Backward regional development

Backward Regional
development plan
Submitted by:
D. Akash (11011BA001)
M. Samyuktha (11011BA022)
B. Sarath chandra (11011BA024)
V. Srinivas (11011BA032)
M. Pradeep (1011BA024)
Submitted to:
Mrs. Indu Priya;
Mr. Praman Kumar;
Faculty, Planning legislation

Outline
 Need for Identification of BACKWARD regions
 Concept
 National committees on identification of BACKWARD regions
 Variables recommended by the committees
 Methods of identification of BACKWARD regions
 Backward Area Grant Fund
 Case Study: Himachal Pradesh (Backward Area Sub Plans)
1/30/2016Backward regional development plan
2

Why Identification of BACKWARD
regions ??
 Aim: The study attempts to assess the spread effects of
development process in the country with a view to identify the regions
of iniquitous distribution of development.
 Identification of forces adversely affecting the process of
development requires to be made for evolving criteria for
identification of backward areas in the country.
 Backwardness is a relative concept. Within the overall context of
under-development, observable patterns exist and areas with
different kinds and severities of backwardness can be identified.
3

Why Identification of BACKWARD
regions ??
 It is necessary to identify levels of development, the factors with
which such levels are associated and the features underlying
structural backwardness.
 Necessity arises for formulating strategies for long term plans,
immediate policy requirements and the choice of the instruments.
Selection of a set of indicators is a crucial decision.
 Studies by Various committees constituted by planning commission,
formulated by Government of India are made in these connection.
4

Concept of BACKWARD region
 Regions which have not come out of the low level equilibrium trap.
 Regions in which the economy is largely subsistence one.
 Regions having Lack of infrastructure facilities, adverse geo-climate
conditions, low investment rate, high rate of growth of population, and
low levels of urbanization and industrialization.
 There are no absolute standards of 'backwardness‘.
 Hence the concept is a relative one and in the ranking of areas.
5

National committees for identifying
BACKWARD regions
 Study Group Constituted in the context of the
formulation of the Draft Fourth Five Year Plan
(1966-71) to identify areas with high density
of population, low level of income,
employment and living conditions etc. in the
country through a set of indicators of regional
development.
 The Pande Committee with the intention to
ultimately suggest a strategy whereby
regionally imbalances could be minimized or
even eliminated by arranging establishment
of industries of all sizes in selected backward
areas or regions through financial and fiscal
incentives.
 Distance from larger cities and large
industrial projects
 Per-capita income
 Population engaged in secondary and
tertiary activities
 Factory employment
 Non/under-utilization of economic
and natural resources
6

National committees for identifying
BACKWARD regions
 The Wanchoo Committee was the
second working Group appointed by the
National Development Council in 1986 to
make a careful study of the issue of
regional imbalance.
 This Committee was appointed to suggest
financial and fiscal incentives in order to
remove the industrial backwardness.
 This Committee suggested a number of
incentives like the excise subsidy, the
transport subsidy, the concessional
finance, the liberalized import and supply
of scarce raw materials, etc.
 Another Committee on Backward Areas
under the Chairmanship of Prof.
Sukhamoy Chakravorty in October 1972.
 Planning Commission appointed another
committee on 6.2.1997 to evolve criteria
for identification of 100 most backward
poorest districts in the country. This
committee was headed by Dr. E.A.S.
Sarma.
7

National Committee on the Development
of Backward Areas
 National Committee on the Development of Backward Areas (N.C.D.B.A.) under the chairmanship of
Shri B. Shivaraman was appointed by planning commission in November, 1978, evolved an innovative
method in identifying and classifying the backward areas in the country, i.e. instead of relying upon any
indicators of development/backwardness or indexes there of (either sectoral or composite), it settled
upon recommending the following six types of problem areas as backward:
 Chronically drought-prone areas
 Desert areas
 Tribal areas
 Hill areas
 Chronically flood affected areas
 Coastal areas affected by salinity
 These six categories can be viewed as six types of fundamental backwardness. In this sense an area
may suffer from the handicap of more than one type of fundamental backwardness.
8

