PLAN OUTLAYS AND PROGRAMMES OF DEVELOPMENT
1. Plan Outlays The Draft Fifth Five Year Plan envisaged an outlay of Rs. 37250 crores in the public sector. The revised Plan outlay is now estimated at Rs 39303 crores excluding provision for inventories.
Public Sector Outlays 5.2. Not only has the Total Plan Outlay been increased from Rs 37250 crores to Rs 39303 crores but the outlay for the next two years has been reckoned at Rs 19902 crores as against the estimate for the first three years of the Plan which aggregate to Rs 19401 crores.
5.3. The break down of the revised outlay under major heads of development is as follows:-
Fifth Five Year Plan Outlay-1974-79
(Rs. crores)
draft revised fifth plan
fifth 1974-77 1977-79 1974-79
plan
(0) (1) (2) (3) (4)
1. agriculture and allied 4735.00 2130.19 2513.40 4643.59
programmes
2. irrigation and flood
control 2681.00 1651.50 1788.68 3440.18
3. power 6190.00 3513.05 3780.85 7293.90
4. industry and mining 9029.00 5205.35 4995.25 10200:60
5. transport and communica-
tions 7115.00 3552.67 3328.76 6881.43
6. education 1726.00 587.77 696.52 1284.29
7. social and community
services (including
economic and general
services but excluding
education) 5074.00 2322.42 2444.35 4766.77
8. hill and tribal areas
and NEC schemes 500.00 177.50 272.50 450.00
9. sectoral distribution not
yet reported. 260.44 66.29 326.73
10. total 37250.00*2 19400.89 19886.60*1 39287.49*1
1 Does not include an amount of Rs. 16 crores for which sectoral break-up is not worked out.
2 Sectoral break-up does not include an amount of Rs. 203 crores added subsequently.
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The outlays for the remaining years of the Plan are based on the following broad considerations : -
(i) The plan priorities of the Draft Fifth Plan have been kept unchanged ;
(ii) the outlays for on-going projects/schemes have been determined, on the basis of present and future demand, past performance, current completion schedules and escalation in costs
(iii) provisions have been made for new starts, including those which have long gestation periods, keeping in view the demand pattern for 1981-82 and in some cases 1983-84 ; and
(iv) an attempt has been made to see that the investments are not only fruitful but that they also ensure adequate return. In agricultural production, power, irrigation and education sectors targets were suggested keeping in view the national targets, natural resources of States and their present state of preparedness.
5.4. There is substantial step-up in the outlays on irrigation and flood control, power and industry and minerals. In agriculture, education and social services sectors though the revised outlays for the Fifth Plan as a whole are smaller, the outlays for the last two years of the Plan are higher than the outlays for the first three years.
20-Point Economic Programme 5.5. The 20-Point Economic Programme was announced by the Prime Minister on 1st July, 1975. The various constituents of the 20-Point Economic Programme, especially those which require financial investment, have been identified. Priority has been accorded to the implementation of the schemes falling under this programme. The outlays of the Centre, States and Union Territories for the remaining two years of the plan-1977-79 and the Fifth Plan are indicated below:
(Rs. crores)
1975-76 1976-77 1977-79 total
antici- approved proposed
pated outlay outlay
(0) (1) (2) (3) (4)
centre 119.01 163.71 757.06 1039.78
states and
U.Ts. 1850.68 2173.97 5334.67 9359.32
total 1969.69 2337.68 6091.73 10399.10
Annexures 21 and 22 indicate the proposed outlays for 1977-79 in respect of different constituents of the 20-Point Economic Programme.
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Overall Outlay 5.6. The distribution of the outlays by sectors, by Ministries, by States and by Union Territories is shown in Annexures 17-20, Briefly, the revised Plan outlays are as follows ;
(Rs. crores)
1. central sector 19954.10
2. states 18265.08
3. union territories 634.06
4. hill and tribal areas 450.00
total 39303.24
2.Agriculture and Irrigation 5.7. Agriculture Production: The methodology followed in arriving at the projections of foodgrains, important commercial crops, irrigated areas and other physical programmes has been explained in the chapter on the Rate and Pattern of Growth. These estimates relate to average weather conditions in a given year. However, in order to allow for variations in the effect of weather, provisions have been made in individual state plans on a slightly higher scale so that the total production is not materially lowered even if some part of the country is affected. If these outlays are utilised with a fair degree of efficiency and if weather conditions are favourable in all the states, the total production would naturally be much higher and could be of the order shown in the table below.
