Moving away from the previous practice of presenting single growth projection, the Planning Commission has come out with three different economic scenarios for the 12th Five Year Plan
New Delhi: India’s apex policy making body National Development Council (NDC) Thursday approved the strategy to achieve average growth rate of 8% during the 12th Five Year Plan (2012-17), generate 50 million new jobs and increase investments in infrastructure sector, reports PTI.
“I am very happy that NDC (National Development Council) has approved the 12th Five Year Plan. We have marginally reduced the average annual growth rate to 8% (from 8.2%).
“We expect with the growth rate of 5.8% this fiscal and little over 7% next fiscal, and with extra effort in the remaining three more years we can reach 8%,” Planning Commission deputy chairman Montek Singh Ahluwalia said.
The voluminous document, containing detailed policy strategy for the 12th Plan, was approved at the full meeting of the NDC chaired by prime minister Manmohan Singh.
The document has pegged the aggregate Plan resources at Rs37.16 lakh crore during the five year period starting 2012-13.
Moving away from the previous practice of presenting single growth projection, the Planning Commission has come out with three different economic scenarios for 12th Five Year Plan.
Singh assured all chief ministers that Centre has taken note of the points raised by them, including those in the written speeches. “All these points will be carefully considered by the Planning Commission,” he said, adding, the Plan is not a rigid blue print.
“It is a broad ‘directional’ and ‘aspirational’ document, which must allow for modification on the basis of experience ... We must now devote all our energies to implementing the Plan,” the prime minister said.
As per the ‘aspirational’ scenario one—of strong inclusive growth—India's economic growth will be average 8% in the five years.
The document also cautions that in the scenario of a “policy logjam”, the GDP growth could slow down to 5%-5.5%.
The document proposes to bring down poverty by 10% by the end of the 12th Plan and generate five crore new jobs in non-farm sector.
As regard the infrastructure sector, it says that efforts should be made to increase investment in this sector to 9% of the GDP by the end of the Plan period.
The other targets include increasing green cover by one million hectare every year and adding 30,000 MW of renewable energy generation capacity in the Plan period.
It also seeks to reduce emission intensity of the GDP in line with the target of 20%-25% reduction by 2020 over 2005 levels.
Although the document envisages 6.7% growth rate in the current fiscal, it has been projected at 5.7%-5.9% in 2012-13 by the finance ministry.
The strategy for the full Plan would aim at raising agriculture output to 4% and manufacturing sector growth to 10%.
It also wants all the states to set higher targets of growth than what was achieved in the 11th Five Year Plan.
The ‘request’ comes amid acute fuel shortages that are impacting the country’s power generation and many projects are running below their capacity
New Delhi: Prime minister Manmohan Singh on Thursday asked the Planning Commission to make a quick review of fuel shortages faced by power plants and submit a report in three weeks, as part of efforts to resolve the urgent problem, reports PTI.
“Several chief ministers have drawn attention to the problem of fuel availability affecting power plants. This is indeed an urgent problem, which needs to be tackled. I am requesting the Planning Commission to make a quick review of the situation and submit a report to me within three weeks,” Singh said in his closing remarks at the 57th National Development Council (NDC) meeting.
The ‘request’ comes amid acute fuel shortages that are impacting the country’s power generation and many projects are running below their capacity.
“I would request all chief ministers to write to the deputy chairman of the Planning Commission giving details of plants, which they feel are adversely affected,” Singh said.
Fuel scarcity is a major issue hurting the power sector, which is expected to see generation capacity addition of about 88,000 MW in the 12th Five-Year Plan (2012-17).
There are also differences between many power producers and state-run Coal India, the largest supplier of the dry fuel in the country that is delaying the signing of Fuel Supply Agreements (FSAs).
Fuel supply pacts are yet to be signed for generation capacity of about 8,000 MW that are ready to be commissioned.
On 17th December, the Prime Minister’s Office directed power companies to enter into FSAs within a month.
The directive came after its November deadline for FSAs was missed, amid differences over various issues including coal quality.
Besides that, environmental hurdles are impacting the development of coal blocks required for power generation.
The highest allocation of Rs6,841 crore has been made in the 12th Plan for the National Population Register, a comprehensive identity database of every usual resident in the country being prepared by the Indian government
New Delhi: An outlay of Rs52,839 crore, which is 247% more than the previous plan, has been proposed for the home ministry in the draft 12th Five Year Plan put up before the National Development Council (NDC) on Thursday, reports PTI.
The highest Rs6,841 crore has been allocated for the National Population Register, a comprehensive identity database of every usual resident in the country being prepared by the Indian government.
Rs3,751 crore has been allocated for modernisation of police forces, Rs3,360 crore for disaster management and Rs 900 crore has been allocated for crime and criminal tracking network and systems, which will facilitate collection, storage, analysis, transfer and sharing of data of crime and criminals between all police stations in the country.
“This outlay shows an increase of 247% over the allocation of Rs15,224 crore in the 11th Five Year Plan,” a home ministry official said.
Rs1,874 crore has been kept for modernisation of the Delhi Police, which is being controlled by the home ministry.
Rs890 crore has been earmarked for special industry initiative scheme, security related expenditure and for relief and rehabilitation scheme for Jammu and Kashmir.
Rs651 crore has been allocated for coastal securities schemes,
Rs207.54 crore has been allocated for Naxal management and Rs290 crore for North Eastern states.
There is also a proposal of Mega City Policing with a total outlay of Rs432 crore in six cities—Kolkata, Mumbai, Chennai, Banglore, Ahmedabad and Hyderabad.
“The home ministry supports various programmes and schemes to strengthen internal security in the country. It also supports various state governments and Union Territories through its programmes and schemes,” the official said.