Variables recommended by the committees for the
Identification of BACKWARD regions
I. Density of population per sq.km. of area.
II. Percentage of agricultural workers to total workers.
III. Percentage of literate population.
IV. Percentage of school going children.
V. Total per-capita income.
VI. Per capita income from agriculture.
VII. Sex ratio, industry and mining.
VIII. Availability of infrastructural facilities.
IX. Per capita consumption of electricity
X. Chronically drought prone areas.
XI. Chronically flood prone areas.
XII. Length of surfaced roads per 100 sq. km. Of area.
XIII. Public health care system.
XIV. Safe drinking water facility.
9

Delineation methods
For Backward regions in INDIAN context
10

Indices Method
 An index of development of each district was
computed on the basis of the above six indicators
taking the national average position as 100. The index
of development of the district was then obtained by
taking the arithmetic average for all indicatiors.
 The districts with indices below 100 are treated as
backward in this case. The results of this exercise as
indicated below:
 206 districts get classified as backward
 Each district was ranked as per the various
indicators.
 The individual ranks were added to get a total rank
for the district
 Taking the median value (955) as the cut-off point,
all those districts which had a value below the
median value were classified as backward.
 ,164 districts get classified as backward areas
11
Values of Indices No.of Districts
Less than 50 81
60 – 80 66
81 – 100 39
101 – 120 45
121+ 75
Simple Ranking Method
Total ranks No. of districts
<400 8
401 – 650 59
651 – 955 97
956 – 1250 65
1251 – 1500+ 97

Principal component
method
 In the simple ranking method and the in dices
method, an equal weighting techniques was
followed which is without underlying mathe
matical logic.
 The principal component analysis was, therefore,
used as a supplement to the other simple
methods.
 In this method, all the fourteen variables were
used.
 The principal component analysis starts with a
matrix of correlation coefficients measuring the
degree of co-relation between the indicators.
 A comparative picture of the results obtained
by the three methods is given below:
12
Method Cut off Point No. of
districts
Simple ranking
method
Median value
of total rank
955
164
Indices method Below 100 206
Principle
component
method
Factor – score
>10
181
A further analysis of the results of the three
methods reveals that 160 districts are common
to all the three methods & 19 backward
districts including UT’s the figure comes to 179
backward districts

13
102
23
22
25
07
179 - Total Backward
districts in India

Backward Area Grant Fund
 The Backward Regions Grant Fund Program (BRGF), launched by the Indian Prime
Minister at Barpeta in Assam on 19 February 2007, signified a new approach to
addressing persistent regional imbalances of development in India.
 The program subsumed the Rashtriya Sama Vikas Yojana (RSVY), a plan previously
administered by the Planning Commission.
 The BRGF Program covers 250 districts in 27 States, of which 232 districts fall under the
purview of Parts IX and IX-A of the Indian Constitution dealing with the Panchayats and
the Municipalities, respectively.
 The remaining 18 districts are covered by other local government structures, such as
Autonomous District and Regional Councils under the Sixth Schedule of the Constitution
and state specific arrangements as in the case of Nagaland and the hill areas of Manipur.
14

Objectives:
 The Backward Regions Grant Fund is designed to redress regional imbalances in
development by way of providing financial resources for supplementing and converging
existing developmental inflows into the identified backward districts, to:
 Bridge critical gaps in local infrastructure and other development
 Strengthening and providing professional support to Panchayat and Municipality level
governance with more appropriate capacity building, to facilitate participatory planning,
decision making, implementation & monitoring.
 Improve the performance and delivery of critical functions assigned to Panchayats & local
bodies.
 Special provisions have been made in the guidelines for those districts in J&K, Assam, Manipur,
Meghalaya, Mizoram, Nagaland and Tripura, which do not have Panchayats, where village level
bodies and institutions mandated under other frameworks to plan and implement the programme
15

16 Unique features:
There are three features of BRGF that make it truly unique among central initiatives to combat
backwardness.
1) First, the approach of putting the Panchayats and the Municipalities at the center stage
of planning and implementation.
2) Second, no Central funding stream is as ‘untied’ as the BRGF – the funds can be applied
to any preference of the Panchayat/ Municipality, so long as it fills a development gap
and the identification of the work is decided with people’s participation.
3) Third, no other programme spends as much funds, nearly 11 percent of the total
allocation, for capacity building and staff provisioning.
 The planning process under BRGF is based on the guidelines for district planning issued
by the Planning Commission in August 2006 and January, 2009.
 The process of integrated development commences with each district undertaking a diagnostic study of its
backwardness and a baseline survey by enlisting professional planning support, to be followed by a well-
conceived participatory district development perspective plan to address this backwardness during the
period of the Eleventh Five Year Plan.

