Agro-Climatic Zones

Agro-Climatic Zones

The Planning Comhkmission after examining the earlier studies on the regionalisation of the agricultural economy has recommended that agricultural planning be done on the basis of agroclimatic regions. For resource development, the country has been broadly divided into fifteen agricultural regions based on agroclimatic features, particularly soil type, climate including temperature and rainfall and its variation and water resources availability as under: Western Himalayan division Eastern Himalayan division Lower Gangetic plain region Middle Gangetic plain region Upper Gangetic plain region Trans-Gangetic plain region Eastern plateau and hill region Central plateau and hill region Western plateau and hill region Southern plateau and hill region East coast plain and hill region West coast plain and hill region Gujarat plain and hill region Western plain and hill region Island region

WATER IN INDIAN CONSTITUTION

ARTICLE 246:

· Notwithstanding anything in clauses (2) and (3), Parliament has exclusive power to make laws with respect to any of the matters enumerated in List I in the seventh Schedule (in this Constitution referred to as the "Union List").

• Notwithstanding anything in clause (3), Parliament, and, subject to clause (1), the legislature of any State also, have power to make laws with respect to any of the matters enumerated in List III in the Seventh Schedule (in this Constitution referred to as the "Concurrent List").
• Subject to clauses (1) and (2), the Legislature of any State has exclusive power to make laws for such State or any part thereof with respect to any of the matters enumerated in List II in the Seventh Schedule (in this Constitution referred to as the "State List").
• Parliament has power to make laws with respect to any matter for any part of the territory of India not included in a State notwithstanding that such matter is a matter enumerated in the State List.
• 
  
• ARTICLE 262:

In case of disputes relating to waters, Article 262 provides:

· Parliament may by law provide for the adjudication of any dispute or complaint with respect to the use, distribution or control of the waters of, or in, any inter-State river or river valley.

• Notwithstanding anything in this Constitution, Parliament may, by law provide that neither the Supreme Court nor any other court shall exercise jurisdiction in respect of any such dispute or complaint as is referred to in Clause (1).

Entry 56 of List I of Seventh Schedule

Entry 56 of List I of Seventh Schedule provides that "Regulation and development of inter-State rivers and river valleys to the extent to which such regulation and development under the control of the Union is declared by Parliament by law to be expedient in the public interest".

Entry 17 under List II of Seventh Schedule

Entry 17 under List II of Seventh Schedule provides that "Water, that is to say, water supplies, irrigation and canals, drainage and embankments, water storage and water power subject to the provisions of Entry 56 of List I". As such, the Central Government is conferred with powers to regulate and develop inter-State rivers under Entry 56 of List I of Seventh Schedule to the extent declared by the Parliament by law to be expedient in the public interest. It also has the power to make laws for the adjudication of any dispute relating to waters of Inter-State River or river valley under Article 262 of the Constitution.

