to the authorities, has also to be established. For communication, either a radio network or a satellite network may be adopt- ed. Occassionally, a combinat1on of UHFlVHF and Post and Telegraph Leased network is preferred. How- ever, the choice sho:~ld depend on the nature of com- munication .required by the water management ex- perts, and the topology of the region. Transfer of hydro-met data from field to the data cqntrol offic~, (usually locatdi at a major city), is done by surface mail and through the telephone!telegraph systein. BambIX)'. An' eleven channel Modular Multispectral These are n0t suitahle for effective management of Scanner (MMS) and an aerial camera were used for. water resourr.es and some sophisticate~ transmission collection of relevant. data and "ground'truths" were' network shol'ld be set up by the authorities handling collected in synchronisation, to correlate actual in- flood contro! J;lrojects. formation on ground with its response to remote • sensing by MMS and MSS. NCF Ground truths were also collected before and after The Nati(mal Commission of Floods (NCF) had the flight to study the drainage. systenis aud to ob:. sugge~ted 0.980) that me'as~res, primarilyI for c~m- ~erve hydrological behaviour of the various streams servatlOn (H:e small, medmm and large .reservoIrs, - m the. basins of Rapti and Ghagra. Computeri~d natural detf'lltion basins, ground water storage, etc.),- analysIs of the data were taken up and valuable in. which help m moderating run-otIs depending on their terpretations drawn. Other pilot studies were also un- capacity, s10uld be the first to be considered, for dertaken (in the coastal and offshore areas in Goa and. :flood mana,?~ment in any basin. It had also been said Visa~hapatnam, in some semi-arid regions of n. P that to the eKtent feasible (technically and economi. and m a few backward and tribal areas ill Purulia. cally), na1ur~l aetention basins and reservoirs must Koraput, etc.) which have completed major portiol1' be considererl. as an important component in any of !heir field surveys I investigations and are preparing, package of flood management, as it would ensure' theIr reports. The findings would be of imm~nse help maximum utilisation of the water. However, it has for developing networks of natural resources data been pointed, out that the intensity and' duration 'of needed for planning and monitoring of w~t7:rresource the rain a~d the runoff, and the resulting volume 9f projects and other schemes. floods wonlrl play the most important part in deeid: , , ing upon jf the , n'atural detention basins would serve Water management' the purpol1e of flood mOQeration, or special measures ,Floods mainly result from intense and heavy rain.. like emba''lkments, emergency f!oodways, river diver. fall du~g m<?nsoon,cloud-bursts, cyclones (m~inly in sions and' inter-basin transfers would have to be ad. the coastal areas), from landslides blocking stream opted. UI"regulated :floodwater goes' waste and causes- flows, and inadequate drainage systems. In ninety per .!mvoc at d miseries; , cent cases, :floodsoccur when there is heavy precipita. Reservoir tion and the river overspills its banks m; the linking channels cannot c6pe with the water flows, or due to some obstruction on the river bed' (siltation, laric;lslides, etc.). Drainage 'conSfstion, resulting from heavy rains of some blockages, 'also cause devastating flood~. Erosion of river banks, defcrestation, sedimentation. water 10'gging, high seatides, inadequate waterways at rail and road crossings, encrolM:hments in flood plains etc. are some other causes of floods in India. The task of water m~~gemeni; in flood pro~e areas, , basins needs in-depth investigations, data coliection and validation, data ,analysis with the help of analyti- cal tools to facilitate quantitative modelling through use of data stored in the Information System. with a view to arriving at some optimal solution, which would prescribe some form of diversion and storage (by vario~s means). 'fhis would be adopted to even oui: the flow and also tet conserve Our precious water re- 50urce for use in water-short regions and 'durir,g dry Seasons. . ..• 16 Yetjana, April 1-15, 1985
  • 17. storage sites, specially around water scarcity areas are necessary to harness our water resources for beneficial use. f. sound data base and an efficient communica- tion system would be necessary for effective and time efficient handling of our water resource planning pro- cess and for the follow-up scheduling, and monitor- ing activities. If the NRDMS project"pn multiple data base approach to micro-level planning is successfully implemented, it would go a long way to sort dut our data gapsldeficiencies, as also in evolving 'methodolo- gies for handling such data bases.' , In this connection, a mention should be made of the CWCjDanish-Hydraulic-Inst (DHI) cooperation in developing, real time flood forecasting model (NAM), for accounting the runoff from rainfal). by computer