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A Review of the Development and Infrastructure Provisions of the Tenth Five-Year Plan

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A Review of the Development and Infrastructure Provisions of the Tenth Five-Year Plan ITPI ITPI JOURNAL 4 : 1 (2007) 01 - 12 JOURNAL www.itpi.org.in A REVIEW OF THE DEVELOPMENT AND INFRASTRUCTURE PROVISIONS OF THE TENTH FIVE-YEAR PLAN DR. S. K. KULSHRESTHA Founder Editor, Spatio-economic Development Record, New Delhi ABSTRACT The Planning Commission has completed a mid-term appraisal of the Tenth Five Year Plan 2002-2007. It revels that the progress made by most of the states in implementation of the thrust areas is below expectations. Not much headway has been made in the area of urban reforms. State governments have not given full effect to the recommendations of SFCs. State governments and ULBs have been generally reluctant to levy reasonable user charges. Most state governments have shied away from implementing several provisions of the Constitution (Seventy Fourth) Amendment Act, 1992 including urban planning. This paper presents the highlights of the review of three years (2002-203 to 2005-2006) of implementation of the schemes related to urban development and infrastructure provision in the Tenth Plan. 1 INTRODUCTION 243W), the Constitution (Seventy-Fourth) Development planning in India is done through Amendment Act, 1992 (74th CAA) redefines the the Five Year Plans. Since independence, nine such relationship between the states and the municipal plans have been implemented and the tenth is bodies and provides for their functional and currently guiding and financing the development financial autonomy. Following the provisions of this programmes and projects in different sectors of Act, the states have carried out the required the economy. The Planning Commission has amendments to the municipal laws and local body completed a mid term appraisal of this plan. This elections have been held in several states more paper presents some of the highlights of the than once under the supervision of State Election appraisal of three years (2002-2003 to 2005- Commissions. 2006) of implementation of the centrally sponsored schemes related to urban development The objective of political decentralization has been and infrastructure provision in the Tenth Five Year accomplished to a substantial degree but the Plan. existing institutional framework for urban planning has not been realigned in accordance with the The stress of the 10th Plan in the context of urban provisions of the 74th CAA. Most state development included improving the functional governments have shied away from implementing and financial autonomy of urban local bodies several provisions of the Act. (ULBs); strengthening of their finances through smooth implementation of State Finance The Twelfth Schedule (Article 243W) lists 18 Commissions (SFC) awards; rationalization of the functions to be transferred to the ULBs. However, property taxation system; levying of user charges; only six states (Bihar, Chhattisgarh, Himachal and encouraging public-private-partnership (PPP) Pradesh, Madhya Pradesh, Punjab and Tripura) in order to improve the efficiency and delivery of have devolved all these functions. Only 21 states services (Planning Commission: 2006: 365). The following sections give the highlights of the mid- have set up District Planning Committees and only term appraisal under each of the above thrust two states - West Bengal and Maharashtra - have areas. established Metropolitan Planning Committees. The devolution of functions to ULBs is incomplete and 2 FUNCTIONAL AND FINANCIAL the financial resources with ULBs are inadequate. AUTONOMY OF URBAN LOCAL State governments are unwilling to provide BODIES autonomy to ULBs. Functional and financial With a view to firmly establishing the elected ULBs autonomy of ULBs remains a distant dream as the institutions of self-government (Article (Planning Commission: 2006: 366). Dr. S. K. Kulshrestha / ITPI Journal 4 : 1 (2007) 01 - 12 2.1 Implementation of State Finance 2.3 Public Private Partnerships Commissions’ Awards The appraisal indicates that a number of cities in The 73rd CAA (Article 243-I) provides for setting Tamil Nadu, Karnataka, Maharashtra, Andhra up of the SFCs and Article 243-Y of 74th CAA Pradesh and Gujarat have involved the private extends its functions to review and recommend sector in the provision of urban services such as sharing of revenue between state government water supply, sanitation and garbage collection / and municipalities. Most SFCs have recommended disposal, composting of organic waste, and street a proportionate share of state tax and non- tax lighting. PPP projects also include collection of local revenue to be devolved to the ULBs but the actual taxes, development and maintenance of gardens transfers are much less and uncertain. This has and parks, bus terminus, land development and led to a precarious situation for the ULBs, which market development. Lack of properly designed have also suffered because of the abolition by most PPP models and the absence of a regulatory state governments of octroi, which was their main framework to govern such arrangements have source of revenue. inhibited the full utilisation of the PPP arrangements for urban development. 