National Water Policy 2002

Need for a National Water Policy
1.1 Water is a prime natural resource, a basic human need and a precious national asset. Planning,
development and management of water resources need to be governed by national perspectives.
1.2 As per the latest assessment (1993), out of the total precipitation, including snowfall, of around
4000 billion cubic metre in the country, the availability from surface water and replenishable ground water
is put at 1869 billion cubic metre. Because of topographical and other constraints, about 60% of this i.e. 690
billion cubic metre from surface water and 432 billion cubic metre from ground water, can be put to
beneficial use. Availability of water is highly uneven in both space and time. Precipitation is confined to
only about three or four months in a year and varies from 100 mm in the western parts of Rajasthan to over
10000 mm at Cherrapunji in Meghalaya. Rivers and under ground aquifers often cut across state boundaries.
Water, as a resource is one and indivisible: rainfall, river waters, surface ponds and lakes and ground water
are all part of one system.
1.3 Water is part of a larger ecological system. Realising the importance and scarcity attached to the
fresh water, it has to be treated as an essential environment for sustaining all life forms.
1.4 Water is a scarce and precious national resource to be planned, developed, conserved and managed
as such, and on an integrated and environmentally sound basis, keeping in view the socio-economic aspects
and needs of the States. It is one of the most crucial elements in developmental planning. As the country has
entered the 21st century, efforts to develop, conserve, utilise and manage this important resource in a
sustainable manner, have to be guided by the national perspective.
1.5 Floods and droughts affect vast areas of the country, transcending state boundaries. One-sixth area
of the country is drought-prone. Out of 40 million hectare of the flood prone area in the country, on an
average, floods affect an area of around 7.5 million hectare per year. Approach to management of droughts
and floods has to be co-ordinated and guided at the national level.
1.6 Planning and implementation of water resources projects involve a number of socio-economic
aspects and issues such as environmental sustainability, appropriate resettlement and rehabilitation of
project-affected people and livestock, public health concerns of water impoundment, dam safety etc.
Common approaches and guidelines are necessary on these matters. Moreover, certain problems and
weaknesses have affected a large number of water resources projects all over the country. There have been
substantial time and cost overruns on projects. Problems of water logging and soil salinity have emerged in
some irrigation commands, leading to the degradation of agricultural land. Complex issues of equity and
social justice in regard to water distribution are required to be addressed. The development, and overexploitation
of groundwater resources in certain parts of the country have raised the concern and need for
judicious and scientific resource management and conservation. All these concerns need to be addressed on
the basis of common policies and strategies.
1.7 Growth process and the expansion of economic activities inevitably lead to increasing demands for
water for diverse purposes: domestic, industrial, agricultural, hydro-power, thermal-power, navigation,
recreation, etc. So far, the major consumptive use of water has been for irrigation. While the gross
irrigation potential is estimated to have increased from 19.5 million hectare at the time of independence to
about 95 million hectare by the end of the Year 1999-2000, further development of a substantial order is
necessary if the food and fiber needs of our growing population are to be met with. The country’s
population which is over 1027 million (2001 AD) at present is expected to reach a level of around 1390
million by 2025 AD.
1.8 Production of food grains has increased from around 50 million tonnes in the fifties to about 208
million tonnes in the Year 1999-2000. This will have to be raised to around 350 million tonnes by the year
2025 AD. The drinking water needs of people and livestock have also to be met. Domestic and industrial
water needs have largely been concentrated in or near major cities. However, the demand in rural areas is
expected to increase sharply as the development programmes improve economic conditions of the rural
masses. Demand for water for hydro and thermal power generation and for other industrial uses is also
increasing substantially. As a result, water, which is already a scarce resource, will become even scarcer in
future. This underscores the need for the utmost efficiency in water utilisation and a public awareness of the
importance of its conservation.
1.9 Another important aspect is water quality. Improvements in existing strategies, innovation of new
techniques resting on a strong science and technology base are needed to eliminate the pollution of surface
and ground water resources, to improve water quality. Science and technology and training have to play
important roles in water resources development and management in general.
1.10 National Water Policy was adopted in September, 1987. Since then, a number of issues and
challenges have emerged in the development and management of the water resources. Therefore, the
National Water Policy (1987) has been reviewed and updated.
Information System
2.1 A well developed information system, for water related data in its entirety, at the national / state
level, is a prime requisite for resource planning. A standardised national information system should be
established with a network of data banks and data bases, integrating and strengthening the existing Central
and State level agencies and improving the quality of data and the processing capabilities.
2.2 Standards for coding, classification, processing of data and methods / procedures for its collection
should be adopted. Advances in information technology must be introduced to create a modern information
system promoting free exchange of data among various agencies. Special efforts should be made to develop
and continuously upgrade technological capability to collect, process and disseminate reliable data in the
desired time frame.
2.3 Apart from the data regarding water availability and actual water use, the system should also include
comprehensive and reliable projections of future demands of water for diverse purposes.
Water Resources Planning
3.1 Water resources available to the country should be brought within the category of utilisable
resources to the maximum possible extent.
3.2 Non-conventional methods for utilisation of water such as through inter-basin transfers, artificial
recharge of ground water and desalination of brackish or sea water as well as traditional water conservation
practices like rainwater harvesting, including roof-top rainwater harvesting, need to be practiced to further
increase the utilisable water resources. Promotion of frontier research and development, in a focused
manner, for these techniques is necessary.
3.3 Water resources development and management will have to be planned for a hydrological unit such
as drainage basin as a whole or for a sub-basin, multi-sectorally, taking into account surface and ground
water for sustainable use incorporating quantity and quality aspects as well as environmental considerations.
All individual developmental projects and proposals should be formulated and considered within the
framework of such an overall plan keeping in view the existing agreements / awards for a basin or a subbasin
so that the best possible combination of options can be selected and sustained.
3.4 Watershed management through extensive soil conservation, catchment-area treatment, preservation
of forests and increasing the forest cover and the construction of check-dams should be promoted. Efforts
shall be to conserve the water in the catchment.
3.5 Water should be made available to water short areas by transfer from other areas including transfers
from one river basin to another, based on a national perspective, after taking into account the requirements
of the areas / basins.
Institutional Mechanism
4.1 With a view to give effect to the planning, development and management of the water resources on a
hydrological unit basis, along with a multi-sectoral, multi-disciplinary and participatory approach as well as
integrating quality, quantity and the environmental aspects, the existing institutions at various levels under
the water resources sector will have to be appropriately reoriented / reorganised and even created, wherever
necessary. As maintenance of water resource schemes is under non-plan budget, it is generally being
neglected. The institutional arrangements should be such that this vital aspect is given importance equal or
even more than that of new constructions.
4.2 Appropriate river basin organisations should be established for the planned development and
management of a river basin as a whole or sub-basins, wherever necessary. Special multi-disciplinary units
should be set up to prepare comprehensive plans taking into account not only the needs of irrigation but also