simulation of hydrometeorological events, and rout- ing the -runoff by hydraulic model. DVC riv('T system has been taken up for field testing of the model. .Another real time forecasting system has been install~ ed in the Yamuna catchment area under a UNDP Scheme, with the help of data on rainfall, tempera- tureand river stage. data. A master teleprocessor is programmed to coo["dinat~ the activities of remote stations. SSAR model used by the US Army Engineer and HEC- IF model developed by Hydrologic El1gi- neering Centre (California) are being studied for their calibration to suit the mini-computer (HP- 1000), installed at Delhi for this work. With the imp- . lementation of computerised telemetry system, new techniques in remote sensing and automatic data ac- quisition procedures, river forecasting services would improve considerably and wo'uld provide a tool for flood routing and rainfall runoff predictions. Ground water studies " A number ~ ground water studies undertaken by the United Nations, the SIDA and the CGWB in our various river basins hav'e made valuable recommenda- tions for wateJ resources planning, where artifichll recharge of acquifers with flood waters has been look- ed into. !thas been observed that as a result of floods and water-logging from seepage of e,xisting irrigation systems, many areas in our river basins become water-logged,. permanently or seasonally. The reme- dial measures recommended include pump age and use of ground water in these are'as,lining of canals, better maintenance of existing draiqs and construction of link channels, link drains and culverts. The UN grQund water study in the Ghaggar river basin had observed that water-lOgging in the Suratgarh-Baropal depression area could be controlled 'by reducing the Ghaggqr flood water inflow into the diversion canal or by using the impounded water ~or irrigation. The Study suggested diversion of the excess flood water to the sandy tracts in west Rajasthan and used there for artificial recharge' of the phreatk acquifers. :Re- covery of diverted water, however, could be' started only within 5 to 10 years after the recharge scheme is taken up, TIS this time period was necessary to allow Yojana, April 1-15, 1985 a significant fresh water layer to build up over the salinated acquifers. The Study also sug~sted high efficiency irrigation methods (sprinkler and drip), in combination with lining of canals in certain 'areas for higher crop productivity with small quantity of water. 0 (to be continued) JI ..Home Computers for ~sians in U ,K. . . A PROJECT TO PROVIDE multi-language ver. sions of home computers i.s being sponsored by Brad- ford Metropolitan Council in the north of England to serve the city's 62,000-strong Asian Community. The project, aims to provide computer programmes and keyboards adapted to Hindi, Urdu, Punjabi, Bengali and Gujarat! users. The scheme is being run by Mr. Harnak Singh, One of the Council's computer Programmers, Faiz Nasir, a linguist and Urdu specialist. The council is fund- ing and co-ordinating the Project, but the actual work of producing the programmes has been delegated to information technology centres in Bradford and nearby Halifax, and, a computer firm in Lqndon . Work has alreidy begun, On the Urdu and Punjabi word processors and a Urdu version of the Basic computer language. •Mr. Harnak Singh said: "Urdu has not been typeset before, and we had to find out wh&t was acceptable to the consumers in Bradford, we intend to' produce a word processing package, with basic standard faci- lities, for schools as well as for the home." The programmes will be geared to the standard schools computer, the BBC Micro, so that children in the city's 200 schools can be given the opportunity to learn basic computer skills.. , .0' Acorn Computers of Cambridge, Eastern England, say that work is underway in India to provide local language programmes for the BBC Acorn computers which are expected tobe manufactured shortly under licep.ce in India and supplied to a number of schools. o Mechanical ~cart helps farmers MECHANICAL MULTI-PURPOSE cart called "Krishimitra" devised by the Director of Research Foundation in the Department of Science and Tech- nology, Government of India" is a blessing for the Indian f,,"rmers; This mechanical cart can diO' Dve hectar~ of land in a day and it can be used in all .other farm activities also. The price of this cart is approxima'te1y Rs. 18,000. 0 17 •