(mt-million tonnes, mh-million hectares,)
item 1973-74 maximum production
level estimates
(0) (1) (2)
foodgrains (mt) 104.7 132.9
oil seeds (mt)-five major 8.9 12.6
sugar cane (mt) 140.8 173.5
cotton (m.h.-170 kg) 6.3 9.0
jute and mesta (m.b.-180kg) 7.7 7.7
high-yielding
varieties (mb) 25.8 40.0
fertilizers 2.8 5.0
consumption (mt)
minor irrigation (mh) 23.1 31.6
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5.8. The expenditure on Agriculture and allied programmes during 1974-77 is likely to be about Rs. 2130 crores. The outlays proposed for the last two years of the Plan period are of the order of Rs. 2513 crores. The Sectorwise outlays are shown in Annexure 23 and the State-wise allocations are given in Annexure 24.
5.9. Performance of the important programmes, like DPAP, minor irrigation,production and distribution of high-yielding varieties of seed and distribution of fertilisers have been specifically examined and necessary provision has been made. The outlays for reclamation of alkline, saline and acidic soils and plant protection programmes have been suitably enhanced. Emphasis has also been placed on developing organic sources of manure and higher outlays provided for setting up biogas plants. Adequate provision has also been made for accelerating the minikit seed programme and strengthening of the extension services. Provision has also been made for augmenting storage capacity in the public sector.
Irrigation 5.10. The total irrigation potential likely to be created during the Fifth Plan period is placed at 13.1 million hectares ; 5.8 million under 'major and medium' and 7.3 million under 'minor'. Allowing for certain adjustments the additional potential should be of an order higher than 11 million hectares.
Major and Medium Irrigation 5.11. During the first three years of the Fifth Plan the expenditure on major and medium irrigation projects is likely to be Rs. 1474 crores. For the remaining two years of the Plan, an outlay of Rs. 1621 crores is indicated keeping in view the progress achieved on each project, new completion schedules, development of additional command and escalation in costs. Where work could be accelerated, higher outlays have been provided for projects such as Nagarjunasagar, Sarda Sahayak, Rajasthan Canal, Malaprabha and Kadana. Commitments to international agencies like the World Bank in respect of certain projects and obligation of States to provide matching funds in respect of inter-State projects have been kept in mind.
5.12. An Outlay of Rs. 1013 crores has been provided for new starts during the Plan period. In selecting new projects, priority was accorded to those located in drought prone areas. On the basis of the data furnished by the States and the discussions held recently, an additional potential of 5.8 million hectares is expected to be achieved during the Fifth Plan period. Details indicating the outlays and benefits State-wise are given in Annexures 25 and 26.
5.13. Planning Commission has been laying great emphasis on
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modernisation of certain important irrigation schemes urgently, particularly those completed earlier to the Plan periods. Provision has been made for some schemes like Godavari Barrage, Tajewala and Okhla Barrages and Bhimgoda headworks.
Minor Irrigation 5.14. According to the outlays available to the states for the first three years, a maximum potential of nearly 3.4 million hectares is likely to be created during the first three years of the Plan. The provision made in the following two years of the Plan almost equals the provision in the first three years. As a number of the projects are nearing completion, it is expected that an additional 3.9 million hectares will be brought under irrigation during the next two years.
Soil and Water Conservation 5.15. The programme for treatment of area in river valley catchment of major reservoirs and other soil and water conservation programme made a late start. A considerable step-up in outlays for implementation of these programmes has been made for the remaining two years of the Fifth Plan. In some of the States, soil and water conservation programmes have also been taken up with institutional credit support and the targets of physical performance are likely to be achieved.
Area Development 5.16. This important programme for optimising the use of irrigation water and utilisation of the potential created from selected commands of major irrigation works also took time to make a start. Now the Command Area Development Authorities have been set up and other infrastructure facilities developed. Therefore, the provision in the Central sector would be almost 22 per cent higher for the remaining two years as compared to the outlays for the first three years. The provision in the respective states adequately match the provision made in the Central sector.