harmonising various other water uses, so that the available water resources are determined and put to
optimum use having regard to existing agreements or awards of Tribunals under the relevant laws. The
scope and powers of the river basin organisations shall be decided by the basin states themselves.
Water Allocation Priorities
5. In the planning and operation of systems, water allocation priorities should be broadly as follows:
· Drinking water
· Irrigation
· Hydro-power
· Ecology
· Agro-industries and non-agricultural industries
· Navigation and other uses.
However, the priorities could be modified or added if warranted by the area / region specific
considerations.
Project Planning
6.1 Water resource development projects should as far as possible be planned and developed as
multipurpose projects. Provision for drinking water should be a primary consideration.
6.2 The study of the likely impact of a project during construction and later on human lives, settlements,
occupations, socio-economic, environment and other aspects shall form an essential component of project
planning.
6.3 In the planning, implementation and operation of a project, the preservation of the quality of
environment and the ecological balance should be a primary consideration. The adverse impact on the
environment, if any, should be minimised and should be offset by adequate compensatory measures. The
project should, nevertheless, be sustainable.
6.4 There should be an integrated and multi-disciplinary approach to the planning, formulation,
clearance and implementation of projects, including catchment area treatment and management,
environmental and ecological aspects, the rehabilitation of affected people and command area development.
The planning of projects in hilly areas should take into account the need to provide assured drinking water,
possibilities of hydro-power development and the proper approach to irrigation in such areas, in the context
of physical features and constraints of the basin such as steep slopes, rapid run-off and the incidence of soil
erosion. The economic evaluation of projects in such areas should also take these factors into account.
6.5 Special efforts should be made to investigate and formulate projects either in, or for the benefit of,
areas inhabited by tribal or other specially disadvantaged groups such as socially weak, scheduled castes and
scheduled tribes. In other areas also, project planning should pay special attention to the needs of scheduled
castes and scheduled tribes and other weaker sections of the society. The economic evaluation of projects
benefiting such disadvantaged sections should also take these factors into account.
6.6 The drainage system should form an integral part of any irrigation project right from the planning
stage.
6.7 Time and cost overruns and deficient realisation of benefits characterising most water related
projects should be overcome by upgrading the quality of project preparation and management. The
inadequate funding of projects should be obviated by an optimal allocation of resources on the basis of
prioritisation, having regard to the early completion of on-going projects as well as the need to reduce
regional imbalances.
6.8 The involvement and participation of beneficiaries and other stakeholders should be encouraged
right from the project planning stage itself.
Ground Water Development
7.1 There should be a periodical reassessment of the ground water potential on a scientific basis, taking
into consideration the qualit y of the water available and economic viability of its extraction.
7.2 Exploitation of ground water resources should be so regulated as not to exceed the recharging
possibilities, as also to ensure social equity. The detrimental environmental consequences of overexploitation
of ground water need to be effectively prevented by the Central and State Governments. Ground
water recharge projects should be developed and implemented for improving both the quality and
availability of ground water resource.
7.3 Integrated and coordinated development of surface water and ground water resources and their
conjunctive use, should be envisaged right from the project planning stage and should form an integral part
of the project implementation.
7.4 Over exploitation of ground water should be avoided especially near the coast to prevent ingress of
seawater into sweet water aquifers.
Drinking Water
8. Adequate safe drinking water facilities should be provided to the entire population both in urban and
in rural areas. Irrigation and multipurpose projects should invariably include a drinking water component,
wherever there is no alternative source of drinking water. Drinking water needs of human beings and
animals should be the first charge on any available water.
Irrigation
9.1 Irrigation planning either in an individual project or in a basin as a whole should take into account
the irrigability of land, cost-effective irrigation options possible from all available sources of water and
appropriate irrigation techniques for optimising water use efficiency. Irrigation intensity should be such as to
extend the benefits of irrigation to as large a number of farm families as possible, keeping in view the need
to maximise production.
9.2 There should be a close integration of water-use and land-use policies.
9.3 Water allocation in an irrigation system should be done with due regard to equity and social justice.
Disparities in the availability of water between head-reach and tail-end farms and between large and small
farms should be obviated by adoption of a rotational water distribution system and supply of water on a
volumetric basis subject to certain ceilings and rational pricing.
9.4 Concerted efforts should be made to ensure that the irrigation potential created is fully utilised. For
this purpose, the command area development approach should be adopted in all irrigation projects.
9.5 Irrigation being the largest consumer of fresh water, the aim should be to get optimal productivity
per unit of water. Scientific water management, farm practices and sprinkler and drip system of irrigation
should be adopted wherever feasible.
9.6 Reclamation of water logged / saline affected land by scientific and cost-effective methods should
form a part of command area development programme.
Resettlement and Rehabilitation
10. Optimal use of water resources necessitates construction of storages and the consequent resettlement
and rehabilitation of population. A skeletal national policy in this regard needs to be formulated so that the
project affected persons share the benefits through proper rehabilitation. States should accordingly evolve
their own detailed resettlement and rehabilitation policies for the sector, taking into account the local
conditions. Careful planning is necessary to ensure that the construction and rehabilitation activities proceed
simultaneously and smoothly.
Financial and Physical Sustainability
11. Besides creating additional water resources facilities for various uses, adequate emphasis needs to be
given to the physical and financial sustainability of existing facilities. There is, therefore, a need to ensure
that the water charges for various uses should be fixed in such a way that they cover at least the operation
and maintenance charges of providing the service initially and a part of the capital costs subsequently. These
rates should be linked directly to the quality of service provided. The subsidy on water rates to the
disadvantaged and poorer sections of the society should be well targeted and transparent.
Participatory Approach to Water Resources Management
12. Management of the water resources for diverse uses should incorporate a participatory approach; by
involving not only the various governmental agencies but also the users and other stakeholders, in an
effective and decisive manner, in various aspects of planning, design, development and management of the
water resources schemes. Necessary legal and institutional changes should be made at various levels for the
purpose, duly ensuring appropr iate role for women. Water Users’ Associations and the local bodies such as
municipalities and gram panchayats should particularly be involved in the operation, maintenance and
management of water infrastructures / facilities at appropriate levels progressively, with a view to eventually
transfer the management of such facilities to the user groups / local bodies.
Private Sector Participation
13. Private sector participation should be encouraged in planning, development and management of
water resources projects for diverse uses, wherever feasible. Private sector participation may help in
introducing innovative ideas, generating financial resources and introducing corporate management and
improving service efficiency and accountability to users. Depending upon the specific situations, various
combinations of private sector participation, in building, owning, operating, leasing and transferring of water
resources facilities, may be considered.
Water Quality
14.1 Both surface water and ground water should be regularly monitored for quality. A phased
programme should be undertaken for improvements in water quality.
14.2 Effluents should be treated to acceptable levels and standards before discharging them into natural
streams.