  • 18. FJghth Finance Commission Report Under the award of the Eighth Finance Commission for 1984-89, the States will. receive Rs. 38,SOO crores from the :Central divisible pool of rr;venueby way of taxes, duties and grants-in-aid to help remove im- balances among them. This is Rs. 17,500 crores more than the amount transferred to the States under the Seventh Finance Com- mission during 1979-84. The Commission has done a fairly good job of its task which will ultimately help remove the imbalances among the States, sqys the author. . THE EIGHTH FINANCE COltIMISSION has made an earnest effort to help deficit States with in- creased share from the Union excise duties. The award of the Commission which has been accepted by the Government will benefit the States to the extent of Rs. 38,500 crores by way of taxes, duties and grants in aid during 1984-89. This is Rs. 17,500 crores more than the amount transterr- ed to States under the Se,enth Finance Commission award for 1979-84 Modes of devoluti.on , The Government while announcing its .decision On the recommendation of the Commission in Parlia- ment has made it clear that it will co'ntinue with the interim report recommendations for 1984-85 financial year but will accept the final recommendations' for four years from 1985. .The fiscal transfer .scheme accepted by the Gov- ernment confers on twelve States surplus of over Rs. 26,000 crores. The States' share on Union ex- 18 Devolution of more funds to. States H. Seetbarama Rao cise duties is being enhanced to 45 per cent from- 40 per cent while the sqa~~ in income-tax h~ been retained at 85 per cep.t. FIVe per .cent o! .exclse has been earmarked for deficit States In addItiOn to the five per cent annual growth in the revenue gap' grants of these States. The decision pro1des for substantial debt relief .including Write-off. Under the revised scheme, grants worth Rs. 808 crores will be given to 17 States for upgradation of standards of administra- tion and to meet special problems. The Centre will provide half of the annual margin money to States for financing of relief expenditure. ,The Centre's contribution to margin money will be RS'.A.81.50 crores. The annual comp-ensatory grant in lieu of tax on railway passenger..fares has been enhanced from RS.~3 crores to Rs. 95 crores. The recommendations of the Commission, as ex- pected, have drawn mixed reaction from States. While most of the States have welcomed the recom- mendations, some of them felt' that the Commission has not been fair to their demands. But the fact remains that the Commission has tried to bridge the gap between the chronically defk:':, States 3nd tnt; fairly better (',ff States. Most of the recommendations suggested by the Commission have been accepted by th~ Government except a few that have to be still considered. They included suggestions to merge surcharge with basic income tax from 1985-86, setting up an expert committee for~the allocation of cost collection, bet- ween incometax and corporation tax and tQ impose penalties and interest on 3lTearS in the divisible pool of incometax. ' . . Benefit to States :'Ten States will benefit through the Con:mission's' recommendations that grants in aid to deficit States after devolution should escalate at the rate of five per cent per annum. These deficit States are Assam, Yajana, April 1-15, 1985
  • 19. Himachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Nagaland, Orissa, Sikkim, Tripura and West Bengal. Rajasthan has been assessed to be in deficit for 1984-85 and 1985-86,..th~reafter going into surplus. On the other hand, six States will be in surplus before devobtl'Jn. 'Ihey arc Gujarat. Haryana, Karnataka, Maharashtra, Punjab and Tamil Nadu. The remaining five States-Andhra Pradesh, Bihar, Kerala, Madhya Pradesh and Uttar Pradesh-will come into surplus after devolution, The grants contemplated for the deficit States are for them to cover their non-plan revenue gaps such as for the payment pf Additional DearnefsS Allowance instalments to bring the DA of State Government employees on par with that of the Central Goernment employees. Taking into account the additional DA liability and the annual escalation the deficit States will be- come eligible for a grant of Rs. 1,555.83 crores during 1985-89 as a result of the recommendations. The Cominission also recommended grants for the upgradation of standards in administration in nine areas. They are police, education, jail, tribal ad~ ministration, health, judicial administrCition, district and revenue administration, training and treasury and accounts administration; Grants aggregating Rs. 914.55 crores for this purpose will go to 16 States, barring' those in surplus. before devolution. Of this amount Rs. 808.08 crores will be distribut- ed in the period from 1985 to 1989. Debt relief The Commission recommended debt relief to the States varying from 20 per cent to 85. per cent of the non-plan capital gap as assessed by it. •The quantum of money as debt relief recommended - is Rl;. 