Investment in Agricultural Financial Institutions 5.17. More and more institutional finance is being extended to the development programme for rural areas which leads to higher physical achievements with less public sector outlays. Accordingly, for providing support to Agricultural Refinance and Development Corporation, adequate budgetary provision has been made in the Central Sector, which is almost 55 per cent higher than the outlay in the draft Fifth Plan. In the State sector, provisions have also been made for investment in agricultural financial institutions which are higher by about 20 per cent. The provision made for the remaining two years in some of the States especially in the eastern region for strengthening of cooperative structure and development of loaning programmes by the Land Development Banks is almost 62% higher than the outlays available for the first three years. The total
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investment outlay is being raised to Rs. 129 crores. It is to be noted that the major portion of it will go to minor irrigation sector. This should generate sizeable investment and strengthen the operational capability of the Central/State Ground Water Boards.
Forestry 5.18. Taking note of the fact that forestry development has assumed a significant dimension as a source of timber and fuel and for the maintenance of the natural ecological system, special programmes for social forestry and economic plantations have been given high priority. Accordingly, for the remaining two years of the plan, the provision made is almost double the outlays provided for in the first three years of the Plan. Adequate provision has also been made for 'project Tiger' and for the development of National Parks and for strengthening the research programme in the forestry sector.
Animal Husbandry and Dairy Farming 5.19. There had been some delay in giving a start to the special livestock development programmes through small and marginal farmers and agricultural labourers.By and large the targets under production oriented projects such as intensive cattle development projects, intensive poultry production-cum-marketing centres, sheep and wool extension centres and fluid milk plants and milk product factories are expected to be achieved in full. There are 85 subsidised projects for cross-breed calf rearing, 57 poultry production projects, 45 piggery production projects and 38 sheep production projects through small and marginal farmers and agricultural labourers in 148 districts. Intergrated milk production- cum-marketing projects would be implemented in the States of Meghalaya, Assam, Sikkim, Himachal Pradesh, J and K, Orissa and Kerala as a second phase of the 'Operation Flood' project. Emphasis will continue to be laid on cross-breeding in cattle through establishment of exotic cattle breeding farms and intensive artificial insemination measures. Particular emphasis will be laid on scientific poultry breeding programme. Programmes for the control of rinderpest and foot and mouth disease would be continued.
Fisheries 5.20. There has been some delay in the start of a few projects but the targets for mechanisation of boats, production of fish seed and development of fishing harbours are expected to be achieve in full. A special Trawler Development Fund will be created in order to help, in particular, smaller entrepreneurs and cooperatives to purchase and operate trawlers for marine fishries. Fish Farmers Development Agencies would be started in the states for augmenting inland fish production and exploitation of water bodies in rural areas.
5.21. The UNDP assisted palagic fishery project would be continued for
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exploration and exploitation of fishery resources and this scheme would be extended to cover both the West and South East coasts. A survey of the North West coast would be conducted. An intergrated fishery development project around two fishing harbours at Veraval and Mangrol in Gujarat would be taken up with world Bank assistance. A research vessel will be provided to the Central Marine Fishries Research Institute.
Research and Education 5.22. In spite of the fact that the trend of expenditure during the first three years has been low on account of ban on recruitment of staff, the research priorities in different fields of crop production and animal husbandry have been maintained to yield new innovations in developing farm level technology. The coordinated research programmes have been suitably strengthened with the active participation of the Agricultural Universities in different States. A new research complex has been established in the north-eastern region. New institutes have also been established for strengthening cotton research and for developing research programmes on farm tools, equipment and machinery. Provisions have been made for projects with collaboration of agencies of United Nations. The Educational programmes have been further strengthened by setting up new Agri- cultural Universities which now number 21 covering 16 States.
Cooperation 5.23. Taking note of the desirability of strengthening the cooperative structure, provision has been sufficiently enhanced for Agricultural Stabilisation Fund, rehabilitation of weak Central Cooperative Banks and assistance to cooperative credit institutions in developing States. Thus the revised outlay for 1977-79 is almost 60 per cent higher than the outlays for the first three years of the Fifth Plan. Similarly, adequate provisions have been made in the State sector to provide for strengthening of cooperative structure by organising Farmers Service Societies and LAMPS in the tribal areas. Provisions have also been made for increasing the loaning programmes for minor irrigation, land development and supply of inputs.