14.3 Minimum flow should be ensured in the perennial streams for maintaining ecology and social
considerations.
14.4 Principle of ‘polluter pays’ should be followed in management of polluted water.
14.5 Necessary legislation is to be made for preservation of existing water bodies by preventing
encroachment and deterioration of water quality.
Water Zoning
15. Economic development and activities including agricultural, industrial and urban development,
should be planned with due regard to the constraints imposed by the configuration of water availability.
There should be a water zoning of the country and the economic activities should be guided and regulated in
accordance with such zoning.
Conservation of Water
16.1 Efficiency of utilisation in all the diverse uses of water should be optimised and an awareness of
water as a scarce resource should be fostered. Conservation consciousness should be promoted through
education, regulation, incentives and disincentives.
16.2 The resources should be conserved and the availability augmented by maximising retention,
eliminating pollution and minimising losses. For this, measures like selective linings in the conveyance
system, modernisation and rehabilitation of existing systems including tanks, recycling and re-use of treated
effluents and adoption of traditional techniques like mulching or pitcher irrigation and new techniques like
drip and sprinkler may be promoted, wherever feasible.
Flood Control and Management
17.1 There should be a master plan for flood control and management for each flood prone basin.
17.2 Adequate flood-cushion should be provided in water storage projects, wherever feasible, to facilitate
better flood management. In highly flood prone areas, flood control should be given overriding
consideration in reservoir regulation policy even at the cost of sacrificing some irrigation or power benefits.
17.3 While physical flood protection works like embankments and dykes will continue to be necessary,
increased emphasis should be laid on non-structural measures such as flood forecasting and warning, flood
plain zoning and flood proofing for the minimisation of losses and to reduce the recurring expenditure on
flood relief.
17.4 There should be strict regulation of settlements and economic activity in the flood plain zones along
with flood proofing, to minimise the loss of life and property on account of floods.
17.5 The flood forecasting activities should be modernised, value added and extended to other uncovered
areas. Inflow forecasting to reservoirs should be instituted for their effective regulation.
Land Erosion by Sea or River
18.1 The erosion of land, whether by the sea in coastal areas or by river waters inland, should be
minimised by suitable cost-effective measures. The States and Union Territories should also undertake all
requisite steps to ensure that indiscriminate occupation and exploitation of coastal strips of land are
discouraged and that the location of economic activities in areas adjacent to the sea is regulated.
18.2 Each coastal State should prepare a comprehensive coastal land management plan, keeping in view
the environmental and ecological impacts, and regulate the developmental activities accordingly.
Drought-prone Area Development
19.1 Drought-prone areas should be made less vulnerable to drought-associated problems through soilmoisture
conservation measures, water harvesting practices, minimisation of evaporation losses,
development of the ground water potential including recharging and the transfer of surface water from
surplus areas where feasible and appropriate. Pastures, forestry or other modes of development which are
relatively less water demanding should be encouraged. In planning water resource development projects, the
needs of drought-prone areas should be given priority.
19.2 Relief works undertaken for providing employment to drought-stricken population should preferably
be for drought proofing.
Monitoring of Projects
20.1 A close monitoring of projects to identify bottlenecks and to adopt timely measures to obviate time
and cost overrun should form part of project planning and execution.
20.2 There should be a system to monitor and evaluate the performance and socio-economic impact of
the project.
Water Sharing / Distribution amongst the States
21.1 The water sharing / distribution amongst the states should be guided by a national perspective with
due regard to water resources availability and needs within the river basin. Necessary guidelines, including
for water short states even outside the basin, need to be evolved for facilitating future agreements amongst
the basin states.
21.2 The Inter-State Water Disputes Act of 1956 may be suitably reviewed and amended for timely
adjudication of water disputes referred to the Tribunal.
Performance Improvement
22. There is an urgent need of paradigm shift in the emphasis in the management of water resources
sector. From the present emphasis on the creation and expansion of water resources infrastructures for
diverse uses, there is now a need to give greater emphasis on the improvement of the performance of the
existing water resources facilities. Therefore, allocation of funds under the water resources sector should be
re-prioritised to ensure that the needs for development as well as operation and maintenance of the facilities
are met.
Maintenance and Modernisation
23.1 Structures and systems created through massive investments should be properly maintained in good
health. Appropriate annual provisions should be made for this purpose in the budgets.
23.2 There should be a regular monitoring of structures and systems and necessary rehabilitation and
modernisation programmes should be undertaken.
23.3 Formation of Water Users' Association with authority and responsibility should be encouraged to
facilitate the management including maintenance of irrigation system in a time bound manner.
Safety of Structures
24. There should be proper organisational arrangements at the national and state levels for ensuring the
safety of storage dams and other water-related structures consisting of specialists in investigation, design,
construction, hydrology, geology, etc. A dam safety legislation may be enacted to ensure proper inspection,
maintenance and surveillance of existing dams and also to ensure proper planning, investigation, design and
construction for safety of new dams. The Guidelines on the subject should be periodically updated and
reformulated. There should be a system of continuous surveillance and regular visits by experts.
Science and Technology
25. For effective and economical management of our water resources, the frontiers of knowledge need
to be pushed forward in several directions by intensifying research efforts in various areas, including the
following:
· hydrometeorology;
· snow and lake hydrology;
· surface and ground water hydrology;
· river morphology and hydraulics;
· assessment of water resources;
· water harvesting and ground water recharge;
· water quality;
· water conservation;
· evaporation and seepage losses;
· recycling and re-use;
· better water management practices and improvements in operational technology;
· crops and cropping systems;
· soils and material research;
· new construction materials and technology (with particular reference to roller compacted
concrete, fiber reinforced concrete, new methodologies in tunneling technologies,
instrumentation, advanced numerical analysis in structures and back analysis);
· seismology and seismic design of structures;
· the safety and longevity of water-related structures;
· economical designs for water resource projects;
· risk analysis and disaster management;
· use of remote sensing techniques in development and management;
· use of static ground water resource as a crisis management measure;
· sedimentation of reservoirs;
· use of sea water resources;
· prevention of salinity ingress;
· prevention of water logging and soil salinity;
· reclamation of water logged and saline lands;
· environmental impact;
· regional equity.
Training
26. A perspective plan for standardised training should be an integral part of water resource
development. It should cover trainin g in information systems, sectoral planning, project planning and
formulation, project management, operation of projects and their physical structures and systems and the
management of the water distribution systems. The training should extend to all the categories of personnel
involved in these activities as also the farmers.
Conclusion
27. In view of the vital importance of water for human and animal life, for maintaining ecological
balance and for economic and developmental activities of all kinds, and considering its increasing scarcity,
the planning and management of this resource and its optimal, economical and equitable use has become a
matter of the utmost urgency. Concerns of the community needs to be taken into account for water resources
development and management. The success of the National Water Policy will depend entirely on evolving
and maintaining a national consensus and commitment to its underlying principles and objectives. To
achieve the desired objectives, State Water Policy backed with an operational action plan shall be formulated
in a time bound manner say in two years. National Water Policy may be revised periodically as and when
need arises.