2,285.39 crores through the consolidation arid res~heduling of outstanding loans and by way of WrIte off. This debt relief is in addition to a relief of Rs. 117.08 crores involved in the non-paymeBt of small savings loans in 1984-85 recommended in the interiin report and reit~raled once again. The Finance Commission award will result in uniform formula for distribution of States' share of excise diuties and income-tax. The Centre will continue to contribute half of the annual margin money to States for financing of relief expenditure. Linking devolution to deficits The Commission has recommended that five per cent of the net proceeds of Union duties of excise should be set aside and distributed. to those States which hac deficit after taking into account their shares from the devolution of taxes and duties as p~oposed .by. it. This iJ;ltroduces a new principle of duectly Imkmg devolutIon to deficits rather than de~ling with them only through grants' in aid under artIcle 275 of the Constitution. While recognising Yojana, April 1-15, 1985 that there could be different views on the merits of this principle, the government has decided to acceIJ't this recommendation without creating a precedent. , The Commission has- provided a five per cent annual growth in the deficit grants purportedly to make them buoyant. The Finance Commission found theexis!ing financing arran,gements of relief eXIJ'enditureto b.e basically sound. At present, 85 per cent of incdme-tax except the . portion representing the proceeds attributable to Union Territories and the Union e)D,oluments,is dis- t,ributed among the States. TIle share of the States is retained at tbe same ievel. The inter se distri- bution among the States is partially altered by dis- tribution of 90 per cent of the States' share on a common formula for income-tax and excise duties. Ten per cent of the States'. share 'is distributed as at present on the basis of contribution measured by income-tax assessments attributable to a State. Excise duty on electricity was abolished from October 1, 1984. - The Commission has recom- mended that the share of each State should be equal to collection in or attributed to State. ., Additional excise dilties The entire net proceeds of the additional excise duties on sugar, textiles and tobacco excluding the portion attributable to Union Territories, accrue to the States. The Commission has recommended that the additional excise duties be distributed among States on the basis of equal weightage to State do- mestic product and its population. The Commission estimated the gross non-plan capital gap at Rs. 6806.19 crares. It has not re- commended any relief for the repayment liability of Rs. 1992.90 crores arising during 1984-89 -out of ~he me,rlium-term overdraft clearance loans aggregat- mg to'Rs. 2242.12 crores. The -Commission has left them outside the scheme of debt relief. It has recommended that during 1985-89, the small savings loans should be repaid b:f .the States as per the prescribed terms and con- d1tIonS. . Excluding small sa,,:jngs loans and over- draf~ loans, the Commission has estimated the net non-plan capital gap of the States at Rs. 3852.64 crores. In making its rec')mmendations., the Commission was directed to have regard to the consideration such as the resources of the Central Government and the de:nands there~n on accoilnt of civil administration, derence and border security debt servinO"and other ~ommitted liabilities. The' Commission'bhad made Its recom.mendations within the parameters and had done a fatrly good j?b ()f its task which will ultimately help to remove the Imbalances among the States in the country. 0 (Courtesy : All India Radio) 19 •
  • 20. TOWARDS SOCIAL REVOLUTION a Case lor Economic Democracy ~ VASANT SATHE A Serialisation 15 The Alternative of the policies and programmes announced by thejr government. It would be the duty of the representative or repre~entatives of the financing institution to ensure the proper utilisation of the 'tinances advanced or invested. The remaining o'ne-third would be representatives of the entreprenem, i.e., the conceiver of the industry and also its organiser. The entire working force would be organised on a pattern in which there are managing committees from the top level to t~e shoe-floor level and persons are assigned tasks for which they are accountable. Although the basic structure of salaries and wages would be fixed, other benefits, which would be substan- tial, would be linked entirely to prOductivity. Sin~e the entire labour force would know that there is no qluestion of anyone manipulating the real surplus or ch~ating in any other manner and all its members would have a full stake, they would evince ,interest and confidence in the succes~ful working of a plant or industry on which' their livelihOod as well as better- ment would depend. The market mechanism of demand and supply and the resultbJg pricing system form one of the greatest In our model, there would be no employer-employee inventions of mankind. A just and equitable economic relationship because everyone who puts. in la,bour organisation and policY should take advantage of it. would be a shareholding partner in the organised But what tends to mak~ the market and pricing system industrial or trading sector .. The shareholders would, unjust and greatly iniquitous are two major deviations annually elect their representatives' from among them- from ideal and democratic economic norn:s. One devia- selves to the board of management who would re- tion; on