Energy,water and urbanisation are the challenges in the next 5 year plan: PM

The planning commission held its full fledged meeting for the 12th five year plan wherein the Prime Minister Manmohan Singh said that planning commission and finance ministry should work together to ensure the fiscal consolidation vis a vis expansion of the economy.He hoped that economy would grow by 9 to 9.5 percent during the twelveth five year plan.

Aiming at 100 per cent adult literacy, the next Plan (2012-17) proposes to increase expenditure on health from 1.3 per cent to at least 2-2.5 per cent of GDP.The performance was impacted by the global crisis and drought."The 12th Plan objective must be faster, more inclusive and also sustainable growth.We need to identify the critical areas where existing policies and programmes are not delivering results, and should, therefore, be strengthened or even restructured," Singh said.The country, he said, needs to tackle new challenges which call for new initiatives. 

Some of the challenges that Indian economy faces include accelerated inflation, global pressure on food and oil prices, quality of governance and weak manufacturing performance which can be given a boost by liberalising the policy on the foreign direct investment (FDI). It said health and governance received less than projected resources in the 11th Plan.The growing Indian economy will need a minimum additional power capacity of 1 lakh MW during the 12th Plan.While there was a need for further safety measures, the meeting emphasised that the nuclear power must be expanded. 

Expressing concern over less than expected inclusive growth and the likelihood of missing the UN Millennium Development Goals (MDGs), it took on board the concerns on governance and empowernment."Citizen feedback reveals general unhappiness with governance and public service delivery. They believe that corruption is built into systems for public service delivery", the Plan panel paper said. 

The Commission for the first time used Internet to reach out to broader community including hundreds of sectoral experts. Its website for the 12th Plan, which is linked to Facebook, received 32,000 visitors leaving insightful comments. 

A series of regional consultations with the states are planned next month in the run-up to the meeting of the National Development Council (NDC), the highest policy making body comprising Prime Minister, Cabinet Ministers and Chief Ministers.

Better performance in agriculture, faster job creation, more emphasis on health, education and skill development and improving programmes aimed at vulnerable segments are among the steps that are required for a more inclusive growth in the 12th Plan period, the Plan panel said.It said in agriculture, 4 per cent growth should be the target during the five-year period.

"We should concentrate more on other foods, and on animal husbandry and fisheries." the commission said, adding that greater interlink between technology and farming should be established.Besides, it also suggested expanding the Rashtriya Krishi Vikas Yojana and improving rural infrastructure like storage and food processing facilities. "The MGNREGS should be redesigned to increase contribution to land productivity," it said. For better access and efficient use of water, the Planning Commission suggested that states must be incentivised to set up Water Regulatory Authorities.

It also called for greater private sector participation in recycling of water and for revision of the country's water balance estimates.
In the field of manufacturing, the Plan panel called for setting up of National Investment Zones to ensure broader spread of industrial base. "Tune-up FDI and trade policies to attract quality investment in critical areas," it said, adding that regulations are also necessary for level-playing field and transparency in the sector.

The manufacturing sector needs to grow at 11-12 per cent, it said.
In education sector, the Plan panel wants to focus on the quality and called for more steps in training and evaluation of teachers.

"Much more public and private investment is needed in skill-based higher education in accordance with the market demand and needs of growing economy," it said.

For an efficient transport system, the Planning Commission suggested completion of the Railways' Western and Eastern dedicated Freight Corridors on schedule. "Use more PPP in railways and state highways to complement government investment...complete the linkages between the ports and the existing road and rail linkages," the Plan panel said.

It also said that for proper management of urbanisation, attention should be paid to small metros and semi-urban places also.It added that infrastructure, including irrigation and watershed management, will need additional funding to the tune of 0.5 per cent of GDP.