RURAL DEVELOPMENT SCHEMES

RURAL DEVELOPMENT

SCHEMES Pradhan Mantri Gram Sadak Yojana Swarnjayanti Gram Swarozgar Yojana Rural Housing National Rural Employment Guarantee Act-2005 National Social Assistance Programme Training Capart DRDA Administration Vigilance and Monitoring PURA DRINKING WATER SUPPLY SCHEMES Accelerated Rural Water Supply Programme Sector Reforms Sub Missions Information , Education and Communication (IEC) Human Resource Development (HRD) Management Information System (MIS) Monitoring And Evaluation Research And Development Total Sanitation Campaign 2004 LAND RESOURCES SCHEMES IWDP (Revised) DPAP DDP TDET Training IPS Hariyali

Rural Development

India is a country of villages and about 50% of the villages have very poor socio-economic conditions. Since the dawn of independence, concerted efforts have been made to ameliorate the living standard of rural masses. So, rural development is an integrated concept of growth and poverty elimination has been of paramount concern in all the consequent five year plans. Rural Development (RD) programmes comprise of following:

• Provision of basic infrastructure facilities in the rural areas e.g. schools, health facilities, roads, drinking water, electrification etc.
• Improving agricultural productivity in the rural areas.
• Provision of social services like health and education for socio-economic development.
• Implementing schemes for the promotion of rural industry increasing agriculture productivity, providing rural employment etc.
• Assistance to individual families and Self Help Groups (SHG) living below poverty line by providing productive resources through credit and subsidy.
• 
  
• General Overview

• Integrated development of rural areas is one of the abiding tasks before the Government of India. The National Common Minimum Programme (NCMP) (External website that opens in a new window) of the Central government reiterates the cardinal importance of villages to the overall development of the country and commits to work towards development of rural areas, which for various reasons could not keep pace with urban areas in the past.

  In conformity with this commitment of the Government, the Ministry of Rural Development (External website that opens in a new window) accords foremost priority to development in rural areas and eradication of poverty and hunger from the face of rural India. A number of initiatives have been taken in the recent years for creation of social and economic infrastructure in rural areas to bridge the rural-urban divide as well as to provide food security and fulfill other basic needs of the rural populace.

  The renewed emphasis on rural development is also visible in the commensurate progressive increase in the allocation of resources for implementation of poverty alleviation programmes. For the Tenth Five Year Plan, the allocation of funds for rural development programmes has been enhanced to Rs. 76,774 crore as against Rs. 42,874 crore in Ninth Plan.

  Addressing the challenge of unemployment in the rural areas of the country is central to the development of rural sector for ameliorating the economic condition of the people. Wage employment is provided in rural areas under National Rural Employment Guarantee Act (NREGA) (External website that opens in a new window) and Sampoorna Grameen Rozgar Yojana (SGRY) (External website that opens in a new window) whereas self-employment is provided under Swarnajayanti Gram Swarozgar Yojana (SGSY). Besides generating employment these wage employment schemes also ensure creation of durable assets in rural areas. Initiatives are also taken by the Ministry to build and upgrade the basic rural infrastructure through various schemes.

  Under Pradhan Mantri Gram Sadak Yojana (PMGSY) (External website that opens in a new window) construction and repairing of rural roads are taken up to ensure rural connectivity. It is expected under the scheme that an expanded and renovated rural road network will lead to an increase in rural employment opportunities, better access to regulated and fair market, better access to health, education and other public services so as to accelerate the pace of economic growth in rural areas. Similarly basic amenities for housing, drinking water and toilets, etc. are provided under Indira Awaas Yojana (IAY), Accelerated Rural Water Supply Programme (ARWSP) (External website that opens in a new window) and Total Sanitation Campaign (TSC) (External website that opens in a new window) to enhance the welfare and well-being of the vulnerable sections of rural population. Area Development is encouraged through Watershed Programmes to check the diminishing productivity of waste land and loss of natural resources.