the demand si<re,is the serious' maldistributio'll present the three basic categories, l}amely, managerial, of income and the lack of purchasing power on the technical and non-technical. part of millions of people, who, therefore; cannot, express their real needs in terms 'Of market demand and cannot caus~ or provoke the supply mechanism to produce and supply those real needs. The other serious deviation, on the s'upply side, whic.h distorts the market mechanism and nearly makes a total nonsenSe of it, is the emergence of monopoly (a single supplier of a particular ,item) or oligopoly (or few market-dominant suppliers ot that item). Such mono- polistic or oligopo1istic suppliers can and do lJo!cl,the society to ransO'm by restricting the supplies, charging • THE BROAD PICTURE of the national'economic scene that would emerge from our model in the pro- ductive arid distributive fields would be of one homogeneo'us national sector. The artificial division of the entire national economy into the public sector and the private sector would be abolished. The O'nlytwo natuLal sectors would be the organised sector and the self-employed sector. . The number of representatives of labour .would be o'nc-third of the total number of the memhers on the board of management. The other one-third would be the nominees of the finand'al institution, the party in power at the National level and the party in power at the State level. in equal proportion. Thus, thl': representatives 'of the people wou1cl be involved in every organised industry to participate in and to overs'ee the implementation In the economic model proposed heie, the presump- tio'n is that the entire labour~in the form of (1) entrepreneurship and organising capability, (2) an intelligent studi,ed contribution by the scientific, engineering and technological experts, (3) managerial skills developed by some members of society and (4) technical, clerical and unskilled potential of the other members-would work cohesively as equal part- ners and, in the very process of production, the surplus generated would be paid eq'uitably, though not equally, to each category. The chief criteria would be to meet the minimum requirements of a decent living for the lowest category and then to determine w.hat better comforts anc~, to s'ome extent, even luxuries, can be offered to those whose labour is more skillr-d or re- quires higher qualificatio'ns On their part. • 20 Yojana, April 1-15, 1985
  • 21. The. author has been in the trade union movement for mo;e than 30 years and has throughout believed that the workers can play a positive and responsible role in management, because they have the real .and the highest stake in the success. of the industry to • which they belong. A well-known 'offset printing press in the priv,ate sector can be cited as an example. This U'Ilitwas closed down for mO'rethan 15 months due to a quarrel between the partners'. When it was taken over under the Industries (Development and Regula- tion) Act, 1951, the workers not only accepted a cut in their wages in the form of reduced dearness allowance, but alsC1cooperated with the management in bringing up the unit to the trading profit. level within a period of less than six months. and effective representation in the board of manage- ment at the highest level has not been accepted, even mentally, by the authorities concerned .• In India, although we talk of the objective of haviiH; a socialistic pattern through planning and although this was spelt out in the first 20-Point Programme. in the form of allowing participation of workers in the management, in effect, throughout the entire process of production there has been hardly any effort to give The author's next experience was with a major real and effective participation to the wcrrkers in public sector undertaking, the Durgapur Fertiliser management. Some half-hearted efforts have been made Plant. Again, this plant had been closed down in 1982 in the nationil1ised banking sector in the form of, due to a labdur-management dispute lastin!! over eight nominated members' from amongst employees on the, months, causing a monthly production loss wO'rth board Jt management, but the concept that the workers imillions of rupees. This unit had two maior unions, should be treated as partners and should have equal one belonging td the Marxist school of thought and , With these two major corrections for oligopoly and maldistribution of income,' the just market forces will come into their own and then the markets can be better trusted to settle prices and costs at equitable and fair levels-with demands more corrctly represen- ting genuine needs and 'Supplies more responsive to demands, rather than being restrictive. With the tripartite arrangement in the n:arketing and productive fields, it should be easily possible to intrdduce any further corrections or improvements in the price-and- cost structure in order that essential commodities are within the means' and purchasing power of