v. Handing over the management and supervision of local service centres like health centres, schools, etc., to District Boards and Panchayats.
vi. Greater involvement of voluntary agencies who have the abilities to demonstrate and innovate, provide technology and training and act as support mechanism to local level institutions.
vii. Streamlining of organisations at various levels so that overheads are cut down, delays are reduced, necessary funds are made available to local agencies in time, various sanctions are issued and dedicated manpower and other inputs made available in time.
viii. A concerted effort to involve and train officials as well as non-officials, not only to bring about required skills for planning and implementation but also to inculcate required attitudes and impart necessary knowledge about the management of programmes at local levels.
ix. Devising effective system of monitoring and evaluation which monitors the programmes more in terms of ultimate benefits than of expenditure incurred or inputs used. For example, the ultimate benefit of the family welfare programme is reduction in birth rate, while the targetting and monitoring is done in terms of couple- protection rate. This needs to change.
x. Introduction of better delivery system through self-managed organisations.
Project and Programme Sustainability 19.3.4 In addition to effective implementation of the projects and programmes, it is a] so necessary to make adequate provision for ensuring their sustainability so that the intended benefits in the form of goods and services and coverage of beneficiaries are, in fact, generated with required quality, various assets created are adequately maintained and the anticipated life of the projects and programmes is achieved. To ensure proper sustainability of projects and programmes, following aspects may be considered:
i. The project/programme design should include the parameters which bring out clearly as to how the project output in the form of goods and services will be sustained during its operation, how various assets will be maintained and quality ensured. The pro- ject/programme costs should include both the capital components as well as operating and maintenance components required for sustaining the output.
ii. The appraisal of projects and programmes should cover the sustainability aspects. Criteria should be developed for this purpose covering physical, organisational and other aspects. Viability calculations should
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include relevant operation and maintenance requirements and costs for this purpose, even if these are on non- plan side. It should also be analysed at this stage as to how these costs would be funded and whether there is any possibility of project/programme authorities generating adequate resources for operating and maintaining the projects/programmes through user charges, etc.
iii. While analysing the project design and parameters, it should be ensured that there is market and demand for the goods and services to be produced at the price or the user-charges proposed and that there will be adequate provision made in the project design for extension, marketing, transportation and other requirements to ensure that. the project output reaches the targetted beneficiaries and users as intended. The interaction with the beneficiaries during project or programme formulation can help in incorporating the sustainability aspects in the project design.
iv. Effective monitoring and evaluation aspects to ensure sustainability should be built into each project design as well as during the implementation stage of a project/programme.
Construction 19.3.5 Construction is a general term which covers various forms of activities ranging from small house construction to large buildings, from small rural works to large mining and industrial complexes, from village roads to national highways and railways, from tiny irrigation works to large dams and power projects and from onshore drilling to construction of offshore platforms. Construction can be looked at as a system in which the participants are many and varied, including Government agencies, private organisations or individuals/households, architects, engineers, consultants, contractors, material suppliers, manpower suppliers and trainers, software suppliers, R&D institutions and finally, the construction workers. All these participants have to work together, in partnership, to make construction efficient and cost-effective and at the same time consistent with social justice to construction workers who are by and large unorganised.
19.3.6 Implementation of both the projects and the programmes involves construction. In fact, about 40 to 50% of the Plan outlay on projects and programmes is estimated to be for construction. Similarly, about half of the gross capital formation in the economy, after excluding inventory increases, is on account of construction, the balance being due to plant and machinery. At the same time, this activity not only provides significant employment but also accounts for the highest rate of growth of employment in the past decade. The growth rate of employment in construction during 1977-78 to 1987-88 has been about 10% as compared to about 2% for all sectors put together. The success of Plan implementation would, therefore, be determined largely by the efficiency and effectiveness with which construction activities are undertaken.
19.3.7 The problems relating to diverse construction activities are naturally varied and multifarious. However, there are some common problems and thrust areas which require specific attention during the Eighth Plan. Some of these problem areas and issues are discussed below.