Urban Infrastructure

The India Infrastructure Report, 1996 estimates the annual investment need for urban water supply, sanitation and roads at about 28,035 crores for the next ten years. The Central Public Health Engineering (CPHEEO) has estimated the requirement of funds for 100 percent coverage of the urban population under safe water supply and sanitation services by the year 2021 at Rs.172,905 crores. Estimates by Rail India Technical and Economic Services (RITES) indicate that the amount required for urban transport infrastructure investment in cities with population 100,000 or more during the next 20 years would be of the order of Rs.207,000 crore. Obviously, sums of these magnitudes can not be located from within the budgetary resources of Central, State and Local Governments. A compulsion has, therefore, arisen to access financial resources from the market and induce the private sector to participate in urban development programmes.

Urban Reforms

India is a part of the global trend towards increasing urbanisation in which more than half of world's population is living in cities and towns. 27.8 per cent of India's population (285 million) live in urban areas as per 2001 census.

It is important to note that the contribution of urban sector to GDP is currently expected to be in the range of 50-60 percent. In this context, enhancing the productivity of urban areas is now central to the policy pronouncements of the Ministry of Urban Development. Cities hold tremendous potential as engines of economic and social development, creating jobs and generating wealth through economies of scale. They need to be sustained and augmented through the high urban productivity for country's economic growth. National economic growth and poverty reduction efforts will be increasingly determined by the productivity of these cities and towns. For Indian cities to become growth oriented and productive, it is essential to achieve a world class urban system. This in turn depends on attaining efficiency and equity in the delivery and financing of urban infrastructure.

Resource Gap

The India Infrastructure, Report, 1996, assessed the total annual investment needs of water supply, sanitation and roads sectors at Rs. 28,036 crores per year on an average during 1996-2006. Whereas funds to that extent are not available.

To overcome these constraints and challenges, the Ministry of Urban Development has initiated institutional, fiscal and financial reforms. First generation urban sector reform - known as the 74th Constitutional Amendment Act of 1992, recognises the principles of local self governments and empowers urban local bodies with financial resources through Central Finance Commission and State Finance Commissions. Subsequently, in order to strengthen these local bodies, second generation reform have also been started. In the last decade, enormous progress has been made in removing impediments to efficient investment.

Resource Mobilisation Effort

In August, 1996, the Central Government guidelines entitled 'Urban Development Plans Formulation and Implementation' were circulated to all State Governments for adoption. These guidelines, apart from other issues, suggest innovative approaches for fiscal resource mobilisation. In the backdrop of the New Economic Policy, it was suggested that the traditional system of funding based on Plan and budgetary allocations be reduced and ultimately withdrawn due to fiscal deficit. Subsidies need to be rationalised and urban development plans and projects need to be placed on a commercial format by designing commercially viable urban infrastructure services and area development projects. This can be achieved by restoring a proper match between functions and source of revenue by giving additional tax measures. Other innovative resource mobilisation measures include using land as resource, increase in the non-property taxes and using Public-Private Partnership in service delivery.

Second Generation Reforms

Regulatory Framework

The participation of the private sector in financing and the delivery of infrastructure at the municipal level, especially in the water and sanitation sector, requires a regulatory framework to protect consumers, apply environmental standards and support the delivery to the poor. As there are a variety of models of regulation from centralised to decentralised systems, guidelines will be developed at the National level to ensure consistency across the country. Appropriate training programme and capacity support to regulators will also be developed in partnership with the private sector and urban research institutions.

Model Legislation

The Central Government is in the process of preparing a model legislation for facilitating private sector participation in urban infrastructure. This is necessary as the present legislative scenario does not encourage private sector participation in this field. A model Municipal Act which will be recommended to the State Governments, would include modification and simplification of Municipal bylaws, provision for enhanced borrowing, allowing the entry of private sector and authorising concenssionaires to penalise users for non payment of tariffs.

Municipal Accounting System

The Task Force constituted by the O/o C&AG of India had recommended for introduction of accrual basis of accounting system for the urban local bodies (ULBs) and suggested model budgeting and accounting formats for that purpose. The Task Force Report was circulated to all States/UTs for adoption of accrual basis of accounting system as well as the budget and accounting formats. Further to provide a simplified tool kit to the ULBs for recording the accounting entries, Ministry of Urban Development in cooperation with the Office of C&AG of India has prepared a National Municipal Accounting Manual (NMAM) and circulated to all States/UTs in January, 2005. The Manual comprehensively details the accounting policies, procedures, guidelines designed to ensure correct, complete and timely recording of municipal transactions and produce accurate and relevant financial reports. The NMAM would help the States prepare their state-level accounting manuals in accordance with their own requirements for use by the ULBs. This initiative is expected not only to enhance the capacities of ULBs in municipal accounting leading to increased transparency and accountability of utilization of public funds for the development of urban sector but also will help in creating an environment in which urban local bodies can play their role more effectively and ensure better service - delivery.

Public-Private Participation Guidelines

Central Government will develop guidelines for involvement of the private sector in infrastructure, which will ensure competitive biding process in a transparent manner. These guidelines will not only protect the consumers but also ensure integrity of the process. This would support municipalities in designing the PPP process on the lines of the BOT Centre in Philippines or the PPP in the Ministry of Finance in South Africa.

Fiscal Incentives

Foreign Direct Investment(FDI)

Hitherto Foreign Investment Promotion Board (FIPB) allowed direct investment in providing urban services on a case to case basis. This scenario has changed with the decision of the Central Government removing restrictions on FDI in urban infrastructure facilities which are now open both under FIPB and the automatic route as per sector specific guidelines. Guidelines have since even issued for FDI in development of integrated township including housing and building material.

External Assistance

Since independence, externally assisted urban sector projects have accounted for US$ 2300 million. A review of these projects indicated a need to adopt a programme approach rather than a project approach for availing external assistance. It also indicated the need to encourage a multiple donor scenario and tapping low cost funds for urban infrastructure.