17
BRGF Development Grants:
 District Plans received from the various States indicate that the untied fund allocated to the districts are
generally being used for filling infrastructural gaps in drinking water, connectivity, health, education, social
sectors, electrification, etc.
 The basket of works taken up includes construction of school buildings /class rooms, health sub-centers,
drinking water facility, sanitation facilities, anganwadi buildings, Panchayat buildings, irrigation
tanks/channels, street lights, link roads, culverts, soil and water conservation measures, etc.
BRGF Capacity Building Grants:
 The BRGF has adopted the National Capability Building Framework (the NCBF).
 This envisages strengthening of institutional arrangements, including the infrastructure as well as software
support for capacity building of elected representatives, the functionaries and other stakeholders of PRIs
and thereby improving the vigor of grassroots level democracy
 In 2009, the World Bank conducted an independent evaluation of the BRGF program in 16 districts in 8 States.
The evaluation report pointed out that the BRGF funds are the single most important source of discretionary
funds available to the Panchayats. The funds allocated under BRGF are small, meaningful investments for
backward areas development. The study also suggested that outlays should be enhanced in order to be more
effective.

Case study:
HIMACHAL PRADESH
BACKWARD AREA SUB PLANS
18

Context
 Himachal Pradesh remained concerned about the need to remove the micro level regional
disparities/ imbalances in terms of creation of infrastructural facilities in Backward Areas.
 With this view, identification of certain areas as backward was taken up during the Fourth Five
Year Plan and efforts were made to identify certain areas being remote and inaccessible which
remained neglected due to their inaccessibility and other difficult geographical and harsh
climatic conditions prevalent in these areas.
 The basic criteria decided for this purpose was remoteness, inaccessibility, coupled with visual
perception of the level of socio- economic development and infrastructural backwardness.
 This process gave birth to the formulation of the Backward Area Sub Plan which was designed
to mitigate the micro-regional disparities in development and to look after the developmental
needs at the micro level for these identified areas.
19

Objectives of Backward Area Sub Plans
 Reduce regional disparities
 Evolve suitable policy for the development of Backward Areas
 Decentralization of Planning process
 Ensure people’s participation in Planning & decision making
 Providing better coordination and integration of development programme
 Effective mobilization of resources at district level
 Reduce communication gap between people and the Government
 More powers to people at local level
 Evolving effective decision making system at District level
20

Working methodology
 Step 1: Identification of backward areas
throughout the state considering indicators
 Step 2: Delineating Backward regions & sub
categorizing them.
 Step 3: Appointing District Planning Officer
as District Development Officer . Planning
suitable policy/ strategy is prepared involving
people participation.
 Step 4: Implementation & Monitoring
is done by District Development Officer.
District Development Officer introduces
sub plans and coordinate funding to
heading sectors.
21
State District
Identification
Delineation
Planning Implementation
District Development officer &
Deputy commissioner
Plan Review
Funding

22 Criteria for declaring Panchayats as
BACKWARD (The Indices Method)
Indicator weight
Remoteness & Inaccessibility (25): The geographical centers of the area under consideration should be at least 15
Km. away from the main motorable road.
25
Demographic indicators (35): The percentage of Scheduled Caste/ Scheduled Tribe population in the area under
consideration should be 25 percent or more
20
90% of the total workers population in the area under consideration should be workers engaged in the primary
occupation like Agriculture and Animal Husbandry, etc.
5
The %of school going children in 6-14 years age-group in the area under consideration should not exceed 20% 10
Infrastructural (36): The percentage of scarcity villages with reference to drinking water should be 60 percent or more. 10
The percentage of electrified villages to total should be 25 percent or less. 8
The number of health institution in the area should not exceed one & no veterinary institution in the area 13
The area under consideration should not be served by a bank branch as per RBI norms. 5
Agriculture (4): The average holding size in the area under consideration should be one hectare or below. 3
The percentage of cropped area under major cereals (Wheat, Maize and Rice) or remunerative cash crops like potato,
apple, tea, etc. to the gross cropped area should not exceed 50 percent.
1
TOTAL 100
Any Panchayat scoring 60 or more than 60 points on an absolute basis based on the above weights assigned to
various indicators becomes eligible for being declared as backward

