The Panchayati Raj Institutions will functions as effective institutions of local self-government and they would prepare plans for economic development and social justice and implement them. The PRIs will be the umbrella for integration of sectoral programmes with poverty alleviation and rural development programmes. CAPART will continue to provide projectised financial assistance to Voluntary Organisations whill will have to play a more dynamic role in empowering the poor through advocacy, awareness generation and formation of Self-Help Groups during the Ninth Plan.

4.4. Irrigation Command Area Development and Flood Control

As a result of the large investments made in this sector, the irrigation potential of the country has risen from 22 million ha. at the beginning of the First Plan to 87 million ha. by the end of March, 1996. Correspondingly, the utilisation has increased to 78 M.ha.

Recognising water as a precious national asset, the National Water Policy adopted in 1987 embodies the nation's resolve that planning and development of water resources would be governed by national perspectives. The policy recognises drainage basin as the basic unit of planning for water resources development and calls for appropriate measures to optimise utilisation of these resources, not Only for the benefit of the people living in the basin but also for transfer of surplus water to meet the requirement of water-short areas. The Policy is being implemented by both the Central and the State Governments.

A high priority has been accorded to the irrigation sector which is evident from the fact that RIDF-I was launched in 1995-96 with a corpus of Rs.2000 crore to attend to the needs of rural infrastructure which aims at accelerating completion of on-going irrigation projects. During 1996-97 also, an amount of Rs.2500 crore has been provided under RIDF-II. In addition, an additional loan assistance of Rs.900 crores has been provided to the States under Accelerated Irrigation Benefit Programme for the year 1996-97.

During the Eighth Plan, a little less than 70% of the resources were allocated for major and medium irrigation works whereas the remaining 30% allocated for minor irrigation works, Command Area Development (CAD) and flood control. In physical terms, only 61% of the additional potential to be created and 70% of the additional utilisation are likely to be realised during the Plan in the case of major and medium irrigation works. In the case of minor irrigation works, the corresponding achievements are likely to be of the order of 70% and 66% respectively.

The Ninth Plan will lay emphasis on recognising water as a scarce resource to be utilised prudently. Towards this end, the following will be the approach:

(i) Improve the efficiency of end - use of water through adoption of water efficient devices, efficient practices etc. in agriculture and other sectors to optimise water use efficiency.

(ii) Promote conjunctive use of surface and ground water and optimum use of rainfall to supplement the same.

(iii) Encourage greater community participation in irrigation management for bringing about greater awareness of the need for judicious utilisation of water.

(iv) Ensure progressive reduction of conveyance losses in irrigation systems.

(v) Bridge the gap between the irrigation potential created and actual utilisation by strengthening the organisation of Command Area Development in the Centre and the States.

(vi) Completion of all ongoing irrigation projects to yield benefits at the earliest.

(vii) Restoration of old minor irrigation works particularly irrigation tanks through modernisation.

(viii) Encourage construction of new minor irrigation works consistent with water availability and parudent irrigation practices.

(ix) Introduction of rational pricing of water supplies for agriculture in a phased manner.

(ix) Review the existing approach to assessment of utilisation of irrigation potential in terms of the irrigated area and introduce an assessment based on the number of waterings of uniform water depth per hectare in an irrigation system and, then, gradually moving towards assessment based on volumetric measurement.

(x) Concrete steps will be taken towards implementation of a national perspective on water development through inter- river basin transfers of surplus water.

(xi) Emphasis will be placed on the adaptive research and development and use of remote sensing techniques in the development and management of water resources.

4.5. Environment, Forests and Wild Life

India has a land frontier of 15,200 Kms., and its sea coast runs to the length of 6100 Kms. It is the Second most populous and seventh largest country in the world. The total geographical area of the country is 3.28 million Sq. Kms. The total forest area in the country is 0.76 million sq. Kms which constitutes 23.2 % of the total geographical area. (The percentage of actual forest to geographical area is 19.5). According to the National Forest Policy (1988), 33% of the total geographical area of the country should be under forest cover. However, the present level of forest cover is much lower than desired.

Over 45,000 plant species are found in the Country. The vascular flora which form the conspicuous vegetation cover itself comprises about 15,000 species. Several thousands of them are endemic to this country and they have so far not been reported from anywhere in the world. The biological diversity of the country is so rich that it may play a very important and crucial role in future for the survival of entire mankind, if it is conserved with the utmost care. Today, two hot spots in biological diversity have been identified in the country namely, Eastern Himalayan region and the Western Ghats.