Construction Labour 19.3.8 Labour engaged in construction works is unorganised and mobile from one construction site to another. Their children cannot attend a school. Not having a regular address, they cannot have a ration card and are thus deprived of the benefits of public distribution system. A Tripartite Working Committee on Building and Construction Industry, set up by the Ministry of Labour in February 1985, has been looking into the problems of construction labour. As of date, nearly a score of labour laws are applicable to construction sites, but none of these laws is fully implemented or followed even in essentials. A comprehensive legislation covering construction labour is proposed to be introduced in the Eighth Plan with effective machinery for ensuring its implementation so that the employment and working conditions of construction labour can improve. If necessary, a cess may be levied on contracts above a certain value to provide for a Construction Labour Welfare Fund. Ways have to be found to extend the benefits of Public Distribution System to construction workers and
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to all such other workers who do not have a fixed abode. Special arrangements by way of mobile schools may have to be made for the schooling of children of construction workers.-
Construction Training and Technology 19.3.9 Institutionalised training in construction trades is almost non-existent. At present, out of about 15,000 seats for technical training offered in the country, not even 1% is for construction trades. Special efforts are necessary to develop programmes of training in construction trades, which may range from short training programmes of ITI's standard and higher level training in designing, planning and material management with emphasis on low- cost high quality construction.
19.3.10 As mentioned earlier, construction accounts for nearly half of the capital formation in the economy and therefore, it affects the cost of production in almost all the sectors of the economy. Low-cost construction is the only answer to the housing needs of the millions. There is a need for judicious mix of labour-intensive and mechanised technology, depending on the nature of the project complexity, quality and other factors. Wherever modern technology promises to cut down costs and delays in construction, it should be used, particularly for complex and highly capital-intensive projects. Even in areas like mass housing for weaker sections, mechanised and pre-fabricated construction can bring down costs. Labour-intensive methods may be more suitable in other areas, especially rural works.
19.3.11 In most projects, materials account for about two thirds of the construction cost. It is, therefore, essential to assess and plan for requirements of essential materials. Use of new materials, many of which are proven, has to be encouraged. In particular, the use of fly ash bricks and other low-cost, locally available construction materials has to be increased manifold in order to help solve environment related problems associated with fly ash disposal as well as reduce the cost of construction. Use of materials like timber, which have environment implications, needs to be discouraged. Efficiency, productivity and energy conservation in use as well as production of construction materials have to be encouraged. There has to be a continuing search for cheaper materials. Research, development and standardization efforts related to construction industry user requirements need to be intensified.
Contract Management 19.3.12 A major part of the construction work is carried out through contractors. However, contract management is a neglected area. There is need to standardize and develop a fair and equitable contract document which should provide adequate incentives for completion of jobs on or before schedule and disincentives for delays. Works manuals of engineering departments have to be revised. As already indicated, the use of modem techniques such as PERT, CPM, Value Engineering, Workstudy etc. need to be incorporated in contracts. The system of prequalification needs to be streamlined. Two or three part bids (technical, commercial, price) from qualified bidders could be introduced to eliminate delays and other problems. Use of consultants in construction planning, management and monitoring can be useful in making construction management more effective.
Project Export 19.3.13 Overseas construction projects have emerged as an important area of economic acitivity. It is estimated that overseas construction work to the tune of Rs.10,000 crores has been executed by Indian companies so far, mainly in the Middle East, Africa, South-east Asia, Far East and Pacific regions. Despite some uncertainties in the neighbouring countries today, the medium-term potential is large and two factors coming in the way are: (a) technology and (b) manpower quality and management. Both these areas require special attention if the Indian companies have to sucessfully compete in the international market.
Main Thrust in Construction 19.3.14 The main thrust in the construction sector in the Eighth Plan will, therefore, be on efficiency, cost reduction, timeliness, quality on the one hand, and increased employment and greater welfare of construction workers on the other.
Management Information System 19.3.15 During the Seventh Plan, a large network of computers - NICNET - was established with a national centre at New Delhi and four regional computer centres, besides centres in all States, Union Territories and district headquar-
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ters. All these are interconnected through satellite and the terminals connect all major Government departments in the Central and State Governments. This network operated by the National Informatics Centre(NIC), provides the hardware and software support for the data bases at every level and for interchange of information with a view to improving operations and management.
19.3.16 It is proposed to develop information system and databases at national, State, UT's, district and block levels in important Plan areas and economic activities during the Eighth Plan.