Formulating Backward Area Sub Plans
 All such Panchayats which have been carved out of
the existing notified backward Panchayats , will be
declared as backward.
 All such blocks as have more than 50 per cent
panchayats notified as backward will be declared
"Backward blocks“. Group of Backward Panchayats
which form a contiguous area will be considered as a
"Backward Area".
 For "Backward Blocks" and "Backward Areas", area
based planning will be adopted.
 For Backward Panchayats which are dispersed in
nature, beneficiary and area based planning will be
undertaken.
 Separate budgetary arrangements will be made
under this policy and the total earmarking for
backward areas will be allocated on the basis of total
number of panchayats in each group.
 The "Backward Area Sub- Plan" will be
administered through the Deputy Commissioners.
 The Backward Area Sub Plan will comprise of
three categories viz:-
 Backward blocks ;
 Contagious pockets &
 Dispersed Panchayats
 A total number of 551 Gram Panchayats out of 3243
Panchayats in the State have been declared as Backward
Panchayats in Himachal Pradesh.
23

Set up
 Sectors covered under the beneficiaries oriented
planning include Agriculture, Horticulture, Animal
Husbandry, Village and Small Industries and
incentive schemes under the Education sector.
 Deputy Commissioners have been declared as
controlling officers for the allocation of funds under
this Sub-Plan.
 All the District Planning Officers have been
declared DDOs for all the Capital heads under Sub
Plan and DDOs of the concerned departments in
the districts operate revenue heads only under the
Sub Plan.
 District Planning Officer helps the Deputy
Commissioner in implementation of the various
aspects of the Sub Plan and District Planning
Officer is responsible for physical and financial
monitoring of all schemes under the Sub Plan.
 Backward Area Sub Plan is operational in ten
districts of the State except tribal districts, which
are being taken care of under separate Tribal Sub
Plan (TSP) .
 Hence, Backward Area Sub Plan is restricted to the
non- tribal areas of ten districts of the State.
24

Funding
 To regulate and avoid any abnormal
fluctuations in the expenditure under BASP,
the State Government has issued
instructions during 2001 to spend the budget
in the following controlled manner:
 1st Quarter 25%; 2nd Quarter 40%; 3rd
Quarter 25% ;4th Quarter 10%
 The quarterly budget authorization under BASP
to the districts is also made on the above
mentioned criteria.
 District-wise break-up of these backward
panchayats is as :
25 District Total
Panchayats
Backward
panchayats
Bilaspur 151 15
Chamba 283 159
Hamirpur 229 13
Kangra 760 17
Kullu 204 79
Mandi 473 149
Shimla 363 83
Sirmour 228 26
Solan 211 7
Una 235 3
Kinnaur 65 -
Lahul & Spiti 41 -
Total 3242 551

26

Comments
 BSAP is characterized by decentralized approach but concerned
about few sectors only.
 Budgetary funding is done quarterly based on the performance of the
blocks, which can be appreciated.
 Peoples participation is encouraged in decision making which has to
be extended to implementation level & Problem solving.
 Decision making should be done at panchayat level in coordination
with District development officer…
27

Source
 Regional planning in India – Mahesh Chand and V.K.Puri
 Regional planning-Concepts, Techniques, Policies and Case Studies - R.P.Mishra
 Report on “General issues relating to Backward Areas development”, Planning
Commission, Government of India, 1991.
 Report on “Approach to imbalances: Identifying Backwardness & Regional imbalances”,
[Planning.kar.nic.in]
 Report on “Backward Area Sub Plans”, Planning department, Himachal Pradesh
28

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