An integrated policy for the development of the Himalayas is called for to check degradation for conservation and protection of the region. The loss of forest species is so rapid that if they are not conserved and protected, then probably most of the forests will vanish from the country in the next century.

The approach for the Ninth Plan for environment protection, forest development and wild life conservation will be as follows.

Environment

Environmental conservation and protection will form an imporant component of development programmes in all sectors.

To clean up the polluted rivers in the country, River Action Plans were started in phases. The first phase of the Ganga Action Plan (GAP) which began in 25 Class-I towns in the three States viz. U.P., Bihar and West Bengal remains incomplete even after ten years of its inception. Out of the total sanctioned 261 schemes some are incomplete clue to serious problems relating to contractual matters, technology selection, cost overruns etc. Even in case of the completed schemes, the Created assets are in a dilapidated state, needing repair work. The question of operation and maintenance of these assets after the completion of the scheme still remains unsettled. As regards Phase-II of GAP, the survey reports in case of Damodar and feasibility reports; in other cases are still awaited. These factors have delayed implementation of GAP and National River Action Plan (NRAP). Resolution of these issues and completion of these projects will be given priority in the Ninth Plan.

Studies will be carried out on carrying capacity in environmentally fragile areas of the country. A proper legislative and institutional framewrok will be evolved for the protection of such areas which are endangered.

Consistent with the emphasis on conservation of biodiversity, a time-bound inventorisation programme of the flora and fauna of all the regions of our country will he formulated. The scope of botanical and zoological surveys will be redefined to promote this as also to facilitate a study of their reproductive biology.

Inadequate data on environment at the State level makes it difficult to judge the problems faced and to allocate sufficient resources. The States will establish Natural Resource Management Groups at the district level to closely monitor the state of the environment. With the collation of adequate data, they will

bring out status reports from time to time.

The various environmental regulatory agencies will be reorganised to become self-supportive. Environmental programmes, such as river cleaning projects, will also be so designed as to become inherently viable.

The industry will be motivated through: incentives to be responsive to environmental protection measures and thereby cooperate with the regulatory agencies in their endeavour to implement enviornmental safeguards.

Programmes aimed at bringing about environment education and awareness will be accorded priority. The local Panchayati Raj institutions and the community at large will be involved in implementing environmental protection programmes and bringing about environmental awareness.

The existing institutions will be net-worked for identification of pollution sources and prevention of pollution.

Forests

The national goal will be to have a minimum of 33 per cent of the total land area of the country under forest cover. If for some unavoidable reasons, any State cannot achieve this norm, the forest cover should not be less than 20 per cent of the total land area in the State and those districts which have less than 1 per cent of the geographical area under forest should achieve 2 per cent during the Ninth Plan period. In the hilly regions, the aim will be to maintain atleast 60 per cent of the land area under tree cover.

The present trend in favour of production forestry for industrial use will be reversed. The concept of privatisation of forest areas is not conducive in the Indian context and will, therefore, be discouraged in the management of forest resources.

The local communities will be conferred with the right to derive the full benefit of the forest produce in their respective areas. The concept of Joint Forest Management between the Government and the local communities will be the basis of management of the forest resources during the Ninth Plan. The local institutions will play an important role in this. In the management of forests, biological diversity will be promoted as it has multifarious advantages for the local communities as well as for the economy as a whole.

Special efforts will be made to afforest all degraded and denuded lands. The local communities will be fully involved in the-selection of the plant species. The

Central and the State agencies will assist the local institutions in promoting proper silvicultural and conservation practices. An adequate proportion of resources available under JRY and other rural development programmes will be made available for social forestry and regeneration schemes.

Special efforts will be made to contain the continued trend of diversion of forest land for non-forest activities.

All existing forest-based industries will be encouraged to raise on their own the raw material needed by them. Private sector participation will be encouraged for afforesting degraded and denuded lands.

There is a symbiotic relationship between tribal communities and the forests in which they live. The local. tribal communities will be fully involved in the management of the forests. Legislative and other efforts will be made to prevent damage to forests from encroachments, illicit felling, forest fires etc.

Special programmes will be taken up for promoting research on forests and wild life related problems. The Indian Council for Forestry Research and Education (ICFRE) and other academic institutions will be involved in such a programme.

Improving the fuelwood requiremeents of the local communities and fodder requirements of the local livestock population will form an integral part of the forest management programme. The Ministry of Environment & Forests will prepare a Bio-diversity Action Plan to be initiated during the Ninth Plan for conserving the bio-diversity in the Indian forests.

Development of the villages in and around the forest areas should be consistent with the need for ecological conservation.

