Govt open to 'customised' flagship schemes

The central government may soon change the guidelines of the flagship programmes including the National Rural Employment Guarantee Act (NREGA) to better suit the needs of individual states, Planning Commission Deputy Chairman Montek Singh Ahluwalia today said while briefing the media on the eve of the National Development Council (NDC) meeting to approve the 11th Plan (2007-12) document.

"I understand states have genuine problems. But they need to come out with specific proposals," Ahluwalia said.

Present guidelines under the NREGA prohibit construction of permanent assets like hospitals and check dams. "In spite of funds being available, such restrictions constrain states from spending the money," Sompal, vice-chairman, Planning Board, Madhya Pradesh, told Business Standard.

Sompal also said that states have demanded to increase the 100 days' job guarantee to at least 150 days every year to each rural household that needs work.

Commenting on the Plan document, Sompal said the Plan document has failed to resolve the issue of increasing rural unemployment.

"According to the 61st round of NSSO (National Sample Survey Organisation) survey, rural unemployment rose by 3.69 per cent per annum. During the first three years of the 10th Plan, the employment elasticity of GDP growth was 0.16 per cent. Thus the addition to workforce was 1.2 per cent per annum while the rate of growth of workforce was around 2.5 per cent. Thus unemployment added every year is between 1 and 1.5 per cent. This means the fruits of reforms has not reached the grassroots level of the society," he said.

The focus of the 11th Plan is on social sectors like health and education, which have seen substantial increase in fund allocation. Other focus areas of the Plan include agriculture and infrastructure.

While emphasis in agriculture is on ensuring food security and district-specific agricultural plan, in case of infrastructure the emphasis is on public-private partnership.

The Planning Commission has estimated that the country would need investment worth $500 billion during the Plan period to meet its infrastructure deficit.

Wednesday's NDC meeting will be attended by Prime Minister Manmohan Singh, his Cabinet colleagues, Planning Commission members and chief ministers of states. The Cabinet has already approved the 11th Plan document last month.