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Puducherry-SDR-Initial Pages UCHE D RR U Y P Contents The Core Committee. 9 Research Team. 10 Message from Deputy Chairman, Planning Commission. 11 Message from Minister of State for Planning & Parliamentary Affairs. 13 Message from Chief Minister, Puducherry. 15 Message from Member, Planning Commission. 17 Preface.. 19 Abbreviations.. 21 List of Tables, Figures and Annexures. 23 Executive Summary. 27 Introduction. 39 1. Development Strategy and Economic Profile. 45 Natural Resources Human Resources Human Development Indices State Domestic Product Employment Characteristics Financial Resources Investment Activity Development Opportunities and Strategies Case Study 2. Fiscal Situation and Policies. 83 Overview Revenue Receipts, Own Tax Revenues and Central Transfers Own Non-Tax Revenues (Excluding Electricity-Related Receipts) Composition of Revenue Expenditure and Capital Receipts and Expenditure Subsides and Losses of State PSUs Borrowings, Outstanding Liabilities, Interest Burden and Sustainability of Public Debt 6 PUDUCHERRY DEVELOPMENT REPORT Fiscal Deficit and Budgetary Problems Finances of Urban Local Bodies and Commune Panchayats Annual Plans, Plan and Non-Plan Composition and Regional Balance Taxation and Levy Powers, also Tax Buoyancy Summary 3. Industrial Growth. 101 Introduction Puducherry Industrial Economy—Pattern, Growth and Export Potential Impact of WTO Industrial Policy Reforms Competitive Classification of Industries Hardware Capital of India Development of Small Enterprises Industrial Pollution Villages and Small Enterprise Sector Small and Tiny Enterprises Summary 4. Agriculture and Rural Development. 117 Agriculture Allied Sector Agriculture and Rural Development 5. Infrastructure Development. 133 Introduction Industrial Estates Power Transport Port Airport Telecommunications Water Resources Export Processing Zone/Special Economic Zone Information Technology Policy Summary 6. Social Sector. 141 Education Higher Education Health Services Social Security 7. Tourism. 187 Structure and Functions of Tourism Department Domestic and Foreign Tourists Coverage of Hotels and Other Facilities Locations of Heritage Areas, Parks and Beaches Promotional Policies Future Plans Summary CONTENTS 7 8. Public Sector Units/Corporations/ Boards Restructuring and Reforms. 193 Introduction Commercial PSUs Service Enterprises/Corporations/Boards Need and Policy Measures for Restructuring and Reforms Summary 9. Financial Services. 199 Introduction Overview Role and Growth of Banking Sector Credit-Deposit Trends Sector-Wise Distribution of Loans and Advances by SCBS Innovations in Financial Services State Cooperative Banks Urban Cooperative Banks Policy Initiatives of Rural Credit Disbursal Microfinance—Informal Credit Delivery System Role and Growth of Non-banking Financial Companies Supervision of NBFCs Summary 10. Governance. 211 History of Local Self-Government during French Rule Municipalities Commune Panchayat Village Panchayats Taxation and Finance Finance Commission Recent Trends Resource Mobilisation by Local Bodies Right to Information e-Governance Summary UCHE D RR U Y P The Core Committee Member Chairman Planning Commission, New Delhi Adviser (SP-S) Member Planning Commission, New Delhi Planning Secretary Member Government of Puducherry, Puducherry Representatives of Partner Agencies Member 10 PUDUCHERRY DEVELOPMENT REPORT Research Team 1. Dr. G.S. Ganesh Prasad 2. Prof. S. Mohan Kumar 3. Prof. M. Thangaraj 4. Dr. M. Thamizoli 5. Dr. N. Rajasekaran CONTENTS 11 ,e- ,l- vkgyqokfy;k mik/;{k ;kstuk vk;ksx MONTEK SINGH AHLUWALIA Hkkjr DEPUTY CHAIRMAN PLANNING COMMISSION INDIA June 19, 2010 MESSAGE The Puducherry Development Report is a result of the Planning Commission's initiative to sponsor State Development Reports with much of the work for preparation of the documents being done by reputed national level institutes. The endeavour is to produce quality reference documents on development profiles of individual States and UTs and the possible strategies for accelerating growth and development, and reducing poverty and inequality. The Puducherry Development Report reviews Puducherry's experience and highlights issues critical for the UT's development in the years ahead. I hope its publication will stimulate debate on growth strategies appropriate for Puducherry. I am sure the roadmap indicated in the Report will stimulate a broader awareness of the critical policy issues, which are being faced by the UT, and will assist Puducherry to move to a higher growth path and achieve all round human and economic development. (Montek Singh Ahluwalia) ;kstuk Hkou] laln ekxZ] ubZ fnYyh & 110001 nwjHkk’k % 23096677] 23096688 QSDl % 23096699 Yojana Bhawan, Parliament Street, New Delhi : 110001 Phones: 23096677, 23096688 Fax : 23096699 E-mail : [email