Non-forest wastelands development will be given a high priority as it will relieve the pressure on the natural forests and provide the additional forest cover that is essential on ecological considerations. Wasteland development will be encouraged with the programme taken up for providing fuel, fodder etc. to the local communities on a suitainable basis.

Wild Life

Wild life conservation which will form an integral part of forest management will be realised through public awareness and peoples participation.

4.6. Industry

4.6 (a) Major and Medium Industries

Industrial activity in the Eighth Plan has been based on the New Industrial Policy of 1991, which aimed at industrial development through greater competitiveness, increased. efficiency, strengthening of indigenous capabilities, delicensing, deregulation and larger flow of foreign investment. While initially the rate of industrial growth was low, in 1993-94 it showed a sharp rise from 2.3 per cent to 6 per cent; this rose further to 8.6 per cent in 1994-95 and to 12.2 per cent in 1995-96.This increase in industrial growth is attributable to the various revival measures taken by the Government. The role of the public sector has been more clearly defined and their continuation in the core areas including infrastructure emphasized. Foreign direct investment of US $ 19.38 billion has been registered till March, 1996.

The textile industry is unique in its diversity with regard to the scales of production, technologies of manufacturing and use of fibres. It has strong linkages with agriculture. From farmers producing cotton, jute and silk to artisans, self-employed weavers and the organised mills of different compositions, the industry economically supports millions of people. It accounts for about one- fifth of the total industrial production and one-third of overall exports from the country. It has demonstrated a Satisfactory growth potential in the past and is poised for new challenges during the next decade. However, it, will be imperative to develop competitive strength of the industry with special emphasis on increase in productivity and quality upgradation of textile products. The growing concerns for environment, health and safety standards will also have to be kept in view in the process of growth.

The policy changes introduced during the Eighth Plan will continue during the Ninth Plan. consistent with this the following supplementary measures will be taken:

(i) The number of industries subject to licencing will be reduced further. Coal and sugar will be delicensed;

(ii) The list of industries for which automatic approval upto 51% foreign equity participation has been permitted will be suitably enlarged to cover among others, mining and exploration services, to stimulate FDI flows; besides, this limit will be raised to 74%. Foreign equity participation upto 100% will be considered in activities such as hotels, tourism etc.

(iii) Disinvestment will be considered upto 51% and beyond in the case of PSEs operating in the nonstrategic and non-core sectors.

(v) The policies relating to PSEs will be fine tuned to ensure greater autonomy, their more efficient functioning and increased resource generation. Potentially viable units will be assisted through restructuring, offering a more attractive VRS package and conversion to joint ventures etc. Public Enterprises with comparative advantages will be supported in their drive to become global giants.

(vi) A part of the proceeds of disinvestment of PSEs will be earmarked for revamping/ restructuring of PSEs. The Managements of PSEs will be strengthened through professionalisation and encouragement of workers, participation. While encouraging a competitive environment, the domestic industry in the private and public sectors will be assured of a level playing field.

(vii) The existing criteria for identifying sickness in the case of an enterprise and referring it to the BUR will be reviewed to permit timely action for rehabilitation of such enterprises. The existing BUR procedures will be streamlined to expedite the process of rehabilitation of potentially viable PSEs.

(viii) The scope and content of National Renewal Fund (NRF) will be reviewed with a view to ensure that the NRF subserves the objectives for which it has been instituted.

(ix) Appropriate policies would be evolved to encourage location of new 'industries in backward areas. The Growth Centres Scheme in operation during the Eighth Plan will be reviewed and adapted to make it an effective instrument for promoting industrial development of backward areas.

(x) The recommendations of Chelliah Committee on rationalisation and simplification of the tax structure will be implemented.

(xi) The system of monitoring implementation of projects in the public sector will be suitably strengthened to ensure that time and cost overruns in project implementation are minimised;

(xii) A greater degree of coordination will be brought about between the industrial policies of the Centre

and the States.

4.6(b) Village and Small Industries

The Village & Small Industries sector includes subsectors such as Small Scale Industries (SSI), Coir Industry, Khadi and Village Industries (KVI), Handlooms, Powerlooms, Handicrafts, Wool Industry, Sericulture and Food Processing Industries (FPI). The VSI sector has a. considerable potential for generating employment. It is more amenable to widespread regional dispersal and also more, elastic in responding to the changes in the market. The SSI sector contributes more than 40 % of the value added in manufacturing and more than 35 % of the exports, both direct and indirect. The Textile Industry, in particular, contributes substantially to the country's exports. It is for these reasons that the VSI sector needs greater focus in terms of investment and technology upgradation, infrastructural support, marketing and credit facilities, testing, quality certification and training facilities.