19.3.17 The range and spread of informatics, being developed has special relevance for the thrust on decentralised planning which is the cornerstone of rural development in the Eighth Plan. Two points are relevant in this context. First, the reliability of information is a major desideratum and the information system has, therefore, to improve the collection of primary data, much of which flows from the administrative system. With the decentralization of the administration and of the services delivery system, there is need for a link up between the new delivery system and data collection, through and for them. Secondly, with the availability and networking of variegated information system together with details such as are not available from satellite imagery interpretation, decentralized planning can now be taken up on a scientific basis.
19.3.18 On a sectoral or industry level, efforts have already been initiated to develop management information systems at the enterprise and sector level. A beginning was made with a common data base developed for the power sectors. Similar formats need to be evolved for all sectors. This will avoid multiple reports, reduce paper work and facilitate consistency checks and at the same time make available online data as per requirements. It will minimise delays as well as enable processing and analysis of data speedily as per requirements. An inter-ministerial Committee has recently examined the monitoring system with regard to central public sector enterprises which have signed Memoranda of Understanding. The Committee has suggested streamlining, common data collection, reduced paper work, etc.
Monitoring 19.3.19 During the Seventh Plan, a monthly "Flash Report" monitoring system was introduced for all Central sector projects costing over Rs. 100 crores to enable a top level review by the Government. Separate systems were established for other Central projects and for the monitoring of the 20-Point Programme and infrastructure performance. A separate Ministry of Programme Implementation was also establised for monitoring tasks. Of late, the monitoring system at various levels has got into a stereotyped mechanism, handling routine infor- mation. During the Eighth Plan, efforts will be made to evolve a system, of regular flow of relevant information to make monitoring an effective tool of management action at all levels. At present, too many agencies demand data from the source agencies. Availability of data in a common data base in the system, which is accessible to various user agencies, can reduce such pressures on in-source agencies.
Performance and Efficiency Improvement in Public Sector Enterprises
(PSEs) 19.4.1 Over the last four decades massive investments have been made in the Central public sector enterprises(PSEs). Growth of the public sector was phenomenal in terms of number, investment, production and range of activities. The number of Central PSEs rose from 5 in 1951 to 246 by the end of March 1991, and investment from Rs.29 Crores to Rs. 1, 13,234 crores during the same period.
19.4.2 A sustained and continuing effort for improving the performance of all PSEs and realising the objectives for which they were set up is required. A major desideratum is the improvement of management, which calls for increased delegation of powers for fast decisionmaking, management by professionals and specialists and increased distancing of Government administration from the PSEs, subject to certain essential safeguards to ensure "accountability". The introduction of the concept of Memorandum of Understanding is meant to develop proper relationship between the Government and PSEs.
Administrative Improvements 19.4.3 The main administrative tasks and the need for administrative improvements in the Government system at different levels have been highlighted in successive Plan documents. The
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Second Plan document brought out the need for speedy, efficient and economic methods of work, objective evaluation of methods and results, local community action, public participation, provision of incentives and opportunities for creative service and training of Government personnel. Many Committees and other bodies have looked into the requirements for improving the administration. The Administrative Re- forms Commission in the sixties made comprehensive recommendations covering wide areas. However, the situation today is not very differ- ent from what prevailed at the beginning of the planning in the country and not many positive achievements appear to have been made in improving the administrative system.
19.4.4 The main thrust in the Eighth Plan in this area would be on initiating some basic improvements in the administrative system so as to (a) increase efficiency and reduce public expenditure and (b) considerably improve the services to the people. The important aspects to be considered in this regard are as follows;
i. Reduce considerably the area of Government's intervention, regulation and control of multifarious activities;
ii. Simplify procedures of Government sanctions to cut down delays;
iii. Instead of creating departmental units within the Government 'for specialised services, contract out such services to outside agencies;
iv. Review the need for each and every existing Government organistion or unit based on the concept of 'Zero Based Budgeting' with a view to closing as many such units as possible. The surplus staff could be usefully deployed elsewhere on productive jobs.
v. Use computer networking and information exchange to reduce paper work.
vi. Shift towards an "open office system" and a closer interaction among Government officers, against the present tendency of compartmentalisation. Instead of separate specialised personnel, there can be combination of skills and responsibilities in one unit or person, thereby avoiding the need for referring to many other agencies, i.e., a move towards the 'single window' sys- tem.