protected] oh- ukjk;.klkeh jkT; ea=h ;kstuk ,oa lalnh; dk;Z Hkkjr ljdkj V. NARAYANASAMY ;kstuk vk;ksx ;kstuk Hkou] laln ekxZ] ubZ fnYyh&110 001 MINISTER OF STATE FOR PLANNING & PARLIAMENTARY AFFAIRS GOVERNMENT OF INDIA PLANNING COMMISSION YOJANA BHAVAN, SANSAD MARG, NEW DELHI-110 001 TEL: 011-23096561/23096562/23096563 FAX: 011-23096713 E-MAIL: [email protected] MESSAGE The Planning Commission has taken up the much needed initiative of the preparation of 'Puducherry Development Report' in association with Madras Institute of Development Studies (MIDS), Institute of Finance Management and Research (IFMR) Chennai and M.S. Swaminathan Research Foundation (MSSRF), Chennai. This has been a part of national level exercise, wherein, development reports on each State/UT have been prepared in the Planning Commission. The Union Territory of Puducherry has been making rapid strides in the realm of development and the support and guidance provided by the Planning Commission, from time to time, have been major contributors in this regard. This initiative of Planning Commission, at this juncture, is therefore, highly commendable. Apart from providing a roadmap for attaining a higher growth trajectory, this report also lucidly analyses the possible areas of focus and development. Though Puducherry UT is one among the best administered States/UTs, their report would further benefit the Government of Puducherry in fine-tuning its planning process. The in-depth analysis exhibited in the report will act as a ready- reckoner and will be of immense help to all concerned for evolving suitable policies, plans and programmes towards improving the 14 PUDUCHERRY DEVELOPMENT REPORT quality of life in Puducherry UT. I compliment the officers and experts concerned in the Planning Commission, Government of Puducherry and other agencies such as MIDS, IFMR, MSSRF etc., for their praiseworthy effort in arriving at such a highly informative 'Puducherry Development Report' (V. Narayanasamy) CONTENTS 15 V. VAITHILINGAM PUDUCHERRY CHIEF MINISTER Date : 04/06/2010 GOVERNMENT OF PUDUCHERRY MESSAGE Planning Commission, as a part of the Central Plan Scheme of 50th year of initiative of planning, has entrusted the task of preparing the SDR for Puducherry with Madras Institute of Development Studies (MIDS). The objective in bringing out the SDR is to provide a quality reference document on development profile and set out strategies for accelerating the growth rate. SDR is aimed to be credible independent document prepared with the assistance of reputed expert national level agencies. The Report is expected to set out the medium term strategies that need to be adopted to bring about the accelerated levels of growth needed to lessen disparities and reduce poverty. I am happy to note that the SDR prepared by MIDS made analysis among others on Development Strategy and Economic Profile, Fiscal Situation and Policies, Infrastructure Development, Restructuring of Public Sector Undertaking, Governance, etc. I hope that the SDR being the first of its kind in this Union Territory will help the concerned departments and planners in framing suitable and timely policies to accelerate the tempo of economic development, keeping in mind, the target groups and other weaker sections of the society are taken care adequately by ensuring flow of the fruits of development. I am thankful to Planning Commission for having taken the initiative and interest in bringing a Development Report so as to take stock of the situation of the States concerned for further improvement. I congratulate the MIDS and partner institutions for the excellent work done in bringing out a State Development Report for the Union Territory of Puducherry. (V. VAITHILINGAM) Off.: 2333399, 2335530, 2335328, 2335522 Fax: 0413-2333135 Res.: 2227622, 2699489 Hkkjr ljdkj ARUN MAIRA MEMBER ;kstuk vk;ksx ;kstuk Hkou Tele.: +91-11-23096750 ubZ fnYyh&110 001 Fax.: +91-11+23096577 E-mail: [email protected] GOVERNMENT OF INDIA PLANNING COMMISSION YOJANA BHAVAN NEW DELHI-110 001 MESSAGE The Puducherry State Development Report has been prepared by the Planning Commission with the support of the State Government. The preparation of State Development Reports is an initiative to assess with States the development alternatives available to them keeping in view their financial, human and material resources and felt needs of the people. It is hoped the State Development Report for Puducherry would provide useful inputs to policy makers in the State and Central Government engaged in directing the development process in the State. The present Report takes stock of the resources available in Puducherry and it may provide a roadmap for achieving a higher level of growth. I hope the Report will be useful for the Government of UT, non-governmental
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