2.2 Rationalization of the Property Taxation System and Levying of User 3 URBAN DEVELOPMENT SCHEMES Charges Table 1, presents the performance of Urban Reform of property tax has been included in the Development Schemes of the Ministry of Urban 10th Plan with a view that it becomes a major Development during the first three years of the source of revenue for ULBs and arrangements Tenth Plan. It includes schemes such as Integrated for its effective implementation with collection Development of Small and Medium Towns efficiency of 85 per cent by the end of the Plan (IDSMT), Mega City, National Capital Region (NCR) period. Similarly, it has been expected that the Plan, Mission Mode on Information Technology (IT), levy of reasonable user charges be introduced in Urban Mapping, and Research in Urban and such a way that the full cost of operations and Regional Planning. maintenance (O and M) is collected by the end of the Tenth Plan period. However, during the first 3.1 Integrated Development of Small three years of the Tenth Plan, the methods of and Medium Towns property taxation are outdated and, in general, With a view to making the small and medium size the attitude towards levy of user charges is towns capable of generating economic growth and indifferent (Planning Commission: 2006: 366). employment and slow down migration to larger Table 1 Outlays of Ministry of Urban Development during First Three Years of the Tenth Five Year Plan for Urban Development (Rs. in crore) Scheme 10th Plan AP(2002-03) AP(03-04) AP (04- First 3 years of Balance Outlay 05) 10th Plan Alloc. Exp. Alloc. Exp. Alloc. Amt. % Ut. IDSMT 1,304.65 105 86 100.0 108.1 200.00 394.57 30.24 888.4 Mega City 1,050.00 125 119.9 120.0 196.7 220.00 536.59 51.10 436.7 NCR Planning Board 350.00 55 55.0 50.0 52.0 55.00 162.00 46.29 191.0 Mission Mode on IT 0.00 0 0.0 0.0 0.0 5.00 5.00 - 0.0 Urban Mapping 20.00 To be merged with NUIS Scheme 20.0 Research in Urban and Regional Planning 15.00 8 0.0 1.0 0.9 1.00 1.93 12.87 12.1 Source: Planning Commission: 2006, Annexure 11.2 p.381 Index: AP: Annual Plan Alloc: Allocation Exp.: Expenditure Amt.: Amount % Ut.: Percentage Utilisation 2 Dr. S. K. Kulshrestha / ITPI Journal 4 : 1 (2007) 01 - 12 cities, the Integrated Development of Small and 3.3 NCR Plan Medium Towns (IDSMT) scheme was initiated in With a view to containing the pressure of 1979-1980. Accordingly, it included improvement population on Delhi and to attain balanced and of the economic and physical infrastructure in harmonious development of the National Capital selected small and medium towns in the country. Territory (NCT) of Delhi and adjoining areas the The scheme is applicable to cities with population National Capital Region Planning Board (NCRPB) up to 500,000. The ratio of Central assistance to was established in 1985. An outlay of Rs.350 crore state assistance is 60:40 and there is a loan has been earmarked for this scheme in the Tenth component of 20 to 40 per cent (depending on Plan. During the first three years of the Plan, 46 the size of the city) from financial institutions. percent (assuming full utilization of 2004-05 allocations) of Tenth Plan allocation is expected to An outlay of Rs.1,304.65 crore was approved for be utilized. However, the objectives of arresting the Tenth Plan to assist 925 new and on-going the migration to NCT Delhi and achieving the towns under IDSMT scheme. During the first three dispersal of economic activities are yet to be met. years of the Plan period, only 30 per cent (assuming full utilization of 2004-05 allocations) 3.4 National Mission Mode on IT of Tenth Plan allocation is expected to be utilized. The Tenth Plan laid emphasis on transparency and In terms of physical achievements, 67 per cent right to information. Both of these require support towns (621 towns) are expected to be assisted of information technology (IT). IT can also bring during the same period. This thinning of resources about improvement in the service delivery has led to a lack of appreciable results on the mechanism and the revenue base of ULBs. ground (Planning Commission: 2006: 371-372). The appraisal reveals that some municipalities, with 3.2 Mega City active assistance and guidance from the National The Mega City Scheme, applicable to Mumbai, Informatics Centre (NIC), have adopted e- Kolkata, Chennai, Bangalore and Hyderabad, was Governance initiatives for property tax, grievances initiated in 1993-94 with the objective of redressal, e-procurement, tap connection status, undertaking infrastructure development projects double accounting system, collection of water of city-wide / regional significance.
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