Flood Control 5.24. The anticipated expenditure in the first three years is likely to be of the order of Rs. 177.69 crores. For the next two years (1977-79) an outlay of Rs. 167.59 crores has been indicated (Annexure 27).
5.25. Some of the important schemes are the Patna City Protecton Works, flood protection works in North-Bihar and U.P., flood control and drainage works in Jammu and Kashmir, drainage works in Punjab, improvement of lower Damodar system in West Bengal and flood protection works in North Bengal. The provision also covers the flood control works in the Brahmputra valley for
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which provision has been made in the Central sector.
5.26. The Centre is also assisting in sharing the cost of flood control component of the Rengali dam in Orissa and anti-sea erosion works in Kerala. It also meets the cost of the flood forecasting system that has been set up in the Department of Irrigation.
3. Power. 5.27. In the Fourth Plan an additional 4280 MW of generating capacity was added, taking the installed capacity to 18456 MW. In the first two years of the Fifth Plan 3524 MW were added, and with the requisite efforts on the part of the project authorities, it might be possible to add 2387 MW capacity during 197677. In the first three years, the outlay on generation projects would be about Rs. 2145 crores. It is now expected that a total of about 12500 MW of genera- ting capacity would be added during the Fifth Plan. Out of the projects which are currently under implementation, generating capacity of about 6000 MW would be still under construction at the end of the Fifth Plan. Experience indicates that management and techniques of construction and monitoring, would need to be considerably improved.
5.28. In finalising the Fifth Plan for Power, emphasis has been placed on the completion of on-going schemes as expeditiously as possible. In recommending outlays, the latest cost of each generation project, status of progress of major items of works, delivery schedules for the equipment and any constraints likely to be faced in implementation were all taken into account. Particular consideration has also been given to intra and inter-State transmission lines, setting up and strengthening of regional load dispatch centres, and investments on distribution. Transmission and distribution losses are expected to be reduced. The needs of schemes covered by external assistance have been also kept in view. Rural electrification will also be significantly higher than in the first three years of the Fifth Plan. The States will also be attracting institutional finance for rural electrification. The programme of energising pump sets will be accelerated. About 13 lakh pump sets are expected to be energised during the Fifth Plan period, as against about 6.3 lakh pump sets in the first three years. About 81,000 additional villages are also expected to be electrified in the Fifth Plan.
5.29. In planning advance action for the Sixth Plan, the power requirements till the end of the Sixth Plan are being kept in view. It has been assumed that the healthy trends In improved utilisation of capacity which have been observed in the Fifth Plan period and the progress in reduction of distribution losses, will continue. Special attention will be paid towards ensuring that regional grids are strengthened, that there is a balanced development of peaking and base load stations in each region, and that optimal use is made of these
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stations both by an integrated operation within the region and where necessary by cooperation between regions. With these considerations in mind, provision has been made for a number of new starts in the thermal and hydel projects including a centrally owned super thermal station. The views of the States were taken note of particularly in regard to aspects like readiness of projects, construction periods and escalation in cost. Many States expressed their willingness to raise additional resources to meet the requirements of new power projects.
5.30. The power position in northern and eastern regions will continue to be comfortable. But western and southern regions are expected to face both peaking and energy deficits.
5.31. Increased outlays are provided for training facilities for the operation and maintenance of power system.. testing facilities for electrical equipment and R and D in such priority areas as geothermal and tidal power.
5.32. The revised outlays under the various categories are summarised below :
Fifth Plan Power-Financial Outlay
(Rs. crores)
item states union centre total draft fifth
territories plan
(0) (1) (2) (3) (4) (5)
1. generation 3722.71 6.52 665.24 4394.47 3323.81
2. transmission
and distri-
bution 1897.73 78.78 104.74 2081.25 1634.27
3. rural electrification
(a) M.N.P.
and state
Plan 360.54 10.74 - 371.28 698.24
(b) rural
electrification
corporatio 314.02 - - 314.02 400.00
4. survey and
investigations 74.92 2.72 55.24 132.88 133.68
5. total 6369.92 98.76 825.22 7293.90 6190.00