Tax Free Municipal Bonds

Municipal Bonds were successfully issued by several Municipal Corporations like, Bangalore, Ahmedabad, Ludhiana, Nagpur, Nasik, Madurai for raising resources for urban infrastructure. The Central Government had announced tax exemption in case of bonds issued by Municipal / Local Governments. Guidelines were issued by this Ministry on 8.2.2001 for regulating issue of tax free municipal bonds. Under the guidelines, such bonds will be issued for raising resources for capital investment in creation of new infrastructure as well as augmentation of existing systems. Tax free bonds worth Rs. 100 crore by Ahmedabad Municipal Corporation have been permitted for improving infrastructure. Hyderabad Municipal Corporation has also been permitted to issue tax free municipal bond for Rs. 82.50 crore.

Pooled Financing for Municipal Infrastructure

Traditionally, municipal corporations and urban local bodies have relied on subsidised funds for providing urban services which constraints the constraints the introduction of user charges and efficient project operation and maintenance. In view of the huge resource gap, direct access to capital market would now be an accepted viable option. However, access to capital market requires financial discipline and enhanced credit rating. It has been the experience that only bigger municipal corporations are in a position to take the advantage of the resources available in capital market. Medium and smaller municipalities are unable to do so due to weak financial position and lack of capacity to prepare viable project proposals. A State level pooled financing mechanism is being proposed for smaller and medium municipalities. The objective of a State level pooled finance mechanism is to provide a cost effective and efficient approach for smaller and medium sized ULBs to access the domestic capital markets for Urban infrastructure and to introduce new institutional arrangements for mobilising Urban Infrastructure Finance.

City Restructuring

Government of India is also encouraging citywide reforms and restructuring so as to ensure that cities are managed efficiently and become creditworthy (to attract private finance ) which will enable them to prepare long term plans for infrastructure investments and implement poverty alleviation programs.

Citywide reforms and restructuring will, however, result in significant transaction costs during the period of transition. Leaving cities to finance these costs by themselves will delay and make it difficult to implement these reforms. It is to partly offset this disadvantage that the Ministry of Urban Development is proposing to set up a performance based City Challenge Fund for catalyzing city level economic reform programmes. The resources from the Fund would be given as grants but should ideally be matched by equal allocations either from the cities themselves or from the respective State governments. Access to the fund would be on a competitive basis.

Establishment of an Urban Academy

The proposed Urban Academy is visualized as a centre of excellence in Urban Matters such as urban water supply, sanitation, urban transport, urban governance, municipal finance, etc. It will be a n ideal town-planning habitat, wherein experts from India and abroad can experiment with new layouts, building materials, landscaping, heritage preservation etc., and it will have Synergic links with all other institutions specializing in urban matters. This will coordinate all Training and Capacity Building Initiatives and efforts of Change Management Forums.

Conclusion

In conclusion, it is evident that the New Economic Policy launched in India in 1991-92, did see several important initiatives in the urban sector designed to encourage private sector participation in urban infrastructure projects. These initiatives, would need to be taken to their logical conclusion. A series of new Reform Measures are being put together for implementation during 10th Plan Period. Through these, we hope to reverse the declining standards of urban infrastructure in the country.

URBAN DEVELOPMENT

Urban Growth

In India out of the total population of 1027 million as on 1^st March, 2001, about 742 million live in rural areas and 285 million in urban areas. The net addition of population in rural areas during 1991-2001 has been to the tune of 113 million while in urban areas it is 6 million. The percentage decadal growth of population in rural and urban areas during the decade is 17.9 and 31.2 percent respectively.

The percentage of urban population to the total population of the country stands at 27.8. The percentage of urban population to total population in the 1991 Census (including interpolated population of Jammu & Kashmir where Census could not be conducted in 1991) was 25.7 percent. Thus, there has been an increase on 2.1 percentage points in the proportion of urban population in the country during 1991 – 2001.

Sl. No.	India/State/Union territory*	T/R/U	Population			Percent urban population
			Persons	Males	Females
1	2	3	4	5	6	7
INDIA		T	1,027.015,247	531,277,078	495,738,169	27.8
		R	741,660,293	381,141,184	360,519,109
		U	285,354,954	150,135,894	135,219,060

Source: The Provisional Population Totals for India and sates for the census of India – 2001.

Level of Urbanisation

Among all the States and Union territories, the National Capital Territory of Delhi is most urbanized with 93 percent urban population followed by Union territory of Chandigarh (89.8 percent) and Pondicherry (66.6 percent).

Among the major States, Tamil Nadu is the most urbanized state with 43.9 percent of the population living in urban areas followed by Maharashtra (42.4 percent) and Gujarat (37.4 percent). The proportion of urban population is the lowest in Himachal Pradesh with 9.8% followed by Bihar with 10.5 percent, Assam (12.7 percent) and Orissa (14.9 percent).

In terms of absolute number of persons living in urban areas, Maharashtra leads with 41 million persons which is 14 percent of the total population of the country. Uttar Pradesh accounts for about 35 million followed by Tamil Nadu 27 million.

Urban Morphology

The number of towns and cities have increased to 4378, as detailed below:

Urban Agglomerations/Towns by Class/Category : Census of India 2001

Class	Population Size	No.of UAs/Towns
Class I	1,00,000 and above	393
Class II	50,000 - 99,999	401
Class III	20,000 - 49,999	1,151
Class IV	10,000 - 19,999	1,344
Class V	5,000 - 9,999	888
Class VI	Less than 5,000	191
Unclassified		10*
All classes		4378

Note : Data is provisional

* Population Census 2001 could not be held in these towns/cities of Gujarat State on account of national calamity. Source: Office of the Registrar General of India. (Population totals for India & States for the census of India – 2001).