the lower and the middle strata of workers and income-earners, prices totally out of line with costs and reasonable profits, colluding with # each other to allocate markets to each other and use other foul means of reducing consumer welfare and increasing their own. Whenever this topic has been discussed, one always Hence, the maldistribution of income and the exis- finds a reservation at the back 0'£ the minds of those tence of monoPQly-oligopoly are the chief enemies of .in authority. They somehow believe that the managerial an equitable market mechailism. But in the economic class is essentially a, superior variety consisting of democratic system that is being advocated here, both people who are born and bred in higher culture, edu- these evils can be taken care of. As the representative cated mostly in public schools and preferably have of the Government, financial institutions, workers as had their higher education abrO'ad. It is felt that it is well as entrepreneurs will sit on the board of directors this class' which must essentially be at the highest and the various committees, it will not be possible for echelo~s of management in the public sector. In the any vested interest to take decisions to restrict prO'duc- private sector the same feeling prevails among the in- tion, step up prices unfairly, enter into black money dustrial class. Unfortunately, this seems to influence transactions, purchase inputs as more than market pri- even the politicians in power. Everyone seems to feel ces from friends, relatives and other colluding parties, that the wO'rking class' is somehow inferior, both in sell the product to such colluding interests at more than' quality and understanding, and, therefore, does not warranted prices (thus accumulating black earnings), deserve to have a place in the board of management, underinvoice or overinvoice exports and impO'fts and It is felt that if the ,workers are given such a position, indulge in other such malpractices. In particular, the instead of .being helpful, they would be a hindrance to key oligopolistic. practices restricting production and decision-making, particularly when decisions have to charging unduly high prices. will be ruled out. One be taken on buying equipment or setting up projects major imperfection of the market will disappear. involving millions of rupees.. . Secondly, it will not be possible in Such a f~Ily re- It is !)'urprisingthat these very people usually agree presentative and democratic organisation to pay unduly to give a p&"ticipatory role to the workers in sick units, low and exploitative wages and salaries', On the other which are not making profits, because they feel that hand, workers' unions need nO't demand wages and by giving the workers a share in the management it salarIes out of line with productivity, as that, while it will make them more responsible and even goad them will raise their wage momentarily, wilIcut the com- to make sacrifices in their own interes,t to pull the pany's profitability and reduce their own profit in their .industry up and bring it dot of the red. But the capacity as shareholde,rs. Income distribution and moment a unit becomes profit-making and viable, the • . purchasing power will certainly be equitable and this ,very peO'plerevert to the belief that the workers must will take care of the other imperfections of the market not have any voice in the management, particularly at mechanis'm. . the highest level.. Somehow, this hangover. of the capitalist culture of economics, maintaining the basic distinction of employer and emplO'yed as separate classes, .is accepted as a basic premise. Yojana, April 1-15, 1985 21
  • 22. , another belonging to INTUC,which has. the same ideology as that of the Congress party. Bo~ unions were at loggerheads with e.ach other, but both were against the management. Hence, the deadlock and the stalemate. This author held consultations with the management, with officers of his Ministry, with the leaders of both the unions ~nd ultimately went to the plant personally and called a joint meeting of all the workers and made a p~oposition to both the unions to have two of their representatives on the managing cetmmittee of the plant and told them that this manag- . ing committee had full and final authority in all matters relating to the working at the plant. Both the management and .the workers were told to take up this challenge and run the plant as a joint effort. Serious app.ehensions were felt abo'ut the success of this ex- periment by many people, particularly at the top level of the management. However, it has been a matter of great gratification that the plant not only r.esumed functioning, but started showing record pro'duction in termS' of capacity utilisation within a period of three months from the date of its commencement and to pro'Ve that this was not just a matter of initial exube- rance. this trend has -been sustained for nearly a year now. During this period, the plant whic)1 even at