The number of metropolitan cities having million plus population has increased to 35 as per 2001 census. The names of such cities are as follows:

Cities having million (+) Population in 2001

Rank	Urban Agglomeration/City	Population (Lakhs)
1	Greater Mumbai	163.7
2	Kolkata	132.2
3	Delhi	127.9
4	Chennai	64.2
5	Bangalore	56.9
6	Hyderabad	55.3
7	Ahmedabad	45.2
8	Pune	37.5
9	Surat	28.1
10	Kanpur	26.9
11	Jaipur	23.2
12	Lucknow	22.7
13	Nagpur	21.2
14	Patna	17.1
15	Indore	16.4
16	Vadodara	14.9
17	Bhopal	14.5
18	Coimbatore	14.5
19	Ludhiana	14.0
20	Kochi	13.5
21	Visakhapatnam	13.3
22	Agra	13.2
23	Varanasi	12.1
24	Madurai	11.9
25	Meerut	11.7
26	Nashik	11.5
27	Jabalpur	11.2
28	Jamshedpur	11.0
29	Asansol	10.9
30	Dhanbad	10.6
31	Faridabad	10.5
32	Allahabad	10.5
33	Amritsar	10.1
34	Vijaywada	10.1
35	Rajkot	10.0
	Total	1078.8

Poverty alleviation and employment generation programmes

Poverty reduction has been an important goal of development policy since the inception of planning in India. Various antipoverty, employment generation and basic services programmes have been in operation for decades in India.

Anti-poverty, employment generation and basic services programmes

(a) Pradhan Mantri Gram Sadak Yojana (PMGSY)

Launched in December 2000 as a 100 per cent CSS, PMGSY aims to provide all-weather connectivity to all the eligible unconnected rural habitations. Bharat Nirman, envisages connectivity by 2009 to all the habitations with a population of 1000 or more in the plains, and of 500 or more in the hilly, desert and tribal areas. The systematic upgradation of the existing rural road network also is an integral component of the scheme, funded mainly from the accruals of diesel cess in the Central Road Fund, with support of the multilateral funding agencies and the domestic financial institutions.

(b) Indira Awaas Yojana (IAY)

IAY aims to provide dwelling units, free of cost, to the Scheduled Castes (SCs), Scheduled Tribes (STs), and freed bonded labourers, and also the non-SC/ST BPL families in rural areas. It is funded on a cost-sharing basis in the rates of 75.25 between the Centre and the States. Under IAY, the ceiling on construction assistance is Rs.25,000/- per unit in the plains and Rs.27,500/- for hilly/difficult areas; and Rs. 12,500/- on upgradation of unserviceable kutcha house to pucca/semi pucca house for all areas.

(c ) Swarnjayanti Gram Swarozgar Yojana (SGSY)

SGSY, launched in April, 1999 after restructuring the Integrated Rural Development Programme and allied schemes, is the only self-employment programme for the rural poor. The objective is to bring the selfemployed above the poverty line by providing them income-generating assets through bank credit and Government subsidy.

(d) Sampoorna Grameen Rozgar Yojana (SGRY)

SGRY, launched on September 25, 2001 to provide additional wage employment in the rural areas, has a cash and food grains component, and the Centre bears 75 per cent and 100 per cent of the cost of the two with the balance borne by the States/UTs. In 2004-05, 82.23 crore persondays were generated with the Centre releasing Rs. 4,496 crore as cash component and about 50 lakh tonnes of foodgrains to the States/ UTs. Besides, under the special component of the SGRY, with the States/UTs meeting the cash components, Centre released 26 lakh tonnes of foodgrains to the 13 calamity affected States.

(e) National Food for Work Programme (NFFWP)

The NFFWP was launched as a CSS in November 2004 in the 150 most backward districts to generate
additional supplementary wage employment with food security. States receive food grains under NFFWP free of cost. The focus of the programme is on works relating to water conservation, drought proofing (including aforestation /tree plantation), land development, flood-control/protection (including drainage in waterlogged areas), and rural connectivity in terms of all-weather roads. In 2004-05, allocation of Rs 2,020 crore and 20 lakh tonnes of foodgrains generated 7.85 crore persondays of employment.

(f) DPAP, DDP and IWDP

Drought Prone Areas Programme (DPAP) was launched in 1973-74 to tackle the special problems faced by those areas constantly affected by severe drought conditions. Desert Development Programme (DDP) was launched in 1977-78 to mitigate the adverse effects of desertification. Integrated Wastelands Development Programme (IWDP) has been under implementation since 1989-90 for the development of wastelands/degraded lands. The basis of implementation has been shifted from sectoral to watershed basis from April 1995.

(g) Swarna Jayanti Shahari Rozgar Yojana (SJSRY)

In December 1997, the Urban Self-Employment Programme (USEP) and the Urban Wage Employment Programme (UWEP), which are the two special components of the SJSRY, substituted for various programmes operated earlier for urban poverty alleviation. The SJSRY is funded on a 75:25 basis between the Centre and the States.

Valmiki Ambedkar Awas Yojana (VAMBAY)

VAMBAY, launched in December 2001, facilitates the construction and up-gradation of dwelling units for the slum dwellers, and provides a healthy and enabling urban environment through community toilets under Nirmal Bharat Abhiyan, a component of the Scheme. The Central Government provides a subsidy of 50 per cent, with the balance provided by the State Government.