its best, prior to September 1982, had never reached a capacity lutilis'ation of more than 40 per cent, had achieved capacity utilisation exceeding 90 per cent during some mo~ths and O'll an average pf about 80 per cent till now. Moreover, during this period there have been no ins'tances of disputes or clashes either- inter se tbe workers or between the management' and the workers. Thus, if ever pr<1ofwas needed of what participatory Tole of workers can achieve, this is it. But if there is no will and if faults have to be found because somewhere the ve~ted interests get affected, then the:e at"e numerous ways' to hinder the much- needed change. . A major and catastr<1phic instance in recent times has been that of the textile industry of Bombay, which had been closed down for over two years rendering about 200,000 employees idle and ca1Singa produr-tio'll )oss running into billions of rupees during this period. The main reas'on for the showdown in the textile industry has been the insistence on the part of the manag~ment, unfortunately supported by the govern- ment, that only a particular union will be treated as the recognised union. This union is not willing to have its membership or its credibility and support amo'ng the employees judged On any democratic criteria. more particularly that of an election by secret ballot. . It ins'ists that it should be recognised by some s<1rtof verification dl1ring which it expects to be favoured by the government because of its political allegiance. It is this which has been die bane of the entire ~m- player-employee relatio'nship in thi" country. As long as this union had some credibility among tbe employees, the relatiO'nship between the employers and the employeeS' did not come to a crisis. But when the so'~called recognised union lost .its credibility and was 22 not willing to establish itself by any d~mocratic method,' the matter came to a serious break. As a result the whole industry was thrown in turmoil by a prolcnged strike. It is therefore imperative to decide thin in the present pattern of employer-employee relation, the only rational way of establishing a bargaining agent for the employees must be in the forll].of electing that bargaining agent periodically, say, every two years, by seciet ballot among the employees of the concern. The IndustrlafDisputes Act will have to be suitably amen- ded to achieve this objective. There cannot be any convenient alternative to circumvent or by-pass this fundamental need. However, in the model envisaged in this thesis a'll economic democracy, the entire working class force will be partners in the form, of shareholders, each holding a nominal shal e and they would annually elect, from the respective categories of employees be- longing 1<j managerial, technical and non-technical classes, their representatives on the board of manage- ment (IS partners. Hence, there would be no cause or need for having tr~de unions !under this stlucture and it will obviate the need for having a bargaining [Lgent Had this philosophy been accepted and adopted in the textile industry or even if the bargaining agent had been deciaed by way of secret ballot, this author is confident that there would have been no textile strike. Even now, when we are thinking of a sO'lution, and a taKeover of the closed mills has been ordeled, I wou1d sincerely suggest that the units should adopt the proposed model wherein the workers will be treated as shareholders and partners in the new units' and will have an effective voice in their management, so that where necessary they will have to ag'ee to make sacrifices in the form of rationalisation, reductio'n in the complement as well as improvement in productivity and modernisation of the plant. This can be achieved only creating a total feeling af belonging and participa- tion among the working force. Unfortuantely what is called nationalis'ation often only means either bureau- cratisation <1r statism, where the personnel of the management are nominated ~y the government and the. exvloitory philosophy of employer-emvloyee relation- ship based on mutual distrust co'ntinues to prevail and plague the industry, as indeed has been witnessed in the entire nationalised textile sector and many other. so- callea nationalised units. The suggested model gives full scope for the indivi- dual initiative of the entrepreneurs. It would provide them with attractive returns, bo'th for their skill and their investment. The financing institution would also get a fair return. However, the net surplus generated would always belO'ngto the State, which represents the people as a whole. Hence, there would be no likelihO<1d of a few individuals amassing the surplus and con- trolling it themselves. Since the surplus in the organised sectOr would automatically belong to the State, there would be no question of taxing the organis'ed sector. Thus, most of the sources <1fgeneration of unaccounted money would disappea: at the root itself.: Yojana, April 1-15, 1985